Mr. Rockhill to Mr. Hay.

No. 60.]

Sir: I have the honor to confirm your telegraphic instructions of the 10th instant.

Your instructions on the matter of fixing the amount of the indemnity to be paid by China have had, and will continue to receive, my most earnest attention.

As I have already informed you, I have stated to my colleagues that the amount of the losses and disbursements of the United States was $25,000,000, refraining, however, from saying that this was the amount we would demand of China. This I have deemed necessary in view of your oft-repeated instructions to insist, “whatever be the process by which the sum of the indemnity be reached,” on the powers agreeing to a lump sum of not over £40,000,000, to be, after payment by China, divided among them equitably according to the losses and disbursements of each, the United States being willing to accept as its share any just proportion of the said indemnity it might be declared entitled to by the other powers.

* * * * * * *

The principal point is to get the total amount to be demanded of China within £40,000,000. Some of the powers appear to have calculated their losses and disbursements in a spirit of great moderation. * * *

Another question which disposes me to follow the course I have taken and leave the subject of distribution of the indemnity for later [Page 129] discussion, is the urgency of getting the powers to demand an indemnity, settle the question of guarantees, begin the evacuation, and reduce the enormous cost to China which the military occupation entails. The military commanders here agree that the evacuation of Peking and Paoting Fu must either be made before June 15 or postponed to next autumn, the climatic conditions in summer not being such as to allow the moving of troops. No time should there fore be lost in forcing the settlement of the indemnity question, to which I am entirely devoting, and shall continue to devote, myself.

I am, sir, etc.,

W. W. Rockhill.