File No. 2413/208–209.
The Secretary of State to Minister Rockhill.
Washington, December 31, 1908.
(Mr. Root informs Mr. Rockhill that the President, in an Executive order dated December 28, 1908, has directed that the remission of the indemnity commence January 1, 1909. Payments already made under original bond are credited as against debt of $13,655,-492.69, with interest at 4 per cent beginning July 1, 1901, in lieu of original sum specified in bond. Says that after such credits and including therein the sum of $85,223.04, which it is assumed will be paid on January 1, 1909, there will remain on that day to be paid [Page 75] to and retained by the United States $9,644,367.60, and that such indebtedness would be satisfied with interest by annual payments of $539,588.76 for a period ending in 1940. Accordingly, after January 1, 1909, from the several payments made under the bond of December 15, 1906, Mr. Root states that there will be retained and paid into the Treasury only sums aggregating $539,588.76 in each year, and the remainder of the regular payments by China under the bond of December 15, 1906, will be returned by indorsing back the drafts therefor or otherwise and thus remitted to the Government of China. Says the provision contained in the original bond for an adjustment of interest because payments made monthly instead of semiannually will continue to be applicable to the payments under the new arrangement.
Mr. Root states that the draft regulations for the education of Chinese students in the United States is acceptable to this Government, subject to the slight amendments to which he refers in his No. 1034, and directs him to communicate the foregoing to the Wai-wu-Pu, expressing the hope of department that the method of remission will prove satisfactory to the Imperial Government of China.)