55
required for the construction and working of the railway or of any branch lines, whether imported from abroad or from the provinces to the scene of the work, shall be exempted from likin so long as such exemption remains in force in respect of other Chinese Railways. The Bonds of this Loan, together with their coupons and the income of the railway, shall be free from imposts of any kind by the Government of China.
Article 14.
It is agreed that during the time of the construction of the railway, the interest on the Bonds and on any advances made by the Corporation is to be paid from the proceeds of the Loan. The accruing interest from any proceeds of the Loan not used during the period of construction, and the earnings derived by the Chinese Government from the working of any sections of the railway as they are built, are to be used to make up the amount required for the payment of the said interest, and if any deficiency remains, it is to be met from the proceeds of the Loan.
When the construction of the railway is wholly completed, the interest on the Bonds is to be paid from the income or earnings of the railway received by the Chinese Government every half-year on the first day of June and the first day of December.
It is hereby agreed that the amount required for the payment of interest and the repayment of principal, together with a sum of one-quarter of one per cent on such accounts to cover commission to the Hongkong and Shanghai Banking Corporation, who are hereby appointed agents for the entire service of repaying the Loan, shall be paid to them in Hongkong fourteen days before the due dates in Sycee sufficient to meet such payments in sterling in London, exchange for which shall be settled with the Hongkong and Shanghai Banking Corporation at the most favourable rates.
The Chinese Government unconditionally undertakes