493.11/1703

The Acting Secretary of State to the Minister in China (Johnson)

No. 1115

Sir: The receipt is acknowledged of the Legation’s despatch No. 2018 of March 27, 1933, transmitting a copy of a note under date February 4, 1933, received by the Legation from the Ministry of Foreign Affairs61 requesting that the payments due on the American share of the Boxer Indemnity for the year beginning March 1, 1932, (during which year all American Boxer Indemnity payments were postponed) be made in part during 1941 and in part during 1946 instead of entirely during the year 1946 as was indicated in the Ministry’s note of April 27, 1932.62

It is the understanding of the Department that as the portion of the American share of the Boxer Indemnity which was remitted by the Executive Order of December 28, 1908 was set aside by the Chinese [Page 677]Government and devoted as usual, throughout the period December 1, 1917 to November 30, 1922, to the purposes contemplated in the Executive Order under reference, payments due on this portion of the Indemnity during the year of postponement beginning March 1, 1932, should be made up during the year beginning March 1, 1941. As the payments due on the remaining portion of the American share of the Boxer Indemnity were in fact postponed during the five-year period mentioned above, accrued payments for the year of postponement beginning March 1, 1932 should be made up during the year beginning March 1, 1946.

The understanding of the Department, as indicated above, was made known to the Treasury Department in a letter under date May 26, 1933.63 By reference to the attached copy of a letter under date June 12, 1933,63 it will be noted that the Treasury Department concurs in the views of this Department in regard to the subject under discussion.

In view of the foregoing it is believed that the agreement outlined in the note of April 27, 1932, from the Ministry of Foreign Affairs should be modified in accordance with the suggestions contained in the Ministry’s subsequent note under date February 4, 1933.

Very truly yours,

William Phillips
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