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these points, and I have directed the Chief Surveying
Engineer to proceed at once with the marking out on the
ground of the selected route North of the Kowloon Hills.
The final location of the whole line will be completed by
the end of this year.
13.
I propose that the actual con-
-struction of the Railway from Kowloon to the frontier of
British Territory at the Lo Fu Ferry should be put in hand
with the least possible delay. I have little doubt that
arrangements will eventually be made with the Chinese
Authorities for the construction of the Chinese section of
the Canton-Kowloon Railway and for its joint working with
the Hongkong section. The Chinese section presents no con-
-siderable engineering difficulties while the piercing of
the tunnel in our territory is a work which must require a
long time and so is likely to delay the completion of the
whole project. Even should the construction of the Chinese
section be long postponed I am satisfied from the statis-
-tics which accompanied my Despatch of January 11th. and
from the brilliant success with which the short Canton-
Samshui branch of the Canton-Hankow Railway has competed
with the neighbouring water communication in the short
period
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