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Enclosure 2
running powers, such as Mr. Wel Han indicated in his
14
interview with Messrs. Lindsey and Clementi at their
P
meeting on the 5th. of July last. They merely provide in
a measure for the hire of rolling stock by one Section
from the other.
I enclose a memorandum drawn up
by Mr. Lindsey in which he shows that the arrangement
proposed would not pay either Section. The arrangement
is quite unacceptable to this Government. There is no
comparison between two long lengths of Government Railways
in China, for which an arrangement on the lines of the
draft might suffice, and the Chinese and British Sections
of the Canton-Kowloon Railway. This is a fact that any one
well versed in Railway Administration will recognise.
3.
I also enclose copy of a despatch
from His Majesty's Chargé d'Affaires at Peking covering
a despatch to the Secretary of State for Foreign Affairs
on the subject of this draft. I do not agree with Mr. Max
Muller's interpretation of the reference in the Loan
Agreement to Joint Working and in this connection I would
19 refer you to my Despatch of the 16th. of July last. The
Enclosure 3.
Gerv. 2
25555
point however is of secondary importance to the fact that
no one who has an expert knowledge of the subject doubts
that
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