493.11/939: Telegram
The Secretary of State to the Minister in China ( Schurman )
258. Supplementing Department’s telegram No. 256, December 24, 4 p.m.
Conversations with French Embassy on the gold franc question suggest that the French proposal which was the basis of Diplomatic Body’s identic telegram of December 1124 may have contemplated placing a stop not upon all customs revenues in the hands of the Bankers Commission but only upon such portion thereof as would be necessary to meet in gold the Boxer indemnity payments due to France, Belgium, Italy and Spain. This would involve considerations different from those communicated to you in Department’s No. 256, which dealt with the broader proposal for a complete embargo. It seems clear that Commission of Bankers is to be considered as the agent of the interested Powers for the purpose and to the extent of assuring payment of indemnities due under the 1901 Protocol as construed by the Powers.
Pending more definite word from French Embassy as to its Government’s actual intentions, you may join with your interested colleagues in directing the Bankers Commission to withhold such sums as may be necessary to meet French and other franc payments of indemnity in gold, turning over to Chinese Government only such surplus as may remain thereafter.
Please notify French Legation without delay of the purport of these instructions, and also advise British Legation for its information.