CO129-566-3 Canton-Kowloon Railway 4-4-1938 - 20-1-1939 — Page 3

3

15/16 2 To

To F.D. (w/e 1). comsy

16.5.38

tel 132

3. you.

21-5.38

Infos Canton- Kowloon Rly have regsett loan of 100,000 dollars. Regsts early decision

for Eccularly

I vow

The Chinese section of the Canton-

Kowloon Railway has requested a loan from the

British section as assistance in meeting

obligations to bondholders. There is security

for this in the funds collected by the British

section on behalf of the Chinese.

Normally speaking I suggest that in

a matter of this kind the Chinese Railway

should have recourse to a bank or some other

credit institution for a commercial loan, and

we might agree with the Financial Secretary

that the loan should not we granted, particularly

as it might lead to a larger request in future.

The present circumstances, however,

make this loan a political matter, and I

suggest that even at some slight commercial

risk we should endeavour to give what assistance

is possible to the Chinese in this matter,

the fact that the owl. While the Chinese section might well endeavour

Caution Rackway

the mam wenu

ruffles →→

munitions to the Chinese youth

I doubt This very much

to obtain aid from the banks in the first place,

tnis request might to some extent be backed by

the British section of the Railway, and in the

last resort I venture to suggest that it is

desirable that the loan should be granted by

the Railway itself.

?