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which I would urge in support of the proposal for a guarantee.
If the Railway were built the Director of Public Works who has at my request consulted an Engineer who is at present in the Colony in connection with the Naval Dockyard Extension Works and who is apparently making some enquiries for the British and Chinese Corporation regarding the proposed line of Railway to Canton, estimates that the Corporation would require an area of some 40 acres for the terminus of the Railway in Kowloon. There are only two possible points where the terminus could be placed and at either of them the premium which Government would require would be at the rate of about 30 cents a Square Foot and $450 an acre Crown Rent. This gives a value, capitalising the Crown Rent at 20 years purchase, of $900,000. There are also the Railway Stations in Kowloon and the New Territories to be considered. These would probably all be built on Crown Land which would realise a considerable sum in Premium and Crown Rent. In addition to that the Railway would enhance the value of all property along its route and would lead to sales of Crown Land which at a low estimate would realise at least another $1,000,000 in Premium and capitalised Crown Rent within the first 5 years after the line was opened.
9.
I venture to suggest therefore that it would be a financially sound speculation for this Colony to guarantee 3% on the capital subscribed for the construction of the line for a period of say 5 years after the line had been opened.
The estimated cost of the line is, I believe, £1,300,000 and 3% per annum on that sum at the present rate
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