—
8
88
J.
ime
PC
+
I might here add that we fully realise the gr at dif-
aum at the ficulties there are in attempting to raise so large present time when money is tight and the prevailing rates of interest high, yet we are anxious not to miss the present oppor- tunity, the result of six months onstant negotiations in Canton. With the present high rate of exchange it took about a "onth to persuade Mr. Tsen and his colleagues to consent to a sterling loan. If this opportunity be missed, it may possible be severa years before it again presents ita:lf and when the line is event- ully built it might not be under British Auspicices and with a British Chief Engineer,Traffic V. neger and Auditor in control.
Our idea is to attempt to mise the loan either through the Consortium, or in London, 17 the aid of the Hongéng and Shanghai Banking Corporation, or through a group composed of the leading British firms interested in the welf re end prosper- ity of Hongkong (Mesars Jardine Matheson and Company, Ltd., Butterfield and Swire, Macinnon, Mackenzie and Company, Reise and Company, Sir Paul Chater, etc.) or through a suplier of railway material such as Mesere Vickers Armstrong and Company,
Ltd.
If the Foreign office disallow that part of the Agree- ment stipulating that supplies of foreign material be of Brit- ish manufacture, it would not be possible to interest firm such as þesara Vickers, Armstrong and Company Ltd., and in any case it would nut be easy to obtain their support, the amount of money required to construct the line being, from the nature of the country to be traversed, large in comparison to the pro- portion of it to be spent in the purchase of foreign imported
material.
Although we might seek the aid of some of the interests named, and perhaps that of the British China Corporation, Ltd., it is not our wish at this juncture to disclose to any of them either the fact that we are negotiating with the Canton Military
vovarnment/
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