'You have found us bad enemies when you have not observed your treaty
obligations and shown disrespect to the British Raj. You will find us
equally good friends if you keep the treaty and show us civility.

'I hope that the peace which has at this moment been established between
us will last for ever, and that we may never again be forced to treat
you as enemies.

'As the first token of peace I will ask General Macdonald to release all
prisoners of war. I expect that you on your part will set at liberty all
those who have been imprisoned on account of dealings with us.'

At the conclusion of the speech, which was interpreted to the Tibetans
sentence by sentence, and again in Chinese, the Shapes expressed their
intention to observe the treaty faithfully.[23]

[23] The following is a draft of the terms as communicated by _The
Times_ Correspondent at Peking. The terms have not yet been
disclosed in their final form, but I understand that Dr.
Morrison's summary contains the gist of them:

'1. Tibetans to re-erect boundary-stones at the Tibet frontier.

'2. Tibetans to establish marts at Gyangtse, Yatung, Gartok, and
facilitate trade with India.

'3. Tibet to appoint a responsible official to confer with the
British officials regarding the alteration of any objectionable
features of the treaty of 1893.

'4. No further Customs duties to be levied upon merchandise after
the tariff shall have been agreed upon by Great Britain and the
Tibetans.

'5. No Customs stations to be established on the route between the
Indian frontier and the three marts mentioned above, where
officials shall be appointed to facilitate diplomatic and
commercial intercourse.

'6. Tibet to pay an indemnity of L500,000 in three annual
instalments, the first to be paid on January 1, 1906.

'7. British troops to occupy the Chumbi Valley for three years, or
until such time as the trading posts are satisfactorily
established and the indemnity liquidated in full.

'8. All forts between the Indian frontier on routes traversed by
merchants from the interior of Tibet to be demolished.

'9. Without the consent of Great Britain no Tibetan territory
shall be sold, leased, or mortgaged to any foreign Power
whatsoever; no foreign Power whatsoever shall be permitted to
concern itself with th