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and a remedy for the conditions therefore should be found as they arise in each place. Further to endure the prosperity of the district it is not an essential that a change should be made to joint management.

"Government managed railways in China, each have their own separate general management, yet the arrangements between them for through running powers have been attanded with exceptionally smooth working. The agreements therefore concluded

between them in regard to joint working have been satisfactory in every way. Thore is no reason why a similar procedure should not be adopted in regard to the Canton-Kowloon Railway. Mr. Wei Han has been instructed to consider in conjunction with the delegates of the Hongkong Government an agreement which has been drawn up embodying arrangements as to passenger and traffic

receipts received on one section on account of the other etc.,

etc., on through traffic between the sections. The draft of thi

agreement is based on the procedure adopted for mutual co-

-operation between the various Government lines in China, and

no difference, it will be noted, is made in the treatment accord-

-ed the soction constructed by the Hongkong Government and that

constructed by China. This type of agreement should clearly

meet with the fullest approval of the Goverment of Hongkong".

"Again, on October 5, 1908, the Colonial Secretary

x The

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*

of Hongkong in a letter to the Engineor-in-Chief of the

Canton-Kowloon "ailway wrote as follows:- 'Under instructions

from His Excellency the Governor I enclose for your information

copies of certain extracts from the procedure (contemplated)

in connection with the linking up of traffic between the two

sections'. The enclosure consisted of two articles from the

scheme in this connection, from which it is clear, beyond any

possible doubt, that it was contemplated that the arrangement in

regard to joint working should be based on through running

power's.

"The Board of Communications have the honour to

request that the delegates of the Hongkong Government should be

notified

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