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Mr Wen replied that the Viceroy would not discuss any terms at all, the Preliminary Agreement must be cancelled, and the line would be built by the Chinese themselves.

Mr Ross asked if he was to understand that the Viceroy absolutely declined to entertain or discuss the Corporation's proposals, and all three Deputies assenting, they were requested and agreed to officially write to the Consul-General to this effect.

Mr Wei (who as a Metropolitan Official was the senior of the Deputies) then remarked, that in his opinion it was quite impossible for foreigners to exercise control over Chinese railways; foreign engineers would of course have to be employed but they must be servants of China, not of foreign Corporations.

He himself entertained grave fears about the Shanghai-Nanking Railway, which he did not think could be completed under the present arrangements; indeed he expected inside 18 months that the present regime of that railway would be entirely changed.

Mr Ross said he regretted to hear that Mr Wei entertained such views, which he would certainly report to his principals.

In the desultory conversation which followed, Mr Ross asked Mr Wen how it was proposed to raise money with which to build the Canton-Kowloon Railway. Mr Wen replied, that it would be done by means of shares, and when reminded that such shares were not very popular with his countrymen, and that a very recent attempt to raise money in this way had proved a fiasco, remarked "perhaps we can borrow from the Hongkong Government".

The subject of the Shanghai riots was also touched upon, Mr Wen saying that as Head of the Telegraph Department in Canton, he read all telegrams addressed to foreigners, from which source he was able to inform the meeting that everything was now quiet in Shanghai.

Questioned by Mr Ross as to the progress being made on the Canton-Sanshui line, Mr Wen, who is Superintendent of this line, said

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