preliminary agreement.

As regards the line within the territory of

Kuangtung, the Chinese gentry and merchants are now

desirous of raising the necessary capital and con-

structing this line themselves, so there is no need

for the above-named Corporation to raise funds on

behalf of China for the construction of this railway,

This course corresponds moreover with the altered

conditions whereby the Hongkong Government propose

to undertake the construction themselves of the rail-

way in British territory.

Some time ago we received a telegrain from the

Viceroy at Canton reporting that he had already in-

formed His Britannic Majesty's Consul-General of

this conclusion to raise the capital ourselves for

the construction of this line. So this matter should

be gone into by His Excellency, and this Board sees

no reason for appointing any official to enter into

negotiations with the Corporation's representative.

I trust therefore that Your Excellency will take

note

530

note of our views and direct the Corporation to com-

ply therewith.

I avail, &c.,

(Signed)

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