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PUBLIC RECORD OFFICE

Reference :-

TTC.O. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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best designed to help our objects. In any event it would be my duty in the nego- tiations here to specially attend to the interests of the Hong Kong Government and to take any step which in my judgment would further Your Excellency's desires.

I have, &c.,

His Excellency

Sir Matthew Nathan, K.C.M.G.,

&c.,

&c.,

&c.

Enclosure 2 in No. 293.

MY DEAR SIR MATTHEW,

LANCELOT D. CARNEGIE.

Peking, August 10, 1906. THE Canton Viceroy's delegate arrived here on the 6th instant, and I am informed by Tang Shao-yi that the negotiations will probably begin next week. If the Chinese are reasonable and if they really desire to conclude the final contract, I see no reason to anticipate any serious difficulty in arriving at a settlement of the matter on lines something like those proposed by the Viceroy. In any case I need hardly assure you that every effort will be made to secure a speedy and satisfactory conclusion of the matter.

In regard to the working agreement, would it be possible for you to begin negotiations with the Viceroy? Assuming that we make a contract on the lines proposed, and those are, broadly speaking, those of the Northern Railway, we should require control only during construction, a fact that will affect the working agree- ment. It seems to me that it would be well, if possible, that the latter should be prearranged, as far as can be done, between the Hong Kong Government and the Viceroy.

I sincerely hope that no fresh difficulties or new conditions will now be raised by the Chinese, but I cannot but feel that in agreeing to postpone the Hangchow concession until the Canton-Kowloon business is settled, we have accepted a position which is calculated to accentuate the tendency of the Chinese to obstruct and pro- crastinate. I may be wrong, but this is the opinion which I have expressed to my Board, but which the Foreign Office does not share.

Enclosure 3 in No. 293.

Believe me, &c.,

PARAPHRASE of Telegraphic Correspondence.

XLIV.

H. P. BLAND.

HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Canton, to VICEROY, Canton. (August 23, 1906.)

The Governor has recommended that the Canton-Kowloon Loan Agreement should be negotiated at Peking on the basis of Your Excellency's proposals to Mr. Bland. The Governor, however, desires that the joint working agreement should be discussed in Hong Kong with your representatives during my visit here. I trust that Your Excellency will see fit to accede to this and send your representa- tives either to-morrow or Saturday.-MANSFIELD.

XLV.

VICEROY, Canton, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Canton. (August 23, 1906.)

Your telegram of 23rd with reference to Canton-Kowloon Railway received. I had previously received a telegram from the Board of Foreign Affairs informing me that negotiations would be carried on at Peking and directing me to send officers. from Canton, which I have accordingly done. It is not now convenient to discuss. the matter in Hong Kong. I hope you will kindly ask the Governor of Hong Kong: to excuse me.--(Seal of Viceroy.)

449

XLVI.

HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Canton, to VICEROY, Canton. (August 24, 1906.)

In reply to your telegram of yesterday's date, I do not think Your Excellency has understood that it is the working agreement between Your Excellency and the Government of Hong Kong that the Governor is anxious to negotiate here with your representatives in accordance with the suggestion made to the Governor per- sonally by Mr. Wen on the 23rd of April last. I hope Your Excellency will see fit to comply with this request as the Governor will be much disappointed if you do not do so. CONSUL-GENERAL.

36733

SIR,

No. 294.

CROWN AGENTS to COLONIAL OFFICE.

(Received October 6, 1906.)

[Copy to Governor, October 11, 1906. Confidential. L.F.]

[Answered by L.F. transmitting copy of No. 296.]

Whitehall Gardens, London, S.W., October 5, 1906. Kowloon-Canton Railway--Construction.

I HAVE the honour to acknowledge the receipt of your letter of the 13th of September, No. 33613/06,* enclosing a copy of a telegram from the Governor of Hong Kong expressing dissatisfaction with the progress of the construction of the Kowloon-Canton Railway.

2. We have communicated with the Consulting Engineers, and I enclose a copy of their reply.

3. We think that the views expressed by the Consulting Engineers are reason- able, and we would suggest that until further information has been received no further action should be taken in the matter.

GENTLEMEN,

the

Enclosure in No. 294.

I have, &c.,

E. E. BLAKE.

Sir J. WOLFE BARRY AND PARTNERS to CROWN Agents.

21, Delahay Street, S.W., September 28, 1906. Kowloon-Canton Railway-British Section.

WITH further reference to your letter, E/261/2, dated 17th September, enclosing copy of cable from His Excellency the Governor of Hong Kong as to progress and inspection of the above railway, we beg to inform you that we have cabled to Mr. Eves and requested him to send us a full report on the progress. It should be borne in mind that in starting the construction of the railway, there is a large amount of preliminary work and organisation to be done before much progress can be seen. The work being of an exceptionally heavy nature, it requires a large equipment of construction plant, and as the greater part has to be obtained from this country, it must be some time before the work is in full swing. It appears from Mr. Eves's general letter, No. 10, which we have just received, that he is having considerable difficulty in procuring efficient native labour and that he is desirous of importing suitable labour, as to which there appear to be some objections of a local nature. In paragraph 37 of that letter he states that most of the good coolies have left the works for the purpose of rice planting, and that his progress has been thereby very much handicapped.

• No. 285.

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