[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.]

(F 1578/57/10).

To CHINA

78

telegram to Sir M. Lampson. (Peking).

Foreign Office. April 5th, 1929. 6.00 p.m.

My telegram

Indemnity) paragraph 5.

fof April 5th: (Boxer

Treasury have concurred reluctantly in decision not to link indemnity question with that of the payment of debts to British firms, and consider course recommended in paragraph 2 of your telegram No. 144 to be reasonable. They think His Majesty's Government may incur considerable criticism in

deciding to hand back large sums to China without first securing settlement of large and acknowledged debts due to British nationals.

this argument.

There is force in

But I must leave it to your dis-

cretion whether and how debt question can be dealt

with simultaneously yet apart from indemnity question. It would certainly help me to get

parliamentary approval if Chinese will give proof of readiness to pay their debts.

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