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and that the current expenses of safely running the trains will be paid for by the new Government and not out of x railway receipts in accordance with the working agreement until such time as a reserve sufficient to meet the obligations of the Government for the suspension of traffic has been accumulated
in the Bank.
No. 3. To this you will I hope be able to add that the Hongkong Government will be indemnified not only for the loss sustained by the recent stoppage of trains, but also for the loss incurred up to the time at which the Chinese Govern- -ment through the Chief Resident Engineer or Managing Director of the Chinese Section is able to notify this Government that it is prepared to re-open traffic under reasonable safeguards to life and property, (2.)
No. 4.
I note this proposal with much satisfaction. No. 5. I shall be glad to learn whether Mr. Chao holde appointment as Managing Director & from the Peking Govern- -ment as well as from the new provisional Government.
I have to thank you for the satisfactory
assurances of the new Government which I nave no doubt are due
to your initiative. I have not received any other telegram dated on this date and in especial I have not received any telegram from you stating that your intercourse with the new Government would be limited to their providing for the security
of life and property of Foreigners.
I send this by the hand of Mr. Moore.
I have etc., (Sd.) F. D. Lugard,
Governor,&c..
(2) They will also of course be responsible for any loss or
damage to British rolling stock, and life and property of passengers and officials when through run ing is resumed.
(4)Disposal of profits on through working is dependent on the terms of the working agreement, and not on the Loan Agree- -ment for construction of Chinese Section.
His majesty's Consul;General,
Canton.