tions therein contained with the object of meeting the views of the Delegates. CHINESE GROUP. Referring to the original declaration of the Consortium, made upon its meeting at New York, October 15, 1920, expressing its desire to receive co-operation from a Chinese Banking Group, it is the sense of the Council that the Peking Representatives of the Consortium be requested to consider again measures for undertaking at some appropriate moment conversations with Chinese Bankers in order to discuss possible means looking to the formation of a Representative Chinese Banking Group organised to co-operate with the Consortium. The meeting then adjourned. C. S. ADDIS R. TH. DE LA CHAUME JOINT RESOLUTION OF CONGRESS AUTHORIZING THE PRESIDENT AT HIS DISCRETION TO REMIT TO CHINA FURTHER PAYMENTS ON THE BOXER INDEMNITY & 493.11/960a: Telegram 81 The Secretary of State to the Minister in China (Schurman) WASHINGTON, January 18, 1924—3 p. m. 18. With reference to the Department's instruction No. 261 of August 1, 1921,82 a joint resolution was introduced in the Senate on December 6, 1923, in language identical with that of the resolution introduced in 1921, authorizing the President in his discretion to remit the balance of the Boxer Indemnity, such remission to begin as from October 1, 1917, and to be at such times and in such manner as the President shall deem just. The Department, in view of the actual situation and present tendencies in China, desires your opinion as to what is likely to be the effect produced by the passage of this resolution both upon the minds of Chinese and Americans residing in China; also as to its bearing, beneficial or adverse, upon American interests in that country. HUGHES 81 For previous correspondence regarding the Boxer indemnity, see Foreign Relations, 1923, vol. 1, pp. 592 ff. "Not printed. 493.11/961: Telegram The Minister in China (Schurman) to the Secretary of State PEKING, January 21, 1924-2 p. m. 40. Your 18, January 18, 3 p. m. 1. As regards the policy of remitting to China the remainder of Boxer Indemnity permit me to say at once that I have been and am strongly in favor of it. This also the sentiment of overwhelming majority of Americans in China. In view of all the past American legislation and of utterances official and unofficial the Chinese also expect it though the Chinese Government has refrained from any allusion to the subject. 2. A practical difficulty at the present time is that there is no agency to receive the funds representing the Chinese people as a whole for whose benefit remission would be made here. From onethird to one-half of the provinces are independent of Peking Government. People of these provinces would have just ground for complaint if the benefits of the returned funds were monopolized by the rival if larger group of provinces which accept the Peking Govern ment. 3. Another practical difficulty is that Peking Government is in desperate financial straits. It cannot collect taxes, yet military governors of the provinces and the other military commanders insist that it shall make them appropriations for their forces which are practically personal armies. Politicians too get public funds for their own purposes. If in these circumstances the remainder of the indemnity funds were liberated for the uncontrolled use of the Peking Government at the present time they would quickly disappear through these military and political channels greatly to the injury of the Chinese people. Both Chinese and Americans would however oppose an unconditional grant of the balance of the Boxer Indemnity funds to the Peking Government. 4. The time is inopportune for the enactment of the proposed legislation. Not only does the Chinese Government persist in its refusal to pay loans and debts to American citizens, not only were American ships engaged in lawful traffic last season on the Yangtze fired on, but today American treaty rights in regard to trade and commerce are violated in several provinces and 6 American missionaries within the last 60 days have been attacked or carried off or murdered by bandits or soldiers. Against these enormities the American Government has protested. The display at this juncture of the generosity and friendship towards China contemplated in the joint resolution introduced in the Senate December 6, 1923, could not fail seriously to weaken the force of these protests both with the Chinese Government and the Chinese public opinion. 5. If the passage of the joint resolution involves the relinquishment by the United States of the position it has maintained in relation to the Chinese Maritime Customs since the indemnity was imposed upon China in 1901, I should consider this result under existing conditions in China gravely detrimental to Chinese interests. China must soon face the great issues of unification, stabilization of government, financial rehabilitation, disbandment of troops, etc., and she will need the help of America. Until these questions are disposed of America, should not either in her own interest or in the interest of China part with any of the leverage she now enjoys in common with other nations. In comparison with the British, French and Japanese our diplomatic position has already been impaired by our nonparticipation in the control of the salt revenues. To turn over to these nations the power and influence we now share with them in connection with the customs revenues would be a fatal mistake. 6. There is an inherent difficulty in combining with an unconditional act of grace like the remission of the remainder of the indemnity some stipulation or at least understanding with regard to the uses to which the funds shall be put. Though it was overcome in 1908 it would be much more difficult to overcome today in a divided China with an impotent government and a racially self-conscious people. Yet the great majority of Americans in China and practically all thoughtful Chinese insist on this feature as an essential part of the program for the remission of the remainder of the indemnity. This is therefore an additional consideration in favor of delay. 7. In connection with this subject I have the honor to refer to my despatch number 1793 dated August 29, 1923.83 8. Warmly as I support the policy of remitting the indemnity I am of the opinion for the reasons set forth that the best interests both of the United States and of China demand that for the present the matter should be left in statu quo and that American guardianship of the funds should continue unimpaired. SCHURMAN 493.11/961 No. 638 The Secretary of State to the Minister in China (Schurman) WASHINGTON, April 22, 1924. SIR: With reference to the Legation's telegram No. 40 of January 21, 2 p. m., concerning the proposed remission of the Boxer Indem "Not printed. nity, there is enclosed herewith, for the information of the Legation, a copy of the “Hearings before the Committee on Foreign Affairs, House of Representatives, on H. J. Res. 201", which provides for the remission of the balance of the Indemnity. 84 Your views with respect to the advisability of such action at the present time received most careful consideration. The legislative aspect of the situation, however, was such as seemed to present the immediate alternatives of supporting the Resolution at the present time, and opposing its passage-a course which appeared likely to defeat entirely the policy of remission. While fully appreciating the force of your views as to the danger of misconstruction which might be placed by the Chinese upon such action by this Government at the present time, I therefore deemed it preferable to give my support to the Resolution, and instructed the Chief of the Far Eastern Division to appear before the House Committee for this purpose. I am [etc.] CHARLES E. HUGHES 493.11/997 The Secretary of State to the Chinese Minister (Sze) WASHINGTON, June 14, 1924. SIR: I have the honor to enclose herewith a copy of an act of Congress, approved May 21, 1924, whereby the President is authorized, in his discretion, to remit to China the balance of the Boxer Indemnity, such remission to begin as from October 1, 1917, and to be at such times and in such manner as the President shall deem just, the intent of the Congress, as stated in the preamble to the Act, being further to develop the educational and other cultural activities of China. Accept [etc.] CHARLES E. HUGHES [Enclosure] Joint Resolution of Congress, Approved May 21, 1924, Providing for the Remission of Further Payments of the Annual Installments of the Chinese Indemnity WHEREAS by authority of a joint resolution of Congress approved May 25, 1908,85 the President of the United States was authorized to remit unto China the sum of $11,961,121.76 of the Boxer indemnity fund accredited to the United States, which sum the President on December 28, 1908, duly remitted and which, at the request of China, was specified to be used for educational purposes; and 468th Cong., 1st sess.; not printed. 85 Foreign Relations, 1908, p. 65. WHEREAS it is deemed proper as a further act of friendship to remit the balance of said indemnity fund amounting to $6,137,552.90 in order further to develop the educational and other cultural activities of China: Now therefore be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the President is hereby authorized, in his discretion, to remit to China as an act of friendship any or all further payments of the annual installments of the Chinese indemnity due under the bond received from China pursuant to the protocol of September 7, 1901,86 as modified by Executive order on the 28th day of December, 1908,87 pursuant to the authority of the joint resolution of Congress approved May 25, 1908, for indemnity against losses and expenses incurred by reason of the so-called Boxer disturbances in China during the year 1900, such remission to begin as from October 1, 1917, and to be at such times and in such manner as the President shall deem just. 493.11/1014 The Chinese Minister (Sze) to the Secretary of State WASHINGTON, June 14, 1924. SIR: I have the honor to acknowledge the receipt of your note of June 14th, 1924, in which you are good enough to convey to me the welcome information that the President has approved the Joint Resolution passed by the American Congress to provide for the remission of further payments of the annual installments of the Chinese indemnity. I hasten to express to you the thanks of the Government and people of China for this signal proof of American friendship for China. The Chinese Nation will ever hold this generous action on the part of the United States in grateful remembrance. The first remission by the American Government in 1908 enabled the Chinese Government to devote the annual payments of the indemnity thus set free to educational purposes. The results of the experiment have convinced the Chinese Government of the wisdom of the step taken in this direction. It is the purpose of the Chinese Government to continue the policy with the further payments remitted by the present act of the American Government with such modifications as experience and the demands of the times may dictate. As the demand for scientific education has in recent years been increasingly urgent in China my Government now proposes to devote the funds thus made available by the generosity of the Ibid., 1901, Appendix (Affairs in China), p. 312. "Ibid., 1908, p. 72. |