CO129-501-2 Chinese situation- Boxer indemnity 5-2-1927 - 14-12-1927 — Page 139

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(5)

Delegation would have visited both Hongkong and Canton, had

not Lord Willingdon replied that the proposal was now too

late.

Para. 4 Sir C. Clemonti's rear that positions on the

Board of Trustees may be held by British non-resident in

China is without foundation. The whole tenor of recommenda -

tions, both of the Committee and of the Delegation, shows that the object was to obtain as capable and representative a body of Trustees as possible in China itself.

Pera. 5. The criticism regarding the 'observers'

seems to be quite unfounded. First, the recommendations say that they may', not that they 'must' be appointed.

Secondly, there is no roason why their presence should create

friction. For instance, the Chino-Japanese negotiations for

the return of Shantung were carried on quite happily in the presence or 'observers' both foreign aid Chineso.

Para. 7. The Delegation's recommendations regarding

the variation in the percentages are modified and limited by

the Buxton Committee (pp. 14, 15, 17); the recommendations

of the Dolegation regarding railway construction were consid- erably modified by the Advisory Committee, who realisedthe

and added various necessary safeguar great practical difficulties of carrying out the scheme/(pp

16, 25). They considered that they could not accept the

proposal that funds should at once be set aside for the Canton

loopline.

Paras

This and subsequent page references are to the Report of the Advisory Committee, etc. published as a Blue Book, Cmd, Paper 2766.