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yesterday and show how we reckon Loans of £1 millions
and 2 millions respectively would work out.
The Board would prefer as we have previously mentioned that the Loan should be agreed at not exceeding
2 millions but only so much to be issued as required
which would probably be 1 million in one or two instal-
ments leaving the balance in reserve for developments.
Having regard however to the representation in Mr.
Ross's letter referred to in your telegram that the Chinese would conclude the line was to cost two millions
the Board decided subject to the approval of the Colonial Office to wire you to seek the concurrence of the
Governor of Hongkong and if obtained to make the Loan
£1,500,000 plus the amount to be inserted in Article 7
for the provision of land. Also to insert after line
17, page 6, of the draft Agreement the provision you
will find in Article 2 of the draft Soochow Hangchow
Ningpo Railway Agreement, viz:-
"In the event of the proceeds of this Loan
being insufficient for the completion of the Railway,
the amount of the deficiency shall be provided
by a supplementary issue of Bonds with corresponding
Net Profit Certificates, such Bonds to
be upon the same terms and subject to the same conditions in all respects as in the case of this Loan".
We hope our Chairman will be able to see the Colonial
Office and that we may be able to wire you early next week.
Yours faithfully,
For the British and Chinese Corporation, Limited.
(Signed)
A. N. Frewer.
Secretary.
ing
rch