625
6.
I do not anticipate that it will eventually prove possible to obtain from the Chinese Authorities a Joint Working Agreement which will provide for a division of profits on a scale more liberal to the Colony than the mileage basis.
In the negotiations we shall have nothing to offer in return for better terms on this or any other point, and this Government must be prepared to find that the Chinese Authorities will take the fullest advantage of the weakness of the Colony's position in that respect.
In spite of the above considerations, I am in favour of the proposals for the resumption of Blackhead's Lot etc., contained in Sir Matthew Nathan's Confidential Despatch of the 21st of March, 1907.
These works must eventually become necessary. It will be cheaper to carry the scheme through now, and the adoption of the scheme will probably result in setting free some portions of the reclaimed area for sale, which will largely, if not entirely, recoup the Government for the additional expenditure involved.
I have the honour to be, My Lord,
Your Lordship's most obedient,
humble servant,
[Name not clear: possibly "Amaz"] Officer Administering the Government.