[This Document is the Property of His Britannic Majesty's Government.]

CHINA RAILWAYS.

CONFIDENTIAL.

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33063

[October 3.]

SECTION 1.

REC

REG 28 OCT 0 No. 1.

(No. 316.) Sir.

Mr. Max Müller to Sir Edward Grey.-(Received October 3.)

Peking, September 11, 1910. WITH reference to my despatch No. 315 of to-day on the subject of the negotiations for a working agreement between the two sections of the Canton- Kowloon Railway, I have the honour to draw your attention to the fact that these negotiations have been taking place without the presence of His Majesty's consul- general at Canton, as was clearly contemplated at the time that Sir John Jordau addressed to the Governor of Hong Kong the despatch of which he forwarded a copy to you in his despatch No. 359 of the 2nd September, 1908. In this despatch Sir John wrote, "Mr. Wei Han will discuss at Canton with your Excellency's delegate and His Majesty's consul-general all questions relating to the joint working agree- ment," and I bave found a minute of his to the effect that the consul-general should be associated with the negotiations. That this was also my idea can be seen from the enclosed correspondence with the Wai-wu Pu and Sir F. Lugard, though, judging from the second paragraph of the latter's despatch to the Secretary of State for the Colonies, dated the 9th April, he does not appear to have so understood my despatch to him.

It is probably now too late to disturb the existing arrangement, even if it were thought advisable to do so, and I only desire to call your attention to the opinion clearly expressed by Sir John Jordan on the subject.

I have, &c.

W. G. MAX MÜLLER,

Inclosure 1 in No. 1.

S&

Sir,

Mr. Max Müller to Governor Sir F. Luyard.

Peking, March 23, 1910. ON receipt of your Excellency's despatch of the 24th January last I addressed a note to Prince Ch'ing, copy of which is enclosed berewith, enquiring whether Mr. Wei Han could now be empowered to conclude a joint working agreement for the British and Chinese sections of the Canton-Kowloon Railway, and at what date be would be authorised to commence the negotiations with the Hong Kong delegate and His Majesty's consul-general at Canton.

From Prince Ching's reply, copy of which is also enclosed, your Excellency will perceive that Mr. Wei Han has been instructed by telegraph to take the matter up at once, and that he will in due course appoint a date for the commencement of negotiations.

Your Highness,

I have, &c.

Enclosure 2 in No. 1.

Mr. Max Müller to Prince Ch'ing.

W. G. MAX MÜLLER.

Peking, February 14, 1910. AS your Highness is aware, it is stipulated in article 18 of the Canton-Kowloon Railway Agreement of the 7th March, 1907, that the joint working of the British and Chinese sections of the railway shall be arranged by agreement between the Governor of Hong Kong and the Viceroy of Canton.

At an interview on the 24th August, 1908, I was informed by the Board of Communications that when the time came for the negotiation of a joint working

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