1. the guarantee and mortgage thus given by the Chinese Government it is hereby declared that this Railway is in fact a Chinese property.
All land that may be required along the whole course of the Railway within survey limits and for the necessary sidings, stations, repairing shops, and car sheds to be provided for in accordance with the detailed plans now made or hereafter to be made by the Engineer-in-Chief and approved by the Viceroy shall be acquired by the Viceroy at the actual cost of the land, and shall be paid for out of the proceeds of the Loan.
The titles of the land for the Railway and all other lands shall be free from all encumbrances and entanglements and shall from time to time, as soon as secured, be registered in the name of the Railway.
Notices of all purchases of lands for the Railway within the survey limit (together with corresponding title deeds) are to be transmitted by the Railway Head Office under the direction of the Viceroy to the local agent of the Corporation for record and preservation in its office in Hongkong, and for the purpose of establishing the first mortgage security until the time when the same are to be returned to the Viceroy as hereinafter in this Article provided.
All lands the title deeds of which are lodged with the Corporation as part of the first mortgage security of the Loan shall not be disposed of in any way by hire, lease, or sale to any party for any purpose whatever without the written consent of the Viceroy except only in the event of the Imperial Chinese Government failing to pay the interest or principal of the Bonds and then in accordance with the powers in the deed of mortgage.
The lands thus bought shall be free from all encumbrances.