CO129-384 - Public Offices - 1911 — Page 472

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had declined. The delay in the receipt of the Chinese

representative's report enabled Lord Li to postpone any fur-

ther discussion here until the 27th. of July when the inter-

view of which the minutes are enclosed took place.

The attitude adopted by Lord Li and his

American-educated secretary Mir. Yuan was so uncompromising at

the outset, that I found it necessary to review at some length

the policy of His Majesty's Goverment in regard to railway

matters in China generally. I laid stress on the marked

generosity of that policy as compared with the claims rain-

tained by some other countries in their dealings with the

Chinese Government in regard to railway construction and ex-

pressed my surprise at the haggling spirit displayed by the

Ministry in the present negotiations. I further again warned

Lord li that it would be necessary for me to revert to the

claim for joint management and reopen the whole question of

the construction of the Loan Agreement with the Wai Wu Pu

if this spirit were persisted in.

After protracted discussion I offered to sug-

gest to the Hongkong Government as a final compromise a diy-

ision of profits in the proportion of 354 British to 65,

Chinese

HTT