Mr. Conger to Mr.
Hay.
Legation of the United States,
Peking, China, November 21,
1903.
No. 1435.]
Sir: I have the honor to inclose copy and
translation of a plan submitted to his colleagues by the Belgian
minister, proposing to continue to receive from the Chinese Government
payments of the indemnity on a silver basis, but leaving the difference
between this and a gold basis to be adjusted later, and granting an
extension of time for the payment of this difference.
If all the governments interested agree to this, it is to be offered to
the Chinese Government on condition that gold bonds shall be immediately
signed and delivered.
I am informed that all the governments have signified their willingness
to adopt this plan except Russia, the representative of which has
telegraphed his government for instructions.
I have, etc.,
[Inclosure
1.—Translation.]
Mr. Joostens to
the Dean of the diplomatic
corps.
Belgian Legation,
Peking, October 1,
1903.
Mr. Dean: A question which should have been
settled long ago remains still in suspense. I speak of the signing
of the national bonds of the indemnity. All the powers which signed
the protocol of Peking have the same interest in seeing this settled
without further delay. The powers, especially those which have
capitalized the portion of the indemnity due to them by issuing a
loan, must be put in possession of some instrument by which the
settlement of this loan may be guaranteed, and the powers, who at
the present time desire to do the same thing, would find themselves
much embarrassed by the state of uncertainty in which we remain.
Moreover, several powers have shown the desire to help China in the
execution of her obligations, but it has not been possible for them
to agree on the manner in which their friendly desire should be
manifested.
These various considerations have decided my government to direct me
to submit to our honorable colleagues the proposition in the nature
of a compromise, the text of which you will find transmitted with
this letter.
If this proposition is favorably received by all the powers
interested, my government will adopt it on the condition that the
total amount of the payments made by China shall be equal to the
whole sum of her debt calculated on a gold basis.
I would be very grateful to you, Mr. Dean, if you would kindly bring
the preceding to the notice of our honorable colleagues, with the
request that they refer it to their respective governments.
I beg of you, Mr. Dean, to accept, etc.,
[Subinclosure.—Translation.]
On the one hand the Chinese Government shall sign immediately the
national bonds payable in gold, as provided by the protocol of the
7th of September, 1901,
On the other hand, the undersigned powers, desiring to help China in
the execution of her obligations, consent that the payments of the
indemnity, when they fall due, shall continue to be made as
heretofore; that is to say, in silver, at the rate of exchange of
the day of each partial payment, and the said powers
[Page 178]
grant to China the time necessary to
extinguish in this manner the entire amount of the indemnity which
is due to them.
As the true value of the monthly payments made by China depends on
the rate of silver, it is agreed that every time that the difference
between the sums paid in and the sums due to the undersigned powers
shall be in favor of the latter this difference will remain due to
the said powers and will bear the same interest as the principal of
the indemnity.
On the other hand, whenever this difference shall be in favor of the
Chinese Government the sums paid in excess shall immediately be
deducted from the total of the sums remaining due by China to the
undersigned powers.
As the Chinese Government is required to make monthly payments, the
representatives of the undersigned powers shall give instructions to
their delegates on the bankers’ commission at Shanghai for the
latter to fix the rate of exchange at the time of each payment,
instead of awaiting the end of the period of six months.
If the total of the payments made by China up to the expiration of
the year 1940 does not reach the sum necessary to make up in gold
the total amount due to each of the undersigned powers, the Chinese
Government shall continue to make monthly payments until the
complete amortization of the indemnity, both capital and
interest.
In this eventuality the bankers’ commission at Shanghai shall draw up
for payments to be made after 1940 a new amortization table, unless
the Chinese Government prefers to use the liberty, which is conceded
to it, of freeing itself immediately by paying at once.
