Wells Williams to His Imperial Highness Prince Kung, February 17, 1868

Mr. Williams to Prince Kung

Sir: I have the honor to acknowledge the receipt of two dispatches from your Imperial Highness of the 7th ultimo, both relating to proceedings in cases of confiscation by the customs.

One of them contains a draught of a regulation defining the mode of procedure to be followed in cases of fines whenever the consul and collector of customs cannot agree in their decision, proposing that then the merchant should give a bond, sealed with the consular seal, which is to be deposited with the collector, and that his goods or vessel should then be released to him until the appeal to the higher authorities at Peking has been made; when if they decided that no fine was to be paid, the collector should return the bond: concluding with the request that this regulation should be made known to the American merchants for their observance at each port.

The other dispatch contained a second request that the four rules for joint action in confiscation cases, which have been in operation at Shanghai for a year, should now be extended to all the open ports for trial another year, and asking that a reply be given whether the necessary orders had been given to this end. In respect to the subject-matter of these two dispatches, it appears to me that the proposed rule merely requiring a merchant to give a bond to pay the amount of the fine, and then releasing his vessel or goods, is like to be very advantageous to him, while it will not work any detriment to the customs revenue; and I have therefore no objection to enjoin it upon the United States consuls as a rule to be observed. But in the operation of the other four rules I have heard during the past few years that there has occasionally been some differences of opinion between the consuls of the United States and the commissioners of customs at the ports, upon points of etiquette and rank, making it desirable that an additional rule regulating the standing of these two classes of officials be established, and providing that the intercourse between them be conducted in a harmonious manner and to the furtherance of the public business.

In the dispatch under reply, your Imperial Highness requests a reply stating my action as to enjoining the observance of the four former rules agreed upon in the year 1865 by the merchants at the other ports. I beg to observe respecting them, that they refer only to cases of confiscation of vessels and merchandise, stipulating that whenever a vessel or merchandise has been seized, before the confiscation can be carried into effect the case must be examined by the consul; and if he and the collector disagree, the merchant must give a bond to the latter to await the decision of the superior authorities, and meanwhile his property need not be detained. It seems desirable, in addition to this, that another rule should be prepared giving directions in cases of fines, and the mode of procedure when the consul and commissioner do not agree as to the amount of the fine. In such cases it will be convenient if the merchant can also be allowed to give a bond for the amount, in order to release his property from detention and not lose its use. It must constantly be borne in mind that the power to levy fines upon American, citizens belongs alone to the United States consuls; and that when the case has been tried, and the money paid to him, he then will pay it to the collector of customs.

This mode of procedure in cases of fine for breach of regulations being similar to that in cases of confiscation, no impediment or hinderance is likely to arise in carrying it into effect. I have therefore prepared a draught of three additional rules, which I inclose for the examination of your Imperial Highness, and on receiving a reply I will inform the consuls at all the ports of the seven regulations which are to be observed as rules of procedure in cases of confiscation and fines by the customs.

I avail myself of this occasion to renew the assurance of the respect with which I am your Imperial Highness’s obedient servant,