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Enc. in 1021
THE BRITISH AND CHINESE CORPORATION LIMITED
MEMORANDUM RESPECTING
C.O. 447 TS795
CANTON TO HONGKONG RAILWAY. 1827 JUN 04,
Being invited by the Colonial Office to make a proposal, the British and Chinese Corporation suggested that they, the Corporation, should form a British Company to hold a concession from the Colonial Government of Hong Kong to construct and work the Colonial portion of the Railway and to hold a concession from the Chinese to construct and work the Chinese portion of the Railway, the Concession of the Chinese portion being given in exchange for the surrender of the present (guaranteed) Loan Agreement held from the Chinese by the Corporation. The proposal further suggested that it would be necessary for the Colonial Government to guarantee interest on the capital of the Company holding the two concessions.
The Colonial Office replied that they were not prepared to give such a guarantee and previously they expressed the opinion that the Corporation should seriously consider before surrendering the (guaranteed) Loan Agreement which the Corporation holds from the Chinese Government.
The Colonial Office added that they were prepared to finance and construct their portion of the Railway and then lease it to the British and Chinese Corporation upon terms to be arranged.
The consequential position is as follows:-
(1) The Corporation must float a guaranteed Chinese Loan for the construction of the Railway from Canton to the Kowloon frontier.
(2) To make the communication through to Hong Kong the Colonial Railway must be in some way associated with the Chinese Railway, by direct Agreement with the Chinese, or through the British and Chinese Corporation.
(3) The association of the Colonial Railway with the Chinese Railway should be made dependent upon the Chinese Government agreeing to such managing arrangements as will ensure the railway
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