COPY
(F 267/57/10)
C.R.T. 4221/28.
Sir,
COMMERCIAL RELATIONS AND TREATIES
DEPARTMENT,
Board of Trade,
Great George Street,
London, S.W.1.
12th January, 1929.
155
I am directed by the Board of Trade to refer to your letter (F 7024/6/10) of December 22nd in regard to the pro- posed waiver by His Majesty's Government of all claims on the British balance of the Boxer Indemnity.
The Board of Trade would welcome an agreement under which the British share of the Boxer Indemnity was expended in the placing of orders, which would give employment in this country and would benefit China by the rehabilitation of her
transport services. At the same time the Board anticipate that there would be a considerable outcry in this country
were any arrangement with the Chinese Government concluded
which provided for the use for new railway construction of the major part of the fund available and if no account were
taken of the position of British creditors to whom the
Chinese already owe large sums of money advanced originally for the very purpose. The Board suggest therefore that any
such arrangement should not only have in view the economic
development of China and the placing of orders with British
manufacturers, but should be framed so as to place the
British creditors in question in a more favourable position
than they occupy to-day. After careful examination of the
whole problem the Board consider that these ends would best
The Under-Secretary of State,
FOREIGN OFFICE. S.W.1.
be/