32
The Chinese Government, he continued, fully recognis-
ed the binding force of these engagements, but it must
be borno in aind that the question of their fulfilment
only arose when it had been demonstrated that Chinese
capital was insufficient for the enterprises in question.
The Viceroy must therefore begin from that starting point
if he desired a loan for railway construction. He must
represent to the Government the amount of native capital,
if any
at his disposal, and the amount required under
loan from abroad. I had informed His Excellency in the
course of conversation of the lines upon which negotia-
tions had proceeded with the Viceroy, and had touched
upon his objection to French participation and his wish
to make the loan for public works in Hure1.
As regards French participation there appeared to be
no objection on the part of the Wai Wu Pu; but they
declined to express an opinion offhand as to whether the
application by the Viceroy of funds raised nominally for
"public works* to railway construction, would be approved
by the gentral Government. As to this point they could
not