CO129-344 - Public Offices & Foreign Office - 1907 — Page 120

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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negotiations must follow the lines of the Shanghai Nanking

agreement. After repeated discussions he eventually agreed

to consider arrangements based on those of the Northern

Railway Loan, and to discuss other clauses (than those in his

proposed draft).

our

M

Now, in several railway agreements, the provision

most damaging to our interests is that which admits of profit-

certificates. Therefore, my first step was to get this clause

struck out.

As regards what Your Fxcellency says in your telegram

to the effect that: "as we have let the British capitalists

"construct this line, and have agreed that no other line can

"be built to compete with it and damage its interests, all the

"future railway development of the whole Province is placed

"under their control, and there is no line which we can under-

"take ourselves, while X other Provinces will also suffer

"from the effects of this provision, which is more far-reaching

#even than the previous demand respecting a parallel line"; I

beg to observe that the present Agreement arranges for a loan

of money to be made by the British capitalists, but the State

constructs the line itself. It is not the British capitalists

who are going to construct it. Therefore, as it is a State

line, there is naturally no possible justification for pro-

Geeding to build another line in the same direction and to

thus enter into competition with oneself. Further, the ques-

tion of "competition" applies only to this particular Canton-

Kowloon line and in no way affects the railway development

of the whole Province; still less can other Provinces suffer

from this understanding.

Page 120Page 121

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