§ MR. SMOLLETTsaid, he would beg to ask the Secretary of State for India, Whether any decision has been come to upon the application of the Madras Irrigation Company for an advance of £600,000 1285 to enable them to complete their works; and, if so, under what conditions, and with what security for repayment, the loan is to be made?
VISCOUNT CRANBOURNESir, Lord De Grey agreed to advance the above sum in case the whole of that sum should be required for the completion of a certain portion of the canal. The Company will draw on the Government of Madras and the Indian Office Treasury for sums to that amount, which will be a loan bearing interest at 5 per cent, such interest being a first charge on all profits from the canal. The conditions of the loan are—1st. That if within three years from the first of July the canal shall not be thoroughly completed the Company shall convey the whole of their works to the Secretary of State in exchange for Indian Government Five per Cent Stock equivalent at the price of the day to the actual amount of the guaranteed capital invested in those works. 2nd. That before any advance the Company shall obtain powers from Parliament to enable them to carry out the arrangement.