The original appointments to the Advisory Committee contained the names of-

The Right Hon. Sir John Jordan, P.C., G.C.M.G., G.C.I.E., K.C.B., His Majesty's Minister Resident at Seoul, 1901-6, His Britannic Majesty's Envoy Extraordinary and Minister Plenipotentiary, Peking, 1906–20. Major the Hon. J. J. Astor, M.P.

Mr. S. P. Waterlow, C.B.E., former Head of the Far Eastern Department,

Foreign Office.

Sir John Jordan took keen interest in the work of the Committee, attended the informal meetings and participated in the important early decisions. His death in September 1925 deprived the Committee of the benefit of his great experience and ripe judgment. This opportunity is taken to put on record their deep regret at his loss.

Major Astor unfortunately had to resign from the Committee owing to a prolonged absence abroad.

Mr. Mounsey succeeded Mr. Waterlow on the appointment of the latter as His Majesty's Minister to Siam,

A

4. It is not necessary to detail here the history of the Boxer Indemnity. historic account is given in the Report of the Delegation (pp. 4-6) where also details. appear as to the total amount of the Fund available.

5. The Boxer Indemnity was a payment by China spread over a considerable period of years, in consideration of the losses sustained by the nationals of the foreign countries concerned, together with the military and other costs involved in connection with the Boxer Rising in 1900. The British Government, it may be mentioned, took great care to assure themselves that every claim submitted by them on behalf of their nationals was a genuine minimum claim for losses suffered or damage sustained as a direct consequence of the Boxer Rising.

PASSING OF THE ACT AND APPOINTMENT OF ADVISORY COMMITTEE,

6. The first announcement to the Chinese Government that the balance of the Boxer Indemnity would cease to be paid into the Treasury and would be utilised for the purposes subsequently included in the Act was made in December 1922.

7. The Act which authorised the application of this money for the purposes indicated, and brought into being the Advisory Committee, was not finally passed until June 1925. It is unfortunate that so long a period of time should have elapsed between the first aunouncement and the passing of the Act, as the delay may have given rise to misunderstandings in China. The delay, however, was not intentional It was nor due to any opposition to the proposal, which met with general approval. entirely due to the political situation in Great Britain which arose in 1923, and continued in 1924 and 1925, which involved general elections and changes of Government in 1923 and the following year.

8. After the Act was passed, in June 1925, further unavoidable delays took place before the Advisory Committee could be statutorily constituted and could begin its work. In the first instance, vacancies arose, through death or otherwise, which delayed the completion of the British personnel of the Committee; and, secondly, the disturbed state of China at that time naturally caused difficulty and delay in obtaining the services of suitable Chinese Members on the Committee. The Committee consequently did not become a Statutory Body under the terms of the Act until early in 1926 Meanwhile, however, the British Members already appointed held some informal meetings in order to make progress with the work.

9. The actual financial position of the Fund has, however, been in no way prejudiced by the delay which occurred in placing the Act on the Statute Book and in Since December 1922 the the statutory composition of the Advisory Committee. instalments paid by the Inspector-General of Customs to the credit of the British Government have not been paid, as was formerly the case, into the British Exchequer but have been transferred to a suspense account with the Hong Kong and Shanghai Banking Corporation, where they have accumulated with interest, and will continue to do so until such time as a decision has been come to as to their disposal.

5

CHINESE MEMBERS ON THE ADVISORY COMMITTEE, AND THE DELEGATION.

10. The original Bill contained a provision for the appointment of one Chinese Member. The Act as passed provides for the appointment of not less than two.

11. When a vacancy was caused by the regrettable death of Sir John Jordan, the Advisory Committee, as then provisionally constituted, decided to recommend the Secretary of State to add a third Chinese Member to the Committee. They came also to the conclusion that it would be advisable that a Delegation of Members of the Committee should examine the questions involved in China itself, obtain evidence locally, and thus be in a position to judge of Chinese opinion on the subject and of the practicability of the various proposals made.

12. The Delegation, it was agreed, should consist of six Members, of whom three were to be Chinese and three British Members. The arrangement thus made, of equal representation of Chinese and British on the Delegation, has, it is believed, considerably modified the objection which was originally taken in some quarters to the fact that the Advisory Committee as a whole had a British predominance.

13. The Delegation was constituted as follows :-

:-

The Right Hon. the Viscount Willingdon, G.C.S.L, G.C.LE., G.B.E.

(Chairman).

Dame Adelaide Anderson, D.B.E., M.A.

Professor Hu Shih, Ph.D., B.A.

Professor W. E. Soothill, M.A.

Dr. V. K. Ting, D.Sc.

Dr. C. C. Wang, Ph.D., LL.D., M.A.

Secretary Mr. R. F. Johnston, C.B.E.

14. The Delegation visited various centres in China with a view to obtaining evidence on the spot; and invited Officials, and others who were in the best position to give them information, to meet them, and discuss the questions involved.

15. The Advisory Committee as a whole desire to place on record their extreme obligation to the Members of the Delegation, and to their Chairman, for the tactful, efficient and exhaustive way in which they carried out their duties, and for the interesting and able Report which they have presented.

16. It is satisfactory to note that from the first it was recognised in China that the Delegation was altogether outside politics or militarism. The reception of the Delegation was most cordial and helpful, and throughout their period in China they were in every way treated with the utmost courtesy and consideration by the Chinese Officials and by all those with whom they had the advantage of conferring, and this despite the very difficult conditions due to the Civil War and the resultant disturbances which prevailed.

17. It is not, we think, too much to say, moreover, that the presence of the Delegation in China, together with the Chairman's tactful handling and outspoken speeches, was an actual factor in removing misunderstandings, and in furthering friendly relations between Great Britain and China.

18. The Delegation, it may be added, greatly appreciated the warm and friendly reception that they received in China, which greatly facilitated their work.

19. The Delegation itself held some fifty meetings; and throughout its work there was full co-operation and agreement in the general principles by all the Delegates. The decisions and suggestions of the Delegation, as detailed in their Report, were in every case unanimous.

20. The Delegation emphatically rejected the suggestion that, in consequence of the disturbed state of China, the Indemnity money should be at present retained with a view to its disposal at a more opportune moment.

This view is cordially endorsed by the Advisory Committee.

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