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one for experts, but that the Viceroy had in his own dra. recognised the advisability of providing for future development of traffic. Questions of construction-must depend upon local requirements, survey, etc., but the decision taken by the Chinese Government might affect the flotation of the loan.

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Article 3. Proposed to delete all reference to the Salt Gabelle and to include the remainder of this Article

uncer Article 1.

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Article 4. B.B. Tang thought that this Article needed little amendment but reference to the additional £500,000 would be unnecessary if it were definitely decided that the Viceroy of Canton would subsrcibe for bonds to that

amount.

Article 5.

Teleted.

Article 6. H.B. Tang Chao-Yi desired the omission of that paragraph which stipulates for reference, in case of disagreement between the Viceroy and the Corporation's representative, to the Vai Tu Pu and Legation

Article 7. No alterations proposed.

Article 6. 1.5. Tang hao-il cesired the omission of this clause, condamming it as unnecessary and conflicting with China's dignity but, after discussion, agreed to recognise the precedent recorded in alisimilar agreements heretofore concluded by China, modifying the wording in one or two particulars.

Article 9. The discussion of this Article was ronowed from the point at which it was left at the lust meeting, but no decision was arrived at, H.3. S'ang holding to the view that the Corporation's rights did not involve res- ponsibility for construction or right to commission

except when acting as agents for materials purc: ased in

England.

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Mr. Bland again pointed out that such a contention

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