CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 12

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(5°4)

No.53.

Representatives of the Northern

Construction Company have already approached

Sir M. Lampson (see telegrams enclosed in Nos.33,

34 and 35). In view of the attitude he then

took, in particular the objections set out in his

telegram enclosed in No.34, I do not think we

should actively support the Company, apart from the

impracticability of importing fresh conditions

into our proposed settlement with the Chinese at

this stage.

The whole matter of this Concession

is apparently going to raise very difficult

questions with regard to the validity of previous

Concessions and the Consortium arrangements (see

telegram from the F.o. enclosed in 35). The

construction of the Canton-Hankow Railway and of the

loopline at Canton connecting it with the Canton-

Kowloon Railway are, however, matters of

considerable importance to Hong Kong, and I think

they might be urged upon the Chinese Government

without making them a part of the agreement for the

Boxer Indemnity as suggested by Mr. Ellis in his

minute of the 11th of June. A copy of 53 has

already been sent to the F.0. and a copy has also

been communicated to the Dominions office. I would

suggest that we might now proceed as in draft

herewith very much for consideration

›n}

No.55. It is clearly impossible, for the reasons

stated by the F.0. to try to get any assurance as to

the payment of this debt as a part of the Boxer

Indemnity settlement. I would suggest that we should

telegraph as in draft herewith and that copies of

the correspondence on this particular point should

then