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the Chinese section has been under discussion with the Board of Communications, and it has been arranged that the practice of the Northern railways should be followed. In accordance with that practice, Messrs. Barry will be entrusted with the inspect❤ -ion of all materials ordered in England, and will receive remuneration on the usual terms therefor. The chief reason given by the Chinese Government for refusing the precedent of the Shanghai-Nanking Railway was that they were greatly dis- -satisfied with the advice given by Messrs. Barry in connection with that railway, the estimates for which were revised at least three times, and had always proved insufficient.
I have arranged verbally with the Board of Communications that Mr, Wei-Han shall, as desired by you, act as their delegate for the negotiation of a working agreement, and that he shall be available for this purpose at any time after his return from Tonquin. The Viceroy.will take the decision on the territorial point of junction of the two sections, but that done, Mr. Weirhan will discuss at Canton, with Your Excellency's delegate and His Majesty's Consul-General all questions relating to the joint working agreement.
I have no reason to believe that the Board
of Communications are raising obstructions or creating artifici- -al delays, but I am disposed to concur with Mr. May and the technical experts in the view that an immediate discussion
of the working agreement might not advance matters. The suggest- -ion of Mr. Grove that he and the Chief Resident Engineer of the British section should endeavour in the first place to reach an
agreement on the questions involved appears to me very practical and I think that by following it Your Excellency would be more likely to hasten a conclusion than to delay it.
According to my information the prospect of
a railway from canton to Whampoa appears to have been abandoned, at least for the time being. I am also informed that the con- -cession for the construction of this projected line to Amoy
has been cancelled by the Board of Communications.
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