Mr. Jernigan to Mr. Denby. AUGUST 25, 1894. Arrested on concession, peacefully and openly engaged away from seat of war; not a Japanese soldier on Chinese soil at the time. Mere schoolboys. China can well afford to have us keep them secure. JERNIGAN. Mr. Jernigan to Mr. Denby. AUGUST 27, 1894. Cable Gresham asylum only granted. Suspected have resided here three years as students. Are boys. Are boys. Papers in their possession such as intelligent students might prepare for personal information. Suggest American consuls act as arbitrators. Mr. Denby to Mr. Jernigan. Cabled Gresham fully. Your report not yet received. JERNIGAN. AUGUST 27, 1894. Department instructs me that you had no power to receive, and are not authorized to hold, the alleged spies. Deliver to Taotai. DENBY. Mr. Jernigan to Mr. Denby. SEPTEMBER 3, 1894. Alleged spies delivered to-day, as instructed. not important now. You seem not to understand position here. JERNIGAN. [Inclosure 3.] Mr. Jernigan to Mr. Denby. SEPTEMBER 1, 1894. SIR: I have the honor to verify the following telegram sent you in cipher on the 1st: DENBY, Peking: Seven Japanese students suspected; effects secretary present. Nothing suspicious found. class of students residing here several years. students would have. Believe them innocent. searched in my presence. Taotai's Gone to Japan. Alleged spies same Their papers only such as intelligent Try to arrange for their deportation. JERNIGAN. For two or three years there have been a number of Japanese youths attending school at Shanghai, and, to avoid the curious, it has been their custom to dress in Chinese clothes. No When war was declared this custom was not changed, and this is the ground of suspicion against these young men. Learning that I had advised them to return to Japan to avoid trouble, the Taotai sent his secretary to me with the request that their baggage be examined. charge had been preferred, but, having in view the interest of the young men alleged to be spies, members of the same school, and believing that a failure to find anything suspicious would greatly tend to their acquittal, I took the chances and assented. The examination could not hurt the young men owning the baggage, for they had gone to Japan, leaving a friend to superintend the shipping of their baggage. This friend was present at the examination with my marshal. The result of the examination was a complete vindication of the students from all suspicion, and some of their papers were similar to the papers found with the effects of the alleged spies, and were nothing more than notes taken on geographical subjects. I do not think the two now suspected are spies. Even if a reasonable suspicion attached, it would be cruel to behead mere boys for indiscretions which may have been committed in furtherance of their educational plans. I am interested in their case, because I feel that to deliver them to a native court may be to deliver them to death, and this would lead to retaliation. The barbarous proclamation of the governor of Formosa shocks civilization throughout the world, and it yet remains for China to disavow the prize money rescript for heads and ships issued here by a subordi nate officer of her arsenal. When the barbarities and cruelties of the dark ages are sought to be utilized in modern warfare, it becomes the humane and patriotic of all climes and races to effectually protest. I am, etc., THOMAS R. JERNIGAN, Mr. Gresham to Mr. Denby, chargé. DEPARTMENT OF STATE, SIR: Referring to my instructions of the 29th ultimo, in relation to the exercise by our diplomatic and consular representatives in China of good offices in behalf of Japanese subjects in that country, I inclose herewith for your information a copy of an imperial ordinance promulgated at Tokyo on the 4th of August last, touching the status of Chinese subjects in Japan. By the treaty between China and Japan, signed at Tientsin September 13, 1871, it is provided in article 13, which relates to the trial and punishment of offenses committed in the jurisdiction of one of the contracting parties by subjects of the other, that "when arrested and brought up for trial, the offender, if at a port, shall be tried by the local authority and the consul together. In the interior he shall be tried and dealt with by the local authority, who will officially communicate the facts of the case to the consul." The treaties between China and Japan being abrogated by the state. of war now existing between the two countries, the consuls of the one country no longer exercise the powers and the qualified jurisdictional intervention with which they were invested by the treaties in the territory of the other in time of peace. The Japanese Government, therefore, in the first article of the imperial ordinance, declares that Chinese subjects in Japan shall be wholly subject to the jurisdiction of the Japanese courts. The abrogation of the treaties is necessarily attended with the same effect upon the status of Japanese subjects in China as upon that of Chinese subjects in Japan; and this Government, as has heretofore been stated, can not invest Japanese subjects in China, or Chinese subjects in Japan, with an extraterritoriality which they do not possess as the subjects of their own sovereign. The good offices, however, which this Government has granted are to be exercised on all proper occasions and to the full extent allowed by international law. I am, etc., W. Q. GRESHAM. [Inclosure. The Japan Daily Mail.-Yokohama, Thursday, August 9, 1894.] Imperial ordinance. We publish below an authorized translation of the important imperial ordinance of the 4th instant. We hereby sanction the present regulations relating to Chinese subjects residing in Japan, and order the same to be promulgated. (Privy seal.) The 4th day, the 8th month, the 27th year of Meiji. (Countersigned) (H. I. M.'s Sign Manual.) Count ITO HIROBUMI, Minister President of State. Count INOUYE KAORU, Minister of State for Home Affairs. Minister of State for Foreign Affairs. Minister of State for Justice. Imperial ordinance, No. 137. ART. 1. Chinese subjects are authorized, subject to the provisions of this ordinance, to continue to reside in those places in Japan where they have hitherto been permitted to reside and there to engage in all peaceful and lawful occupations with due protection of life and property, and subject to the jurisdiction of Japanese courts. ART. 2. Chinese subjects residing in Japan in accordance with the preceding article shall, within twenty days after the promulgation of this ordinance, apply to the governor of the prefecture where they reside to register their residences, occupations, and names. ART. 3. Certificates of registration will be issued by the governors of prefectures to Chinese subjects who register themselves in pursuance of the preceding article. ART. 4. Chinese subjects who register themselves according to article 2 shall be entitled to change their places of residence, provided they obtain from the governor of the prefecture where they are registered visés upon the certificates of registration and apply to the gov ernor of the prefecture of their new residence within three days after arrival to be reregistered as prescribed by article 2. ART. 5. The governors of prefectures may expel from the territories of Japan Chinese subjects who fail to register themselves as required by this ordinance. ART. 6. Chinese subjects who injure the interests of Japan, commit offenses, or disturb order, or are suspected of any of the above acts, shall, in addition to the penalties denounced for such acts, be liable to expulsion by the governors of prefectures from the territories of Japan. ART. 7. The present ordinance applies to Chinese subjects employed by the Japanese Government or subjects. ART. 8. The present ordinance does not affect the orders and measures of the imperial military authorities which may be issued against Chinese subjects residing in Japan in connection with warlike matters. ART. 9. Permissions to Chinese subjects to enter the territories of Japan after the promulgation of this ordinance shall be limited to those specially granted by the minister of home affairs through governors of prefectures. ART. 10. The present ordinance shall be enforced from the date of promulgation. SIR: Mr. Jernigan to Mr. Uhl. [Extract.] U. S. CONSULATE-GENERAL, Shanghai, October 9, 1894. (Received November 13.) The two alleged Japanese spies are alive, and have all they need to eat and drink. Many of the reports in the home papers about them are so false as to be past finding out. I am, etc., T. R. JERNIGAN. Mr. Gresham to Mr. Denby, chargé. DEPARTMENT OF STATE, Washington, October 20, 1894. SIR: I should have informed you earlier that before the instruction was sent to you directing that the two alleged Japanese spies at Shanghai be turned over to the Chinese authorities the Chinese minister at this capital gave me his positive assurance that they should be detained by his Government and not punished or otherwise dealt with until the arrival of Minister Denby at Peking. The minister has twice called at the Department and assured me that the reports in the American papers to the effect that the two alleged spies had been beheaded by the Chinese Government were untrue. I am, sir, etc., W. Q. GRESHAM. Mr. Denby, chargé, to Mr. Gresham. LEGATION OF THE UNITED STATES, Peking, October 22, 1894. (Received December 3.) SIR: I regret to have to report that the two Japanese who were arrested in the French concession at Shanghai during the month of August, and subsequently delivered by the consul-general of the United States to the Chinese authorities, were decapitated at Nanking on the 8th instant. It is not known what proof of guilt was brought against them, nor what was the result of the repeated examinations to which they were subjected. The Yamên declined to accede to my informal request for information on the subject. I have, etc., CHARLES DENBY, JR. Mr. Gresham to Mr. Denby, chargé. DEPARTMENT OF STATE, SIR: I have received your dispatches of August 8, 14, 27, and of the 4th ultimo, all relating to the presence of alleged Japanese spies in China and the proposed treatment of them by the Chinese Government. While your request to the Tsung-li-Yamên that Japanese suspects should not be subjected to harsh treatment is approved, the Department is unable to concur in your recommendation that Japanese convicted of having acted as spies in China should simply be deported. It would seem to be expecting too much that China should so limit the punishment for an offense of this character. I am, etc., W. Q. GRESHAM. Mr. Gresham to Mr. Denby, chargé. DEPARTMENT OF STATE, Washington, October 30, 1894. SIR: I have to acknowledge the receipt of dispatch of the 1st of September, from our chargé at Peking, in relation to the delivery of |