Extract from a letter dated 3rd August, 1934,
from the Chairman to the Delegates re-
presenting the British Section.
"The Draft Working Agreement omits refer-
ence to certain important matters which are outside
the scope of such a document but which had a bearing
on the negotiations. It was decided to cancel the
debt claimed by the British Section from the Chinese
Section in respect of the suspension of through traf-
fic at various times in the past. This item has ap-
peared hitherto in the balance sheet of the British
section. The Draft Working 'greement contains a spec- ial clause which makes special provision for any sus-
pension of traffic which may arise in the future.
The Chinese delegates volunteered to promise
on behalf of the Ministry that future surpluses conse-
quent on the increased percentage to be allowed to the
Chinese Section would be earmarked for the Service of
the Toan funds. I enquired if the Chinese Government
would send a note to that effect to H.B.M. Minister
Peking and they acquiesced."
38