"Referring to your telegram of the 21st, after consulting the Foreign Office, Board of Directors are of opinion it is inadvisable to contest the appointment of Jeme Tien Yow, but it should be clearly understood that the powers and responsibility of the Engineer-in-Chief as defined in Article 6 of the Loan Agreement are not to be affected thereby. It is to be remembered that it has been agreed between the Board of Communications and the British Minister, that Sir J. Wolfe Barry and A. J. Barry are also appointed Consulting Engineers, under conditions similar to those of the Consulting Engineers for the Northern Railways. With regard to the procedure for reference to the Corporation's representative and Director General, Peking, this is required by Article 6, where the Engineer-in-Chief and Managing Director cannot agree."
"Bound leaving Moscow October 21st."
We beg leave to express the hope that Sir E. Grey may be pleased to inform His Majesty's Minister at Peking that he approves of the views expressed in the telegram and to request His Majesty's Minister to support the independence of the Engineer-in-Chief within the terms of the Loan Agreement.
We are, &c.,
The British and Chinese Corporation, Limited.
(Signed) W. Keswick.
Chairman.
Telegram from Messrs. Jardine, Matheson and Company, Limited, dated Hongkong, September 21st, 1908.
Referring to our telegram of the 25th, and to your telegram of the 26th August, we learned to-day from G.A. Robertson that the appointment of Jeme Tien Yow as Consulting Engineer was officially notified to J.O.P. Bland on July 10th, who acquiesced in, but apparently omitted to advise us.
Liang Shih Yi expresses indignation that we refuse to recognise the appointment and has instructed that the Managing Director and Engineer-in-Chief in the future must only deal with your Peking representative, not with us.
The evident object of this is the transfer of control from the Managing Director and Engineer-in-Chief to the Board of Communications, which we regard as fatal to the interests of the Canton Kowloon Railway. We suggest that you notify Liang Shih Yi through the British Minister without delay that all matters concerning the Canton Kowloon Railway must be dealt with through us, the Peking representative merely acting occasionally as a convenient medium. We consider this to be of the utmost importance.
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