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railway cannot be held by British subjects, I will
forward to you a copy of the Governor General's com-
munication. I took the opportunity to repeat that,
even as regards railways altogether in the interior,
such as the projected Yunnan-Ssuch'uan line (from Yun-
nanfu to Sulfu), I considered that the policy of ex-
cluding foreign capital is suicidal. The sum named
in the prospectus of the Company now under discus-
sion, twenty million taels (or, say, three millions
sterling) would not be sufficient for a line of 400
"
miles through difficult country, while the Chinese
have not yet acquired the necessary experience to en-
able them to undertake so large a work unaided.
I may add that the Governor General's delegates
told me that His Excellency recognizes that Great Eri-
tain is entitled to equal treatment in Yunnan with
France, and that, as far as this rests with him, he
would most willingly accord it. But they appeared
to think that a light railway from the Burma frontier
to T'engyueh was not altogether in the same category
as the French metre-gauge line from Tongking to Yun-
nanfu