3
15/16 2 To
To F.D. (w/e 1). comsy
16.5.38
tel 132
3. you.
21-5.38
Infos Canton- Kowloon Rly have regsett loan of 100,000 dollars. Regsts early decision
for Eccularly
I vow
The Chinese section of the Canton-
Kowloon Railway has requested a loan from the
British section as assistance in meeting
obligations to bondholders. There is security
for this in the funds collected by the British
section on behalf of the Chinese.
Normally speaking I suggest that in
a matter of this kind the Chinese Railway
should have recourse to a bank or some other
credit institution for a commercial loan, and
we might agree with the Financial Secretary
that the loan should not we granted, particularly
as it might lead to a larger request in future.
The present circumstances, however,
make this loan a political matter, and I
suggest that even at some slight commercial
risk we should endeavour to give what assistance
is possible to the Chinese in this matter,
the fact that the owl. While the Chinese section might well endeavour
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munitions to the Chinese youth
I doubt This very much
to obtain aid from the banks in the first place,
tnis request might to some extent be backed by
the British section of the Railway, and in the
last resort I venture to suggest that it is
desirable that the loan should be granted by
the Railway itself.
?