RECEIVED

E 27 JUL 1934

Telegram from the v, REGY

of State for the Colonies.

TRATION

12

or Hong Kong to the Secretary

117

Dated 26th July. Received 2.23 p.m. 26th July, 1934.

[8]

to 7.0.

・(13).]

воро

A

No.109.

Repeated to British Legation Peking No.14. Diplomatic

Mission Nanking No.10 Consul General Canton No.9.

Your despatch No.156 Railway Working Agreement.

Delegations have met and agreed unanimously on draft of new

agreement main changes being adopted division of through traffic

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

Chinese section which is considered equitable having reard

to all the facts relating to cost of construction and lengthe

of the line in the respective sections. Among minor provisions

chief are rolling stock for through passenger

trains to be

provided 18 coaches by Chinese section to 7 by British

arrangements for settlement of exchange rate between liong Kong

and Canton currency.

I have asked His Majesty's Minister for his viewa

regarding signature, see his telegram No.499 to the Foreign

Office. Delegations have prepared draft agreement in a form

calling for approval and signature by the Chinese Ministry

of Railways and the Governor which I suggest is the correct

course in all the circumstances. I approve uraft and the

Chinese delegates are anxious to leave at once and submit the

draft to the Ministry of Railways at Wanking. Unless Ministry

of Railways requires amendments final prints would be signed #imultaneously by Ministry and myself, exchanged and relsesad for publication.

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