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Funds. The Delegation suggested that the money
available for investment should, in the first instance,
be devoted to railway construction. If, for any
reason, railway construction was found to be not
feasible, the money should be applied to river
conservancy work. If neither railway nor river conservancy schemes were found by the Board of Trustees
to be suitable securities, the annual instalments were
to be invested in gilt-edged stock.
6. The Delegation advised that the annual sum
to be applied immediately for the purposes of the
mutual benefit of China and Great Britain should be
disbursed in the following proportions :-
(a) Agricultural Education and Improvement
(including 5% for Famine Relief and
Rural Credit
(b) Scientific Research
...
(c) Medicine and Public Health
(d) Other educational purposes
30%
23%
17%
30%
7. The Advisory Committee endorsed all these
proposals.
The Committee could not, however, but
recognize that the essential element in an endowment scheme should be security. The Committee, therefore, recorded the view that to start with the investment should be placed in Chinese Government or other Government securities, observing that security in the case of the Chinese Government loans is the revenue of China itself, and that the purchase of the bonds would improve the national credit.
8. The Chinese Government is now to be asked to deal with the funds on the lines of the Advisory
Committee's