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in
who is a man of broad views, and la on excellent terTIS
with the Chief Resident Engineer. The appointment would moreover
dislocate the present regime and probably result in the
replacement of Mr. Wi Hm and others. For this reason I
hositate to do more at the present stage, than to ask Your
Excellency to pross for the control to be rested in the Viceroy
and the Kanaging Directorship in Er. Voi Miut.
The terms of the Agreemont will involve the
consideration of many matters of a highly technical nature, and
it is possible that I may find it advisable to secure the
advice of a Railway Traffic Manager of experience. I sha))
therefore require to have arple notice of the date on which
negotiations are likely to begin.
The Secretary of Stale put: forvard throa
#possible dangers" to the inserasta of tils Golony. Regarding
the first the selection of a Chinese Port for the Torminus of
the Trunk Line I have had occasion to widress you from time to
time. I wn not aware t'at the project has of late found favour,
and I an informed that the insufficient depth of water at
Tharpos affords a very atrng objection to the scheme. Should
it be reriyod is will as heretofore be strenuously opposed under
Artiole 15 of the Loan Agreement.
The second danger is that "the Chinese
Goverment may strangle goods traffic by the imposition of
Lakin Charmes*. I an aware that Your Excellency has alrendy
brought this question to the notion of the Chinese Government
in the case of the Shanghai-Xanking Railway and I have seen a
printed copy of your Despatch No. 123 of 16th, Varch, 1908, but none of later date, to the Secretary of State for Foreign
Affairs on this subject. The terms of the Loan Agreement for the Kowloon-Canton Railway are not identical in this natter
with those of the Shanghai-Hanking Railway, and they appear to provide for exemption 'from any special taxes' only until sho Loan has been paid off. I am also in doubt, seeing that Kowloon
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