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I
T.P.Chang r quested that I should also prepare a rough draft
of terms of the loan agreement as acceptable to the Cor-
poration. To this and I suggested, and it was arreed, that
the draft should be in alternative forn; one allowing for
construction cntract, and the other without that condition.
7.3. referred to the fact that "r.Moore and other
employes were under agreement to the Yuen Han Reilway Company
and had no doubt that, having been taken on at the recommen-
dation of Fr."raser, their services would be continued under
any loan agreement that might be made. I replied that m..
Consul General had recommended these men on the understan-
ding that it was the Chinese Government's intention to build
the Railway without foreign capital. While anticipating the
Corporation's readiness to do everything possible to arrange
matters to is Fxcellency's satisfaction, I could give no
a Burance on this point. I thought it unlikely that esrers.
Pauling and Co or other responsible contractors,
wh 090
successful work depends chiefly upon economic organisation
would be willing to employ any but their own trained staff,
As regards the upei division of the Szechuan Railway,
1 is "xcellency stated that t is undertaking remains in the
hands of the provincial authorities. Then he was Viceroy
at Tuchang he had intended to construct both lines under
one foreign loan, but in the present negotiations he ie
concerned only with the Yuch Han trunk line, which the
Government desires to have built without further delay.
In conclusior, 1.2. laid stress upon the presence in Peking of Messrs, Cordes, Odagiri, and Jaact and there world appear to be little room for doubt that these gentlemen hav
boen invited to take an interest in the business, with a
view to stimulating competition.
Mr.Tsong Kuang Yung
observed that as the bonds of the recent Luhan conversion
had