CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 41

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3. Mr. Choy added that Chinese government had no

intention of ignoring existing agreements but hoped to

have them modified by mutual consent. As regards

Hukuang agreement and its bearing on the question of

completion of Canton-Hankow railway Minister of Railways would, if His Majesty's Government were to agree, con-

sent to confine purchase of materials and rolling-stock to United Kingdom regardless of stipulations in agree- ment providing for open international tender. Mr. Choy

gave me clearly to understand that Chinese government

were determined if possible to utilize British Boxer

funds for completion of Hukuang railway rather than

rehabilitation of existing railways. The former, he

said, was essential for internal, political, economic

and military reasons.