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Mr. Chao proposed and we agreed that at the

start 2 up and 2 down expresses should be run between Kowloon

and Canton, the number to be increased if the traffic warranted

it.

It was agreed that sufficient stock must be provided to

run these through trains from the start: and we proposed that

one-fifth of the necessary stock should be provided by the

British and four-fifths by the Chinese Section.

Mr. Chao said that he would consider our

proposels, telegraph them to Mr. Liang Shih-yi, and communicate

further with us on the receipt of a reply. We undertook to care-

-fully consider the draft of the Joint Working Agreement which k

he had handed to 128.

29th. November, 1910.

(sd.) C. Clementi.

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