The provision in the note by which the Chinese Government is granted three
years to pay off the first half-yearly amount of interest due on the
indemnity was inserted at the request of Sir Robert Hart.
The representatives of the powers discussed also the question of the date on
which the new tariff should go into effect. All were in favor of its being
applied immediately after the signing of the final protocol, excepting only
goods in transit to China, with the exception of the Japanese minister and
myself. We thought that two or three months’ notice should be given.
[Inclosure 1.—Translation.]
Mr. de Cologan to
the Chinese Plenipotentiaries.
Highness, Excellency: You were pleased to
inform me in your letter of the month of May that an Imperial edict had
approved of the sum of 450,000,000 haikwan taels, with interest at 4 per
cent, to be paid to the powers, and had ordered you to take the
necessary steps to carry out the Imperial decision.
The representatives of the powers, to whom I hastened to communicate your
letter, direct me to inform you that they take note of this decision,
and that the sum of 450,000,000 haikwan taels, payable in gold at the
rate of exchange of April 1, 1901, with interest at 4 per cent,
represents the final total of the indemnities asked by the powers.
They have directed me, furthermore, to transmit to you a scheme of
amortization, which exactly complies with the wishes of your highness
and your excellency as to the paying off of the capital and
interest.
The service of amortization, properly so called, will commence, as is
shown in the annexed table, on the 1st of January, 1902, and will extend
over the period comprised between the years 1902 and 1940,
inclusive.
China will consequently only have to pay on the 1st of January, 1902,
interests on the sum of 450,000,000 haikwan taels for the period of six
months extending from the 1st of July, 1901, to the 1st of January,
1902. Nevertheless, so as to give to China facilities for paying off
these arrears the powers are willing that the amount should be divided
over a period of three years, from 1902 to 1905, on condition that
compound interest shall be allowed them.
Finally, the representatives of the powers have also requested me to
inform you of the revenues which they have decided to assign as
guaranties of the bonds:
- 1.
- The balance of the maritime customs augmented by the receipts
accruing from the raising to 5 per cent effective of the present
tariff on importations by sea, inclusive of the articles which
until now have entered free of duty, but with certain
exceptions, which will be indicated later.
- 2.
- The revenues of the native customs, administered by the
Imperial maritime customs.
- 3.
- The net revenue of the (salt tax) gabelle, with the exception
of the fraction previously assigned to other foreign
loans.
[Page 290]
The raising of the present tariff on importations to 5 per cent effective
is consented to on the following conditions:
- (a)
- Conversion of all dues on imports at present collected ad
valorem into specific dues. An international commission shall be
appointed for that purpose and, pending the result of its
labors, duties shall continue to be collected ad valorem.
- (b)
- Improvement of the course of the Peiho and the Whangpu with
the financial participation of the Chinese Government.
The further details concerning the mode of payment will be communicated
to you later.
As to the question of the evacuation of Peking, we will shortly be in a
position to inform you of its date.
I avail myself, etc.,
