ONFIDENTIAL.

Hongkong.

24543

C.O

38063

421

19 OC: 08

Government House,

Hongkong, 14th.September, 1908.

My Lord,

In your despatch of the 3rd. ultino,

Your Lordship asked to be kept informed of progress on the

Chinese section of the Kowloon-Canton Railway. I alluded

to this matter in my despatch of the 6th. ultimo on the

subject of the Joint Working Agreement and I have now the

honour to enclose a copy of minute by Mr. G.V.Eves dated

the 11th. instant giving lator information.

2.

In this connection I may refer Your

Lordship to remarks made by Mr. P. H. King, Commissioner of

Customs at Canton, on this subject in his annual Trade

Report for 1907, to the effect that whether or not the line

gets through to the Kowloon shore, China is safeguarded

against loss in the fact that the Fast River traffic alone

will be quite sufficient to secure commercial success,

besides the possibility, by a branch extension from Wei-

chow, of bringing Canton into direct communication with

Swatow

RIGHT HONOURABLE

THE EARL OF CRETE,

&c.

&C.

&C * *

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