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In these circumstances I have found it impossible to give to my Portuguese colleague the full measure of assistance which he desired.

I should add that I have arranged with my Japanese colleague that any British claims arising out of the retention of the ship should be communicated by His Majesty's Consul-General at Canton to the Japanese Consul there, so that they may be included in the amount to be paid by the Chinese Government.

I have, &c.

(Signed)

J. N. JORDAN,

P.S.—Since the above was written I have received a letter (copy inclosed) from the Japanese Minister, conveying the thanks of his Government for our good offices in the matter.

J. N. J.

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Inclosure 3 in No. 1.

Baron Hayashi to Sir J. Jordan.

Dear Sir John,

Japanese Legation, China, March 17, 1908.

I AM happy to convey to you, under instruction, my Government's expression of thanks for your good offices which you were kind enough to render in bringing the question of the "Tatsu Maru" to a satisfactory conclusion.

Yours sincerely,

(Signed) E. HAYASHI.

Inclosure 1 in No. 1.

Liang Ta-jén to Sir J. Jordan.

(Private.)

Dear Sir John,

Wai-wu Pu, Peking, March 13, 1908.

THANKS to your efforts in the "Tatsu Maru" case, the Japanese Minister handed us a Memorandum to-day which will probably lead to a satisfactory settlement of the case in a day or two. The Japanese conditions are as follows:—

1. To salute the flag in presence of the Japanese Consul at the place of the release of the ship. But they do not demand the severe punishment of the senior Chinese officer, China can do what she thinks fit.

2. To release the ship unconditionally.

3. Since China is anxious to prevent the importation of arms into Macao, the Japanese Government will assist us in the matter, and China can buy the arms for 21,400 yen.

4. China promises to punish the responsible officer for the seizure.

5. China promises to pay the actual amount of losses incurred by the seizure of the ship. The Japanese Government will inform the Chinese Government, after careful inquiry into the matter, of the exact actual amount.

Finally, the Japanese Government declares separately to the Chinese Government, apart from this case, that she will prohibit the importation of arms into China.

The above is a rough translation of the Japanese Memorandum.

Since you have been good enough to interest yourself in the case on our behalf, I thought I ought to inform you.

Yours, &c.

(Signed) LIANG TA-JÊN.

(Telegraphic.)

P.

Inclosure 2 in No. 1.

Admiral Sir A. Moore to Sir J. Jordan.

Hong Kong, March 13, 1908.

ON the occasion of my farewell call on the Viceroy of Canton, his Excellency fully discussed the "Tatsu Maru" case, and requested my good offices, urging that his efforts for the suppression of piracy which he was loyally carrying out at our instigation were frustrated by the illegal importation of arms. I undertook to acquaint our Minister with his views, with which I sympathized.

I think the Viceroy of Canton should be supported in his endeavours to prevent these illegalities, as it is a matter of common knowledge that arms are smuggled through Macao.

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