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19795
RECO
THE BRITISH AND CHINESE CORPORATION
E-WO,
PEKING.
April 17th, 1905.
Dear Sir Ernest Satow:-
In accordance with your request I enclose
a copy of the rough estimate of amount of loan re-
quired for the Canton-Kowloon railway.
In this esti-
mate you will observe the nominal amount of the loan
is placed at £1,500,000, but the Chinese would actual-
ly get only £1,350,000. In previous railway loans,
as far as I am aware, nothing has ever been provided
for working capital" or "margins, whereas in the en-
closed estimate, in order to comply with clause 10 of
Schedule and leave a margin for contingencies these
amount to £133,822, a sum almost sufficient to provide
for the two additional years interest which may be re-
quired in the event of the Hongkong section taking
four years to build. In discussing this matter with
Sir Mathew Nathan, he seemed to think that the Hong-
kong section might be built more expeditiously and
possibly the Chinese section might take a little
longer than anticipated, in which case the opening of
S
the