projects are under consideration, the Tientsin Chinkiang
and the Soochow Ningpo lines, and all our attention
143
should be concentrated upon these until they are cleared
off.
In conformity with a promise which he gave to the
Viceroy, Mr.Hillier on his return here saw the Grand
Secretary Na and explained to him the nature and scope
of the loan negotiations at Kankov, Mr.Hillier forvarded
to H.M.Consul General at Hankow an account of the inter-
view, a copy of which is enclosed.
From this it will be
Been that the Board of Finance has assumed control over
provincial borrowing and that their approval is in
future to be a condition precedent to the negotiation
of foreign loana by the provincial authorities.
I am told, however, by a high chinese authority that
the Board is acting merely in self defence. As the
provinces are raising the question of foreign railway
loans and propose to make the Board responsible for
their repayment, the latter naturally wishes to retain
the control of the arrangemente. Na chung tiang,
it
will be observed, stated that there was no objection
in