Copy.
(48062)
C.O
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40773
IREC
Red 26 NOV 13!
HONGKONG AND SHANGHAI BANKING CORPORATION,
31, LOMBARD STREET,
LONDON, E.C.
October 20th, 1913.
Dear Sir Walter Langley:-
Yuet-Han Railway Company Loan $500,000.
I enclose letters from the French and German
Groups, suggesting that the recent advance by the Bank of
$ 5 lacs to the Yuet Han Railway Company constitutes an
infringement of Article 19 of the Fukuang Loan Agreement,
which stipulates that the four Groups shall share equally
in the supply of any foreign capital required for the
extension of the main line from Wuchang south to Canton.
The immediate object of the advance is the
payment of interest on the Loan made by the Hong Kong
Government to Chang Chih Tung in 1905 to enable him to
redeem the Canton-Hankow Railway from the Americans.
As a consideration for this Loan in a note dated
9th September, 1905, Chang Chih Tung gave to Consul-General
Fraser an assurance that 'British financiers should have
the
Sir Walter Langley, K.C.K.G., C.B.,
Foreign Office.