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was unwilling to construct the junction line, he would authorise its construction by the Canton-Kowloon Railway with funds provided through the British and Chinese Corporation

7. Two alternate positions for the loop line have been surveyed, (a) north and clear of Canton City, and (b) partially along the site of the demolisheci wall. The Corporation remains willing to undertake the work but the Provincial Goverment has up to now refused its consent.

8. There is no doubt that the Hongkong Government requires direct railway transport facilities with Central and North China by these lines, but it is net apparent that there is any restriction whatever on the development of Canton as a port by means of railway tracks, or otherwise. Before replying to Mr Lagont's note I should be glad of any observations you may be willing to make on the point he raises.

Yours sincerely,

C.S.ADDIS.

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