CO129-351 - Public Offices - 1908 — Page 433

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regard thereto as laid down in pararraph 2 of the same Art-

icle and in the first paragraph of Article 6. I have already

had occasion to explain to Your Excellency that it is the opini-

on of the engineer-in-chief that the designs for the Sheklung

Bridges require the expert criticism of eminent consulting

engineers. His recommendation is eket in accordance with the

universal practice of "the best modern ayetem" of Railway

construction and this being the case the Corporation would he

failing in its duties as Trustee for the hondholders were it

to acquiesce in any other arrangement. I venture to remind

Your Excellency that while the Railway is the property of

the Chinese Government it is lso the first mortgagesecurity

for the loan, and that its efficient construction is therefore

a metter in which the bondholders are directly concerned.

Finally I have the honour to point out that in accordance

with the te me of the loan agreement, all cases of difference

arising out of the performance of the engineer-in-chief's

duties shall be referred for amicable adjustment between the

Viceroy (or Director general) and the Representative of the

Corporation.

Your Excellency will, no doubt, recognize that the

efficient construction of this railway in accordance with

modern practice is a matter seriously affecting, not only the

Chinese Government's position vis a vis the bondholders, hut

also the credit and reputation of the Corporation; and I trust,

therefore, that Your Excellency may be pleased to reconsider

the question of the appointment of consulting engineers, and

to authorize that the same may be dealt with in accordance

with the recommendations of the engineer-in-chief, which

have been endorsed, I understand, by the Managing Director

and by the Viceroy.

Your Excellency will recognise that delay in obtaining the necessary expert opinion on the bridge designs and materials

will