File No. 893.51/1800
Minister Reinsch to the Secretary of State
Peking, August 28, 1917, 4 p.m.
Your August 22, 4 p.m. The statement of British Chargé d’Affaires contains the following misconceptions: Indemnity payments have not been postponed; customs duties have not been raised to 5%.
The Allied representatives are ready to agree to indemnity postponement for five years without interest, with the exception of Russian Minister who has not yet received instructions. 5% effective customs duties in principle agreed upon, but several representatives make incidental counter demands, particularly French Minister who, I am confidentially in formed, desires to obtain further special advantages in Yunnan.
The Chinese Government has a surplus of 7,000,000 dollars proceeds of customs duties, but though the other Ministers agree to release two millions Italian Minister refuses until certain irrelevant demands are satisfied. * * *