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distinctions did not exist under the Manchu
Government but the new regime had altered all that.
He was anxious to reduce the Agreement to a business
basis. He agreed that the lack of efficiency of the
Chinese section was a result of internal troubles, but
pointed out that the Ministry of Railways had now
drawn up a big railway scheme covering China. The Hong Kong - Canton Railway had its share, but it was only
a small part of the scheme. After the revision of
the Working Agreement China would improve the line and
carry out its contract.
5.
His excellency replied that he was ready to
discuss revision when the Chinese section was in a
proper state to carry the traffic that was obtainable.
Until that was done we were losing because of China's
default. The Railway as a whole had no proper chance
while sleepers and other important matters continue in
the present condition .. It was not equitable to ask us
to increase our losses by giving China a bigger share of
the fares when the losses might not exist at all if
China did her part. If the Chinese section was put
into proper order he would be prepared to discuss the
Agreement. It might even be that he would agree to
adopt the mileage basis for division but it would have
to be under reservations; for instance special works
such as the tunnel would require consideration for
such works meant large additions to expenditure which
might have been avoided by a longer mileage but an
easier route.
6.
Mr. Hsieh professed to be optimistic about the possibilities of peace and made several attempts to pin
His Excellency to dates in connection with what had been
said