Article 11. H.B. Tang Shao-Yi considered that the question of railway telegraphs was an internal matter for relation by the Chinese Government and that this clause was therefore superfluous in the loan agreement. It would, however, find a place in the working agreement to be arranged with the Hongkong Government.
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Article 12. The Chinese representatives agreed that all receipts from traffic should be deposited in the Hongkong and Shanghai Bank, but H.B. Tang Chao-Yi claimed that the usual market rate of interest on the daily balance should be allowed, as in the case of other Chinese Government railways; also, that in the event of large accumulations of profits, the Chinese Government should dispose of the same in the same manner as those of the Northern Railway. Bland undertook to obtain the views of the Bank in the matter, suggesting at the same time, that the procedure adopted for the Shanghai-Nanking Railway should be followed.
Article 13. To discussion.
Article 14. H.B. Tang Shao-Yi stated that the Chinese Government would henceforth charge all railway construction with the proper amounts payable for tael and likin, this also being a purely Government question. No taxes, or stamp fees would be imposed on the interest or revenues of the line. The question of likin on goods carried by the railway was a matter for arrangement under the working agreement.
Article 15. Agreed that the Hongkong and Shanghai Bank's commission of one-quarter per cent is payable on all monies disbursed by the Bank on account of the service of the loan, during and after construction. H.B. Tang Chao-Yi stipulated, however, that in the purchase of sterling drafts to pay the half-yearly amounts due for interest and capital, Chinese Government shall be free to buy in the open market.
Article 16. Considered by the Chinese Representatives to be superfluous.
Article 17