CO129-378 - Governor Sir Lugard - 1911 [6-7] — Page 344

V&R

boje Sprement)

Enclosure 2

(with Appendices A-G)

Fourth Meeti ng

C D 338

1911 27453

Council

Hongkong, 2nd June, Chamber

Present: Messrs Chao Ching-hua, Chou Te-met .

his secretary, B.S.Lindsey, C.0lementi.

We agreed in the first place to the extraction and embodiment (with certain medifications) in a new agreement of some of the clauses in the draft Working Agreement handed by

The clauses as modi- me to Mr Wei Han on the 5th July, 1910.

ried are attached (Appendix A). They are those dealing withr-

(a) Telegraphs: Previously No 23

(b) Connection with Hankow Railway: Previously No 28 (c) Branch lines: Previously No 29

(a) Customs: Previously No 31

(e) Ownership: Previously No 52

(f) Termination of Agreement: Previously No 33

(g) Commencement and Term of Agreement: "Previously No 54 (h) British and Chinese Texts: Previously No 35

In connection with the Customs question I handed Mr Chao the draft (appendix B of the clause relating to the Railway in

that the proposed Customs Convention, and I explained to him

this Convention had been suggested by Mr Harris who had placed a draft of his proposals in the hands of the Governor General

The Hongkong Government was ready of the Liang Kuang provinces.

to meet the Gov General in the matter should His Excellency bring the proposals formally before the Governor of this Colony. I told Mr Chao that Taotal Wei Han had been fully informed by Mr Harris of the proposed Customs Convention and that he would be able to get all necessary particulars from the Taotai.

We next took up the question of the capital cost of the two Sections and agreed to place that of the British Section at $10,553,000 and that of the Chinese section at $15,130,000. Following this up we agreed upon the method of division of rates described in the draft articles attached (Appendix # 0), the principle adopted being the equalization of the ration between

being the net earnings and the capital cost of each section. Pending further inquiry on the basis of actual figures to be made in January 1913 and subject to adjustment at that date we agreed to adopt at opening for through traffic the rates