CO129-492 - Governor Sir Clementi - 1925 [12] - 1926 [1-5] — Page 518

years has so far proved an effective bar to

progress. I this connecton I am to invite

attention to the letter from this Dept. of the

31 March 1923.

3. The attitude of the present Govt. of

Canton towards this project is not altogether

clear, but if it is correctly represented by

the public utterances of Sun Fo it would appear

to be thatthe construction of the line must

await the development of the port of Whampoa.

In any event the Canton Govt. must be assumed

to be fully alive to the importanoe attached

by the Hong Kong Govt. to the connection of

the two Railways, and it appears not unlikely

that if the Hong kong Govt were to take the

initiative in proposing a definite scheme teams of a for financing this work, whether by loan or

otherwise, the Cantonese would seize the

opportunity of demanding an embarrassing,

if not wholly unacceptable, quid pro quo.

To this danger must be added the difficulties

attendant on any proposal for the grant of

a loan for railway projects (vide the tel.

sent to the Gov. of Hong Kong, with Sir Austen

Chamberlain's concurrence, onthe 26 March, a

copy of which was enclosed inthe letter from

this Dept. of the 30 March).

*

4. In view of these obstacles, Mr. Amery

feels that no opportunityshould be lost of

allimation endeavouring to arrange by any other means

which may present themselves, for the prosecution

of this important work, which H.H.G. and the

Kong Govt. have striven so long and su

earnestly to secure. A grant for this purpose,

if made fom Boxer Indemnity funds, would

overcome the difficulties attendant on a loan,

Mr.

15195/23

Mr.

Me

7200/26121 (ncy Riations

*Suush)

Mr. E. J. Harding.

Mr. Strachey.

Sir J. Shuckburgh.

Sir G. Grindle.

Sir C. Davia,

Sir S. Wilson.

Mr. Ormaby-Gore.

Earl of Clarendon.

Mr. Amery.

DRAFT.

emalle

499

would be less likely to be refused or be made

the subject of conditions by the Canton Govt.,

and would seem, in short, to provide the best

method of facilitating the speedy construction

of the line. Kr. Amery understands that the

proposals now under consideration for the

allocation of the Boxer Indemnity funds provide,

inter alia, for the grant of assistance to

schemes of railway development, and he concura

in the Governor's view that a portion of these

funds could most appropiately be devoted to

this inexpensive and long-delayed work. In

these circumstances he strongly supports the Governor'a recommendation, and I am to request

that it may receive Sir Austen Chamberlain's

sympathetic consideration.

5. An especially favourable opportunity

for such a grant will occur if, as is under-

stood, Lord Willingdon is prepared to recommend

that assistance should be provided for the

completion of the Canton-Hankow Railway; but

Mr. Amery would wish to impress on Sir Austen

Chamberlain that the construction of the junction

line is of equal importance to Hong Kong whether

or not the Canton-Hankow Railway is completed.

Under present conditions a junction line would

Serve

(Hong Kong to tap a large area of Kwangtung now

only reached from Canton and, given a normal

flow of goods to Hankow, it appears doubtful

whther Hong Kong's sphere of influence could

be substantially increased by the completion

of the Railway. Mr. Amery trusts therefore

that even if the proposal for assistance to

the Canton-Hankow Railways should not be adopted

a grant for the construction of the junction

line will none the less be favourably considered.

/ (DignedAGT GRINDLE

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