(and in 27)

(end. in 28)

(and. in 457)

15,000

Du.

}

112

supplied but not yet paid for. For this reason Foreign

Office telegram lo. 138 of April 5th was addressed to Sir

Miles Lampson who, according to the instructions therein

contained, has submitted the suggestions of His Majesty's

Government to the Chinese authorities and has proposed that

they should give assurances on the lines of the draft note

in Peking telegram No. 310 of April llth. This was approved

in Foreign Office telegram o. 149 of April 16th with the

exception that it was therein laid down that there should be

no mention of the Indemnity in any assurance that the Chinese

may give regarding the payment of outstanding debts for

material. Sir C. ulementi's new proposal, however, is not

concerned with a debt for railway material but with a claim

arising out of the suspension of through traffic on the Canton-

Kowloon Railway and for demurrage of wagons. This introduces

an entirely new class of claim differing from those which have

been indirectly considered in connexion with the Indemnity

rund, and Mr. Henderson is unable to admit this new departure

from the general lines which His Majesty's Government have

been pursuing. He would suggest that this claim should be

treated as a subject for independent negotiation with the

Chinese Government, if the Governor of Hongkong considers that

any satisfactory settlement is likely to be reached.

4. As regards the sums due to the Hongkong University

by Chinese authorities, Mr. Secretary Webb will have observed

from Sir Miles Lampson's telegram No. 53 of June 3rd that it

has been agreed in principle between sir M. Lampson and Dr.

C.T. Wang that an additional sum of fifteen thousand pounds

should/

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