393.1123 Lincheng/153: Telegram

The Minister in China (Schurman) to the Secretary of State

[Paraphrase]

223. A committee has been appointed by the diplomatic corps to consider basis for recommendations as to demands for settlement of the Lincheng affair by the Chinese Government. The committee consists of the Ministers of Belgium, France, Great Britain, Italy, Netherlands and the United States and the Chargé of Japan.

This committee has met twice and has agreed to making demands under three headings: (1) Compensation; (2) guarantees for the future; (3) sanctions. The committee will meet again tomorrow morning.

There has been little progress as to guarantees and sanctions. Under the first heading, however, it is prepared to include direct losses of objects of value, loss of earnings, personal injury including death and temporary or permanent decreased earning capacity. All agreed on these points.

All but myself also agreed to a proposal that in addition to the kinds of compensation mentioned above there should be an indemnity to each captive for each day he was held, this compensation to be at the rate of $500 for each of the first three days and $100 for each day thereafter. The reasons why I did not agree on this point with the rest of the committee are as follows: [Page 659]

1.
Such an indemnity added to the exhaustive compensation for which provision is made would not, in my opinion, be allowed by a court of equity or justice.
2.
It brings in a new principle for the assessment of damages against the Government of China.

I ask for instruction in this matter. The British Minister, who is in favor of the indemnity, is also cabling to his Government.

Schurman