asked the Under-Secretary of State for Foreign Affairs if it is the intention of the Government to appoint a special Committee to consider the procedure to be adopted in relation to the utilisation of the Boxer indemnity; and whether there is any suggestion that the Chinese Government should be asked to utilise the sum remitted to meet the coupons of the Chinese 8 per cent. Treasury notes which are now 12 months in arrears?

The Committee is about to be appointed. I am very doubtful as to the desirability of utilising the indemnity funds in order to meet default on the Chinese unsecured debts, but I am prepared to refer the suggestion to the Committee.