CO129-452 - Others & Individuals - 1918 — Page 462

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"the financial ability of the promoters named in the draft Agree-

Aent, or any evidence of the existence of the Company called "The

"Hong Kong South Land and Railway Co. Ltd." referred to in the

draft Bill as "the Company" to whom the undertaking is granted or

of any assignment by the promotors to such a Company I am instructed

to inform you that the Government will require such preef and

evidence te be furnished to them within six months from this date,

otherwise the Agreement will be deemed cancelled".

This was the first intimation that the evidence referred

to would have to be furnished by any specified date or there would

be some question of cancelling the Agreement. Needless to say that when this information reached England on October 27th, it caused great distress for it looked as though the work of years and the costs and liabilities involved would be lost. On seeking guidance our advisers strongly emphasised that it should only be necessary

to explain the position to the Hong Kong Government to satisfy them

that in view of the war conditions such a time limitation was quite unreasonable and even if carried into effect it could not possibly be xxxxixixx=x=ff¤¤k upheld by the Home Government to whom the situation would be apparent. Even engineering works of prime

importance and indirectly affecting the war, though well in hand

had bean stepped and new schemes already financed with the money lying at the bank had not been allowed to proceed.

Though the Solicitors in Hong Kong were satisfied that they could get the necessary financial support yet it was essential that they should be able to place before their wealthy Chinese clients interested in the scheme a definite price from an eminent firm for carrying through the work. The whole position was therefore placed before the Oerlikon Co. and a conference was