matter had not received the Emperor's sanction.

465

(Mr Tebbitt here stated that the date of the Imperial Edict in question was about October 1898).

The Deputies professed surprise to learn of the existence of this correspondence, and said they would examine the Viceroy's records about the date mentioned.

Mr Ross said, with reference to Clause 5 of the Preliminary Agreement, he had personally drafted this clause in 1899 at Shanghai; the local difficulties then apprehended were interference with survey parties, fengshui prejudices and trouble over the removal of graves etc, for all of which Sheng said the Viceroy of Canton would if necessary make arrangements. His Excellency however was apparently disinclined to make arrangements to meet local difficulties, and in whatever sense this clause might be read, such an attitude could neither be regarded as the spirit nor the letter of the clause in question.

Mr Wen continuing his remarks, said that while they did not intend that the cancellation of the Agreement should entail any monetary compensation as was exacted by the American Company over the Yüan Han Line the Viceroy understood that the Corporation had been put to some expense over a survey of the proposed route of the line, and His Excellency was willing to refund such outlay, but as the Engineer employed by the Corporation had been used for other work besides the Canton-Kowloon survey, only the actual proportion of his expenses chargeable to this railway would be paid.

Mr Ross said, any proposals of this nature which the Viceroy wished to make should be made in writing to the Consul-General, as he was not authorised to discuss such suggestions. He was present to discuss the terms of a Loan Agreement and wished to be informed if the Viceroy's Deputies were or were not prepared to proceed with such discussion.

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