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(3) The general terms of such agreement to be arranged between the representatives of the Colonial Government and the Corporation;
(4) Negotiations then to be opened with the Chinese Government by the Corporation (with the assistance and support of the Colonial Government) for the final Loan Agreement for the Chinese section, such agreement being on the lines of the Shanghai-Nanking Loan Agreement, but modified so as to meet the different circumstances and to admit of the proposed joint working agreement;
(5) The Construction Article of the Final Loan Agreement to be as follows:---
"The railway shall be constructed, whether departmentally or by a contractor or contractors to the specification of the consulting engineers to be nominated by the Corporation and appointed and paid by the Board of Commissioners; and whereas the Colonial Government of Hong Kong are about to construct a British Colonial Government railway from the port of Hong Kong to the frontier of British Kowloon with the object of connecting with the Chinese railway at the frontier of Kowloon, the Chinese Government hereby undertakes on the ratification of this Agreement to enter into an agreement in the terms of the draft set forth in the Schedule hereto, with the Colonial Government of Hong Kong providing for the connection of the two railways when completed and for the working of the two railways on the joint behalf of the said Governments;
(6) The general conditions of the joint working agreement to be as follows:-
"(a) The agreement to become operative on the completion by the two Governments of their respective sections; provisions as to time, cost, and design, etc., to be inserted.
(b) The Colonial Government to provide the necessary capital for working the joint railway and to provide and own the necessary rolling stock for the same.
Note A. This provision is designed to facilitate the efficient working of the line and development of traffic and avoid Chinese obstruction.
Note B. The right of the Corporation to a commission on materials supplied to the Chinese section during the continuance of the loan to be protected.
"(c) The joint railway to be operated and controlled by a Joint Board of Management consisting of members, of whom - shall be appointed by the Colonial Government, - by the Chinese Government, and - by the British and Chinese Corporation, the duties, powers, and remuneration of the Joint Board of Management to be specified in the agreement, and be subject to modification by the Chinese Government and the Colonial Government by agreement.
"When all the bonds and net profit certificates have been redeemed the right of the British and Chinese Corporation to appoint representatives on the Joint Board of Management to cease, and the number of members constituting that Board to be reduced accordingly.
"(d) On the agreement for the connection and working of the joint railway becoming operative, the powers and duties of the Board of Commissioners to be constituted under Article 6 of the Loan Agreement to be suspended except for the purpose of receiving and dealing with the share of net revenue to which the Chinese railway may be entitled, and which after providing for the service of the Loan shall be appropriated as provided in Article 12 of the Loan Agreement.
"(e) The net revenue of the joint railway to be divided half-yearly between the Colonial Government and the Chinese Government in proportion to the capital of the respective Governments employed in the construction and working.
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B 2