445

7

to be expected that the Chinese will raise objections and

will not be able to divest themselves of their chronic

suspicion. In such circumstances the Colony will of course

look to His Majesty's Minister at Peking for diplomatic

assistance, the more so that both the Wuchang and the

Kowloon-Canton Railway Loan Agreements were negotiated

with the assistance of His Majesty's Minister, and thus

carry a more or less international sanction.

The time has not yet arrived to

anticipate the nature of the assistance required, but I

have thought it opportune to recall to Your Lordship's

memory before the final conclusion of the Canton-Hankow

Loan negotiations, and when submitting this draft Working

Agreement, the claims which this Colony as distinct from

the Financiers interested in that Loan has on the

Chinese Governmert in connection with the original

37732

"Wuchang Loan"

3.

The preference to be granted to

a British Loan for construction and to British Engineers

and material is, as Your Lordship will recollect, based

upon a letter written to Mr. Consul-General Fraser by His

Excellency Chang Chi-tung on the 9th. September, 1905, as

a return for the action of this Colony in advancing a sum

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