File No. 893.77/1534
Minister Reinsch to the Secretary of State
Peking , May 23, 1916 .
The Chinese Government has concluded preliminary contract with Carey for finance and construction of 1500 miles railway. Construction commission of 8%; American company also to have control over operation during life of bonds, 50 years, receiving one-fourth net earnings. The agreement is an important departure in Chinese railway practice, indicating readiness to allow foreign capitalists greater share in control and proceeds, thus giving them a more direct continued interest in welfare of enterprise. Carey proceeding to New York.