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The Committee are given to understand that Your Excellency has personally taken considerable interest in the projected railway and in this belief are emboldened to address you on the subject.
The reasons for the construction of this railway are so well understood that it would appear to be almost superfluous to recapitulate them, but we would especially urge upon Your Excellency the fact that while it is clearly to the advantage of British trade generally that Hong Kong should be in direct railway connection with the main trunk lines of China, a very serious and probable irreparable blow will be dealt to the welfare of this Colony were Canton first connected by rail with the sea at any other point than through Hong Kong.
There are, we consider, several places outside British Territory at which a terminus could be established, and we have only too good reason to fear that some of England's numerous commercial rivals may not be disinclined to use their influence in striking a blow at our prosperity.
Unfortunately, the Committee have not before them the text of the agreement made with the Imperial Chinese Government for the construction of a railway from Chinese Kowloon (as it was then) to Canton and are in some doubt therefore as to the exact terms of this agreement. We understand, however, that there are certain limitations imposed upon the Concessionaires and that unless these are complied with, the Concession can be cancelled.
The Committee give all credit to the endeavours made by the Concessionaires to raise the necessary funds required for the construction of the line, which we understand are estimated at one and a half million pounds sterling, and are prepared to believe that the difficulties in the way have been of such a nature as to preclude the possibility of the necessary sum being obtained on the home market.
Under these circumstances, we would most strongly urge that representations be made to the Foreign Office with a view to securing the guarantee of the Imperial Government on the capital required, and trust that in view of the importance to British trade in China which the construction of the railway implies, Your Excellency will find it possible to endorse our request and submit the matter for the consideration of His Majesty's Government.
I would...