2.

х

103

X40 in our front of the diff (celto after 10)

paragraph of your despatch should be numbered 38 and

not 32. This article, which is entitled "Suspension

of Agreement," has in the past been interpreted as re-

ferring to a suspension of the Agreement itself, not

to the temporary suspension of through traffic, which

seems to be covered by article 7 (1).

4.

Although, as you point out in the seventh

paragraph of the despatch, the Agreement has not been

ratified, it has frequently been quoted by both the

Chinese and British sections of the Railway as being

in the nature of a binding obligation.

5.

I attach for your information a copy of the

claims still outstanding up to the end of January 1930.

I have the honour to be,

Sir,

Your most obedient servant,

(SIGNED)

W.T.SOUTHORN.

Officer Administering the Government.

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