File No. 493.11/497.
Minister Reinsch to the Secretary of State.
Peking , March 24, 1914 .
Sir: In continuation of my despatch No. 159 of the 18th instant, I have the honor to report that it seems possible that the Governments of Great Britain and Germany, and perhaps some other powers, may be willing to refuse definitely to present to China claims for indirect damages, without regard to the action taken by certain others of the powers. The attitude heretofore adopted by these two Governments has been practically identical with that already approved by the Department in the case of American claims: namely, the prior presentation of claims for direct losses and the presentation of claims for indirect losses subject to the payment of such claims by China to some other power.
[Page 91]In the event of the British and German Governments expressing their willingness to take the action contemplated above, I have the honor to inquire whether the Department would authorize me to take a similar step with regard to the American claims concerned. There are important considerations in support of such action, not the least of which is that it comports better with the dignity of the United States to abandon definitely and voluntarily claims the payment of which by China it has consistently opposed throughout the recent negotiations as of doubtful propriety, rather than to make the presentation of such claims contingent on the less scrupulous action of any other power. There is no doubt that independent action by Great Britain, Germany and the United States along the lines indicated would materially strengthen the hands of the Chinese Government in resisting the demands of those powers which are now pressing for the payment of indirect claims and therefore opposing the immediate payment by China of liquidated claims. It would thus have practically the same effect as a decision rendered by a court of arbitration declaring those claims unfounded in equity. Apart from questions of policy there remains the question of the abstract justice of demanding payment by China of the claims concerned. A dispassionate examination of these will, I believe, convince the Department that they are of a nature which no Government would for a moment entertain unless compelled to do so in consequence of its own impotence.
Of claims based on indirect and non-proximate damages suffered, the Legation has received only four. In view of the prevailing doubt as to their ultimate presentation* * * I enclose abstracts of the four claims in question * * *.35
In conclusion I have the honor to request that the Department’s instructions in the premises be transmitted by cable. I have [etc.]
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