Diplomatic negotiations were once more transferred to Peking, and turned upon the compensation to be offered by China for the violation of international law that had occurred upon her soil. The demands of the British minister, who had in the mean time been knighted as Sir Thomas Wade by the Queen, as a just acknowledgment of his efficient services, were considered too severe by the Chinese government, and at one time it looked as if all further negotiations would be broken off.
Sir Thomas finally carried his threat to leave Peking into execution. Prince Kung had evidently not expected so decided a step, and was seriously alarmed by it, for the Chinese government have shown throughout the affair a very wise disposition not to push matters to the last extreme. Li-wang-chang (a brother, we believe, of the official who was sent to Yunnan), the governor of the province of Chihli, the highest and most powerful statesman in the country, was immediately granted extraordinary powers, and sent after the English minister. After some diplomatic fencing Sir Thomas agreed to meet the Chinese envoy at Chefoo--a seaport about half way between Shanghai and Peking, a great summer resort of the foreigners in China--the Newport of the eastern world. Here, in the month of September, 1876, with much surrounding pomp and ceremony, a convention was signed between the English and the Chinese plenipotentiaries. The final settlement of the difficulty was celebrated by a grand banquet, given by Li-wang-chang to Sir Thomas and the other foreign ambassadors, who had been drawn to Chefoo by their interest in the negotiations.
The following is a synopsis of the agreement:
1. An imperial edict to be published throughout the Chinese empire, setting forth the facts of the affair, subject to the directions and approval of the British minister.
2. Consular officials to visit the various towns and public places to see that the said imperial edict is posted where all can see it.
3. The family of Margary to be paid about $250,000 indemnity.
4. A further indemnity to be given, covering all expenses of the unsuccessful expedition under Colonel Browne.
5. A special embassy of apology to be sent to England.
Then follow a number of concessions with regard to placing on a better footing the relations of foreign ambassadors to the Chinese authorities, the enlargement of the foreign settlement at Shanghai, etc.