CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 73

70

I have,

in China are more or less beneficial to such interests.

however, slightly modified the original phrase. Sun Yo's

rejection of assurance about existing contracts is definitely

objectionable, as are the words which he proposes to insert.

I have modified the phraseology in order to make the condi tion

in question more neceptable, but I cannot go further than this.

The phraseology of paragraph á of my redrafted note can be

reconciled with our Consortium obligations and enables us to

widen assurances so as to apply not only to reconditioning of

existing lines but also to new construction.

Notes B and C. I approve.

Note Do For "after the necessary legislation has been"

read "subject to the necessary legislation having been".

Note E and paragraph 3 of your telegram No. 102. I had

myself refrained from any reference to Indemnity Fund in this

connexion and would prefer to leave note as drafted, but you

have discretion to accept sun yo's addition if you think

advisabis. Improved railway revenues should make it quite easy

for Chinese to pay these debts.

Notes F. 0 and H.

I approve.