CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 233

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is not a Treaty Port, whether 'exerption certificates' may be

claimed for goods consigned to Canton or eventually to Wankow.

The question of Lekin charges would of course form one of the

matters for negotiation under the Joint Working Agreement, but

I confess that I am at present at a loss so see what rights

thia Government possesses which would be violated by the

imposition of Løkin dues, or what lever it can use to prevent

auch action on the expiry of the Toan Agreement.

To put the matter bluntly this Government

has embarked on s project costing probably about £1,000,0

.000

Sterling, but has no agreement of any kind whatever with the

Chinese Government with whoae Railways it in to connect. Such

few and unsatisfactory safeguards as it possesses (such as the

stipulation for no competing line) are contained in the Loan

and Agreement between the Chinese Government and the Brizish/(hinosa

Corporation so which this Government la not a party, and which

I presume eould be modified by mutual consent, and In any case

lapses 26 years after the line is completed if the Loan is

duly repaid. In these circumstances I feel that I have but

little to negotiate upon in framing the Joint Working Agreement,

beyond the terms of Article 18 which binds the Chinese Govern-

-ment to make an Agreement "for the joint-working of the two

sections".

I shall be grateful to Your Axcellency for

any information on the subject of Railway Lekin, and any

suggestions which you may be able to offer as to the conditions

in this matter which this Government could reasonably ask, both

during the continuance of the Loan Agreement and subsequently,

and the argumenta by which such claims could be supported.

The third point to which the Secretary of

State invites ry attention is that "it la conceivable that the line may be so badly laid out, the permanent way so light, and the bridges so inadequate in strength that the Hongkong trains could not safely run over them and it is even conceivable that the gauge might be altered". It would seem to mẻ that in this

matter