(a) the extension of the Yunnan railway as far as the Szechuen;
(b) another line to join Canton to the Indo-Chinese frontiers.
Moreover, it would be understood that these two concerns would be eventually transferred to a Franco-British Company formed under the French law, the British Group subscribing one half of the capital, as in the Chinese Central Railways, but with the only difference that the British Group should have in this new Company the situation now occupied in the Chinese Central Railways by the French Group.
If special arrangement should exist for the Hankow-Pekin line between the British and Chinese Corporation and the Pekin Syndicate or any other British Group, by virtue of which the Hankow-Pekin line being situated north of the Yangtse, must be controlled by the Chinese Central Railways, the above proposal could still be realised, but, in that case, the Paris Office of the Chinese Central Railways would manage the Hankow-Pekin concern, the London Office of the new Company to be formed having the management of the Hankow-Canton line. All profits accruing from the Hankow-Pekin line would, in that case, belong to the Chinese Central Railways whereas the profits of the Hankow-Canton line would go to the new Company to be formed.
In any case, a French Company would be formed which would take up amongst other aims in China, the rights granted to the French Group by the Hankow-Canton agreement.
The said French Company would, at the proper time, discuss with the British and Chinese Corporation the allotment, either re the Hankow-Canton railway or re the whole of the Pekin-Hankow-Canton line, of the rights to be respectively exercised by the English Group and by the French Group according to the abovementioned basis.
If Mr. Addis' group agrees to these proposals, it would be useful that he should let it be known to Mr. Simon without delay, in order that the latter may settle...
Office