abundantly clear the government could not and would not by the

V

success in Chinese territory; out perhaps

409

is the new territory, but

but arrange that. When bails are substantial net gains, the amount paid to the colonial government in guarantee a interest,

an

for safety's sake we might insert some clause and the original value of the land conceded shall purchase powers

be gradually repaid. Indeed I would go further that Mr. Resnick contemplates the gave put of the link behind

I would guarantee also interest on the Chinese

the Chinese gov't. - ment funding the corporation or company the same terms, because I do not doubt that such land as is required for the railway his British territory free of expense and of the thank mae strongly than Sir M. Nathan does,

our money will come back to us, and buying private land for the fusion

On the other hand, if you will look at para that the whole must be treated as men's

of £290, you will see that Mr. Nathan considers it possible

as one transaction. -plate's and having full value for one land.

You will see what Sir M. Nathan has said to

Mr. Resnick on the subject, in the former's memo. On the whole I am inclined to think that we should guarantee 3% interest on the cap for the British Section of the line, including "such capital as will pay interest while the line is being made for say 10 years, land free such from

18

? Write on these lines to Mr. Keswick in the first instance C.P.d.

16 April

Sir M. Nathan does not quite agree with the above & perhaps you would

talk to him about it

CPL.

I do not question the importance of

affording

land as is required getting this Railway built for the policy of taking no

the fear of Hong Kong people of in no way meddle in the

support, but it serves were that the 2. if necessary supplement, it by giving the comp the preference for making branch lines, if any

the

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