A meeting of the representatives of the powers interested was recently
called to consider the proposal of the Waiwu Pu. Under the general
instructions given me on the matter by the Department, I agreed to the
Chinese proposals as equitable and just. The other ministers also
agreed, subject to the instructions of their governments. The Russian
chargé d’affaires, however, raised objections in view of his government
having informed China previously that it would take its share of the
indemnity in silver. He agreed finally to submit the proposals to his
government, but I fear this small matter may drag for some time.
[Inclosure.—Translation.]
Na-T’ung to
Baron von Mumm.
Twenty-first of the ninth moon of the thirty-first year
Kuanghsü (October 19, 1905).
I have already expressed to your excellency my sincere thanks for
your helpful assistance in settling the indemnity question. But
there remains a last point on which I am desirous that your
excellency should, before your departure, lend me your assistance,
so that this matter shall offer no further difficulty. This
unsettled point relates to the conversion into gold, at the rate of
June 30, of the sums paid in silver during the first six months of
the current year, and to the difference between the rate of gold
fixed by the banks and that which had been ascertained by the
Shanghai taot’ai.
In an interview which your excellency had on this subject with the
Waiwu Pu on the 20th of the month before last, you said that the
sterling rate ascertained by the Shanghai taot’ai of 2 shillings
7.8125 pence for the tael, was inexact, and that the rate for
telegraphic transfers on the 30th of June was, in reality, 2
shillings 7.75 pence; that the difference according to the rate was,
not £30,000, but only £27,000; that in your opinion this difference
of £27,000 could be borne half by the powers and half by China, but
that you had not yet reached any agreement with your colleagues on
this point.
As a considerable length of time has elapsed since this interview, I
presume you have reached a conclusion, and if the foreign ministers
all agree to the division by halves, I shall not insist, on my side,
on my views. Therefore, in view of the difference between the gold
coins of the various powers, and that sterling coin can not be
uniformly used for all, I would be obliged if your excellency would
have drawn up, at a rate calculated for the coin of each country, a
list of the sums of which each power would relinquish a half, and to
send it to me for examination and consideration.
On the other hand, as regards the payment of the indemnity, there are
yearly two terms; the one at the end of June includes only interest
and is the smallest; the other, at the end of December, includes the
sinking fund and interest and is the largest. The Chinese method of
payment consists in calculating the lump sum for sinking fund and
interest for the whole year and dividing that whole into twelve
equal fractions which are paid monthly. It results, therefore, that,
if on the 30th of June the amount of the sums paid during the first
half year is added up, a surplus will always be found. This surplus
is nothing else than the anticipated payments on which, according to
the new arrangement, China is to be allowed 4 per cent interest.
Now then, when an agreement has been reached on the rate, if, after
each power had made its calculations, a surplus is found to exist,
it will be proper to request the bankers of the interested powers to
allow on this surplus interest at 4 per cent from the 30th of June
to December 31.
I shall be obliged if your excellency would reach an understanding as
soon as possible with your colleagues and inform me of the
result.
(Compliments and cards.)
