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This Document is the Property of His Britannic Majesty's Government.1
CHINA RAILWAYS.
CONFIDENTIAL.
(32959]
No. 1.
37403 [October 1.] RECE SECTION 13 OCT 07
Telegrams communicated by Mr. Addis, October 1, 1907.
(1)
(Translation.)
(Telegraphic.)
Shanghae Branch to Messrs. Jardine, Matheson, und Co.
FOLLOWING from J. O. P. Bland, Esq. :-
Shanghae, October 1, 1907.
"Tientsin - Yang-tsze Railway negotiations for Final Agreement. Special
securities:
"The Chinese Government offer as follows: Li-kin and internal revenues Province of Chih-li, amounting to 1,200,000 taels; ditto, Province of Shantung, 1,600,000 taels.
"In Province of Kiangsa-Nanking li-kin amounting to 900,000 tacls; Huaiah native customs, 100,000 taels. These are specified because Province of Kiangsu li-kin revenues already security other loan.
"In the event of default Maritime Customs administer said revenues on behalf of bondholder.
"If you consider it satisfactory, please inform me [us] of price loan as soon as possible."
(2.)
Mesars, Jardine, Mutheson, und Co. to Shanghae Branch.
September 30, 1907.
(Translation.) (Telegraphic.)
COMMUNICATE the following to E. G. Hillier, Esq., by cable:-
'In reference to your cable dated the 19th, if it is absolutely necessary, you are authorized by the Board of Directors to deduct 5 per cent. from price on account of compensation for surrender of profits or to accept bonds for amount whichever pre- ferred, compensation for surrender profits to be extended to all supplementary loans exceeding 5,000,0007, and at least 7,000,000%., 500,0002.
"Also you are authorized by the Board of Directors to commute commission on purchase of material 24 per cent. payable terms Article 18; this does not affect question of price. We shall require preliminary expenses as well as survey to be paid from loan funds; this should be made quite clear. We agree to your proposal Chinese Central Railways, Limited, should not act as trustees for bondholders.
Article 8.-It will be necessary to add after words 'revenues of the railway' the following words: 'or capital funds.'
"Article 10.-If possible strike out printing Chinese text-no advantage since English text prevails; it would cause delay, besides no room on bond.
"Article 15 should read thus: amount of deficiency to be provided by Chinese Government, and, if feasible, by supplementary loan by the Syndicate Banks.
"Article 18 should empower Chinese Central Railways, Limited, employ technical assistance when necessary at cost of railway; also expenses of inspection material.
"Subject to these conditions, and security being approved, Chinese Central Railways, Limited, will be prepared to take loan on conditions named your cable 10th instant at maximum 927. 10s.'
[2691 a-1]
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