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a definite scheme for financing this work, whether by
means of a loan or otherwise, the Cantonese would
seize the opportunity of demanding an embarrassing. 495]
if not wholly unacceptable, quid pro quo. To this
dancer must be added the difficulties attendant on
any proposal for the grant of a loan for railway
projects (vide the telegram sent to the Governor of
Hong Kong, with Sir Austen Chamberlain's concurrence,
on the 26th March, a copy of which was enclosed in the
letter from this Department of the 30th March).
4. In view of these obstacles, Er Amery feel
that no opportunity should be lost of endeavouring to
arrange for the prosecution of this important work by
any alternative means which may present themselves.
A grant for this purpose, if made from Boxer Indemnity
funds, would overcome the difficulties attendant on a
loan, would be less likely to be refused or be made
the subject of conditions by the Canton Goverment,
and would seem, in short, to provide the best method
of facilitating the speedy construction of the line.
Mr Amery understands that the proposals now under
consideration for the allocation of the Boxer Indemnity
funds provide, inter alia, for the grant of assistance
to