Evening journal., 1901-06-05
INDEMNITY
HAS BEEN FIXED
Powers Agree That China
Must Pay S337,OOO,OOO
MAY ISSUE BONDS FOR SUN
Negotiations Now Pending Are as to
How Vast Amount Shall be
Paid

Washington June 5.-The plan OF q
modus viyendl on the subject Ot the
Chinese indemnities is now receiving
the earnest attention OF those interest
ed in the Chinese negotiations. the
purpose being 10 prevent this indem
nifty question from causing any inter
ruption in the concert of the powers
and at the same time to remove the in
demnity issue itself so that progress
can be made on the remaining subjects
OF negotiation. chief of which is the
conclusion OF permanent treaties be.
tween China and the several powers
The question over the indemnity arose
during the presidents western trip
but since the return OF the president
and Secretary Hay It has been taken
up anew and thoroughly gone over
with the foreign representatives chief.
ly concerned including the British.
Russian and French ambassadors and
The Japanese minister Il is because
CT the Importance attached .c these
negotiations that several Of the ambas-
sadors who lad intended TO leave for
Europe have now deferred their de.
parture for a month.
As a result o: the exchanges OF the
last few days the question has resolved
itself &c about TIE following basis;
There Is no further issue as tc the
total OF indemnity. that being agreed
upon by ali the powers at s337.000. 900
But there remains the question of how
this amount shall be pals The Rus
sian suggestion. which appears 70 have
the approval OF q majority II the pow
ers. Is that China issue bonds Tor the
full amount. ana that all the powers
then unite in giving a joint endorse
ment. or guaranty, Of the payment o.
them. The desire has been not cnly
10 secure the assent OF a majority Of
The powers TO this scheme. but The
unanimous approval Of all Of them
This however, has not been accom-
plished up tc the present time. and Il Is
for this reason that the modus vivendi
r. now being considered as a possible
means of bringing about united action
The British government is not favor
able 10 the Russian proposition. and
tho British view has taken form N a
plan TO have China issue her own
bonds TO the several governments.
each government thereafter adopting
its own course as 10 an individual
guarantee The policy of the United
States concerning the Russian propo-
sition was made known in part during
the presidents western trip. although
the final course of, this government is
still considered open and is the cause
for the extended conferences between
the ambassadors and Secretary Hay.
The chief difficulty which the Uni
ted States finds asto a joint guarantee.
is that the constitution does not au.
thorize the executive TO guarantee
bonds in the absence Of the approval OF
congress. As to the attitude of con.
gress it has been stated during the ne.
gotiations that it is very doubtful
whether the legislative branch would
approve a joint guarantee of such a
vast total of bonds. Moreover, the
American view has been that per
cent bonds. as contemplated by Russia,
would not be a prudent investment for
the United States, since the United
States readily sells bonds at 21a per
cent, whereas Russian per cent Sc
curities sell at % cents on the dollar.
When this indemnity issue is settled
1t is believed that fully so per cent of
the Chinese negotiations will be dis
posed of. The next question win be
permanent treaties with China. and on
this point il is expected that each CT
the powers will suggest certain bases
Of a treaty and that these ultimately
will take form in a common form Of
treaty action.