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and that a very recent attempt to raise money in this way had proved a fiasco, remarked "perhaps we can borrow from the Hongkong Government".

The subject of the Shanghai riot was also touched upon, Mr. Wen saying that as Head of the Telegraph Department in Canton, he read all telegrams addressed to foreigners, from which source he was able to inform the meeting that everything was now quiet in Shanghai.

Questioned by Mr. Ross as to the progress being made on the Canton-Samshui line, Mr. Wen, who is Superintendent of this line, said that the profits were roughly $30,000 a month, no goods were carried as they possessed no goods waggons, the line beyond Fatshan was not ballasted, but the whole line was well and most efficiently looked after by one foreigner (formerly a locomotive foreman in American employ).

Translation.

CANTON KOWLOON RAILWAY.

VICEROY REQUIRES CANCELLATION OF CONCESSION.

ENCLOSURE IN CONSUL-GENERAL SCOTT'S No.66 OF 1905.

Viceroy to Consul General.

Sir:-

In connection with the proposal for the construction of the Canton-Kowloon Railway, I beg to point out that Clause 5 of the draft Agreement concluded by Sheng, Director-General of Railway Administration, with the representative of Messrs. Jardine Matheson and Company and the Hongkong and Shanghai Banking Corporation lays down that "if on consultation with the Viceroy and Governor of this Province, local difficulties be found to exist, the Agreement shall be mended accordingly"; that is to say, the arrangements for the construction of the line should depend on local conditions. Now several years have elapsed since the conclusion of the Agreement, and the present situation is totally different; with the result that any complaisance or compromise would only involve both parties in difficulties.

The construction of this railway was proposed with a view

Confirmed by Mr. R.T.Tebbitt as per his letter 23.12.05.

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