CO129-507-1 Proposal to dispose of Boxer Indemnity funds- claim by Hong Kong university 21-12-1927 - 24-7-1928 — Page 85

[This Document is the Property of His Britannic Majesty's Government.]

Printed for the Cabinet. November 1928.

CONFIDENTIAL.

C.P. 343 (28).

THE CHINA BOXER INDEMNITY.

Copy No. 34

NOTE BY THE ACTING SECRETARY OF STATE FOR FOREIGN AFFAIRS.

I CIRCULATE herewith a memorandum by the Far Eastern Department of the Foreign Office, with the following annexes:-

1. Telegram to His Majesty's Minister, Peking, No. 256, of the 29th

September, 1928.

2. Telegram from His Majesty's Minister, Peking, No. 1158, of the 18th

October, 1928.

3. Telegram from His Majesty's Minister, Peking, No. 1159, of the 18th

October, 1928.

4. Minute of conversation with Lord Buxton on the 18th October, 1928.

Foreign Office, November 13, 1928.

MEMORANDUM.

C.

1. THE suggestion has recently been made tentatively to Sir M. Lampson that the question of the Boxer Indemnity might be finally disposed of by releasing all future instalments unconditionally to the Chinese Government.* It appears that this could be effected by a simple resolution of the House of Commons without an Act of Parliament, but if such a resolution were passed no conditions could be attached to the gift. It was suggested, however, to Sir M. Lampson that we might obtain in advance from the Chinese Government assurances that they would apply the money so released to them to the same purposes as those originally contemplated in the 1925 Act of Parliament.

2. Perhaps the time has now come when we might profitably review our whole policy in regard to the Boxer Indemnity, not feeling ourselves necessarily bound by decisions previously taken, but prepared to adapt our policy to the altered conditions if it can be clearly shown that such a new departure would be advantageous.

3. Six years ago we decided to return the Boxer Indemnity to China because it was considered to be both unjust and politically inexpedient to continue to inflict this penalty upon the present generation of Chinese. We were also influenced by the policy of the United States and Japanese Governments, who had decided to remit the balance of their indemnities for educational and cultural objects. Having decided in principle to return the indemnity, we then sought for means whereby this act of generosity might be so carried out as to promote friendlier relations and a better understanding between the two peoples. Our first intention (as embodied in the 1925 Act) was to utilise the money for educational and cultural purposes mutually beneficial to both countries under the supervision of an advisory committee established in London. The events of 1925, and the growth of Nationalist feeling in China, resulted in this proposal, which would have been probably welcomed a year or two earlier, being criticised in China as leaving the administration of the fund almost entirely in British hands. Being aware of this criticism, the Advisory Committee. which was in course of being established, decided to send a delegation to China under the chairmanship of Lord Willingdon to investigate conditions on the spot. As a result, our policy was changed (May 1926) and it was decided to entrust the control of the funds to an Anglo-Chinese Board of Trustees (with a Chinese majority) * See Annex I, telegram to Peking, No. 256 of September 29, 1928. 4650 [18420]

3

25

85