Minister Rockhill to the Secretary of State.

No. 35.]

Sir: In further reference to Mr. Coolidge’s dispatch, No. 1815, of February 24 last, and my dispatch, No. 33, of July 15, I have the honor to transmit to you herewith a translation of the note handed to the Prince of Ch’ing by the representatives of the powers accepting the proposals for the settlement of the indemnity due under the final protocol of September 7, 1901.a

The Department will note that under this arrangement there will be no duties for the commission of bankers to discharge, as henceforth China will make payments on the dates fixed by the protocol to each of the powers of the amount specified in the table of amortization attached thereto. It would seem that this only necessitates that the Chinese Government, or rather the Shanghai taot’ai, should be informed by the consul-general of the United States that the Government of the United States wishes hereafter that the various telegraphic transfers of the sums due it which shall be made by China shall be deposited directly in the Treasury of the United States at Washington to the credit of the account of the Chinese indemnity fund, 1900. The contract entered into between the Secretary of the Treasury of the United States and the International Banking Corporation, by which the latter was to receive one-half of 1 per cent for discharging the duties of delegate on the commission of bankers and of agent for the Government of the United States for the transmittal of the amounts due the latter, has, in my opinion, lapsed, and the bank should be informed of this fact. This seems to be more necessary since the payment which was made on the 18th of this month by the Chinese Government to the United States in settlement of arrears of the indemnity referred to in the inclosed note was made by telegraphic transfer, not directly into the Treasury of the United States, but to the International Banking Corporation, which in turn deposited it in the United States Treasury. This appears to be an unnecessary and round-about way of carrying out the provisions of the arrangement.

I have, etc.,

W. W. Rockhill.
  1. Not printed. See inclosure to No. 113, p. 156.