។
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Sub-section (c).This is contrary to the last paragraph of clause 6 of the draft Agreement of the 15th March, 1909, which provides that, subject to other arrangements, a representative of the Corporation should conduct the negotiations with the Chinese. This point it was agreed according to the Minutes of the 12th March, 1909, should stand over for further consideration.
The representatives of the British and Chinese Corporation (Limited), and Chinese Central Railways (Limited), having considered the above suggest that this should be further considered in the spirit of clause 6 of the Railway Agreement.
Sub-section (d).The addition of a clause providing against compofition was, according to the Minutes, agreed to in principle in regard to the Railway Agreement, and it is now suggested that should be extended to the Agreement between the banks, and it is provided for in the draft Agreement between the three banks.
The representatives of the British and Chinese Corporation (Limited) and Chinese Central Railways (Limited), having considered the above point out that the draft Agreement between the three banks contains the clause in question, and it is proposed to add a clause on similar lines to the Railway Agreement.
Sub-section (e)-According to the Minutes it was agreed that the Railway Agreement should terminate automatically on the Agreement of the 30th June, 1903, between the Hong Kong and Shanghae Banking Corporation and the Corporation terminating. The suggestion now is that the Agreement of the 30th June, 1908, which automatically ceases on the 30th June, 1918, shall be incapable of termination as long as the Agreement between the three banks remains in force, and provisions to this effect would have to be added in both Agreements.
The representatives of the British and Chinese Corporation (Limited) and Chinese Central Railways (Limited), having considered the above think that the German suggestion was merely to reverse the suggestion that the Railway Agreement should be determined as soon as the Agreement of the 30th June, 1898, between the Corporation and the Hong Kong and Shanghae Banking Corporation terminated. There seetus no objection in such reversal, and it was clearly understood that if the Agreement of the 30th June, 1898, was determined the Railway Agreement should also come to an end. There can be no question of now prolonging the Agreement of the 30th June, 1898, which does not in the ordinary course come to an end until 1918.
Sub-section (f).-The suggestion now is that the German group having obtained the advantage of a preliminary Agreement with the Chinese Government in defiance of the terms of the Addis Memorandum are not to take steps to modify its terms until the two Agreements, viz.: that between the three banks and the Railway Agreement have been entered into. As some time must inevitably clapse before the terms of the two above mentioned Agreements can be settled the German group is left in undisturbed possession of its preliminary Agreement with the Chinese, which will tend to crystallize and make it more difficult to modify its terms later. If however, this is not considered a matter of moment it will have to be expressly provided in both Agreements that they are only entered into and take effect conditionally upon the modification being achieved.
The representatives of the British and Chinese Corporation (Limited) and Chinese Central Railways (Limited), having considered the above resolved that, while there was no objection to negotiating and agreeing the terms of the two Agreements, they should not be finally signed until the preliminary Agreement with the Chinese Government was either modified or withdrawn,
Clause 3.
Paragraph 1.-It must be noted that Canton-Kowloon terms as a minimum are referred to though these include a mortgage of the railway. The real minimum terms are set out in clause 10 of the draft Agreement and are no doubt intended to be referred to by the expression "Canton-Kowloon terms."
The representatives of the British and Chinese Corporation (Limited) and Chinese Central Railways (Limited), having considered the above were of opinion that the conditions of clause 10 of the draft Agreement of the 15th March, 1909, were intended then rather than actual Canton-Kowloon terms.
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Paragraph 2. This clause appears to contemplate the Germans being left as parties to the Canton-Hankow Agreement vis-à-vis the Chinese Government, and that the British and French groups should be admitted to participation as between themselves and the German group. This is not in the spirit of the Agreement, and the modifica- tion of the preliminary Agreement with the Chinese Government should take the form of substituting for the German group the three groups as well as the modifica- tion of the actual terms. The stipulation that the Ilankow-Chengtu Railway Loan shall be concluded simultaneously is a new provision, and subject to explanation it would, if insisted upon, either be impossible to secure its fulfilment as against the Chinese Government, or would delay the completion of the modified terms of the Canton-Haukow Railway. The German group now definitely claim the appointment of an Engineer for the section from Hankow to Chengtu, viz., the Hupeh section of the Iaukow-Chengtu line. This contention would again make another exception in favour of the German group to be taken out of the alternate series of appointments.
The representatives of the British and Chinese Corporation (Limited), and Chinese Central Railways (Limited), having considered the above, were of opinion that as it was probable that an attempt by the Germans to modify the terms of the preliminary Agreement would result in the Chinese withdrawing it, it would then be open and desirable for a new Agreement to be concluded, to which all three groups were parties.
In regard to the Chengtu Loan, it was resolved to be impossible to stipulate that this should be concluded simultaneously, and in regard to the claim of the German group to an Engineer of the Iupeh section, to inquire of the German group on what they based such claim.
Clause 4.
Paragraphs 1 and 2.-These two paragraphs carry out the terms of the Minutes agreed upon in London.
In regard to the third paragraph dealing with the termination of both Agree- ments, these are to be subject to twelve instead of six months' notice, and up to the 31st December, 1911, certain.
The representatives of the British and Chinese Corporation (Limited), and Chinese Central Railways (Limited), having considered the above, suggest that the notice should be six months from the 31st June or 31st December, and that 1910 should be substituted for 1911,
Dear Sir,
Inclosure 1 in No. 1.
Deutsch-Asiatisc'e Bank to Mr. C. S. Adais.
Berlin, March 20, 1909, IN confirmation of our yesterday's telegram, as per inclosed copy, we beg to inform you that our Syndicate has agreed to continue the negotiations re the proposed Anglo-French-German Agreement on the point where they have been suspended, and that Messrs. Urbig, Erich, and Rehders have been authorized to resume and conclude these negotiations on the following conditions ---
1. Two Agreements are to be made simultaneously, viz. :--
(1.) The first Agreement has to be made between the Hong Kong and Shanghac Banking Corporation, the Deutsch-Asiatische Bank, and the Banque de l'Indo-Chine. It shall relate to all loans and advances which may be concluded with the Chinese Imperial or Provincial Governments, or under the guarantee of such Governments, taking as basis the Agreement made by us with your esteemed bank on the 27th July, 1895.
(2.) The second Agreement has to be made between the British and Chinese Corporation (Limited), the Chinese Central Railways (Limited), the Deutsch-Chinesische Eisenbahn-Gesellschaft m.b.H., and a Railway Syndicate to be formed by the Banque de l'Indo Chinc. This second Agreement shall relate only to loans and advances for railway purposes.
2. The conclusion of Agreements as described above shall be subject to the following provisions :-
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