A

Hong Kong

ALL COMMUNICATIONS

TO BE ADDRESSED TO THE

CROWN AGENTS FOR THE COLONIES,

THE ABOVE REFERENCE AND THE

DATE OF THIS LETTER BEINO QUOTED.

TEL.ADD. "CROWN, LONDON!"

Sir,

Hong Kong.

C. 0.

38

4282

WHITEHALL GARDENS,

LONDON, S. W.

6th February

1908

I have the honour to acknowledge the receipt of

07/ your letter of the 27th January No.1602/1968 and to state

that we shall be prepared to finance the Goverment of

Hong Kong in connection with the Kowloon Railway works by

making such advances at Bank rate varying as may be required

temporarily in advance of the annual reimbursements of

€110,000 on account of the Wuchang Loan.

2. The interest for advances made to the Colonial

Government from the Wuchang Loan Fund has been fixed at

23. 13. 0 per cent which is the rate payable on the Loan

raised by the Colony in order to provide funds for the

Loan of £1,000,000 to the Chinese Government, but any

further advances outside this arrangement would of course

have to be paid for by the Colonial Government at the

rates of interest ruling from time to time.

3. The security for the sums to be advanced by us

should in our opinion consist of a first charge on the

re-payments by the Chinese Government and we would ask to

be provided with some intimation that the repayments are

hypothecated to us for the purpose.

I have the honour to be,

Sir,

Your Obedient Servant

The Under Secretary of State,

&C

&c &C

Colonial Office.

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