1
aua payment of £25,000.
..
203
"Commission on
MR. BLAND observed that the expression
materials" was used, as already frequently explained, for want
of a more adequate p' rase, to signify the remuneration paid
to the Corporation for its general responsibility and services
in the construction of the railway; that the responsibility
Included protection of the bondholders interests by the
construction of a first class line and that if the principle of
com mtation for this remuneration were admitted, it would
not relieve the Corporation of its duty in supervising and con-
trolling the construction. Reard ing the amount of the
commutation he observed that neither on the basis of general
"superintendence and services nor on the accepted usage in railway construction could the commission be limited to foreign importatione. The Corporation had already met the Chinese
overnment in a liberal spirit by waiving its claims to
commission on Chinese produce purchased locally, but it must be evident that if, for instance, half the material could be supplied from Wanyang or Tongshan, the Corporation would still be entitled to remuneration for its services and responsibility
in the construction of the line. He suggested that, on this
basis, the minimum commutation would be £35,000 which is less that 24 per cent on the loan. While considering the system adopted in the Shanghai anking Railway more generally acceptable, the Corporation might be willing to accept such an arrangement with a view to concluding this vexed question.
F.B. T'ANG SHAO YI observed that in the ovent of the Corporation offering acceptable terms as regards the price of the loan, the amount of the commission commutation might be
increased.
At this point the mooting adjourned.
(signed)
J.0.P. Bland
28/IX/06.