5.—On the "sth instant, this Government—replied that the Chinese Maritime Customs was first and last a Chinese Government Service and was subject, at least with respect to the parts within its territory, to the orders of this Government. The reply went on to state that as its Customs revenues were remitted to Peking and there used so as to release other revenues for the financing of one military _expedition after another against it. this Government intended to order the Customs authorities to cease remitting to Peking and retain the funds for local use. It emphasized that no interference "With the Customs was contemplated nor had there been any threat made to take over temporarily the administration of the Chinese Maritime Customs at Canton. It insisted that the question was a purely Chinese internal' affair and consequently did not concern the Foreign Powers, And it added that as this Government had waited patiently for three months to a day for a reply, it seemed hardly reasonable for the -Diplomatic Body to complain of precipitate action on the part of this Government who, however, in deference to the representations of the Diplomatic Body and as proof of the conciliatory spirit actuating it, would refrain from taking any definite action for another two weeks in order to await the decision of the Diplomatic Body.
6.—On the 4th instant, this Government received a considered reply from the Diplomatic Body who cabled it from Peking under date of the 11th instant. The reply states that ''the Signatory Powers of the Final Protocol of September 7, 1901, derive from that Protocol the right to ensure priority of payment of interest and amortization of certain foreign loans secured on the Customs revenues previous to 1901 and of payment of interest and amortization of indemnity mentioned in Article 6 thereof, but no treaty tight has been conferred upon them to decide for what purpose the Chinese Government shall use funds which at the end of each year shall remain at the disposal of that Government after service of the said loans and indemnity' shall have been entirely provided for."
Text read from the printed page and cleaned; old type leaves the occasional error.