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Chinese Corporation, is convinced that the Chinese will connect

the two lines, in fact that they may begin the work at any

moment, but it certainly would not help matters forward if I brought official profsure to bear, still less so if I suggested

recourse to Hongkong for a loan, which would be most likely to

arouse the suspicion of the Chinese.

Joint Management.

2.

I am addressing the Wai Wa Pu on the ad-

-vantages of this system, but I am pretty sure, from conversa-

-tions which I have had with a member of the Railway Board here,

that we shall never get this and that you will have to be

content with some sort of joint working without joint manage-

-ment. Joint working is the expression used in the Loan Agree-

-ment and this does not of itself imply the necessity of one

management, but rather uniformity of arrangements on either

side, and certainly the discussions between Tong Shao-yi and Mr.

Bland that preceded the final adoption of Article 18 of the Loan

Agreement show that at that time there was no specific conten-

-plation of joint Management, rather the contrary. Mr. Yun, of

the Railway Board, asked me if it was usual that a railway pass- -ing from the territory of one country to that of another should be under one management and I could not say that it was.

One can hardly expect them to forget the difference in length of the Chinese and British Sections, but we may, I hope, look

forward to a not too far distant date when hundreds of miles

of trunk line through China will be pouring goods into the harbour of Hongkong, over a little British line twenty miles in length. I fancy that in time there will be one administration for the railways of Kuangtung and the Chinese are not therefore likely to hand over their section of the Canton-Kowloon Railway to a separate half-foreign management. The Manager of their section will be an Englishman, but one can hardly expect them to accept that that Englishman is to be appointed under agree-

-ment

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