such as the claims which have recently arisen at

Hanking.

3.

On the basis of the liste of British claims

12.1

submitted to the Chinese Commission for the Readjustment

of Finance, which was established when the question of

the debts swing by the Chinese Government were under

discussion at the Special Tariff Conference in the early

months of 1926, the sɩms due under these various cate-

gories were roughly as follows:-

under (1) and (2)

under (3)

under (4)

$43,000,000

$20,000,000

$3,000,000

These figures will, of course, have altered

considerably during the last two years and are only quoted

for the purpose of the general principles dealt with in

this despatch.

The Boxer Indemnity accumulated funds as at

December 31st, 1927, were approximately £2,227,500

in-

cluding accrued interest at something over £170,000.

5.

At the time of the Tariff Conference, the British

view mis that the commercial debts had claims to prior

payment

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