U.S. Consulate
December 31, 1866

Honble William H Seward
Secretary of State
Washington DC

Sir:
　I have the honor to transit my report for the quarter ending December 31 1866. The principal case which has transpired is the case of the American Schooner General Sherman.
　The French fleet returned from Corea Oct. 3rd, and on the 4th it was reported here, that the American Schooner General Sherman had been wrecked on the coast of Corea, and all on board murdered by the natives. I immediately wrote to the Admiral requesting him to furnish me with what information he could, to which he replied as follow.
　“In reply to the letter which you have done me the honor of writing, I can do no better, than send you the exact copy of a note that was sent to me by Rev. P. Ridel “Apostolic Missionary.” On the 30th of September we were at anchor near Woody Island on the coast of Corea. During the night a Corean boat with two natives on board approached the Déroulède. Having recognized in one of them, one of the Sailors who had accompanied me in the spring, on the voyage from Corea to Cheefoo, I succeeded in inducing them to come on board. Among other informations they told me that about the middle of the 7th moon (about the end of the month of August) a small vessel from the country of the West had appeared on the coast of Corea, in the province of Chiengan-do, which is in the extreme Northwest of the Kingdom.
　She was endeavoring to ascend the river and to reach the city of Phiang-iang, capital of this province, and had already arrived almost off this city, when she grounded on a sand bank. The Governor at once sent to the King’s father for instructions whether he should put to death those on board, or should burn them and the vessel together. The King’s father replied to burn the vessel and all on board. This barbarous order was “executed.” Such, Sir, is the only information bearing at all upon the matters to which you allude that has reached me.”
　The General Sherman was chartered by Mess. Meadows & C. of Tientsin, and left here on 9th August ostensibly for Passiett. She called for water, took Mr. George Hogarth as Supercargo, and Rev. Mr. Thomas as interpreter, both of whom were British subjects. The owner, W.B. Preston, Page Captain, Wilson Chief Mate, were Americans. The crew consisted of from 15 to 20 Malays and Chinese, Cargo Cotton Goods, Glass Tin Plates &ca&ca. On October 7th two Chinese junks arrived from Corea, and made the following report, respecting the wreck and burning of a Foreign Schooner viz:
　The Captain of one of them was engaged by Mr. Thomas, to pilot the Schooner up the river Ping Yang, so as he was acquainted with him previously, he yielded and took her up four tides. By this time the alarm had spread amongst the natives, they taking her for a Pirate, and would not believe the Pilot, when he told them she was a peaceful trader. (The General Sherman was heavily armed) All trade was stopped by order of the Governor, and the natives began to collect in large numbers, when the friends of the Pilot on board the Junk, becoming alarmed, refused to allow him to go any further, saying, if he was killed they would have no face to return to Yentai; he therefore left them opposite to little Ping-yang-so about halfway up the river. They were still determined to proceed up, this was about the middle of the 8th moon. You will notice here a disagreement between the date given by the French Missionary and this man. However, the other Junk it seems did not reach Corea, on its nearing the coast, a Junk put off, and warned them not to go in, as a Foreign Vessel had been wrecked opposite to Ping-Yang-So, and the Vessel with all hands burnt, on which the Junk returned to Yentai. On the night of the 27th instant, the two French Missionaries who had been concealed in the mountains in Corea, reached this place. They state that a Foreign vessel was wrecked opposite Ping-Yang-so; after some fighting between the natives and those on board the Schooner, the natives succeeded by strategy in drawing the men on shore, when they were surrounded, and their hands tied behind their backs. They were then made to kneel down on the shore, and were beheaded. The Missionaries report they were 20, thus put to death.
　Inquiry now arises, what has been done with the rest. Mr. Moore informed me, that the crew consisted of nearly 20, while there were in addition 5 Europeans besides their Servants. It may be that the Coreans instead of putting them to death kept them prisoner thinking that they might be enabled to use them in some way, on arrival of the French forces.
　A speech made by Dr. McGowan in San Francisco, is one which I feel well merits the attention of the Government, he says “The Government of the United States should follow the example of other great powers and establish at the earliest possible moment naval station on the Coast of China & Japan. In the event of a War between the United States and other Maritime Power, one of the most important points wherein the commerce of that power could be seriously annoyed will be the Indian Ocean and China Seas, but to do this a powerful squadron have to be employed, and this could not be done, if we possess no base of supplies nearer than our nearest home port, which port would be San Francisco, had we however a Naval Station, a depot of Stores and munitions of war, a port whereat our vessels could be refitted and repaired, without the necessity of returning to the distant coast of the United States, we could maintain a fleet on those waters that would harass and annoy the enemy constantly. Even as a peace establishment its importance and great economy would be manifest to everyone. If located far enough North, the port will answer admirably, wherein to give the Crews liberty, and enable them to recruit strength & health after an extensive cruise in the tropics. Of course, a hospital will form a portion of the establishment. Again, if the Vessels commissions had expired, or the time had arrived to relieve the Officers and Crew instead of the Vessel going home, and another coming to take her place, she could be overhauled and refitted, and a new set of Officers and crew could be sent out, thus avoiding the heavy expense of taking the Vessel from the Station.”
　The French and English have a Naval Station here on the Island at the mouth of the Harbor, but the best position has been left unoccupied by them, I feel fully convinced that Cheefoo offers many inducements to Naval powers desiring to establish a Naval depot in the north. It is accessible all the year, in constant Steam communication with the South, near to Japan & Pekin, the climate is regarded as superior to any of the other ports in China, while provisions can be obtained at a moderate price.
　Dr. McGowan’s remarks regarding consuls are also worthy of attention. I am sorry to admit that our Consular service is a disgrace to American name. Many who come out are proficient (if common report is to be believed) in tipping the bottle, at least none of them know anything about the language, nor do they attempt to learn it, in many of the ports, they have no time, even if anxious to do so, consequently in their interviews with the Authorities, where no Interpreter is allowed, they are dependent upon the kindness of the same of the Missionaries, also are obliged to depend upon them for translating documents into Chinese, as there is not one Missionary out often, who is up in official language; it is easy to imagine how the letter causes our officials and country to sink in the estimation of the Chinese, our influence is lessened if not wholly destroyed.
　Again, if the Consul is engaged in business, he is frequently brought into collision with the Authorities, moreover he depends upon his Compradore to write his Communications to the Chinese Authorities.
　I am fully convinced, that there can be no hope of any improvement, until they adopt a plan similar to the English, thus if a young man should be sent out as student interpreter he then fills respectfully the position of interpreter Consul & Vice Consul.
　All Vice Consuls & Consuls to be taken from this class, and hold their appointments for life, unless they prove themselves unworthy. A man who has risen to the position of Vice Consul or Consul, would be fitted to act either in China, Corea, or Japan, for while the spoken languages of Corea and Japan differ from the Chinese, yet their official communications are written in Chinese characters. At present Trade is falling off owing to the approach of the Chinese New Year, the prospect of the American Trade next year is good.

I have the honor to be
Sir
Your most obedient Servant
Sandford
U.S. Consul