Mr. Dun to Mr. Gresham.

No. 157.]

Sir: On the 27th ultimo I received from Mr. Jernigan, United States consul-general at Shanghai, a telegram to the effect that two Japanese, accused by the Chinese authorities of being spies, were at that time in his consulate; that the alleged spies were boys; that they had been students at Shanghai for three years, and that they had papers in their possession such as any intelligent boys might have. Mr. Jernigan requested me to act promptly in behalf of the accused young men.

I felt that it was difficult for me to do anything in the matter. However, I called at the foreign office here and ascertained that the young men in question were, as stated by Mr. Jernigan, students, and was assured by Mr. Hayashi, vice-minister for foreign affairs, that they were entirely guiltless of the offense charged. At Mr. Hayashi’s request, I telegraphed to Mr. Jernigan to wire me the names of the young men, and also telegraphed to Mr. Denby that the young men were not spies, and asked him if the Chinese Government would not postpone action in the matter until his father, Minister Denby, arrived, stating that he was expected here on September 2. I have the honor to inclose reading of my telegram to Mr. Denby herewith.

I have since ascertained that I was misinformed as to Minister Denby’s movements, and that he will not reach Japan at the time named in my telegram.

I also have the honor to inclose copy of a statement prepared by Mr. Yenjiro Yamada, late of the Japanese consulate-general at Shanghai, in regard to the two young men. I have sent a copy of this statement to Mr. Jernigan for his information.

It seems that the young men accused of being spies are students in a commercial school established some years since at Tokyo, with a branch at Shanghai, the object of which was to impart a knowledge of the commerce of China and Japan and to promote the trade relations between the two countries.

I have, etc.,

Edwin Dun.
[Page 375]
[Inclosure 1 in No. 157.—Telegram.]

Mr. Bun to Mr. Denby.

Japanese at the consulate, Shanghai, are not spies. Your father is expected here September 2. Won’t Chinese Government postpone action until arrival?

[Inclosure 2 in No. 157.—Statement.]

The two Japanese, Kusuuchi and Fukuhara, who were arrested under suspicion of being spies, have been living in Shanghai for the past four years for the purpose of studying the Chinese language, and at the same time of investigating into the trade. It appears that last spring they made a visit to Hankow and one of them, i. e., Kusuuchi, also to Soochow, in order to study commercial transactions, but they went to no other part of the interior.

They have been wearing Chinese costumes since about a year and a half ago, but this is a very common habit among young business students in China for the reason that they can thus secure many facilities in learning the language and commercial intercourse with the natives. They do so also because they have very limited means, and they can live more economically by adopting Chinese customs. Besides these there are no other special objects in view for wearing Chinese costumes.

Yenjiro Yamada.