CO129-373 - Public Offices - 1910 — Page 47

[This Document is the Property of His Britannic Majesty's Government.

46

28389

CHINA RAILWAYS.

CONFIDENTIAL.

C

[31004]

No. 1.

Reet 13 SEP 10

[August 25.]

SECTION 1,

(No. 268.) Sir,

Mr. Max Müller to Sir Edward Grey.-(Received August 25.)

Peking, August 5, 1910. WITH reference to my telegram No. 128 of the 24th ultimo, I have the honour to transmit to you herewith copy of a memorandum I have addressed to the Wai-wu Pa urging that the negotiations for the joint working agreement of the Canton- Kowloon Railway he continued on the basis of joint management,

I have forwarded a copy of the memorandum to the Government of Hong Kong.

I have, &c. (In the absence of His Majesty's chargé d'affaires),

E. SCOTT.

Enclosure in No. 1,

Note communicated to Wai-wu Pu by Mr. Max Müller,

IN a note from the Wai-wu Pu, dated the 19th March, 1910, Mr. Max Müller was informed that Taotai Wei Han had been appointed to meet the representatives of the Hong Kong Government and negotiate with them an arrangement for the joint working of the British and Chinese sections of the Canton-Kowloon Railway.

Negotiations have consequently been proceeding in Hong Kong, and a draft working agreement has been drawn up, a copy of which has, I understand, been forwarded by Mr. Wei Han to the Board of Communications. Matters have, however, reached a deadlock, owing to Taotai Wei Han having been instructed that he must only negotiate on the lines of separate management, while the Government of Hong Kong is not prepared to negotiate on such a basis.

The Government of Hong Kong point out that the objection of the Chinese Government to joint management is not well founded, for Great Britain and China will have equal representation on the board of control of the railway, while any point on which votes are equally divided must, according to the draft working agreement, be referred to the two Governments for settlement.

It is estimated that by adopting the proposal of the Hong Kong Government for joint management the Chinese section will save 100,000 dollars per annum on its share of the working expenses. Moreover, the uniformity of procedure secured by joint management must lead to greater efficiency, while on the other hand separate management may be expected to arrest the expansion of trade to the detriment of the general prosperity of the country through which the line runs.

Mr. Max Müller has the honour to request that under these circumstances the Wai-wu Pu will communicate with the Board of Communications and persuade them to look at the question from a business point of view, and to instruct Mr. Wei Han to continue negotiations on the basis of joint management.

W. G. MAX MÜLLER.

Peking, August 2, 1910.

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