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On July 14 the consuls of the powers (England, France, Italy, and Russia) issued a proclamation, announcing that under existing conditions no change could be made in the political status of the island. Both Cretans and Greeks refused to consider this as final, as it was known that the powers were to make a formal reply based on the report of the commission sent to Crete last winter to inquire into the condition of the island after the revolution of the preceding summer.

For some unknown reason the opinion became general that the powers were going to grant great concessions, and perhaps even allow the long-desired union of Crete and Greece.

The reply of the powers was made public on the 26th instant, and caused the deepest disappointment and indignation against the powers. As will be seen from the inclosed translation of the reply, while some concessions are made as to internal affairs, the powers refuse to consider the matter of changing the political status of the island. The most important point is the gradual withdrawal of the international troops and the formation of a mixed Greek and Cretan gendarmery and militia. Also an attempt is to be made to put the finances of Crete in a more satisfactory condition by extending to the island the Greek international financial control.

The representatives of the four protecting powers at Athens were received in audience by the King on Tuesday last and presented him with a copy of the reply which had been sent by them to the Cretan assembly through the high commissioner, Prince George.

Prince George has not yet communicated the reply to the Cretan assembly, but will probably do so next week, and it seems to be generally expected that it will be rejected in toto by that body. What the next move of the protecting powers will then be is not yet known. I have, etc.,

CHARLES S. WILSON.

[Inclosure. Translation.]

Reply of the protecting powers.

1. The protecting powers have examined in a most benevolent spirit the conclusions of the delegates sent by them to Crete as a result of the troubles of 1905, and at the moment of the session of the National Assembly, recently elected, they wish to show to the Cretan people the interest they have in them, and at the same time of their sincere desire to take into account, so far as is possible, its legitimate aspirations.

2. Relying on the proposals of their delegates, the powers judge it possible to enlarge, in a national sense, the autonomy of the island, and to make certain dispositions of a nature to improve the material and moral condition of the island.

3. They have therefore agreed upon the following measures:

4. To take up without delay the matter of the reform of the gendarmerie, and the creation of a militia in which the Greek and Cretan elements may be developed gradually; on the condition, however, that the Greek officers shall not be active members of the Greek army at the same time.

The withdrawal of the international forces as soon as the Cretan militia and gendarmerie shall be formed and placed under the command of the high commissioner, and that order and tranquillity shall be reestablished and that the protection of the Mussulman population shall be assured.

5. Prolongation of the customs overtax of 3 per cent, in order to enable the conclusion, with the necessary guaranties, of a loan of 9,300,000 francs, 3,000,000 of which shall serve for the immediate payment of indemnities to Cretans and Greeks, and the balance to be reserved for public works.

6. The extension to Crete of the commission of control of Greek finances and the appointment of an official (foreign) who shall create a service for the inspection of the finances and report annually to the chomber.

7. The recommendation to the consuls-general to address themselves for current business to the responsible advisers of the Cretan Government, whose administrative authority will thus be increased, while all cause of irritation of a nature to injure the prestige of Prince George will thus be avoided.

8. The postponement until 1911 of the payment of interest and principal on the advance of 4,000,000 franes permitted by the protecting powers.

9. To send instructions to the ambassadors at Constantinople to regulate the existing questions with Turkey, such as that concerning the Cretan flag, judicial acts, Cretans held in Turkish prisons, light-house dues, telegraph rates, the appointment of Cadis, and the protection of Cretans abroad and in Turkey.

11. Treatment on a footing of absolute equality of the elements, Mussulman and Christian, in the exercise of public functions. The organization of the demogeronties and the regulation of the action of the mutevelis. The formation of a mixed commission, half consular, half Cretan, to examine into the question of the dispossession of mosques, lands, cemeteries, etc., committed to the injury of Mussulman bodies.

On the other hand, the protecting powers judge it indispensable that the National Cretan Assembly should revise certain articles of the constitution in order to carry out the proposed reforms in the interest of the island, and on the following points:

Organization of the militia, annual sessions and budgets, creation of an organ of financial control, guaranties for the recruiting and stability of officials.

12. In informing the Cretan people of these decisions the protecting powers do not doubt but that the Cretans will take into account that every step forward in the realization of their national aspirations is subordinate to the establishment and maintenance of order and to the establishment of a stable régime.

No. 355.]

GUATEMALA AND HONDURAS.

PROTECTION OF CHINESE IN GUATEMALA.

Minister Combs to the Secretary of State.

AMERICAN LEGATION, Guatemala City, February 10, 1906.

SIR: I have the honor to report some difficulties the Chinese in this country are experiencing.

In 1897 a decree was issued requiring all Chinese in the country to register and take out residential permits, and forbidding any further immigration into the country by these people.

On January 24, 1906, an order was promulgated requiring all Chinese to appear before the jefe of the Department of their residence at 11 o'clock, the 5th of February, and to present their residential permits. The Chinese were much disturbed, as they stated many would have to leave their shops several days in a condition inviting robbery; and as afterwards appeared, many were really in the country contrary to its laws. They appealed to me on the 3rd of February to secure an amendment that would give them two days for appearance, so that part could protect their property while the others reported themselves.

I immediately called on Mr. Barrios, who stated that great complaint had been made of the Chinese competition in trade, and it was charged that there were great numbers of them in the country contrary to law; that there was such racial similarity it was feared different individuals would present at different times the same papers and therefore the plan to have all appear at once was felt to be important, but to my suggestion that care be taken to inflict as little hardship as possible upon those who were regularly matriculated in the country, Minister Barrios stated he would immediately telegraph all jefes to effect the purposes in view with as little inconvenience to the Chinese as possible.

There were registered, under the decree of 1897, 604 Chinese. On the 5th instant about 540 presented themselves to the jefes, and of these about 60 are reported without papers, with other departments not heard from that will probably bring the number of 90 to 100. It has been indicated that these will be deported at the end of ten days, but I have been assured by the Government that additional time will be given them to dispose of their property without loss, if necessary, and in case some more satisfactory arrangement is not effected. From this expression I am inclined to think that these people will be able to arrive at some compromise, and have advised them that since they had come into the country in violation of law it was at their own risk, and any arrangement looking to remaining here must be made by themselves. I think they understand the situation.

I have stated to this Government and to the Chinese colony that I did not feel justified in doing more in this matter than to present unofficially the arguments of the Chinese in their own behalf and solicit a considerate course in the enforcement of the law for deportation, if it was finally determined upon.

I will report further occurrences as they transpire.

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SIR: I have the honor to forward a copy of a telegram from Kensett Champney & Co., complaining of the unlawful drafting of their colonists for government use.

I made immediate representations to Mr. Barrios, with a resulting promise that the grounds for complaint should not recur. I inclose copy of Mr. Barrios's note to that effect.

I have, etc.,

[Inclosure 1.--Telegram.]

LESLIE COMBS.

Kensett Champney & Co. to Minister Combs.

SENAHÚ, May 5, 1906.

Besides the colonists that they have already taken away from us for the work on the Northern Railroad, they continue demanding others.

KENSETT CHAMPNEY & Co.

[Inclosure 2.-Memorandum.]

The Minister of Foreign Affairs to Minister Combs.

The secretary of state and of the department for foreign affairs of the republic of Guatemala has the honor to salute his excellency Mr. Minister Plenipotentiary of the United States of America and returns the telegrams of Messrs. Kensett Champney & Co., which to-day he has transcribed to the minister of public works, begging him that they be no further molested in the matter of laborers.

Juan Barrios M. avails himself of this opportunity to renew to Mr. Combs, etc.

MAY 7, 1906.

No. 384.]

Minister Combs to the Secretary of State.

AMERICAN LEGATION, Guatemala, May 19, 1906. SIR: I have the honor to transmit copies of a letter from Messrs. Kensett Champney & Co., which describes very clearly the labor troubles they are experiencing, of my note to Mr. Barrios transmitting a copy of this letter, and his answer.

I settled these difficulties several times, but as this correspondence discloses they recur. I have intimated to Mr. Barrios, as you will observe in my last note, that an illegal interference with labor might lead to claims against his Government.

I trust that they will take warning and put an end to this form of annoyance.

I have, etc.,

LESLIE COMBS.

[Inclosure 1.]

Kensett Champney & Co. to Minister Combs.

SEPACUITÉ, May 5, 1906.

SIR: You know that we have been troubled for a long time by the local authorities catching our Indian tenants for work of the Northern Railway. Mr. Brown, when he was with us some time ago, told us that you had already asked the authorities in Guatemala to put an end to this vexation, and we are greatly obliged to you.

We are very sorry to have to say, however, that the vexations went on as before and still go on. We wired you on the 14th of April that men of ours were seized in Senahú the day before and put in jail to be sent to the railway. A day or two later we wired you that the same thing had been done in Cahabin. Senahú and Cahabin are the two towns which have jurisdiction in our lands. The men were locked up for several days before being marched to the railway, and we wired you on the chance of there being time to get an order back to loose them. The men had to go; but we are glad to hear that our wires reached you, and we appreciate your kindness in seeing Mr. Barrios and getting his undertaking to give the matter his prompt attention.

We are now afraid that he is not very prompt. We inclose you a warrant that came from Senahú, dated the 1st of May, and signed by the alcalde de la Cruz. This warrant, you will see, does not stop at demanding men from us for the railway, but authorizes the bearer to trespass and seize the men wherever they may be in our land.

We refused, of course, to consider the order, and on the 4th, as a consequence, we had notice to appear at the jefatura política in Coban, two days' journey from here. Of this notice (antedated May 1) we can only inclose you a copy. The notice reads as a circular to various plantations, ours included, but it is directed only to us.

It was made out as a circular, apparently, so that it might not remain in our hands. In view of these orders it was plain that nothing was being done for us from Guatemala, that in fact things were looking worse for us; and we wired you yesterday, the 5th."

We hope that you will state our grievances again, and that tangible results will follow. We simply want to see that we are let alone at our own business. We are planting coffee; we are not building railways; we have nothing to do with the Northern Railway Company. They are a private concern, like our own, and no matter what public or private influence they may enjoy, we have no notion of doing other people's work gratis with the very laborers that we have lawfully paid and contracted for our own work. The United Fruit Company might as reasonably ask us to plant bananas for them.

We have no men to spare; quite to the contrary. Mr. Barrios is from the Alta Vera Paz and should understand perfectly the state of things here. The plantations are not worked as they are in the Pacific coast, by gangs of Indians from the other provinces.

They are worked by tenants of the land, and if tenants are taken off we have no way of making up the lost work. And the loss is no trifle. When a man is taken for the railway it means, with going and coming, a loss of six weeks to begin with. But it mostly means more. It is very likely to mean six months lost, and often it means a dead Indian. You see the man comes back sick. It is next to impossible for Indians of this climate to cross the Polichic Valley without getting fever-a bad sort of fever, and apt to be rapid. A week or so after a man is back we ask for him and learn that he is buried.

a Telegram printed ante.

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