1)
[This Document is the Property of His Britannic Majesty's Government.]
0.0 31859
Rege 25 SEP 09,
CHINA RAILWAYS.
CONFIDENTIAL.
[33306]
No. 1.
485
[September 2.]
SECTION 1,
Question asked in the House of Commons, September 2, 1909.
Mr. Ginnell,-To ask the Secretary of State for Foreign Affairs whether the Chinese Government have, under pressure from the British Government, become contributary to the payment of 5 per cent. per annum interest on a loan of 1,500,0007. for the construction of the Kowloon Railway, which they know can never pay; sole guarantors for a loan of 3,000,0001, at 5 per cent. interest for the Shanghae-Nanking Railway, which is being worked at a loss to them of 101,000%. per annum; solely responsible for the working expenses of the trafficless railway built by the Peking Syndicate, in addition to paying 35,0001. a-year interest on the bonds for it; whether the Chinese Government always disapproved of the making of each and all of these railways and wanted railways made elsewhere; and, in a country where railways are so necessary and would be beneficial to China and to investors if made in right places, whether British influence will in future be directed to securing this latter condition.
Answer.
The Chinese Government promised the concession for these railways eleven years ago. The actual terms on which these lines have been or are being constructed were settled by amicable agreement with the Chinese Government. There is, so far as I am aware, no ground for the allegations implied in the question that the Chinese Government are dissatisfied with the terms or the railways, or that the railways are in districts where they are not required and could not be made profitable.
[2413 b-1]