Mr. Gresham to Mr. Denby, chargé.

No. 960.]

Sir: I have to acknowledge the receipt of your No. 1938, of August 22, last, and to approve your action in using your friendly offices to effect an understanding between China and Japan, exempting from seizure the merchant vessels of the two countries.

It is to be regretted that an agreement was not reached by the belligerent powers on the important question of defining what should be considered as contraband of war on the high seas.

I am, etc.,

W. Q. Gresham.