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the agreement regarding the acquisition of the Company's Saction
must be kept private, and, indeed, unless tais be strictly done
the Military Government would never be able to buy up the shares
of the Company at the large discount upon which it is presently
figuring.
from Shiuchow to the Hunan border, where the line would
ultimately connect with the Hunan Section at present constructed
as far as Chuchow, the distance is approximately 70 miles; but
the route lies through the main range of the mountains dividing
Ku ngtung from Hunan and is by far the most difficult and exper sive Section in the whole of this line of railway from Hongkong
to Paking. But for the barrier interposed by this range the Company would have already carried its line to the Hunan border.
It is estimated that by the most favourable route there are over 60 separate tunnels of impert: nes in the 70 miles, This 70 miles of country is at present poorly productive, but parts
From the Hunan border onwards the of it probably contain coal. country is comparatively easy for constructional purposes.
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Owing to the existence of the Huku ng Loan Agreement, Mr. Taen says he is unable to ive us any rights in Hunan, but
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he would actively support ny scheme having as its object the linking up of the line, and he trusts that we will be able to come to an arrangement in this matter with the British China Cor- poration, Ltd. From our point of view it would be premature yet for us to approach the British China Corporation, Lti., and, in any case, this section of the line being already in British
We would hope later on, bands Hongkong's interests ar« secure, however, to be able to come to an arrangment with the British Chin: Corporation, Etd, for building it.
In beginning our negotiations we stipulated for the building of a loop line between the Canton-Hankow and the Canton Kowloon R ilways, but later we abandoned (his demand. afraid that the oppositions of the citizens of Canton,
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