(2).
>2
(3) That preference will be given to railways
where there is a British financial interest; and that the railway materials required will be ordered in the
United Kingdom.
(4) That, if possible, the urgently necessary
Chihli (or Haiho) conservancy work should also be
financed out of the indemnity funds under the same
conditions as the railway work.
(5)
That in order to make an immediate start
on Anglo-Chinese educational work £250,000 be
transferred to the Hongkong University out of the
deposited funds, and £200,000 be similarly transferred-
to the Universities China Committee in London.
(6) That, as future instalments of the indemnity
are paid, they should also be partly applied to
immediate educational purposes as recommended in the
Buxton Committee's report, besides being applied to
the principal purposes of railway rehabilitation and
river conservancy.
3. If some such assurances could be obtained
from the Chinese government, my intention is to
instruct you to reply that His Majesty's Government
will at once take steps to remit all payments of the
indemnity in future to the National government's
unfettered control; and that in due course, after
the necessary legislation has been passed in Parliament
His Majesty's Government will transfer to the National
government the balance of the deposited funds, after
having set aside the two sums of £200,000 and
2250,000 for the Universities China Committee and
Hongkong