Loan Agreement however they are precluded by Article 15 from building any line which would compete with this to its detriment. The Loan may be paid off in May, 1919,
The Chinese Section traverses a thickly populated and productive country passing through a town of considerable importance (Sheklung) shown on map attached. They anticipate therefore a large local traffic, and branch lines may be made in various directions with every prospect of remunerative results.
The Engineer-in-charge (Mr. Grove) hopes to open the Section between Canton and Sheklung in December, 1909. Both Sections hope to be able to open for traffic in July, 1911. The local traffic on the British Section will be negligible.
These are the general conditions under which an arrangement for Joint Working has to be negotiated. The Chinese on their side are jealous not only of Foreign interference in any way but even of Provincial control. Their policy is to nationalise all railways and control them by a Board at Peking. This Board has already taken all control out of the hands of the local Viceroy. The Managing Director (Mr. Wei Hai...) has to refer all questions to Peking. He is a man of broad views and works well with the Engineer-in-charge of construction. My own views as to the interests of the British Section may be briefly stated as follows:-
No