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No commission shall be paid to the agents except as above provided; but it is understood that the Yuchuan Pu or its duly authorized representative shall provide out of railway funds for the remuneration of consulting engineers, whenever their services are required for general assistance and advice or for the inspection abroad of materials requiring supervision of technical experts.
With a view to the encouragement of Chinese industries, preference shall be given, at equal prices and qualities, over British and other foreign goods to Chinese goods and materials manufactured in China. No commission will be paid on purchases of such materials and goods.
It is understood and agreed that, after the construction of the line is completed, the Corporation will be given the preference for such agency business during the currency of the loan for the supply of foreign materials as may be required for the railway, on terms to be hereafter mutually agreed upon.
Art. 19. Branch lines in connection with the railway mentioned in this agreement, that may appear profitable or necessary later on, shall be built by the Imperial Chinese Government with funds at their disposal from Chinese sources, and if foreign capital is required, preference will be given to the Corporation.
Art. 20. By the preliminary agreement, dated the 15th day of October, 1898 (1st day, 9th moon, 24th year Kuang Hsü), participation of 20 per cent. of the net profits of the railway had been promised to the Corporation in remuneration for their general responsibility and services. In commutation of this participation in net profits, the Corporation is granted the right to retain 67,500l. out of the proceeds of the loan in instalments and on dates in proportion to, and based on, the terms of subscription to the loan, as stated in the prospectus. No further payment in respect of commutation of profits will be allowed on any supplementary loans.
Art. 21. After payment of interest and repayment of principal of the loan for any current year, the Yuchuan Pu shall deposit with the Hong Kong and Shanghae Banking Corporation in Shanghae any surplus of the net revenue of the railway line for that year up to the amount required to pay the following year's instalments of interest on the loan, the rate of interest on the deposit being arranged with the bank from time to time with due regard to the conditions of the market.
Art. 22. The Corporation may, subject to all its obligations under this agreement, transfer or delegate all or any of its rights, powers, or discretions thereunder to any British Company, director, or agent, with power of further transfer and sub-delegation, such transfer, sub-transfer, delegation, or sub-delegation to be subject to the approval of the Yuchuan Pu.
Art. 23. This agreement is signed under authority of an Imperial Decree of this date, which has been officially communicated to the Minister of Great Britain in Peking by the Wai-wu Pu.
Art. 24. Three sets of this Agreement are executed in English and Chinese, two sets to be retained by the Imperial Chinese Government, and one by the Corporation; in the event of any doubt arising regarding the interpretation of the contract, the English text shall rule.
Signed at Peking by the Contracting Parties, this 4th day of the 2nd month of the 34th year of the Emperor Kuang Hsü, being the 6th day of March, 1908.
(Signed)
HU HUI-TE. LIANG SHIH-YI.
KAO ERH CH'IEN.
(Seal of Wai-wu Pu.)
For the British and Chinese Corporation (Limited), (Signed) J. O. P. BLAND,
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SHANGHAE-HANGCHOW-NINGPO RAILWAY.
Amortization Schedule.
1,500,000l., at 5 per cent., thirty years.
Years. Interest. Principal. Principal repaid. Principal outstanding. £ £ £ £ 1 37,500 1,500,000 2 37,500 3 37,500 87,500 87,500 4 37,500 87,500 5 37,500 87,500 6 37,500 87,500 7 37,500 87,500 8 37,500 87,500 9 37,500 87,500 10 37,500 87,500 11 35,625 87,500 75,000 1,425,000 12 35,625 37,500 112,500 1,350,000 13 33,750 37,500 150,000 1,275,000 14 31,875 37,500 187,500 1,200,000 15 30,000 37,500 225,000 1,125,000 16 28,125 37,500 262,500 1,050,000 17 26,250 37,500 300,000 975,000 18 24,375 37,500 337,500 900,000 19 22,500 37,500 375,000 825,000 20 20,625 37,500 412,500 750,000 21 18,750 37,500 450,000 675,000 22 16,875 37,500 487,500 600,000 23 15,000 37,500 525,000 525,000 24 13,125 37,500 562,500 450,000 25 11,250 37,500 600,000 375,000 26 9,375 37,500 637,500 300,000 27 7,500 37,500 675,000 225,000 28 5,625 37,500 712,500 150,000 29 3,750 37,500 750,000 75,000 30 1,875 37,500 787,500Representative in China.