2
co-operate with foreign engineers to calculate and fix the cost of the work and to check all accounts. Railway materials that are obtainable in China should be compared with similar materials of foreign countries with regard to the cost and should be used if found favourable.
6. As soon as the total cost of the railway has been paid, the Syndicate will hand over the said railway to the Chinese authorities without claiming any other interest.
7. The.Syndicate will on behalf of the Chinese Government maintain a railway
school.
8. The Syndicate will appoint a civil engineer to Ili to survey the proposed railway at a monthly salary of 2001.
9. The Syndicate will undertake to build the railway by themselves, if within 1,000 miles in length, beyond that a loan must be raised for its support.
10. A mining expert is to be appointed to survey the neighbouring mines that proposed railway may pass through.
(The Pauling Syndicate, judging by the name, should be controlled by the famous engineering firm now connected with all railway extension in Africa, and who built the Asia Minor railway from Haifa to the coast.)
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[18294]
No. 1,
308
(June 4.]
SECTION 2.
Hong Kong and Shanghae Banking Corporation to Foreign Office.-(Received June 4.)
Dear Sir Francis,
31, Lombard Street, London, June 3, 1907.
I AM obliged to you for the paraphrase of Sir John Jordan's telegram which you were good enough to inclose in your letter of the 31st May.
I have no hesitation in saying that the British and Chinese Corporation would
"
be in entire concurrence with your proposal to inform Chang that his idea of a subterfuge cannot be entertained, if only on the ground that in issuing a loan they are required to state definitely in the prospectus the purpose to which the proceeds are to be applied.
Yours truly, (Signed) C. S. ADDIS.
[2525 d-2]