From Stanley Kong.

C.0. 39719

Received 9:15 am.

27.10.58.

530/28th Aug

Canton - Kowloon railway

Ref. I to my letter

The draft of the final loan agreement is now awaiting my concurrence.

It embodies Article 12 of the printed draft agreement, which is subsequent and important.

Two sections relating to the junction & joint working of the Canton line negotiated by myself & Thesh, but it does not stipulate for negotiations being commenced within a specified time. No reference to connection with Hankow-Canton line is made.

I am not satisfied with these conditions, but I am assured that they are the best the British financiers can offer.

I propose to concur. Please telegraph whether you approve.

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