Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-10-31
CHINA'S SETTLEMENT
Encouraging News Soon Expected
From Minister Conger.
INDEMNIFIEOAND CON CESSIONS
Problems That Involve the Fiscal
Administration of China.
A G H A N g E IN DU TIE S

Encouraging news from Minister Conger
regarding preliminary negotiations with
China is expected within a short time at
the State Department. There Is much
doubt, however, whether he Is able to make
a complete treaty, with the concurrence Of
the other powers, which will settle ali ques-
tons growing out Of the recent outrages.
1t is hoped and expected that some sort OF
agreement can be reached soon which will
be at least in the nature of an armistice,
and permit the orderly. and satisfactory
settlement Of broader problems at a later
date. Secretary Hay would be much grail
fled to have all these problems settled at
once, but doubts whether it will be prac-
ticable in view of their variety and COM
pl1cation and the friction likely to arise be-
tween the powers. Minister Conger has
full power in the matter, but will naturally
consult by cable and mail with the govern
ment at Washington.
No Garrison at Tien Tsin.
The United States will not agree to keep
garrison at Tien Tsin or at any other
point In China except q legation guard at
Pekin. There is grave doubt whether Con-
gress would sanction the maintenance of a
permanent garrison on foreign soil except
to protect the legation at the Chinese cap
ltal. Inc United States will probably join
the other powers, however, in reserving the
right to station a garrison at some point
on the route to Pekin, with a view to exer-
cslng this right promptly in case the lega-
lions are again threatened with massacre,
as was the case last summer. The reser-
walton Of the right by all the powers will
make energetic action easy and effective ii
the need arises. The problems which are
likely to require good deal Of consultation
Tor adjustment involve the indemnities to
be paid to the several powers for the out
RACES committed upon their legations and
other citizens, and the commercial conces-
s1ons to be made with view to the future
development Of China. The United States
mas slgnihed its willingness to refer the
matter OF indemnities to the peace commits
sion authorized by The Hague conference.
out thus far few Of the powers have cor
daily welcomed this proposal. The deter
mlnatlon of the amount of the indemnities
involves an Interior question which is really
u HUGH greater Importance for the future.
Fiscal Administration of China.
This is the fiscal administration of china
Even If the indemnities are comparatively
modest, 1t is not unlikely that the Chinese
imperial government will confess inability
to pay them. either principal or interest,
from It's ordinary revenue. The principal
might be adjusted by the delivery Of bonds,
upon which the interest could be paid reg
ularly in gold. 1t is doubtful if Chinese
bonds could be placed at fair prices on
the open market while present difficulties
continue They would find a ready sale
at par or at premium If guaranteed by
the powers, but it Is doubtful if SUCH a
guarantee would be given unless the control
or Chinese finance were turned over to an
international commission. This would not
necessarily involve the dictation of the ex-
penditures of the Chinese government, but
could be adjusted upon the basis of the
Greek guaranteed loan, under which the
international commission collects the reve-
nue., deducts what Is necessary to pay in
terest ON the bonds and turns the balance
over, with certain deductions, to the royal
government to be spent wisely or unWiSely
at will In the case of China, 1t would
probably be found necessary to authorize
such a commission to enter upon the reform
Of the fiscal system, but its action could
be made subject to the approval of the
Chinese imperial government and need not
derogate unduly from Chinese independ-
ence.
Commercial Concessions.
The matter of commercial concessions is
considered to have been met to some ex-
tent by the proposals of Ii Hung Cnang
and Prince Ching. The United States will
probably propose that the present nken
taxes, which are levied with such restric-
tive effect upon commerce at the provin-
cial barriers. shall be consolidated into a
single entry charge upon importations. or
upon the entrance Of the goods into con-
sumption. In view of the necessity for
revenue, Sucn charge might add IN a
sense to the present import duties, but
these duties are now low and the new
charge would be uniform against the prod
ucts of all nations. A difficulty will be met
at the threshold of this proposition in the
fact that certain of the liken duties are
already pledged for exterior obligations:
This would necessitate an adjustment with
the holders of these obligations by which
they should be guaranteed full protection.
This Is matter, like the payment Of the
indemnities, which 1t might be necessary
to remit to a special commission, without
negotiations.