HC Deb 16 May 1899 vol 71 cc740-1
MR. SCOTT-MONTAGU (Hants, New Forest)

I beg to ask Mr. Chancellor of the Exchequer whether he has received proposals from Mr. Rhodes in regard to the extension of the railway northwards through Rhodesia in return for a guarantee of the interest at three per cent, on the existing £2,000,000 debentures of the Bechuanaland Railway; whether he is aware that Mr. Rhodes has offered as security the existing riot revenue of the railway, amounting to over £100,000 a year, the guarantee of the Chartered Company, and to deposit £300,000 in Consols to meet any possible deficit; whether he is aware that under an existing agreement £20,000 a year has to lie paid by the Imperial Treasury for another eight or nine years, and £10,000 a year also by the Chartered Company to the railway company; whether Mr. Rhodes did otter to relinquish this £20,000 a year from the Treasury in case of a guarantee being given; whether, therefore, the ultimate new risk to the Treasury could not have exceeded £30,000 a year as against the securities offered; and whether it was upon financial or upon political grounds that he refused assistance to this railway through Imperial territory.

Sir M. HICKS-BEACH

I hardly understand why the hon. Member should ask me this question, because I observe that he recently attended a meeting of shareholders of the Bechuanaland Railway at which the proposal of Mr. Rhodes and the reply of her Majesty's Government were discussed. It will be found, as well as our reasons for declining it, in the papers which will soon be issued by the Colonial Office. But I may say that the question does not accurately represent it. Mr. Rhodes's letter did not include an offer to relinquish the £20,000 a year, which for eight or nine years more will be payable by this country; and we were asked to incur a liability of £60,000 a year practically for 73 years. Nor do I think the net revenue of the railway could properly be put at £100,000 a year. Such an; estimate would include the receipts of the first few months, which were entirely abnormal.