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American consul at Smyrna, concerning a certain Xenophon Ralli, and copy of the consulate-general's reply to the consul. The facts of the case are as follows:

In February, 1903, Mr. Leishman refused Xenophon Ralli a passport on the ground that he had resided seventeen years permanently at Smyrna, and that he had stated in his application that he had no intention of returning to the United States.

Mr. Leishman reported the facts of the case to the Department, and his refusal to grant a new passport was approved.

The consul at Smyrna now reports as follows: That this individual has had some eight or ten criminal summonses made against him since Consul Lane's appointment to Smyrna, and has escaped them all owing to the disinclination of the Ottoman authorities to prosecute in an American consular court.

The man, on finding himself denied further protection by the legation, makes a trip to America and obtains a new passport from the Department, which is naturally in ignorance of the full facts of the

case.

He at once returns to Smyrna and loses no time in having a fresh criminal summons issued against him. He then proceeds to the consulate, shows his new passport, and claims protection.

The consul naturally wishes to know whether he is, by virtue of his fresh passport, to enjoy a further life of protection from the consequences of his ill deeds.

I have felt myself compelled to instruct the consul to afford him every protection pending the instructions I now beg the Department to give me.

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I have, etc.,

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PETER AUGUSTUS JAY.

[Inclosure.]

Mr. Lyte to Mr. Jay.

AMERICAN CONSULATE-GENERAL,
Constantinople, November 5, 1904.

SIR: I beg to transmit you a copy of the report of Consul Lane in regard to the recognition as an American citizen of one Xenophon Ralli, who was refused a new passport by the legation, but has since obtained one from the Department of State.

Consul Lane requests the legation's advice as to his being permitted to enjoy American protection.

I attach a copy of my reply to the consul on the subject of the many summonses issued against this individual by the Ottoman criminal court and his escape from trial owing to the disinclination of the authorities to appear before our consular court.

I am, etc.,

[Subinclosure.]

Mr. Lane to Mr. Lyte.

W. SMITH LYTE.

AMERICAN CONSULATE,

Smyrna, October 24, 1904.

SIR: I have to report that about ten days since this office was in receipt of a note from the local authorities, inclosing a summons from the criminal court of

Smyrna to be transmitted to Xenophon Ralli, erstwhile American citizen. In reply to same I advised the director of foreign affairs, in a note verbale, that since the 10th of March last Mr. Xenophon Ralli is considered by this consulate as having lost his rights to American protection, and at the same time I returned the summons.

I took this action in accordance with the refusal of the honorable American minister to grant a passport to Ralli last March, and with the observation contained in your No. 153, of March 10 last.

I have now to state that Ralli called at this consulate on Saturday last and exhibited a passport bearing date of August 24 last, issued at Washington by the Secretary of State, Hon. John Hay.

I immediately advised the local authorities that my recent note concerning Ralli's forfeiture of protection is null.

I am convinced that Ralli made his trip to America solely to obtain a passport after having been refused one by the American minister, and his immediate return to Smyrna proves his determination not to make America his country of residence.

Under these circumstances I do not believe he should be permitted to enjoy American protection in Turkey, and I request an instruction from the minister on this matter.

In the summons above referred to Ralli is accused of incendiarism. This is probably the eighth or tenth summons from the criminal court that has been issued against Ralli since I have known him. All of these he has escaped through the disinclination of the Turkish authorities to appear before the consular court. Ralli takes advantage of his immunity thus obtained in order to make himself objectionable to his neighbors.

I am, etc.,

RUFUS W. LANE.

Mr. Hay to Mr. Jay.

No. 731.]

DEPARTMENT OF STATE, Washington, December 9, 1904. SIR: I have to acknowledge the receipt of your dispatch No. 942, of the 8th ultimo, in which you report that Xenophon J. Ralli-who had resided for seventeen years permanently at Smyrna, with no intention, as he declared in his application to the legation for a new passport, to return to the United States-finding that he could not. obtain a passport from the legation, went to the United States, obtained a passport on August 24 last from the Department, and at once returned to Turkey.

You further report that Ralli has been summoned some eight or ten times by the Turkish authorities to answer various criminal charges since Mr. Lane has been consul at Smyrna, but has escaped prosecution in every case, owing to the disinclination of the Ottoman authorities to prosecute him in an American consular court.

You add that you have felt compelled to instruct the consul at Smyrna to afford Ralli every protection pending the instructions which you request the Department to give you in the matter.

In reply I have to say that Ralli's status has not been improved by his obtaining a passport from the Department, inasmuch as the passport was obtained on false statements. The passport may, therefore, be disregarded, and his status considered the same as that he occupied before he made his hurried journey to this country for the sole purpose of securing a passport.

I am, etc.,

JOHN HAY.

URUGUAY AND PARAGUAY.

REVOLUTION IN URUGUAY.

Mr. Finch to Mr. Hay.

[Telegram.-Paraphrase.]

AMERICAN LEGATION, Montevideo, January 8, 1904.

(Mr. Finch reports that another crisis is at hand in Uruguay; that encounters have taken place between groups of "Blancos" and the Government forces, and that the former, who were neither concentrated nor well organized, have been dispersed. A number were killed and wounded. The Government is making an aggressive campaign and demands obedience to the constituted authority as a condition before peace negotiations will be entered into.)

Mr. Finch to Mr. Hay.

No. 713.]

AMERICAN LEGATION, Montevideo, Uruguay, January 13, 1904. SIR: No formal declaration of war has been published by the Government of Uruguay or the Blanco party. Restrictive orders have been issued, however, by the former. Egress from Montevideo and other points of the Republic is restricted to foreigners, and they, before being allowed to depart, are compelled to obtain permits issued only on certificates of nationality from their respective consuls or ministers. A rigid press censorship has been adopted. The telegraph companies of the Republic have been "intervened," and the circulation of outside newspapers containing prohibited matter-that is, news matter relating to current events--forbidden.

No order has as yet been published "intervening " the general mails. All Blanco clubs have been officially closed, and their presidents notified that Blancos in larger numbers than two or three are not allowed to meet. To make this order effective policemen guard the entrances to the regular meeting places of Blancos.

You will see by the above that while martial law has not been formally proclaimed, martial law is being enforced throughout Uruguay. Respectfully,

FR 1904 M- -54

WILLIAM R. FINCH.

849

No. 740.]

Mr. Finch to Mr. Hay.

AMERICAN LEGATION, Montevideo, Uruguay, March 16, 1904.

SIR: I inclose copy of a communication from United States Consul Hopley, of Montevideo, dated March 12, 1904, relating to the commercial, financial, and industrial condition in and about this capital created by the pending revolution.

In this connection I will add that the Government continues to assert its belief that the insurrection will soon be suppressed and on its own terms, unconditional surrender. The revolutionary leaders say they will not disband their forces until the Government meets them on a peace basis which at least will stipulate for full pardon and satisfactory assurances of a free ballot and an honest count. Respectfully,

WILLIAM R. FINCH.

[Inclosure.]

Mr. Hopley to Mr. Finch.

AMERICAN CONSULAR SERVICE,
Montevideo, March 12, 1904.

SIR: I have the honor to report in answer to your request for information as to the effect of the present revolution on this country in my consular jurisdiction, that it has been of serious damage.

The calling out of the national guard in January last took from business occupation a large number of the young and active men of the country. The second call in February, enlisting the departmental guard, although not yet enforced, warns a large body of business men that they may be called upon to bear arms at any time. The national guard, already in the field, has taken inen from the stores and workshops, leaving nearly every place of business crippled. Added to this, the Government has had need of horses, and these have been taken, leaving all carriers in a crippled condition for the transaction of their business.

The result has been that there is no industry or business that has not been more or less crippled by the continuance of the revolution.

In the rural districts business is more at a standstill than in this city, as both armies have seized all available horses and the products of the country can not be brought from the estancias to the railroads; men have fled from their farms to avoid going into the army of the Government or have joined the revolutionists or been enlisted in the Government army.

The revolution occurring when it did left much of the crops unharvested, and at least one half of the present harvest is lost. Ships arriving here the past month with lumber expecting to return with hides are forced to leave empty for the States or for other ports.

The impressment system into the army has had the effect that hundreds of the best young men have sought safety in other countries, and as a result the best of these will secure desirable positions and never return.

The cost of the war is probably one and a half millions per month, but the loss in products, in necessary and unnecessary destruction of property, far exceeds this, and the loss to the future of this country in again showing its unsettled condition, and the active young business men who have left it never to return is incalculable.

The banks are surfeited with money. Many persons have drawn out sums for safety, but many more have deposited, and very, very few risks will a banker regard as safe. As a result money is idle. Of three of the largest banks interviewed all said cash on hand exceeded by 50 per cent what it should be and what it was at this time last year.

Much of the business done here is done by foreigners. All these complain

of the serious effect of the war on business and are anxious for any termination of the struggle, and anxious for a peaceful government of this country, whether by either of the local parties or by any foreign power. The native population are equally anxious for a speedy termination of the trouble, and rather than have the existing condition of affairs continue would probably not object to Argentina or Brazil insisting on some permanent settlement, the majority of the Colorados (Government) being friendly to Brazil, the majority of the Blancos (revolutionists) being friendly to Argentina.

During the ten weeks the trouble has lasted the Government has, in my opinion, been very careful in protecting the interests of the subjects of foreign countries. But in a business way they suffer, as does everyone else.

I am, etc.,

JOHN E. HOPLEY.

Mr. Finch to Mr. Hay.

[Telegram.-Paraphrase.]

AMERICAN LEGATION,

Montevideo, September 12, 1904.

(Mr. Finch reports that the military leader of the revolution, Seravia, is dead.)

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Montevideo, Uruguay, October 18, 1904.

SIR: I inclose translation of the message of President Batlle to the Assembly General, dated October 15, 1904, submitting the terms on which peace was negotiated with the revolutionary leaders, together with a brief accompanying explanation.

I also inclose translation of the law which was submitted by the President with his message legalizing the terms and stipulations entered into by the Executive.

The law of interdictions, as it is called, is not repealed, but merely suspended, and there is quite general dissatisfaction expressed in consequence, not among Blancos alone, but conservative Colorados also.

The negotiations and the law appertaining thereto were approved by the Assembly General. WILLIAM R. FINCH.

Respectfully,

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