433
the
A
After certain minor verbal alterations in the text of other Articles, and a general review of the whole contract, Mr. BLAND submitted a summary of the Consulting Engineer's estimates lately received from the board, and basing thereon the opinion that a supplementary loan might be required or additional funds provided by the Chinese Government under the terms of Article 2, asked for amendment of Article 5 so as to provide in such case for a proportionate increase in the Corporation's commuted commission. This, after some discussion, was agreed to in respect of any supplementary loan but T'ANG SHAO-YI declined to accept the condition as applicable to any additional expenditure which the Chinese Government might make from its own funds.
In this connection, Mr. BLAND raised the question of branch lines as a matter affecting the interests of the Bondholders, and of the Corporation respectively, and asked for the inclusion of a clause, similar to that in the Northern Railway Loan Agreement, to provide for the financing and construction of branch lines, when required by the Viceroy, either from the Chinese Government's funds, or by further loans from the Corporation. He pointed out that such lines could not be satisfactorily worked or financed except as part of the main line system, and that it would obviously be to the detriment of the undertaking, as a security, were loans raised elsewhere, or separate administration introduced.
T'ANG SHAO-YI stated that the Chinese Government might be expected to deal with the question of branch lines without prejudice to the interests of the Government Railway, but declined to record any such conditions in the present Loan Agreement - for the same reason he declined to insert a Clause having reference to the Railway working in connection hereafter with the Hankow Canton trunk line.
Finally the price of the Loan was discussed, expressing the opinion that the Viceroy, having fully accepted 95, it was impossible to recommend to the Government an agreement at 98. The matter