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Colonial Secretary's Office,
Hongkong, 21st. March, 1911.
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I am directed to acknowledge the receipt of your letter of 22nd. ultimo in which you communicated to me the reply of your Directors to Sir Henry May's letter of 29th .
November, 1910.
2.
I have laid your letter before His Excellency the Governor who has instructed me to enquire what the British and Chinese Corporation precisely intended to convey by the words "subsequent joint working of the two sections" in clause 18 of
the Kowloon-Canton Railway Loan Agreement dated 7th. March, 1907.
3.
I may remind you that the Chairman of the
Corporation, Mr. H. Keswick, in a letter to the Colonial Office, dated 19th. June, 1905, forwarded a "Memorandum re proposed "agreement between the Government of Hongkong and the Chinese "Government for the working of the entire railway from Canton to "Kowloon". In this memorandum it was provided inter alia that, 'as soon as the railway approaches completion, a joint Board of
*Management should be formed which shall have the entire control
"of the railway for the proper working thereof. The said Board
"to be composed of six members namely:-
"Two representing the Chinese Government:
"One representing the British and Chinese Corporation:
"Two representing the Hongkong Government:
and the General Manager who shall be appointed by mutual agreement between the Hongkong Government and the British *and Chinese Corporation as representing the Chinese Govern- *-ment.
"Three members of the Board to form a quorum and the
"decisions of the majority to be final on all matters within
the competence of the Board and not in contravention of "this Agreement".
S. F. Hayers, Esq.,
Agent,
The British and Chinese Corporation,Ltd.
4.