CO129-332 - Public Offices & Others - 1905 — Page 445

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In regard to the terms of your letter,in order to meet

your views as far as possible,we have omitted the words to which you object and merely added in the third recital a reference to the obligation of the Chinese Government not to make alterations in accordance with the provisions of the Loan Agreement to which you referred us. We presume there will be no objection to the inclusion of an Article corresponding to the first paragraph of Article 14 of the Loan Agreement. As the Chinese Government is to be asked to allow

all materials for the construction and working of the railway or branch

to Enter to

lines free from Customs Duty in order to diminish the cost of the

*

railway, sessä we presume the Hongkong Government will do the same. We therefore suggest the addition of a clause in the following terms:- All materials of any kind that are required for the construction and "working of the Hongkong section or of any branch lines shall be "exempted from Hongkong Customs Duty".This might be made a separate clause or added to one of the original clauses as you think best.

We are

Dear Bir

Yours faithfully

Clephenson St

C.V.Fiddes Esq LA.

Colonial Office

Downing Street S.W.