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No. 315.
Sir,
(To accompany Enclosure
We had a coby
3
.) · 26
Peking, September 11th., 1910.
309801
In continuation of my despatch No. 268 of the 5th. ultimo, I have the honour to transmit herewith a translation of the reply of the Chinese Government to my request that the Board of Communications should accept the principle of joint management as the basis of the negotiations for a joint working agreement of the two sections of the Canton-Kowloon
Railway.
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It will be seen that the Board of Corranica- -tions for various reasons refuse to entertain the proposal of
joint management and have forwarded to Mr. Wei Han, who is to
continue the negotiations pending the arrival of his successor
in the post of General Manager of the Chinese Section, Mr. Shih Chao-tseng, a director of the Shanghai-Nanking Railway, counter- -proposals based on the principle of through running powers,
which is the syston adopted by the various Goverment Railways in China. The Board of Communications express the hope that the Hongkong delegates may be instructed to continue negotiations
on that basis.
I took the opportunity of a visit which I
received a few days ago from Liang Shih-yi, the Director-
-General of Railways, who has been indisposed for over a
month, to rofer again to the question of the Working Agreement
and I repeated the arguments which I had embodied in my nonoran-
-dum in favour of joint management of the two sections. I
further said that there was another point of paramount import-
-ance to both sections of the Canton-Kowicon Railway, and that
was a connection with the Canton-Hankow Railway. I thought it
more prudent to avoid all mention of a possible loan from the
Hongkong Government for this purpose. Liang Shih-i assure d
me that the Board of Communications were fully alive to the
absoluto necessity of making the short connecting link between
the
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