This Document is the Property of His Britannic Majesty's Government.]

4

On the completion of the survey of cach 500 miles section, the English Survey Com

will be entitled to make an offer to the Chinese Government to finance andi pany construct and equip the 500-mile section and hand it over ready for traffic to the Chinese Government. But the Chinese Government may decline this offer if they desire, and call for public tenders for same, or make any other arrangements for construction as they may please.

The survey plans will also include careful estimates of the bridging of the rivers to be crossed and all such local information as can be gathered by mapping the country 5 miles on either side of the line that could afford useful information to the Government, and the plans would also indicate the occurrence of coal, gold, or other precious minerals as they might be found.

The plans and documents to be supplied by the Survey Company will include a general map of the country, a plan of the railway on a scale of 1 inch to 400 feet, a longitudinal section showing embankments, cuttings, tunnels and bridges, gradients and degrees of curvature, plans of bridges, culverts and steel trusses, detailed plans showing track construction, plans of stations, workshops and other necessary buildings, types of engines and cars, and all rolling-stock, and any other plans that may reasonably be deemed necessary to the letting of contracts for the construction of the railway, also full and detailed specification stating the quality of materials that should be used, and a detailed estimate of the quantity of every kind of work, with the unit price and total cost.

(

CHINA RAILWAYS,

CONFIDENTIAL.

[18393]

(No. 60.)

(Telegraphic.) P.

No. 1.

Sir Edward Grey to Sir J. Jordan.

LOAN to Viceroy of Wucbang.

Your telegram No. 96 of the 30th ultimo,

311

[June 5.]

SECTION 1.

Foreign Office, June 5, 1907.

Copy of reply of British and Chinese Corporation sent on the 4th instant should be obtained from Mr. Bland.

They must know, before final decision, whether they may state in prospectus, which must define and state clearly object of loan, that loan is authorized and unconditionally guaranteed by Imperial Government, although it is a provincial one.

System of provincial loans is disapproved of by Corporation, Central Railways, and Hong Kong and Shanghae Bank, and His Majesty's Government are likewise not favourably disposed to such transactions.

[2525 e-1]

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