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regulations accordingly".
5.
At the conclusion of a later meeting held at
the Waiwupu on 31st. October, 1906, it appears from the minutes
that Mr. Bland suggested that the wording of article 18 was vague
"and likely to lead to complications hereafter owing to the dif-
*-ficulty of defining the actual inter-state regulations. He
*suggested an amendment to the text, which was agreed to, omitting
*all reference to this condition".
6.
From this record of the proceedings prior to
the execution of the Loan Agreement, it seems clear that the
intention of the Corporation was that the British and Chinese
Sections of the Railway should be worked as one undertaking under
a Jojnt Management with an equitable method of sharing working expenses and profits. The Chinese Government however contends that
the intention was to provide arrangements for through traffic
under separate administrations. His Excellency the Governor will,
therefore, be glad if your Directors will be good enough to state
definitely which view correctly interprets the meaning of the words
*joint working", as such a pronouncement will materially assist in
the negotiation of the Working Agreement.
7.
I am to add that His Excellency notes that you
state in your letter of the 22nd. ultimo that your directors "consider it very doubtful whether any actual modification of the "terms of the Loan Agreement would be sanctioned by the British *Courts and they are therefore of opinion that the first essential
"is to formulate a scheme which would not conflict with the terms
"of that contract". I am, therefore, to enquire whether in your opinion the Working Agreement as drafted by this Government does conflict with the terms of the Loan Agreement, and if so in what particulars, and what are the main principles of such a scheme as
your Directors would advocate.
I am etc., (Sd.) C. Clementi,
Colonial Secretary.