780
Messrs Moore and Ross as engineers, but there was utter lack of funds, and until the question of capital was placed on a sound basis, much of the present expenditure would be wasted. A loan was necessary and it was the duty of the Chinese Government to decide on this at once and take advantage of the present favourable conditions of the money market.
This morning M. Bapst told me that since our conversation of the 22nd, he had learnt that there is a Belgian proposal to have the amount represented by the unredeemed bonds incorporated in the capital to be subscribed by the three provinces for the construction of the line, with the object doubtless of thereby obtaining a voice in the construction. M. Bapst also stated that no interest has been paid on the unredeemed bonds during the past three years, and that the Chinese, when applied to, deny liability and always refer the Belgians to the American Development Company. In this attitude the Chinese Government are probably relying on Article 17 of the Washington Supplemental Agreement of