CO129-551-4 Canton-Kowloon Railway Working Agreement 16-11-1934 - 5-12-1935 — Page 53

TRANSLATION.

G.R.T. 28/1/1935. A.L.B.

NOTE.

FRUM

WAI-CHIAO PU

To

H. M. MINISTER.

WANET NO.

XXXXX

22nd January, 1935 (Peceived 26/1/1935)

53

sir,

I have the honour to acknowledge receipt of Your b #zeellenay's Note dated the 20th December, 1984, stating

that the arrears of principal and interest outstanding in

respect of the Canton-Kowloon Railway Loan of 1907 had

reached the total of £1,386,419.17.44 and requesting that

the competent departments of the Chinese Government should

immediately adopt an effective method to prevent the amount outstanding from continuing to scoumulate and, in the event

of the revenues of the railway being insufficient, to make

payments from other sources.

I have the honour to state in reply that the Minis-

try of Hailways, to whom the matter was duly referred, have

now replied as follows:-

#ith regard to the principal and interest due in

"respect of the Canton-Kowloon Railway Town, this inis-

"try have the honour to state that owing to the failure

"of the railway's business to develop and the consequent

"shortage of revenues, the railway is unable to make pay-

"ments, so that the sun outstanding has become progres-

"sively larger. The finances of this Ministry are like-

*wise in extremely narrow straite and at the moment there

"are still no other sources of revenue available from

"which provision for payment could be made instead. This

"Ministry has already taken steps to devise means for the

"read justment of these loan funds and as soon as a satis-

"factory scheme is found, the bondholders will of course

/be