This note contains the terms of an Imperial edict accepting the indemnity of
450,000,000 taels with interest at 4 per cent.
I reserve comments on the proposal of the plenipotentiaries contained in this
communication for a later date, not wishing to delay sending you the paper
by the mail closing in a few hours.
[Inclosure.—Translation.]
Chinese Plenipotentiaries
to the Dean of the Diplomatic
Corps.
(After acknowledging the receipt of the communication of the
representatives of the powers, the Chinese plenipotentiaries continue as
follows:)
In considering in a previous dispatch the question of indemnities we
explained to your excellency the penury of the Chinese treasury.
[Page 185]
In your last communication your excellency is pleased to call our
attention to the fact that the annual payments of 15,000,000 taels which
we proposed only represent the capital, and you now call our attention
to the question of interest.
As we on our side had already considered that besides the capital there
was also to be taken into consideration the question of annual interest
at 4 per cent, we had already, by telegram, submitted to the Throne
propositions on this subject, and in reply we have received an Imperial
edict stating that “The figure of 450,000,000 of indemnities to be paid
the powers, with interest at 4 per cent, is approved,” and we are
commanded to take the necessary measures to carry out this decision:
We have therefore only to comply with the orders of the Throne.
Nevertheless, this obliges us to recall to your excellency that the
financial resources of China are so restricted that nothing more can be
taken from them possibly beyond the 15,000,000 taels which we have
already proposed to your excellency to devote specially to the payment
of indemnities; but as this sum must not only supply payment of the
capital but also that of the interest, we have no other alternative to
propose than to prolong the term of payments, which we had in the first
place fixed at thirty years, in such a way that the installments paid
during the first period of this term thus extended shall be considered
as destined to extinguish the capital, while those made during the
second period shall be applied to liquidating the interest account,
after which all payments would cease through the extinction of the
debt.
The Imperial Maritime Customs already intrusted, as we had proposed, with
the payments of the capital, would likewise be intrusted with the
payments on account of interest. As to the amount of the annual
interest, it would be understood that it would decrease proportionately
every year, according to the progressive reduction of the capital.
We have the honor to request your excellency to kindly inform us what you
think of the plan we suggest above to pay off both capital and interest,
or if in your opinion it would not be better to consider a portion of
the 15,000,000 taels paid annually as an installment on the capital to
be paid off, and the balance as an installment on the interest. These
details require a careful examination, and demand a previous and full
understanding between the parties.
China having thus shown its good will in assenting to the demands of the
powers on the question of the indemnity, and in taking all the necessary
steps to insure an integral payment of it, we hope to have soon the
satisfaction of learning that the powers are in a position to fix an
early date for the evacuation.
We have the honor to request your excellency to kindly communicate the
above to the representatives of the powers.
