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was a non-binding document, which although authorised by the Tsung-li-Yamen, had not formally received the Emperor's sanction, and moreover Clause 5 of this agreement seemed specially to provide for a state of affairs such as now existed.

Mr. Ross, replying to the foregoing remarks, told the Deputies that if they would refer to their archives, date he believed about the end of the year 1898, they would discover correspondence which passed between Sheng Kungpao and the then Viceroy of Canton, on the subject of this railway. In the letters referred to (copies of which Mr. Ross had read) Sheng explained the instructions he had received from the Throne, quoting these in full with the Imperial rescript. Under such circumstances it was therefore quite incorrect to state that the matter had not received the Emperor's sanction. (Mr. Tebbitt here stated that the date of the Imperial Edict in question was about October 1896).

The Deputies professed surprise to learn of the existence of this correspondence, and said they would examine the Viceroy's records about the date mentioned.

Mr. Ross said, with reference to clause 5 of the Preliminary Agreement, he had personally drafted this clause in 1899 at Shanghai; the local difficulties then apprehended were interference with survey parties, fengshui prejudices, and trouble over the removal of graves &c., for all of which Sheng said the Viceroy of Canton would, if necessary, make arrangements. His Excellency however, was apparently disinclined to make arrangements to meet local difficulties, and in whatever sense this clause might be read, such an attitude could neither be regarded as the spirit nor the letter of the clause in question.

Mr. Wen continuing his remarks, said that while they did not intend that the cancellation of the Agreement should entail any monetary compensation as was exacted by the American Company over the Yüan Han line the Viceroy understood that the Corporation had been put to some expense over a survey of the proposed route of the line, and His Excellency was willing to refund such outlay, but as...

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