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industrial, which he can best obtain from the Treasury and Agricultural Departments, with which I will thank you to put him in communication.

I have, etc.,

ETHAN A. HITCHCOCK.

No. 26.]

Mr. Sherman to Mr. Hitchcock.

DEPARTMENT OF STATE,

Washington, March 25, 1898.

SIR: Referring to your No. 48, of the 1st instant, concerning the proposed visit of Mr. Hans Schack to this country in the interests of direct trade with Russia, I have to say that the Secretary of the Treas ury states that he will be pleased to furnish Mr. Schack with statistics and information bearing upon the purpose of his visit.

Respectfully, yours,

Mr. Hitchcock to Mr. Hay.

JOHN SHERMAN.

No. 165.]

EMBASSY OF THE UNITED STATES,
St. Petersburg, October 10, 1898.

SIR: Referring to my No. 48, of March 1, 1898, to Mr. Sherman, I have the honor to hand you herewith copy of a letter from our consul, Hon. N. P. Bornholdt, dated Riga, October 8, by which you will note that preliminary arrangements have been made by him with the United Steamship Company of Copenhagen for a line of steamers carrying the Danish flag to run direct from St. Petersburg and Riga to New York and vice versa.

You will note by Mr. Bornholdt's letter that the permanency of the arrangement will depend upon the volume of tonnage furnished by shippers, and in view of the great importance of thus maintaining direct communication between our country and Russia, I respectfully suggest that the inauguration of the new enterprise be given such publicity as will secure for its promoters a paying compensation for the risk they thus assume in affording our merchants and manufacturers a most favorable opportunity of increasing their trade with Russia.

I have requested Mr. Bornholdt to furnish me with full particulars with respect to the names, number, and tonnage of steamers that will be engaged in this trade, together with the dates of sailing, and will furnish the Department with such information as soon as secured from him.

I have, etc.,

ETHAN A. HITCHCOCK.

[Inclosure.]

Mr. Bornholdt to Mr. Hitchcock.

UNITED STATES CONSULATE,
Riga, October 8, 1898.

SIR: I have the honor to refer to my conversation with you some time ago regarding the establishment of a line of steamers running direct between Russia and the United States, and have now much pleasure in informing you that I have

made arrangements with the United Steamship Company of Copenhagen, who possesses a large fleet of steamers, to take this line up. The steamers, carrying the Danish flag, now intend to make trial and run from St. Petersburg and Riga and New York, and I am certain that this will tend to increase the trade between the two countries.

The advantage to the importers in the United States of a direct line, which has not hitherto existed, would be cheaper freights and better handling of the goods as the transshipment is avoided, and is to be hoped that there will be sufficient goods to make the trial successful and induce the company to continue to run the line regularly.

I have to-day reported the above to Consul-General Holloway and called his attention to the opening of this new line.

I have, etc.,

N. P. BORNHOLDT, Consul.

No. 190.]

Mr. Peirce to Mr. Hay.

EMRASSY OF THE UNITED STATES, St. Petersburg, November 23, 1898. SIR: Referring to the ambassador's No. 48, of March 1, I have the honor to inclose herewith copy of a letter of November 15 from Mr. N. P. Bornholdt, United States consul at Riga, relating to the line of steamships established by the United Steamship Company of Copenhagen, to run between Russian Baltic ports and America.

The representative of the line, Mr. Hans Schack, called upon me a few days ago and informed me that the United Steamship Company had purchased the Thingvalla Line in order to secure port facilities at New York, and will operate that line upon the route between the Russian Baltic ports, including the ports of Finland, and New York and Boston. The ships of the Thingvalla Line are old, but it is the intention of the new owners to replace them by six new ships, of which they will themselves build or cause to be built three, and they hope to find American capital to build the other three.

The company seems to be satisfied that the enterprise will be profitable, and they already find ample freight from the United States to justify their hopes. The difficulty is to secure freights from Russia, but failing this they expect to make up their cargoes from Sweden and Denmark. I have in this connection suggested to Mr. Schack that he look into the question of Russian fancy marbles, which are said to be very beautiful and which might find a market in America. This would be an extremely advantageous article of freight, as it would afford ballast, and Russia being at the terminus of the route, would enable them to load other lighter goods in Sweden and Denmark, if full cargoes can not be obtained in Russia.

A good deal of cement is produced in Russia, and the price of it is said to be low; but how the quality compares with that which comes to our markets from elsewhere, and how far it could stand the added cost of transportation, I do not know.

The principal staples which formerly constituted the bulk of the export of Russia to the United States, namely: Russia sheet iron, crash, bristles, hemp, flax, and Russia leather, have greatly fallen off owing in part, doubtless, to their production in the United States.

I have, etc.,

HERBERT H. D. PEIRCE,
Chargé d'Affaires ad interim.

FR 99-38

[Inclosure.]

Mr. Bornholdt to Mr. Peirce.

UNITED STATES CONSULATE,
Riga, November 15, 1898.

SIR: I have the honor to inform you that the Georgios I, belonging to the United Steamship Company. of Copenhagen, was dispatched from here to Boston, Mass., and New York, on Tuesday. the 8th instant. as first steamer of the new line between the Russian Baltic ports and the United States.

The second sailing is intended to take place about the end of this or beginning of next month, if sufficient cargo turns up. and for that trip the steamer Alexandra, belonging to the same company, has been taken in view.

I have, etc.,

N. P. BORNHOLT, Consul.

NEGOTIATIONS FOR AN AMERICAN EXPOSITION IN RUSSIA.

No. 238.]

Mr. Hitchcock to Mr. Hay.

EMBASSY OF THE UNITED STATES,

St. Petersburg, January 21, 1899. SIR: I have the honor to inclose herewith copy of a note which I have addressed to Count Mouravieff asking him whether the Imperial Government would regard with favor a proposition to hold in Russia an American exposition, to consist of practically the American exhibit at the Paris Exposition of 1900.

Should it prove to be possible to hold such an exposition in Russia, I am confident that the results would be of incalculable benefit to our commerce as well as to our general relations with this country.

Russia's extraordinary progress in industrial enterprise opens a wide field for our commerce, especially in all that relates to machinery, manufactures, and transportation, a field in which we require to make known our own development in order to reap the full benefit which ought to accrue to us.

I regret that the time since my return has been insufficient to permit of my first communicating with the Department before addressing this tentative note to Count Mouravieff; but the advantages of such an exposition to American interests here are so evident, and the reception which the suggestion received from our representatives in Paris, with whom I discussed the matter, was so fully in accord with the above that I have felt justified in making the inquiry.

I have, etc.,

[Inlcosure.]

ETHAN A. HITCHCOCK.

Mr. Hitchcock to Count Mouravieff.

EMBASSY OF THE UNITED STATES,
St. Petersburg, January 8 (20), 1899.

YOUR EXCELLENCY: Fully confident of your excellency's desire to promote in every way the historical relations of friendship and the growing intercourse between my country and the Empire of Russia, I wish to lay before your excellency a plan which could not fail to increase the commercial intercourse between our countries and consequently to promote international relations.

It has long been my opinion that an exposition of certain specialties of American manufacture in Russia would be of great interest and value, as exhibiting such

progress as we have made in our development, for the study and comparison of the Russian Government and people in their industrial advance in similar lines which might well serve a useful end by suggesting improved methods as well as stimulating enterprise and inventive faculty. Such an exposition would include methods and appliances for transportation both by land and by water, including the most modern and improved devices in use in my country for conveying passengers and merchandize at the lowest cost; machinery of various sorts, agricultural, mining, and manufacturing, for operation both by power and by hand; for the development of the natural products which are to be found in such abundant variety in this vast Empire, including their growth, such as cotton, flax, grain, timber, the metals and other minerals, including coal and petroleum and their byproducts; electrical apparatus and machinery, both scientific and industrial; systems and apparatus for irrigation and water supply, with their economical application; apparatus and improvements used in preventing, controlling, and extinguishing fires; methods and apparatus employed in sanitation, including the canalization, or sewerage, of cities and towns, and the sanitary equipment of public buildings and dwellings: systems of lighting and heating; hand tools and implements which, while operated by the mechanic's hand, serve to lighten his labor, increase its fruitfulness, and improve its results. In short, all of the various processes and apparatus which the peculiar inventive faculty of my countrymen have brought to bear upon our own industrial development.

In considering how best such an exposition of American industries in Russia could be brought about it occurred to my mind that following the international exposition to be held in Paris in 1900 it would be possible to bring to Russia practically the entire American exhibit, and to this end I consulted with the directorgeneral of our American exhibit there, as well as with the representatives of many of our leading intending exhibitors, all of whom I found to be heartily in accord with the idea. Of course I was unable to make any promises to them beyond the assurance that I would endeavor to ascertain the views of the Imperial Government on the subject, and this is the object of the present communication.

Should the idea expressed in the foregoing meet with your excellency's approval, my plan would be to obtain from the Imperial Government a sufficiently large plot of ground, either at St. Petersburg or Moscow, as would best serve the purpose of the exposition, upon which should be erected suitable building or buildings worthy of the purpose but keeping in view their temporary character, the cost of which I would endeavor to have defrayed by my Government, asking in return for such expenditure by my Government and the American exhibitors such reduction in the rate of transportation through Russian territory and such stipulations and concessions with respect to customs dues and other conditions as would operate for the success of the exposition and the mutual benefit of the Imperial Government and the exbibitors.

I would point out to your excellency that the accumulation at Paris, a point comparatively near at hand, adds a feature of feasibility to the proposition which would be unlikely to occur at a future time.

An expression of your excellency's views on this subject before my departure would be greatly desirable, in order that I may, if the Imperial Government is in accord with the suggestion, take the matter up immediately on my arrival in America, as the time is none too early to commence the necessary preliminary steps, not only as regards my Government. but with the proposed exhibitors, who would require timely notice of such proposed enlargement into a dual exposition. I avail myself, etc.,

ETHAN A. HITCHCOCK.

[Mr. Hitchcock left his post to return to the United States, February 5, 1899.]

No. 249.]

Mr. Peirce to Mr. Hay.

EMBASSY OF THE UNITED STATES, St. Petersburg, February 13, 1899. SIR: Referring to Mr. Hitchcock's No. 238 of January 21 in relation to a proposed exhibition of American machinery and other products illustrative of the progress of industry in the United States, I have the honor to inclose herewith copy and translation of the reply of the Imperial Government to Mr. Hitchcock's note on the subject, copy of

which was inclosed in his No. 238, and of my note of this date, pointing out that the proposition was not to hold here a permanent American exposition but to exhibit for a brief space of time such products as would illustrate America's industrial progress.

I have, etc.,

HERBERT H. D. PEIRCE.

[Inclosure 1-Translation.]

Count Lamsdorff to Mr. Peirce.

MINISTRY OF FOREIGN AFFAIRS, SECOND DEPARTMENT,

St. Petersburg, January 29 (0.8.) 1899.

MONSIEUR LE CHARGÉ D'AFFAIRES: The minister of finance, to whom I have not failed to transmit the note of January 8 (20) last, has seriously considered Mr. Hitchcock's proposition of establishing a permanent exposition of American products either at St. Petersburg or Moscow.

Mr. Witte has, in theory, no objections to raise against the organization of such an exposition. At the same time he does not find it possible, for reasons of commercial politics, to grant special favors for the importation of objects to be exhibited. As for what concerns the location of the ground necessary for the buildings of the exposition the organizers should address themselves to the respective municipalities.

Accept, etc.,

[Inclosure 2.]

COUNT LAMSDORFF.

Mr. Peirce to Count Lamsdorff.

EMBASSY OF THE UNITED STATES,

St. Petersburg, February 1 (13), 1899.

YOUR EXCELLENCY: I have the honor to acknowledge the receipt of your note of January 29, referring to the question of a proposed exposition of American machinery, etc., to be held in either St. Petersburg or Moscow.

In regard to this matter there appears to have been a misunderstanding on the part of the Imperial Government as to the proposition submitted by Mr. Hitchcock which I hasten to correct. The purpose was not to establish here a permanent exposition, as stated in your note above referred to, but to exhibit here for a brief space of time machinery and other products illustrative of the progress of the United States.

I trust that this explanation, so materially modifying the proposition as it appears to be understood by his excellency the minister of finance, may permit of his acceding to such customs privileges on behalf of the articles imported as would make the exposition possible.

I avail myself, etc.,

Mr. Peirce to Mr. Hay.

HERBERT H. D. PEIRCE.

No. 275.]

EMBASSY OF THE UNITED STATES,
St. Petersburg, March 15, 1899.

SIR: Referring to my No. 249 of the 13th ultimo, I now have the honor to inclose copy and translation of a note from the foreign office relating to the proposed American exposition in Russia.

I have, etc.,

HERBERT H. D. PEIRCE.

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