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or if it were considered that "political or other conditions in China" were such as to make the proposed undertakings "un- duly speculative", it was recommended that the money should at once be invested in approved trustee-stock in China or abroad. Finally, the delegation advised that a Board of Trustees should be established in China "to control, administer and allocate the indemnity funds in general conformity with the principles laid down" in their Report; that its constitution, functions andresponsibilities should be in accordance with a certain draft plan; and that after the Board had been organized the Advisory Committee in England should be dissolved.

The draft plan in question, as drawn up by the Willingdon delegation, will be found in the published Report, pp. 159-161. The Board was to consist of eleven members, of whom six were to be Chinese and five British. The members were

to be appointed in the first instance by the Chinese Govern- ment "after consultation and in agreement with Great Britain." Vacancies were to be filled by co-optation. The proportion of Chinese and British

members was to be maintained

till 1945 (the year of the final amortisation of the indemnity), after which the Board should have power, if it thought fit, to replace any or all of the British members by Chinese. The Board was to have "complete power" to apply the funds under its control "to such educational and other purposes, and to make such investments for the perpetuation of the fund", as it "might from time to time determine, in accordance with the general scheme and principles" recommended by the Willingdon delegation and accepted by the Advisory Committee. After the end of each financial year, the Board was to prepare a report of its receipts and expenditure in that year, and a copy of the 585 report was to be submitted to each of the Governments of Great Britain and

Each China for its information.

EIN Government * was to be en-

titled to send an "observer" to attend the meetings of the Board but neither of them was to take any part in its proceedings or