Enclosure in Shanghai Despatch No. 44 to Peking, 18/2/29.
Letter from Chairman, British Chamber of Commerce,
Shanghai, February 15th, 1929.
1, The Bund,
SHANGHAI,
15th February 1929.
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Sir,
My Committee understands that a suggestion
has been made or is about to be made that the British
share of the Boxer Indemnity shall be used by the
National Government of China as security for a loan to
be raised for the purpose of the reconditioning of
existing railways and the construction of new railways
in China.
Should such be the case and should the
suggestion receive the consideration of H.M.Government,
Committee, while not disapproving of the suggestion, is
strongly of opinion that the release of the British
share of the Boxer Indemnity for the purpose above
mentioned should be conditional on the proceeds of the loan
being specifically allocated to railway reconditioning
and construction and that it should be stipulated that
all railway material purchased with the proceeds of the
loan should be of British manufacture.
They are also of opinion that before agreeing
to the flotation of any such loan as mentioned in the
first paragraph of this letter definite arrangements
C. F. Garstin, Esq., C.B.E.,
H. B. M. Acting Consul-General,
Shanghai.
should/