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September 10, 1898.J
Their acquaintance with the conditions in the Philippines and the Far East would have made them valuable assistants to the American repre- sentatives if not chosen as commissioners themselves. Major-General Otis will succeed Merritt as military governor and Brigadier General Andersen will take Otis' place as head of the army corps. General Otis is a very able man and is admirably suited for the position to which he succeeds. He is one of the best in- formed and most painstaking officers in the American army and has a brilliant record. Brigadier General Greene is also leaving, but he goes to America direct on the China and not via Europe. He will probably be succeeded in his labours by General Whittier, who is now acting as Collector of Port. General Babcock, the chief of Merritt's staff and Adjutant General, will remain here. This is fortunate as he is one of the best men that the United States sent to the Philippines and is well suited to his responsibilities.
All sorts of rumours are current about the insurgents and the plans and purposes of Aguinaldo, but the high American officials do not seem disturbed over the situation and appear to have matters well in hand. Manila is picking up in s business way most rapidly and the outlook is considered quite good. REPORTED PURCHASE OF PALAWAN AND SULU BY GERMANY.
SURREPTITIOUS INTRODUCTION OF ARMS INTO LUZON.
THE CUSTOMS QUESTION.
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CHINA OVERLAND TRADE REPORT.
in the South China Sea thus interposing herself | in a route which England wishes kept clear be. tween Singapore and Hongkong. No. Germany must not have them:
I have reason to believe that certain parties are selling arms to the natives which the latter may use to fight the Americans later on, and the most remarkable feature of this trade is that Americans are sending down these arms from Hongkong and China. Several men who are known to be engaged in this kind of doubtful work have just turned up in Manila and nobody seems to know just how they got down here. It would not be very far away from the truth if I said that a vessel had put into an outside port where she can unload the rifles, ammunition, and other guns without being discovered by the American authorities. From this landing point these gentlemon made their way into Manila, where they will watch the situation with a view to protecting their operations and mak- ing arrangements to bring more arms. The United States anthorities here and at other places will do well to keep their eyes open with extreme vigilance if they would prevent the natives from becoming equipped with sufficient weapons to carry on a protracted and severe guerilla warfare against either the United States or any other power that might be willed an interest in the Philippines. Arms will be brought surreptitiously to these islands in great numbers if the movement is not stopped at
once.
Aguinaldo is taking advantage of the present priod of "doing nothing" until the Paris conference reaches its conclusions to prepare for emergencies. I would not accuse him of Manila, 3rd September.
pursuing an unfair course, because I understand The chief topic of discussion in Manila that he has no regular agreement with General yesterday and to-day has been the report that Otis, but his plans to buy large quantities of Germany had purchased the large island of arms, as just described above, show that he is Palawan and all or part of the Sulu group from not sleeping. It may be impossible to prevent Spain, paying a price for that opportunity to
the insurgents from buying them if they get a get at the territorial pie which is acceptable to chance, but it is possible to stop Americans, both Spain and Germany. As this story was Englishmen, and Germans, who are anxious to also current in Hongkong and may be of interest make a dollar in any way open to them, from there I am able to state that the German Consul importing arms into the Philippines or that here, and the Captain of the Kaiserin Augusta, portion controlled by the United States. In before leaving yesterday for Hongkong, em-
short, it must be stopped, or trouble will result phatically denied the story. The Germ. greater than now anticipated. If the worning Consul declare that it could not be true.
of this letter leads to the desired result, He claimed that he knew nothing of it. The I shall feel that the columns of this paper hare Captain was no less earnest in his denials. If materially assisted foreign interests in the any other interpretation than the good faith of Philippines, If these natives once become these gentleman is to be given to their state-armed in great numbers foreigners will not be ments, it might be suggested that they pro- tested too much, but I have no reason to impute other than honourable motives to the Consul and Captain. While I am not per- sonally acquainted with them, I hear from excellent authority that they did not hesitate to deny plainly that Germany had bought Palawan or the Sulus. The Captain even went so far as to assert that Germany did not want Palawan at least if his recommendation was accepted his country would not have the Island. Here again it might be urged that it was diplomatic to speak against the island as helping to throw the United States and Eng. land off their guard at a critical time.
There are also both theoretical and practical reasons why this alarming report will probably lack accurate confirmation. Theoretically it is against the tenets of international law for one power to bay or take land from another when the latter is at war with a third or when the full negotiations which may involve the owner- ship of such land are not concluded. In other terms, Germany has no right to buy and Spain no right to sell one foot of the Philippines or outlying islands until all claims of the United States are settled. In one sense the United States has a first lien or mortgage on all of Spain's possessions until the peace treaty is signed and its conditions filled. Practically, the United States would not allow Spain to sell or Germany buy Palawan and the Sulus antil the United States have no further claim Spain's holdings, and would resist by force if necessary any attempt of Germany to occupy such islands without permission; but, as strong as is this reason, there is another of almost equal strength: England cannot consent to German occupation of Palawan and the Sulus because, first, Germany would be in a position of great strength to control England's approach to Aus- tralia from China and Hongkong, and, second, to hold a strategic port of invaluable importance
on
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safe in the interior and petty rebellious and outrages will prevail from one end of Luzon to the other. I dojnot wish to hurt the business of any firm engaged in legitimate trade, but I am confident that most men will agree with me that selling arms at the present time to the insurgents is certainly not legitimate.
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House together with the Captain of the Port. Before going any further, let me say that it is the particular intention of the Collector of Cus- toms, General Whittier, and the Captain of the Port, Captain Glass, to do all in their power to facilitate the import and export of goods and the movements of ships to and fro this harbour. It is unfortunate that certain interests in Hong- kong and other places, jumping too quickly at conclusions and not thinking of other than self- ish reasons, criticise the way things are done here. Were these same critics obliged to do the work themselves we venture to say that they would not do it half as wel! We heard recently that a "how! " had been raised in Hongkong and China ports because, first, Spanish duties on im. ports were continued and, second, American goods were not allowed to enter free of duty. If it is remembered that the first interests to be considered in all these matters are those of the merchants already here, the reasonableness of the arrangements will be understood. Supposing that the Spanish duties, on which basis all Eng- lish merchants here imported great quantities of goods, had been suddenly lessened, or that a great flood of American goods had been allowed in free, what would have e been the result? None other than that the large stock of imported goods on hand would have proved a heavy loss. They would have been sold either at no profit or, what is more prob- able, at a heavy loss. Such a condition would have seriously crippled if not ruined certain firms here. Direct supplies for the army and navy way, of course, come in free, but not those for general sale or consumption. It is true that many steamers were sent down here loaded with goods originally made in America and so mark- ed with the expectation that they would escapo the duty, but in more than one instance these were exports from the United States to China that had already been sold in China and hence had lost their name in Customs rating as strictly American products; and yet a determined effort was made to bring them into Manila as direct imports from the United States. All the English merchants here were united in opposing special discrimination and they succeeded. As- suredly the company which has been located here for 25 years has the right to consideration before the speculater who suddenly drops in and hopes to make a fortune at one turn of the wheel. It is not my purpose to editorialize on this subject, but simply to express the opini ous that prevail here. If, moreover, the uni- form Spanish duties had not been maintained, months would have been required in which to hare introduced successfully a new system.
In the light of conditions, the adoption of Spanish duties was the only thing possible. If the United States permanently oconpies the Philippines they will undoubtedly be changed By reference to section 360 under the and adapted to American and English ideas head of "Articles Prohibited" of the “Customs of doing business. A free port at the moment Tariff and Regulations for the Philippine is impossible. There is no provision for all the Islands" issued by the War Department at expenses that would arise. Simple military oc- Washington, it will be seen that the importa-cupation does not include the free conduct of tion of arms is plainly against the law, for it
the trade of a port. Were a general change says: "Arms of war, projectiles, and their effected at once, it could not be done reasonably ammunition, except with special consent of the and impartially and would completely upset the military authorities" are prohibited. While conditions of trade exchange. When a change there is not yet absolute authority that arms or reduction is attempted it must be done slowly are being smuggled into Luzon, the indications and skilfully by experts. Then, in addition to are so strong that the American anthorities all these reasons, there is no positive under. will not make a mistake in watching for them. standing as to what will be the future of the Philippines, and to change radically the duties without knowledge of the future would be ridiculous. As it is shippers and merchants are unanimous in saying that they never before succeeded in getting their custom house business attended to so expeditionsly as now. There is no Manana " in Manila except among the Spaniards and natives. With them it is still
Manana, Manana!"
By the phrase "doing nothing" used abore in referring to the present situation I mean rather a suspension of any acting movement on the part of either Americans er natives to take further steps for the conquest of Luzon. The status quo can be expected to last at least one mouth or one month and a half. During that time there will be little or no change in the administration of the local government. That is, things will go on as they are now going except that as time passes the wheels of govern. ment will run more smoothly and there will be less delay in getting the city into sach shape and condition that complaints and grumbling will give way to praise that the work is done so well under so many adverse influences. Already the English and German merchants are ex- pressing surprise that the American authorities have succeeded in cleaning the Angean stables of Spanish rule.
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We have had wonderful weather during the past ten days. The sea has been smooth as a floor the greater part of the time. This has facilitated the loading and loading of ships, Rains are needed and will be welcomed. The water-works are now in good condition and für- nishing a regular supply of water for the city. In a personal visit to the pumping head quar- ters at San Olan, the reservoirs at San Juan del Monte, and along the line of the aqueduot and pipe, I was impressed with what a splendid
The great point of administration which in-system Manila has for supplying water." terests the exporters and merchants of Hong. far better, greater, more costly, and better kong. Singapore, and Shanghai is the Custom than I would expect to find here.
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