16

break of gauge, while Messrs. Keswick and Macrae stated that it had not been considered by the Corporation. It is right to add that, so far as we know, no work has been begun on the projected line from Canton northward.

25th October, 1904.

G. V. F.

0

564

38877

Ch

Sir M. Ommanney

than

M-Fiddes and Sir C.C. Smith howe carried this matter for further I thought would be possible a few weeks

Dentively agree in the memo:

As I understand

The two governments have made down

the toxines

The Chinese govt in making its line will

nor the Chinese Corporation

as its agent

especially in financial mattus & that corporation will be trusted

the bondholders.

To secure our two main sects of M-Fiddes

proposals

are carried out

(1) we connect Hongkong by rail

with Canton

(2) to exclude foreigners except as investors

in the proposed loan

I think the negotiations had better go forward with the understanding that Sir M. Nathan may propose some modifications in detail

CPL.

3 No.

PP.4.0

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