Sir:

I have the honor to acknowledge the receipt of the Department’s despatch of January 5th, 1882.
While this communication gives me more direction in the pending negotiation for a treaty with Corea, than my original instructions, a discretion which is indeed essential to success, I yet fear that the Hon. Secretary, misled by the telegram of Mr. Holcombe stating “that Corea is now willing to make a treaty with the United States,” places more reliance upon the active of the Chinese Government, and is consequently more sanguine of a formable result, than may be justified by events.
A rather close study of affairs in China for the past year, has convinced me that the present policy of its Government is reactionary, and marked by a feeling rather hostile than friendly to foreigners in general. Whatever may be done therefore in this matter by H. Ex. Li Hung-chang, or the Foreign Office at Peking, will be with a view rather to weaken, than to advance foreign influence in the East.
I am led to express, from an interview on the 9th inst. with the Hai Kwan Taotai, who is the representative of the Viceroy during the absence of the latter from Tientsin: that His Excellency will endeavor to have inserted in the Corean treaty (1) the dependence of Corea upon China. (2) prohibition of all religious books. (3) the right of Corea to establish her own tariff, and to tax foreign imports both a the ports and in the interior. (4) the right of Corean officials to arrest Corean criminals in the house of foreign merchants ext.
The first requisition of H. Ex. Viceroy, the acknowledgement of the dependence of Corea upon China, will be made because he wishes to obtain the official support of the United States for a proposition which China has not the usage authoritatively to assert to the world. As I consider such a proposition inadmissible and not even justified by the facts, it will, if insisted upon, of course terminate the negotiations so far as His Excellency is concerned.
The other clauses may be either omitted, or satisfactory shaped in accordance with our other certain treaties, particularly as my instructions indicate the propriety of expressing myself to the protection of shipwrecked seamen and property on the Corean coast.
This statement is made in anticipation of events; in order that the Hon. Secretary may feel no more disappointment than I shall myself, if after waiting nearly year upon the active of this Government, the negotiations should terminate in a failure.
Since my dispatch (No. 1) of Jan. 20 to the Department, I have informed H. Ex. the Viceroy of any appointment as Envoy to Corea, by a letter addressed to him at Pao-Ting-Fu under last June 23rd, 1882. (copy herewith inclosed)

In that communication I asked for an interview, either at his present capital or after his return to Tientsin. To this H.Ex.replied-under date of Feb. 12, -that he would be glad to see me at Pao-Ting-Fu provided I could come incognito (copy enclose).
In the interval between my letter, and the receipt of H. Ex’s reply, I went to Peking and then I respectfully declined H. Ex’s invitation to visit him incognito. (copy enclosed)
I did not desire, nor did I think it proper to give this negotiation the character of a personal intrigue between the Viceroy and myself, and I went to Peking for the purpose of ascertaining whether H. Ex. the Viceroy was acting in this matter with the sanction of the Chinese Government; and thus place the affair upon its proper basis as a friendly act on the part of this Government toward our own.
Mr. Holcombe entered cordially into my view; and in an interview with the “Tsung-li-Yamen” I ascertained that the Viceroy had been authorized and directed to act as its agent in the matter, and that the Yamen itself was quite as willing, and I thought more sincere than the Viceroy himself in its offer of cooperation.
He is now understand therefore; that whatever may be done in China in the matter of the Corea- by the Viceroy-has the authority of the Chinese Government.
His Excellency returned to Tientsin in a few day, and I have invited Mr.Holcombe to be present at the coming interview, in order to have the benefit not only of his counsels, but also of his knowledge of the Chinese language.
I have written thus frankly to the Department because I wish it to understand that I have no personal desire to remain one moment longer upon this duty than is necessary either to make it a success, or to ascertain its failure.
I do not consider it advisable to go to Corea without the assistance of the Government of China, and if this is refused, or so qualified by obstructions as to render it unavailable, I will telegraph the fact to the Honorable Secretary.

I am with great respect,
R. W. Shufeldt
Commodore U.S.N.