No. 25711.

The Under-Secretary of State,

Foreign Office,

London.

Confidential.

C 28590

1. 6 AUG 08

FOREIGN OFFICE

239

August 1908.

for 23542

21528

Sir:-

I am directed by Secretary Sir Edward Grey to acknowledge the receipt of your letter 23542/1908 Confidential of the 23rd ultimo, enclosing a copy of a despatch from the Governor of Hongkong with regard to the Canton-Hankow Railway.

Commenting on the subject of the inclusion of the French Group in the negotiations for this concession, Sir F. Lugard alludes, in paragraph 5 of his despatch, particularly to four points under the headings of (a) (b) (c) and (d). With respect to these points, I am to offer the following observations:-

(a) As regards the deadlock which His Excellency complains has been produced, it is barely possible, according to all previous experience, to avoid so-called "deadlocks" from time to time in all Chinese railway negotiations, but in this case the

The Under Secretary of State,

Colonial Office.

fault...

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