Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[October 4.]
C O 40452
FREE! 18
SECTION 2 2 NOV 06
33494]
No. 1.
Sir,
Treasury to Foreign Office.-(Received October 4.)
Treasury Chambers, October 3, 1906.
THE Lords Commissioners of His Majesty's Treasury have had before them your letter of the 29th August and its inclosures, respecting the payment of the British share of the China indemnity for the half year ended the 30th June last.
With reference to the question that has arisen as to the mode of deducting interest for the instalments paid in advance, I am to acquaint you, for the information of the Secretary of State for Foreign Affairs, that, while the language of the British bond undoubtedly supports the view taken by the British Delegate, my Lords cannot regard the contention of the Shanghae Taotai as unreasonable in view of the provision in the Protocol whereby the principal of the indemnity was to be paid annually.
I am, &c. (Signed) E. W. HAMILTON.
[2183 d-2]