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British and Chinese Corporation entered into an agreement

with the French group to share the concession, and it was

on this question of foreign participation in a railway which

closely affected the interests of Hongkong that the corres-

pondence with the Colonial Office arose. Once that point

was settled it was not found necessary during the negotia-

tions which passed in 1909 -10-11 between the British,

French, German and United States Governments to refer to

the Colonial Office and your Department was merely informed

!

of the conclusion of the Hukuang Loan Agreement, in the

Foreign Office letter of May 18th, 1911.

It was on account of the interest which the Government

of Hongkong took in the question of foreign participation

in the Hukuang Railways that Sir E. Grey deemed it

desirable to inform your Department of the present corres-

pondence with the Hongkong and Shanghai Bank seeing that

it concerns the section of the Canton Hankow line which

will connect with the Canton-Kowloon Railway and Hongkong.

Sir E. Grey has informed the Manager of the bank after

careful consideration of the matter and communication with

His

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