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of exchange would come to $429,000. Even if the Colony had to pay up the whole of the guarantee she would I feel sure recoup herself as I have indicated by the sale of land in connection with the Railway.
10.
If such guarantee were given it would of course be necessary to make stipulations for the repayment of any interest paid by this Government during the limited period of the guarantee out of surplus profits in the future over and above interest say at 3%, and also for the reversion of such portion of the line as is constructed in the Colony to the Colonial Government on payment of the difference between the amount paid under the guarantee and the cost of construction of such portion of the line.
11.
It is doubtful whether the guarantee for 5 years would be of much assistance to the Corporation in floating a loan for the construction of the Railway. In such case I venture to suggest that it would be to the advantage of the Imperial Government to likewise guarantee the line for the further period of 5 years. Or, a Colonial guarantee of 10 years backed by the Imperial Government might be given, it being understood that for the first 5 years the guarantee be paid by the Colony.
I have the honour to be,
Sir
Your most obedient
Humble servant,
Acting Officer
19
Administering the Government.
Thu