4

as before, protection might be afforded, The Governor-General, reflecting that this reconnaissance was being gradually extended into the interior, finally handed the notes to the Company to consider and report. The Company reported that one-half of ✈ the hold on the profits for Yunnan Province has already fallen into the bands of the French; if the Tengyueh Railway is now conceded to the British, the hold on the profits for all Yünnan will be lost, and the Yunnanese can only await extinction.

Hence replies were sent strenuously opposing until a rupture nearly ensued, and, as there was nothing else for it, at last we said that a telegram has been sent asking your Board to consult with his Minister. This was to gain time, for Tengyueh is the back door of all Yunnan, and you must not lightly think of allowing the French Yunnan-- Tongking Railway to be adduced and permitting the British to build. If you once permit them, then Yüunan will be open, back and frout, to her enemies, and in the end will cease to belong to our Empire.

The present secret telegram is expressly sent with the fervent hope that you will endeavour to put off (the Minister) with fair words.

It is prayed that this telegram may on no account be allowed to leak out.

(Translation.) (Telegraphic.)

Inclosure 3 in No. 1.

Government of Yunnan to the Wai-wu Pu.

November 2, 1906. SEVERAL telegrams have been sent to your Excellencies regarding the survey of the Tengyueh--Tali Railway. After repeated discussions with Consul Wilkinson, the latter has agreed to telegraph the fact that Yunnan has memorialized for the establish- ment of a Company to build ourselves the Tongyuch line to the Government of India, to instruct the engineers that it is inexpedient to cross the border for the reconnaissance,

As regards this matter, your Board, being in relations with the British Envoy, should take into your careful consideration our earlier telegram, and politely but firmly refuse.

We pray that you will keep us informed from time to time.

ffice or Individual.

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