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4. In reply to such a communication His Majesty's
Government would agree to remit forthwith to the
unfettered control of the National government all
future payments of the Indemnity, and in due course
to introduce legislation in Parliament to transfer to
the National government the balance of the instalments
already paid and on deposit after having set aside
£200,000 for Hongkong University and £200,000 for the
Universities Committee in London as proposed.
5. Future instalments can be remitted without
legislation here, but it will be necessary preliminary
step for His Majesty's Government to lay White Paper
before Parliament for 14 days; subject to acquiescence
of Parliament having been obtained in this way His
Majesty's Government will agree to remit all future
payments; but instalments already paid must await
Amending Act.
6. Please telegraph your observations both as
regards these proposals themselves and proposed method
of approach. Have they your approbation? Have you any
improvements to suggest? How and when should they be
put before the Chinese? One way would be for you to
suggest to C.T. Wans that the receipt of a letter in
terms outlined in paragraph 3 would assist you in
getting a decision out of His Majesty's Government.
7. Stipulation that orders for railway materiel
must be placed in Great Britain is open to criticism
as being contrary to principle of "open tender" for
which we have long contended, but in this case we are
not.....
D
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