71
interests. The correspondence also suggests
the necessity of steps being taken to stop
this transfer which, apart from being antagonistic to British interests in Southern
China is apparently not looked upon with
favour by the Chinese Government, from fear
that it may result in weakening Chinese
Sovereignty in the control of the railway.
2
I am also to enclose
a copy of a confidential despatch from the Acting Governor as to a possible Concession for Construction of
the
railway from Chinking on the Yangtze to the Hang Sang frontier.
b
3. With regard to the remaining paragraphs of your letter dealing with the construction of a railway between Hong Kong and
Canton, I am to request you to inform Lord
Lansdowne that proposals recently received
from the British and Chinese Corporation are
now under consideration and Mr Lyttelton will
communicate further with his lordship on
this subject. The proposals include one for
a Three per cent guarantee for the railway
and, as at present advised, Mr Lyttelton
contemplates
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