CO129-349 - Governor Sir Lugard - 1908 [10-12] — Page 132

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hold on the British and Chinese Corporation whose interests

are centred solely in the Chinese Section.

(b).

The cost of the British Section

has roughly doubled, and it will probably not be completed

under £1,000,000. The interest and sinking fund on this summ

with running expenses and maintenance will form a very

heavy annual charge.

(c)..

Chinese policy and aspirations

have developed in the last few years in a direction un-

-favourable to joint co-operation. It is now their great

desire to manage their concerns wholly without foreign

interference and to nationalise their Railways.

8.

In these circumstances it appears

to me that their is nothing to be gained by postponing the

settlement of the general principles upon which the Joint

Working Agreement is to be framed. The present time

presents some favourable conditions which may not obtain

in the future. British relations with China are at the

moment exceptionally cordial, and our Minister exercises, I

believe, an exceptional influence at Peking. Locally the

relations between this Government and that of the neighbour

-ing Provinces are also cordial. The policy of exclusive-

-ness, and of unwillingness to admit of foreign co-opera-

-tion