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not binding certain railways to buy British goods only

and for ever but merely that certain funds shall be

spent on British goods. Please telegraph views on

this point and see my telegram No. 62.

8. Board of Trustees is another debatable point.

Should there be a Board of Trustees at all? And

should funds be paid over to Board of Trustees or to

National government? I would not want to press for the

appointment of a Board of Trustees nor if appointed

for British representation thereon unless National

government desire it.

9. Should National government prefer other

productive purposes such as river conservancy rather

than railway rehabilitation, it might be stipulated

that such imported plant and materials as may be

necessary should be purchased in Great Britain, subject

to the political and consortium considerations referred

to in paragraph 7 above and my telegram.

10. It was Nationalist Minister of Communications

himself who suggested that rehabilitation of existing

railways should precede new construction see Peking

despatch No. 1128.

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