The Secretary of State to Minister Rockhill.

No. 81.]

Sir: I have to acknowledge the receipt of your dispatch No. 134, of October 27 last, in relation to a difference of opinion between the diplomatic representatives at Peking and the Chinese Government as to the amount of indemnity paid by China during the first six months of this year, and in relation to the request of the Chinese Government that it be allowed interest at the rate of 4 per cent from June 30 to December 31, 1905, on any surplus payment that may be found to exist.

In reply I have to say that it would seem, on the facts stated by you that the Chinese proposals, as explained in your dispatch, are, as you say, equitable and just.

I am, etc.,

Elihu Root.