CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 128

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Funds. The Delegation suggested that the money

available for investment should, in the first instance,

be devoted to railway construction. If, for any

reason, railway construction was found to be not

feasible, the money should be applied to river

conservancy work. If neither railway nor river conservancy schemes were found by the Board of Trustees

to be suitable securities, the annual instalments were

to be invested in gilt-edged stock.

6. The Delegation advised that the annual sum

to be applied immediately for the purposes of the

mutual benefit of China and Great Britain should be

disbursed in the following proportions :-

(a) Agricultural Education and Improvement

(including 5% for Famine Relief and

Rural Credit

(b) Scientific Research

...

(c) Medicine and Public Health

(d) Other educational purposes

30%

23%

17%

30%

7. The Advisory Committee endorsed all these

proposals.

The Committee could not, however, but

recognize that the essential element in an endowment scheme should be security. The Committee, therefore, recorded the view that to start with the investment should be placed in Chinese Government or other Government securities, observing that security in the case of the Chinese Government loans is the revenue of China itself, and that the purchase of the bonds would improve the national credit.

8. The Chinese Government is now to be asked to deal with the funds on the lines of the Advisory

Committee's