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I do not say that Englishmen would necessarily object to working under a Chinese Chairman, for the Chairman is practically certain to be a Chinese, on a Board in which they were in a minority, provided that they had confidence in the Chairman and were generally assured that the business of the Board would be honestly and efficiently conducted. But the Chairman is not to be specially selected and appointed by an outside authority, but is to be elected by the Board; and the general conditions, under which the Board will be established

and would work, are such as to make any confidence in it impossible. It is, in my opinion, utterly unreason-

able to expect Englishmen of standing to allow themselves

to be placed in the position which those who allow

themselves to be appointed members of the Board will undoubtedly occupy. But I consider the whole proposal

to be fantastic.

12.

Reverting to the objects of which it suggested

that the funds of the Indemnity should be spent, it is

clear that not one of the schemes, of which the Deputation has approved, can under existing conditions be materialized. The money might be assigned; but were there any attempt to spend it, it would undoubtedly find its way into the pockets of the militarists. One of the Deputation's suggestions is the establishment

of

a scientific institute on which, in its opinion, no less a sum than 18 million dollars might be spent with advantage. But this recommendation has been made without any consideration of the work which is being done, not only in the University of Hong Kong, but also in certain Universities in China, for example those at Nanking and Amoy. Then again, such an Institute, if

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it

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