s and taxes already
established in the territory. I have determined to order that all ports
or places in the Philippines which may be in the actual possession
of our land and naval forces by conquest shall be opened, while our
military occupation may continue, to the commerce of all neutral
nations, as well as our own, in articles not contraband of war, upon
payment of the rates of duty which may be in force at the time when the
goods are imported. In the execution of this policy it may be advisable
to substitute new rates of duty and new taxes for those now levied in
the Philippines. You are therefore instructed to examine the existing
Spanish laws in relation to duties and taxes, and to report to me such
recommendations as you may deem it proper to make with respect either
to the rates of duties and taxes or to the regulations which should be
adopted for their imposition and collection.

As the levy of all contributions in territory occupied by a belligerent
is a military right derived from the law of nations, the collection and
distribution of duties and taxes in the Philippines during the military
occupation of the United States will be made, under the orders of the
Secretary of War and the Secretary of the Navy, by the military or naval
commanders, as the case may be, of the ports or places which may be in
the possession of our forces. Your report is desired in order that I may
be able to give the proper directions to the Department of War and of
the Navy.

WILLIAM McKINLEY.

EXECUTIVE MANSION, _Washington, May 19, 1898_.

The SECRETARY OF THE NAVY.

SIR: The destruction of the Spanish fleet at Manila, followed by the
taking of the naval station at Cavite, the paroling of the garrisons,
and the acquisition of the control of the bay, has rendered it
necessary, in the further prosecution of the measures adopted by this
Government for the purpose of bringing about an honorable and durable
peace with Spain, to send an army of occupation to the Philippines for
the twofold purpose of completing the reduction of the Spanish power in
that quarter and of giving to the islands order and security while in
the possession of the United States. For the command of this expedition
I have designated Major-General Wesley Merritt, and it now becomes my
duty to give instructions as to the manner in which the movement shall
be conducted.

I inclose herewith a copy of an order which I have this day addressed
to the Secretary