C26
of which is enclosed, that he had informed his Japanese
colleague of the nature of our engagements with the
French.
10 with reference to the antepenultimate paragraph of
your letter I am to state that Sir E. Grey sees no rea-
son why French participation should make joint manage-
ment of the Hankow-Canton and Canton-Kowloon Railways
impossible, as the advantage which we possess in the
British Chairman having a casting vote would prevent
any adverse discrimination from being put into force
against us. In any arrangement moreover for joint
management of the two railways provision could doubt-
less be made for the due protection of the interests of.
Hongkong.
11
In these circumstances I am to express Sir E.
Grey's earnest hope that Lord Elgin will not maintain
his objections to the communication to the French Am-
bassador of the proposed Memorandum, the terms of which,
while in harmony with the engagement taken by His Majes-
ty's Government may possibly lead the French Government
to recede from their attitude rather than see the aban-
donment for the present of the scheme for the construc-
tion