4
printing of prospectus and bonds, stamp duty and legal fees, shall be borne by the contracting banks.
12. In the event of any extraordinary political or financial crisis in Europe or elsewhere, by which the prices of Chinese, British, or French securities become so seriously affected as to render it impossible to float this loan on the terms herein named, the contracting banks shall have the right to withdraw from this contract, which shall in that case become null and void, subject to any arrangement between the contracting parties for an extension of time.
13. The Hong Kong and Shanghae Banking Corporation and the Banque de l'Indo-Chine shall take the loan in equal shares and without responsibility for each other.
14. This Agreement is signed under the authority of an Imperial Edict dated the 14th day of the 9th month of the 34th year of the Emperor Kuang-Hsü, being the 8th day of October, 1908, which will be officially communicated without delay by the Wai-wu Pu to the Ministers for Great Britain and France in Peking,
15. Quadruplicate sets of this Agreement are executed in English and Chinese, one set to be retained by the Board, one set by the Wai-wu Pu, and one set by each of the contracting banks.
In the event of any doubt arising with regard to the interpretation of this contract the English text shall rule.
Signed at Peking by the contracting parties this 14th day of the 9th month of the 34th year of the Emperor Kuang-Hsü, being the 5th day of October, 1908, Western Calendar,
This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS.
CONFIDENTIAL.
[42630]
689
[December 7.]
SECTION 1.
0.0
47047
No. 1.
Sir J. Jordan to Sir Edward Grey.--(Received December 7.)
Ree? (No. 509.) Sir,
Peking, November 1, 1908 DEC 08 I HAVE the honour to report, with reference to my despatch No. 469 of the 24th ultimo, that in an interview on the 5th instant at the Wai-wu Pu I again pressed strongly for the strict fulfilment of the terms of the Shanghae-Ningpo Railway Loan Contract without delay.
The Minister present, the Grand Secretary Na-t'ung, stated that after my interview of the 23rd ultimo the Board of Communications had been written to, and as soon as their reply was received a communication would be made to me.
I expressed strong dissatisfaction, and reminded him that the important thing was to repress the local Railway Boards, and make it impossible for them to interfere with the carrying out of the Loan Contract. I said that I had already spoken to the Board of Communications, but they had no power to control these people, and it was for the Wai-wu Pu to move the Imperial Chinese Government to immediate action. There had been too much delay. The funds borrowed on the terms of the Loan Agreement were now being employed by the Board of Communications in violation of those terms, and I had advised the Hong Kong and Shanghae Bank to issue no more of the money until a Chief Engineer was appointed and fulfilling his duties.
The Grand Secretary took note of my remarks, and begged me to rest assured that it was the firm intention of the Chinese Government to see that the Loan Agreement was faithfully observed.
On receipt of the letter of the 8th instant from Mr. Hillier, copy of which I have the honour to inclose, I telegraphed to you a short statement of the action I had taken in regard to the loan funds.
Yesterday morning his Excellency Liang Shih-yi, of the Board of Communications, called and showed me a letter, dated the 27th ultimo, from the Managing Director, Taotai Shih Chao-tseng, the terms of which indicated that the Chief Engineer was being consulted, and was, in fact, performing his duties. I have instituted inquiries on this point through Mr. Bland.
I have, &c.
(Signed) J. N. JORDAN.
Inclosure 1 in No. 1.
Mr. Hillier to Sir J. Jordan.
Hong Kong and Shanghae Bank, Peking, November 8, 1908.
I HAVE the honour to inclose, for your information, copy of a letter I have addressed to the representative of the British and Chinese Corporation, proposing that his Board should confer with my bank in London as to what steps it is desirable to take, subject to the approval of His Majesty's Foreign Office, in order to meet the situation created by the unsatisfactory state of affairs now existing on the Shanghae-Hangchow-Ningpo Railway.
I have, &c.
(Signed) E. G. HILLIER, Agent.
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