CO129-337 - Public Offices & Foreign Office - 1906 — Page 79

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yesterday and show how we reckon Loans of lf millions

and 2 millions respectively would work out.

The Board would prefer as we have previously men-

tioned that the Loan should be agreed at not exceeding

2 millions but only so much to be issued as required

which would probably be 1 millions in one or two instal

ments leaving the balance in reserve for developments.

Having regard however to the representation in Mr.

Ross's letter referred to in your telegram that the Chi-

nese would conclude the line was to cost two millions

the Board decided subject to the approval of the Coloni-

al Office to wire you to seek the concurrence of the

Governor of Hongkong and if obtained to make the Loan

£1,500,000 plus the amount to be inserted in Article 7

for the provision of land. Also to insert after line

17, page 6, of the draft Agreement the provision you

will find in Article 2 of the draft Soochow Hangchow

Ningpo Railway Agreement, viz:-

"In the event of the proceeds of this Loan

being insufficient for the completion of the Rail-

way,

the amount of the deficiency shall be provided

by a supplementary issue of Bonds with correspond-

corresponding Net Profit Certificates, such Bonds to

be upon the same terms and subject to the same condi-

tions in all respects as in the case of this Loan".

We hope our Chairman will be able to see the Colonial

Office and that we may be able to wire you early next week.

Yours faithfully,

For the British and Chinese Corporation, Limited.

(Signed)

A. N. Frewer.

Secretary.

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