On August 19 the Resident visited me, and handed to me the second reply of the Tibetan Government to his letter forwarding to them the terms of the settlement we now wished to make with them. The first reply he had been unable to forward, as it was too impudent. This second reply, he said, I would find on perusal was more satisfactory, though it still fell short of what he would expect the Tibetans to agree to.
I told the Resident that I found it difficult to make the Tibetans realize that the main points in the settlement we should expect them to agree to without question. The period in which the indemnity was to be paid might be a matter for discussion, but there was no question as to its having to be paid some time. Similarly, they must agree to having marts at Gyantse and Gartok. I remarked that I had all along been of opinion that nothing could be got out of these Tibetans except by pressure, and I was fully prepared to act. At the same time, it would be much more satisfactory if the needful pressure could be put on by the Resident, as I had no wish to take more action unless absolutely compelled to.
I added that a difficulty I experienced in dealing with the Tibetans was in talking with so many representatives at the same time. Half a dozen delegates would come to me, and each one insist upon having his say, and no responsible head was recognized. The Amban said that he, too, had had this difficulty, but that he had recognized the Regent as the principal in these negotiations, and from now on he intended to negotiate with him alone; he was the best man among the leading Tibetans, and came next after the Dalai Lama in the Lhasa province. I said this seemed to me a wise course, for I had found the Regent a sensible man, and he was much respected by the people.
As regards the Convention itself, the Amban said he would have to discuss the clause regarding trade-marts with me. I said I was prepared to talk the matter over, but we should have to insist upon establishing trade-marts at Gyantse and Gartok, and I did not understand the Tibetan objections to the establishment of a mart at Gyantse, for we had the right more than a century ago to have one even at Shigatse. This right had not been exercised for a great number of years, but at one time Indian traders visited Shigatse regularly.