CO129-551-4 Canton-Kowloon Railway Working Agreement 16-11-1934 - 5-12-1935 — Page 77

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The Chinese delegates volunteered to promise on

behalf of the Ministry that future surpluses consequent on the increased percentage to be allowed to the Chinese Section

whould be earmarked for the Service of the Loan funds. T

enquired if the Chinese Government would send a note to that

effect to H.B.M. Minister, Peking, and they acquiesced.

At a very early stage in the proceedings the Chief Chinese delegate made it clear that he was not author- ised to discuss the linking up of the Canton-Hankow Railway by a loop line with the Canton-Kowloon Railway. Informally

and unofficially later on he expressed the view that the

Nanking Authorities were not seriously opposed to the link;

in fact they felt it had to come most probably when the

Railway to Hankow was completed. Incidentally he mentioned

that the Canton-Sam Shui Railway was to be extended to

Kwangsai and to be linked with the Canton-Hankow Railway by

a bridge over the Pearl River and that provided an additional

reason for joining up the two termini by rail.

I take the opportunity of placing on record

the friendly attitude and reasonableness of all the members

of the Chinese Delegation. The conferences were free of any shadow of acerbity or acrimony, and each party displayed a

genuine willingness to hear the others point of view. The

suggestion that Mr. Pelham should take part as an observer

was a singularily fortunate one and he more than once tided

the conference over an obstacle. Mr. Walker from the outset

gained the respect of all the delegates for his masterly

grasp of every phase of the issue and for his unfailing

courtesy and conspicuous sincerity. As he is a new comer to

this Government's Service I take particular pleasure in

requesting that the valuable services rendered on this