CHINESE INDEMNITY FUND.
Report in the Senate, of the Committee on Foreign Relations, June 24, 1870.
The Committee on Foreign Relations, to whom was referred the message of the President of March 10, 1870, covering a report of the Secretary of State and correspondence concerning the Chinese Indemnity Fund, also certain petitions on the same subject, have had the same under consideration, and beg leave to report.
The origin and history of the Chinese Indemnity Fund are found in authentic documents, so that little need be done except to state the case from these authorities.
The British and French expeditions of 1858, which, after capturing Canton, turned their combined forces toward Peking, and ascended the Pei-ho as far as Tien-tsin, opened the way to the presentation of claims of our citizens, which were promptly recognized by the Chinese Government. Though taking no part in the war, our people profited by the result. The convention that ensued was born of the war.
THE CONVENTION AND PAYMENT OF CLAIMS.
Claims were brought forward amounting to more than one and a quarter million of dollars; but Mr. Reed, our Minister in China, concluded, after examination, that 600,000 taels, or about $840,000, was a proper estimate for all rightfully due. Accordingly he entered into an arrangement with the Chinese plenipotentiaries for their prospective liquidation. At first there was nothing but an agreement in correspondence, being a sort of executory contract, which was unsatisfactory in form, incomplete in stipulations, and embarrassed by the condition that in the adjudication of the claims a Chinese officer should take part. All this involved delay, at least, if not more. At last this agreement was embodied in the terms of a convention between the two governments, dispensing with Chinese coöperation, and the amount of damages was reduced to 500,000 taels, to be paid from the maritime revenues of Shanghai, Foo-chow, and Canton, in complete discharge of all demands.[111]