to give official protection to the said telegraph line during its construction and after its completion, and permit the company to lease ground and erect small watch-houses at convenient distances from each other along the route, say ten miles apart, where Chinese watchmen will be employed to guard the line, (the company to pay such rent for the ground as may be agreed upon with the owners of the same.) The company are permitted in like manner to obtain ground and erect telegraph stations at or near the two cities of Hing-Hua and Chen-Chan, where European operators may reside. 2d. It is agreed that the provincial authorities shall not grant to any other company or person permission to erect another, or a competing telegraph line between Foochow and Amoy aforesaid, for or during the space of thirty years from the date of this agreement; the Chinese authorities reserving to themselves the right to purchase the line at any time after its completion, at the actual cost of its construction, (adding thereto interest from the date of its completion to date of purchase, at a rate per cent. to be determined and agreed upon by the Chinese authorities and the representatives of the company.) In the event of the line being purchased by the Chinese authorities, the company will not erect a competing line. 3d. The Great Northern Telegraph Company aforesaid undertake to erect the telegraph-poles along the route selected and located as aforesaid, and to place thereon two lines of wire, one of which is to be worked by the company and in the company's interest for commercial purposes, and the other shall be worked solely in the interest of the Chinese authorities and for government purposes only, the telegraph company reserving to themselves the right to control the second wire in the manner hereafter named, viz: The company will work the wire in the interest of the Chinese government until their own appointed people are able to perform the work themselves, and will supply the Chinese with office-room and instruments at Foochow and Amoy, and at intermediate stations, free of charge, and will also instruct Chinese lads appointed by the authorities in the art of telegraphy free of charge. 4th. In order that the company may be assured that only government messages are transmitted over the government wire, the Chinese authorities agree that the draughts of all messages sent by them for transmission either at Foochow, Amoy, or the intermediate stations, shall have upon them a certain official seal, and a copy or impression of such seal shall be deposited with the operator or agent at each station. 5th. It is agreed that the office or operating-room, both of the company and Chinese, shall be in the same building at Foochow, Amoy, and the intermediate stations. The poles, wires, instruments, and stations are to be the property of the company until such time as the Chinese authorities shall elect to purchase the same, as before stated. 6th. All government messages sent by the Chinese authorities, for transmission over the wire, shall be dispatched without delay, and if in any case a non-official message shall be sent by an attaché of the yamên to the telegraph-office for transmission, the Chinese will try to discover the writer thereof and punish him in a suitable manner for the offense. The company agree that no official messages sent by the Chinese authorities shall be published by the company or any of their employés. All official messages received at the different stations for the Chinese authorities will be immediately delivered as addressed by the company. It being the wish of the Great Northern Telegraph Company to cultivate and maintain the most friendly relations with the Chinese authorities and the people, they will be found willing to change or vary the stipulations contained herein if such change shall appear to be for the general good, and shall not materially damage their interests; and on the other hand the Chinese authorities agree to do all things convenient and reasonable to facilitate the early completion of the telegraph-line. As a proof of the good faith of the two parties concerned in this agreement, it is signed by the company's agent, Mr. J. Henningsen, on behalf of the telegraph company, and by the foreign trade committee on behalf of the Chinese provincial authorities. No. 79.1 [Inclosure 4 in No. 798.] Mr. Seward to Mr. Sheppard. UNITED STATES CONSULATE-GENERAL, Shanghai, August 26, 1874. SIR: You will understand the situation at Foochow from the inclosed letter from Mr. De Lano and the inclosed copies of the agreement between the provincial authorities and the Great Northern Telegraph Company. I now, on behalf of the company and in the interests of progress and civilization, place these documents in your hands with a view to secure your aid for the company. It has been thought by Mr. Dreyer and me that the aid of the viceroy at Chihli might be useful. It is thought that there is noth ing to be gained by Mr. Giguel's plan, which would not be sooner and more economically effected by the telegraph company, while, if at last, Mr. Giguel's plan is to be adopted, the provision for the purchase and sale of the line would make such course easy. I conceive moreover that it is exceedingly desirable that telegraphs shall be introduced into China in such manner as to be in a degree independent of Chinese surveillance. Having the highest opinion of your discretion I write to you in the matter, giving you, with Mr. Dreyer's consent, the fullest discretion to introduce the subject to the viceroy or not, as may seem wise to you, and if you do introduce it, to invite his aid with the government at Peking or otherwise. You will notice that Mr. Geoffroy's proposal for the establishment of an inspector of telegraphs probably looks to the scheme foreshadowed at Foochow by the imperial commissioner, Shên. SIR: I have had the honor to receive your letter of yesterday. I now inclose you a copy of a document not yet formally executed, but, as I understand, agreed to by the officials at Foochow, for the establishment of a telegraph line between Foochow and Amoy. This moment, when the Chinese fear a war and are made painfully conscious of their lack of means of resistance, including the telegraph and railroads, affords an opportunity to press home upon them their opportunities to institute these very desirable ameliorations of the means of communication. I therefore suggest to you, for your consideration, whether you can do anything so calculated to promote general interests as to visit the provincial officers at Hangchow, and submit to them the agreement mentioned, as indicating what they can do in the way of establishing a telegraph between their city and Ningpo. If you fail we are no worse off, and possibly you may I am, &c., succeed. No. 166. GEORGE F. SEWARD. No. 410.] Mr. Hunter to Mr. Seward. DEPARTMENT OF STATE, SIR: Your dispatch No. 791 in reference to the delivery of a criminal named Walter Jackson to the Hong-Kong government, and inclosing a copy of a letter addressed you by J. Gardiner Austin, colonial secretary, and your reply, and also a copy of your dispatch to Mr. Williams, chargé d'affaires at Pekin, is received. From the correspondence with the Hong-Kong government it appears that Walter Jackson, having been arrested in Shanghai, claimed to be an American citizen, and was delivered to you at your request; that this information being conveyed to Hong-Kong, a requisition was made upon you by letter from the colonial secretary for the delivery of Jackson, and that you informed him that while you would hold him a reasonable time to receive the evidence upon which the requisition was made, you were under no obligation to deliver the prisoner except in accordance with the provisions for the extradition of criminals as settled by treaty between the British government and the United States. The Department is somewhat at a loss to ascertain the precise intention of the government of Hong-Kong by its demand. According to settled usage in the United States, criminals are not delivered up on the demand of a foreign state except pursuant to the provisions of a treaty. If the request of the Hong-Kong government was intended to be a demand for extradition in accordance with the provisions of the treaty with Great Britain of 1842, it is sufficient to say that the treaty provides for the delivery of persons who, charged with certain crimes committed within the jurisdiction of either, "shall seek an asylum or shall be found within the territories of the other," where proper proceedings shall be taken. It is necessary, in the opinion of this Department, that the person whose extradition is sought shall be not only within the jurisdiction, but within the actual territory of the United States. No authority is given to any diplomatic or consular officer to grant a warrant of extradition. Upon an examination of the request made by the colonial secretary, the absence of the usual statement that the prisoner is a fugitive from British justice and within the territory of the United States will be noticed, and the fact that the proceedings were dropped on the reception of your note is quite significant. I am, &c., W. HUNTER, Second Assistant Secretary. No. 802.1 No. 167. Mr. Seward to Mr. Cadwalader. UNITED STATES CONSULATE-GENERAL, Shanghai, August 31, 1874. (Received October 12.) SIR: I have the honor to transmit to you herewith a copy of a letter which I have addressed to the legation, covering an identical note from myself and several of my colleagues to our respective superiors, in regard to the neutrality of the foreign settlements in China and Japan in case of war, and to the immunity of our commerce. I am, &c., GEORGE F. SEWARD. [Inclosure 1 in No. 802.] Mr. Seward to Mr. Williams. No. 391.] UNITED STATES CONSULATE-GENERAL, Shanghai, August 29, 1874. SIR: The Taotai lately visited me, and I believe the English and French consuls on the same day, and in conversation raised the question, how far the neutrality of the foreign settlements here would, in case of war, be guaranteed by the foreign powers. In consequence of this visit I consulted with the British, German, and French consuls, and we have agreed to transmit severally to Peking a letter which has been drafted by Mr. Medhurst, and which, as I wrote yesterday in a private note, went forward yesterday to Mr. Wade, my draft being at the moment in the hands of M. Godeaux. I have brought the subject of this draft before the Taotai, and at a later moment Mr. Medhurst has communicated the same to him in writing. I understand that the Taotai was to send forward the draft furnished to him by Mr. Medhurst by yesterday's steamer. My colleagues appear to fear that the Chinese will attempt, in case of war, to sink ballast laden hulks upon the bar at Woosung. As our treaty provides for the immunity of our commerce in case of war, that is to say, on the Chinese side, I imagine that the strongest protest could be made against the proposal, which, moreover, is discountenanced, I think, by the feelings of the civilized world. As my colleagues are disposed to believe that, notwithstanding our treaty, the Chinose in exercise of their right of self preservation could not be greatly opposed in thus obstructing the bar, I suggest that this question should be considered by you. I shall send a copy of the draft-letter inclosed to Mr. Bingham. I have, &c., GEORGE F. SEWARD, [Inclosure 2 in No. 802.] Draft of an identical note to be sent by each consul to his ministerial representative at Peking. SIR: The probability of a war between China and Japan having of late attracted much attention, and the possibility of such a contingency not having by any means passed over, it has occurred to myself and some of my colleagues to consider what would be the position of the foreign settlements of Shanghai in such an unfortunate event, and how far it would be expedient to adopt such precautions as may render that position a comparatively safe one. It does not need any extraordinary foresight to predict that Shanghai, from its importance as a commercial center, and from its proximity to one of the few arsenals which China possesses, will become a focus of attack in case of hostilities being declared, and in that event the foreign settlements will at once be exposed to extreme danger, inasmuch as they stand (that portion called British more especially) exactly in a quarter where any outworks necessary to cover the city from hostile approach by the river must be constructed. No move has yet been made by the Chinese toward the utilization of this strategical position, but they may at any moment see fit to occupy it; and should they do so, and hostilities supervene, the consequences to neutral life and property may be very serious. The conclusion appears to myself and colleagues obvious, that, if such a sacrifice can be in any way averted, no effort ought to be left untried to accomplish it; and the alternative we would venture to propose is, that advantage should be taken of the presence in Peking of a Japanese minister plenipotentiary to negotiate for the neutralization of the ground covered by the foreign settlements, and a stipulation that nothing shall be done on either side to endanger the safety of the residents therein or of the property in their keeping. The Taotai of this place, it is believed, will be quite willing to give his consent to this proposition, and I beg to submit it to your excellency, in conjunction with such of my colleagues as are more directly interested, and each of whom has addressed an identical note to his minister, in the hope that the scheme may meet with your favorable consideration. I may refer here to the twenty-sixth article of the United States treaty with China, which provides for the immunity of American commerce in case of war, and to suggest that such further negotiations may be undertaken with the Japanese as will render this provision operative as far as they are concerned; and in this connection it may be mentioned that the Chinese are likely to obstruct the Woosung Bar in case of war unless some means are adopted to prevent them from taking this course. Various and serious questions, it must be confessed, will be involved in the adoption of the proposed measure, but as these must of necessity occur to your mind, and their discussion scarcely comes within my province, I prefer to submit the simple proposition free of all argument or remark. My colleagues agree with me that it is also beyond our province to propose that any arrangement arrived at will embrace all the foreign settlements in China and Japan, but it may not be amiss to point out how obviously desirable such an extension would be. No. 811.] No. 168. Mr. Seward to Mr. Cadwalader. UNITED STATES CONSULATE-GENERAL, Shanghai, September 2, 1874. (Received October 12.) SIR Referring to the matter of the arrest of General Le Gendre, at Amoy, I have now to submit the following further information: After the consideration which I gave to the subject, as indicated in my dispatch No. 797, it seemed to me that a prosecution of Le Gendre before me under the neutrality act must fail. At this conjuncture I received a dispatch from Dr. Williams, dated July 31, a copy of which I inclose. Looking to the tenor of this letter I concluded that my wisest course would be to release Le Gendre immediately upon his arrival here. I did this, and now inclose to you a copy of my dispatch to Dr. Williams, No. 387, reporting this action. After Le Gendre's arrival I received two letters from the consul-general for Japan, copies of which, and of my responses and of the order to release Le Gendre, will be found herewith. I have received no word from Dr. Williams of later date than the dispatch of July 31. The arrest of Le Gendre gave the liveliest satisfaction to all the Chinese officials. Mr. Henderson's dispatch No. 44 to the Department speaks of the sentiments of the Chinese in this regard. They consider that Le Gendre has been the promoter of the whole business, and seem to feel that the chances of an amicable settlement with Japan would be increased by his removal from the field. It is with extreme satisfaction that I learn at this moment that the leave of Lieutenant Cassel has been revoked. There are difficulties in dealing with our citizens who are civilians, but none can arise when the person is an officer of the Government. And for the one the responsibility of the Government is very different from that which arises in the other case. I have, &c., GEORGE F. SEWARD, Consul-General. [Inclosure 1 in No. 811.] [Confidential.] Mr. Williams to Mr. Seward. LEGATION OF THE UNITED STATES, Peking, July 31, 1874. SIR: I have received your two dispatches, No. 369 of 17th ultimo, and No. 377 of the 8th instant, with one from Consul Henderson of the last date, all relating to the Japanese invasion of Formosa and the connection of American citizens with that expedition, and the proper action of United States consular authorities growing out of it. In Mr. Henderson's dispatch a report is given of some of the proceedings of Mr. Cassel and Mr. Wasson in aid of the Japanese, and you are of opinion that writs of arrest against them and other Americans in the expedition may now properly be issued. I have carefully read all these papers and whatever else I can learn bearing upon the subject; and I shall defer for a while to instruct Mr. Henderson in the premises to issue such writs, for the following reasons: One initial difficulty in this whole affair is that there has been no declaration of war on either side. Both the Chinese and Japanese governments affirm that they are still at peace, although the latter have committed hostile acts against the former, invading their territory, attacking the villages of aborigines, and appropriating property taken by force. We know that neither of these nations acknowledge or understand what is technically called international law, and therefore between each other we can hardly look for their acting according to its requirements. * The officers of the Tsungli yamun were much startled to learn that the Japanese were assisted and guided by United States naval and military officers; and it is not strange that they complained that this was in direct violation of Article I of the treaty between China and America, and asked me to order them to withdraw from their connection with the force then going to Formosa. I declined to do so at first, on the plea that the Japanese had assured foreign nations that they had the consent of the gov ernment of Peking to chastise the aborigines of Formosa for injuries done their subjects; but learning afterwards that this assurance was quite unauthorized, I told the yamun that the cousul had been directed to warn them and all Americans to leave the |