{
652
with Sir Yathew Nathan, he seemed to think that the Hongkong section might be built more expeditiously and possibly the Chinese section might take a little longer than anticip ated, in which cuss the opening of the two sections would come nearer
together than at present we expect.
The Chinese however may not raise the question at all, and in order to prevent further delay in commercing this line, the Corporation's present feeling is to fill in two millions
as the amount hich the loan is not to exceed. The importance
of filling in a safe figure is that the Agreement specifies a
maximum amount, but does not provide for what is to be done in
the event f the loan proving insufficient, and in this case
t is not only the completion of the line which has to be provi- ded for but also the provision of the working capital from time
to time and for improvements. Therefore as they view the situation at present they think two millions should be provided for, but of course they would not think of issuing it all in
the first instance. Another point hich may or may not be
worthy of consideration is the probability that the Chine
would value their proposed partnership with Hongkong more
easier highly and prova sefer to work wit heraufter if they found from
a short experience that their own section of the railway was
by itself unprofitable.
lat
With regard to section 16 this is a clause or which T
anticipate much discussior. Our own experience however in dealing with Chinese officials is to ask for more than we expect
and to get, so as to leave a margin for concessions later on,
possibly the Colonial office in passing this clause held
Somewhat similar viWB,
Engineer's
I have ired to Hongkong for the K's report on the
G
I reposed