CO129-383 - Public Offices - 1911 — Page 537

[This Document is the Property of His Britannic Majesty's Government.]

6.0

CHINA RAILWAYS.

CONFIDENTIAL.

18037 REC

[May 15.]

&

SECTION 1.

REGO 16 JUN 11

No. 1.

531

[18455]

Hong Kong and Shanghai Banking Corporation to Foreign Office.-(Received May 15.)

Dear Sir Francis,

Hong Kong and Shanghai Banking Corporation,

31, Lombard Street, London, May 13, 1911. THE enclosed telegram has just come in from Peking, which will no doubt interest you.

Mr. Addis is out of town to-day, but will be back at the office on Monday.

I have, &c.

A. M. TOWNSEND.

Enclosure in No. 1.

Copy of Telegram from Peking Office, dated May 13, 1911.

COMMUNICATE following to four groups :-

Re our wire of 4th, Imperial Decree 9th May cancels permit to provincial company Hupeh, Hunan, and orders early signature Hukuang Loan Agreement. Simultaneous decree orders resumption by Chinese Imperial Government all main lines, special reference being made to provinces Kwangtung, Szechuan, and orders Yu-chuan Pu to submit immediately scheme for taking over and advance construction. At interview 12th May Sheng requested us submit following proposal for approval groups: Hupeh section Szechuan line to be increased by addition section Iclang to Szechuan boundary. Amount of loan to be increased to 10,000,0001., issued two serios, 6,000,0007, 4,000,0001.; second series, price 95 firm, to be issued solely discretion of groups whenever market favourable. Term of loan, 40 years; redemption commencing eleventh year by annuity 650,0001,, which is covered by present security. Preliminary advance to be raised from 500,000%. to 1,000,000%, to be partially employed in expropriating present provincial company under changed conditions created by edict. Sheng now anxious complete Hankow-Canton Railway, and push construction to Chengtu as soon as possible. We have suggested clause 19 substitute extension for branches in order to secure preference further loan, or whatever alternative loan, 10,000,000, in two series as above, for entire main lines Hankow-Canton, Hankow- Chengtu, to be supplemented by further series on terms to be arranged.

Re foregoing, Sheng is consulting Chinese Imperial Government and promises reply in the course of three days.

Our opinion is, if Chinese Imperial Government decide upon latter alternative suitable arrangement can be made in respect to engineers purchasing agents,

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