declined in my letter to Mr. Chao, dated the 24th. Day leat, both an being unfair to the British Section and as fixing £ throu à rutes which youl. have killed traffic.
375
The next step in the discussion was the meeting of the JK. ulti o betraun ar. Choo, ir. Lindsey and myself, at which is vas myr od tant the adjustment of the raton and fares on trough traffic of all kinds should be based upon the principle t...t tie pot Berninge of both Sections should beer en identical ratio to the capital cost of both Sections. No sctual ratio was, hueaver, fixed upon: an sub- -sarumbly in a letter dated/ the 7th. ultimo ar. Cimo proposed division
(*) batwoon liony kong sau Canton in a ratio of abị tri ish to
75% Chinuse;
(b) between on kon
an: cheklung in a r∙tio of 37.2 British to
62.5% Chinese.
In the 12th. ultime, horever, r.
ei lian collæd upon me and suid
thet te Viceroy had at last obtaine. ar. Choo's dousent to division
of the rates and farve on tirough traffic of all Lindin in a ratio of 30% Brilian to 706 Châness.
IV.
In tuese cirowantaneep the 4th. Brisiah offor as mado to
which covered copy of e ir. Chuc in my letter of the 15th. uitize,'
redraft of the Corking Agreement au proposed in schmule B the follow -ing division:-
(e) botween lion, con
and Canton -
lat. leas
End. clege
3rd. class
40% Brivash : 60% Chinese
: 64.00
: 67% Chinese
(b) between lion, kon, and Sheklung 50% Britính : 60). Chinese in all classes. Before any reply ctes from ar. Chao, ir Joan Jordan bole, ra had on the 29th. ultimo:- "The Minister of Comunia tions *considers that the division of profite prosents the only real diffi- "-culty. Se anys that 20% has ben offered you and rejerda your wielm "of 44% as tuo nigh, le would evidently scrapt compromise". To wis
teleprem sir 7. D. Lugard replied by ceble on the lat. iantant:- "The "lowest ratio of division between the Brities and Chinese Sections "whion we can accept for ärd. class through passenger traffic and for
Mhrough
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