The Acting Secretary of State to Chargé Wilson.

No. 182.]

Sir: I inclose herewith, for your information, a copy of a dispatch from the consul-general at Newchwang, submitting a report by him on the commercial exploitation of Manchuria and the probable date of the withdrawal of the Japanese troops; and a copy of a later dispatch and inclosure from him on the subject of the withdrawal of the Japanese troops.

I am, etc.,

Robert Bacon,
Acting Secretary.
[Inclosure 1.]

Consul-General Sammons to the Assistant Secretary of State.

Sir: In reply to the department’s numbered instructions of January 17, last (consular No. 16), I have the honor to hand you herewith a brief summary regarding present conditions and the prospective business exploitation of Manchuria as per the inquiries contained in the letter of Gordon & Ferguson, of St. Paul, Minn., under date of January 9, last, a copy of which was inclosed with the department instructions as above.

[Page 184]

I may add that I am informed that the Japanese military occupation of the port of Newchwang will continue, it is anticipated, for another year.

I am, etc.

Thomas Sammons,
Consul-General.
[Subinclosure.]

establishing foreign houses in manchuria.

[From United States Consul-General Sammons, Newchwang, Manchuria.]

Until the latter part of this month (February, 1906), the Japanese military authorities at Newchwang were unable to offer any encouraging information regarding representatives of foreign business houses entering the zone of what has been, and still is, the zone of Japanese military occupation in southern Manchuria. At this time (February 23, 1906) I am informally informed by the Japanese military administrator at Newchwang that the interior of Manchuria, so far as the Japanese are concerned, will very shortly be open to all, and that in a few days the initial permits to go inland on business or sight-seeing will be issued.

During the past six months there have been a few applications on the part of business men to go into the interior, among the number being three Americans, only one of whom, however, represents his own business interests. The others are associated with British companies. Until after peace was ratified such applications could not be pressed for consideration. However, during the past two months Americans who are interested in exploiting business enterprises in Manchuria have been earnest and active in their requests for permission to visit the interior.

The Japanese military authorities have pointed out that while from 5,000 to 10,000 troops were being moved out of Manchuria daily and the railroad capacity was fully taxed it would be inconvenient to provide for foreign visitors, as a general proposition, inside the war zone, either on business or pleasure. Some applicants have volunteered to furnish their own transportation by cart and pay for small guard to protect them from suggested dangers from robbers. Under existing conditions of military occupation, however, no permits have been granted, so far as I am aware, except to Japanese traders who are associated with the Japanese army and, therefore, provided for through the Japanese military officials. Two Americans, residing in California, who made a hurried trip of observation and inspection aboard a special car to the interior a couple of months ago, constitute the single exception to the general rule thus far enforced. A few foreigners have visited Port Arthur and Dalny, and points south of Mukden as sight-seers, but with the exception of the two Americans referred to only military attachés, war correspondents and, of course, Protestant and Catholic church missionaries, together with the American manager of the Japanese Army Y. M. C. A., I believe, are the only foreigners who have been granted permission to visit the interior, not including, of course, Japanese traders who have charge, also, of small stores or supply depots along the line of the railroad over which the troops are being moved.

The Japanese military authorities recently announced the appointment of a committee, with headquarters at Tairen (Dalny), which is charged with the duty of inquiring into the status of private foreign-owned property which was left in the Liaotung Peninsula district at the outbreak of the Russo-Japanese war or later. Foreigners applying with a view to adjudicating such property interests are directed to place their applications with the Japanese ambassador or minister, direct or through a Japanese consul, in the country in which applicant may reside. The application will be forwarded to the Japanese army headquarters at Tokyo and, if granted, a permit will issue through the Japanese foreign office. It is further stated that when such permits are issued, the Japanese civil authorities at Port Arthur and Tairen (Dalny) will be notified by telegraph and that the applicant, if then ready to proceed, may do so without waiting for the arrival of the permit.

This arrangement will accommodate those who desire to visit Port Arthur or Dalny for the purpose of adjusting private property matters but not on business.

[Page 185]

As stated above, the Japanese authorities at Newchwang have announced that foreign business men would shortly be allowed to visit the interior of Manchuria, and it is further, unofficially, stated that all of the Japanese troops, aside from the railway guards, would be out of Manchuria by March or April. The American consul-general at Newchwang has been invited by the Japanese military authorities to visit the interior during the latter part of the present month (February).

The country being under military occupation martial law regulations have, in an undefined way, as a rule, been presumed to obtain. At Newchwang there has been no formal withdrawal of martial law although the ratification of peace and the gradual modification of military restrictions have, in effect, naturally superseded such nebulous martial law regulations as have existed, more or less, tentatively at times during actual hostilities. There is still a small detachment of Japanese troops at the Newchwang garrison, and the morning and evening bugle notes are semidaily reminders of military occupation. At Mukden the guarding of the city gates with Japanese troops has been discontinued.

A few foreign business houses remained at Port Arthur after the fortress passed into the hands of the Japanese. No new foreign business houses have been established there or elsewhere inside the area of Japanese military occupation, aside from such small trading interests as have been granted Japanese civilians. At Dalny and Port Arthur a number of Japanese shops have been opened. Some foreign goods have, I am reliably informed, reached Dalny, being handled either by Chinese or Japanese. On such foreign goods, I am informed, a local or port tax of 3 per cent of the value is levied.

The only commercial information I have about Antung is in regard to a British steamship company desiring to do business there. Its representative was informed that permission could not be granted directly to the company, but that if the application came through a Chinaman the matter could be satisfactorily arranged.

Broadly speaking Manchuria is not open for business exploitation at this time. As regards inquiries about martial law prevailing at various points it is an undefined question. However, military occupation is, in an emergency, accepted as being tantamount to martial law possibilities and exigencies.

Interior trade is continually and quite successfully, too, carried on, nevertheless, through the Chinese. For a time there was a congestion of goods at Newchwang, but conditions are now approaching a normal average. Evidently, while the Japanese troops may have been entirely removed before May 1 next, the railway guards will remain, and in some localities military occupation will, I am unofficially informed, continue until the expiration of the eighteen months provided for evacuation after the ratification of the new Portsmouth treaty.

Thomas Sammons,
Consul-General.

[Inclosure 2.]

Consul-General Sammons to the Assistant Secretary of State.

No. 220.]

Sir: I have the honor to hand you herewith a copy of my dispatch No. 163 to Minister Rockhill, in re the evacuation of Japanese troops in Manchuria.

I am, etc.,

Thomas Sammons,
Consul-General.
[Subinclosure.]

Consul-General Sammons to Minister Rockhill.

No. 163.]

Sir: I have the honor to state that the Japanese military authorities advise me, informally, that they expect to have all of their troops out of Manchuria, [Page 186] excepting the guards, by or before the middle of next March, and that then the interior country will be thrown open to all foreigners.

I understand that this evacuation on the part of troops does not mean the simultaneous evacuation on the part of certain military or civil administrations. At Newchwang, for instance, I am informally advised that Japanese occupation will continue probably for several months, or possibly until the end of the eighteen months provided by treaty for the evacuation of Manchuria.

I am, etc.,

Thomas Sammons,
Consul-General.