The districts whose boundaries are given above are to be occupied in common by Chinese and foreigners for purposes of international trade. The boundaries of said settlements must be clearly marked with boundary stones. All countries having treaty relations with China shall be permitted to station commercial officers at the said places, and the merchants of all countries shall be permitted within the boundaries specified to come and go at pleasure, to lease land and build houses and shops, and to reside and do business there under the same regulations as the Chinese. All districts outside the boundaries of the international settlements, including the city gates and all lands in the vicinity belonging to Chinese merchants, must be treated as coming under the head of inland regulations; and foreign merchants must not be allowed to lease lands, buy houses, or establish places of business in such places.

3. The imperial maritime customs must be established at once at Mukden and Antung, to be under the joint control of the superintendent of customs and the commissioner of customs. It is proposed to memorialize requesting the appointment of the intendant of posts to be superintendent of customs at Mukden, and the taot'ai of the Eastern Marches to be superintendent of customs at Antung. A municipal council for each of these settlements and police administrations shall be established by China herself, and the merchants of foreign nationalities must uniformly observe the regulations of the municipal councils and those of the police authorities just as Chinese residents of the said places are required to do. (Municipal and police regulations are to be published in addition to these.) All matters pertaining to the good health of the settlements, to street cleaning and quarantine, as well as provisions for protection against fire, and all things relating to the safety and good order of the settlements are to be dealt with by the municipal councils and police administration established by China herself. Chinese deputies shall be appointed to hear and settle all miscellaneous cases, foreign or Chinese, such as fighting, petit larceny, and offenses against the settlement regulations; but serious cases shall be tried by the local magistrates. Foreign criminals shall be sent to the nearest consular officer of the nationality concerned to be tried.

4. All lands within the boundaries of the international settlements at the two ports named shall be purchased by the local authorities at a price to be fixed by them after consideration, and said lands shall in turn be leased by them so as to prevent the holding of lands for a rise and the practice of extortion. If any subjects clandestinely sell or purchase lands there, such sales shall be null and void.

Plans shall be drawn of the lands within the settlements, which shall be divided into three grades. First-grade land shall be leased at $50 per mou per annum; second-grade land at $30; and third-grade at $15. Leases shall run for thirty years, and at the expiration of such period the lease shall be given up in exchange for a new one, and at such time the rental shall be increased or diminished as circumstances may require, and a new period be fixed for the termination of the lease. Special regulations with respect to leasing land and building houses will be determined hereafter, and until they are promulgated, neither Chinese nor foreigners shall be permitted to compete for the lease of ground.

5. Within the boundaries of these international settlements the building of roads, the construction of drains, the building of wharves and public buildings, the establishment of jails and markets, the opening of wells, and the planting of trees shall be taken up in succession and dealt with by the Chinese authorities themselves. After the land within the settlements shall have been classified and surveyed appropriations will be made for the above-named purposes in the order of their importance.

6. The various taxes to be levied in the settlements, such as house rates, shop licenses, wharfage dues, hong taxes, carriage and boat licenses, and police dues, and fees for various kinds of permits, shall be determined by the superintendent of customs in consultation with the municipal council, and the police administration, who shall carefully consider the conditions and act accordingly, and when such rates are due Chinese and foreign merchants shall alike comply with the regulations.

7. Within the boundaries of the settlements no one shall be permitted to erect any reed or thatched houses, nor to store gunpowder nor other combustible materials, to fire guns or revolvers without good excuse, to carry any lethal weapon, unless he be a soldier or military officer, nor shall anyone be permitted to do anything prejudiced to the good health and peace of the settlements.

Anyone disobeying this prohibition shall be punished according to the laws of his own country. If blasting powder or other explosive be needed in carrying out any building operations, it will be necessary first to obtain a permit from the authorities, but even in such case it shall not be permitted to store such explosive for any length of time at the settlement.

8. Postal facilities and the telegraph and telephone systems shall be established by the Chinese authorities themselves for the use alike of Chinese and foreign merchants.

9. The foregoing are the general regulations. If additional regulations should be needed, they may be proposed and adopted from time to time, and the detailed rules or by-laws shall also be published hereafter.

In calling your imperial highness's attention to this memorial, which would have the effect of violating the treaty entered into by China with the United States, I have the honor to reaffirm Mr. Coolidge's note of the 17th instant to your imperial highness, pointing out that the selection of suitable localities for international use and occupation and the regulations governing them must be agreed upon by the Governments of the United States and China.

It is hoped that your imperial highness's Government will shortly appoint a representative to join with the representative of the United States for the purpose of making effective the stipulations of the treaty governing the manner of selection of the proposed settlements.

I avail, etc.,

THOMAS EWING MOORE.

[Inclosure 4-Translation.]

The Prince of Ch'ing to Mr. Rockhill.

PEKING, December 14, 1906.

YOUR EXCELLENCY: On the 19th of November I had the honor to receive a dispatch from Mr. Coolidge, the chargé d'affaires, with regard to the appointment of representatives to arrange the delimitation of the foreign settlements at Mukden and Dalny, and the regulations for the same.

My board at once communicated with the Tartar general at Mukden and the superintendent of trade for the north, directing them to consult together and reply. I have now received a reply from the superintendent of trade for the north, saying: "I find that Article XII of the commercial treaty between China and the United States provides that the Chinese Government agrees that, upon the exchange of the ratifications of this treaty, Mukden and Antung, both in the Province of Shenking, shall be opened by China herself as ports of international residence and trade,' and that the selection of fitting localities, to be set apart for international use and occupation, and the regulations for the same shall be agreed upon by the Governments of China and the United States after consultation together.' Since the treaty thus provides for consulting together, when the time comes for arranging the boundaries and the regulations, it will of course be necessary to consult together."

While this correspondence was going on I received another dispatch from Mr. Moore, the chargé d'affaires, saying that he had heard that the superintendent of trade for the north and the Tartar general of Shenking had already proposed, after consultation together, certain regulations for the two ports, Mukden and Antung, and Mr. Moore requested me to direct them at once to appoint deputies to consult with the representatives of the United States, and in accordance with the provisions of the treaty, to select sites for the settlements, determine their boundaries, and together deal with all matters pertaining to them. I have again communicated to the superintendent of trade for the north and the Tartar general of Shenking, directing them to consult together and deal with the matter.

It becomes my duty, therefore, to send this reply for your excellency's information.

A necessary reply.

[SEAL OF THE WAI-WU PU.]

THREATENED RESTRICTION OF THE BOUNDARIES OF THE INTERNATIONAL SETTLEMENT AT SHANGHAI.

The Secretary of State to Minister Rockhill.

No. 157.]

DEPARTMENT OF STATE,

Washington, June 30, 1906. SIR: I inclose herewith a copy of a dispatch from the consul-general at Shanghai, inclosing a copy of a letter to be addressed by the senior consul of the consular body at Shanghai to the dean of the diplomatic corps at Peking, protesting against the restrictions threatened by the Chinese on the natural growth of the foreign settlement at Shanghai toward the north and east. I also inclose a copy of the department's answer, approving the proposed letter.

You will support the request of the consular body unless you see some serious objection.

I am, etc.,

[Inclosure 1.]

ELIHU ROOT.

Consul-General Rodgers to the Assistant Secretary of State.

AMERICAN CONSULATE GENERAL, Shanghai, China, May 25, 1906. SIR: I have the honor to forward herewith a copy of a letter I have drafted for transmission by the senior consul of the consular body of Shanghai to the dean of the diplomatic corps at Peking. This subject of the proposed limitation of the foreign settlement in Shanghai and its environs is one of the most important questions between the foreigners and Chinese, and unless there is some amicable determination in the immediate future, it will furnish the incentive for trouble which will be far-reaching. In addition to the information contained in the inclosure, I may add that each day proves the absolute necessity of an extension of the settlement toward the east-the region which will be indicated for freight and cargo traffic when the Whangpoo improvement work is completed. The excessive values of land along the present water front and in the residential district, known as the western section, enforce the conclusion that the natural growth of Shanghai, which can not fail to be great, must be in the direction in which the Chinese authorities are now preparing to act. From Shanghai to Woosung is only 8 miles or thereabouts by the railroad, and eventually all of the territory between the railroad and the river will be settled by the population needed to transact the coming business of this important port.

It is to be hoped therefore that some mutually satisfactory arrangement can be devised at Peking which will not only avoid the dispute and trouble impending but will also settle for all time such questions affecting the future of Shanghai. A letter similar to this has been forwarded to the American minister at Peking. I have the honor, etc., JAS. L. RODGERS.

[Subinclosure.]

Letter from senior consul at Shanghai to dean of diplomatic corps, Peking.

SIR: I have the honor, on behalf of the consular body, to invite the attention of yourself and your colleagues of the diplomatic corps to a question which seems to be of the greatest moment to all foreign interests in Shanghai and its environs. The matter stated as briefly as possible is as follows:

To the north of Hongkew (the so-called American concession of old) is the district of Paoshan, into which by consent of Liu Kung Ye, late viceroy of the Liang Kiang Provinces, and Yuan, former taotai of Shanghai, as was evidenced

by proclamation, foreigners were allowed to extend roads, to build foreign dwellings on lands rented in perpetuity, and effect other improvements. These residents along North Honan and North Szechuen roads particularly, being beyond the settlement limit of Range road, volunteered-Chinese as well as foreigners to contribute money to the international municipal council in lieu of taxes, and in consideration of this policy obtained water, electric light, and gas service, and police and fire protection. By request the houses have been numbered, and the district has been treated as though a part of the settlement, without objection on the part of the Chinese. But of late the Chinese authorities have seen fit to protest against this natural extension of the city's growth and have given notice that there shall be no further encroachment under any species of municipal control. Furthermore it is announced that the Pao-shan district lying north of the line of Range road and west of Honan and Szechuen roads-being the section immediately adjacent to the Shanghai-Woosung-Nanking Railway line and station-is to be created a Chinese municipality and subject only to such jurisdiction as may be imposed by those appointed to govern it. While such procedure, which is entirely similar to that under which the Chinese Bund section adjoining the French concession on the south was created, may be entirely within the right of the Chinese, we feel it our duty to point out the ultimate effect upon the coming great development of Shanghai. The residential district of which the North Szechuen road is the main artery, under such limitations as will be prescribed by the Chinese hereafter can extend but little farther than the rifle range, and by a simple amplification of the Chinese programme their prospective municipality can block all egress to the north and prevent extension eastward along the north line of the present settlement limits. This would mean that the growth of the city between the water front of the Whangpoo and the Woosung Railway line would be curtailed, and as a final result there would be absolute confinement of the settlement to the present

area.

Such a future for the Shanghai of the present is not desired by the responsible Chinese classes, who now appreciate the benefit and utility of modern innovations and who are not only content but also eager to reside in sections under foreign control. The increase in population, as is evidenced by the recent census and by daily current observation, warrants proper extension of the settlement, and any restriction will work a hardship and do irreparable injury which will react upon the interests of all people. The settlement area is already crowded, the values of land have increased enormously, and apparently the only outlet for the city's natural and logical growth is toward the north and east, the sections which apparently the Chinese authorities are now determined to close against any species of foreign supervision.

We earnestly urge the consideration of this matter by the diplomatic body and hope that some arrangement or understanding can be reached by which Shanghai can be allowed to attain its manifest destiny-that of being a still greater treaty port, in which Chinese and foreigners can reside under a system of government mutually satisfactory to those whose best interests are involved. I have the honor, etc.,

Consul-General for Belgium and Senior Consul.

[Inclosure 2.]

The Assistant Secretary of State to Consul-General Rodgers.

DEPARTMENT OF STATE, Washington, June 29, 1906. SIR: I have to acknowledge the receipt of your dispatch, No. 160, of the 25th of May last, inclosing copy of a letter to be addressed by the senior consul of the consular body at Shanghai to the dean of the diplomatic corps at Peking, protesting against the restrictions threatened by the Chinese on the natural growth of the foreign settlement at Shanghai toward the north and east.

This proposed letter has the approval of the department, and the American minister at Peking will be instructed to support the request of the consular body unless he sees some serious objection.

I am, etc.,

ROBERT BACON, Assistant Secretary.

No. 371.]

Minister Rockhill to the Secretary of State.

AMERICAN LEGATION, Peking, China, August 9, 1906. SIR: I have the honor to acknowledge the receipt of your instruction No. 157 of June 30 last in reference to the restriction threatened by the Chinese on the natural growth of the international settlement at Shanghai, and directing me to support the protest of the consular body at Shanghai against the same.

This matter has been before the diplomatic body for nearly two months since the receipt by the dean of the letter addressed to him by the senior consul at Shanghai, a copy of which was transmitted to you by Mr. Rodgers.

My British colleague drew up a collective note to be sent to the Prince of Ch'ing by the diplomatic body, protesting against the threatened creation of a Chinese municipality on the north and east sides of the present international settlement. It has taken such a long time, however, to secure the appproval of this note by all the diplomatic representatives that my British colleague and I had decided, some days before the receipt of your instruction under acknowledgment, to address separate notes to the Prince of Ch'ing protesting against the threatened restrictions on the growth of the settlement. I inclose herewith a copy of the note which I sent under date of yesterday to the prince.

I believe that a collective note-substantially the one drafted by the British chargé d'affaires will shortly be sent to the Wai-wu Pu. I will transmit it to you at the earliest date.

I am sending a copy of my note to the Prince of Ch'ing to our consul-general at Shanghai for his information. I have the honor, etc.,

[Inclosure 1.]

W. W. ROCKHILL.

Minister Rockhill to the Prince of Ch'ing.

AUGUST 8, 1906.

YOUR IMPERIAL HIGHNESS: I am informed by the American consul-general at Shanghai that on the 4th of May last the taot'ai of that port addressed a note to the senior consul, in which he stated that the renting of land in the Paoshan district, just outside the boundaries of the international settlement at Shanghai, had been originally allowed by the viceroy at Nanking as a special favor and not as a treaty right, and that the present superintendent of trade for the south had now deputed Taot'ai Hsü Hai-ping to proceed to Shanghai for the purpose of making arrangements for the establishment of a Chinese commercial settlement and municipality at Cha-pei in the district named.

I have the honor to point out for the information of your imperial highness that the foreign residents of Shanghai have for many years past held leases of land in the Pao-shan district, which they acquired in the ordinary manner under the treaties, and not as a special favor. I need hardly remind your imperial highness that the treaties expressly provide that the extent of ground to be assigned to foreign residents at the open ports shall not be limited but shall be determined according to the need and convenience of the parties. The international settlement at Shanghai must be allowed room for its natural growth, and this growth must extend in the direction of the Pao-shan district. The foreign residents have already, with the consent of the Chinese authorities, expended large sums of money in building roads there, and in providing electric