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outrage, sincs most of the claims referred to in paragraph
3 under category (4) above - miscellaneous compensation
claims - are non-admitted olaims of the native agency
type. Such a step might also appeal to the nationaliste
if they are sincere in their desire to settle the Banking
claims, and would have the advantage of enabling us to re-
move this stumbling-blook to the development of our funda-
mental policy in the South. The use even of the interest
in this manner could also be regarded as an advance, to be
eventually made good to the Indemnity Fund.
9.
In the preceding paragraph, I have dealt solely
with the possibility of using the interest, already accrued
and accruing, on the successive Boxer Indemnity instalments,
until such time as the fund can be applied, in the manner
proposed by the Willingdon Commission and provisionally
approved by His Majesty's Government subject to ratification
by Parliament. It has been also suggested, however, that
the instalments themselves, which have acoumulated up to
date, might be made available in the form of a loan, without
interest, to the Chinese, for the payment of comercial
creditors, as well as for the settlement of the miscellaneous
*•. claims