Inclosure 2 in No. 1.
Sir E. Satow to Consul-General Wilkinson.
(No. 8.) Sir,
Peking, July 25, 1904. IN reply to the inquiry contained in your despatch No. 15 of the 31st May last, relative to the construction to be placed on the instructions which, by Lord Lansdowne's direction, I addressed to you in my despatch No. 2 of the 10th March last, relative to the maintenance of the right to sell goods at places short of the destination designated on the transit pass, I beg to inform you that in my opinion such a right should be limited to the sale of goods at places on a direct and recognized route between the port of entry and the destination marked on the pass.
It is true that a construction in a wider sense can be put on the words used by the China Association in their letter to the Foreign Office, but it would be unreasonable to demand the right to "diverge" at will, for should such a right be carried to its fullest extent, the verification of transit passes would become impossible.
I have to request you to communicate a copy of this despatch to Mr. Litton.
I am, &c. (Signed) ERNEST SATOW.
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18-5 14 OCT 04
(Subject.)
DOMESTIC.
Chinese Emigration to Peru.
(Minutes.)