CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 582

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principle of separate administrations; and it was doubtless with a view to leave what opening he could for reviving in the future the idea of joint management that Mr. Bland suggested a modifica- -tion of this clause. But the amendment he succeeded in securing does not afford sufficient ground for the Corporation to base

thereon the contention that the Chinese Government committed itself to the principle of a Joint Board, especially as the other articles of the Loan Agreement contemplated that the Chinese section should be managed by a Head Office at Canton.

The draft Working Agreement prepared by the Hongkong Government appears to involve as a necessary consequence

the dissolution of this Head Office, and in this respect seems, in the opinion of the Corporation, to conflict with the Loan Agreement. They consider therefore that in these circumstances and on account of the Chinese Government's attitude towards the question as far as this is known to them the only solution of the problem now lies in framing an equitable Working Agreement with separate administration.

-

I have etc.,

(Sd.) S. F. Mayers.