through the agency of this Corporation, and as it is duly desirable that the whole line, in our territory and outside, should be run, and counted on the same methods, we must. deal with them.
Come to terms.
The terrain being very mountainous, though I make out that there ought not to be more than 20 miles, out of the total 115, within our territory.
It will not do for a British colonial government to set itself to own a railway in China. It might raise awkward political questions and it could be a bad precedent for other foreign powers.
We have to try & determine what consideration to induce them to make this piece of line, and indirectly the whole.
Or the Mailing Contract (d) the Corporation should be bound over in some way.
I had originally thought it possible that the railway could remain a British company.
As regards land grants, we think on the alternation block system might be the consideration. But we have quite come to the conclusion that, for various reasons, constructing and working a line from Canton to the Hongkong frontier under guarantee from the Chinese government will not do: Much of the land is not in government hands; the whole Chinese area is limited and likely to become exceedingly valuable.
Conder guarantee from the Chinese government, promising the support of H.M.G. in procuring such modifications in the concession as may be necessary to ensure that the handling of the railway will be in British hands, you will notice that upon this point being assured and such other modifications as may be considered necessary, we shall...
We had better eliminate this. There would be endless complications if the Hongkong government continues to have nothing to do with the section of the line in Chinese territory. As Sir M. Nathan's memo shows, out of a total probable expenditure of £1,500,000, nearly all its profits will be spent on the line within the British frontier, the company being in a disadvantageous position.
(a) that Mr. Reswick's draft contract states the government sharing the net profits of the line with the company.
Govt. to take it out, if as I think is...