British portion, exigent and

over £800,000 for the

which is a

Chaisse portion;

Z

mydifferent thing from the £900,000 £600000 mentioned

by Sir M. Nathan.

But it is seen that the

Expenses allow nothing for land,

Thein Tsa Tsu

he proposes to put the

now for the reclamation of

Baz

where he

terminal station: the cost of their work

fake

the Col. port.

The Engineer also proposes a

tunnel

under the fire. Hands, who will bring

into the matter.

the 2.0. into the

Altogether it seems

might do

well to Consult

152

that we

C. Affuli

experts before we hale ourselves when

it is not too late) other scheme (if it

Draft

annexed

M

1076

for consideration

C.Pd. 17 June

MO

C. O.

19795

THE BRITISH AND CHINESE CORPORATION. LIMITED. 445

USE

JJ 04

3. Lombard Street, London, 20

NI

EASTERN

No.

COLONIAL

88

OFFICE

The Under Secretary of State,

Colonial Office,

Sir,

Downing Street, S. W.

June 3rd. 1904.

KOWLOON TO CANTON RAILWAY.

On the 6th. ultimo I acknowledged the receipt of

your letter of the 3rd. idem No. 13052/1904 in which after

expressing views adverse to the proposal relating to the above

named projected Railway, which had been submitted to you by

the Corporation, you invited the Directors of the Corporation

to consider a counter proposal made by yourself and specified

in clause 5 of your letter.

The counter proposal having been considered by the

Directors of the Corporation the observations they had to make

were embodied in the accompanying Memorandum, a copy of which

I submitted personally to and left with Sir Matthew Nathan and

Mr. Lucas on the 31st. ultimo.

It will be seen from this Memorandum that the

principle of your counter proposal is viewed favourably by

the Directors of the Corporation and that in receiving an

expression of your concurrence to their so doing they will

proceed to negotiate with the Chinese Authorities for a

"Final Agreement" for the issue of a Chinese Railway Loan to

construct that portion of the Railway which will be in Chinese

Territory.

The Agreement will necessarily be on the lines of

the Shanghai Nanking Railway Loan Final Agreement with such

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