No. 70.
Mr. Holcombe to Mr. Blaine

[Extract.]
No. 28.]

Sir: Shortly after closing my dispatch, No. 21, in the matter of the Danish Telegraph Company’s monopoly scheme, I learned that the agent of the company had renewed his efforts at Tientsin to secure the final approval of his propositions by the Chinese Government.

It therefore seemed desirable to lay before the foreign office your views upon this subject as contained in your instructions Nos. 122 and 125, both in order that this government might know that Mr. Angell’s course in the premises had been approved by the Department, and also with the hope that your opinions might have weight in deciding the course of the Chinese Government in the matter.

Accordingly I addressed a dispatch to Prince Kung, a copy of which is inclosed. In it, after summarizing the contents of your instructions referred to above, I asked His Imperial Highness to inform me officially whether His Imperial Majesty had approved the agreement made between the agent of the Danish company and Viceroy Li.

* * * * * * *

I inclose a translation of His Imperial Highnesses reply. It is official, bearing the seal of the foreign office, and far more satisfactory than I had reason to expect. And it declares positively that the monopoly scheme has not been approved by this government.

But by far the most interesting and valuable part of His Imperial Highness’s reply is found in the second paragraph which declares that whenever an American company shall desire to lay a telegraph cable between Japan and China an arrangement will be made “which shall not disappoint the hopes of the American company in the least degree.” In view of the intense and traditional conservatism of China upon this and all kindred questions, the importance of this concession can hardly be overestimated.

Having received such satisfactory assurances from the foreign office, I closed the correspondence by thanking Prince Kung for the prompt and explicit answer which he had given.

[Page 116]

As the German minister had acted in conjunction with this legation in this business, I have furnished him with a copy of Prince Kung’s letter.

I beg your approval of my action in the premises.

I have, &c.,

CHESTER HOLCOMBE.
[Inclosure 1 in No. 28.]

Mr. Holcombe to Prince Kung

Your Imperial Highness: In reference to the correspondence which has passed between the foreign office and Mr. Angell, late United States minister, upon the agreement entered into between His Excellency Li and the Great Northern Telegraph Company, under the terms of which the Government of China agrees that, “within a period of twenty years from date not to allow any other person to land telegraph cables in the entire empire, including all foreign settlements and Formosa,” it becomes my duty to inform Your Imperial Highness that Mr. Angell forwarded copies of this correspondence to our government, and that I am now in receipt of instructions in response. The Government of the United States has approved the entire course of the late minister in this business. It has further authorized me to say that such a monopoly would be not only prejudicial to its interests, but also contrary to its idea of the true interests of China, as the granting of monopolies of any kind is not conducive to public good.

I shall be glad to be informed, officially, whether His Imperial Majesty has or has not approved and confirmed the agreement referred to.

I have, &c.,

CHESTER HOLCOMBE.
[Inclosure 2 in No. 28.]

Prince Kung to Mr. Holcombe

Prince Kung, Chief Secretary of State for foreign affairs, herewith makes a communication in reply:

I have had the honor to receive your dispatch of the 8th instant referring to the establishment of telegraph lines in China; remarking that you were in receipt of the views of your government upon the subject, which you were authorized to give to me; and requesting to be officially informed whether His Imperial Majesty has or has not approved and confirmed the agreement entered into between His Excellency Li and the GreatNorthern Telegraph Company.

This office has discussed this business in all its bearings with Minister Angell, a discussion with which you are doubtless familiar.

If hereafter the United States desire to lay a telegraph cable from Japan to China, a satisfactory and suitable arrangement will be made, and one which shall not disappoint the hopes of the American company in the least degree.

As to the propositions heretofore made by the Great Northern Telegraph Company, they were submitted by the Company to His Excellency Li, and approved by him; but they have not been laid before His Imperial Majesty.

His Excellency Li, in dealing with this question certainly ought not rashly to enter into any arrangement which would not conserve the interest of the government and people of China.

[Inclosure 3 in No. 28.]

No. 70.
Mr. Holcombe to Prince Kung

No. 28.]

Your Imperial Highness: I have had the honor to receive Your Imperial Highness’s dispatch of the 14th instant in regard to the agreement entered into between his excellency Li, and the Great Northern Telegraph Company, in which your imperial highness says, “If hereafter the United States desire to lay a telegraph cable from Japan to China a satisfactory and suitable arrangement will be made, and one which shall not disappoint the hopes of the American company in the least degree; and that [Page 117] the propositions made by the Great Northern Telegraph Company had been approved by his excellency Li, but had not been laid before the Throne.”

I beg leave to thank your imperial highness, both for the promptness and the explicit language of this reply. It will be at once transmitted to my government.

I have, &c.,

CHESTER HOLCOMBE.