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during this and previous conversation of May 20th that

he favoured the idea, I handed him final paragraph which

had under your instructions been deleted from our original

draft note insurances. He said that he presumed that

the words "in consultation and in agreement with British

government" were not meant to apply to Chinese members.

I concurred and reminded him that the matter was in any

case left to the unfettered discretion of his government.

He said that he would prepare a draft paragraph probably

on lines that Chinese government considered it desirable

in view of magnitude of funds and length of time necessary to carry plan into execution to appoint a board of trustees amongst whom there would be a certain

number of British subjects.

5. We now await Chinese re-drafts of our draft notes.Addressed to Foreign Office No. 53, repeated to

Peking

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