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THE BRITISH AND CHINESE CORPORATION. LIMITED.
DUPLICATE
2.
147
About three years after the conclusion of the Chinese Loan Agreement the Hongkong Goverment prepared and presented to the Chinese a form of Agreement which the Chinese considered unduly affected their authority on their own line and which they refused to entertain.
The Hongkong Government have now sádressed to you as the Representative of the Corporation in offical form a series of enquiries as to the Corporation's attitude and intentions in regard to this proposed. Agreement which the Bourd find very emburras si IUS -
This policy of the Hongkong Government 24 the past has placed the Chinese in a dominating position, and were it not that the Board of the Corporation remain convinged that an equitable Working Agreement is most desirable, if not vital, to the successful operation of both sections of the Railway, and
is therefore in the interests of the Chinese and the Bondholders of the Chinese Soun on the one hand and of the Hongkong Government on the other hind, they could scarcely do otherwise than sanction the delivery of the reasonable and logical reply to Sir H. May which you have drafted and submitted for the
Bourd's consideration.
The Board however recognise the difficulty in which the Hongkong Government find themselves and are very loath to return any reply which might be deemed to be unsympathetic, and
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