FOREIGN OFFICE?
(F 7024/6/10)
13
S.W.1.
Important.
22nd December, 1928.
sir,
In view of His Majesty's Government's decision to forego all claims on the British balance of the Boxer Indemnity in
return for assurances to be given by the Chinese Government that the funds should be used, so far as possible, for railway construction, I am directed by Secretary Sir Austen Chamberlain
to enquire what special stipulations the Board of Trade would
recommend in framing these assurances.
2. It is the intention of His Majesty's Government that, in accordance with the promises already given, Great Britain
and China should mutually benefit by the adoption of this
policy, and therefore it is to be presumed that the assurances
required will cover such questions as the placing of orders for
railway materials and rolling stook in this country. It is
not, however, the intention of His Majesty's Government to en-
courage the Chinese to elude the obligations of any railway
building agreement already made with any British or foreign
firm. As the Board is aware, there are not only independent
British contracts outstanding for the construction of railways
in China, but also joint agreements, such as the Hukwang Rail-
way Loan Agreement of 1911 signed by British interests jointly
with French and American interests; there are also our obli-
gations to the Consortium which may to some extent limit our
complete freedom of action in carrying out the intention of
The Secretary
to the Board of Trade.
the/