of Research, Shanghai and Peking, to include

lecturers from England on legal and economia

subjects and (2) preservation of Imperial

30

treasures in Palaces, Lord Buxton suggested that

in view of the grant already agreed on for

Hongkong and the Universities Committee, the

Chinese Government, if they desired, might them-

selves propose a grant say of two hundred

thousand pounds for the above, to come out of the

accumulated funds.

5. Before sending you definite instructions I

should like to have your views on the suggestion

in paragraph 3 above. It is the only way out of

the deadlock which has occurred to me so far. I

think that we ought to present our new proposal

at first as a suggestion that all the fund s

including both accumulated deposits (except the

University grants) and the future payments should

be utilised for credite in Great Britain for

railway materials. The Chinese will doubtless

reply urging the claims of the Canton-Hankow

Railway; /

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