The Secretary of State to Minister Rockhill.

[Telegram—Paraphrase.]

(Minister Rockhill is instructed to send the following instructions to the consul-general at Canton, unless he sees good reason for retaining supervisory control of the Lienchou adjustment:

Your 168 received. Lienchou case rests in your handling for final adjustment. Adequacy of punishment must be determined by yourself. This Government has under favorable consideration claims for indemnity for relatives of victims of massacre and will present these claims to China for payment when formulated. Make no financial settlement of case which will preclude these claims.

Mr. Rockhill is instructed to communicate the above to the Chinese Government and to state that payment of these demands will be insisted on as a necessary part of the settlement of the Lienchou case, this payment being regarded as exemplary damages to which China, by the failure of her officials to prevent this outrage, has made herself liable.)