CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 104

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that the most advantageous plan consists in the invest-

ment of two-thirds of the said indemnity funds in

building railways in China with the proceeds accruing

therefrom to be applied to educational purposes, while

the remaining one-third will be partly invested in other

productive undertakings, the returns from which will be

devoted to the support of education, and partly used

for education by direct expenditure. For control and

administration of indemnity funds remitted, the Chinese

government will duly appoint a Board of Trustees which

will include a certain number of British members.

In view of the urgent necessity in connexion with

the reconstruction and development of China, of the

reconditioning of the existing Chinese government

railways in the first instance, the Chinese government

will take necessary steps to invest the monies in hand,

and due for payment shortly, in rehabilitation of the

said railways, especially those lines in which there

is a British financial interest, to which attention will

first be given. With regard to the purchase of railway

materials and equipment to be made out of the funds,

the terms of existing contracts will be taken into

consideration. Subject to the terms of such contracts,

all orders for railway materials required and purchased

abroad out of these funds including bridges, locomotives,

rolling stock, rails and other railway equipment will

be placed in Great Britain.

The funds thus invested

will be regarded as a loan to the railways in question,

the service of which will be available, as to repayment

of capital and interest, as an endowment for educational

purposes.