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made it quite clear that the Chinese 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 ac-
cees 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
the
only on (basis of through running powere.
I must confeas that neither the wording of the Loan
Agreement nor the minutes of the discussions between Tong-
Shao-yi, the newly appointed President of the Foard of
Communications, and Mr. Bland, the representative of the
British and Chinese Corporation, that preceded the final
adoption of article 18 of the Loan Agreement, appear to
me to justify our demand for joint management. "Joint
working of the two Sections" is the expression used in
Article 18 of the Loan Agreement, and it is difficult to
maintain that these words necessarily imply joint manage-
ment, while the minutes of the discussions point rather
to