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The commissioners shall be bound to examine and decide upon every claim within two years and six months from the day of their first meeting. It shall be competent for the commissioners conjointly, or for the umpire if they differ, to decide in each case whether any claim has or has not been duly made, preferred and laid before them, either wholly or to any and what extent, according to the true intent and meaning of this convention.

ARTICLE IV.

When decisions shall have been made by the commissioners and the arbiter in every case which shall have been laid before them, the total amount awarded in all the cases decided in favor of the citizens of the one party shall be deducted from the total amount awarded to the citizens of the other party, and the balance, to the amount of three hundred thousand dollars, shall be paid at the city of Mexico or at the city of Washington, in gold or its equivalent, within twelve months from the close of the commission, to the government in favor of whose citizens the greater amount may have been awarded, without interest or any other deduction than that specified in Article VI of this convention. The residue of the said balance shall be paid in annual in stalments to an amount not exceed ing three hundred thousand dollars, in gold or its equivalent, in any one year until the whole shall have been paid.

ARTICLE V.

The high contrasting parties agree to consider the result of the proceedings of this commission as a full, perfect, and final settlement of every claim upon either government arising out of any transaction of a date prior to the exchange of the ratifications of the present convention; and further engage that

Los comisionados tendran la obligacion de examinar y decidir todas las reclamaciones dentro de dos años y seis meses, contados desde el dia de su primera reunion. Los comisionados de comun acuerdo ó el árbitro, si ellos difirieren po dran decidir en cado caso, si una reclamacion ha sido ó no debidamente hecha, comunicada y sometida á la comision, ya sea en su totalidad ó en parte y cual sea esta, con arreglo al verdadero espiritu y á la letra de esta convencion.

ARTICULO IV.

Cuando los comisionados y el árbitro hayan decidido todos los casos que les hayan sido debida mente sometidos, la suma total fallada en todos los casos decididos en favor de los ciudadanos de una parte, se deducirá de la suma total fallada en favor de los cuidadanos de la otra parte, y la diferencia hasta la cantidad de trescientos mil pesos en oro, ó su equivalente, se pagará en la ciudad de Mexico ó en la ciudad de Washington, al gobierno en favor de cuyos ciudadanos se haya fallado la inayor cantidad, sin interes, ni otra deduccion que la especificada en el Articulo VI de esta convencion. El resto de dicha diferencia se pagará en abonos anuales que no excedan de trescientos mil pesos en oro ó su equivalente, hasta que se haya pagado el total de la diferencia.

ARTICULO V.

Las altas partes contratantes convienen en considerar el resultado de los procedimientos de esta comision, como arreglo completo. perfecto y final, de toda reclamacion contra cualquiera gobierno, que proceda de acontecimientos de fecha anterior al canje de las ratificaciones de la presente conven

every such claim, whether or not the same may have been presented to the notice of, made, preferred, or laid before the said commission, shall, from and after the conclusion of the proceedings of the said commission, be considered and treated as finally settled, barred, and thenceforth inadmissible.

ARTICLE VI.

The commissioners and the umpire shall keep an accurate record and correct minutes of their proceedings, with the dates. For that purpose they shall appoint two secretaries versed in the language of both countries to assist them in the transaction of the business of the commission. Each government shall pay to its commissioner an amount of salary not exceeding forty-five hundred dollars a year in the currency of the United States, which amount shall be the same for both governments. The amount of compensation to be paid to the umpire shall be determined by mutual consent at the close of the commission, but necessary and reasonable advances may be made by each government upon the joint recommendation of the commission. The salary of the secretaries shall not exceed the sum of twenty-five hundred dollars a year in the currency of the United States. The whole expenses of the commission, including contingent expenses, shall be defrayed by a ratable deduction on the amount of the sums awarded by the commission, provided always that such deduction shall not exceed five per cent. on the sums so awarded. The deficiency, if any, shall be defrayed in moieties by the two governments.

ARTICLE VII.

The present convention shall be ratified by the President of the United States, by and with the advice and consent of the Senate thereof, and by the President of the

cion; y se comprometen ademas á que toda reclamacion, ya sea que se haya presentado ó no á la referida comision, sera considerada y tratada, concluidos los procedimientos de dicha comision, como finalmente arreglada, desechada y para siempre inadmisible.

ARTICULO VI.

Los comisionados y el árbitro llevaran una relacion fiel y actas esactas de sus procedimientos con especificacion de las fechas; con este objeto nombrarán dos secretarios versados en las lenguas de ambos paises, para que les ayuden en el arreglo de los asuntos de la comision. Cada gobierno pagará a su comisionada un sueldo que no exceda de cuatro mil quinientos pesos al ano, en moneda corriente de los Estados Unidos, cuya cantidad será la misma para ambos gobier nos. La compensacion que haya de pagarse al árbitro se determinará por consentimiento mútuo, al terminarse la comision; pero podran hacerse por cada gobierno adelantos necesarios y razonables en virtud de la recomendacion de los dos comisionados. El sueldo de los secretarios no excederá de la suma de dos mil quinientos pesos al año, en moneda corriente de los Estados Unidos. Los gastos todos de la comision, incluyendo los contingentes, se garán con una reduccion proporcional de la cantidad total fallada por los comisionados, sien pre que tal deduccion no exceda del cinco por ciento de las cantidades falladas. Si hubiere algun deficiente, lo cubrirán ambos gobiernos por mitad.

ARTICULO VII.

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La presente convencion será ratificada por el Presidente de la república Mexicana, con aprobacion del Congreso de la misma, y por el Presidente de los Estados Uni

Mexican republic, with the approbation of the Congress of that republic, and the ratifications shall be exchanged at Washington within nine months from the date hereof, or sooner if possible.

In witness whereof the respective plenipotentiaries have signed the same and have affixed thereto the seals of their arms.

Done at Washington, the fourth day of July, in the year of our Lord one thousand eight hundred and sixty-eight.

WILLIAM H. SEWARD. [L. S.]
M. ROMERO.

[L. S.]

dos, con el consejo y aprobacion del Senado de los mismos, y las ratificaciones se cangearán en Washington dentro de nueve meses contados desde la fecha de la convencion, ó antes, si fuere posible. En fé de lo cual, los respectivos plenipotenciarios la hemos firmado y sellado con nuestros sellos respectivos.

Hecho en Washington el dia cuatro de Julio, del año del Señor mil ochocientos sesenta y ocho.

M. ROMERO.
[L. S.
WILLIAM H. SEWARD. [L. S.]

And whereas the said convention has been duly ratified on both parts, and the respective ratifications of the same have thisday been exchanged: Now, therefore, be it known that I, Andrew Johnson, President of the United States of America, have caused the said convention to be made public, to the end that the same, and every clause and article thereof, may be observed and fulfilled with good faith by the United States and the citizens thereof.

In testimony whereof, I have hereunto set my hand, and caused the seal of the United States to be affixed.

Done at the city of Washington this first day of February, in the year of our Lord one thousand eight hundred and sixty-nine, and of the independence of the United States of America the ninety-third.

[SEAL.]

By the President:

ANDREW JOHNSON.

WILLIAM H. SEWARD, Secretary of State.

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Papers relative to prohibiting steamers sailing under the flag of the United States from using or passing through Straw Shoe channel in the Yangtsze

river.

March 1, 1869.--Referred to the Committee on Foreign Affairs and ordered to be printed.

To the Senate and House of Representatives: '

Referring to my communication to Congress of the 26th ultimo, concerning a decree made by the United States chargé d'affaires in China, on 1st of June last, prohibiting steamers sailing under the flag of the United States from using or passing through the Straw Shoe channel on the Yangtsze river, I now transmit a copy of a despatch of the 22d of August last, No. 25, from S. Wells Williams, esq., and of such of the papers accompanying it as were not contained in my former communication. I also transmit a copy of the reply of the 6th instant, made by the Secretary of State to the above-named despatch.

WASHINGTON, February 23, 1869.

ANDREW JOHNSON.

No. 25.1

Mr. Williams to Mr. Seward.

LEGATION OF THE UNITED STATES,
Peking, August 22, 1868.

SIR: I have the honor to transmit for your consideration, and to be submitted to Congress, the original and printed copy of a decree dated June 1, 1868, (enclosure A,) which I have made in conformity to the act of Congress, and which has received the approval of most of the consuls and been duly published.

This measure of closing the cut-off near Nanking to all steamers navigating the Yangtsze river, was proposed more than two years ago by Prince Kung, but owing to some informality nothing was done at the time. In January last he again urged it upon all the foreign ministers in a despatch, (enclosure B,) wherein he stated the principal reasons for adopting it; but very injudiciously appended to his proposal the mode of punishing the vessels offending against the rule. This addition would have

involved a violation of treaty rights, and therefore could not be admitted, as I represented to him in my reply, (enclosure C,) but the desirableness of adopting the regulation on grounds of humanity was admitted by all. The masters and owners of most of the American and English steamers on the river, when inquired of, admitted the same also; and Messrs. Russell & Co., who have control of nearly one-half of the passage steamers, replied as follows when asked their views on the subject:

In accordance with your request, we have made inquiries of the captains of the steamboats under our care; and the result is that we think there is reason in the proposition of the government to close it to foreign steamers. That the danger to native boats is exaggerated is quite possible, but the fact that the cut-off is the anchorage ground, or port of Nanking, seeins clear, and the constant passage of steamers would be a great inconvenience to the native boats to say the least. We trust, however, that acquiescence in this instance will not lead to other cut-offs being closed where no valid and peculiar reason exists, for if so the navigation of the river would be much interfered with.

Mr. Sands, United States vice-consul at Chin Kiang, while regarding the liberty to trade on the Yangtsze as involving the right to use every part of its channel, still assented to the decree, "because the Straw Shoe channel is not necessary to the navigation of the river by steamers, and it is used by the native craft as an anchorage during stress of weather, such an anchorage being very necessary to them; and steamers passing through the cut-off subject them to considerable damage in being thrown against each other by the swell made by the wheels of the steamers, although there has been but one case of collision in this channel since the river was opened, between native crafts and the steamers."

Dr. Salter gives his reasons for declining to assent to the decree, in his letter of July 2, which, and my reply, (enclosures D, E,) furnish you with all that need be said in addition to the above extracts to explain the subject.

The question brought up in this decree involves a peculiar and novel feature in the international relations between China and the treaty powers, inasmuch as it is territorial, and not commercial or political. The limits of the open ports, and the privileges of access into the interior, with the rights growing out of them, have been arranged in conformity to treaty stipulations; but the treaties contain no provision enabling either party to limit or extend any territorial right conceded in them. The only legal way to reach the object in view, as it appeared to me, so as to make the regulation binding on American citizens, was to make the decree enforce a prohibition of the Chinese government over its own steamers. The British minister took the same view of it, and I now respectfully submit my action for your consideration.

I have the honor to be, sir, your obedient servant,
S. WELLS WILLIAMS.

Hon. WILLIAM H. SEWARD,

Secretary of State.

A.

CONSULATE GENERAL OF THE UNITED STATES,

Shanghai, July 25, 1868.

I am instructed by the United States chargé d'affaires to China to publish the annexed decree, with the opinions thereon inscribed.. It will become binding and obligatory in ten days from the date of this notification.

GEO. F. SEWARD,
Consul General.

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