National Government all future payments of

the Indemnity, and in due course to introduce

legislation in Parliament to transfer to the

National Government the balance of the

instalments already paid and on deposit after

having set meide 2200,000 for Hongkong

University and £200,000 for the Universities

Committee in London as proposed.

5. Please telegraph your observations

both as regarde these proposals themselves and

proposed method of approach. Have they your

approbation? Have you any improvements to

suggest? How and when should they be put before

the Chinese? One way would be for you to

suggest to 0.7. wang that the receipt of a

letter in terms outlined in paragraph 3 would

assist yɔu in getting a decision out of His

Majesty's Government.

6. Stipulation that orders for railway

material must be placed in Great Britain is

open to eritielam as being contrary to

149

principle/

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