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hold on the British and Chinese Corporation whose interests
are centred solely in the Chinese Section.
(b).
The cost of the British Section
has roughly doubled, and it will probably not be completed
under £1,000,000. The interest and sinking fund on this summ
with running expenses and maintenance will form a very
heavy annual charge.
(c)..
Chinese policy and aspirations
have developed in the last few years in a direction un-
-favourable to joint co-operation. It is now their great
desire to manage their concerns wholly without foreign
interference and to nationalise their Railways.
8.
In these circumstances it appears
to me that their is nothing to be gained by postponing the
settlement of the general principles upon which the Joint
Working Agreement is to be framed. The present time
presents some favourable conditions which may not obtain
in the future. British relations with China are at the
moment exceptionally cordial, and our Minister exercises, I
believe, an exceptional influence at Peking. Locally the
relations between this Government and that of the neighbour
-ing Provinces are also cordial. The policy of exclusive-
-ness, and of unwillingness to admit of foreign co-opera-
-tion