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It appears to Lord Lansdowne to be out of the question to request the Corpora tion to surrender their concession for this line in the manner suggested by the Governor of Hong Kong. The adoption of such a course would produce a very bad effect on the Chinese Government, with whom His Majesty's Minister at Peking has experienced considerable difficulties with regard to British railway concessions in China. Moreover, His Lordship cannot believe that such a suggestion on the part of His Majesty's Government would be favourably received by the British and Chinese Corporation.

Lord Lansdowne concurs, therefore, in the proposal of the Secretary of State for the Colonies to take no action in the matter pending further information as to the results of Sir E. Satow's representations to the Chinese Government on the subject of the concession.

I am to inclose a copy of a telegram which has been addressed to Sir E. Satow on the subject.

The enclosures in your letter under reply will shortly be returned.

I am, &c.,

F. A. CAMPBELL.

Enclosure in No. 165.

239

I have communicated the details to the representatives of the Chinese Central Railways in Peking.

40905

SIR,

No. 167.

GOVERNOR SIR M. NATHAN to MR. LYTTELTON. (Received November 17, 1905.)

[Copy of Ordinance to Crown Agents, November 28, 1905. L.F.] [Ordinance sanctioned, November 28, 1905. No. 231. L.F.]

(No. 257.)

Government House, Hong Kong, October 16, 1905. I HAVE the honour to submit, for the signification of His Majesty's pleasure, Ordinance No. 11, of 1905, entitled "An Ordinance for raising the sum of two million pounds by loan for the purpose of defraying the cost of a railway from Kowloon and for other railway purposes," together with the customary report of the Attorney- General thereon.

2. I shall send you by next mail a full explanation of the reasons for passing this Ordinance, and for the amount that has been included in it for the loans it is intended to authorize.

PUBLIC RECORD OFFICE

Reference :-

TPELLI C.O. 882

6 PUBLIC RECORD OFFICE, LONDON

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

THE MARQUESS OF Lansdowne to Sir E. SATOW (Peking).

(No. 175.) (Telegraphic.)

Foreign Office, November 12, 1905, 9 p.m.

Your telegram, No. 193 [of 28th October: Canton-Kowloon Railway].

I have concurred in proposal of Secretary of State for the Colonies to take no action on Governor of Hong Kong's suggestion pending further information as to the results of your representations.

Even if Corporation would consent to surrender Concession, which I consider unlikely, the adoption of course suggested would encourage Chinese Government to repudiate other promises given to us, and would be inconsistent with language which you have held in this instance.

40850

(Confidential.)

No. 166.

FOREIGN OFFICE to COLONIAL OFFICE. (Received November 16, 1905.)

The Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State for the Colonies, and is directed by the Secretary of State to transmit herewith copies of paraphrase of telegram No. 169 from Sir E. Satow relative to the Hankow-Szechuan and the Hankow-Canton Railways. Foreign Office,

November 15, 1905.

Enclosure in No. 166.

Sir E. SATOW to the MARQUESS OF LANSDOWNE (Received, Foreign Office, September 15.)

(No. 169.) (Telegraphic.) P.

Peking, September 15, 1905.

Please refer to previous telegrams on the subject of the Szechuan-Hankow and Hankow-Canton Railways.

His Majesty's Consul-General at Hankow has learned from the Wuchang Viceroy the terms on which he is willing to receive a tender from British capitalists to the amount of £2,000,000 or £2,500,000 for the construction of the Hupei sections

of the above lines.

Enclosure 1 in No. 167. No. 11 of 1905.

I have, &c.,

M. NATHAN,

Governor, &c.

AN ORDINANCE for raising the sum of Two Million Pounds by Loan for the purpose

of defraying the cost of a Railway from Kowloon and for other Railway purposes.

(L.8.) M. NATHAN,

Governor.

[16th October, 1905.]

Whereas it is expedient to give authority to the Governor to raise as occasion requires loans not exceeding two million pounds in all for the purpose of defraying the cost of a railway from Kowloon and for other railway purposes:

Be it therefore enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:-

1. This Ordinance may be cited as the Railways Loan Ordinance, 1905. Short title. 2. The Governor may as occasion requires borrow sums not exceeding two Power to million pounds in all by the sale of inscribed stock under the provisions of the borrow General Loan and Inscribed Stock Ordinance, 1893.

Governor to

£2,000,000.

No. 1 of 1898. Contribu-

3. The contribution to the sinking fund as contemplated in Sections 7 and 8 of the said Ordinance shall commence at the expiration of five years from the date tion to on which the interest on the inscribed stock to be issued under this Ordinance shall Sinking begin to accrue.

Passed the Legislative Council of Hong Kong, this 13th day of October, 1905.

A. G. M. FLETCHER,

Clerk of Councils, Assented to by His Excellency the Governor, the 18th day of October, 1905.

T. SERCOMBE SMITH,

Colonial Secretary

Enclosure 2 in No. 167.

Attorney-General's Office, Hong Kong, October 18, 1905.

Report on Ordinance No. 11 of 1905.

I have examined the accompanying Ordinance, entitled an Ordinance for rais-

ing the sum of two million pounds by loan for the purpose of defraying the cost

Fund.