CO129-493 - Governor Sir Clementi - 1926 [6-8] — Page 63

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Hankow railway,

complete the missing section of the Canton

for I have no doubt that the people of both provinces would heartily welcome the completion of this long-delayed project. If, however, the fight is not to a finish, and if consequently

each province continues to be ruled by a different government,

there will be a kind of "no man's land" on the border of both

provinces, and I very much doubt whether railway construction

would be practicable.

5.

No doubt these considerations are present in the

mind of Lord Willingdon: but without more detailed information

as to his "permanent endowment scheme", I am unable to offer

any further corment except the general one that a less favour-

able time for decision as to the utilization of Boxer Indemnity

Funds for the benefit of Anglo-Chinese interests could hardly

have been found. There is no central Government in China,

and it is not known whether any effective central Government

will again be established in China, and if so, what its

relations with the eighteen provinces will be. Under such

circumstances my own opinion is that His Majesty's Government

would be wise to retain an entirely free hand and not to pledge

itself to any permanent scheme in China.

6.

I have already put forward the only two schemes

for the benefit of Anglo-Chinese interests which appear to

me to be practicable at the present time, namely the construc-

tion of the junction line at Canton between the Kowloon -Canton

and the Canton Hankow railways, and the scheme for developing

the Hong Kong University. I hope that it may be decided

to allocate Boxer Indemnity Funds to both these projects at

an

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