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forward the railway receipts at its own risk to the Bank at Hongkong.
MR. BLAND undertook to telegraph again in the matter.
Referring to Article 9, MR. BLAND stated that his instructions and adherence to the basis of negotiations provided in the Northern Railway Agreement made it necessary to stipulate that, if Loans were hereafter required for branch lines, they would be financed by the Corporation; a definite understanding on the point was essential because the possibility of raising funds in other quarters for, and on the security of, branch lines would certainly prejudice the Railway as a security, necessitating complicated accounts and separate administration. H.K. T'ANG SHAO-YI declined to accept the clause as drafted. After full discussion of the point, it was agreed that in the event of branch lines being constructed, the Corporation would be given the first option of tendering for any loan required.
At the request of KUNG TAOTAI and to meet the objections of the Viceroy of Canton, an amendment was made in Article 12, having reference to the Corporation's remuneration as trustees, whereby the necessity and justice of this new condition are stated and explained.
KUNG TAOTAI suggested that the remuneration in question should commence only upon completion of the line, but H.K. T'ANG SHAO-YI concurred in the view that it was properly due upon the issue of the Loan.
In regard to the price of the Loan, MR. BLAND read a telegram received yesterday from his Board to the effect that, in consequence of the unsettled state of the market, it would be necessary to stipulate that the price of the Loan should be governed by the quotations for other Chinese securities at the time of its issue; the present price of the Northern Railway Loan, deducting interest, being now only £98.10, and other Bonds having similarly fallen. Under these circumstances, H.K. T'ANG SHAO-YI suggested the advisability of postponing the conclusion of the Agreement, but after full explanation and discussion of the situation, it was decided to be generally advisable to come to a decision which, in the event of the market conditions...