CO129-512-5 Boxer Indemnity Settlement 21-5-1929 - 21-5-1929 — Page 75

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3. In view of the urgent necessity, in connexion with the

reconstruction and development of China, of the reconditioning of

the existing Chinese Government railways in the first instance,

the Chinese Government will take the necessary steps to invest

the accumulated funds now on deposit and the instalments due for

payment shortly in rehabilitation of the said railways, especially

taose lines in which British financial interest has been particu-

larly concerned, to which lines attention will first be given. If funds permit, the urgently necessary work in connexion with the conservancy of the Hopei rivers and the Huai river will similarly

be financed out of the monies in question.

4. With regard to the rehabilitating and building of railways

from the Indemnity funds remitted or from loans secured on the said funds, the terms of existing contracts will be taken into consideration. Subject to the terms of such contracts the Chinese Government will fav urably consider the placing in Great Britain of orders for materials required and purchased broad out of these funds, including bridges, locomotives, rolling-stock, rails and other railway equipment. Similar favourable consideration for British goods will be given in the case of the other productive undertakings mentioned above.