CO129-322 - Acting Governor May - 1904 [1-5] — Page 772

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We are given to understand that one reason, if not the chief one, why the

concessionaires have hitherto failed to develop this important concession

received from the Chinese Government upwards of five years ago, has been the

difficulty in inducing home investors to place their money in what (owing to

engineering and other difficulties) is presumably looked upon as a somewhat

doubtfuld undertaking.

That the line if so constructed as to pass through the old established

trading centres of the district will prove from the first to be remunerative

here on the spot firmly believe, but itis

is quite conceivable that a contrary

opinion prevails among the investing public in England. We therefore venture to

urge that in order to prevent further loss of time the necessary authority be

obtained for the Hong Kong Government to guarantee for a term of years the

interest on the capital required to construct that portion of the line which wi

will be inside British Territory, the estimated cost being half a million

sterling.

we

88

Failing the raising of the necessary capital by any other means,

would suggest that the line should be constructed by the local Government,

is not infrequently done in other Colonies where railways are found necessary £

for the developement of those Territories.

With regard to that portion of the line extending from the British

frontier to Canton, this being outside the jurisdiction of the Colony, it is

are presumably impossible for the Hong Kong Government to take action, he there-

of the matter and the imperative necessity" fore of opinion that in view of the urgency which exists for ensuring that the

be for long will ocean terminus at the southern end of the trunk line bich traferse the entire length of the Great Empire of Chine be situated in the Colony of Hong Kong, that H.M.Government be approached with a view to granting a guarantee, also

for a term of years, to the investors in this line.

Here again we believe that it will be proved, once the line is in full working order, that a dividend bearing basis will be promptly arrived at. With such facilities as above suggested, there should be no further

delay or hesitation on the part of the existing Concessionaires to proceed at once to the completion of their arrangements and the commencement of the

construction