Mr. Hall

This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Office if not required for official use.

1/1

From CHINA.

Decode.

Sir A. Cadogan (Peking),

25rd July, 1934.

D.

By wireless

24th July, 1934.

R.

9.30 a.m.

24th July, 1934.

To. 499 (R).

Revision of Canton Kowloon railway working agreement.

Following received from Hongkong telegram No. 13 of July 19th,

begins:

Negotiations progressing favourably. Division of through

traffic receipts 28 per cent to British section and 72 per cent to

Chinese section agreed to between delegates subject to Nanking

approval which is hoped for. Technical clauses and details now

being threshed out by traffic managers. Every reason to believe

that final draft will be completed shortly. Have you any views on

method of signature. Chinese delegates at this stage anticipate

signature by Minister of Railways and myself and suggest that

English and Chinese texts be considered equal for the purposes of interpretation. New agreement expected to come into force October

1st and operate for five years. Chinese delegates voluntarily

stated that increase of revenue under the new agreement would be

earmarked for service of loan. A note to this effect from the

Chinese Government was suggested and Chinese delegates appeared to

acquiesce. Ends.

Provided Chinese Representatives are so authorised it would seem desirable that agrecment should be signed by all negotiators

at Hongkong thus bringing in Cantonese delegates.

If this is

approved I will approach Waichaiopu accordingly. Alternatively agreement could be initialled by Hongkong negotiators or signed by them subject to confirmation by Minister for Foreign Affairs

and

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