"In the course of our negotiation and the consequent signing of the agreement, the Ministry of Railways, in a determined effort to rehabilitate oilway credit, has experienced cot siderable gratifeation in having the opportunity to further the friendly elations existed between the Ministry id the British and Chinese Corpora~ tion, and to establish @ new and closer relationship with the China Development Finance Corporation, The very formation of this Committee, being a distinct departure from the past procedures, reflects the said sentiment of mutual trust and ce-operation, "We who serve on the railways: well perceive the "impetus which governs the action taken by. the bankers, namely the Hongkong and Shanghai Banking Corporation, the Central Bank of China, the Bank of China and the Bank of Communic tions, thing more than ordin. ary buiiness considerations. There is present an element of faith, us itis no less a challenge having the nature of a vote of confideness Intrinsle Worth of Bonds "ho present issue, I consider, is of great importance, Far many years we have not had a public issue of railway bonds. We must realize that the subscribing public is well aware of the difference of the price and value of the bonds. The value of the bonds Is not to be measured by momentary price fluctuations" but rather by their intrinsic worth, by which, T mean sound management of the railway and the regular performance of the loan service. Only by a strict adherence to these cond tions will the public be expected to respond instantaneously with their 'Support and subscription, '"T earnestly hope that' the Railway Administration shall function with emciency and economy, and that this Commitice shall discharge its duties with faithfulness to a degree that they would inspire public confidence such as we have witnessed in the when the bonds reached 1 In belief, China needs railways, The opportunities are unique. The pres ent Joan, I'am led to believe, will only be the precursor of many similar investments.
Mr. Davidson's View Mr, Alex Davidson, representing the British and Chinese Corporation, declared that, in his opinion, this was an important day In the history of China.
"It la many years," he added, "since 'a Joan for railway construction hi been floated, and it is an important step. further cementing. the close friendship which has existed between the British and Chinese peoples.
wish to associate myself with Mr. 'Chang in the hope expressed that this loan' will be the forerunner of others under similar conditions, The fact that we have signed this loan agreement and placed the issue on the market, demonstrates very clearly the confidence in which my principals have in the Minister of Railways and the present Government. of China. and 1am sure that my Chinese coldggunes are in full agreement with feel that all will agree with me that this is a very important Loan Agreement and we must see that the railway will constructed as economically and efficiently as _pos~ sible, and that no default occurs in the service of the loan. I feel that we can count upon the hearty cooperation of the staff to carry out the terms of the loan agreement and to make the task of the loan service committee as easy as possible.
four Excellency, I congratulate you again on your' courage, and T feel that, under your guidance, a
Text read from the printed page and cleaned; old type leaves the occasional error.