493.11 N 15/206: Telegram
The Chargé in China (Perkins) to the Secretary of State
[Received September 13—10:35 a.m.]
704. Legation’s 664, August 28, 3 [1] p.m.
- 1.
- Following from Shanghai:
“September 12, noon. Examination of claims discloses marked lack of uniformity in method of filing, this permitting the Chinese [Page 357] Commissioners [to] raise a number of questions upon which the definite instructions of the American Government are requested, particularly in view of the fact that rulings of the Sino-American Commission will in all likelihood be cited by the Chinese vis-à-vis the Sino-British, Sino-French and other Nanking claims commissions and may lead to embarrassment if any departure has been made from well-established international practice in reference to claims in general. As indication of such tendency on the part of Chinese authorities, Mrs. Williams’ waiver of any indemnity for murder of Dr. Williams45 is now being strongly pressed by Chinese on Italian authorities as reason for withdrawal of Italian claims for murder of Italian priests at Nanking.
- (2)
- Reference books available to Commission fail to
indicate general practice in reference to following
points which appear elemental in nature, and specific
instructions are accordingly requested on following
points:
- 1st.
- Is original cost, estimated value at time of loss, or replacement value to be used as measure of damages assessed?
- 2d.
- Is interest on amount of claim a proper charge on Nationalist Government? If so at what rate and for what period is such interest to be computed? It is assumed that such interest will accrue to American claimants.
- (3)
- Chinese Commissioners propose that other than in American Government claim and certain special cases where Mexican payments would work an injustice, all damages be paid in Chinese currency at the rate of $2 Mexican to $1 United States currency. Since United States rate for last five years preceding Nanking incident averages slightly less than $2 Mexican to $1 United States currency; since most losses were for goods purchased within that period and were paid for in Mexican dollars; since many claimants have filed [claims?] in Mexican dollars only; and since at least half of claimants have definitely used two for one exchange rate in reducing Mexican values to United States currency, the Chinese Commissioners’ proposal for the payment of claims in Chinese currency rather than in gold drafts purchased at prevailing rate of exchange, appears in general preferential and American Commissioners are inclined to accept such proposal without prejudice to special cases, unless American Government insists upon payments in United States currency. In latter case, most claims must be held up while more exact information as to exchange rates used in gold conversions are obtained from claimants, many of whom are in the United States.
- (4)
- Pending definite instructions from the Department, Commissioners have meticulously avoided commitments on these points raised by Chinese Commissioners but have insisted for the time upon latitude of action to meet special circumstances in cases as they arise. However specific instructions are urgently requested since Chinese are seeking to make American attitude in reference to claims precedential insofar as other international claims are concerned.”
- 2.
- Suggestions made in paragraph (3) seem reasonable to the Legation. Department’s instructions respectfully requested.
- Dr. J. E. Williams, vice president of the University of Nanking, killed at Nanking, Mar. 24, 1927.↩