Mr. Conger to Mr. Hay.

No. 779.]

Sir: I have the honor to transmit herewith translations of correspondence between the foreign office and this legation upon the question [Page 120] of the continued residence in Peking of foreign merchants who located here during its occupation by the allied forces. * * *

The treaties do not permit the residence of any foreign merchants in the city of Peking, but several years ago permission was given for the opening of stores here by a Dane, a German, and a Frenchman for the especial accommodation of the legations, but their trade soon developed into a very large business with the Chinese. The Hongkong and Shanghai and the Russo-Chinese banks have also been established here for several years, so that the city has, in fact, by precedent at least, been opened to special if not to general trade.

It is true that the banks and stores mentioned are located within the limits of the legation quarter, but their business extends throughout the city. I have consequently, as have most of my colleagues, thought best to keep the question open, with the hope that its final settlement would result in opening the city generally to foreign trade. Further action will be promptly reported.

I have, etc.,

E. H. Conger.
[Inclosure 1.—Translation.]

Prince Ch’ing to Mr. Conger.

Last year after the military disasters it became common for merchants of various foreign nationalities to rent or seize houses in all parts of the city and open shops. The allied forces being in possession and control and the local administration not having been handed back, the circumstances were not those of ordinary times, but now that peace negotiations are concluded and friendly relations reestablished, seeing that Peking is not in the list of treaty ports, the shops and hongs established by these foreign merchants ought all be removed to the treaty ports in accordance with the treaty stipulations.

Should there be any who had put buildings in repair, they ought also to take these away immediately, and in order to avoid complications there ought to be no pretext of demanding compensation.

As in duty bound I send this dispatch to your excellency, that on examination you may issue orders accordingly.

[Inclosure 2.]

Mr. Conger to the President and Ministers of the board of foreign affairs.

Your Highness and Your Excellencies: I have the honor to acknowledge the receipt of the dispatch of your highness and your excellencies, dated, the 4th instant,. in which you call attention to the fact that during the military occupation of Peking this past year many merchants of various nationalities seized or rented houses in different parts of the city and opened shops. You say that the conditions then were exceptional, but that now that the peace negotiations are concluded these shops and hongs ought to remove to the treaty ports in accordance with the treaty stipulations, etc.

In reply I beg to say that I am informed that merchants and other business men of various nationalities have already been given permission to carry on business in Peking.

If this information be correct, then, of course, citizens of the United States have the same right. But if all foreign business is to be excluded from the city, then the United States merchants, if there are any, will be instructed to go out with the others.

[Page 121]

I, however, take the liberty to incidentally suggest to your highness and your excellencies that the present is a most opportune time for the Chinese Government to voluntarily place the city on the basis of a treaty port.

Peking should be the great and convenient entrepot for the vast and populous territory behind it, and if so opened Chinese revenue would be increased thereby, the recently reestablished peace and friendly intercourse would be strengthened, and mutual benefits result.

I avail myself, etc.,

E. H. Conger.