11.

129

despatch is thrt these recommendations should be

modified to the extent of using present accumulations,

dow to the time of launching any such scheme, for the

payment of admitted British claims and commercial debts

against the Chinese Government and Government departments.

14. It is contended by those who favour this diversion

of the acoumulated instalments that such a modifloation

of the original proposals need not affect the principles

of the recommendation of the Fillingdon Commission, but

only the amounts of the allocations made in accordance

with those principles, which would have to be re-arranged

pending the repaymont to the Boxer Indemnity Fund of the

loan made to China out of the Fund for payment of these

debte. It is suggested that, even if the loan were not

ultimately repudd, it would make little difference to the

general effect of the recommendations if, say, £250,000 in-

stead of £350,000 were to be spent annually on educational

work, thus providing sufficient from anmal incomings

to make up the endowment fund for the future.

15.

n the rough estimate given in paragraph 3 above,

our commercial debts and miscellaneous claims at present

*** amount

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