Paraphrase.

(REG! 28 AUC 06:

Telegram Governor Sir M.Nathan to the Earl of Elgin. (Received, Colonial Office, 9.24 a.m.28th August,1906).

You

31949

157

Canton-Kowloon

Referring to my despatch of 26th July, Railway. Following telegram sent by me to His Majesty's Chargé d'Affaires:-

"Referring to your despatch of 4th of August. Consul General and I have endeavoured to? induce Viceroy to negotiate working agreement but he has declined to do so until Peking negotiations settled. "Under these circumstances loan agreement should provide that railway is to be constructed so as to admit of being worked without break as one line with British railway from Kowloon now under construction and so as to connect with Canton-Hankow line. it should embody Article 17 of printed draft loan agree- ment. It should further provide for negotiation of

Also

working agreement between Viceroy and self being commenced within one month of loan agreement being

signed.

Before it is executed I wish to see the new draft

loan agreement".

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