CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 33

Railway; we should then say that we would see no

objection to their raising a loan in China on the

security of a portion of the indemnity for the

payment of labour required in construction and

for such materials as are purchasable in China;

but that at least one-half of the total fund,

including the accumulated deposits, should be

used for credits in Great Britain and that we

attach special importance to the rehabilitation

of those lines in which British financial interest

has been particularly concerned. All funds

advanced for rehabilitation or construction

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should be rogarded as loans to the railways in

question, and the amounts which should be

attributable to the service of such loans will

eventually be applied to educational purposes.

6. If agreement is possible on these lines, I

think other departments concerned would warmly

approve.