CO129-331 - Public Offices - 1905 — Page 374

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Shanghai -Nanking Railway Loan, 34 millions, of which

only 2 millions were to be spent on railway construc-

tion. On the same basis of reckoning the 101 miles

of the Chinese section of the Canton-Kowloon line

should cost about £500,000. In any case a loan of

£2,000,000 was manifestly excessive.

Mr. Campbell thought that £2,000,000 would be

found to be an outside figure, but said that whatever

sum was fixed on would of course be based on profes-

sional estimates, which could scarcely be brought so

low as His Excellency suggested. The Hongkong Gov-

ernment's preliminary estimate for their 24 miles of

line was £450,000, and this estimate, which was not

made by the engineers of the British and Chinese

Corporation, was considered below rather than above

the probable cost.

I do not think any good purpose would be served

by my urging the Chinese Government to declare of-

ficially who is to negotiate the Final Contract for

this railway until hear what the Viceroy of Canton

thinks of the drafts, which I have requested Sir

Matthew Nathan to communicate to him confidentially

ex

through His Majesty's Consul-General.

Copy of this despatch, omitting the portion

which relates to differences with the British and

Chinese Corporation in regard to the Shanghai-Nanking Railway, is being forwarded to the Governor of Hong-

kong.

(Signed)

I have &c.,

Ernest Satow.

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