CO129-520-6 Railway development- Canton-Kowloon Railway 5-11-1929 - 5-11-1930 — Page 142

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press all such claims as well as extremely difficult to induce

is clear? the Chinese Government to accept them. It seems unlikely how-

ever that the latter

•Vanaware f the existence of

se earlier

olaism (please see the correspondence between the two seations

of the railway enclosed in Sir Cecil Clementi's despatch) and in

the event of any claim for mspension of traffie being presented

I see no logical alternative to formally recording the whole a-

mount of claims outstanding ander this head.

Otherwise the

Chinese may assume that, by presenting the 1929 claim alone and

enforcing it by with-holding the amount from the cash balance due

to the Chinese section of the Railway, we are attempting to man-

couvre them into acceptance of the principle underlying such

claims witli a view to subsequent recovery of the disproportionate-

ly larger amounts outstanding in respect of previous years.

7.

Finally it should not be overlooked (in connection with the

possibility of this claim becoming the subject of a controversy

between His a jesty's Government and the Chinese Government)

that the agreement in queation was never formally ratified on

the Chinese side.

I have the honour to

wita the highest respect, sir,

Your most obedient, humble servant,

(SIGNED) KILES LAMESON.