Article 17.
Article 18. A reasonable time limit to be conceded under the conditions stated, its period to be a matter for amicable arrangement between the Corporation and the Chinese Government.
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Article 19. H.E. Tang Shao Yi observed that the freight charges etc. are matters to be regulated by the Director General of the Railway in consultation with the Traffic Manager and Engineer-in-Chief, and that the final arrangements are a matter for discussion and inclusion under the working agreement.
Article 20. Mr. Bland pointed out that this clause as drafted by the Viceroy would be prejudicial to the Chinese Government's interests, inasmuch as the investing public would not be likely to buy bonds under the conditions proposed. He suggested that a premium of 4 per cent be paid on all bonds redeemed before the lapse of 25 years. This question was left open.
As regards the method of repaying the capital, Tang Shaoyi explained that the Viceroy's intention is to redeem the bonds in 40 drawings, one each year after the tenth year.
Article 21. Not discussed.
Articles 22 & 23. Mr. Bland pointed out that the Loan Agreement would not be possible in England if the Chinese text were authoritative, nor could it be signed before the issue of the sanctioning Edict.
The Canton Viceroy's proposals having now been discussed seriatim,
MR. BLAND observed that if the existing difficulties regarding price and commission on materials could be met by the Chinese Government's endorsing the Canton Viceroy's fair and reasonable conditions, the conclusion of the agreement should not entail any great delay; if not, he...