to be aware of the 1911 Agreement and had thought 29
that wishes of both countries could be met by
China proceeding at once to build the railway,
buying necessary materials in Great Britain. He
insisted that building of this line was more
urgent than rehabilitation of existing railways.
3. Lord Buxton then suggested that a way out
of the deadlock might be found by trmsferring
accumulated funds to Great Britain and utilising
them (excluding, of course, proposed grants to
Hongxong and Universities Committee) and also
further indemnity payments falling due in
immediate future; for opening a credit in this
country on which Chinese Government should draw
to pay for locomotives, rolling-stock, ato.;
manufactured here. This was a new idea to Dr.
Wane.
He said he would consider it and would
write privately to Lord Buxton from time to time.
4. Dr. Wang further said that his government
wished as soon as possible to proceed with the
establishment (1) of an International Institute
of/