"יד'
he also takes over the work of the present Chief Resident
143
Engineer but after the first 3 years he might be replaced by one
on a salary of £1,000 to 1,200. Free quarters or an allowance
in lieu, travelling expenses to cover actual outlay, and free
passages each way would be given.
10.
NB. Article 6 of the Loan Agreement should be noted.
The British and Chinese Corporation I understand intend to
insist on its fulfilment, but it must be remembered that the
negotiations of this Government with the Chinese Government are
outside the Loan Agreement; that the latter may be cancelled by
repayment of the loan in 10 years, and that there is no necessity
for both British Officials (e.g. the Chief Accountant) to be
included in the Board.
There are some further points for negotiation e.g.,
the question of Lekin (transit dues). The power to impose these
must be restricted or the Railway will carry no freights. It is
however the subject of negotiation in regard to the Shanghai
Railway and I do not anticipate much trouble. If imposed at all
it should be collected with Import and Export dues. (b). The
Possibility of China imposing dues on sea-borne Freight in
native boats between Hongkong and Canton to discourage the
Railway. (c). Management of Telegraphs. (d). Special Rates
and exemptions.
16th April, 09.
CJ Dugard.