CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 59

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me in one authoritative quarter). On top of these re-

ports had come Sun-fo's very significant last minute

amendments of our agreed Boxer drafts with net result

that I was now instructed to bring your specific warn-

ing against any infraction of Hukuang contract of

1911. These instructions emanated from the present

government and not from their predecessors in office (see my telegram No. 116).

(3). Minister for Foreign Affairs said he

thought that the fear underlying what I had just read

to him was unfounded and added (I took down his words)

that "the Chinese government had no idea of declaring

existing contracts null and void; Dr. Sun-fo had in

mind the probability of existing contracts being re-

vised by arrangement in the same way that Boothby was

now negotiating modifications of Shanghai, Nanking rail-

way agreement. There was no intention of going back on existing agreements save by arrangement."

(4). On his going on to hint at use of Russian

indemnity funds I pointed out that the same considera-

tions applied as regarded 1911 agreements.

(5). Finally I said discussions were only sus-

pended; Mr. Aveling was remaining as my representative

in the South; and if and when the farther instructions

on either of these questions reached me I would accord-

ing to their natures communicate with him further.

(6). Minister for Foreign Affairs was unusually silent and unargumentative during the interview. There can be little doubt that this delay in liberation of Boxer funds is a disappointment which is probably en- hanced by the knowledge that it is no one's fault but their own.

Addressed to Foreign Office No. 120; repeated to Peking, Commander-in-Chief Wei-hai-wei and Hongkong.