CO129-477 - Public Offices - 1922 — Page 499

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The people who have brought this matter to my attention sum it up like this *The British will not want to relinquish control of line (E), the Kowloon end of the Canton-Kowloon railroad, one would not wonder at that; but if they insist on connecting the Kowloon railroad with the railroad (C) running from Canton north and do not allow all desired tracks from Canton city to the

namely, to harbor of Canton, their purpose will be clear, suppress the development of Canton harbor and make the new system really a HONGKONG-Hankow railroad, thereby perpetuating the "strangle-hold" Hongkong has on Canton, about which the Cantonese

ofton speak!

If that connection is to be made (and I favor it, on herein expressed conditions), the freedom of Canton to develop its harbor and to build railroad tracks to it, must be obtained að 4.

part of the original arrangement,

For many years,

strategic advantage

This has always been

the British have endeavoured to secure the physical connection between lines (C) and (D), obviously in anticipation of this line to Hankow and the

the connection would give Hongkong. refused by every Chinese Government, for reasons appearing herein. During the last year, I am told, the British offered to build the connection at their own expense and give it free to the Chinese The fact of owner- Government, which offer was also declined.

ship of the connecting track by the Chinese would not at all detract from the advantage above mentioned and its cost of con- struction would be a small price for Hongkong to pay for such

advantage.

The railroad to be built with the new money must be care- fully protected against the obvious disadvantage it would laber under, if all the through traffic originating at or destined to the southern port were controlled by a separately owned and controlled line, with no other harbor terminal from or to

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which through traffic may be handled.

Furthermore