Frederick F. Low to Prince Kung, June 28, 1872

Mr. Low to Prince Kung.

Sir: I have had the honor to receive from their excellencies the ministers of the yamên a note, informing me that the case of transshipment of shell to Japan by the China and Japan Trading Company has been decided; that the company is released from all responsibility, and that orders have been given to cancel the bond.

This case, the ministers say, is exceptional, and cannot be considered a precedent; and it is announced that after a certain date, hereafter to be named, all munitions of war brought within the limits of any of the ports, whether for sale or transshipment to a foreign country, will be confiscated.

In reply, I have the honor to inform your imperial highness that the adjustment of the particular case in question in accordance with the principles of justice and equity, and, as I believe, according to the letter and spirit of the treaties, is highly satisfactory.

I cannot, however, concur in the yamên’s construction of rule 3, of the supplementary treaty of 1858, that goods brought into a port for the purpose of transshipment to a foreign country can be considered either an “import” or an “export” in any proper sense.

In view of this, I do not feel at liberty to advise my countrymen that it will be their duty to conform to the notification indicated in their excellencies’ note so far as the transshipment of contraband goods is concerned. If such goods should be brought into the ports by American merchants, with no intent to land or sell them in China, and an attempt be made to confiscate them, I should feel bound to protest against such proceedings.

But while firmly insisting upon the right of transshipment, no objection will be offered to the adoption and enforcement of rules which would absolutely secure the government against fraud. In foreign countries it is usual in such cases to demand a bond of the owner of the goods equal in amount to their fall value, conditioned that he will produce a certificate from the authorities of the port to which they are destined, showing that they have been regularly landed there.

Upon the production of such certificate within a certain time named, the bond will be cancelled, otherwise it will be enforced. Such a regulation, if adopted at the ports, would secure the government against fraud, nor would it prove a hardship to the honest merchant.

In view of these considerations I have most respectfully to request that your imperial highness and their excellencies the ministers of the yamèn will carefully reconsider this whole question, in the hope and confident expectation that a solution, more in accordance with the spirit of the treaty and principles of justice than the one proposed in the yam en’s note, will he found.

With, &c.,