233

30.

I have indicated in the 2nd. parag aph of

of

$

^

this Despatch th ́ staps which at present appear to nie to be

A advisable to take, and I would venture in this connection to

remind Your Excellency that the interests of the Hongkong

dovernment and those of the British and Chinese Corporation are

not identical in this matter. When the Railway is completed the

interests of the Corporation are limited to obtxining propt

payment of the interest on the Bonds, and to this end (and in

order to establish their reputation with a view to further

railway business) they are concerned in obtaining for the

Chinese Section the maximum profits vis a vis the "ongkong

Section.

I have the honour to be,

sir,

Your Excellency's St

obedient servant,

Mugars

Governor, &0..

meet a al

P.S.

Since drafting the foregoing Despatch, I

have rec.ived from the Consul-General at camion a copy of his

letter to Your Excellancy, No. 31 Confidential of July 25th.

This Despatch confirms what I sugrested in my paragraph 8 and

adds point to the views expressed in paragraph 2 since it shows

that the disastrous and unnecessary charges for land (as woll

as the delays caused by placing futile orders with Chinese Firms) are consequential upon the action of the Central Authori- -ty in depriving the Provincial Government of the control which was contemplated by the Loan Agreement. The views of Mr. Fox,

and of Mr. Grove appear to coincide with my own, that it is

essential for the interests of this Railway that the control

should bo vested in the Viceroy. They refer chiefly to the

financial aspect

while I have referred in this Despatch

1

chiefly to the political

(the negotiation of the Joint Work -

J

-ing

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