Sept. 28, Chinese papers published a vague report the day before yesterday that the Ministry for Foreign Affairs proposed to approach France for the return of her share of the Boxer Indemnity. The Chinese press forgets what presumably the Ministry knows, namely, that the French share of the Indemnity is being used for the rehabilitation of the Banque Industrielle de Chine, under the agreement with China concluded in April, 1925. More to the point is it to ask what is being done about the British share of the Indemnity. This question has "additional point in view of a resolution adopted at the Communications Conference held in Nanking in August, in favour of using the British and Belgian shares of the indemnity as security for Government bon be devoted to the completion lof the Canton-Hankow and Lunghai railways and for much need-fed railway repairs. Some of the delegates objected that it had always been intended to.apply this money to education. But the Minister of Communications, who seer s to nave favoured the more practical scheme, pointed out that whatever resolution they took would only have the force of a recommendation to the (Government, and the pro-railway party carried their vote by a large majority.
There is not the slightest reason under the report made by Lord Willingdon's Committee why a large portion of the Boxer money should not be applied to railway construction: indeed this was an essential part of their recommendations; and the time is surely ripe for the money to be turned to practical account. It is nearly six years since Great Britain notified China she had decided in principle to devote her remaining share of the indemnity to purposes "mutually beneficial to both countries."
The Bill to this effect did not become law until March, 1925, owing to internal difficulties arising from two elections and changes of government. But the money has been accumulating since December, 1922, when project was first mooted, and must amount by now to between two and three million pounds. [rhe total sum due between 1922 and 1945 when the last payment on the indemnity will have been made, is over £11,000.000. Lord Willingdon's Committee came to' k,|China in 1926 and spent some months exploring the whole question thoroughly. From the outset there was a party strongly favour of railway construction, the argument being used that from the resulting revenue educational endowment fund lit be formed which would on practically for ever. And there was a story, which may vers well have been true, that President Hsu Shih-chang, when asked for his opinion. exclaimed fervently, "For goodness' sake let us have no more students."
Ultimately the Committee com promised. A part of the fund, it recommended. should be immediately spent on agricultural education and improvement, scientific research, medicine and bile health, and other educaial purposes, the details of which need not concern us now But it was also advised that an investment fund of between three-and-a-half and five millions sterling be formed, the income from which should be used "for certain national productive undertaking." We read that the Commission were "Unanimously of opinion that the most profitable work of outstanding national importance would be the extension of railways and they [strongly recommend the construction fof the unfinished section' of the Canton-Hankow railway a length of 280 miles, at an estimated cost of £5,000,000.
Alternatively, if objection were found to this proposal, the Commission urged river conservancy, instancing the Chihli Conser-vane and the Huai river. It may be mentioned' that the expenditure of all moneys was to be in the hands of a Board of Trustees, six Chinese and five British, Lord Willingdon's Committee had nothing to do but to report:
the Statutory Committee. at home, which had been set up (under the Act of 1925) to advise the Secretary of State for Foreign Affairs on the ultimate expenditure. That nothing has yet been done to give effect to the Commission's recommendations is not surprising when we remember the turbulent history lof the past two years, which made all practical work a sheer impossibility. But circumstance: appear otherwise to-day. one prophesies in China, and some parts of the country are still gravely disturbed, © But while the chances of disorders jon a large scale would seem to grow steadily less, one may also find evidences of a growing determination among the chief men in the country. to settle down to work and to put the affairs of China in better order.
Moreover the expenditure of the indemnity fund should be adequately guarded by the proposed Board of Trustees. The general recommendations of the Communications Conference, mentioned above, deserve to be considered carefully. Some of its proposals were possibly utopian, at any rate for a future still remote. But it undertook rious manner and needs, Incident ally, it may be recalled that mere repair work on existing railways estimated to cost some eigh-then and a half million dollar: Where is even that to come from, from abroad? Apart from railways, river conservancy is in urgent need of assistance. The Huai River appears to have been behaving itself comparatively well for the last year or two, though a wet summer would speedily find it dealing out fresh disaster, But most serious reports ale received of the Tientsin river: every week the water fon the Taku bar and in the river grows less and only rome the largest scale can work a. cure, for which, again, there is no money. It may well be thought that the time has come for the recommendations of Lord Willingdon's Commission to be given effect.
Text read from the printed page and cleaned; old type leaves the occasional error.