New-York tribune., 1901-06-05
THE CHINESE INDEMNITY
NEGOTIATIONS FOR HARMONY AMONG
THE POWERS IN PROGRESS
IN WASHINGTON.

Washington. June 4.-The plan of a modus
vivendi on the subject of the Chinese indemni-
ties is now receiving the earnest attention Of
those interested in the Chinese negotiations, the
purpose being to prevent the indemnity question
from causing any interruption in the concert of
the powers, and at the same time to remove the
indemnity issue itself, so that progress can be
made on the remaining subjects of negotiation,
chief of which Is the conclusion of permanent
treaties between China and the powers. The
question over the indemnity arose during the
Presidents Western trip, but since the return
of the President and Secretary Hay 1t has been
taken up anew and thoroughly gone over with
the foreign representatives chiefly concerned, in
Guiding the British, Russian and French Ambas-
sadors and the japanese Minister. 1t is because
of the Importance attached to these negotiations
that several of the ambassadors who had in
tended to go TO Europe have deferred their de-
parture for a month.
WORKING FOR HARMONY
AS result of the exchanges Of the last few
days, the question has resolved itself to about
the following basis: There is no further
issue to the total of indemnity, that be-
ing agreed upon by all the powers at $331.-
100000 But there remains the question
of how this amount shall be paid. The
Russian suggestion, which appears to have the
approval of a majority of the powers, is that
China issue bonds for the full amount, and that
all the powers then unite in giving a joint in
dorsement guarantee of the payment of them
The desire has been not only to secure the
sent of a majority of the powers to this scheme
but the approval of all of them. This. however
has been accomplished up to the present
time and it is for this that the modus
vvendi is being considered a possible
means of bringing about united action
The British Government is not favorable to
the Russian proposition, and the British view
has taken form in n plan to have China issue
her bonds to the several governments each
government thereafter adopting Its course
as TO an individual guarantee. The policy of
the United States concerning the Russian propo-
sition was made known in part on the Presi-
dents 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 which have
been in progress since Mr.. Hays return. The
chief difficulty which the United States finds as
not authorize the executive to guarantee bonds
without the approval of Congress AS to the
attitude OF Congress, il has been said in the ne
sotlatlons that II Is doubtful whether the eGis-
lative branch would approve n joint guarantee
of such vast total of bonds Moreover, the
American view has been that ! per cent bonds
as contemplated by Russia would not be a pru-
dent investment for the United States. since this
country readily sells bonds at ~, per cent.
whereas Russian ! per cent securities sell at 9S
cents on the dollar.
When this indemnity Issue is settled Il is he
lieVed that fully 80 per cent OF the Chinese ne
gotations will be disposed of. The next ques-
tion VIII be permanent treaties with China and
on this point II is expected that each OF the
powers VIII suggest certain bases OF a treaty
and that these ultimately will take shape in a
common form Of treaty action.