No. 244.
Mr. Gibbs to Mr. Evarts.

No. 147.]

Sir: In my dispatch No. 107, of November 13 last, on the status of the Chinese in this country, I referred to a contract, then in treaty, between [Page 439] the government of this country and Mr. H. S. Geary, an American citizen and partner of the house of Olyphant & Co., China.

After a great deal of discussion the contract was finally signed and approved of by the President of the republic, April 20. I inclose copy of Mr. Geary’s second proposition and the modifications proposed by the government, which were accepted by him.

My opinion is that this proposed new immigration will be important and of great advantage to this country. Many attempts have been made to induce European immigration, but up to the present have failed, there being so many other fields more favorable than Peru.

Here the Chinaman is an industrious, hard-working, patient laborer; the climate all along the coast, where the great agricultural fields exist, suits him 5 his wants are few, and he saves money, when other races live in penury and misery under the same circumstances.

As this plan for Chinese immigration is altogether different from the old one of coolie-labor, the immigrant arriving freely without any trammels, choosing his own work, and earning good wages, at the least one sol per day, with certain knowledge of employment, there will be a superior class of emigrants to leave China for a country which they have some knowledge of, through their countrymen, of whom many traffic up and down the coast from San Francisco to Callao.

The standing of the old and well-known house of Olyphant & Co., of Hong-Kong and New York, is quite a guarantee that they will not be a party, nor lend their influence, to any system that will in any manner be the cause of abuses, as were perpetrated under the name of coolie-labor of former times, which was slavery.

I am, &c.,

RICHARD GIBBS.
[Inclosure in No. 147.]

steam communication between peru and asia—chinese immigration.

[From the South Pacific Times.]

The following is the amended proposition of Mr. H. Seymour Geary, of Messrs. Olyphant & Co., on this subject, which, if agreed to, will be allowed to take the place of the contract already made, and attached to it is a decree of government issued consequent thereon. These documents we comment on in our editorial columns:

[Translation.]

Your Excellency: I, H. Seymour Geary, a partner and representative of Messrs Olyphant & Co., of China, Hong-Kong, and New York, in the United States of America respectfully state: That the Peruvian chargé d’affaires in China and Japan expressed in Hong-Kong to the house which I represent, the great interest felt by your excellency and Peru in the establishment of a steamship line between Peru and Asia for the purpose of facilitating the immigration of free Chinese laborers to Peru under the provisions of the treaties recently ratified by this republic and the Celestial Empire, and as Messrs. Olyphant & Co. believed that they could carry out the scheme which at present interests so seriously the agricultural and other industries of this country, I came to Peru some months ago, at the invitation of and accompanying the representative of Peru in China and Japan, and I placed before your excellency a proposition which, after due consideration, led to the repeated discussion of the contract and the observance of legal forms contained in the supreme decree of 2d November, 1876, and published in No. 46 of the official paper, El Peruano, issued on December 11 of last year.

Although the said decree is legally a definitive official act, as some doubts have arisen as to the convenience of some of its clauses, and I am desirous as a bonâ fide contractor that the agreement should consult the interests of and be equally satisfactory to both parties, I have determined to apply to your excellency and to propose the new contract which follows, the acceptance of which by your excellency will render the existing one null and void.

[Page 440]
  • Article 1. Messrs Olyphant & Co. will establish a line of steamers between Peru and Asia, and for this purpose will form a company of which they will be the general agents in Asia during the existence of this contract.
  • Art. 2. Each steamer shall be capable of carrying one thousand passengers, more or less, and shall be so fitted as to comply with all the laws and regulations of the colony of Hong-Kong.
  • Art. 3. This contract shall remain in force for five years from the day on which the first steamship leaves China for Peru, and during this term the steamers shall make twenty-eight round voyages, three of these being made during the first year, four during the second, and seven during each of the three succeeding years.
  • Art. 4. The first steamer shall leave China six months after this contract is signed, and the company will appoint fixed dates for all subsequent departures.
  • Art. 5. All the vessels of the company will carry a doctor and a supply of all medicines which may be required; and medical attendance and medicines will be supplied gratis to the passengers during the voyage.
  • Art. 6. The Government of Peru will appoint Messrs. Olyphant & Co. special emigration agents of the Republic of Peru in China and Hong-Kong during the term of this contract, in order that they may facilitate emigration and exercise the requisite supervision in regard to the quality of the emigrants leaving China for Peru.
  • Art. 7. The emigrants shall come to Peru free and spontaneously, and all the stipulations contained in the treaties between Peru and China shall be strictly observed.
  • Art. 8. The government will provide a place of residence in Callao in which the immigrants brought by the company’s ships will be allowed to remain, without charge, for eight days after their arrival.
  • Art. 9. The vessels of the company will be exempt from all fiscal taxes and municipal dues, in the ports of the republic, and will enjoy the same rights and privileges now granted to the Pacific Steam Navigation Company, or which may be granted to any other line.
  • Art. 10. The mail-bags will be carried free by the steamers between Peru and Asia, and without any expense to the state. A reduction of 50 per cent, on tariff rates will also be made on the passages of government employés.
  • Art. 11. In accordance with the law of June 16, 1875, the government will pay the company, during the five years for which this contract is signed, a yearly subsidy of 160,000 soles Peruvian silver money. This subsidy shall be paid in coin, or in nitrate should the government so desire. In the latter case the nitrate will be delivered to the contractors at stated periods during the year, and in such manner as to enable the contractors to receive in China in proportion the proceeds of the sale of this article on the departure from China or Hong-Kong of each steamer for Peru. The nitrate will be sold to the company at the price which is charged by the government at the port of shipment, in the province of Tarapaca, in the epoch of exportation of each cargo. The contractors may introduce and sell the nitrate in any part of the world except Europe.
  • Art. 12. Should the experience obtained during the first year prove that, notwithstanding the subsidy granted for each of the following years, during which a larger number of voyages have to be made, the company could not effect these without suffering a loss, then it will have the right to suspend all traffic, and the reciprocal obligations imposed by this contract will cease, unless the government, by authorization of Congress, and in consequence of the importance of the enterprise, the manner in which it is conducted, and the benefits derived by the country from the arrival of immigrants, should determine to raise the said subsidy proportionately to the larger number of voyages required to be made during the subsequent four years.
  • Art. 13. In the event of the company failing to perform one or more trips, as provided by article 3, it will then pay the government 5,000 soles by way of fine. The company, however, will not pay this fine if the interruptions in its voyages were caused by circumstances over which it had no control.
  • Art. 14. If, at the termination of the five years for which this contract is made, the government should be authorized by Congress to continue the subsidy for a new term, of years, the company will obtain the preference in continuing to maintain steam communication between Peru and Asia, and to receive the new subsidy.
  • Art. 15. The contractors undertake to introduce as many immigrants as possible, so that at the end of each year at least 500 shall have arrived, on an average, by each vessel.
  • Art. 16. As stipulated in the contract of March 11, 1876, made by the government with Señor N. Tejerina, the government will give the vessels of the company, should the company so desire, a cargo of 1,000 tons of guano in sacs, for each return voyage to China, but in no case will more than 6,000 tons, yearly, he supplied. Freight on this guano will be paid at the rate of £3 per English ton of 2,240 pounds.
  • Art. 17. The steamers of the company will be allowed to touch at Japan whenever it is necessary, in order to receive passengers and cargo from that empire.
  • Art. 18. All questions which may arise between the government and the company [Page 441] shall be settled by the judges and tribunals of the republic, in accordance with its laws, and in no case shall they give origin to diplomatic intervention.
  • Art. 19. The contractors will be exempt from the payment of stamp-tax on the notary’s instrument to be drawn up containing the present contract.

H. SEYMOUR GEARY.