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3. Mr. Choy added that Chinese government had no
intention of ignoring existing agreements but hoped to
have them modified by mutual consent. As regards
Hukuang agreement and its bearing on the question of
completion of Canton-Hankow railway Minister of Railways would, if His Majesty's Government were to agree, con-
sent to confine purchase of materials and rolling-stock to United Kingdom regardless of stipulations in agree- ment providing for open international tender. Mr. Choy
gave me clearly to understand that Chinese government
were determined if possible to utilize British Boxer
funds for completion of Hukuang railway rather than
rehabilitation of existing railways. The former, he
said, was essential for internal, political, economic
and military reasons.