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VICEROY OF CANTON' PROPOSALS as made on 29th March 1906
1. To borrow a loan of one million pounds sterling, which is to be
delivered in three instalments.
2. Before the construction of the railway is completed, the Salt
Gabelle of Kwangtung is to be hypothecated for the loan.
3.
Repayments of the principal on the loan will begin as soon as
five years have elapsed after the completion of construction of the
railway.
4. The post of Engineer in Chief for the construction of the railway
is to be filled by an Englishman. The posts of Assistant Engineers
are to be taken up by English Chinese & Japanese who are completely
qualified for the work.
5. Before the entire principal of the loan has been paid off an
Englishman is to be employed to supervise the accounts.
6.
Both the Engineer in Chief & the English supervisor of accounts
are to be recommended for employment by the Creditors and are appoint-
-ed only with the consent and approval of the Director-General.
7. After defraying the expenses for operation, all the receipts from
the railway are to be deposited in the Hongkong & Shanghai Bank,
which deposits will be used to repay the principal and interest of
the loan.
8. In addition to those railway materials procurable in China, simi-
-lar materials may also be purchased from England provided that such
materials are of the same quality and at the same price as similar
materials from other foreign countries.
If the materials from other foreign countries are cheaper in
price and better in quality than the English, they may also be pur-
-chased from such other foreign countries.
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