P Y.

Enclosure 1.

30%

C O

20972

British Legation,

BEGI SEP 10

Peking, July 31, 1910-

:

{

Dear Sir Francis May,

I am trying to find out indirectly whether

Weihan is going to resign his post on the Canton-Kowloon Rail-

-way. There has been talk of his getting a better appointment

for months past, but I dont like to enquire too openly now,

especially if there is any truth in your report that he is

considered here as favouring too much the claims of the British

Seation. If he is going I may have some difficulty in ascertain-

-ing the name of his successor before he is officially appointed

but whoever he is I presume he must be authorised to continue

negotiations for the Working Agreement, though I very much

doubt if it will be on the basis of joint management. Unfortuna-

-tely Liang Shih-yi is quite unwell and not able to see anyone,

otherwise he was to have come and seen me this week and as I an

off tomorrow for a much needed three weeks at the sea side, I am

not likely to see him before the end of August, and who can tell

if he will still be Director General of Railways then ↑

To judge from the correspondence forwarded

to me by the Foreign Office there appear to be two points in

connection with the Working Agreement to which the Colonial

Government attach special importance.

1.

The connection between the Canton-Kowloon

and Canton-Hankow Railways.

I see that Sir Frederick Lugard was under

the impression that the Chinese Government were opposed to this scheme which is of such vital importance to the prosperity

of Hongkong. My information is all to the contrary. My impres... -sion is that the Board of Communications are alive to the necessity of making this junction in the interests of their own Canton-Kowloon Railway, Mr. Mayers, the Agent of the British and

Chinese

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