Mr. Rockhill to Mr. Hay.
(Mr. Rockhill reports that the diplomatic corps agreed to inform the Chinese plenipotentiaries that the sum total of the disbursements of the powers amount to about £67,500,000, including military expenses and private claims down to July 1; that this amount will considerably increase after that date if military occupation is prolonged. They will ask China to formally admit liability and state what financial measures it proposes to take to pay debt.
Mr. Rockhill agreed to the note with the formal understanding that it was not in any sense a demand, nor did it represent the final figure of indemnity to be demanded, but was merely a means of eliciting formal reply of China as to limit of ability to pay and measures it proposes to take.
The French and Russian ministers are instructed to urge loan with joint guaranty; Austrian and Japanese ministers are favorable to loan with guaranty; British and German ministers are noncommital; the others are without instructions, but will probably favor it.
Mr. Rockhill held out little probability of his Government accepting, stating that he saw grave difficulties in the way of joint guaranty; he thinks it should be opposed, unless, perhaps, we got a reduction of [Page 371] indemnity to about £40,000,000, with compensating commercial privileges. China will, it is estimated, have to pay 23 per cent commissions and 7 per cent interest for loan without guaranty; with guaranty, 7 per cent commission and 4 per cent interest.
Requests full instructions.)