File No. 5315/28.
Chargé Fletcher to the Secretary of State.
Peking, January 15, 1908.
(Mr. Fletcher reports that an agreement has been signed with an English-German syndicate for the loan of £5,000,000 at 5 per cent for 30 years for the construction of the Tientsin-Chinkiang Railroad, the ownership and control of which is entirely in the hands of the Chinese Government; the north section to be constructed under the supervision of a German engineer, the southern section under a British engineer, and German and British materials to be given preference. States that security is likin revenues of Chih-li, Shantung, and Nanking, and native customs revenues of Huaian; that if the likin taxation is abolished other security will be found, and if likin pledged prove insufficient the collection of same will be placed under the imperial maritime customs. Mr. Fletcher says that China may redeem the loan at any time between the tenth and twentieth year by payment of an extra 2½ per cent interest, and after the twentieth year without extra interest. Adds that the construction is to commence and £500,000 of the loan to be available within six months, the line to be finished in four years.)