They expressed their disappointment at this answer, as they had hoped that when they had agreed to all our terms except this one I would have given way on it, and excused them paying the indemnity, and they trusted I would not send them back to the National Assembly with so disheartening an answer. In most cases of bargaining, if one party got half the things he had asked he would be satisfied. I had got all the points except one, and still was not satisfied. If I could not agree to that myself, would I not refer it to the Viceroy? If I did this they had great hopes the Viceroy would excuse them the indemnity.
I replied that a reference to the Viceroy would be of no use, for it happened that the terms I was now asking were modifications ordered by the British Government. The Ti Rimpoche said that if the British Government had been lenient once they might be lenient again, and asked me to put their petition before them. I replied that the British Government had considered this matter most carefully before issuing these demands, so if I now dared to suggest that one of them should not be carried out I should be immediately dismissed from my post. I was prepared, as I had said, to submit proposals for alternative methods of payment of the indemnity, and I would be also prepared to submit proposals for privileges of concessions in Tibet which might be taken in lieu of part of the indemnity, but the indemnity, in some manner or other, would have to be paid.
The Tsarong Sha-pé said we were accustomed to fish in the ocean, and did not understand that there were not so many fish to be got out of a well as could be caught from the sea. A field could only yield according to its size and the amount put into it. A poor peasant got only just enough from his field to support himself and his family, with a very little over for religious offerings. It was hard, therefore, that we should demand so much from Tibet, and the National Assembly would be very much disheartened at the result of this interview.
I replied that what they had agreed to was what cost them nothing, and was, indeed, to their advantage. The opening of trade-marts would in reality prove of much more benefit to them than to us. The only thing that really cost them anything they were consistently refusing. Even on that point I was prepared to make it as easy for them in carrying out as possible, and I could not acknowledge that they had any cause for complaint.