Mr. Rockhill to Mr. Hay.
(Mr. Rockhill reports views of the British Government as communicated to its representative at Peking in regard to indemnity. It is absolutely opposed to joint guaranty advocated and pressed by Russia and France. The reduction to 200,000,000 taels, proposed by the United States, is considered by it too generous, and it suggests that it be fixed [Page 372] at 400,000,000 taels, by which all claims, up to July 1, are to be covered; it would allow no claim for military occupations after that date; the powers would receive from China bonds at par, bearing 4 per cent interest, and a sinking fund at a rate of one-half of 1 per cent per annum would be provided. Provisions for payment would be made from an increase of 5 per cent effective on foreign imports, and the proceeds of native customs, and the tax on salt. China would issue three-fourths of the bonds at first, and the remainder after improvement of her finances.).