CO129-551-4 Canton-Kowloon Railway Working Agreement 16-11-1934 - 5-12-1935 — Page 22

His Excellency,

The Minister of Railways,

sir,

NANKING.

30 th April, 1935.

22

CANTON KOWLOON RAILWAY LOAN OF 1907.

I beg to remind Your Excellency that the half-

yearly interest on the above Loan becomes due for payment on

the 18th May next, as follows:-

Interest

Bank's Commission

£27,787.10.0

69. 9.4

£27,856.19.4

As Your Excellency is aware, it is impossible

for the Canton Kowloon Railway to make payment of the amount

due from revenue, and I beg therefore to enquire what measures

your Ministry propose to take to meet the payment on due date.

The arrears in the service of this Loan already

amount to £1,386.17.4, and, with the instalment of interest

due on the 1th proximo, will have reached the very large sum

of £1,414,276.16.8, as shown in the attached statement which I

shall be obliged if your Ministry will confirm as correct.

I beg to remind Your Excellency once again of the

responsibility of the Chinese Government in respect to the

arrears in the service of this Loan. Under Article 4 of the

Loan Agreement, the Government unconditionally undertakes and

promises to pay the service of the Loan on due dates and to

make good any deficiency in the provision for the same, and

I beg to enquire what steps your Ministry propose to take to

render effective the guarantee of the Government and to provide

for the current service of the Loan and the arrears.

/ Trusting