ABSTRACT

In order fully to understand the difficulties in which the Nanking government accomplished its work of reconstruction one must take into account how, ever since the occupation of Manchuria in 1931, Japanese aggression step by step deprived Nanking of important sources of revenue. Between the British and Chinese governments an agreement was concluded in 1930 providing that the British share of the indemnity should be used for technical reconstruction and for the development of higher education. Two-thirds of the available funds were set aside for the completion of the Canton-Hankow line with material purchased in Great Britain. The construction of the section from Chuchow to Shaokuan, which completed the Canton-Hankow railway, is an example of the co-operation of two States to their mutual advantage. The collaboration on this line of railway has greatly contributed to the popularity which England at present enjoys in China.