123

with my delegate and His Majesty's Consul-General all

questions relating to the Joint Working Agreement. He is

disposed to concur in the view that an immediate discussion

of this matter might not advance matters, and to favour

the suggestion that the Chief Resident Engineers of the

two Sections should in the first place endeavour to reach

an agreement on the questions involved.

3.

Mr. Grove meantime has completed

his estimates, a copy of which has been sent to me con-

-fidentially by the British and Chinese Corporation, and I

gather that the general position is that a more or less

satisfactory solution has been found of the two chief

M

difficulties the appointment of Consulting Engineers

and the land purchase and that he now hopes to open the

Section between Ganton and Sheklung by January, 1910, and

the Southern Section which unites with ours by July, 1911.

He has to some extent had to curtail expenditure in order

to keep within the available funds, and I think it not in-

-probable that the estimates may consequently be exceeded

in some items. He informed me a week or two ago that he

thought the discussion of the Joint Agreement might be

advantageously begun in a month or two.

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