CONFIDENTIAL.

Hongkong.

My Lord,

670

41952

RECT

Government House, Hongkong, 30th October, 1907.

I have the honour to inform Your Lordship that I have taken occasion to inspect the Railway under construction from its terminus at Kowloon to the Chinese Frontier. I have also made careful enquiry into one or two special subjects connected with the work, and I have now the honour to submit to Your Lordship the impressions which I have formed.

2. I had understood in England that some friction existed between the Director of the Public Works Department and the Chief Resident Engineer, and that the latter complained of interference with the work for which he was solely responsible. I have not found any indications of this friction or any disposition on the part of Mr. Chatham (who has more than enough of his own work to occupy him) to volunteer any criticism on Railway matters. On the contrary, it has seemed to me that the

THE RIGHT HONOURABLE

THE EARL OF ELGIN,

K.G.

&C.

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