The original agreement was at Tien-tsin, where the Chinese met the British, French, and Russian negotiators; but the convention was finally executed at Shanghai, November 8, 1858. The statement already made appears in the terms of the convention. After setting forth that certain maritime revenues were pledged for the payment of American claims, “to an amount not exceeding 600,000 taels,” the convention proceeds to declare, “And the plenipotentiary of the United States, actuated by a friendly feeling towards China, is willing, on behalf of the United States, to reduce the amount needed for such claims to an aggregate of 500,000 taels”; and then it is agreed “that this amount shall be in full liquidation of all claims of American citizens at the various ports to this date.”[112]
Mr. Reed, in communicating this treaty to the Department of State, says, under date of November 10, 1858:—
“Nor has there been any great difficulty in effecting it, the Chinese plenipotentiaries showing no disposition to evade the agreement they had entered into at Tien-tsin, and being quite willing to arrange the details on reasonable grounds.”[113]
The Minister then proceeds to say, that his first duty—“not the less binding because to the Chinese”—was to revise the claims themselves, and ascertain whether, after giving credit for such as had in the mean time been settled and paid, and applying some clear principle of law, the aggregate could not be reduced; and he adds, that “the amount assumed at Tien-tsin was an arbitrary one.” In order to arrive at a more precise result, he called upon the claimants for a revised statement of their demands. In many instances the requisition was complied with; in others it was made the occasion for “all sorts of speculative and contingent claims,—such, for example, as a vice-consul asking to be remunerated for fees that he might have made, and the captain of a steamer claiming the profits of a year to come.” Notwithstanding these instances the claims were revised in a proper spirit, and were sensibly reduced by the claimants themselves. Still there were many of a contingent character. On a careful review of all the evidence before him, the Minister was satisfied that he could materially reduce the amount to be demanded, which was accordingly done. In the draught of the convention first submitted to the Commissioners at Shanghai, the amount stated was 525,000 taels, with a provision, that, in case of excess beyond the claims and interest, it should be refunded to the Chinese Government; on which the Minister remarks: “They preferred, however, the small sum without such provision, evidently thinking it was their best policy to get rid of the matter forever.”[114] The language of the Commissioners was:—
“We acknowledge the consideration and kindness of your Excellency in this matter, in that you have, of your own accord, reduced the first amount of claims, and now place the total at 525,000 taels. We have taken the matter into full consultation, and propose, that, if a further reduction of 25,000 taels be made, fixing the total amount at 500,000 taels, then custom-house certificates can be issued at Canton, Shanghai, and Foo-chow, dating from the first day of our next year, (February 3, 1859,) which can be successively applied to the gradual payment of the entire sum.”[115]
These terms were embodied in the final convention between the parties.
After this exposition, the Minister declares that the convention, if ratified by our Government, and carried into execution by the Chinese, as he did not doubt it would be, would liquidate every claim on China by citizens of the United States, principal and Chinese interest at twelve per cent. per annum, on most of the claims for three years, and for a longer period on others, among which was one as ancient as 1847, which had occupied the attention and excited the sympathies of many of his predecessors.
The Minister appends a tabular statement of claims, with a list of what he calls “Claims Suspended,” among which is one known as “The Caldera,” to which reference will be made hereafter. He then says:—
“A sufficient sum can be reserved to cover these claims, all of which are more or less doubtful.”