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which the Chinese Government might take exception. Mr. Bland said that conditions of this kind while without possible detriment to the interest/ of the Chinese Governtent, were absolutely necessary to inspire con-fidence amongst investors. He had sent to Shanghai for one of the Bonds and hoped to be able to reassure His Excellency as to its form
being unobjectionable.
Article 2. M. 5. T'ang Shao-Yi objected to the wording of this article in so far as it referred to the Working Agree-ment to be hereafter negotiated between the Viceroy and the Hongkong Government. He considered this as a ratter beyond the proper scope of
the present Loan Agreement which referred only to the Chinese section of the Hailway and be therefore proposed to delete all sention of the
said working agreesent, incidentally, he objected to the ters as liable
to create misapprehension and difficulty in the future, and stated that
the Chinese Government would not bind itself to the condition that the
two sections of the line should be worked as one undertaking it being
their intention to have separate frontier stations and an independent
system, under conditions similar to those existing at the Hengtsi
Junction of the Northern and Ching Han Hailways.
kr. Biand expressed regret that this
intention had not been made clear from the outset since the loan issue
must inevitably be prejudiced if there be any doubt as to the Railway
being worked under reciprocal arrangements calcuisted to promote its
earning powers, he pointed out that the Working Agreement had been
frequently mentioned and its eventual arrangement assured at earlier
meetings; siso that in Article 21 of the viceroy's draft it is specific-
-ally provided for. After considerable discussion.it was agreed to
substitute for the clause as drafted the Viceroy's original proposal,
reading as follows:-
"The junction of the sections of the maiiway from *Canton to the boundary of the Kowloon Leased ferritory yaler British *control and from the said boundary to the port of Kowigon respectively
shali