CO129-360 - Public Offices - 1909 — Page 174

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hoped that the matter might be speedily concluded, his chief oiset being to proceed at once with the construction of the railway and he saw no reason why why an agreement similar to the Yuchuanpu's r cent loan should not be conclu- ded forthwith, leaving the construction of the line in the hands of the Engineers already engaged by the Rukuang Viceroy

on the recomendation of Mr.Fraser.

I explained to "is Txcellency the essential difference between a loan for the redemption of a line well constructed

profitably working, and a loan for the construction of

and

a new railway, and I stated that, in the opinion of the leading financiers in London and Paris, the results of recent

railway loans had conclusively demonstrated the fact that. in the interests of the Chinese Covernment's credit as well as for the greater scurity of foreign investore, it was desirable that the Chinese government should either agree

to place the construction of the line in the hands of reliable

and responsible contractors or to accept some such reasonable conditions for fax-sedes financial control &c. as were mado in the case of the Canton-Kowloon Railway agreement.

妻

I pointed out that although Imperial (Pinese Railway Ponds now rank high in the Yuropean market, this is clefly due

ade under conditione to the fact that the earlier loans were which ensured efficient construction and economical working, but that it would only need a few object lessons like ose afforded in the results Bf the Tientsin-Pukow and Shanghai- Hangchow-Wingpo loans to cast scrious doubtɛ upon the stability of Chinese Government undertakings, with immediate prejudice to the country's borrowing powers.

Vie 7xcellency Chang perenally admitted the desirability of financial aupervision in the interests of bond-holders, but stated that the introduction of such a condition was

imposable