36191

COPY.

C O

53 OCT

1908)

38657

PEKING.

23 OCT 08

25 August 1908.

No.300 Confidential.

Copy to Hongkong.

Sir,

Jardine, Matheson & Co. to Mr. Bland.

April 30th.

(Canton 31st.)

July 25th.

Referring to my despatch No.292 of June 25th, I have the honour to enclose copies of correspondence on the subject of difficulties which are being experienced in the construction of the Chinese section of the Canton-Kowloon railway.

The two chief complaints alleged are the excessive cost of the land purchased under Article 7 of the loan agreement, and the delay caused in some cases by an undue insistence on the condition in Article 9, which provides that Chinese materials are to be preferred when price and quality are suitable.

At an interview yesterday with His Excellency Liang Shih-yi of the Board of Communications, I made a full statement of these complaints, and pointed out that

The Right Honourable

Sir Edward Grey, Bart.,

K.C.B.,

&c., &c., &c.

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