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resigned his office as Governor-General of the Liang Kuang Provinces and fled to Hongkong where he arrived the same day and remained until the 17th. instant. I, therefore, telegraph- -ed on the 9th. to Mr. Jamieson enquiring whether the new Provincial Authorities desired to continue the stoppage of trains and guaranteed the indemnity. On the 12th. instant I received the following reply from Mr. Jamieson:- "With sealed "authority from the Military Governor-General, two representa- "tives of the new Government have signified their willingness "to entertain following proposals:-
*(1) All receipts from railway to be handed over to
His Majesty's Consul-General or deposited in the bank named by him.
*(2) That guards for the Chinese Section sufficient
to provide safe running of trains be paid for by
the new Government.
*(3) That Hongkong Goverment will be indemnified by
new Government for loss sustained by the recent stoppage of trains,
(4) That likin stations will not be allowed by the new
Government.
*(5) That Chao be continued as Managing Director in-
stead of Captain Wu, who brought these proposals. "They will advise Hu (i.e. Hu Han-min the head of the new Govern- "-ment in Canton) to accept in order that the railway service be
"re-started as soon as possible.
"In view of my telegram of today stating
* I would not have any other intercourse with the new Government "apart from their providing for security of life and property of "foreigners, are you prepared to enter into negotiations on the
"above lines subject to consent of His Majesty's Minister ?" On
the same date I telegraphed to Sir John Jordan as follows:-
"Period for which Board of Communications asked suspension of
"through railway service empired at 1 p.m. today. Consul-General "informs me new Government desires to resume service at once,
and