Translation.

A.L.B.

Note:

H.M.

From

WAI CHIAO

to

XXXXXXXXXX AMBASSADOR

XXXXX NANKING.

15th August

15

5

(received 19th August, 19

sir,

Your

I have the honour to acknowledge the receipt of

Excellency's Not · of 18th July drawing my attention to the fact that the default in the payment of princisal

and interest on the Canton-Kowloon Failway Loan of 1907

had now reached a total of £1,414,876 -16-8d and request- ing that effective measures should at once be taken by the competent departments of the Chinese Government to prevent

a further increase in the amount in arrears, and, if the earnings of the railway were insufficient, to make payment from other sources of revenue.

In reply I have the honour to inform Your Excellency that I duly referred the matter to the Ministry of Railways and am now in receipt of the following reply: -

"As regards the principal and interest payable on the Canton-Kowloon Railway, the Railway owing to shortage of revenues is not able to meet the payments, the

finances of this Ministry are also in a difficult state,

and there is no other source of revenue from which may-

ment can be made instead; for the time being there-

fore the service of the loan cannot be met. This

Ministry is already taking effective steps to sake plane

for the readjustment of the loan, and as soon as a satisfactory scheme is definitely drawn up, we shall at

once discuss the matter with the creditors with a view

to taking the necessary action".

I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

Stamp Signature of WANG CHING-VEI.

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