Mr. Rockhill to Mr. Hay.

No. 112.]

Sir: I have the honor to inclose herewith copy of a note which I sent to-day to the dean of the diplomatic corps asking him to communicate to the represenatives of the powers the formal suggestion of the United States to submit the question of the indemnity to be asked of China to the Arbitral Tribunal of The Hague.

* * * * * * *

Since my telegram to you of the 6th instant no other powers save those therein indicated have informed the conference that they agree to limit their claims-to July 1 and will accept 4 per cent interest. I am informed by the French minister that his Government accepts the limitation of the indemnity to 450,000,000 taels, but he has not stated that it accepts the interest specified. France’s acceptance is,’ furthermore, conditional on the agreement of the powers to a jointly guaranteed loan. Russia, I have reasons to believe, entertains exactly the same views.

The Japanese minister tells me that his Government can not agree to 4 per cent interest, as it can only borrow at 5 per cent.

The moment is the best, I think, I could have chosen for the formal submission of your proposal.

I am, etc.,

W. W. Rockhill.
[Inclosure.—Translation.]

Monsieur le Ministre et Cher Doyen: During the negotiations my predecessor and I have on several occasions had the honor to inform our honorable colleagues that our Government hoped that in case the powers should unfortunately be unable to reach an agreement on the question of the indemnity to be asked of China they would be able to agree to submit this question to the Arbitral Tribunal of The Hague.

In view of the apparent impossibility of reaching a settlement of this question satisfactory alike to all the powers, my Government, in the hope of hastening its solution, has ordered me to formally propose to the representatives of the powers to submit it to the Arbitral Tribunal of The Hague.

Begging you, Monsieur le Ministre et cher Doyen, to lay the proposition of my Government before the representatives of the powers, who will be pleased to take it in consideration, I avail myself of this occasion to renew to you the assurance of my highest consideration.

W. W. Rockhill.