):
1.
193
wero therefore the more entitled to some return at the hands of the latter in connection with this Agreement.
Lord Li admitted the last contention but urged that
4
the line would never pay and therefore every cent conceded meant an increase in the loss the Chinese Governaant would
incur.
Mr. Yuan added that he thought there muet ba a mis- understanding as to Liang Shik-yi's admissions in the interview with Bir Proderick Lugard. Llang's idea was that the division of profits might be based on the annual working expenses of each section - not on the capital outlay which in the case of the Chinese section was not yet finally ascertained. Me com-
mented on the extraordinary difference in cost between the two sections as a reason against the adoption of capital outlay as a basis and referred to the fact that the provision of rol- ling stock being based on mileage would entail correspondingly increased expense on the Chinese section and if the latter
were to have their share of the profite decreased they would
stand to lose in both directions.
Lord Li having urged that the Governor of Hongkong should be asked by telegram to concede more than 60/100 the
of the profits to the Chinese section in order to facilitate
a settlement, Sir John Jordan replied that he was not author-
iged to agree to anything of this nature, though he would be
prepared to telegraph any definite offer on the part of the
Ministry. He urged that the offer of 60/100 the war entirely
fair and reasonable and that Hongkong was unlikely to agree to
any increase. In any case he must know what change there was
of agreement on the other outstanding points mentioned in the Hongkong; Memorandum, of which geopy
opy and Chinese translation
were handed in.
Lord I thought that the remaining points would not
be difficult of solution once the question of division of pro-
fits were settled - but he must await the report from Canton which was daily expected and for which he would telegraph.
On