CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 577

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The British and Chinese Corporation, Limited.

The Honourable

The Colonial Secretary,

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Hongkong.

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Sir,

Peking, February 22nd., 1911.

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With reference to my letter of December 15th., 1910 in which I acknowledged the receipt of Sir Henry May's letter of November 29th., on the subject of the Canton-Kowloon Railway,

and deferred further reply thereto until I had communicated with

my Directors, and I am now in a position to state that the Bri-

-tish and Chinese Corporation consider the early conclusion of an

equitable Working Agreement most desirable, in the interests of both sections of the line, and that they are fully prepared to do all in their power to support and facilitate any arrangements

which may be proposed, provided they do not conflict with the

terms of the Loan Agreement. They consider it very doubtful that

any actual modification of the terms of the Loan Agreement

would be sanctioned by the British Courts and they are therefore

of opinion that the first essential is to formulate a scheme

which would not conflict with the terms of that contract.

If I can be of any assistance in attaining

this end my efforts will be at the disposal of the Hongkong

Government.

I have etc.,

(Sd.) S. F. Mayers.