CO129-329 - Governor Nathan - 1905 [7-12] — Page 796

CANTO ---K OWLOO K---RAILWAY

VICEROY REQUIRES CANCELLATION OF CONCESSION.

ENCLOSURE IN CONSUL-GENERAL SCOTT'S No 66 of 1905.

Translation

792

Viceroy

to

Consul-eneral

sir,

In connection with the proposal for the construction of the

that Clause five of Canton-Kowloon Railway, I beg to point out

#

the draft Agreement concluded by Sheng, Director-General of

Railway Administration, with the representative of Heanrs

Jardine hatheson & Co and the Hongkong & Shanghal Bank, lays

down that "if, on consultation with the Viceroy and Governor of

this Province, local difficulties be found to exist, the Agrce-

-ment shall be amended accordingly ; that is to say, the arrangements for the construction of the line should depend on

local condition.

How ceveral years have elapsed since the

conclusion of the Agreement, and the present situation is totally different; with the result that any complaisanco or compromise would only involve both parties in difficulties.

The construction of this railway was proposed ritu a view to the coercial advantage of both cou tries, and the recommendation by H..inister in Peking that British firms should undertake the work was due to his desire that the trans- -port of merchandise thereby facilitated; not in the personal

interests of any individual.

As the section of the line within Kowloon territory is to be constructed by your Government, tuis Government will on its part, raise funds for the construction of the section between Canton & the Chinese frontier of Kowloon; each Govern- -mant to have exclusive and independent control of its or section; and I would urge that the question of British im constructing the Chinese section be now dropped.

When both sections of the railway have been completed