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the Canton-Kowloon and the Canton-Hankow Railways in the interest of their own lines. He had made the necessary arrango-
-ments for the construction of the junction line during his visit to Canton in the spring, and negotiations were already proceeding for the purchase of the necessary land, but as they involved the removal of thousands of graves in the suburbs of the city, they required delicate handling and might take some time, but I might rest assured that the connection would be built. In view of this assurance, it appears to me unnecessary
at all exents for the present, to raise the question of the
obligation of the Chinese Government to link up the two railways
which was referred to in your despatch No. 199 of June 7 (19244/10).
In regard to the question of joint manage-
-ment Mr. Liang's replies were not so satisfactory. In fact he
gave me to understand that the objections of the Chinese
Government to the adoption of such a system were insurmountable.
He did not appear to attach any importance to the financial
advantages likely to accrue tothe Chinese section from it, but
expressed four as to the complications that might ensue from an
al internation-Board and the constant references to the two
Governments of any points on which the votes of the Board were
Chinese equally divided. He made it quite clear that the Government
have no intention of unnecessarily tying their hands in regard
to the administration of their section of the Canton-Kowloon
railway. I pointed out the immense advantages that would accrue
to the future trunk line from Hankow in having access to such a
port as Hongkong. His Excellency admitted the force of my
argument, but replied that it cut both ways, adding that he
would instruct his representative in Hongkong to negotiate in a
most conciliatory spirit, but only on the basis of through
running powers.
I must confess that neither the wording of
the Loan Agreement nor the minutes of the discussions between Tong Shao-yi, the nowly appointed President of the Board of
Communications,