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367
Shanghai -Nanking Railway Loan, 34 millions, of which
only 2 millions were to be spent on railway construc-
tion. On the same basis of reckoning the 101 miles
of the Chinese section of the Canton-Kowloon line
should cost about £500,000. In any case a loan of
£2,000,000 was manifestly excessive.
Mr. Campbell thought that £2,000,000 would be
found to be an outside figure, but said that whatever
sum was fixed on would of course be based on profes-
sional estimates, which could scarcely be brought so
low as His Excellency suggested. The Hongkong Gov-
ernment's preliminary estimate for their 24 miles of
line was £450,000, and this estimate, which was not
made by the engineers of the British and Chinese
Corporation, was considered below rather than above
the probable cost.
I do not think any good purpose would be served
by my urging the Chinese Government to declare of-
ficially who is to negotiate the Final Contract for
this railway until hear what the Viceroy of Canton
thinks of the drafts, which I have requested Sir
Matthew Nathan to communicate to him confidentially
ex
through His Majesty's Consul-General.
Copy of this despatch, omitting the portion
which relates to differences with the British and
Chinese Corporation in regard to the Shanghai-Nanking Railway, is being forwarded to the Governor of Hong-
kong.
(Signed)
I have &c.,
Ernest Satow.
through