COPY.

25

TRANSLATION OF LETTER FROM THE MINISTRY OF RAILWAYS TO THE

BRITISH AND CHINESE COPORATION DATED 16TH MAY 1935.

Dear Sirs,

W

We have for acknoДledgment your favour of 80th

ultimo enclosing statement of the outstanding amounts on the

Canton Kowloon Railway Loan. You called our attention to the

fact that the half-yearly interest payment will be due on the

18th instant. You asked us to verify your figures and wanted

us to inform you of our plans of redemption.

In reply to the above, we beg to state that the

business of the Canton Kowloon Line is very poor, and that

owing to insignificant revenues, the Administration is unable

to meet its obligations on this Loan.

Unfortunately, this Ministry is also in a poor

financial situation and is unable to devise any plan in making

advances.

We are, however, trying to reorganize this

Loan and shall keep you informed as soon as definite arrange-

ments are made.

We are, etc.

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