CO129-470 - Public Offices - 1921 — Page 98

at $21,000,0

is propore to purchase it "with the

Fevercise of ma tact, and privucy" for $12,000,000.

+

The

4 secrecy necessary for such a delicate operation is i: possible

in China

the i

*`mere raising of the necessary loan, apart from

he rain agreement, would speedily become known, rendering the rchasing of the shares by a foreign concern im-

practicable,

On this ground alone the proposal seems to me to be

ruled out of court.

96

Messrs. Loxley & Company's estimate of the commercial poɛnai- bilities of the line is not such as to encourage capitalists, and

labb told me frankly that he did not think it would be possible »tain the necessary money on the terma sugɛented; he considered

Andersing et the only possible method of enticing the necessary ospital to come forward would be for the Central Government to accept full and

He characterized Masera. LOX- unreserved liability for the loan.

ley & Company's claim to 15% of the annual profits remaining after bayment of principal and interest, in addition to acting as buying

•

as preposterous and one which no bondholders would agree to. Mr.Stabb further said that, so far as he knew of the new Con- sortium's plans, no such arrangement by any one Power would be possible in future.

1 understand that the Rongkong Government are merely concern. ed to see the line completed in the interests of the trade of the Colony and are quite indifferent as to ways and meens,

I have the honour to be,

sir,

Your most obedient,

humble servant,

(od:) Herbert Hoffe.

Consul-General,