PUBLIC RECORD OFFICE
mudamim
Reference :-
C.O. 882
6 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH——NOT TO
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the British and Chinese Corporation, with the understanding that the final Agree- ment should be arranged when the Shanghao-Nanking Railway contract was settled.
This has now been done, and it is proposed to proceed with the discussion of the final Agreement for the Canton-Kowloon Railway,
This line falls in two parts, one in the British leased territory of Kowloon, and the other in Chinese territory in the Province of Kuangtung. The Government of Hong Kong proposes to construct at its own expense the section within British territory, and the British and Chinese Corporation is prepared to issue, on behalf of the Imperial Chinese Railway Administration, a sterling loan for an amount not to exceed £2,000,000 for the construction of the other section. Their proposals with regard to this loan are that it should be guaranteed as to principal and interest by the Chinese Government, and that the railway, when completed, should be considered as security therefor. Interest would be at 5 per cent. per annum, and the loan would be for a term of fifty years, but it would be redeemable at any time after twelve and a-half years.`
The construction and equipment of the railway to be carried out under the direction of the Imperial Chinese Railway Administration and the British and Chinese Corporation, with a Head Office at Hong Kong, under the management of a Board composed of two Chinese representatives of the Imperial Chinese Railway Administration, two British representatives of the Corporation, and the Chief Engineer.
The Viceroy of Canton would also have the right to appoint an official to report to him on the state of the Railway accounts and the progress of the work.
The line would be, when completed, a first-class railway on the standard gauge af 4 ft. 8 in. The Hong Kong section would be 24 miles long, and the Chinese section 101 miles.
Now it is of great importance that these two sections should be constructed and worked as a single continuous railway, without any break in the traffic, as by this means much expense would be saved to both Governments.
If China agrees to this principle of co-operation it will be necessary for her to enter into a separate agreement with the Hong Kong Government, in addition to the Loan Agreement with the British and Chinese Corporation, with a view to arranging for the joint working of the line when completed.
The general idea of the Hong Kong Government is that, while each Government should provide its own land, and each police its own section, they should both employ the same consulting engineer to control the construction of both sections, which would be begun from both ends at the same time, and completed simultaneously.
When the line approaches completion, a Joint Board of Management would be formed, consisting of six members-two appointed by China, two by Hong Kong, one by the Corporation, and the sixth the General Manager of the Railway. This Board would have charge of all the affairs of the Railway when completed.
145.
arrangements for the use of the money coming into our hands, which cannot be allowed to lie idle.
3. We shall be prepared to make the advances in the first instance at bank rate varying at present 24 per cent.-and to continue them on the same terms as long as we may find it possible to do so. It will, however, be desirable that legis- lative provision for the issue of a loan by the Government of Hong Kong should be made as early as possible, as the financial requirements of many other Colonies have to be borne in mind, and it is, therefore, necessary that we should keep ourselves in a position to suit our financial arrangements to the varying conditions of the money
market.
4. If the Secretary of State should so desire we will draw up the draft of an ordinance providing for the ultimate raising of the money by means of short dated debentures.
23776
No. 114.
I have, &c.,
E. E. BLAKE.
FOREIGN OFFICE to COLONIAL OFFICE. (Received July 8, 1905.)
The Under-Secretary of State for Foreign Affairs presents his compliments to the Under-Secretary of State for the Colonies, and, by direction of the Secretary
of State, transmits herewith copy of the under-mentioned paper relative to China.
Foreign Office,
July 7, 1905.
Name and Date.
DESCRIPTION of Enclosures.
Subject.
...
The Canton-Kowloon Railway.
British and Chinese Corporation, 30th June, 1905
Telegram to Bir E. Satow, No. 104, 30th June
Bir E. Satow, Telegram, No. 128, 5th July
23345/S
SIR,
No. 113.
CROWN AGENTS to COLONIAL OFFICE.
(Confidential.)
(Received July 5, 1905.)
[Answered by No. 132.]
Whitehall Gardens, London, S.W., July 4, 1905. Hong Kong—£1,100,000 Loan.
I HAVE the honour to acknowledge the receipt of your confidential letter of the 30th of June, No. 22272/1905,* and to say that we shall be prepared to provide the advance of £1,100,000 to the Government of Hong Kong which is required.
2. We shall have at our disposal about £250,000 on the 2nd of August, and it would be a convenience to us to make the first advance of £500,000 at that date,
if it could be so arranged, as otherwise we shall have to make other and temporary
No. 110.
SIB,
Enclosure 1 in No. 114.
THE BRITISH AND CHINESE CORPORATION, LIMITED, to FOREIGN Office.
The British and Chinese Corporation, Limited,
3, Lombard Street, London, EC., June 30, 1905. Canton-Kowloon Railway.
In your letter of the 15th instant you were so good as to inform us by direction of the Marquess of Lansdowne that Sir Ernest Satow considered the action sug- gested in our letter to you, of the 9th instant, viz., that His Majesty's Minister should urge the Chinese Government to authorise the Viceroy at Canton to enter into com- munication with our representative, to be inadvisable at the present time.
Under these circumstances it appears to us that until His Majesty's Minister at Peking sees his way to take some action, the presence in Peking of Mr. Ross, our representative, is unnecessary, and we propose to instruct him that he may return to Shanghai, provided His Majesty's Minister in Peking does not consider that his leaving Peking would prejudice the position in any way.
While in Shanghai Mr. Ross would hold himself in readiness to return to Peking at short notice and could reach Peking in seven or eight days.
18885
T