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evidently be accepted by the latter.
The Governor of Hongkong replied by telegraph
on the lat, of July offering as a compromise a division in the
proportion of 35% British to 65% Chinese for all through traffic.
On my seeking to arrange a further interview with Lord Li for the purpose of communicating this offer, the latter intimated that he understood that a further meeting was to be held in Hongkong on the 4th. of July and that he would prefer to await the receipt of a full report from the managing Director of the Chinese Section before discussing the matter further in Peking.
In the meantime I took the opportunity to
enquire of the Governor by telegraph whether he had made this
offer at the meeting in Hongkong and with what result.
In his reply dated the 5th. of July Sir Freder-
ick Lugard informed me that the offer had been made to the
Chinese representative who had replied that he would telegraph
it to the Ministry: the Governor added that an alternative
Chinese offer had been made which the British representative
had