Eight-Nation Alliance captured Beijing in 19 (the 26th year of Guangxu reign of Qing Dynasty), and forced the Qing government to sign the "Xin Chou Treaty" on September 7th of the following year, which stipulated that 11 countries, including the United States, Britain, Russia, Germany, Japan, Austria, France, Italy, Spain, the Netherlands and Belgium, should be paid 45 million yuan in compensation, with an annual interest of 4%.

At the end of World War I in p>1918, Germany, Austria and other allied countries lost, while Britain, France, the United States and other allied countries won. At that time, China joined the Allies and became a victorious country.

In May p>1924, China and the Soviet Union resumed diplomatic relations and signed the Outline for Solving Outstanding Cases between China and Russia. The Soviet Union announced that it would give up the imperial Russian part of boxer indemnity. After the Paris Peace Conference, prompted by the patriotic movement of the people in China, although the British government declared in December 1922 that "China should pay the installment payment in full", it attached conditions to it "for the mutual benefit of the two countries".

After many negotiations, it was not established until 193 by an official exchange of letters between the Chinese and British governments. The exchange of letters stipulates that "(1) the board of directors shall be established;

(2) set up a fund for all the returned Geng funds, which will be used to build railways and operate other production undertakings, and then set up educational and cultural undertakings with the interest earned;

(3) A material purchasing committee is set up in London, and all foreign equipment borrowed by railways and other production enterprises must be submitted to the material purchasing committee for purchase in Britain. "

It can be seen that the imperialist countries have attached conditions to the return of Geng funds, and the use of funds is strictly controlled by the other side.

On April 8th, 1931, the first Sino-British G Fund Board of Directors was held in Nanjing, and the material purchasing committee was established in London on the same day. Other countries, such as the United States, France, Italy, the Netherlands, Belgium, etc., also followed the example of Britain and successively agreed or exchanged letters with the China government to determine the way to return to boxer indemnity. In this way, some boards of directors have been established to manage the return of Geng funds from various countries.

In p>1933, the National Government and the Executive Yuan "set up a joint meeting of all the G-fund management organs", appointed counselor Zhang Pingqun as the secretary to handle its affairs, and stipulated that a regular meeting should be held once a year in October to "discuss the important principles of next year's budget and use".