4%

** IL #

have boon unable to discover any serious abused in the

administration of the Company's funds, but the Engineer-

in-Chief is charged with receiving cormánsions on railway

materials supplied. This cargo r. Kwong has been unable

altogether to deny, but he stoutly maintains that the

commissions he has received ure trivial in amount and

customry, and that the agitation against him, led by one

of the Directore, Luu Hok Kam, is due to the fact that he

has refused to allow that gentleman to force him to accept

unsuitable contracts tondered on behalf of his fritams.

Dr. Kwong appears to have the sympathy of the

foreign engineering stuff and the foreign firms dealing

in railway matorial in Canton. They consider the agitation

against him iɛ artificial and the charges of corruption

grosely exaggerated, being prompted by the ormity of

certain Directors, who have been foiled in their attempta

to fatton on the railway funds.

The following brief notes on the progress boing

made on the sections under construction, kindly placed at

my disposal by ltr. Hill of Messrs Howarth Erskine and

Company

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