CO129-512-4 Boxer Indemnity Settlement 22-12-1928 - 9-5-1929 — Page 53

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the first instance Chinese goverment will take the

necessary steps to invest monies in hand and due for

payment shortly (with the exception of amount required

for the purposes specified in paragraph 3 below) in re-

habilitation of said railways preference being given

to those lines in which there is a British financial

interest. All orders for railway materials required

and purchases out of these funds including bridges

locomotives rolling-stock rails and other railway equip-

ment will be placed in Great Britain. Funds thus in-

vested will be regarded as a loan to railways in question

service of which will be available as to repayment of

capital and interest after prior charges on railway

revenues concerned have been met as an endowment fund

for educational purposes. If funds permit the urgently

necessary work in connection with conservancy of Hopei

rivers will similarly be financed out of monies in

question under the same conditions as railway work.

3. It is the further intention of Chinese govern-

ment in order to make an immediate start on Anglo-

Chinese educational work of the kind contemplated in

the report to transfer out of accumulated funds now

on deposit the sum of £250,000 to Hongkong University and a sum of £200,000 to Universities of Chine committee

in Londo11.

4. With regard to future instalments of indemnity funds these will also be partly applied to immediate educational purposes as recommended in report besides being invested in railway rehabilitation and construc-

tion and river conservancy work in manner and under

conditions..