[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.]

106

(F 384/57/10).

Το CHINA

Cypher telegram to Sir M. Lampeon.

(Peking).

Foreign Office.

February 11th, 1929.

9.30 p.m.

No. 65.

The draft of my telegram No. 61 February 1929: Boxer Indemnity) was

confidentially to bir Charles Addis.

(of 11th

shown

He strongly

deprecated any stipulation that material for

railway rehabilitation must be bought in the United Kingdom. He thought this would be bad as a political move and embarrassing from Consortium point of view. He was convinced that other members of the Consortium would regard it as in- fringement of the spirit of the Consortium policy. He expects time will come when we shall have to work in close touch with the Japanese in the economic sphere in China and considers it most un- desirable that we should expose ourselves to any charge of departing from our Consortium engagements and so giving Japanese and other Consortium members

Further he pretext for acting independently.

considers the stipulation unnecessary since there are British engineers and British rolling-stock already on the railways in question.

Therefore with-

out any assurance being given it is a foregone con- clusion that orders for new material must be placed

in the United Kingdom

He would prefer to see funds handed over to the National government without any suggestion from our

side

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