107
2.
side as to Board of Trustees, on an assurance that
they would be guided by the Buxton Committee recommen- dations more especially relative to railway (and if necessary railway rehabilitation) proposals and to educational proposals specifying perhaps a definite
grant in the case of Hongkong University.
His reasons were (1) it must be object of our policy to strengthen Central authority in China mention of Board of Trustees by us would defeat that object; (2) in any case we can get no more than an
It is assurance as to the future of the funds.
therefore better to be satisfied with as general an
assurance as possible.
Since our future China policy will be largely financial and economic, and since Consortium policy, or at any rate some kind of a Consortium policy, must be the foundation on which we build (alternative being competition and revival of spheres of influence) I must give most careful consdieration to the views of our leading Consortium authority when he says that principles of the Consortium are imperilled by our own proposed action. I would therefore if necessary reopen question of assurances involved in decision
in my telegram under reference.
Please telegraph observations.