284
get £1,350,000, provides not only for the estimated cost of land, construction, and equipment (£1,100,000), but also for the interest and service of the loan during con- struction (£116,178), for working capital (£100,000), and for a margin (£33,822).
As this is the case the Governor does not understand why the further large sum of £500,000 should be added for more margin."
K
Sir M. Nathan is of opinion that very little risk would be run by inserting in Article 1 of the Loan Agreement a sum of £1,500,000 as the maximum amount of the loan, and by providing for its issue in three instalments of not more than £500,000 each.
I am to request that you will bring Sir M. Nathan's views with which, Sir E. Grey is informed, the Secretary of State for the Colonies concurs, to the notice of the Corporation.
Sir E. Grey understands that the Corporation are prepared to make a reduction in the amount of the loan on certain conditions, and are in communication with the Colonial Office in regard to the instructions which are to be sent to the Agent of the Corporation in China on the subject.
I am, &c.,
The Chairman,
45927
British and Chinese Corporation, Limited, 3, Lombard Street, E.C.
No. 193.
F. A. CAMPBELL.
285
plan, though, as you are aware from my despatches of September 22nd, October 6th, and October 18th,* it is the one I have for some time thought the most likely to secure the early construction of the line.
7. I enclose a copy of my notes on the interview. I have sent copies to Sir Ernest Satow and Mr. Scott and have asked the latter to let me know at once if he is approached on the part of the Viceroy with regard to Mr. C. H. Ross going to Canton. That gentleman is due to arrive here to-day from the north.
I have, &c.,
Enclosure 1 in No. 193.
M. NATHAN,
Governor.
PARAPHRASE of Telegraphic Correspondence with His Majesty's Minister at Peking and His Majesty's Consul-General at Canton.
CXXXIII.
GOVERNOR, Hong Kong, to His BRITANNIC MAJESTY'S MINISTER, Peking. (Despatched 11.50 a.m., November 22, 1905.)
The Viceroy has approached the Consul-General regarding the survey of the Chinese section of the Canton-Kowloon Railway, and Mr. Scott proposes that the Viceroy's Secretary should come and see me about it. I think this is advisable. Do you concur?
PUBLIC RECORD OFFICE
Reference :-
minimini TIC.O. 882
6 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
SIR,
(Secret.)
GOVERNOR SIR M. NATHAN to Mr. LYTTELTON. (Received December 30, 1905.)
Government House, Hong Kong, November 30, 1905. IN continuation of my secret despatch of the 3rd November* on the subject of negotiations for the completion of a Loan Agreement and of a Joint Working Agreement in connection with the proposed Canton-Kowloon Railway, I have the honour to enclose, for your information and record, a paraphrase of further telegraphic correspondence with His Majesty's Minister at Peking and His Majesty's Consul-
General at Canton.
2. The telegrams of the 22nd November (CXXXIII. to CXXXV.) originated in a letter addressed to me on the previous day by the Consul-General suggesting I should see Mr. Wei, one of the Viceroy's Secretaries, regarding the question of the engineers for the survey of the Chinese portion of the railway, and more especially as to whether some arrangement could be come to for the loan of the two engineers surveying the Hong Kong section.
3. On receipt of that letter, I communicated with Mr. Dickson, the Manager of Messrs. Jardine, Matheson and Company here, and he ascertained by telegraph that the British and Chinese Corporation had no objection to the two engineers 'being employed as proposed without waiting for the conclusion of the Loan Agreement.
4. Sir Ernest Satow's telegram of the 24th (CXXXIX.) informing me that the Viceroy had received definite instructions to negotiate for the conclusion of that Agreement accounted to me for the Viceroy's move, and as at an interview with the Chief Surveying Engineer, Mr. Bruce, on the 26th, that gentleman informed me that for family reasons he did not wish to remain in China, I decided that, while informing Mr. Wei that early arrangements could be made for the survey, I would make use of the Viceroy's application to press the conclusion of the Agreement with the Cor- poration.
5. The interview took place on the 27th, the Colonial Secretary, Mr. Sercombe Smith, being present, and left me with the impression that the Viceroy not only wanted to get rid of the Corporation, but was now desirous of building the railway with money and engineers lent by Hong Kong.
6. With the knowledge that the Wai Wu Pu had instructed the Viceroy to nego- tiate with the Corporation, I thought it well to give no encouragement to his present
• No. 181.
CXXXIV.
HIS BRITANNIC MAJESTY'S MINISTER, Peking, to GOVERNOR, Hong Kong. (Received 8 p.m., November 22, 1905.)
(No. 21.)
Your telegram, November 22nd. I entirely concur and would suggest informing British and Chinese Corporation.
CXXXV.
GOVERNOR, Hong Kong, to HIS BRITANNIC MAJESTY'S CONSUL-GENERAL, Canton. (Despatched. 9 p.m., November 22, 1905.)
I shall be pleased to see the Viceroy's Secretary re the Canton-Kowloon Railway
on Monday the 27th November.
CXXXIX.
HIS BRITANNIC Majesty's MinisTER, Peking, to GOVERNOR, Hong Kong. (Despatched 5.45 p.m., November 24, 1905; received 7.29 p.m., November 24, 1905.) Your telegram, 22nd November. On the 3rd of November I wrote to the Chinese Foreign Office saying that Sheng would not be acceptable to us as negotiator. I was informed yesterday that the Chinese Foreign Office had told the Viceroy that he must commence the negotiations with the British and Chinese Corporation as soon as possible.
• Nos. 148, 162, and 168.