Mr. Hay to Mr. Conger.

No. 674.]

I have to acknowledge the receipt of your No. 1252, of the 31st of March last.

In reply, I have to say that the present situation of affairs in Manchuria and the disinclination of the Chinese Government to discuss at this time the subject of opening new localities to foreign trade in China dispenses with the necessity of replying to your dispatch by cable, as requested.

Ta-ku-shan was selected as the most desirable locality to ask for as a treaty port by the treaty commissioners of the United States at Shanghai. Later on this Government insisted upon this locality because these same commissioners telegraphed the Department that the Japanese Government had also asked that it should be made a treaty port. We have since heard that the Japanese ask for Ta-tung kou, at the mouth of the Yalu, and you now advise that it be selected instead of Ta-ku-shan.

The Department is ready to accept your views, which it now learns are also those of Messrs. Goodnow and Seaman, but it desires that the Japanese treaty commissioners should be consulted and, if possible, their concurrence obtained before presenting the matter to the Chinese commissioners.

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The Department agrees also with you in believing that the opening of Harbin to foreign trade is desirable. You should freely consult with such of your colleagues as are interested in this question, and report to the Department their views and the steps they are taking or propose taking to bring about the opening of Harbin.

I am, etc.,

John Hay.