The representatives of the powers are not agreed as to the kind of answer
to be given, or even as to the necessity of one, and therefore no action
is likely to be taken by them.
[Inclosure.]
Secretary Bankers’
commission to Dean of diplomatic
corps.
Shanghai, August 8,
1904.
Sir: I have the honor to forward to you
herewith copies in English and French of the correspondence which
has lately taken place between the commission
[Page 180]
of bankers and the Shanghai taotai,
and also a copy of the statement referred to therein.
In view of the near approach of the close of the period of grace
granted to China in which to pay off the arrears of 1901, the
commission desires your excellency to place this matter before your
colleagues of the diplomatic corps, in order that a definite reply,
based on their instruction, may be sent to the taotai.
The question of the gold or silver basis of the indemnity has now
been in dispute for nearly three years, and the settlement of this
question becomes urgent, since at the end of the present six months
the already heavy arrears due by China to the powers will be
increased by an amount in gold representing, at the rates of
exchange of the protocol, haikwan taels 9,000,000.
I have, etc.,
H. M. Bevis,
Delegate for Great Britain and Portugal and
Secretary of the Bankers’ Commission.
[Subinclosure.—Translation.]
His Excellency Yuan
Shou-Shung to Mr. Bevis.
Monsieur le Secretaire: I have the honor to
acknowledge receipt of the letter recently addressed to me by Mr. G.
Henriot, in which he kindly sent me a statement relating to the
payment of the indemnity for the first six months of the third year,
namely, from the 31st December, 1903, to the 30th June, 1904.
In accordance with the protocol and the table of amortization, the
amount of the indemnity to the various powers was converted into
silver at the rate of exchange of the 1st April, 1901, per haikwan
tael, and an annual sum of taels 18,829,500 (being the amount of the
amortization and interest, plus taels 3,000,000, the portion of
arrears due for the first period) has been paid in full on account
of the first and second years. I informed Mr. Buse and Mr. Perreau
to this effect on the 5th of January and the 14th July, 1903.
This year the same sum of haikwan taels, 18,829,500, has to be paid
on account of the capital and interest in twelve monthly payments of
taels 1,820,000 per mensem. Six of these monthly payments have been
made, realizing a sum of taels 10,920,000, so that nothing is
wanting to complete the payment for the first six months of this
year.
However, I find certain discrepancies in the account rendered to me
by the commission, which I have pointed out below:
- First. The protocol rate for the haikwan tael has
certainly been put at the beginning of the statement, but
later on the rate of the date for payment of the coupon,
namely, the 30th June, 1904, has been added.
- Second. Against the amount of taels 9,000,000, the arrears
for the first period, a sum of taels 3,000,000 per annum was
paid for the last two years (i. e., the first and second
year), and the interest should be reduced “pari passu” with
the capital; but in the statement the amount still appears
as haikwan taels 9,000,000, so that taels 180,000 is claimed
as interest for six months on this sum of haikwan taels
9,000,000.
- Third. The amount of the amortization and interest for the
last two years (the first and second year), and taels
3,000,000 per annum on account of the arrearages, as well as
the capital and interest for the first six months of this
year, have been more than paid; but in the statement a sum
of over taels 50,000 is claimed for interest at 4 per cent
on the amount in arrears on the 30th December, 1903, and a
sum of over taels 1,408,000 is claimed as being in arrears
on the 30th June, 1904.
These are the three principal points which are not in accordance with
the protocol, and I am unable to understand why Mr. Henriot has
written to me demanding payment of a difference. I really dare not
accede to this request.
I have the honor to beg of you, sir, to kindly give your attention to
this reply.
Furthermore, with regard to the payment of taels 3,000,000 per annum
on account of the deferred interest which I made for the first and
second year, the interest on these arrears should be reduced by
interest at 4 per cent on my monthly installments, as I proposed in
a detailed account rendered on the 29th December, 1903; and at the
same time I sent-a sum of taels 139,600, the amount of the balance
of interest due on the arrears, to the commission. They, however,
returned this sum to me without assigning any reason for their
refusal to accept it. I was greatly astonished, and I wrote in July
to Mr. Perreau asking for an explanation, but he has not favored me
with an answer on this subject.
[Page 181]
Now, sir, that you have taken over the duties of secretary to the
commission I shall be greatly obliged if you will have the goodness
to inform me of what steps. I must take in order to act in a regular
manner.
Yuan Shou-Shung,
Taotai of the Customs of
Shanghai.
July 21,
1904.
