No. 424.
Mr. Bingham to Mr. Fish.

No. 57.]

Sir: Since writing my dispatch, No. 55, concerning the unpaid balance of the Simonoseki indemnity, Sir Harry S. Parkes, the English minister, has addressed to me on that subject a letter of this date, a copy of which is herewith inclosed.

You will observe that he holds $5,833.33, which he says is the pro-portion paid on the special damages adjudged, and which he says is payable to me as the representative of the United States. I am wholly unadvised as to the payments hitherto made by the Japanese government on account of this indemnity, and therefore, before acting in the matter, I respectfully ask instructions from the Department, and beg leave in this connection to call your attention especially to my dispatch No. 55, above referred to.

I deem it my duty to await your instructions, and have to request that you will favor me with them at your earliest convenience.

I am, &c.,

JNO. A. BINGHAM.
[Inclosure.]

Mr. Parkes to Mr. Bingham.

Sir: You will doubtless have heard that the Japanese government have preferred to proceed with the payment of the moiety of the Simonoseki indemnity, which remains due under the convention of October 22, 1864, rather than relax the restrictions to which foreigners are subjected in this country, and that they have lately delivered to the ministers of France and the Netherlands and to myself $125,000 each, as three one-fourth shares of fourth installment of the said indemnity. A certain portion of the money thus received by me is transferable to yourself, and in order to explain this circumstance it appears necessary that I should trouble you with the following reference to the arrangements, concluded more than eight years ago, between our respective governments in regard to the division of this indemnity.

The mode of dividing this money between the four powers to whom it was payable, namely, France, Great Britain, the Netherlands, and the United States, was discussed at Paris in 1865. The French minister for foreign affairs, M. Drouyn de Lhuys, suggested the division should be made according to the proportion which the forces of [Page 670] each power in Japan bore to the aggregate forces of the four, while the United States minister to France, Mr. Bigelow, contended that each power should be considered to have contributed equally by its moral support to the success of the common cause, irrespective of the material force which each brought into the held, and which is detailed in the margin—France, 1,225 men; Great Britain, 5,156 men; Netherlands, 951 men; United States, 258 men—and, therefore, that each power should receive an equal share of the indemnity. Her Majesty’s government willingly concurred in Mr. Bigelow’s proposal in order to mark their estimation of the value of united action between all the powers then represented in Japan, and the division of the indemnity in equal shares was accordingly agreed to by the four governments.

It was also at the same time agreed that compensation for certain injuries sustained by French subjects and for certain damages done to United States and Netherlands ships at the Straits of Simonoseki prior to the joint operations of the four powers against Choshieu should be assessed at $140,000 in the case of each of the said three powers, and that the total amount of these special compensations, or $420,000, should form a first charge on the Simonoseki indemnity and be paid ratably out of each installment. That is to say, that the indemnity being payable in six installments of $500,000 each, one-sixth of the sum due for these special compensations, or $70,000, was to be deducted from each installment as it was received from the Japanese government, and was to be divided between France, the Netherlands, and the United States, while the balance of each installment after the above deduction had been made, or $430,000, was to be divided equally between the said three powers and Great Britain.

Consequently on each of these three occasions when an installment of the said indemnity has been paid by the Japanese government to the representatives of the four powers in equal proportions of $125,000 each, the British representative, acting in conformity with the above arrangement of the four governments, has accepted only $107,500 of the sum thus tendered to him—this being a one-fourth share of $430,000— and has handed the amount paid to him in excess, namely, $17,500, to the representatives of France, the Netherlands, and the United States, in order that it might be applied to the payment of their special compensations.

In the same way, it is now incumbent upon me to accept; on the part of Her Majesty’s government in the case of the division of the present or fourth installment, only $107,500, instead of $125,000, which has been delivered to me by the Japanese government, and I have to place the difference, or $17,500, at the disposal of the representatives of France, the Netherlands, and the United States.

The proportion of this sum which is payable to yourself, is $5,833.33, and I should feel obliged if you would inform me of your wishes in respect to this money.

I have, &c.,

HARRY S. PARKES.