Foreign Relations of the United States, 1901, Appendix, Affairs in China, Report of William W. Rockhill, Late Commissioner to China, with Accompanying Documents

Mr. Rockhill to Mr. Hay.

No. 42.]

Commissioner of the United States to China,
Peking, March 14, 1901.

Sir: The diplomatic corps finished to-day the discussion of the report submitted by the commission on indemnities appointed to prepare rules, or rather lay down principles, for presenting the claims of societies, companies, and individuals arising out of the antiforeign troubles in China of last year. The necessity for such a body of rules applying alike to all private claims had been unanimously agreed to by the diplomatic corps in its meeting of February 12 last. (See Procès verbal of meeting of February 12, pages 2 and 3, and also that of February 16, pages 2 et seq.) The commission on indemnities was appointed on 25th of February, and submitted its report on the 13th of March, as I informed you in my dispatch No. 41 of that date. The classification was made after a careful examination of all the claims filed in the various legations.

I inclose herewith a translation of the report as finally adopted ad referendum by the diplomatic corps. I will transmit the French text as soon as it has been printed.

No special reference is made in the report to missions or missionaries, on account of the refusal of France to waive in any wise its claimed protectorate over Catholic missions and native Catholics in China. The French minister, however, declared that he was willing to accept, for purposes of evaluating mission claims, the principles of the report, though he reserved to himself the right to follow, as to categories, precedents established by treaties between France and China. In view of the above declaration, Paragraph IX was added to the report.

As regards the paragraph saying that each foreign representative should fix the approximate amount of the claims of his nationals, and that the sum total of them would be asked of the Chinese Government without detail or explanation, it is understood that the acceptance of this principle does not in any way prejudice the question of the final presentation of the indemnity demand on China, which has been reserved until the various representatives have received instructions from their governments.

As this paragraph follows, in principle, your wish that a lump sum covering all claims of whatever nature be demanded by the powers jointly of China, I had no reason to oppose it, though the examination in detail of all private claims by each legation will entail considerable loss of time and delay the final presentation of the demand for indemnity.

The Russian minister declared that while accepting the principles of the report, he would, unless otherwise instructed, present his claims separately. He had made a similar statement to the diplomatic corps in the meeting of February 16. (See Procès verbal of that date.)

Your views on indemnities and their presentation, contained in your various telegraphic instructions to Mr. Conger, had been made known to the diplomatic corps by him on February 16, and it had then been agreed that the various governments should be asked if they wanted to present the claims for war expenses in a lump sum with their other claims or separately. Answers have not yet been received by all the representatives, but it seems probable that a general lump sum will be asked for. In this connection I refer you to the note written by the Japanese minister to the conference on February 16. (See Procès verbal of that date.) You will also note that the representatives were of opinion that it was better to ascertain the total amount of the indemnity before discussing the question of China’s ability to pay it.

I have carefully gone over the report of the commission on indemnities, in the preparation of which I assisted, and do not think that any of the principles will prejudice claims of American citizens, if all are similar to those now on file in this legation. On the other hand, I believe that by adopting certain principles for assessing claims, the total amount which China will have ultimately to pay will be considerably reduced.

The general commanding the French forces, having stated that all the proceeds of the sale of Chinese salt seized by his troops at Tientsin would be credited to China on the amount of indemnity for war expenses, the question of crediting China with all the governmental treasure and other property not usually regarded as prize of war which has been seized by the foreign troops was brought up before the conference, when it had disposed of the report on indemnities. The Russian, British, and several other ministers stated that they accepted such restitution in principle, and it was agreed that all should ask the views of their governments on the subject.

The conference next heard the report prepared by the commission appointed to consider the demand embodied in Article IV of the Joint Note, relating to expiatory monuments in the desecrated foreign cemeteries. The commission recommended that 10,000 taels be asked for each monument in each cemetery desecrated in Peking, and 5,000 taels for each one of those in the provinces, this sum not to prejudice claims for material losses sustained in such cemeteries. The report was accepted, and it was agreed that a note should be sent the Chinese plenipotentiaries embodying the above demand. The meeting then adjourned to meet on the 18th to discuss the report prepared by the commission on the prohibition of the importation of arms and materials of war into China.

At the conclusion of the meeting I sent you the telegram which I confirm.

I have the honor to be, sir, your obedient servant,

W. W. Rockhill.

[Inclosure No. 1, dispatch No. 42.—Translation.]

Report of the commission on indemnities.

Article VI of the collective note provides:

“Equitable indemnities for governments, societies, companies, and private individuals, as well as for Chinese who have suffered during the recent events in their persons or property in consequence of their being in the service of foreigners.”

The representatives of the powers have delegated the ministers of Germany, Belgium, Netherlands, and the plenipotentiary of the United States of America to elucidate this article and to lay down principles to serve as a common basis for estimating and assessing claims for indemnity to be presented to the Chinese Government.

The commission on indemnities has attempted to effect a double purpose, first, to insure an equitable indemnity to those who have been injured, and second, to prevent the antiforeign movement of 1900 being made use of under any circumstances as a pretext for illegal gain or profit.

The commission after having studied the draft classification of indemnities communicated to the diplomatic corps by the French, British, and Japanese ministers, respectively, and after examination of all the instances which have been brought to its notice, proposes the following resolutions for adoption:

I. Damages shall not be claimed except in cases which are immediate and direct consequences of the antiforeign movement which occurred in 1900.

II. Indemnity claims may be classified under three principal headings:

a. Indemnities to governments.

b. Indemnities to societies, companies, and private persons.

c. Indemnities to Chinese in the service of foreigners.

III. (1) The commission considers that the cases specified below constitute an immediate and direct consequence of the events of 1900.

To governments:

A. War expenditure, which includes indemnities for members of the legation guard who were killed, wounded, or were subjected to cruel treatment.

(The commission on indemnities has not been empowered to deal with the above.)

B. Buildings of legations and consulates destroyed or damaged, taking into account new requirements, being an immediate and direct consequence of the above events, inclusive of temporary housing and repairs, expert survey for determining the amount of damages, etc.

Furniture and all property belonging to the Government.

Furniture and private property belonging to the staff of the legations and consulates.

To societies, companies, and private individuals.

A. Societies and companies.— Buildings and other property which have been destroyed or damaged belonging to societies and companies in Peking, Tientsin, or elsewhere, including temporary housing and repairs, expert surveys for determining amount of damages, etc.

B. Industrial undertakings.—Direct losses suffered by industrial undertakings, works commenced, wasted, or suspended.

C. Merchants.—Private property of merchants.

Real estate destroyed or damaged, including temporary housing and repairs, expert surveys for determining amount of damages, etc.

Furniture.

Usual and inevitable salary of employees whose services could not be turned to account.

Unavoidable office expenses not made good in consequence of the events.

Stock in trade, goods, provisions, samples possessing pecuniary value, destroyed or deteriorated.

Extraordinary cost of storage and reshipment.

Debts recognized as valid which can no longer be recovered.

Bank notes lost or which can not be cashed.

Specie, bills payable at sight.

Broken contracts of all descriptions, losses suffered in consequence of the nonexecution of contracts entered into for articles of exportation or importation.

Deposits of money in telegraph offices or in banks. Advances to Chinese merchants who have become insolvent in consequence of the events.

Extraordinary cost of insurance rendered necessary by the events referred to.

Goods requisitioned for foreign troops for defensive works.

D. Private individuals.—Real estate destroyed or damaged.

Broken contracts of every description, losses through nonexecution of contracts.

Articles destroyed or disappeared in consequence of the troubles.

Furniture, personal effects, jewelry, specie, bank notes which can not be cashed, objets d’art, pictures, photographs and family portraits only if of artistic value, knickknacks, books, collections memaires and letters and documents (calculated according to their salable value), manuscripts and materials collected for the publication of books (conditionally on the real value being proved), plans and instruments, provisions, wines, animals, and various materials.

Articles destroyed or lost in pawn shops, deduction being made of advances received on such articles.

Rents not recoverable or rents paid in advance, where occupation was prevented in consequence of the events.

Deposits of money in telegraph offices or in banks.

Journeys to the nearest place of safety.

Wounds or cruel treatments entailing the death of the breadwinner, incapacity for work, or direct loss of money.

To Chinese in the service of foreigners:

Indemnities to Chinese who have suffered in their property or persons in consequence of their being in service of foreigners, including indemnities to the widows and orphans of Chinese who have lost their lives during the course of recent events by reason of their being in the service of foreigners.

(II) The commission considers that the cases specified below ought not to be considered as an immediate and direct consequence of the events of 1900.

To merchants:

Losses of earnings resulting from the interruption of business or from the disturbed state of commerce at Peking, Tientsin, and elsewhere.

Bills payable at deferred sight of a risky character.

Goods belonging to Chinese intended for export on their way from the interior with transit passes.

Telegrams, insurance charges, and other ordinary expenses of this nature.

Interest on goods in stock.

Loss of interest on exchange contracts with banks.

Goods in transit belonging to Chinese.

Increased freight charges except in the case of contracts entered into before the events.

Commission to be earned on future contracts.

Depreciation of value on millinery and similar articles.

Fluctuation of exchange.

Ordinary insurance of goods sold but not delivered.

Losses caused by the interruption of banking operations during the trouble.

Remuneration to employees to compensate them for sufferings undergone.

Hotel guests who have failed to pay their bills.

Loss of customers generally.

Value of sites the buildings on which have been destroyed.

Depreciation of land in consequence of events.

Negotiable instruments not met, unless the real damage done can be clearly established.

Interest on loans.

Money lent to Chinese, except in transactions when the security given was amply sufficient.

To private individuals:

Mental sufferings and injuries of any character.

Illness, except in cases where it entails incapacity for work.

Traveling expenses other than journeys to the nearest place of safety.

Destruction of Chinese houses rented to foreigners.

Loss of diplomas.

Loss of customers.

To Chinese:

Chinese capital invested in commercial or industrial undertakings in association with foreign capital.

To compradores, goods, being his personal property, which were lost in a godown belonging to a foreigner.

IV. Claims for damages should in every case be addressed to the representative of the power which exercises protection over the claimant.

Claims of an international character are to be addressed to the dean of the diplomatic body.

The representatives of the powers, after examination of the claims preferred by the persons under their protection, shall make an approximate estimate of the amount and shall demand the sum total without giving either details or explanation to the Chinese Government.

V. (I) Damages shall be assessed as far as possible and in conformity with the above-mentioned principles, with a view to putting governments, societies, companies, and private individuals back in the position in which they would have been if the anti-foreign movement of 1900 had not taken place.

The valuation of articles for which damages are asked shall be just and reasonable and in conformity with the real expenditure which would be necessary to replace them.

(II) The amount of the indemnities can not in any case be augmented by interest at more than 5 per cent on personal claims and 7 per cent on commercial claims. Interest can only be allowed if it represents a loss actually incurred, and which shall have been proved in accordance with Article VII, given below. It will be calculated from the day on which the wrong entitling the compensation took place.

VI. If societies or companies or private individuals have been required by the military authorities to furnish articles, furniture, real estate, or goods belonging to them for the necessities of common defense, the government exercising authority over the officer or officers who have signed such requisition or have certified to the correctness of the bills shall be directly responsible for their reimbursement, with a corresponding right against China.

VII. Proof of damage suffered shall be made to the satisfaction of the foreign representative to whom the claim is addressed, in conformity with the laws and usages of his country.

The proof that the articles existed prior to the events which led to the claim being presented shall be furnished in every case to the satisfaction of the representative of the power concerned.

In examination of the different claims for indemnity for the loss of personal property it is desirable that the style of living and the presumable income of the claimant should be taken into account.

VIII. The Commission considers that the indemnities should be calculated in Hai-kwan taels.

IX. The Commission considers that the principles enumerated above should serve as a basis for assessing all claims for compensation, without distinction.