CO129-384 - Public Offices - 1911 — Page 190

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such as would enable the line to compete with the water routes, on allowance being made for the relatively greater cost of the British section owing to its engineering difficulties, and on the provision of facilities at Shamohun. An regards the second of those points Liang Shih yi had admitted the principle at interviews which he had with Sir Frederick Lugard in Peking

last autumni.

Sheng agreed that the principle or allowance for cost of section was reasonable and he thought there must be many in- stances of agreements for transfrontier working on Buropean railways which might be taken as precedents in these negotia- tions: as regards competition with water routes - this while

comparatively easy as far as passenger traffic was concernod, was likely to prove impossible in the case of goods traffic.

speaking

Generally/1 he was not sufficiently ne-abandad soquainted with the details of these negotiations but he was anxious to have

them concluded as soon as possible and with this in view he

would direct Lord Li to take up the question forthwith and ra-

quest him to telegraph to Chao for a full report on the Chi-

nese side of it.

Sir J. Jordan concurred and undertook to arrange a meeting

with Lord Li and lay before hie a memorandum containing the

views of the Hongkong Government. He added that the Governor

of Hongkong considered that he was entitled to expoot assis-

tance from the Chinese Authorities in this matter in return

for the considerable concessions he had made to them recently

in connection with negotiations regarding Police and Customs

matters.

Sheng replied that he was quite unacquainted with either

of the questions referred to, but he repeated that he was anxi- ous for a speedy conclusion of a Working Agreement and would

instruct Lord Li accordingly.

Asked whether the wai Pu had already spoken to him on

this subject (in accordance with their promine of June 9) Sheng stated that he had heard nothing at all from that Board.