Mr. Hay to Mr. Buck.

No. 161.]

Sir: I have received your dispatch No. 189, of the 6th ultimo, inclosing copies of a body of correspondence which has passed between Mr. Harris, the United States consul at Nagasaki and Lake & Co. of that city, and the consul and the commissioner of customs thereof, with the consul’s report in the case, all relating to a complaint made by Mr. Lake that his alleged right to transship to his vessel, the Adventure, certain goods under cover of export clearance, but really for storage thereon until transshipment to other vessels may be effected, has been denied by the customs officials at Nagasaki.

The Department concurs in the views expressed by you in your communication No. 140, of August 19, to Consul Harris. The enactment of suitable warehouse regulations by Japan is obviously a right enjoyed in common with all commercial nations, and its refusal to sanction a proceeding in clear evasion of such regulations, inasmuch as Lake & Co.’s purpose appears to have been to transship to a vessel lying in port goods with the intention not of clearing or shipping, but of making use of her as a storeship, does not call for any protest on the part of this Government.

I am, etc.,

John Hay.