70
I have,
in China are more or less beneficial to such interests.
however, slightly modified the original phrase. Sun Yo's
rejection of assurance about existing contracts is definitely
objectionable, as are the words which he proposes to insert.
I have modified the phraseology in order to make the condi tion
in question more neceptable, but I cannot go further than this.
The phraseology of paragraph á of my redrafted note can be
reconciled with our Consortium obligations and enables us to
widen assurances so as to apply not only to reconditioning of
existing lines but also to new construction.
Notes B and C. I approve.
Note Do For "after the necessary legislation has been"
read "subject to the necessary legislation having been".
Note E and paragraph 3 of your telegram No. 102. I had
myself refrained from any reference to Indemnity Fund in this
connexion and would prefer to leave note as drafted, but you
have discretion to accept sun yo's addition if you think
advisabis. Improved railway revenues should make it quite easy
for Chinese to pay these debts.
Notes F. 0 and H.
I approve.