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1923
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The Hongkong Government, under Mr. Claude Severn Officer Administering the Government asked for per- mission on August 9th, 1922, to make a public loan of $3,000,000 to the new Canton Government which it was hoped would soon replace Sun Yat an's régime, suggestion was concurred in by Sir R. Stubbs, who was on
leave.
This
It was pointed out to the Colonial office by this
Department that the proposal could not be entertained,
as, apart from the political objections which had al-
ready been referred to on a previous occasion, a loan
of this nature would be a matter for the Consortium.
The Hongkong Goverment (Kr. Severn), on a threatened default in payment of the 1922 November instalment of the
Canton Kowloon railway loan, proposed on November 15,
that they should be given authority to negotiate the
taking over of the whole line by the Hongkong Government
which would entail their complete control of the portion
of the line running over Chinese territory.
In the meantime the default was averted, but the
Colonial Office were told by this Department that the
proposal, which would involve a most hazardous experi-
ment, could not be entertained as it would, apart from
other objections, cause other Powers to suspect a desire
on the part of the Hongkong Government to encroach on
neighbouring Chinese territory from political motives.
On January 6th, 1923, Sir R. Stubbs telegraphed
that Chen Chiung Ming's forces were about to be defeated
by Sun Yat Sen's and that the former was hard pressed
for...
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