CO129-366 - Governor Sir Lugard Acting Governor May - 1910 [4-5] — Page 49

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at the same time gave assurances that if any further

0.216 of Eastern funds should be wanted for the Canton Hankow Railway

88.

by loan, England should get the first offer. Nothing

p. 447-8 Eastern 88.

P. 492 Fastern 88.

was said as to the Kowloon Canton Railway: and as

will be seen from p. 185 of the print the Viceroy wished to keep the matters separate, though he ex-

pressed great appreciation of the service rendered by

the loan. Hong Kong has therefore a strong claim

for considerate treatment by the Chinese.

.

The Kowloon Canton negotiations still pro-

ceeded slowly, the Viceroy obstructing as much as

possible until March 1906 when he was compelled to give way: (up to this time the negotiations had chiefly

consisted of attempts to persuade the Viceroy that

he could not cancel sua sponte a formal agreement

approved by the Throne). But though some progress was

made, the Chinese were averse from settling the working

agreement simultaneously with the Loan Agreement, and

it was found impossible to bring any provisions for

connecting up with the Canton Hankow Railway into the

loan agreement. The loan agreement was signed by the

delegates on 11th November 1906 and ratified by

Imperial Edict on the 7th of March 1907. (A copy will

be found on pp.513 et seqq. of Eastern 68).

5. It is now proposed to negotiate the working agreement with the Chinese Government; and, apparently

with a view to bringing pressure to bear on the Chinese

to comect the Kowloon Canton Railway with the Canton.

Sir F.Iugard is trying to establish that

Hankow Line,

a