Mr. Rockhill to Mr. Hay.

No. 144.]

Sir: In further reference to my dispatch No. 142 of yesterday’s date, in which I stated that a note had been ordered drafted by the diplomatic corps to be sent to the Chinese plenipotentiaries accepting the indemnity, I have to transmit to you herewith a translation of the French text of the note as finally agreed upon in a meeting held by the diplomatic corps to-day.

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.

* * * * * * *

I have the honor, etc.,

W. W. Rockhill.
[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.,

B. J. de Cologan.