CO129-452 - Others & Individuals - 1918 — Page 472

:

THE NATIONAL ELECTRIC CONSTRUCTION CO LTP

3, Laurence Pountney Hill,

TELEPHONE NOS

5329 BANK.

(SUJO BANK.

TELEGRAPHIC ADDRESS:

SWVERHAULED, LONDON"

REMOVED is

82 & 63, QUEE

LONDON, EC. 4

Mau "Phone Nes. CITY 8816/7

REP

W.B.COWNIE, C.A.

MANAGING DIRECTOR.

EAS

WBC/EMS

467

CANNON STREET,

LONDON, 20th June,

1918.

E.C.

ALL BUSINESS COMMUNICATIONS TO BE ADDRESHED TO THE COMPANT,

E. T. Williams

11, The Drive,

Golder's Green,

Esq.,

N. W. 4.

Dear Sir,

HONG KONG SOUTH CONCESSION.

C.O

31351

REC REG 26 JUN 18

I have now had an opportunity of considering the

terms of the agreement which has been arrived at between the

Promotors and the Governor of Hong Kong, and the draft Bill to

authorise the construction of the tramways referred to in the

agreement, and I have no hesitation in saying that the scheme

is attractive and, in my opinion, sound financially, and that

under ordinary conditions, I should have no difficulty in

arranging the finance with our friends.

1

I understood you to say that the completion of the

agreement and passing of the Bill now depend only upon the

Promotore satisfying the Government that the dapital would be

provided. I am afraid, however, that in these abnormal times

it would not be possible to get any responsible financial group

to guarantee capital for a proposition, no matter how attractive,

when the date when the capital could be made use of, is 30

indefinite. Further, assuming that it was permitted to raise

the necessary capital now, the capitalists would certainly have

to be satisfied that the construction of the tramway could be

commenced within one year and completed within three years, in

order to secure the capital provided, and therein lies a difficulty

because in view of the shortage of material necessary for the

construction