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educational institutions out of the Russian indemnity funds, claimed that Soviet Russia was the first country to abrogate China's unequal treaties and treat her on the basis of full equality. This meeting was presided over by the present Minister of Education, and attended by other prominent educationalists.

10. The Peking Government have constantly approached the Inspector-General of Customs with proposals for diverting the deferred Russian indemnity funds from the commission, which would be tantamount to tearing up the Sino-Soviet Agreement. He has, however, hitherto managed to frustrate these schemes, and has insisted upon the scrupulous observance of the terms of the agreement, which stipulate that no receipt for payment of indemnity money, or payment from it after receipt, is valid without the signature of all three members of the commission, which means that, whatever may happen to the money after it reaches the commission, it cannot be deflected by the Chinese on the way. As far as is known, such payments as have gone to the commission have been used for educational purposes, and the Soviet authorities have manifested, indirectly if not directly, their appreciation of the fairness with which the Inspector-General has protected their interests in the matter.

I have, &c.

MILES LAMPSON.

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