810
Sun Fo'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
condition in question more acceptable, but I
cannot go further than this.
The phraseology of paragraph 4 of my
redrafted note can be reconciled with our
Consortium obligations and enables us to widen
assurances so as to apply not only to recondition-
ing of existing lines but also to new construction
Notes 3 and 0. I approve.
Note D. For "after the necessary legislation
"has been read "subject to the necessary
"legislation having been",
Note B 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 Fo's addition
if you think advisable.
Improved railway
revenues should make it quite easy for Chinese
to
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