asked the Secretary of State for Foreign Affairs whether he can make a statement of the present position of affairs in China and particularly at Shanghai and Nanking?

My information is that the general condition in China is at the moment peaceful, and that the situation in Shanghai and Nanking is normal. It is reported that fighting has broken out again on the Tientsin Pukow railway, but the extent and significance of this is not yet known.

Is the right hon. Gentleman in a position to make any statement with regard to the rather grave question that has arisen in China, the question of extra-territorial rights?

That question does not arise out of the answer.

asked the Secretary of State for Foreign Affairs the reason for the delay in settling the question of the disposal of the Boxer Indemnity, the balance of which is to be returned to China; and whether he intends to take any steps to expedite this matter?

The conversations of last June between His Majesty's Minister and the Chinese Minister for Foreign Affairs were inconclusive. The Chinese Government expressed the desire to invest the bulk of the funds in the completion of the Canton-Hankow Railway. This proposal brought to the fore questions of pre-existing agreements and obligations which have required careful consideration and have delayed progress towards satisfactory arrangements regarding the indemnity. New proposals are now under discussion between His Majesty's Minister and the Chinese Government.