CO129-470 - Public Offices - 1921 — Page 83

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Messra, Loxley and Comany to the Colonial Secret ry,.

August 17th.,1920.

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With reference to our conversation of the 14th instant, on the subject of the construction of the Canton-Hankow Railway from its present terminus at Shiuchow to the Hunan barder and the re- organisation of the existing section from Hankow to Shiuchow, I have, as requested, the honour to state the result to date of ne- gotiations, extending over the last six months, with Mr. Taen- heuan, the Chief of the Administrative Directors of the Military Government and the Director General for Railways of the Southern

Eight Provinces, The Military Governor of Kung tung has been

party to theas negotiations, as have been the Ministers of Com-

munications and Finance and the Chief of the Engineering Bureau

for Railwaya.

The negotiations have been carried on in the name of the

Military Government, and Mr. Tsen has repeatedly assured us that

any loan formerly contracted for by the Military Government within:

the period of The Constitutional Independence of the South-West

will be recognised by the Pekin, Government and by the United

Government when the latter is established.

We gather that Mr. Teen has not referred his negotiations

with us to the Peking Government and would resent our doing so

ourselves, but unless we are greatly mistaken we think he is sin-

cere asseverating that Paking would ratify any agreement of the

nature of this one, when once the agreement has been definitely

entered, into and signed by the representatives of the Southern

Military Governpunt.

•

We have not pressed our Legotiations to the point of baving a formal agreement drawn up and signed, as we first wish

to ascertain the attitude of both the Imperial and the Hongkong

Governments/