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endeavour to make a satisfactory arrangement so as to
avoid loss to either party.
XX. As the Chinese Government is not giving
the land for the railway which this company is build-
ing, and does not guarantee interest on the capital,
they make the following three concessions to the com-
pany:-
(a) The company may make tanks in the
neighbourhood of the line from which pipes may be
laid to supply the water required for the railway.
The company may erect a sanatorium and
(b)
a summer resort in the Hsiang Shan district.
(c) The company may establish schools for
the training of young Chinese as interpreters of Portu-
guese or mechanics, so that on the completion of
their instruction they may be engaged to serve the
company. The places where these schools are to be es-
tablished shall be chosen in consultation with the
local officials.
The land on which it may be proposed to erect
buildings in terms of the above three sections, if pri-
vate property, shall be arranged for with the owner;
if Crown Land taxes shall be paid.
ΧΧΙ.
If the receipts of the railway cover
the expenses and 6 interest on the capital per an-
mum, and also the maximum of 3% per annum to be plac-
ed to the credit of the sinking fund, any money left
over is net profit, and, after deduction of 30% for
the Chinese Government, shall be divided pro rata an-
nually among the shareholders, The sinking fund
shall be continued until the whole of the capital has
been redeemed.
As regards the method of ascertaining
the amount of the capital, the company's accounts and
the total of the yearly statements issued by the com-
pany for the information of shareholders, shall be
taken as a guide.
XXII.
If on the expiration of fifty years
from the date on which traffic commences the sinking
fund shall be sufficient to redeem the entire capi-
tal, then the railway and all buildings belonging to
it shall revert to the Chinese Government without
payment. Should the fund be insufficient to redeem
the capital, the Chinese Government shall arrange
with
if