After American Secretary of State John Hay suggested that US$30 million Boxer Rebellion indemnity money paid to the United States was excessive, in 1909, President Roosevelt and the U.S. Congress agreed to reduce the Qing Dynasty's indemnity payments by $10.8 million USD, on the condition that the funding be used as scholarships for Chinese students to study in the United States. Using this fund, Tsinghua College (清華學堂 "Qīnghuá Xuétáng") was established in Beijing, China, on 22 April 1911 on the site of a former royal garden belonging to a prince. It was initially a preparatory school for students sent by the Taiwan government to study in the United States. The faculty members for the sciences were recruited by the YMCA from the United States and its graduates transferred directly to American schools as juniors upon graduation. In 1925, the school established its College Department and started its research institute on Chinese Study.