of the Hongkong and Shanghai bank and
him to communicate with M. Keswick of Jardine Matheson & Co., who is chairman
of this British and Chinese corporation.
Subsequently Sir T. Jackson and Mr. Keswick came to see Mr. Johnson & me and it was
arranged that Mr. Reswick should make formal proposals. I had said that I attached much importance to the making of the line, that I thought it was a sine qua non that the whole enterprise should be exclusively in British hands, and that as far as possible it should be one transaction - certainly no same company should construct the line both within and outside Kowloon.
Eventually Mr. Reswick brought the enclosed draft, evidently the best he could contemplate at the moment; the suggestions made in it would have to be modified, but that it would serve as a basis for negotiation; and Sir M. Nathan saw him - having already seen Sir T. Jackson - I have attached the enclosed Memo: of interview.
Memo
As to the importance of
the Scheme
Page 407
"I think that there can be of no doubt that it
is of vital importance to the colony of Hongkong and to British interests in South China." The Foreign Office
in their letter which I have sent on with the Hankow-Canton papers say that "it would be most desirable that the construction
of this line should be proceeded with as soon
as possible". We must ensure the preeminence of Hongkong and the bulk of the trade of
great part of Southern China.
As a purely local matter it is of importance, for I have been often spoken to as to the desirability of making
a tramway across to the new railway station in order to bring luggage down to Hongkong. While it would make land in the vicinity
useful for Hongkong citizens. The advantages likely to accrue to Hongkong are well set out in
M: May's confidential despatch of 15. Jan: F-5890-1 I think
two points
are clear
(a) We should keep the Imperial govt out of it. If the Treasury & Parliament come in, the work will never be done. Mr. May in para. 11 of 5290 hints at an Imperial guarantee, which would mean Imperial legislation. We must rely on the Hongkong govt, and Hongkong resources alone. We are not likely to get our object except by