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conducted in Hongkong by persons who have an intimate

knowledge of the subject. I trust therefore that the

recommendation contained in the 13th. paragraph of Sir

F. D. Lugard's Confidential Despatch of the 28th. April to

the effect that the Commissioner of the Chinese Imperial

Maritime Customs should be deputed to negotiate with a

representative of this Government is approved.

3.

I have also to invite Your Lord-

Gur

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-ahip's special attention to the concluding sentences of the

13th. paragraph of Sir F. D. Lugard's Confidential Des-

-patch of the 28th. of last April and also to the 5th.

paragraph of his Confidential Despatch of the 9th. idem on

the subject of the Working Agreement for the Kowloon-

-Canton Railway. Your Lordship will observe from these

passages that it was decided to incorporate the necessary

Customs arrangements, so far as they affect the Railway,

in the Customs Convention rather than in the Working

Agreement, because negotiations would thereby be facilitat-

-od, the Agreement with the Imperial Maritime Customs

being negotiated with the Chinese Imperial Maritime

Customs,

and if necessary with the Shui Wu Ch'u, while

the Working Agreement was separately but simultaneously

negotiated with Mr. Wei Han acting under the instructions

of

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