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Inclosure 3 in Nc. 764.]

Mr. Williams to Mr. Seward.

LEGATION OF THE UNITED STATES,
Peking, June 8, 1874.

SIR: I have received your dispatch of the 30th ultimo, No. 366, with inclosures of copies of a letter from Minister Bingham, and your circular letter to the southern consuls, both relating to the Japanese expedition to Formosa.

I received a letter from Mr. Bingham of the same date as yours, and have informed the foreign office of his action in stopping the steamer New York, and urging the Japanese government to detach the American officers engaged in the expedition. The information respecting this whole affair in their possession was somewhat erroneous, and they were under the impression that the New York was a man-of-war, and Messrs. Le Gendre, Cassel, and Wasson were the leaders and commanders of the expedition.

I inclose a dispatch for Mr. Henderson, of Amoy, which may strengthen your circular in showing that the enterprise Mr. Cassel and Mr. Wasson are engaged in, is one which they cannot lawfully aid. I trust they will have already left it before the dispatch reaches Amoy.

The Chinese government will be much re-assured to learn that the United States authorities are determined to take all proper measures to restrain Americans from assisting this Japanese invasion of Formosa, consistent with treaty obligations; but they have exhibited so much hesitation in their action that they have missed the full effects it would have had upon the local officials at the ports, if these latter had early been informed how the expedition was regarded.

It will be

I think their own want of precise information had something to do with their inac tion, and I made it a reason for urging them to set up a telegraph-wire between the capital and southern provinces, by which they could learn such things sooner. the most intelligible argument to them for encouraging the telegraph, when they begin to see their awkward position in an affair like this, because they have it not.

I am, &c.,

No. 159.

S. WELLS WILLIAMS.

No. 766.]

Mr. Seward to Mr. Davis.

UNITED STATES CONSULATE GENERAL, Shanghai, June 23, 1874. (Received August 5.)

SIR: Referring to Mr. Henderson's dispatch, No. 32, I have the honor to inform you that his notification appeared to me to indicate a failure to appreciate our responsibility in this matter of the Americans connected with the Japanese expedition, and of the law applicable as a remedy. I therefore addressed him a letter, copy of which I inclose.

At a later moment the inclosed telegrams have passed between Mr. Henderson and me. I have no idea that the request indicated in Mr. Henderson's message was made only to him, and I do not believe that any good would have come of his interference.

I am, &c.,

GEORGE F. SEWARD.

No. 157.]

[Inclosure 1 in No. 766.]

Mr. Seward to Mr. Henderson.

UNITED STATES CONSULATE-GENERAL,

Shanghai, June 17, 1874.

SIR: I have received for transmission to Washington your dispatch No. 32, inclosing copies of letters which have passed between Commander Kautz and yourself, and a copy of your notification of the 6th of June.

It occurs to me that the final clause of your notification is not sufficiently stringent As the Chinese government has by treaty yielded up jurisdiction over our people so that it cannot punish them even by fine, it is obligatory upon us to deal with them. In this connection I refer you to a dispatch of Mr. Marshall to Mr. Marcy, of November 25, 1853; the same to Mr. Cunningham of November 1, 1853; Mr. Cushing to Mr. Marcy September 19, 1855, and Fitz Roy Kelly and James Stephen, opinion, May 22,

1862.

And in regard to the actual provisions of law violated by our people in entering the service of the Japanese upon this expedition, I refer you to the act of 20th April,

1818.

For all practical purposes quoad Americans, the jurisdiction of the United States is extended to all parts of the Chinese Empire, and that act may, I think, be as rigidly enforced in China as within the territory of the United States.

What I write to you in these matters is of course advisory only, and always subject to revision by the legation.

I am, &c.,

GEORGE F. SEWARD.

[Inclosure 2 in No. 766.1

[Telegram.]

Mr. Seward to Mr. Henderson.

HENDERSON, Amoy :

Auswer the Viceroy in a very friendly way, but avoid assuming any prerogative.

SHANGHAI, June 20, 1874.

SEWARD.

[Inclosure 3 in No. 766.]

[Telegram No. 317.]

Mr. Henderson to Mr. Seward.

AMOY, 2, 1874, 10h. 10m. a. m.

SEWARD, Shanghai :

Viceroy quotes first article treaty of '53, and asks me to assist imperial commissioner to peaceably settle trouble with Japanese. Can I act?

HENDERSON.

No. 768.]

No. 160.

Mr. Seward to Mr. Davis.

UNITED STATES CONSULATE GENERAL,

Shanghai, June 23, 1874. (Received August 5.) SIR: I have the honor to inform you that the first formal assent to construct a telegraph on Chinese soil has just been accorded to the Great Northern Telegraph Company by the Viceroy of Folkien. The line will be run from Foochow to the anchorage twelve miles below. I believe that Mr. DeLano contributed largely to this success. manager of the company called on me yesterday to state the fact, and to say that he considers the company largely indebted to Mr. DeLano. I am, &c.,

The

GEORGE F. SEWARD.

No. 36.]

No. 161.

Mr. Henderson to Mr. Davis.

UNITED STATES CONSULATE,

Amoy, June 23, 1874. (Received August 16.) SIR: On the 19th instant I received a visit from the Chinese Admiral Lec, and Taotai Chain, of Foochow, the latter bringing me a letter from the Viceroy on the Formosan difficulty, an extract from which is herewith inclosed.

Their business was to thank me for the friendship I had manifested, as they said, towards the Chinese government in ordering Americans to withdraw from the Japanese expedition to Formosa; to see if some further action would not be taken on their cases, and especially to ask me to go to Formosa and assist them in bringing matters to a peaceable understanding with the Japanese commander-in-chief, in this connection calling my attention to the first article of our treaty of 1858. They seemed to think that Mr. Le Gendre, an American, had planned and was managing the expedition, and therefore it was my duty to assist in getting the Japanese away. I reminded him that whatever Mr. Le Gendre or other Americans had to do with the affair was by authority of the Japanese government and not the United States. The Taotai, with much apparent confidence, desired my opinion on the merits of the questions between China and Japan. I replied that it would not be proper for me to express an opinion on that part of the subject; but having received instructions from the United States legation at Peking, I was now prepared to warn all Americans to withdraw from the expedition under penalty of arrest and trial for violating the neutrality.laws, and as soon as an opportunity was offered I would send them word to that effect. (The admiral having promised to furnish a gunboat for that purpose, it was agreed that a messenger should be sent to Formosa to give the requisite notice as soon as a ship could be got in readiness.)

What I had done in the matter I considered to be nothing more than my duty, and I was entitled to no thanks for it. As to my going with them to see the Japanese commander-in-chief, I thanked them and the Viceroy very much for the high compliment they paid me in asking me to perform so important an office, but I thought it would be inconsistent with my official station to act in that capacity, and in no event could I do so without express instructions from my own Government. I thought it certainly the interest of every nation to preserve peace between China and Japan.

At that time I attached no particular importance to this request, but when, two days after, it was renewed by them with much importunity, with the offer to place a man-of-war at my disposal and give me every facility for comfort and convenience, I telegraphed the fact to Mr. Seward for instructions, and was advised by him to answer the Viceroy in a friendly way, but to assume no prerogatives.

I presume nothing could be accomplished by complying with their re quest, even if there were not more poteut objections. I shall, therefore, do nothing inconsistent with a strictly neutral course.

To-day I dispatched a messenger, per China steamer, with instructions to go to the Japanese camp and serve personally Messrs. Cassel and Wasson, and any other American found taking part in the expedition, with a notice to withdraw, under penalty of arrest and trial for violating the law of neutrality.

I also inclose to each of the gentlemen named a dispatch to the same effect.

The best information I can get leads me to believe that Mr. Le Gendre has not been, and is not now, in Formosa, but he is in Japan directing the affair. The Chinese officers seem to blame him more than any other one person, and are very anxious he should be at once stopped from having anything to do with it, even as adviser.

The Japanese openly avow an intention to remain in Formosa and occupy the savage territory, and report that the greater part of its inhabitants have already surrendered to them with this understanding, but say they have no desire to interfere with that part of the island belonging to China. It is my opinion, however, that in the event of a declaration of war by China, they will, if possible, take possession of the whole place, including the treaty-ports.

I have, &c.,

J. J. HENDERSON.

[Inclosure in No. 36.]

The Viceroy to Mr. Henderson.

[Extract.]

JUNE 9, 1874.

Now, we have investigated this Formosa business, as well as the statements of the Taotai of Formosa, and the captain of the Yang Boo, to the effect that this expedition to the savages of Formosa has been planned by the former consul at Amoy, Le Gendre; also, one Cassel and many others were assisting, &c. We have also examined and found that Formosa has long belonged to China, and the savages are certainly under Chinese jurisdiction, and other nations have nothing to do with them. On this occasion Japan has sent soldiers to punish the savages without previous consultation with the foreign office and the Japan commander-in-chief, Hiang, without awaiting a communication from me, on his own motion took soldiers and formed a camp at Liang Kian, in entire violation both of international law and the treaty between China and Japan. We twice sent communication to Hiang, Japan, commander-in-chief, requiring him to take back his soldiers, and twice sent communication to the board of tradeto be forwarded to your honorable self to be examined and acted on, all which is on file.

We have received your dispatch in which you show your desire to carry out tre aty obligations, and in settling matters to preserve lasting peace and friendship, as well as you purpose to perform your duties, for all which we desire to express our hearty thanks.

We have appointed Chian, second in the board of trade, having rank of Taotai and formerly acting prefect of Foochow, to go to Amoy, and have sent a communication to Li, Admiral at Amoy, telling him to await the coming of Chian, and then with him have a consultation with the United States consul, and with him concert some plan of action. And in accordance with the provisions of article 1 of the treaty of the eighth year of Heinfung, (1858,) that the two countries shall mutually assist in preserving friendly relations, we ask your honorable self to request the Japanese commander, Hiang, to take his soldiers back to Japan.

And if in the vessels that are gone to Formosa there are any citizens aiding the Japanese, we ask you to punish those that are acting improperly, whether on land or sea, in accordance with the eleventh article of the treaty and the laws of your country. From the time when your honorable self arrived in China you have always managed affairs in strict accordance with right; so that the streets are full of praises of yourself by rulers and people, and we ourselves are truly thankful.

Now that there are affairs in Formosa over which you are consul, you can show your friendly feelings by acting in accordance with treaty, by taking measures in connection with Admiral Li and Prefect Chian. Thus can you show friendly feeling.

We have sent a communication to Admiral Li, and also one to Prefect Chian, ordering him to go to Amoy and arrange the whole affair with you, for which purpose we give them full powers. And we request you to act with these two, not only as officials, but as friends.

Hoping thus, with best regards.

To Mr. HENDERSON,

United States Consul, Amoy and Formosa.

No. 788.]

No. 162.

Mr. Seward to Mr. Davis.

UNITED STATES CONSULATE-GENERAL,

Shanghai, July 21, 1874. (Received September 11.) SIR: I have the honor to inclose to you further extracts from the North China Daily News, in regard to the Formosa expedition. Two of these are taken from the issues of the 5th and 7th of July, and give brief statements, the one by a Japanese, and the other by a Chinese correspondent, of the diverse views held in regard to the expedition. Two others are from the issue of the 14th of July. The one sets forth the strength of the Japanese navy, the other remarks upon the activity shown at the Shanghai arsenal.

The Chinese have available six vessels which have been constructed here. Four of these are gunboats of six hundred tons, more or less. Two are heavy frigates. They have also some fifteen vessels constructed at the Foochow ship-yard. These are mostly gun-vessels of one thousand tons; are all new and steam well. They have still other craft, which have been used in the different provinces for revenue purposes and in cruising after pirates. I should say, roughly, that the number of these vessels is six or eight. They are small, but would be useful in

a contest with the Japanese.

In point of fact, the Chinese navy is probably to-day well able to cope with the Japanese, notwithstanding the advantage the latter have in the possession of two iron-clads. These latter are inferior vessels, imperfectly clad, and with indifferent steaming capacity.

The extract of the 15th July gives a letter from the Japanese consul at Amoy to the Taotai at that port; and that of the 17th, a letter from a foreign correspondent in Formosa, which speaks favorably of the occasion of the expedition and its management. The extracts of the 21st give some desultory information of no particular interest.

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After Mr. Dreyer, of the telegraph company, had left Shanghai on this mission, I learned privately from Mr. Sheppard, our active officer at Tien-tsin, that the Chinese commissioner to Formosa had, among other things, recommended the establishment of a telegraph between Foochow and Formosa. This I communicated to Mr. Dreyer by telegraph, and, as a consequence, he visited Formosa, and has made a contract with the commissioner for the cable and the dependent land lines at each end. The cable will be about ninety miles long, the Formosa land line two hundred, and the Foochow end about fifty. This contract remains to be approved by the telegraph company at Copenhagen. The assent of the Chinese government has, I believe, been given already.

The present moment seems opportune for the creation of telegraph facilities between this and Peking. I have urged Mr. Dreyer to proceed thither at once, have asked Mr. Sheppard to do what he can with the Viceroy Li, and suggested the matter to Doctor Williams.

I am, &c.,

GEORGE F. SEWARD.

[Inclosures in No. 783.]

[From the North China Daily News, July 14, 1874.]

NAVAL FORCES OF JAPAN.

We are enabled to give the following particulars about the Japanese navy, taken from a statement which was drawn up by a competent authority, about the end of last

year:

Ric-jio-kan, wooden corvette, screw-steamer; 280 horse-power; length, 215 feet

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