CO129-538-1 Hong Kong University 31-12-1931 - 6-8-1932 — Page 203

deliberations.

-8-

310

Perhaps the most important of the recommendations

of the delegation was to the effect that all the indemnity funds, capital and interest, should pass to the exclusive control of the Board of Trustees, and that the British Government "should cease to exercise any control over the funds or the disposal thereof." This proposal was of fundamental significance, because it involved the surrender of the right of ultimate control hitherto vested in the British Foreign Office. very early stage in their proceedings the members of the Willing- don delegation found it necessary to make this recommendation

At a

Without

in order to satisfy public opinion in China and to dispel unpleasant suspicions regarding British good faith. waiting, therefore to complete their investigations and prepare their Report they communicated with the British Government by

telegraph and pointed out that what mainly aroused hostile

criticism in China was the very existence of the Act of 1925,

which "left the funds in the ultimate control of the British

Secretary of State for Foreign Affairs". (The Act in question is quoted on pp. 46-7 of the Report of the Advisory Committee.)

They therefore informed him that a definite recommendation to

the effect that the funds should be withdrawn from British con-

trol and placed in the hands of a Board of Trustees in China

their

would be included in final Report, and requested him, if he

approved of this recommendation, to authorise them to issue a

public announcement to that effect.

The Secretary of State gave his provisional

approval to the proposal, subject to Parliamentary sanction,

and the announcement was therefore duly issued in China, under

his direct authority, on May 26th, 1926. It is unnecessary to

quote the whole statement here as it is printed in full in the

Delegation's Report (pp.161-2), but its conclusion, which is of

special importance for our present purpose, must not be omitted.

"The Secretary of State, while desirous of further demonstrating