MINUTES.
MINUTES NOT TO BE WRITTEN ON THIS SIDE.
legram
rection follow.
368
PARAPHRASE TELEGRAM from the Officer Administering the Goverment of Hong Kong to the Secretary of State for the Colonies.
Dated 15th November, 1922.
(Received Colonial Office 12.17 p.m. 15th November, 1922.)
The Hong Kong and Shanghai Bank has been informed by Chinese Government that that Goverment is unable to pay £85,500 due November 17th on account of the 1907 Canton-Kowloon railway loan.. As a result the bondholders have the right to take over the entire undertaking. Can authority be given to me to entered (sic) immediately u into negotiations for this Government to take over the whole of the Chinese Government's responsibility to the British-Chinese Corporation? conditionally on:-
(1) its being given complete control of the line; (2) its receiving an undertaking that discriminating
duties on the line will be abolished;
(3) facilities being given for linking up the line
with the Canton-Hankow railway.
The balance of the line is at present £1,368,000,
repayment of this being spread over a period of thirty-five
years.
The Government of Hong Kong has ample resources to meet such a liability and to control the line. If the line were run properly there is every reason to believe
that it would be a profitable undertaking.
The trade of the Colony would benefit immensely by the junction of the line with the Hankow Railway.
SEVERN.