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again consulted.

As I had the honour to report in my telegram No. 116 of May 30 His Highness's view was that the Soochow-Hangchow and Canton-Kowloon lines could not be negotiated together and that the former should be taken first as it offered less local difficulty. On June 13 Mr. T'ong Shou-Yi stated that if the question of the former line might stand over a negotiator would be appointed for the other. In view of the opinion contained in your telegram No. 112 of June 8th, I expressed my acquiescence in this arrangement, and my hopes for an early settlement of the matter. As I was still without a reply when I received your telegram No. 120 of July 3rd I again went to the Wai Wu Pu and urged them to give me one without any further delay.

Mr. T'ong was requested by the Grand Secretary Ma to speak in the name of the Board. His Excellency then said that he had been told by Prince Ch'ing to inform me that the Canton-Kowloon Railway being a local matter of which the conditions were best known to the people of Canton, the negotiations would be referred

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