606
Copy
Finaliz of fir
1 9/12/00 Pz. copay
C.O.
41961
Downing Street,
12 9th December 1904.
My dear Sir Cecil,
Yesterday morning I had a message from Keswick asking if they could see me in the afternoon. I said that I should wish you to be present, and of course could not get you up in time; but if they wish- ed for a talk preliminary to another conference I should be glad to meet them.
They turned up in the afternoon, Keswick ex- plaining that he was off to Scotland for a few days.
He then spoke in the sense of his letter (which you have already seen) as to the retention by each party of local receipts. Macrae followed on the same lines. His points were (1) that the Chinese would not agree to this part of my scheme (2) that the Corporation's loan would have a better reception if their alternative were adopted; for they were advised by their experts that the local traffic on the Chinese section would be greater per mile than that on ours, and they would make a point in the prospectus of the prospective profits from local traffic.
As to (1) I replied that it might safely be left to the Chinese to raise the objection as they were well able to take care of themselves in negotia- tion, though, I hinted as delicately as possible, they would undoubtedly raise the point if in any way prompted.
As to (2) I pointed out that, prima facia, bondholders were only concerned to get their 5% though