CO129-365 - Governor Sir Lugard - 1910 [1-3] — Page 453

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of £1,100,000 at a low rate of interest to meet an

emergency when it was a matter of extreme importance to the

Viceroy that the money should be obtained within a very

limited number of days. There is ample evidence to show

that the Viceroy was fully alive to the obligation

he

thus incurred and His Majesty's Minister at Peking has

since when addressing Prince Ching (President of the Wai-

-wa-pu) alluded to this Loan as "an extraordinary act or

friendship on the part of His Majesty's Government"

(enclosure in Despatch of 9th. April, 1909).

A loan to a Foreign Government by

a Crown Colony without Imperial guarantee, was so far as

I am aware without precedent and although some small

financial benefit has accrued to the Colony, it was not

entirely without risk, looking to the precarious finance,

and the possibilities of upheaval in the country in

question. The Colony has, however, refrained from inter-

-polating its own interests, but it will be admitted that

it has a strong claim to their full recognition by China.

4.

A Clause

of the draft Agreement

stipulates that the line shall be joined up with the

Canton-Hankow line. I have learned from various sources

that the Chinese appear to be averse to this connection.

I