(6)
DOWNING STREET,
9th December, 1904.
460
*** TINY Nyk od
Ky 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 wished for
a talk preliminary to another conference I should be gl to meet them.
They turned up in the afternoon, Keswick explaining 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
that section would be greater per mile than on ours, and they would make a point in the prospectus of the pros-
pective 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 price facie,
bondholders were only concerned to get their 55
though
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