om House was opened certain parties came to
me representing that Consul General Wildman, of Hongkong, had informed
them that United States goods would be admitted free of duty in Manila,
that acting on this they had purchased a cargo of American illuminating
oil in Hongkong, and that the payment of the heavy duty on it ($30 per
ton, or about 8c per gallon) would ruin them. On consulting Lieutenant
Colonel Crowder, Judge Advocate of the Eighth Army Corps, he pointed
out the language of paragraph 5 of General Merritt's proclamation,
which followed literally the instructions of the President, viz:
"The Port of Manila will be open while our military occupation may
continue, to the commerce of all neutral nations as well as our own,
in articles not contraband of war, and upon payment of the prescribed
rates of duty which may be in force at the time of the importation."

Under this there was clearly no authority for discriminating in favor
of American goods, either coming direct from a United States Port or
by transshipment at Hongkong.

The Collector of Customs was directed to act accordingly.

Another question was in regard to the importation of Chinamen into
Manila. The Consul at Hongkong telegraphed to know if they would
be admitted. As there had been no time for examining the treaties
and laws in force on this subject, I replied with General Merritt's
approval that for the present it was not practicable to admit Chinese
laborers into Manila.

Another very important question which arose was in regard to trade with
the other Philippine islands. Nearly all the hemp and the greater part
of the sugar is grown in the Visayas. The hemp is bought by foreign
merchants in Manila, who bring it there from the other islands, and
export it, paying large duties to the Manila Custom House. These
merchants were anxious to bring up their stock, of which a large
amount had accumulated during the war, and ship it abroad. The
ships engaged in this island trade were idle in the Pasig. They
belonged to a Spanish corporation, owned entirely by Scotch capital,
and had a Spanish Register. The owners were ready to transfer them
to the American flag. Could these vessels be allowed to clear for
the ports of Cebu and Iloilo, which were in Spanish possession? The
Judge Advocate advised me that they could not, without the express
authority of the President. I so notified the owners of the ships and
the hemp merchants. The day before I left Manila,