CO129-450 - Acting Governor Claud Severn - 1918 [10-12] — Page 200

!

¡

206

(a). The capital must be subscribed as to 50 per centum by Chinese here and in Canton and as to 50 per centum by Europeans; or possibly as to 40 per centum by Chinese and 60 per centum by

Europeans.

The latter propertion conflicts with the Mining Regulations of China but that difficulty can be got over.

(b). The Central Government would never consent to give exclusive mining rights over the whole Province. There would be a popular outcry in Kwangtung against any such proposal if the Central Government were disposed to make it. Mr Liang suggested prospecting licences for a few Districts

say 4 at a time. I

objected that the areas were too small. He suggested the formation of say 3 Companies with prospecting licences for 4 Districts or so to each. I insisted that only one strong Company would meet the case and that prospecting licences for some speciiiea Prefectures would be the least areas that would be of my use to the Company. I enlarged upon the cost of mining operations, the time it would take to prospect and the desirabili, -ty of keeping our compevitors. He contemplated that mining licences would follow on applications after, and as the result of prospecting.

(c). Management, Accounting and Engineering Staff to be under the control of Europeans with Chinese assistants.

A copy of this minute was sent to Sir Paul Chater.

3.

I will endeavour to deal more fully with the subject in another Despatch, and will only remark now that the acquisition of abundant supplies of coal and iron at a moderate cost is essential to the future prosperity of this Colony. The province of Kwangtung can give these supplies and this clony is willing at any time to pay the cost of linking up the Canton- -Kowloon Railway with the Canon -Hankow line in order to

facilitate transport.

4.

A mining expert who has been for some time prospecting for minerals in the New Territories in partnership

with