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instant in the following terms:-

"I have informed Tang Shao Yi, the British Legation unless the Chinese Government formally will recognize Soochow Ningpo Railway Agreement binding upon, we must insist upon keep strictly to Shanghai Hanking Railway terms for Canton Kowloon Railway. Do you approve?"

You were so good as to permit our Director, Mr. Addis, to submit to you yesterday the draft of the reply the Board proposed should be made to Mr. Bland and this reply, with the modification suggested by you, was then despatched in the following terms:-

"Referring to your telegram of the 12th, you, on the spot in a better position judge but our opinion is it would be better not press your ultimatum for the present but keep separate Canton Kowloon Railway, Soochow Ningpo Railway, negotiations, this course according to views of Foreign Office who consider delay will not prejudice our position Soochow Ningpo Railway. Protest against Edict has already been recorded by British Legation".

We are, &c.

*, &c.,

THE BRITISH AND CHINESE CORPORATION, LIMITED.

(Signed)

W. Keswick,

Chairman.

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