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 may be issued subsequently extending this by other successive terms of two years in case of necessity recognized by the Powers.

By an Imperial Edict dated the 29th of May, 1901 (Annex No. 12), His Majesty the Emperor of China agreed to pay the Powers an indemnity of four hundred and fifty million Haikwan Taels. This sum represents the total amount of the indemnities for States, companies or societies, private individuals, and Chinese referred to in Article VI of the note of December 22nd, 1900.

(a) These four hundred and fifty millions constitute a gold debt calculated at the rate of the Haikwan Tael to the gold currency of each country, as indicated below:

This sum in gold will bear interest at 4per cent per annum, and the capital shall be reimbursed by China in thirty-nine years in the manner indicated in the annexed plan of amortization (Annex No. 13).

Capital and interest will be payable in gold or at the rates of exchange prevailing on the dates at which the different payments fall due. The amortization will begin on the 1st of January, 1902, and will end at the close of the year 1940. The amortizations are payable annually, the first payment being fixed on the 1st of January, 1903.

Interest will run from the 1st of July, 1901; but the Chinese Government shall have the right to pay off within a term of three years, beginning January 1, 1902, the arrears of the first six months, ending the 31st of December, 1901, on condition, however, that it pay compound interest at the rate of 4 per cent per annum on the sums the payments of which shall have thus been deferred. Interest shall be payable semiannually, the first payment being due on the 1st of July, 1902.

(b) The service of the debt will be effected at Shanghai, in the following manner: Each Power will be represented by a delegate on a commission of bankers authorized to receive the amount of interest and amortization which shall be paid to it by the Chinese authorities designated for that purpose, to divide it among the interested parties, and to give a receipt for the same.

(c) The Chinese Government shall deliver to the Dean of the Diplomatic Corps at Peking a bond for the lump sum, which will subsequently be converted into fractional bonds bearing the signatures of the delegates of the