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PUBLIC RECORD OFFICE

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in about a week or two, but it continues very uncertain with whom will negotiate."

We are greatly disappointed that so much delay is taking place at Peking and that we are still in a condition of uncertainty as to the negotiations although our past experience, and especially our knowledge of Sheng Kung Pao, should have prepared us for infinite procrastination.

Rumoured movements in the direction of railway construction to unite Canton and Whampoa point to the urgency of pressing to the utmost the negotiations we are engaged upon to a conclusion and we hope His Majesty's Minister at Peking will be good enough to continue to give the Corporation's representative at Peking the benefit of his valuable support and assistance in overcoming difficulties and concluding the final Agreement.

Sir Eldon Gorst, K.C.B.,

Foreign Office, SW.

We are, &c., The British and Chinese Corporation, Limited,

Per W. KESWICK,

Chairman.

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We have forwarded to Shanghai a copy of the draft Loan Agreement so that there may be no delay in obtaining the required translation.

The Board of Directors,

We are, &c.,

JARDINE, MATHESON and Co.,

Agents.

The British and Chinese Corporation, Limited,

London.

P.S.-The following copies of correspondence just received from Mr. Ross are sent to you herewith for your files:-

Copy of Mr. Ross's letter of April 17, 1905, to Sir Ernest Satow. Copy of Sir Ernest Satow's letter of April 17, 1905, to Mr. Ross. Copy of Mr. Ross's letter of April 17, 1905, to Sir Matthew Nathan.

J. M. and Co.

Reference :-

C.O. 882

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PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

Enclosure 4 in No. 91.

FOREIGN OFFICE to THE BRITISH and Chinese CORPORATION, LIMITED, May 27, 1905.

[See Enclosure 1 in No. 90.]

Enclosure 5 in No. 91.

(No. 4. Per French Mail.)

The British and Chinese Corporation, Limited,

Hong Kong, May 2, 1905. Canton-Kowloon Railway.

GENTLEMEN,

WE beg to advise having exchanged the following telegrams with Mr. C. H. Ross:-

Mr. Ross's telegram, dated Peking, April 27, 1905. "Hong Kong-Canton Railway. Chinese translation of the English Loan Contract required as soon as possible using as much as possible Chinese characters the same as Shanghai-Nankin Railway; the British Minister is telegraphing to the Governor of Hong Kong with regard to schedule."

Our telegram to Mr. Ross of April 28, 1905.

"Referring to your telegram of 27th we presume that you are taking steps translation to be made in Shanghai.”

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Mr. Ross's telegram, dated Tientsin, April 28, 1905. \ "Referring to your telegram of 28th, Pekin, in reply to your enquiry, no; by whom is the Hong Kong Government Agreement (is) being translated! It would be preferable Loan Contract was translated by same translator; if it cannot be so arranged, we leave it to you to arrange in Shanghai."

On receipt of Mr. Ross's message of 27th ultimo we communicated its contents to His Excellency the Governor, who informed us that, in accordance with a tele- graphic request from His Majesty's Minister in Peking, a copy of the schedule referred to was being forwarded by the Hong Kong Government to His Majesty's Consul- General at Shanghai in order that a translation might be made, and of this we have advised our Shanghai friends and at the same time have suggested that it will be preferable to have the translation of the Loan Contract made by the same translator, which can doubtless be arranged.

Enclosure 6 in No. 91.

Hong Kong-Canton Railway.

DEAR SIR MATthew Nathan,

Peking April 19, 1905.

I ARRIVED here on the 14th instant and have now fully discussed with Sir Ernest Satow the proposed Loan and Working Agreements.

From the enclosed copies of correspondence with Sir Ernest, you will observe that he anticipates opposition from the Chinese on two important points, and I under- stand he has written to the Foreign Office and also to you, giving his views thereon. Both of these "probable objections" have already been fully discussed in London, - and I also referred to them when I saw you in Hong Kong.

I am now employed in drafting brief summaries of the two Agreements, and these, when translated into Chinese, Sir Ernest proposes to lay before the Wai-Wu-Pu. It is not an easy matter to epitomise documents of the nature of these two Agree- ments, and, as I have pointed out to Sir Ernest, there is a danger of unfavourable comparison being made hereafter by the Chinese when the complete Agreements come before them, but he proposes to guard against this by making it clear to the Wai- Wu-Pu that the drafts now being presented are only bare outlines of the proposed Agreements.

Sir Ernest considers that Canton is the proper place in which to carry on the active negotiations, and he will endeavour to arrange this if it can be managed without serious opposition from the official who negotiated the Preliminary Agreement for the railway.

Sir Ernest strongly recommends that the preamble of the Schedule or Working Agreement be revised, as he thinks it would be a mistake to make reference therein to the Convention of 9th June, 1898. If necessary this Convention can be verbally referred to when interviewing the Wai-Wu-Pu.

down to

If you concur, the first paragraph "Whereas by the Convention

shall be discussed," had better be struck out and the present second paragraph, with the omission of the first word “ And” would then form the com- mencement of the preamble.

His Excellenoy

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

DEAR MR. Ross,

Enclosure 7 in No. 91.

Yours, &c.,

C. H. Ross.

I PROPOSE to put before His Majesty's Government, as soon as possible, the

Peking, April 17, 1905. information you gave me on the 15th relative to the difference in time which the two