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to report the situation to the Board and to convey their reply in due course.
The meeting then proceeded to consider the remaining Clauses of the Canton Viceroy's proposals.
Article 10.
No discussion.
Article 11.
H.E. TANG SHAO-YI considered that the question of railway telegraphs was an internal matter for regulation by the Chinese Government and that this clause was therefore superfluous in the Loan Agreement; it would, however, find a place in the working agreement to be arranged with the Hongkong Government.
Article 12. The Chinese representatives agreed that all receipts from traffic should be deposited in the Hongkong and Shanghai Bank, but H.E. TANG SHAO-YI claimed that the usual market rate of interest on the daily balance should be allowed, as in the case of other Chinese Government railways: also, that in the event of large accumulations of profits, the Chinese Government should dispose of the same in the manner as those of the Northern Railways.
MR. BLAND undertook to obtain the views of the Bank in the matter, suggesting at the same time, that the procedure adopted for the Shanghai Nanking Railway should be followed.
Article 13.
No discussion.
Article 14.
H.E. TANG SHAO-YI stated that the Chinese Government would henceforward charge all railway construction with the proper amounts payable for duty and likin, this also being a purely Government question. No taxes, or stamp fees would be imposed on the interest or revenues of the line. The question of likin on goods carried by the railway was a matter for arrangement under