CO129-398 - Individuals - 1912 — Page 163

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In addition to this there will still be a balance Gov/13581

of $307,212 when the Wuchang Loan is repaid, to be found for advances made by Crown Agents; also the General Manager estimates that it will cost $641,171 to completa the station, etc. so that there is a grand total of $2,420,773 to find. Omitting for the moment Mr Severn's discussion of the details of this sum (paragraphs 3 to 7 of 13581) I may point out that he wishes to raise a further £250,000 loan to complete the line. Sir F. Lugard in his observations on this despatch, does not want to raise that sum. He would prefer definitely to fix the loan raised to lend the £1,100,000 to the Viceroy of Wuchang which cost about £1,143,000 should be fixed

at £1,250,000 1.9. that only the difference between the actual cost of the loan and the sum of £1,250,000, say £106.067 should be raised, any further liabilities being defrayed from current revenue. I doubt the advisability of this as the amount to be raised would be so small. Mr Severn's sum though small also would probably be not so difficult to borrow on good terms.

My own view is that if Crown Agents can do it the best plan would be for them to advance the money at bank rate varying, as with other funds which they have advanced for railway purposes and let the Colony pay it back by annual instalments, as proposed by Sir F. Lugard in his minute to Council in 10665: i.e. the Colony will have to hypothecate a portion of its revenue for say six years. Sir F. Lugard's criticisms on the detailspf expenditure contained in Mr Severn's despatch (13581) suggest that a portion of the cost

viz

Sa

Laragraph

8 latter at seqq.

13581

20628

viz $42,000 for the station yard and £288,000 for the station might easily be spread over two years and provided for in the Fublic Works Extraordinary Frogramme i.e. out of ordinary revenue.

As regards other details e.g. the Manager's house, we have agreed (Gov/30874) to an allowance of $75 a month; the expenditure proposed is excessive if the Manager'srequirements alone are considered but it may eventually prove a remunerative investment for the Colony. The question of its chargeability to the Loan Account is not very important except as

a matter of correct accounting (and possibly the Military Contribution) but I would suggest that the expenditure on the house and the land on which it stands should be charged to Railway Capital Account.

I don't know that it is essential to settle these details forthwith, but the question of purchase of the land must be settled as the Government have

promised to let the owners know by the 14th June.

I would therefore

? telegraph

detonating. 23 May 12

Gevarne Hong Korodtail abobaron

of /12th April I approve

posal to acquire repugnandi whole of land/required fon station by purchase and

decibel notby exchange of lands. Despatch follows by mail

tote das catch

plefrewer

Kore

? and write, sending copy of the correspondence

with Sir F. Lugard, confirming the tal gram and saying that the Secretary of State is inclined to think that the best way to raise the remainder of the purchase money is, to borrow at Bank rates from Crown Agents

and