Mr. Hay to Mr. Rockhill.


(Mr. Hay states that the aggregate sum mentioned appears exorbitant, and repeats that this Government is willing to reduce by one-half its already reasonable claim if the other powers will make similar reduction. There are grave objections to joint guaranty, but the President would agree to it, subject to the action of Congress, rather than subject China to the necessity of paying so enormous a commission. Mr. Rockhill’s suggestion in regard to reducing the total amount, with compensating commercial advantages, is strongly approved.

The President wishes Mr. Rockhill to propose that each power accept bonds of China without international guaranty. Such bonds would be accepted by this Government at 3 per cent, and without commission, for its share of indemnity. * * *)