This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[13254]
No. 1.
[April 16.]
SECTION 1.
(No. 143.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received April 16.)
Peking, March 25, 1908.
I HAVE the honour to inclose copy of an Agreement which was signed to-day by the Administrator-General of Northern Railways and Mr. Bland, on behalf of the British and Chinese Corporation, for the release of an unexpended balance of Northern Railway loan funds; and also a copy of a letter from Mr. Bland to the Administrator-General on the subject of this Agreement.
Under the Loan Agreement of the 10th October, 1898, the proceeds of the loan were to be applied to the construction of certain railways, including a branch line from Nu-erh-ho to prospective collieries at Nanpiao. The terms of the Agreement have been fulfilled up to date, except that the Nu-erh-ho-Nanpiao branch line has not been constructed, the reason assigned being that the Nanpiao coal has been ascertained to be unsuitable for railway purposes. There is still lying in the Hong Kong and Shanghai Banking Corporation in London an unexpended balance of the loan amounting to over 150,000l., which is about the estimated cost of the Nu-erh-ho-Nanpiao line, and the deed which I inclose is intended to discharge the Chinese Government from the obligation of the Loan Agreement to construct that branch line, and to free the unexpended balance for other specified purposes connected with the welfare of the Imperial Railways of North China.
The interest of the bondholders being concerned, the sanction of the High Court in England to the Agreement will be necessary, and I understand from Mr. Bland that proceedings will be commenced forthwith for this purpose.
The Agreement seems to me to be a very fair one under the circumstances, and I have no hesitation in recommending the adoption of any proper steps which may facilitate the sanction of the High Court.
I have, &c.
(For His Majesty's Minister),
(Signed) STEPHEN LEECH.
Inclosure 1 in No. 1.
year of
This Agreement is made at Peking on the 23rd day of the 2nd month of the 34th Kuang Hsü, corresponding to the 25th day of March, 1908, between the Director-General of the Imperial Railways Office of the Board of Communications, hereinafter referred to as the "Director-General," of the one part, and the British and Chinese Corporation (Limited), hereinafter called the "Corporation," of the other part.
Whereas:
1. In the year 1899 the Chinese Imperial Railway 5 per Cent. Gold Loan was issued for the total sum of 2,300,000l. in 23,000 bearer bonds of 100l. each, the said loan being unconditionally guaranteed by the Imperial Government of China, and each of the said bonds being sealed by the Chinese Minister in London and being, by the terms of the bond, declared to be entitled to a first charge upon the permanent way, rolling stock, and entire property, with the freight and earning of the then existing railway lines then partly constructed or in the course of construction or about to be constructed from Shanhaikuan to Sinminting, and from a point on the last-mentioned line near Shih-san-chan to Yingtzu and (by way of a branch line) from Nu-erh-ho to the collieries of Nanpiao, and each of the said bonds being expressed to be issued subject to and with the benefit of the Agreement next hereinafter stated.
2. Under an Agreement (hereinafter called the "Loan Agreement"), dated the 10th October, 1898, and made between his Excellency Hu, Governor of Peking, as Director-General of the Railways of North China within and without Shanhaikuan,
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