[This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]

FROM CHINA.

52

Decypher.

Sir M. Lampson. (Peking).

April 11th, 1929.

D.

7.20.p.m. April 11th, 1929.

Ra

3.00.p.m. April 11th, 1929.

No. 309.

Addressed to Mr. Newton No. 89 of April 11th.

My telegram No. 88.

Note A.

I have the honour to refer Your Excellency to

declaration made by British government in December

1922 that balance of British share of indemnity of 1901

would thenceforward be devoted to purposes mutually

beneficial to China and Great Britain, and to inform

Your Excellency that, in the event of British govern-

ment deciding to return to the control of Chinese gov-

ernment the said indemnity funds, it is the intention

of the Chinese government to deal with these funds on

lines of report of Anglo-Chinese advisory committee a

copy of which as published in 1926 is enclosed herein

for convenience of reference.

2.

In this report it was contemplated that the

said funds should be devoted in the main to educational

purposes partly by direct expenditure and partly

through medium of an endowment fund invested in produc-

tive undertakings in China with special reference to

railway and conservation works.

In view of urgent necessity in connection with

reconstruction and development of China, of re-

conditioning existing Chinese government railways in

the.

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