CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 574

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A.

CO

Sir,

17433

527 MAY 11

561

ER

Colonial Secretary's Office,

Hongkong, 29th. November, 1910.

Referring to the draft Working Agreement which this Government proposed to the Chinese Government as a basis for negotiation in reference to the future Joint Working

of the British and Chinese Sections of the Canton-Kowloon Rail-

-way, of which I understand that you have a copy, I am direct. -ed to enquire whether the British and Chinese Corporation are prepared to support the general principles upon which its propos-- -als are framed. In particular I am to enquire whether the British and Chinese Corporation (in view of the fact that during the early negotiations for a Joint Working Agreement they con- -curred in the necessity of the whole line being managed "as one undertaking") support the proposal, contained in the draft

referred to, for Jaint Management by a Board constituted as

suggested therein, and would be prepared to make any modification

in the Loan Agreement necessary to give effect to these propos- -als. I am to add that this Government does not insist upon the

proposed constitution of the Board, and would be willing to agree

that it should consist of two members only, one of whom might

be the "Director" of the Chinese Section,, should the Chinese

Government shew a strong preference for such a modification.It

may perhaps be possible to devise some such forms of Joint Manage-

-ment, as may be effected by agreement between the Government of

Hongkong and the British and Chinese Corporation without necessita-

-ting any alterations in the Loan Agreement in so far as the

Chinese are concerned, and I am to enquire further whether in

that case your directors would be willing to meet the wishes of

this Government, whit with a view to carrying out the principles

contained in the draft Agreement, viz.:- that the whole line

should be worked as one undertaking under a joint board, the

members of which are appointed by each Government subject to the