Mr. Hay to Mr. Rockhill.

[Telegram.—Paraphrase.]

(Mr. Hay instructs Mr. Rockhill to urge arbitration by The Hague tribunal or a reduction of the amount of indemnity, which is considered excessive, and, it is feared, will prove disastrous to China, if there remains the least possibility of the suggestion of the United States being considered; but if there is no hope of obtaining this the United States have no wish to cause indefinite delay. Gives his approval of the Japanese proposition of an increase of duties on imports, with abolishment of likin dues or other compensations.)