CO129-512-4 Boxer Indemnity Settlement 22-12-1928 - 9-5-1929 — Page 156

COPY

(F 267/57/10)

C.R.T. 4221/28.

Sir,

COMMERCIAL RELATIONS AND TREATIES

DEPARTMENT,

Board of Trade,

Great George Street,

London, S.W.1.

12th January, 1929.

155

I am directed by the Board of Trade to refer to your letter (F 7024/6/10) of December 22nd in regard to the pro- posed waiver by His Majesty's Government of all claims on the British balance of the Boxer Indemnity.

The Board of Trade would welcome an agreement under which the British share of the Boxer Indemnity was expended in the placing of orders, which would give employment in this country and would benefit China by the rehabilitation of her

transport services. At the same time the Board anticipate that there would be a considerable outcry in this country

were any arrangement with the Chinese Government concluded

which provided for the use for new railway construction of the major part of the fund available and if no account were

taken of the position of British creditors to whom the

Chinese already owe large sums of money advanced originally for the very purpose. The Board suggest therefore that any

such arrangement should not only have in view the economic

development of China and the placing of orders with British

manufacturers, but should be framed so as to place the

British creditors in question in a more favourable position

than they occupy to-day. After careful examination of the

whole problem the Board consider that these ends would best

The Under-Secretary of State,

FOREIGN OFFICE. S.W.1.

be/