for the damage and loss which they have sustained through Admiral Dewey's action.

I have the honour to address Your Excellency in connection with the recent cutting by the American Fleet in Manila Bay of Submarine Cables belonging to the Eastern Extension Australasia and China Telegraph Company, and to request that you will have the goodness to make such representations on the subject to the Government of the United States as you may deem necessary with a view to suitable compensation being granted to the Company for the damage and loss which they have thereby sustained.

The Cables in question are two in number-the one connecting Manila with Hongkong, and the other between Manila and Capiz in the Island of Panay-which Cables, with others connecting Panay with Negros and Cebu, were laid by and at the expense of the Company in return for certain subsidies and exclusive privileges of Cable communication between all the Spanish possessions in the Pacific Ocean and all other countries.

The Hongkong-Manila Cable was interrupted on the 2nd May last-the day after the destruction by Admiral Dewey's forces of the Spanish Fleet and Cavite Arsenal-and the Manila-Capiz Cable on the 23rd ultimo; and from the statements made by United States Naval Officers to the Company's representatives in the Far East it appears that both Cables were deliberately cut under Admiral Dewey's orders.

Shortly after the interruption of the Hongkong-Manila Cable the Spanish Government, in virtue of the right reserved to them by the concession, formally called upon the Company to close the Cable by sealing the Hongkong end of the line, and as the Company had no option but to comply with the request or forfeit the concession the Cable was formally closed on the 10th ultimo and has not since been spoken through.

With a view, however, to minimizing the inconvenience which the stoppage of telegraphic communication naturally caused to neutral Governments and the general public, as well as to both belligerents, the Company subsequently sounded the Spanish Government as to the possibility of neutralizing the Hongkong-Manila Cable, for the benefit of all parties; and, had their efforts met with success, I should have approached the United States Ambassador in order that he might have submitted a proposal to the Executive at Washington on the subject. Unfortunately, however, the Spanish Government were not prepared to entertain the idea, and we were therefore obliged to abandon it.

Until the situation is more settled it is not proposed to take any steps to repair the Cables: in the meantime the Company is suffering from loss of traffic with the Philippines and must under the circumstances look to the Government of the United States to properly compensate them when hostilities are concluded.

Trusting that Your Excellency will see your way to use your good offices with the Government of the United States in putting forward and supporting the Company's claim, and thanking you in anticipation,

EXHIBIT 2.

The Secretary of the Navy to the Secretary of State.

NAVY DEPARTMENT,

WASHINGTON,

July 12, 1898.

SIR:

I have the honor to acknowledge the receipt of your letter of the 24th ultimo, enclosing, for the information and consideration of this Department, a despatch from the United States Ambassador at London, forwarding certain documents received by him respecting the cutting of the cable of the Eastern Extension the Australasia and China Telegraph Company, Limited, between Hong Kong, Manila, and Capiz. The representative of the United States having proposed to the Cable Company, to which reference is made, to re-establish cable communication between Manila and Hong Kong, and that Company having refused to permit this to be done, and having also informed this Department that they were under the orders of the Spanish Government, or otherwise they would have been pleased to accept this Government's proposition, and having also stated that they had been prohibited by the Spanish Government to transmit any messages from the Philippine Islands to Hong Kong, it seems to this Department that the Cable Company referred to has no just claim against the United States. Your particular attention is invited to the statement contained in the letter of the Marquis of Tweeddale of the 9th instant, in which he states that on the 10th ultimo the Hong Kong office of the Cable Company was formally closed by direction of the Spanish Government. It would, therefore, appear that, at the present time, the Spanish, and not the American Government, is responsible for the cable not being in operation.

Respectfully,

THE HONORABLE

THE SECRETARY OF STATE.

JOHN D. LONG,

Secretary.

EXHIBIT 3.

Admiral Dewey to the Secretary of the Navy.

MANILA, August 13, 1898.

SECRETARY OF THE NAVY, Washington:

Manila, Philippine Islands, surrendered today to our land and naval forces after a combined attack. A division of the squadron shelled the forts and intrenchments at Malate, on the south side of the city, driving back enemy, our army advancing on that side at the same time. City surrendered about 5 p.m., the American flag being hoisted by Lieutenant Brumby. About 7,000 prisoners of war were taken. The squadron has no casualities; no vessel injured. On August 7 General Merritt and I formally demanded surrender city, which the Spanish governor-general refused. The Monadnock has not yet arrived. DEWEY.

EXHIBIT 4.

The Secretary of State to the British Ambassador.

No. 1337.

DEPARTMENT OF STATE,
WASHINGTON, February 7, 1899.

HIS EXCELLENCY THE RIGHT HONORABLE

SIR JULIAN PAUNCEFOTE, G. C. B., G. C. M. G.,

EXCELLENCY:

Referring to your note of the 19th ultimo, relative to the claim of The British Extension Australasia and China Telegraph Company for damages and losses alleged to have been sustained in consequence of the cutting of its cable at Manila, during the war with Spain, I have the honor to say that the Department referred the same to the Attorney General and requested his advice and opinion in relation to said claim. The Attorney General has accordingly rendered his opinion to the Department in a communication from him dated the 1st instant, copy of which is herewith enclosed, informing you of the decision, accordingly taken by this Department. I have the honor to be, etc.,

Enclosure:

From Attorney General, February 1, 1899.*

*Memorial, p. 17.

JOHN HAY.

EXHIBIT 5.

Admiral Dewey to the Agent of the United States.

Replying to your letter of the 29th instant, relative to the cutting of the cable from Manila to Hongkong, I beg to inform you as follows:

On May 1, 1898, shortly after the morning's engagement, Consul O. F. Williams, was sent on board a British ship in the harbor, with instructions to request her captain to be the bearer of a message to the Spanish captain-general. This message was taken ashore about 2 p.m., in the form of a note to the British Consul, Mr. E. H. Rawson-Walker, requesting him to see the captain-general, and, on my behalf, to say to him (among other things) that if we (the United States force) were allowed to transmit messages by cable to Hongkong, the captain-general would also be permitted to use it. A prompt reply to this communication was received from the Captain General, Don Basilio Augustin Davila. He refused to grant me the use of the cable. It was cut, by my order, the following morning.

Very respectfully,

GEORGE DEWEY.