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may be required for the Railway Account will be supplied

in advances at Bank rate.

5. As regards the local expenditure on the Kowloon

Canton Railway I would suggest that as it has been decided

that the cost of the Railway shall form a charge against

the repayments &c. made by the Viceroy at Wuchang you

should keep us informed periodically say at the end of

each month of the amount of the local expenditure on the

Railway, and upon receipt of this information we would

charge similar sums to our Railway Account and credit the

Hong Kong General Account with the amounts.

6. By this means the General Account will be kept in

funds to the extent of the local Railway expenditure and

the Colonial Government will to that extent be relieved

of the necessity of remitting to us for general requirements.

I have the honour &c.

(Sgd) E.E. Blake.

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