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Government is to be urged to deal with the funds
on the lines of that report.
5.
The Willingdon Delegation proposed that the
total fund should be divided into :-
(a) an annual income for immediate expenditure: and (b) capital for the formation of an investment
fund.
As regards (a), the Delegation advised that a
sum of about £350,000 out of an average of £500,000 accruing annually from the funds after 1926 should be made available for expenditure on direct grants and subsidies in aid of the various objects approved; and that this £350,000 should be drawn directly and in
whole from the instalments of the Indemnity Fund itself, to be perhaps later supplemented from the profits on the invested capital. As regards (b), the Delegation advised that a sum not exceeding
£5,200,000 and not less than £3,500,000 should be raised during the years 1927-31 for the purpose of a permanent investment. They recommended that this capital sum be applied to some useful national reproductive undertaking directly advantageous to the interests of the people of China. They suggested that some or all of the profits on this investment might be used up to 1945 for supplementing grants out of annual income. After the complete amortisation of the China Indemnity in 1945, the proceeds from such investment should, it was proposed, be devoted to the purpose of carrying on in perpetuity the
educational and other work supported by the
Indemnity