William H. Seward to Prince Kung, May 16, 1878

Mr. Seward to Prince Kung.

Sir: I have had the honor to receive your imperial highness’s dispatch of the 15th ultimo, in response to my communication, ‘having regard to the issue of transit passes to an American merchant at Hankow to enable him to export native produce from Szchuen.

Your imperial highness states that you learn from the northern and southern superintendents of foreign trade that it is proposed by the intendants at Ichang and Hankow that the first-named intendant shall issue transit forms in blank and deposit them at Hankow. Whenever a merchant provided with one of these forms arrives at Ichang with native produce, the Ichang customs will examine the goods as to quality, weight, &c., and affix upon the packages the stamps of the Ichang customs. The amount of regular and transit duties will also be determined, and a transit certificate given, permitting the exporter to take his merchandise to Hankow, at which place the customs will collect the dues. For the time being, because there are no American merchants, and no steamers at Ichang, this procedure will be satisfactory, but will be terminated when merchants establish themselves and steamers appear at Ichang. Your imperial highness states your approval of this proposal, &c.

I beg leave to say in response that the procedure suggested appears to be satisfactory, and I have instructed the consul at Hankow to inform the merchants at that port.

I have, &c.,