CO129-483 - Others & Individuals - 1923 — Page 220

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The Hongkong Government, under Mr. Claude Severn Officer Administering the Government asked for per- mission on August 9th, 1922, to make a public loan of $3,000,000 to the new Canton Government which it was hoped would soon replace Sun Yat an's régime, suggestion was concurred in by Sir R. Stubbs, who was on

leave.

This

It was pointed out to the Colonial office by this

Department that the proposal could not be entertained,

as, apart from the political objections which had al-

ready been referred to on a previous occasion, a loan

of this nature would be a matter for the Consortium.

The Hongkong Goverment (Kr. Severn), on a threatened default in payment of the 1922 November instalment of the

Canton Kowloon railway loan, proposed on November 15,

that they should be given authority to negotiate the

taking over of the whole line by the Hongkong Government

which would entail their complete control of the portion

of the line running over Chinese territory.

In the meantime the default was averted, but the

Colonial Office were told by this Department that the

proposal, which would involve a most hazardous experi-

ment, could not be entertained as it would, apart from

other objections, cause other Powers to suspect a desire

on the part of the Hongkong Government to encroach on

neighbouring Chinese territory from political motives.

On January 6th, 1923, Sir R. Stubbs telegraphed

that Chen Chiung Ming's forces were about to be defeated

by Sun Yat Sen's and that the former was hard pressed

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