Mr. Rockhill to Mr. Hay.

No. 98.]

Sir: The diplomatic corps in its meeting of to-day read a letter from Field Marshal Count von Waldersee in reply to one sent him by that body on the 24th of last month, in which it had expressed its opinion that the Provisional Government at Tientsin should hand over its powers at the earliest date possible to the regular local Chinese authorities. The marshal reasserts his opinion that this Provisional Government should be maintained as long as there is any considerable foreign military force in Peking. I inclose copy of the marshal’s letter; also one of the reply agreed upon to be made.

The opinion of the diplomatic corps on this point was submitted to and received the approval of the various Governments, and the field marshal was so informed. Since then nothing has occurred to alter the belief that the evacuation of the native city of Tientsin and the transfer by the Provisional Government to the Chinese authorities of the authority with which it was intrusted by the commanders of the troops in north China during that period of disorganization resulting from the occupation of Tientsin should be brought to a close as soon as possible, just as is being done now in other parts of this province held by foreign troops.

The marshal’s letter has been referred by the various ministers to their Governments for final instructions on the matter. I beg you will give the subject your early attention.

I informed you in my dispatch No. 85, of the 13th instant, that the diplomatic corps was endeavoring to reach a conclusion on the subject of the suspension of the metropolitan examinations, which the Chinese plenipotentiaries think should be excepted from the operation of paragraph B, article II, of the Joint Note. This subject was taken up again to-day and two proposals made. The first stated that while the powers could hold out no hope of an amelioration of the terms of the demands for the suspension of examinations in all the towns and cities where foreigners had been massacred or had been subjected to cruel treatment, the conditions in which the metropolitan examinations take place (these examinations can only be held in the capital of the Empire and under the nominal direction of the Emperor, who confers in person some of the degrees then competed for) not existing, the powers reserved to examine later on the question of these examinations.

I voted against this proposal, which, in my opinion, would leave the whole question unsettled.

The Russian minister then proposed that the metropolitan examinations at Peking should be allowed only for graduates of provinces in which foreigners had not been massacred or been subjected to cruel treatment.

I voted for this proposal, as I did not think it was the intention, of the United States at least, to punish people from those provinces of [Page 179] China which had taken absolutely no part in the antiforeign movement of last year. Neither of these two proposals, however, securing a majority of votes, the question is again deferred for future consideration.

The Russian minister informed the conference that he had received from his Government instructions to accept the proposal in the British memorandum relating to the payment of the indemnities, and which provides for a committee of encashment, to receive from China the various payments which it will have to make on account of the indemnity, and to distribute them among the interested powers in proportion to their various claims.

I understand by this that the Russian Government abandons its proposal to secure any loan with an international guarantee for the payment of the debt.

This afternoon the private secretary of Li Hung-chang informed me that the Emperor had accepted the demand of the powers for 450,000,000 taels as indemnity, and had agreed to the payment of interest thereon at 4 per cent, though His Majesty’s Government hope that it will be found possible to slightly reduce this amount.

In this connection I transmit herewith for your information copy of a telegram which I received on the 26th instant from the Viceroy Chang Chih-tung. While this telegram is in reply to one I sent him on the 17th instant, copy of which was inclosed in my dispatch to you, No. 90, of the 20th instant, the latter part of it relates to the question of the payment of indemnity.

The diplomatic corps not having yet considered formally the question of the interest to be demanded of China, I have not yet replied to the Viceroy’s telegram.

I have the honor, etc.,

W. W. Rockhill.
[Inclosure 1.—Translation.]

Count von Waldersee to M. de Cologan.

No. 98.]

Mr. Minister: Referring to my letter of the 29th of April, I have the honor to again submit to your excellency, as dean of the diplomatic corps, the following considerations concerning the council of Tientsin:

The council of the provisional government of the district of Tientsin was created several days after the capture of that city, the transfer of the whole administration to the hands of the military authorities appearing an inevitable necessity.

To render possible the accomplishment of the duties which devolved upon it, it became necessary to extend little by little the area of its administration, so that this includes to-day not only the city of Tientsin itself, but also the neighboring territory along two banks of the Peiho as far as Taku, inclusively.

All the allied powers, with the exception of Austria-Hungary, are represented in the council, the organization of which, generally speaking, is the following:

  • First. General secretary; bureau of the council.
  • Second. Police, with a personnel partly military, partly native.
  • Third. Treasurer, to settle all financial business.
  • Fourth. Justice, to decide all judicial differences, and to judge all penal cases which can not be concluded directly by the chiefs of the police or the chiefs of districts.
  • Fifth. Public works, to finish works already commenced; to take up again and execute such works as are deemed desirable for the military interests or general interests.
  • Sixth. Salubrity, to prevent epidemics and to establish better conditions less dangerous for the public health than those existing at the present day.
  • Seventh. Chinese secretary, to make all necessary translations, to decide all demands, complaints, and requests made orally, to draw up proclamations, etc.

Furthermore, the four districts of the suburbs of which are under the orders of a chief of district, to whom is confided the maintenance of peace, and who is competent to decide directly disputes and questions of minor importance.

These chiefs have in the two largest districts as assistants two and three officers, respectively, and they have the services of noncommissioned officers and soldiers of the allied forces for the duty of police inspectors and police soldiers, so as to superintend, with their assistance, the police service, which is, as a general thing, performed by the native police.

The staff directing the above-mentioned divisions (with the exception of the Chinese secretary) is naturally composed at the present time exclusively of persons of the nationalities of the allied powers. Their number, however, is confined to the strictest limits. The subordinates, however, are already at the present time recruited as much as possible among the natives.

The above-mentioned organization, whose principal duty is to facilitate as much as possible by the measures which it adopts the accomplishment of the object which the allied forces can have in view, has, as a general thing, filled perfectly all requirements, and has been able to gain the confidence of the Chinese population. In my opinion, it would be impossible to replace it advantageously at the present time by a new organization.

Nevertheless, referring to my letter of the 29th of April to your excellency, I find myself obliged to point out again that, as my personal opinion and as that of the commanders of the contingents, it is absolutely necessary that the administration of the district of Tientsin should remain under military authority as long as international troops in any considerable number are stationed there. The effective force amounts at first to at least 7,000 men, since it is necessary to add to the 6,000 men constituting the contingent of occupation 600 men of French troops, destined to protect the railroad, several Russian military posts at Tientsin, Tongku, and Taku, as well as station guards (etapes) at the two last-mentioned places.

But if, as I have had the honor to state in my above-mentioned letter, submitting the administration of the occupied territory to military authority is in perfect accordance with the stipulations of the conference of The Hague of 1899, which were approved and adopted by the powers, on the other hand no doubt can be entertained that the transmission of the administration of the district in question to the Chinese Government would inevitably lead in a short space of time to most embarrassing complications, the consequences of which can not be foreseen between that Government and the military authorities, as these latter must depend for the satisfaction of a number of their wants on the measures adopted by the administration, being only able to count on its assistance for securing them.

In this connection I take the liberty of again noting that the settlement of these difficulties would cause the diplomatic corps much useless and protracted preoccupation. But, putting aside even the question of the feasibility of making the allied contingent dependent on the orders of Chinese officials, the multiplicity of allied contingents represented in the army of occupation would increase this indefinitely.

I see, furthermore, in the preservation of the administration under military authority a most efficacious means of obliging the Chinese Government to keep those promises to which it has already subscribed.

If, as I do not think possible, a common commander in chief for the international troops should be created, he would have the position of a military governor, to whom it would be then necessary without further consideration to submit a civil administration; but even he could not do better than to use the provisional council which already exists and is discharging well its duties while gradually increasing the Chinese functionaries in it.

In the probable case of such a commander in chief not being appointed, I believe, as formerly and without any reservation, that nothing better could be done than to allow the provisional council to subsist, while pledging it to add Chinese functionaries gradually and always in increasing numbers in its administration.

The fact that the work of the council extends exclusively to the Chinese city of Tientsin and other Chinese territory, while that of the consular body is essentially limited to the concessions, seems to make it quite possible that the two corporations should exercise their duties without at all clashing, and it will be simply a question of tact on the part of the one and the other to escape all misunderstanding.

I take the liberty of again submitting to the consideration of the diplomatic corps the question of eventually deciding whether it would not be desirable in the future that the council should count among its numbers a representative of America, which power is not leaving any occupation forces at Tientsin.

Count von Waldersee,
General Field Marshal.
[Page 181]
[Inclosure 2.—Translation.]

Dean of the Diplomatic Body to Count von Waldersee.

Monsieur le Maréchal: I have the honor to acknowledge the receipt of the letters which your excellency has been pleased to send to me under dates 29th of April and 25th of May, concerning the provisional government of Tientsin.

The foreign representatives, to whom I have submitted these communications, think that they can not express their opinion before having received instruction from their Governments,

I will hasten to forward a reply to your excellency as soon as my colleagues have been able to agree upon one.

Please accept, etc.,

B. J. de Cologan.
[Inclosure 3.—Translation.]

Viceroy Chang Chih-tung to Mr. Rockhill.

His Excellency W. W. Rockhill,
Special Plenipotentiary, Peking:

I have duly received your excellency’s telegram and have perused the various points which you consider suitable and advantageous to trade. Trade is the basis of a country’s prosperity. I perceive that all of the points presented in your excellency’s telegram have for their object the question of the expansion of trade. If regulations can be fixed that will prevent abuses, prove a benefit to China, advantageous to the trading classes and ordinary people, I shall be very pleased to consider them. As to the point referring to the working of mines and proper regulations, thus opening China’s sources of wealth, if uniform system can be devised and action taken in accordance therewith, this would be a business at present of exceeding importance. I shall be glad to consider the matter, and, after a decision has been arrived at, to memoralize the throne, asking permission to undertake the work. In your excellency’s telegram you state that the United States desire is to obtain commercial privileges. At the present time the amount (of indemnity) is very large, the foreign powers demanding 450,000,000 (taels) at 4 per cent interest, covering a period of thirty years. A payment of 26,000,000 annually is to be made. The Chinese people are poor, and to demand further payments from them to meet this enormous indemnity would still reduce the traders and people to an impoverished state. The demand for foreign goods, in consequence, would be reduced, and this would be at variance with the idea of the United States to have commerce and trade developed. I earnestly beg that your excellency will discuss the question with the foreign representatives of reducing the indemnity; also the rate of interest at least 1 or half of 1 per cent. The former American (British?) minister Sa (Ma? McDonald) named the rate of interest at 3.7 per cent. If the rate can be reduced it would make it much easier for the people to bear, and trade would gradually develop. This would prove equally advantageous to both foreigners and Chinese. If this can be done I will be ever, ever so grateful. Please favor me with a reply by wire at your early convenience.