Mr. Denby to Mr. Olney.

No. 2649.]

Sir: In my dispatch No. 2616 of October 20 last I informed you that Japan had renounced its claim, based on the sixth article of the Shimonoseki treaty, that China could not tax articles manufactured by Japanese in China. I have now the honor to inclose a translation of a protocol agreed upon between Japan and China, on the 19th day of October last, which, among other things, provides “that the Chinese Government may impose such tax as it may see fit on the articles manufactured by Japanese subjects in China, provided that such tax shall neither be other than that payable by the Chinese subjects nor higher.”

In consideration for this concession Japan is granted the right to have settlements for the use of Japanese exclusively at each open port of China, and other privileges.

I have, etc.,

Charles Denby.
[Page 98]
[Inclosure in No. 2649.—Clipping from North. China Daily News of November 17, 1896.]

china and japan.

The following Japanese telegram, dated Tokio, the 10th instant, is translated by the Kobe Chronicle:

“The following protocol, agreed upon between Japan and China in regard to Japanese settlements at the open ports of China and other matters, is published in the Official Gazette to-day:

“‘Baron Hayashi Tadasu, envoy extraordinary and minister plenipotentiary of His Majesty the Emperor of Japan, and the minister of foreign affairs of His Majesty the Emperor of China have agreed upon the following stipulations supplementary to the treaty of commerce and navigation:

  • “‘Article I. It is agreed by the contracting parties that settlements exclusively for the use of the Japanese shall be provided at each open port of China, the Japanese consul having full control over the roads and police affairs in such settlements.
  • “‘Article II. It is agreed that all matters relating to steamers and other boats of foreign merchants, and the persons engaged in the said boats, referred to in the regulations for trade of foreign merchants in the three provinces of Hu, Kiang, and Su, issued by the Shanghai customs on the 3rd day of the 8th month of the 22nd year of Kuang Hsu, shall be determined upon consultation with the Japanese authorities, and that the Yangtse trade regulations shall be applied as far as practicable until such provisions shall have been adopted.
  • “‘Article III. The Japanese Government agrees that the Chinese Government may impose such tax as it may see fit on the articles manufactured by Japanese subjects in China, provided such tax shall neither be other than that payable by the Chinese subjects nor higher. The Chinese Government agrees to allow settlements to be established without delay for the exclusive use of Japanese at Shanghai, Tientsin, Amoy, and Hankow upon the demand of the Japanese Government.
  • “‘Article IV. The Chinese Government agrees to instruct the governor-general of Shantung that the Chinese army shall neither approach nor occupy any place within an area of five Japanese ri, or about 40 Chinese li, measured from the boundary of the district occupied by the Japanese army, in accordance with the treaties between the two countries.

“‘Done in duplicate, in the Japanese and Chinese languages, and carefully compared, signed, and sealed, a copy being kept by each of the signatories.

“‘Hayashi Tadasu.

“‘Prince King.

“‘Yin Lu.

“‘Chang Yin-Huan.

“‘19th day, 10th month, 29th year of Meiji.

“‘13th day, 9th month, 22nd year of Kwangsu.’”