CO129-368 - Acting Governor May - 1910 [8-9] — Page 395

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based on political grounds which are the hardest of all to

remove. I have not as yet attempted to meet the arguments

against Joint Management adumbrated in Mr. MaxMuller's

private note of the 31st. July. I deemed it better to

await the answer of the Wai Wu Pa before attempting to meet

possible objections. But I may here remark that it is

impossible to find an analogous case to the present one in

Europe or elsewhere where Railways have been long establish

-ed. If China were well versed in railway management it

might be quite unobjectionable and even remunerative for

this Government to hand over her short section of the

Railway to China's management receiving in return payment

for the running powers. But China is a novice in railway

management and it would be nothing short of madness for

this Government to accede to such a proposel in this case.

I have, therefore, the honour to

point out that it is now necessary to decide whether the

endeavour to induce the Chinese Government to accept the

Working Agreement as originally drafted should be persisted

in or whether the proposal for joint management of the two

Sections of the Railway should be withdrawn and an alter-

-native proposal substituted.

2.

In order that Your Lordship may

be

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