ל .
MR. BRENAN:
The loop-line would have to be built also.
356
MR. KEMP: I was coming to that. about $10,000,000 for some project of mutual benefit.
We thoughtif a loan of
The
*
development of Whampoa would involve the making of a railway to connect with Canton and the building of the loop-line. The development of Whampoa would not benefit Hong Kong directly, but anything which increases the trade of Canton would benefit Hong Kong indirectly. The loop-line would
bviously be of mutual benefit. To have two railway systems in the same province unconnected would be unsound, and the loop-line would also be necessary for the development of Whump on. Naturally a British Chief Engineer and a British Chief Accountant would be necessary, both to control the expenditure of the money as supplied and to sco to the security of the revenue which would be required for the payment of interest and the repayment of capital. It is nocossary on that point to refer to the Cantun-Kowloon loan agreement, which has not boun adhered to. Good faith is essential, and one fuels rather anxious about a new loan. The Whampoa works as con- structed must be the security for the interest and capital of the loan.
That is, the port ae developed would be the accurity.
meaning?
MR. 'CHEN:
Is that your
MR. KEMP: Yes.
:
MR. BRENAN: That need not make Canton anxious, bu long ca
the interest, etc., were paid, we would have no reason to assume control. We have no ulterior object.
KR. KEMP:
The Canton Government could pay off the whole of the loan whenever they pleased.
R. LRENANT:
We feel that the suggestion for the development Wh.mpec should be taken as evidence of our desire to