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the Cabinet decision, since lines already pooled under the Consortium Agreement may have to be specifically excluded from consideration in connexion with the Indemnity funds. There may also arise the question of branch lines connecting with the line or lines to be built out of the Indemnity money if the rolling stock on these branch lines has been purchased from some other country, it would not seem practicable to expect the Chinese to undertake that only British rolling stock will be employed on the Indemnity line or lines.
3. Sir Austen Chamberlain would be glad of an early reply to this enquiry, as instructions to His Majesty's Minister will be suspended until the observations of the Board have been
received.
I am, etc..
(sa)
GEORGE MOUNSEY.
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