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(c). To run each separately with a Joint Station as terminal for both.
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(d). For the Chinese Section to claim running powers over ours.
Of these (b) would for the reasons given be acceptable to us, which was neither Government were placed under the other, and (d) would not be acceptable to Hongkong.
The scheme most desirable if it can be achieved is (a). The scheme (c) would be so expensive to the British Section that if possible we would desire to avoid it. Failing (a) or a compromise between the two (c) appears inevitable, and probably it is the one for which China will be most anxious.
7.
My own proposal would be as follows:-
(1). Adopt a Joint Board, but limit its powers to very minor questions (settlement of time-table and local details) in the first instance, with the hope that (as has occurred, I believe, in the Shanghai Railway) it would gradually grow into an effective board of control, and emancipate itself from Peking control.
Constitution:-
Chairman a Chinese appointed subject to approval of Governor of Hongkong, Chinese to appoint 2 members one of whom must be the Engineer-in-charge and British. British to appoint 2 members. Decisions of the Board on matters of importance (to be carefully defined) to be subject to final...