CHINA.

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FILES

Paraphrase Sir J. Jordan (Peking) May 20th, 1916.

D.10-45 p.m. May 20th, 1916.

R.11-20 a.m. May 21st, 1916.

No.155.

My telegram No.143.

Have telegraphed to Hong Kong as follows:-

Canton-Kowloon Railway.

Minister of Communications informed Mr Mayers

this morning that though every effort was being made to pay £37,000 in respect of loan coupon due June 1st, effort might fail. The Minister wished to know whether Hong Kong Government would consider making an advance of the funds on terms advantageous to Hong Kong. Beyond a promise to communicate message to me for transmission to you he was given no encouragement.

Should you be prepared to entertain suggestion, there is an opportunity of securing definite construction of loop line by Chinese section of Canton Kowloon Railway, and improvement of Railway administration by demanding that engineer in chief be made General Manager with control of traffic and other departments of Chinese section loop line

included.

I consider transaction should not be made by your

Government but by British and Chinese Corporation, as great caution must be exercised in giving no grunnd to others for quoting British Government's action as precedent for demands at this juncture on Chinese

Government.

Necessity

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