340                         FOREIGN     RELATIONS.

                               fInclosure 2 in No. 802.1

Draught of an identical note to be sent by each consul to his ministerial
representative at
                                     Peking.
  SiP,: The probability of a war between China and Japan having of late attracted
much attention, and the possibility of such a contingency not having by any
means
passed over, it has occurred to myself and some of my colleagues to consider
what
would be the position of the foreign settlements of Shanghai in such an unfortunate
event, and how far it would be expedient to adopt such precautions as may
render that
position a comparatively safe one.
  It does not need any extraordinary foresight to predict that Shanghai,
#rom its im-
portance as a commercial center, and from its proximity to one of the few
arsenals
which China possesses, will become a focus of attack in case of hostilities
being de-
clared, and in that event the foreign settlements will at once be exposed
to extreme
danger, inasmuch as they stand (that portion called British more especially)
exactly in
a quarter where any outworks necessary to cover the city from hostile approach
by
the river must-be constructed. No move has as yet been made by the Chinese
toward
the utilization of this strategical position, but they may at any moment
see fit to oc-
cupy it; and should they do so, and hostilities supervene, the consequences
to neutral
life and property may be very serious.
  The conclusion appears to myself and colleagues obvious, that, if such
a sacrifice can
be in any way averted, no effort ought to be left untried to accomplish it
; and the
alternative we would venture to propose is, that advantage should be taken
of the
presence in Peking of a Japanese minister plenipotentiary to negotiate for
the neutral-
ization of the ground covered by the foreign settlements, and a stipulation
that noth-
ing shall be done on either side to endanger the safety of the residents
therein or of the
property in their keeping.
   The Taotai of this place, it is believed, will be quite willing to give
his consent to
this proposition, and I beg to submit it to your excellency, in conjunction
with such of
my colleagues as are.more directly interested, and each of whom has addressed
an
identical note to his minister, in the hope that the scheme may meet with
your favor-
able consideration.
  I may refer here to the twenty-sixth article of the United States treaty
with China,
which provides for the immunity of American commerce in case of war, and
to suggest
that such further negotiations may be undertaken with the Japanese as will
render
this provision operative as far as they "are concerned; and in this
connection it may be
mentioned that the Chinese are likely to obstruct the Woosung Bar in case
of war unless
some means are adopted to prevent them from taking this course.
  Various and serious questions, it must be confessed, will be involved in
the adoption
of the proposed measure, but as these must of necessity occur to your mind,
and their
discussion scarcely comes within my province, I prefer to submit the simple
proposition
free of all argument or remark. My colleagues agree with me that it is also
beyond our
province to propose that any arrangement arrived at will embrace all the
foreign set-
tlements in China and Japan, but it may not ber amiss to point out how obviously
de-
sirable such an extension would be.




                                    No. 168.

                       Mr. Seward to Mr. Cadtwalader.

No. 811.]                   UNITED STATES CONSULATE-GENERAL,
                   Shanghai, September 2,11874.      (Received October 12.)
   SIR: Referring to the matter of the arrest of General Le Gendre, at
Amoy, I have now to submit the following further information:
   After the consideration which I gave to the subject, as indicated in
my dispatch No. 797, it seemed to me that a prosecution of Le Gendre
before me under the neutrality act must fail.

   At this conjuncture I received a dispatch from         Dr. Williams, dated
July 31, a copy of which I inclose.
  Looking to the tenor of this letter I concluded that my wisest course