CO129-512-4 Boxer Indemnity Settlement 22-12-1928 - 9-5-1929 — Page 63

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the first instance Chinese government 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-

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

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 China committee

in London.

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......