Mr. Rockhill to Mr.
Hay.
No. 123.]
Commissioner of
the United States to China,
Peking,
China, June 22,
1901.
Sir: For your information in connection with my No.
118 of the 15th instant, and in view of the possibility of some action being
taken by the representatives of the powers to secure Japan against loss in
[Page 251]
the settlement of hex claims
against China, I have the honor to inclose herewith a copy of the formal
memorandum sent to the diplomatic body yesterday by the Japanese minister,
showing that the actual rate of interest on Japanese 4 per cent bonds, both
at home and abroad, is above 5 per cent, and that she will suffer a loss of
at least 1 per cent in the interest on her claim by accepting Chinese bonds
bearing interest at 4 per cent.
I am, etc.,
[Inclosure.—Memorandum.]
Legation of Japan in China,
Peking, June 21,
1901.
According to the information in my possession, the average quotation in
London of Japanese 4 per cent bonds for the last five months was 79.18
per cent, and since the 8th of May it has been invariably below 78 per
cent. The current quotation in Tokio of Japanese 5 per cent bonds is
86.20 per cent, so that the actual rate of interest on Japanese bonds is
above 5 per cent both at home and abroad.
Japan’s claims for indemnity having been calculated on the basis of
immediate payment, if she is to receive Chinese bonds bearing interest
at 4 per cent she will actually suffer a loss of at least 1 per cent in
the interest on her claims, which amounts to 50,074,000 yen up to the
1st of July. Consequently, if Japan’s claims are paid at once, they are
50,074,000 yen, but if paid on 4 per cent bonds with the system of
amortization adopted by the corps diplomatique, they are 57,942,247
yen—that is to say, an increase of 15.713 per cent of the original
claims, which is 7,868,247 yen, equivalent to 5,590,389 Haikwan taels at
the rate of Haikwan tael 0.7105 for 1 yen.
