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TAJOSTALO

Railway Agreement, which secures to the four Groups a

preference for an extension of the Canton-Hankow line from

the southern border of Hunan to Canton, I do not think the

claim to comfine the extension exclusively to a British

concern would be tenable. The disadvantage, from a purely

political point of view, of the line not being exclusively

British is, it seems to me, largely neutralised by the

appointment of a British Engineer for the whole line from

Hankow to Canton which, as I have already said, is secured

by the Berlin Agree...ent of 14th May, 1909.

If this view is accepted, if it is admisted that as

parties to the Hukuang Agreement the French, German and

American Groups are entitled by Article 19 to participate

in any extension of the Hukuang Railway from the borders of

Hunan south to Canton, then I think we ought to state

frankly to the Groups that, although we were unable, owing

to the action of the Chinese, to offer them participation

in the Yuet -Han Loan, they will certainly be invited to

share in any loan which may result from it for an extension

of the Hukuang Railway between Hankow and Canton.

(Signed)

I have, &c.,

C. S. Addis.

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