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fault was in no way due to the French Group. In this connection I am to refer you to the letter from this Department of the 29th June.
Moreover Sir M. Nathan's expectation that the Canton-Hankow line would be completed simultaneously with the Canton-Kowloon line (one-sixth the length) would appear to have been an unduly hopeful estimate.
(b) As regards the claims for French control in the line, the French Group are willing, as is shown in the Agreement with the British Group, that the Canton-Hankow line should be controlled by the British Group, if the Peking-Hankow line is left to them (see confidential print, China Railways, 6670, February 25th, Section 2, enclosure (7), first paragraph).
At the present moment, however, the Chinese Government appear more inclined to raise a general loan than a loan for the purpose of any railway specifically.
(c) As regards French demands for British support for a line from Canton to Indo-China, and for the extension of the Yunnan line to Szechuan, these proposals