Mr. Rockhill to Mr. Hay.

[Telegram.—Paraphrase.]

(Mr. Rockhill reports that the proposal of the United States regarding the scaling of the indemnity has been practically declined of by the action of the foreign representatives, who have, by a vote, decided that the amount of expenses actually incurred by the powers, as well as the claims of private persons, shall be demanded of China as an indemnity. The question whether it would be advisable to limit the amount to 450,000,000 taels, by which all claims up to July 1 are covered, was reserved, thus making it possible that all subsequent claims for military occupation will be stopped. An increase of import duties to 5 per cent, effective and without compensating commercial advantages, for the purpose of supplying funds for the indemnity, was agreed to by all the plenipotentiaries except Mr. Rockhill, who insisted for compensating commercial advantages.)