CANTON-KOWLOON RAILWAY,

MINUTES OF MEETING (the 3rd) HELD AT THE WAI WO PO ON

THURSDAY 25th, OCTOBER AT 2.30 p.m.

435

7.00

Present:-

T.S. Pang Shao-Yi

Cung Hanil and in Ti

representing the Viceroy

of Canton.

Mr. En, Secretary to the Wai Wu Pu, and

Mr. J.O.P. Bland, representing the British and

Chinese Corporation Limited.

With reference to the question of sterling exchange,

MR. BLAND stated that he had not yet received a reply from the Chief

Manager of the Hongkong and Shanghai Bank to whom he had referred the

matter. He had, however, seen the Manager in Tientsin who had expressed

the opinion that, as the arrangement provided for in the present

contract, and all others now in force, had worked without disadvantage

to the Chinese Government in the case of the Northern Railway, and as

the new condition now proposed would certainly create unfair and

artificial competition by the Bank's rivals, the Bank was justified in

refusing to accede to it.

Later in the course of the meeting the Chief Manager's

reply was received stating that the Bank could not accept the proposed

change in the contract, but was willing to concede an option available

at any time within six months previous to each date of payment. After

considerable discussion T.S. PANG SHAO-YI stated that, if the Bank

would agree that the local currency sufficient to meet payments might

be made to the Bank at the option of the Viceroy, either at Hongkong

or Canton, the Clause would be allowed to stand otherwise unamended.

He explained that as the receipts of the railway had to be paid to

the Bank, it was reasonable and necessary that the latter should have

an agent at the place where the railway's Head Office was situated,

Canton, and that this agent should be in a position to transact

ordinary banking business. The Chinese Government wished to avoid having to

forward...

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