139
reached at Nanking, the Chinese would regard the
appropriation of these funds as a breach of faith; if we
failed, they would regard it as vindictive. In the long
run the appropriation of these funds would probably cost us
more indirectly than we gained directly.
The President of the Board of Trade emphasised the
objections to anything which might check the present
improvement in trade with China.
The Cabinet agreed unanimously
That the Boxer Indemnity should not be used in the
forthcoming Budget.
The Secretary of State for Foreign Affairs asked
to place on record his thanks to the Chancellor of the
Exchequer, who had relieved him from a very great
embarrassment.