*
62708/29
4:4
10.
12
Paraphrase telegram from the Secretary of State for the
Colonies to the Governor of Hong Kong.
Sent 15th June 1929. 3.15 p.m.
Debt due from Chinese section of Kowloon-
Policy of His Majesty's Government
Canton Railway.
has consistently been that Boxer Indemnity funds should
not be earmarked for the satisfaction of British claims
as such earmarking would be contrary to the principles
embodied in the Buxton Committee's report and selection of
certain claims for specially favourable treatment would be
invidious. It is realised however, that expenditure of
a considerable portion of funds on railway rehabilitation
should later render easier the payment of debts due by
Chinese Railways for rolling stock and other material
Proposal has been made (but has not as yet been definitely
agreed) that the Chinese Government will in connection
with the exchange of notes about the Boxer Indemnity
give assurance that it is their intention to incdude in
arrangements for railway rehabilitation the early
settlement of outstanding debts due to British merchants
for rolling stock and other railway material already
supplied to the line in question. No specific reference
to the use of Indemnity funds for this purpose would be
made in such assurance. Your proposal however is
concerned with a claim arising out of suspension of
through traffic on the Canton-Kowloon Railway and
demurrage of wagons not with a debt for railway material.
This introduces an entirely new class of claim and it is
not possible to arrange for its inclusion in any
assurances