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H.M. Minister and Foreign Office which is being repeated to you. (2) As to the debt due on account of the Canton-Kowloon railway I did not think it possible in the circumstances explained in H.M.Minister's telegram of 26th May to increase amount already fixed. I did not, desire however to reject your proposal on this point without knowing exactly what the debt was and I therefore asked in my telegram of 27th May for further detalls. I have not yet received these but it appears from Lampson's telegram of 26th May that he is proceeding with negotiations andit therefore now appears impossible to to make an increase in the manner proposed in the allocation out of the Boxer Indemnity.
Position therefore is that although this is
not to be recovered out of Boxer indemnity funds it remains as before an obligation of China.
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