In any further communication on this subject, please quote

No.

F 2717/57/10

and address—

not to any person by name,

but to-

C

The Under-Secretary of State,"

Foreign Office,

London, S.W.1.

Sir,

FOREIGN OFFICE.

S.W.1.

11th June, 1929.

55 111

(46)

(42)

(41)

I am directed by Mr. Secretary Henderson to acknowledge

the receipt of your letter No. 62708/29 of 30th May regarding

certain suggestions made by the Governor of Hongkong in

connexion with the Boxer Indemnity Fund.

2. Mr. Henderson agrees with the reply that was

addressed to Sir C. Clementi on 28th May and he concurs in

the views expressed on the subject by His Majesty's Minister

at reking in his telegram No. 30 of May 26th, a copy of

which was forwarded to the Colonial Office on May 27th.

3. As regards the claim of the British section of the

Canton-Kowloon Railway against the ühinese section, he is

unable to agree to Sir C. Clementi's proposal that an under-

taking to satisfy this claim should be included, in any form

whatsoever, among the assurances which the Chinese Government

are being asked to give regarding the future utilisation of

the Indemnity Fund. It has been the consistent policy of

His Majesty's Government that these funds should not be ear-

marked for the satisfaction of British claims, as it would be

contrary to the principles embodied in the report of the

Buxton Committee and as it would be invidious to select

certain claims for specially favourable treatment. It is,

however, realised that if a considerable portion of these

funds is to be spent on railway rehabilitation this should

make it easier for the Chinese railways to pay debts already

due from them for railway stock and other railway material

The Under-Secretary of state,

Colonial Office.

supplied/

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