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129
British Government is pledged to support the Anglo-French
Syndicate only, and therefore no loan for construction can
be raised from any other British source, including Hong-
-kong, while the Chinese are equally bound by the terms of
their Agreement to borrow from no other source than the
British. There is thus a complete deadlock. The British
Minister is endeavouring to persuade his French colleague
to give way, and there seems to be a possibility that the
French may agree that the Loan should be made in the name
of the British Syndicate while they preserve their
interests. This has not however been agreed as yet, nor is
it certain how the Chinese would regard the arrangement.
Construction is in the meantime completely blocked unless
the Chinese can raise the funds themselves.
4.
In these circumstances I suggested
to Sir John Jordan that in order not to delay the construct-
-ion of the Line in which this Colony has so great an
interest, it might be possible for me to agree to postpone
for this year the repayment (of £110,000 per annum) due to
this Government from the Viceroy of Wuchang, should he
desire to devote this money to the construction of the Line.
The Loan by this Colony is fully secured, and the interest
at 4 per centum is regularly paid. The postponement of the
payments