154

There

the Cabinet decision, since lines already pooled under the

Consortium Agreement may have to be specifically excluded from

consideration in connexion with the Indemnity funds.

may also arise the question of branch lines connecting with

the line or lines to be built out of the Indemnity money if

the rolling stock on these branch lines has been purchased

from some other country, it would not seem practicable to

expect the Chinese to undertake that only British rolling stock

will be employed on the Indemnity line or lines.

3. Sir Austen Chamberlain would be glad of an early reply

to this enquiry, as instructions to His Majesty's Minister will

be suspended until the observations of the Board have been

received.

I am, etc.,

(sa)

GEORGE MOUNSEY.

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