CONFIDENTIAL.

2852/1907.

Colonial Secretary's Office,

HONG KONG, 15th April, 1909.

Sir,

In reply to your letter No.611 R.E. of the 18th of February, addressed to the Private Secretary to the Governor, I am directed to transmit the enclosed Memorandum by His Excellency in which the nature of the advice which this Government requires in connection with its projected Working Agreement for the Kowloon-Canton Railway and the qualifications of the Officer it desires to engage from India to assist it, are fully set forth.

2. I am to state that this Government will be grateful for the advice and assistance of the Railway Board in the matter.

3. It is anticipated that the British Section of the line will be open to traffic in about 12 months' time, and that through traffic to Canton will be established in 1911.

4. It is desired, however, to commence negotiations for a Working Agreement at an early date owing to the protracted nature of such negotiations where Chinese are concerned.

I am, Sir,

Your obedient servant,

(sd) F. H. May,

Colonial Secretary.

The Secretary,

Railway Board,

Railway Department,

CALCUTTA.

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