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LXI.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR.

(Despatched 8 p.m., received 10.40 p.m., October 26, 1906.)

(No. 26.)

Your telègram 25. Referring to your telegram, August 28th, sentences 1 and 3; paragraph 2. Following is the text of Article 18 in the draft final loan agreement:-

"The junction of sections of the railway from Canton to the boundary at Kowloon leased territory under British control, and from the said boundary to the port Kowloon respectively shall be arranged, and the railway worked under uniform conditions based on agreements usual in regard to junction and working of inter-State railways in other countries. It is understood that the Viceroy and the Governor of Hong Kong will, in due time, appoint officials to consider subject, and arrange regulations accordingly."

Under present circumstances it was found impossible to bring any provisions for connecting Canton-Hankow Railway into the loan agreement.

Provision referred to in second sentence of above-mentioned paragraph is as follows:-

"It is further understood that the Chinese Government will not permit the construction of any line parallel to railway to the injury of the latter's interest."

I am strongly of opinion that we have obtained the best terms we can in the loan agreement, and if any improvement on those terms is desired, it must stand over till the negotiations beween Your Excellency and the Viceroy-referred to Article 18.

Agreement is practically settled, and only awaits your concurrence, which I hope you will give. JORDAN.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR.

(Despatched 3.55 p.m., received 5.15 p.m., October 29, 1906.)

(No. 27.)

Your telegram 27th October. The final meeting, at which the draft agreement should be signed, is fixed for October 31st, and any postponement on our side might wreck the negotiations, and must, if possible, be avoided. Every effort will be made to secure the alteration you desire, but I should be in a position to allow Mr. Bland to sign in case the Chinese insist on keeping the wording given in my telegram of 26th October.-JORDAN.

(40067.)

LXII.

GOVERNOR to SECRETARY OF STATE.

(Sent 4.20 p.m., October 30, 1906.)

My telegram, 27th October. Canton-Kowloon Railway. Sir John Jordan presses me to concur in draft so that the agreement can be signed at the meeting fixed for to-morrow. If you do not telegraph your dissent at once, I shall concur.-NATHAN.

LXIII.

GOVERNOR to HIS BRITANNIC MAJESTY'S MINISTER, Peking.

(Sent 9.15 a.m., October 31, 1906.)

I concur in the signature of the loan agreement as drafted, but if you are not.

able to get Article 18 modified as requested in my telegram of 27th October, I shall be disappointed.-NATHAN.

(39719.)

LIX.

GOVERNOR to SECRETARY OF STATE.

(Sent 11.50 a.m., October 27, 1906.)

Canton-Kowloon Railway. My telegram of August 28th. The draft of the final loan agreement is now awaiting my concurrence. It embodies Article 17 of the printed draft agreement, which is important. It provides for the junction and the subsequent joint working of the two sections being negotiated between the Viceroy of Canton and myself, but it does not stipulate for these negotiations being started within a specified time, and it makes no reference to connection with the Canton- Hankow Railway. I am not satisfied with these conditions, but Sir John Jordan assures me that they are the best he can get, and in the circumstances I propose to

Please telegraph approval.-NATHAN.

concur.

LXIV.

SECRETARY OF STATE to GOVERNOR.

(Sent 6 p.m., October 31, 1906, received 5.11 a.m., November 1, 1906.) (40067.)

Your telegrams of October 27th and 30th, decision left to you.-ELGIN.

།།། :「།

LXV.

GOVERNOR to HIS BRITANNIC MAJESTY'S MINISTER, Peking.

(Sent 11.20 a.m., November 1, 1906.)

Has the Canton-Kowloon Railway Loan Agreement been signed?-NATHAN.

PUBLIC RECORD OFFICE

Reference :-

C.O. 882

6 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO|

LX.

GOVERNOR TO HIS BRITANNIC MAJESTY'S MINISTER, Peking. •

(Sent 11.55 p.m., October 27, 1906.)

Your despatch of 13th, and telegram of 26th, October. Article 18 should be modified by the substitution of the following for all words after "respectively" in line four: and the subsequent joint working of the two sections shall be arranged by agreement between the Viceroy of Canton and the Governor of Hong Kong." The present wording is likely to lead to delay and long discussions. Subject to the above alteration, and to the approval of the Secretary of State for the Colonies, for which I have telegraphed, I will concur.-NATHAN.

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(No. 28.)

LXVI.

HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR. (Sent November 2, 1906.)

It has not been signed. Some point in connection with the wording has arisen which requires further consideration, and the matter has been postponed till Novem- ber 7th. The alteration suggested in your telegram of October 27th has, however, been accepted. Jordan.

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