Mr. Conger to Mr. Hay.

No. 776.]

Sir: I have the honor to inclose herewith a translation of the bond for the lump sum or total indemnity of 450,000,000 taels, which, in compliance with paragraph (c) of Article VI of the Final Protocol, was yesterday delivered to his excellency Mr. B. J. de Cologan, as dean of the diplomatic corps, signed and sealed by the plenipotentiaries, Prince Ch’ing and Li Hung-chang, and bearing the official seal of the imperial board of revenue. I will send a copy of the bond in French and Chinese as soon as it can be obtained.

I am, etc.,

E. H. Conger.
[Page 130]

We, Prince Ch’ing, Grand Secretary Li Hung-chang, and the ministers of finance, deliver the present bond, according to the clauses of Article VI of the Protocol signed September 7, 1901, by the plenipotentiaries of the eleven Powers, viz, Germany, Austria-Hungary, Belgium, Spain, the United States of America, France, Great Britain, Italy, Japan, Holland, and Russia, and by the Chinese plenipotentiaries, who stipulate the following:

By an imperial Edict dated May 29, 1901, His Majesty the Emperor of China agreed to pay the Powers an indemnity of 450,000,000 Haikwan taels, calculated in gold at the rate of the Haikwan tael to the gold currency of each country, as indicated below:

Haikwan tael =marks 3.055
=Austria-Hungary crown 3.595
=gold dollar 0.742
=francs 3.750
=pound sterling 0. 3s. 0d.
=yen 1.407
=florin, Netherlands 1.796
=gold ruble (17.424 dolias find) 1.412

This sum in gold shall bear interest at 4 per cent per annum, and the capital shall be reimbursed by China in thirty-nine years, under the conditions indicated in the plan of amortization annexed to the said Protocol.

The principal and interest shall be payable in gold or at the rates of exchange corresponding to the dates at which the different payments fall due.

The amortizations shall be paid annually.

The interest shall be paid semiannually and shall start from the 1st of July, 1901, but the Chinese Government shall have the right to pay off, within a term of three years, commencing January 1, 1902, the arrears of the first six months, finishing December 31, 1901, on condition, however, that it pays compound interest at the rate of 4 per cent per annum on the sums the payments of which shall have thus been deferred.

The present bond shall be converted into fractional bonds, signed by the delegates of the Chinese Government designated for this purpose.

The resources assigned as security for the bonds are the following:

The balance of the revenues of the imperial maritime customs, after payment of the interest and amortization of previous loans secured on these revenues, plus the proceeds of the raising to 5 per cent effective of the present tariff on maritime imports, including articles until now on the free list, but exempting rice, cereals, and flour from abroad, gold and silver bullion, and coin.
The revenues of the native customs, administered in the open ports by the imperial maritime customs.
The total revenues of the salt gabelle, exclusive of the fraction previously set aside for other foreign loans.

The product of the resources assigned to the payment of the bonds shall be remitted monthly to the commission of bankers designated by the various Powers for the collection of the sums belonging to each of them.

The present bond represents the sum of 450,000,000 Haikwan taels, calculated in gold at the rate corresponding to the gold currency of each country as indicated above.