CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 579

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4.

Subsequently at a meeting held at the Waiwupu on the 8th. October, 1906, His Excellency Tang Shao Yi objected to article 2 of the Loan Agreement, as originally drafted, in so:

far as it referred to the working agreement to be thereafter

negotiated between the Viceroy and the Hongkong Government. He

considered this as a matter beyond the proper scope of the Loan

Agreement which referred only to the Chinese Section of the Railway and he proposed to delete all mention of the Working Agreement. Incidentally he objected to the term as liable to create misapprehension and difficulty in the future and stated

that the Chinese Government would not bind itself to the condi-

-tion that the two sections of the line should be worked as one

undertaking, it being their intention to have separate frontier stations and an independent system, under conditions similar to those existing at Fongtai junction on the Northern and Ching

Han Railway.

Mr. Bland expressed his regret that this

intention has not been made clear from the outset since the loan

issue must inevitably be prejudiced if there were any doubt as to the railway being worked under reciprocal arrangements calcul- -ated to promote its earning power. He pointed out that the working agreement had been frequently mentioned and its eventual arrangement assumed at earlier meetings; also that in article 21 of the Viceroy's draft it was specifically provided for. After considerable discussion it was agreed to substitute for the clause as drafted the Viceroy's original proposal reading as

follows:

果

"The junction of the Sections of the Railway

*from Canton to the boundary of the Kowloon leased territory "under British control and from the stated boundary to the port "of Kowloon respectively shall be arranged and the Railway work- *-ed under conditions based on the agreement usual in regard to th "junction and working of inter-state railways in other countries. "The Viceroy and the Governor of Hongkong shall in due time

"appoint officials to consider the subject and to arrange

regulations

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