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Working Expenses, while placing itsalt in a botter position for

getting its goods to thoir destination. Moreover, it is

evident that the uniformity of procedure secured by joint manage

-ment must lead to gonoral officiency, and that the oqualising

of profit on the various clauses of goods and passonger traffic

will enable traffic so be dealt with, which divided interonta

would destroy. On the other hand, separate management may he

expected to arrest the expansion of trade to the detriment of

the general prosperity, of the ecuntry through which the line

runs.

་ ༢་

I would also invite Your Recallancy'a

attention to the "Memorandum re Proposed Agreement between the

Government of Hongkong and the Chinese Gotermment for the

working of the entire Railway from Cunton to Port Kowloon" a

copy of which was handed to the Chinage Government on the 18th.

Decomber, 1905. This Memorandam clearly indiauton that a "joint

Board of Management shall be formed which shall have the

antire control of the Railway for the purpose of the working

tho thereof"; and, when she Loan Agromont was nogotiatod,

intention of the British and Chinese Corporation in using the

worda "joint-working of the two Sections" in Article 18 was

clearly that the joint line should be worked on the principles

embodied in that memorandum and it was upon this understanding

that the loan to the Chinese Government was made.

In conclusion, I nood hardly say that, in

addrossing the Board of Communications on this subject nothing

should be said which might lead the Board to lose Confidence

in Mr. Wei Han, who appears to take a very reasonable view of

the matter. I have to add that should Your Excellency be unable

to move the Board with the argirienta now furnished you and

should you desire the assistance of Mr. Lindnog on the spot I

an oropared to send him to Poking to render you all the help

in

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