3.
fairly confident that this allocation would also be
approved.
6. National government propose to entrust
27
administration of other funds to a commission of Board
of Trustees on which I understand there will be British
representative. At my first conversation April 15th
I made it quite clear that although Board of Trustees
was mentioned in report of Sino British advisory
committee His Majesty's Government felt that this was
a matter they wished to leave entirely to the decision
of the Chinese government. I mentioned however that it
has occurred to you that Chinese government might
think appointment of such board might be a help to
their eventual successors in continuing to carry out
the intentions of the present government. Doctor Wang
at that time referred to the American precedent of
board consisting of 10 Chinese and 5 Americans.
7. Doctor Wang said that he must consult Minister
of Finance before he could say anything about debts but
he is sympathetic to the idea of some scheme for the
liquidation of debts for goods supplied.
8. In the circumstances I have not mentioned
drafts A or B. A will presumably require to be recast
and for B a statement substituted to record assurances
not covered by A including 2, 3, 4 and perhaps 6 in
Foreign Office telegram No. 137. It would be useful too
if I could have rough draft of reply proposed by His
Majesty's Government.