CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 237

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Working Agreement and the complications which may arise with the

Hankow line in case of protracted delay) but our conclusions

are the same, and coincide with the views expressed by Your

Excellency to myself in conversation.

kr.

Grove has also called on me (on 1st.

August, 1908) since this Despatch was written, and I spoke to

him regarding the Working Agreement. He referred again to the

letter which he had ree dyed fron Peking authorising him to

settle any questions which dorwinded adjustrent with this Govern-

ment and submit his proposals for approval. Ac Ang on this

letter of which he informed me gore months ago, the Chief

Resident Beginoor of the British Section under ny authority has

communicated already on such matters as the point of junction of

the two lines, the proportionate cost of the bridge at this

point, the type of Bolliar Stock le. The larger question of

Workshops was also raised but led to no satir ́actory conclusion.

I pointed out to 12. Grove that questions of this class stood

in a different category from the larger questions (appointment

and construction of a Board of Management, basis of profit-

-sharing &c.) which must be decidnd by the two Government S

concerned. He then suggested to be that these matters also

should be discussed between himself and the Chief Resident

Engineer of the British Section (which amounts to a discusion

between himself and this Government) and that when a basis of

agreement had been ranched which he felt that he could recomend

to the Chinese Government be should subiit it in the same way

as minor questions. In point of fact this suggestion amounts to

a proposal that this Government shall nagotiate with an un-

-authorised agent, who feeling that he represents the Chinese

interests will naturally put forward those interests and the

agreement arrived at would be vaken by the Chinese Government

as the full demands of the Hongkong Goverment to be whittled

down and delayed indefinitely. It would no doubt be a more

dignified position for this Government to negotiate when the

time