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rights and benefits originally granted to the Corporation in 1898 viz. the right to construct and equip the railway on behalf of and for the Chinese Government. The Tiractors
800
of the Corporation could not agree to such an essential departure from the Nanking Loan conditions, involving
acceptance of terms far less favourable than those in every other railway loan and construction agreement hitherto made by the Imperial Government. The Fallway according to the terms of the concession granted, was a joint enterprise in which the good name and success of the Copporation were directly concerned, to produce results satisfactory to the Chinese Covernment; in this,
&B well
The
as in the nomination of an efficient and capable Engineer-in Chief, the Corporation incurred d rect responsibility and rendered services to the Chinese Goverment and to the bondholders for which in common fairness and by established uaage they were properly entitled to commission. Corporation had consented to the principle that no comm- ission should hereafter be charged on Chinese prodveta locally purchased, but the present proposal was equivalent to cancelling the Corporation's construction rights. Viceroy's proposals on this subject were based on a fair view of the matter, and it was to be hoped that they would be adhered to. The Viceroy had inserted the clause that, on equal terms, British materials should be used, but the proposal to pay commission on these goods only was in itself equivalent to a premium on non-British competition.
The
H.B. ang fhao-Yi cited the Northern Railway § precedent as that which should be adopted. r. Bland pointed out that no construction rights, but only financial arrangements, were negotiated under that agreement, which dealt with a railway already in existence. In the present Case the Chinese Government has granted to the Corporation the right to build and equip the railway under certain
conditions