THE BRITISH & CHINESE CORPORATION, LIMITED.
ROUGH PRO-FORMA ESTIMATE OF AMOUNT OF LOAN REQUIRED FOR
CANTON-KOWLOON RAILWAY (CHINESE SECTION).
Sult
Seenwele I'm No. 19701]
574
LOAN £1,500,000 at 90.
£ 1,350,000
Deduct Interest and Service of Loan during Construc-
tion, 2 years at 5% and 1%..
150,376
Add Interest on Loan Funds pending Expenditure,
1
say.
1,199,624
34,198
Available for purposes specified below
£ 1,233,822
LAND,
say as a purely arbitrary figure
CONSTRUCTION & EQUIPMENT, 101 Miles.
Engineer's estimate
B. & C. Corpn's Commission,
on materials, say
WORKING CAPITAL say as a purely arbitrary figure
MARGIN
£
100,000
£ 979,659
20,341
1,000,000
100,000
£ 1,200,000
£ 33,822
The question of providing more margin must be considered and as
work is to begin simultaneously with the British section and the Brit-
ish Section is estimated to occupy four years against two years for
the Chinese Section it follows that for two years after completion
the Chinese Section will have to rely entirely upon its own traffic
to pay the interest on the Bonds, failing which the Chinese Govern