300/21
There appears to be a significant amount of OCR error in the initial part of the text, making it unintelligible.
... to be inadvisable and unnecessary.
As to the price, considerable discussion took place. Mr. Bland suggesting that no fixed price be named, but that the Corporation agree to pay to the Chinese Government the actual issue price less 6 points.
Kung Taotai was of the opinion that a loan on terms similar to those given by the Hongkong Government to H.E. Chang Chih-tung would be more satisfactory.
H.E. T'ang Shao-Yi held that the expenses of underwriting, flotation, etc., and the Corporation's remuneration would be fully met by a total reduction of 5 points. Bland drew attention to the fact that the Corporation had hitherto received little or no financial benefit from its relations with the Chinese Government and therefore hoped that if the other conditions of the contract came to be amicably arranged to the latter's satisfaction, a quid-pro-quo might reasonably be forthcoming in the form of more liberal terms of remuneration. The Viceroy had suggested 95 as the price, but in the existing conditions of the market, the Corporation's proposals should give the Chinese Government 96 or 97. The question was eventually left for further discussion, it being recognised that its settlement clauses must depend upon that of other clauses in the contract, e.g., the question of profit certificates.
As regards the latter, and the question of control after construction, the Corporation was prepared to waive its rights provided the other conditions of the agreement could be amicably adjusted.
As regards the term of the loan, proposed by the Viceroy at 50 years with the option of redemption after ...
Mr. Bland pointed out the unfavourable effect of so short a term upon bond buyers and suggested that a premium of 2½% be payable upon any bonds redeemed before 10 years.