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custom-house at Kuangchou Wan, after the recent precedent of Kiaochow, and I was given to understand that Mr. Scott's information was inaccurate. No application was being pressed for a railway from Samshui to Wuchow. He could not believe that M. Kahn had interfered in the manner reported, but he would write to him and warn him of what was evidently a mischievous statement à la Chinoise.

On the 31st December, during a private call at Tang Shao-Yi's house, Mr. C. W. Campbell learnt that no action had up to then been taken on my letter of the 27th December to the Wai-wu Pu. He urged that a telegram should be sent to the Viceroy in the desired sense, and Tang promised to see to this. Two days later he told Mr. Campbell, during his New Year's call at this Legation, that a telegrain had been sent, but did not mention its purport. To-day he called to see me on varjous matters, and I asked him the nature of the instructions sent to Canton, and was told that they urged the Viceroy to conduct the negotiations "satisfactorily" and in accordance with China's interests. Not being satisfied with these instruc- tions, I suggested something more definite, and after a discussion in which Tang fully recognized the necessity of carrying out the terms of the Preliminary Agree- ment, I arranged to provide him with copies in Chinese and English of the proposed Agreements with the Hong Kong Government and the British and Chinese Corpora- tion, in order that he might discuss their contents with his colleagues of the Wai-wu Pu.

SIR,

(Translation.)

WAI-WA PU to Sir E. SATOW.

I have, &c.,

ERNEST SATOW.

Peking, 31st year, 11th month, 16th day (December 12, 1905). WITH reference to Your Excellency's recent conversation respecting the Canton-Kowloon Railway, in the course of which you said that, after having requested us to notify the Viceroy at Canton that he should start negotiations with the Corporation, the latter appointed a representative to discuss this question with the Viceroy, but that His Excellency had both excused himself on account of illness and had appointed no one to discuss the matter on his behalf, and that there-

you fore requested us to insist upon an explanation, we now have the honour to inform Your Excellency that we at once telegraphed to the Viceroy urging him to appoint a representative to discuss the matter satisfactorily with the Corporation,

We have now received a telegram in reply from His Excellency stating that he had instructed an officer of his Foreign Bureau to make inquiries of His Britannic Majesty's Consul-General, and that the latter had informed him that the British and Chinese Corporation had appointed Mr. Ross to proceed to Hong Kong. This gentleman would be coming to Canton in a few days, and on his arrival His Excellency would appoint a representative to negotiate with him.

We accordingly have the honour to inform Your Excellency in this sense.

We avail, &c. (Cards of Prince Ch'ing, &c.)

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If, however, the Corporation will send their agent to Canton, I will depute Mr. Wei, the Foreign Secretary, and Mr. Kung to meet him and discuss matters. I shall be obliged if you will communicate to this effect with the Corporation.

I have, &c.,

Sir E. SATow to PRINCE CH'ING.

(Viceroy's seal.)

YOUR HIGHNESS,

Peking, December 27, 1905. On the 12th December I had the honour to receive a letter from Your Highness stating that you had telegraphed to the Viceroy of Canton urging him to delegate an official to discuss the question of the Canton-Kowloon Railway with a representative of the British and Chinese Corporation, and that you had received a telegram in reply to the effect that as soon as the Corporation's representative arrived in Canton His Excellency would appoint a deputy to negotiate with him.

From telegrams received lately from Canton and Hong Kong, I learn that the Viceroy of Canton did appoint two officials to meet Mr. Ross, the Corporation's representative; but that in the two interviews which had taken place they merely said that the Viceroy wished to cancel the Preliminary Agreement of the 28th March,

1899.

Your Highness will recognize that this is not a proper mode of dealing with solemn contracts to which the Chinese Government is a party. I have the honour to request that the Viceroy be moved to issue such instructions at once to his dele- gates as will insure that the negotiations are conducted in accordance with the ordinary rules of international business.

The favour of an early reply is requested.

I avail, &c.,

ERNEST SATOW.

Consul-General Scort to Sir E. SATOW.

(No. 66.)

Canton, December 22, 1905.

[Enclosure 3 in No. 202.]

(Translation.)

VICEROY OF CANTON to Consul-General SCOTT.

[Undated.]

[Sub-enclosure to Enclosure 3 in No. 202.]

PUBLIC RECORD OFFICE

Reference:

C.O. 882

6PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO |

Consul-General Scort to Sir E. SATOW.

12360

(No. 63. Confidential.)

1

Canton, December 12, 1905.

[Enclosure 2 in No. 195.]

(Translation.)

SIR,

VICEROY OF CANTON to Consul-General SCOTT.

Canton, December 11, 1905.

I HAVE the honour to acknowledge receipt of your letter with reference to the Canton-Kowloon Railway, requesting me to enter into negotiations personally with the British and Chinese Corporation, or else send a deputy to discuss matters.

I regret that I am far from recovered from my recent illness, and am unable to enter into personal negotiations.

No. 238.

GOVERNOR SIR M. NATHAN to THE EARL OF ELGIN.

(Received April 7, 1906.)

(Secret.)

MY LORD,

Government House, March 9, 1906.

IN continuation of my secret despatch of the 27th January on the subject of negotiations for the completion of a loan agreement and of a joint working agree. ment in connection with the proposed Canton-Kowloon Railway, I have the honour to enclose, for your Lordship's information and record, further telegraphic com- munications with His Majesty's Minister at Peking and His Majesty's Consul-General at Canton.

• No. 224.

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