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system of communications which the Chinese Government
hold to be most important and most urgent, is an
air system. If, however, railway rehabilitation is
to be attempted by this means, I trust that the
claims of the Kowloon-Canton Railway will not be
overlooked and that a determined effort may be made
to secure the construction of the junction line at
Canton to connect the Kowloon-Canton with the Canton-
Hankow railways. On this point I would refer you
to the 7th paragraph of my secret despatch dated the
18th October 1926.
10. As long ago as June, 1925, His Majesty's Government, after deliberations which had extended
for more than three years, passed the China Indemnity (Application) ct. In terms of that Act, His Majesty's Government is presumably still committed to the application of the Indemnity to such educational and other purposes as in the opinion of His Majesty's Secretary of State for Foreign Affairs are
beneficial to the mutual interests of His Majesty and
the Republic of China. My sole excuse for my repeated interventions in this matter is my conviction, which grows stronger every day, that it is indispensable to the success of any educational scheme, which is to be in the mutual interests of
Great Britain and China, that the University of Hong Kong should play a leading role therein.
When
the Willingdon Delegation advised and the Advisory Committee and His Majesty's Secretary of State for Foreign Affairs agreed, that the administration of the
Indemnity
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