127
the Commodore regarding the possibilities of creating a
Chinese deep water harbour. My predecessor considered
that the local traffic on the Kowloon Section would alone
be sufficient to pay interest and sinking fund, running and
maintenance expenses" (13th.February, 1905: Eastern No. 88,
page 89). I do not share this view even on the much smaller
capital cost which at that date it was anticipated the
line could be built. Even as a part of the through line to
Canton, Hankow and Peking under the most favourable
Agreement we can hope to negotiate it will have very
serious obstacles to surmount (vide Mr. Scott's Despatch
enclosed in No. 96 paragraph 'd': Eastern 88, page 127) and
I doubt whether under the most favourable circumstances it
will pay its way for very many years
though it
may perhaps bring a great and indirect benefit to the
Colony by preventing another port from becoming a rival to
Hongkong.
7.
The circumstances of today have
therefore materially altered from those which obtained at
the time that the draft Working Agreement was prepared.
As the Loan Agreement has been
(a).
negotiated (with the assistance of His Majesty's Minister,
and Sir M. Nathan) this Government no longer possesses any
hold