CO129-512-4 Boxer Indemnity Settlement 22-12-1928 - 9-5-1929 — Page 111

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the first instance to use the funds for the rehabilita-

tion of existing lines as being more immediately

advantageous to China then new construction; that

preference will be given to those railways in which

there is a British financial interest, and that all

orders for bridges, locomotives, rolling-stock, rail

and all other railway equipment, purchased out of

British indemnity funds shall be placed in the United

Kingdom. The note should go on to say that the money

thus advanced by the trustees of the Indemnity Fund

will be regarded as loans to the railways in question,

bearing a fixed rate of interest which will form the

educational endowment envisaged by the Buxton Advisory

Committee. Further, as an immediate contribution to the

educational purposes of the fund it is the desire of

the National government that out of the accumulation now

on deposit a sum of £200,000 should be transferred to

Hongkong University and a sum of £200,000 should be

placed at the disposal of the Universities Committee in

London for the assistance of Anglo-Chinese studies

It is also their intention as future instalments become

due that besides the principal purpose of railway

rehabilitation they shall also be partly applied to

immediate educational purposes within the scope of the

recommendations of the Buxton Committee. If these

proposals recommend themselves to His Majesty's

Government the National government will proceed to

•

appoint a Board of Trustees to administer the fund on

these lines.

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