[This Document is the Property of His Britannic Majesty's Government, and should be 32

returned to the Foreign Office if not required for official use.]

From CHINA.

Decypher. Sir M. Lamps on (Peking),

1st May, 1929.

D. 10.20 p.m.

1st May, 1929.

R.

No. 387.

9.15 p.m. 1st May, 1929.

Following received from Mr. Newton No. 82

April 27th. Begins.

My telegram No. 73.

Although Minister of Finance has not yet arrived Minister for Foreign Affairs informed me April 27th that he has discussed proposals with other members of national government by whom they are much appreciated. He has however noticed report which was circulated by Reuter from London April 24th that Parliament will be dissolved on May 10th. This presumably means that there is no hope of action before new Parliament meets.

2. Doctor agrees with proposed use of funds for educational purposes and creation of endowment fund but considers that it would make a bad impression to refer in correspondence to the specific investment of endow- ment funds in manner or to the expenditure of money in

Great Britain. In this connection I have noticed statement in Kuomin news at meeting of foreign relations committee April 24th attended by Hu Han-min, Tai Chi-tao, Sun Fo, Wang Chung-hul and C.T. Wang it was decided that "while various countries concerned may give suggestions as to use and apportionment of returned Boxer indemnity funds it must be made clear that power of distribution

should.

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