This Document is the Property of His Britannic Majesty's Government. E. O.

AFFAIRS OF CHINA.

CONFIDENTIAL.

[16537].

Sir,

No. 1

23278

SECTION

REGE 27 JUN 06

455

Sir Edward Grey to Chinese Minister.

Foreign Office, May 25, 1906.

I HAVE the honour to acknowledge the receipt of your note of the 26th ultimo, inclosing translation of a telegram addressed to you by the Viceroy of Canton on the 23rd ultimo on the subject of the Canton-Kowloon Railway.

I have the honour to inform you that His Majesty's Government regret that they are unable to concur in the proposals of the Viceroy, as these proposals appear to them to be inconsistent with the Preliminary Agreement of the 28th March, 1899.

His Majesty's Government view with concern the attitude of the Viceroy with regard to the suggested arrangement for the joint working of the Chinese and Hong Kong sections of the line. They understand that the negotiations have already been transferred to Peking, where they trust that a satisfactory settlement may be arrived at.

You will no doubt concur with His Majesty's Government in thinking that while negotiations are proceeding at Peking discussion in this country in regard to the terms of the Agreement would be highly inconvenient, as such a course could only lead to confusion and further delay.

I have, &c.

(Signed)

EDWARD GREY.

[1988 66-1]

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