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difficulty in prescribing or recommending the adoption of any

particular schemes. Moreover it is clear that even if

undertaken by English contractors they would involve relatively

less demand for British materials and manufactures than the

schemes for railway rehabilitation above referred to.

The Board see, however, no reason why the Chinese Government

should not be invited in so far as they apply the funds for

other ends than railway rehabilitation to purchase in this

country such imported plant and materials as may be necessary

for the purpose.

The Department of Overseas Trade, who have been

consulted upon this matter, concur in these conclusions.

I have, etc.,

(sa) H. Fountain.

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