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goes to them or to the government.

I incline to the

latter at the moment but again we might await Minister

for Foreign Affairs' views regarding board before

going further into that.

'7. Turning to Addis' contention (latter part of

first paragraph of your telegram No. 62) that orders

for railway material would naturally gravitate

towards Great Britain without some special proviso

to that effect I regret I cannot agree. There is a

steady tendency to eliminate foreign elements in rail- weys and to restrict powers of foreign staff.

8. If general purport of this telegram is approved

I propose to set to work on necessary details and to

request Mr. Newton to begin feeling the ground in

Nanking in preparatory way.

Addressed to Foreign Office telegram No. 144,

February 16th, repeated to Hankow for Mr. Newton No. 12.