Mr. Rockhill to Mr. Hay.
(Mr. Rockhill reports that the following agreement has been reached by the diplomatic corps in regard to the indemnity: The revenues from native customs, the available balance of maritime customs and salt tax, without any foreign control over the service as it exists, and an increase of tariff duties to 5 per cent effective ad valorem will be reserved for the payment of interests. He asks approval of his action in agreeing to the advance of duties, which he did, because nothing better could be obtained on the following conditions, that the tariff shall be revised and specific duties substituted for ad valorem duties; that China will participate financially in the improvement of water approaches of Shanghai and Tientsin, and that the regulations on inland navigation shall be revised so that no class of shipping shall be excluded. The 5 per cent duty has been agreed to by all the powers without any commercial compensation, and any partial abolition of likin dues is opposed by Great Britain.)