Taking, as a point of departure, the Imperial edict appointing Earl Li
Hung Chang and Prince Ching plenipotentiaries to arrange a settlement,
and the edict of September 25, whereby certain high officials were
designated for punishment, this Government has moved, in concert with
the other powers, toward the opening of negotiations, which Mr. Conger,
assisted by Mr. Rockhill, has been authorized to conduct on behalf of
the United States.

General bases of negotiation formulated by the Government of the French
Republic have been accepted with certain reservations as to details,
made necessary by our own circumstances, but, like similar reservations
by other powers, open to discussion in the progress of the negotiations.
The disposition of the Emperor's Government to admit liability for
wrongs done to foreign Governments and their nationals, and to act upon
such additional designation of the guilty persons as the foreign
ministers at Peking may be in a position to make, gives hope of a
complete settlement of all questions involved, assuring foreign rights
of residence and intercourse on terms of equality for all the world.

I regard as one of the essential factors of a durable adjustment the
securement of adequate guarantees for liberty of faith, since insecurity
of those natives who may embrace alien creeds is a scarcely less
effectual assault upon the rights of foreign worship and teaching than
would be the direct invasion thereof.

The matter of indemnity for our wronged citizens is a question of
grave concern. Measured in money alone, a sufficient reparation may
prove to be beyond the ability of China to meet. All the powers concur
in emphatic disclaimers of any purpose of aggrandizement through
the dismemberment of the Empire. I am disposed to think that due
compensation may be made in part by increased guarantees of security
for foreign rights and immunities, and, most important of all, by the
opening of China to the equal commerce of all the world. These views
have been and will be earnestly advocated by our representatives.

The Government of Russia has put forward a suggestion, that in the event
of protracted divergence of views in regard to indemnities the matter
may be relegated to the Court of Arbitration at The Hague. I favorably
incline to this, believing that high tribunal could not fail to reach a
solution no less conducive to the stability and enlarged prosperity of
China itself than immediately bene