such lines could not be satisfactorily worked or financed except as part of the main line system, and that it would obviously be to the detriment of the undertaking, as a security, were loans raised elsewhere, or separate administration introduced. H.E. T'ANG SHAO-YI stated that the Chinese Government might be expected to deal with the question of branch lines without prejudice to the interests of the Government Railway, but declined to record any such conditions in the present Loan Agreement for the same reason he declined to insert a Clause having reference to the Railway working in connection hereafter with the Hankow Canton trunk line.
Finally the price of the Loan was discussed, H.E. expressing the opinion that the Viceroy, having fully expected 95, it was impossible to recommend to the Government an agreement at 93. The matter was fully discussed. MR. BLAND observed at the outset, that he had received instructions from his Directors to state that the outlook of the money market, with bank rate at 6% was very uncertain; that it would therefore be necessary to include in the agreement a Clause, similar to that in the Northern Railway contract, providing for extension of time or amendment of price in the event of unfavourable conditions for the issue of a Loan prevailing at the time of the issue of the prospectus. Subject to this condition the Corporation would be willing to offer 93¼, transferring the preliminary expenses to construction account. Eventually, on the understanding that the matter would be considered and decided at a meeting to be held on the 25th instant, MR. BLAND undertook to raise the price to 94 for the agreement as at present drafted. He took occasion, however, to point out that the uncertainty for some time past existing in regard to the finances etc., of the Shanghai Nanking Railway, could not...
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