CO129-406 - Public Offices - 1913 — Page 374

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Red 26 NOV 13!

HONGKONG AND SHANGHAI BANKING CORPORATION,

31, LOMBARD STREET,

LONDON, E.C.

October 20th, 1913.

Dear Sir Walter Langley:-

Yuet-Han Railway Company Loan $500,000.

I enclose letters from the French and German

Groups, suggesting that the recent advance by the Bank of

$ 5 lacs to the Yuet Han Railway Company constitutes an

infringement of Article 19 of the Fukuang Loan Agreement,

which stipulates that the four Groups shall share equally

in the supply of any foreign capital required for the

extension of the main line from Wuchang south to Canton.

The immediate object of the advance is the

payment of interest on the Loan made by the Hong Kong

Government to Chang Chih Tung in 1905 to enable him to

redeem the Canton-Hankow Railway from the Americans.

As a consideration for this Loan in a note dated

9th September, 1905, Chang Chih Tung gave to Consul-General

Fraser an assurance that 'British financiers should have

the

Sir Walter Langley, K.C.K.G., C.B.,

Foreign Office.