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For the reasons given in the third paragraph of my Despatch to the Secretary of State it would seem advisable to press rather for the General Control of the Line to be vested in the Viceroy than to allude specifically to the matter of negotiations regarding the Joint Working Agreement.

3. Lord Crewe in the Despatch enclosed considers that "the question has assumed a new aspect" owing to the fact that the Chinese Government has refused to appoint Sir John Wolfe Barry and Partners as Consulting Engineers to the Chinese Section of the line. From this remark I conclude that it has hitherto been the impression of the Colonial Office that Sir John Wolfe Barry and Partners as Consulting Engineers to both sections would have a preponderant voice in advising as to the terms of the Joint Working Agreement. I understand that though the Chinese Government is not unwilling to accept the services of that Firm in an informal way as regards preparation of designs of bridges and so on it has been finally decided that they shall occupy no formal position as Consulting Engineers, and that in such a matter as the negotiation of a Joint Working Agreement they would not be consulted.

It is obvious that the first step for this Government to take in this matter is to ascertain with whom negotiations are to be carried on. If the Central Government should entirely refuse to empower the Viceroy at Canton to act on their behalf it will become necessary for the Board of Communications (or whoever else may exercise the power of delegation) to name an official to conduct the negotiations with this Government. In that case I presume that the Chinese Government would recognise the desirability if not the absolute necessity of their delegate coming to Canton in order to judge on the spot of the local conditions, and negotiate with me (or the Officer deputed by me in that behalf) in person. It has, however, been pointed out to me that if the Central Government were urged to send a Peking Official to Canton for this purpose

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