No. 184.
C. O.
23637
PECS
34
(REG 4 JUL 04)
Peking,
May 11th., 1904.
My Lord,
With reference to my Despatch No. 188 of April 11th. mentioning a suggestion of the Hongkong Chamber of Commerce that the Canton-Kowloon Railway might be constructed with the aid of a guarantee of interest by the Colony of Hong-kong, it seems worth while to recall the terms granted by the French Colony of Indo-Chine to the Company formed to construct the line from Laokai to Yunnan-fu, which has been conceded by China to the French Government.
The Capital of the Company is fixed at 12,500,000 francs, and the Colony makes a free contribution of an equal sum in cash. In addition the Colony guarantees interest on the bonds to be issued by the Company up to an amount of 8,000,000 francs. Further, the Colony engages to construct the line from Haiphong to Laokai, and hand it over to the Company with rolling-stock complete. The Company on its side has to construct and equip the workshops, to furnish the stations and provide the tools for maintenance of the line, in return for a payment by the Colony of 5,000 francs per kilometre completed.
Bonds for the Laokai-Yunnan-fu line may be issued, as soon as one-fourth of the share-capital is paid up, at a price of not less than 76 francs per 100 francs now in. The paid-up capital will receive 4% interest during the period of construction.
The Marquess of Lansdowne, K.G.,
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