CO129-336 - Governor Nathan & Public Offices - 1906 [11-12] — Page 42

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HOW

which the Chinese Government might take exception. Mr. Bland said that conditions of this kind while without possible detriment to the interest/ of the Chinese Governtent, were absolutely necessary to inspire con- -fidence amongst investors. He had sent to Shanghai for one of the Bonds and hoped to be able to reassure His Excellency as to its form

being unobjectionable.

Article 2. M. 5. T'ang Shao-Yi objected to the wording of this article in so far as it referred to the Working Agree- -ment to be hereafter negotiated between the Viceroy and the Hongkong Government. He considered this as a ratter beyond the proper scope of

the present Loan Agreement which referred only to the Chinese section of the Hailway and be therefore proposed to delete all sention of the

said working agreesent, incidentally, he objected to the ters as liable

to create misapprehension and difficulty in the future, and stated that

the Chinese Government would not bind itself to the condition that the

two sections of the line should be worked as one undertaking it being

their intention to have separate frontier stations and an independent

system, under conditions similar to those existing at the Hengtsi

Junction of the Northern and Ching Han Hailways.

kr. Biand expressed regret that this

intention had not been made clear from the outset since the loan issue

must inevitably be prejudiced if there be any doubt as to the Railway

being worked under reciprocal arrangements calcuisted to promote its

earning powers, he pointed out that the Working Agreement had been

frequently mentioned and its eventual arrangement assured at earlier

meetings; siso that in Article 21 of the viceroy's draft it is specific-

-ally provided for. After considerable discussion.it was agreed to

substitute for the clause as drafted the Viceroy's original proposal,

reading as follows:-

"The junction of the sections of the maiiway from *Canton to the boundary of the Kowloon Leased ferritory yaler British *control and from the said boundary to the port of Kowigon respectively

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