University out of the deposited funds, and

£200,000 be similarly transferred to the

Universities China Committes in London.

87

(6) That, as future instalments of the

Indemnity are paid, they should also be partly

applied to immediate educational purposes as

recommended in the Burton Committee's Report,

besides being applied to the principal purpO SOS

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 legis-

lation has been passed in Parliament, His

Majesty's Govorwæent will transfer to the

National Government the balance of the deposited

funds, after having set aside the two sums of

£200,000 and £250,000 for the Universities

China Committee and Hong Kong University

respectively.

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