678 FRANK H.H.KING effectively ceased with the beginning of hostilities with Japan in 1937.The 1943 treaties ending extraterritoriality also ended China's obligations to make further payments,although the Chinese interpretation of this provision would be challenged(see below). Remission As countries noted that,after payment of claims,their Boxer Indemnity accounts were still in credit,the question of remission arose.That remission was not a simple process was due to several factors,including the fact that,although the indemnity had been agreed as part of a joint international Protocol,the Indemnity was a consolidation of acknowledged debts to each Power individually.For matters not in the Protocol,and this included remission,separate agreements had to be reached between each Power and China.At one level this simplified the process since a uniform international agreement was not necessary.Each Power had to consider their own political and economic situation,their other commitments in China,and their foreign policy goals.One concern was,however, common to all the Powers,namely the political situation itself and the belief that straight-forward remission would mean simply that the balance between warring parties in China would be unintentionally disrupted.The only way of ensuring beneficial consequences from the remission,it was believed,was to continue the then established payment schedules but to set aside the funds received for specified purposes 'mutually beneficial'.The funds would continue,however,to be overseen by the relevant foreign power. In 1908 the United States,with 7o%of its share of the Indemnity remaining unallocated after payment of all claims and following discussions which had taken more than a year to finalize,was the first Power to determine remission,an important precedent despite the fact that,with only seven percent of the total indemnity,the United States was not the major creditor.The precedent included the provision that China make payments as scheduled,with the U.S. confirming its approval of using the proceeds for educational purposes. In July Prince Ch'ing acknowledged the decision by announcing plans to send 1o0 students to the U.S.annually,to a maximum of 400. In consequence China established a preparatory college,known in English as 'Tsinghua'(later to be designated a university in its own right)and dedicated the funds for American education,either in678 FRANK H. H. KING effectively ceased with the beginning of hostilities with Japan in 1937. The 1943 treaties ending extraterritoriality also ended China’s obligations to make further payments, although the Chinese interpretation of this provision would be challenged (see below). Remission As countries noted that, after payment of claims, their Boxer Indemnity accounts were still in credit, the question of remission arose. That remission was not a simple process was due to several factors, including the fact that, although the indemnity had been agreed as part of a joint international Protocol, the Indemnity was a consolidation of acknowledged debts to each Power individually. For matters not in the Protocol, and this included remission, separate agreements had to be reached between each Power and China. At one level this simplified the process since a uniform international agreement was not necessary. Each Power had to consider their own political and economic situation, their other commitments in China, and their foreign policy goals. One concern was, however, common to all the Powers, namely the political situation itself and the belief that straight-forward remission would mean simply that the balance between warring parties in China would be unintentionally disrupted. The only way of ensuring beneficial consequences from the remission, it was believed, was to continue the then established payment schedules but to set aside the funds received for specified purposes ‘mutually beneficial’. The funds would continue, however, to be overseen by the relevant foreign power. In 1908 the United States, with 70% of its share of the Indemnity remaining unallocated after payment of all claims and following discussions which had taken more than a year to finalize, was the first Power to determine remission, an important precedent despite the fact that, with only seven percent of the total indemnity, the United States was not the major creditor. The precedent included the provision that China make payments as scheduled, with the U.S. confirming its approval of using the proceeds for educational purposes. In July Prince Ch’ing acknowledged the decision by announcing plans to send 100 students to the U.S. annually, to a maximum of 400. In consequence China established a preparatory college, known in English as ‘Tsinghua’ (later to be designated a university in its own right) and dedicated the funds for American education, either in