CO129-496 - Public Offices - 1926 — Page 444

7

"It lias to be borne in mind that the fundamental object in returning the Indemnity is thereby to improve the friendly relations between China and Great Britain, and to enable the two countries better to know, respect and appreciate each other.

K

In dealing therefore with the educational and other problems, it is not enough simply to do what may be held to be actually the best thing, it is equally important that what is proposed should be in accord with Chinese opinion. It is essential to make it clear by the proposals that are made that there is no intention of utilising the Indemnity for the purpose of exploiting China in the interests of British influence or trade or of British educational propaganda.

LL

The educational work would have to be carried out on lines adapted to the country, and the scheme for education would have to be acceptable to Chinese educationalists and to the Chinese Government. Indeed, the aim of any educational scheme would appear to be to devolve the responsibility on the Chinese themselves, i.e., Chinese education by Chinese under Chinese control."

The views above expressed are emphatically endorsed by the Advisory Committee as a whole, including the Chinese Member's.

29. Indeed, the main object of appointing the Delegation was that first-hand evidence should be obtained on the spot, especially through the Chinese members of the Delegation, respecting the ideas and aims and desires of the Chinese themselves, in order that the proposals for the expenditure of the Fund that are made should meet with Chinese approval, and be worked out in friendly co-operation between the Chinese and British.

CHANGE OF OPINION IN REFERENCE TO APPLICATION OF INDEMNITY FUND.

30. The Chairman's Memorandum contains the following paragraph :-

:-

"When, nearly three years ago, the announcement was made that the Boxer Indemnity would be cancelled as a debt, and would be used for objects mutually beneficial to China and to Great Britain, representative opinion, both in China and Great Britain, appeared to assume that expenditure on Education was the only worthy objective.

"Since then, however, and especially of late, this view has been considerably modified; and it is strongly urged from many influential quarters that a considerable portion of the money should be applied to purposes other than Education which would also be beneficial to the mutual interests of Great Britain and China."

31. The Delegation's Report confirms the view that there has been a considerable change of opinion as to the directions in which the funds should be applied. They quote from the Chambers of Commerce to show that there has been a steady hardening against the original view that the whole amount should be spent on educational purposes. In their opinion there is a considerable volume of feeling now in favour of the expenditure on economic and reproductive work or expenditure in the interests of agriculture and medicine.

32. It must be of course recognised that the terms of the Bill and the speeches made while the Bill was passing through Parliament, favoured the spending of the bulk of the money directly on Education pure and simple. Objection was especially taken to the expenditure of the funds on Railways, and such matters as Conservancy, Reclamation, Agriculture, were at the best to take second place to Education. But those who expressed these views would, the Committee feel sure, be willing to modify them if it could be shown, as they think it can, that the proposals they make will be acceptable to China as the most suitable proposals under existing conditions and the most likely to bring about friendly relations between the two nations.

33. It should, moreover, be noted that if this Report as a whole is accepted, and if the income and repayments of the funds proposed to be invested in reproductive works are forthcoming, the whole amount of the Indemnity will in the end be devoted to educational and kindred objects-medical, scientific or agricultural.

P

I

9

involved; but he feels that it must be made clear that this change would render necessary the amendment of the Act, in order to enable the Secretary of State to carry out the proposal, and that his assent must therefore be expressed as subject to the approval of Parliament, which he will do his best to secure."

38. The Delegation expressed their appreciation to the Secretary of State for his generous agreement in their views and to the Advisory Committee for their prompt co-operation, which very greatly facilitated their work,

(i.) The Advisory Committee have already endorsed this proposal, and also desire to express their appreciation of the action taken by the Secretary of State.

(ii) The adoption of the proposal in regard to the Board of Trustees will (as the Secretary of State points out) incolve the introduction and passing of an amending Act, which may cause a certain delay.

39. The proposed constitution, personnel and appointment of the members of the Board of Trustees are set out in detail on p. 81 of the Delegation's Report, and may be summarised as follows:—

At

The Board shall consist of eleven members-six Chinese and five British. least one shall be a woman. All members shall be appointed in the first instance by the Chinese Government after consultation and in agreement with His Majesty's Government.

Four members shall be appointed for one year, four for two years, and three for three years; the length of the term of office shall be decided by lot. After the first term, the term of office shall be three years for all members. Vacancies occurring after the first regular meeting shall be filled by a vote of not less than seven members.

The Board shall elect its own chairman by a vote of not less than seven members. He shall serve for three years; he may be either Chinese or British.

The proportion of Chinese and British members shall be maintained until 1945, when the Board shall have power, if it sees fit, to replace any or all of the British by Chinese members. All members shall be eligible for re-election.

For administrative purposes an Executive Committee of five shall be formed, two British and three Chinese.

(2) The Advisory Committee unanimously agree with these proposals. (ii) In their opinion, if a Board of Trustees, as proposed, is appointed, it is essential, in order to secure confidence and co-operation, that the majority should be Chinese, and they trust that the widest range of representation possible will be obtained on the Board.

(ii) In the opinion of the Advisory Committee, the Chairman of the Executive Committee should be expected to devote the whole of his time to the work; he should be paid an adequate salary, and the Committee should be provided with the necessary staff. (2.) Interpretation of Clause VI (above).*

40. The Delegation state that the proposals they make in regard to the funds to be applied at once for educational, medical and other purposes (as mentioned below in paragraph 44) are to be considered more by way of suggestion than mandatory, and that discretion of selection between the various proposals along the general lines proposed should be left to the Board of Trustees.

41. The Delegation lay down (p. 46) certain heads of expenditure, and give the percentages of the amount of the money available that they suggest should be spent under each head. They advise that these percentages be taken by the Board of Trustees as intended for their general guidance; but they consider that the Board should not be debarred from transferring a portion of the money available for expendi- ture under one head to one of the other heads named, if the Board consider such transfer desirable in the best interests of the Chinese people (p. 82).

42. The Delegation also decided (p. 63, &c.) that they would not themselves attempt to allocate any portion of the Indemnity Fund to individual Institutions, whether educational, medical, or other; and propose that the allocation should be left entirely to the judgment and discretion of the Board of Trustees. Their own task, they state, was simply to decide upon the general principle of distribution, and to leave to the Board of Trustees full power to determine individual allocations."

* See paragraph 34.

[15217]

C

440