Railway-building in South China, outside of French territory, began with a line from Canton to Hankow which was projected in 1895 by Senator Calvin S. Brice, William Barclay Parsons being the engineer. The usual governmental difficulties were encountered, but in 1902 an imperial decree gave the concession to the American-China Development Company. American capital was to finance the road, though with some European aid. The company had the power, under its concession, to issue fifty-year five per cent. gold bonds to the amount of $42,500,000, the interest being guaranteed by the Chinese Government. The main line will be 700 miles long, and branches will increase the total mileage to 900. On November 15, 1903, a section ten miles long from Canton to Fat-shan was formally opened for traffic in the presence of the Hon. Francis May, colonial secretary and registrar-general of the Hongkong Government, a large number of Europeans and Americans, and immense crowds of Chinese who manifested their excitement by an almost incessant rattle of fire-crackers. By October, 1904, trains were running regularly to Sam-shui, about twenty-five miles beyond Fat-shan. This is a branch line. The main line will run on the other side of the West River. In 1905, the government decided to complete the line itself and cancelled the concession, paying the company as indemnity $6,750,000. A line from Kowloon to Canton has been planned for some time and it is likely to be hastened by the announcement in the South China Morning Post, May 12, 1904, that an American- Chinese syndicate had obtained a concession, granted to the authorities of Macao by China through a special Portuguese Minister, to construct a railway from Macao to Canton. The syndicate hopes to secure American capital and the British merchants of Hongkong are a little nervous as they think of the possibility of an independent outlet for the Canton-Hankow Railway at Macao. It will thus be seen that if these vast schemes can be realized there will not only be numerous lines running from the coast into the interior, but a great trunk line from Canton through the very heart of the Empire to Peking, where other roads can be taken not only to Manchuria and Korea but to any part of Europe.