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in whatever manner this may take place shall be for the separate benefit of each of the lenders as regards their respective participations therein.
7. In the event of either of the lenders declining a participation in any business proposed either at the outset or at any time during the course of the negotiations, the other lenders shall have the option of taking up and carrying out the business either jointly or, if only one takes up the business, separately on their or its respective accounts without becoming subject to the provisions of this Agreement.
S. The lenders will endeavour to secure in their respective markets a successful issue of any loan the subject-matter of contracts entered into with them jointly or in which they may be jointly interested. The French Bank and the German Bank reserve to themselves the right of increasing or reducing in cach special case the number of parties interested in the French and German Syndicates respectively and a similar right is reserved to the Corporation.
9. Any participation given in its own market by any one of the lenders shall be for its own account only, bat any participations given by and in the mutual interest of all the lenders who may be parties to or interested in any contract to any banks or banking firms outside of England, France, or Germany respectively shall be borne in equal shares by the parties interested.
10. All offers shall be made to the Chinese authorities and loans accepted on terms of control which involve as a minimum---
(a) The appointment of Engineers-in-chief, to be approved by the lenders or lender taking a rarticipation in the business, it being understood that the French Bank and German Bank would not object to the appointment of a British Engineer- in-chief in the case of the Hankow-Canton Railway. In future cases the appointments are to be made alternately by such lenders or lender according to the order of the parties to this Agreement, except where the interest of any other group can be shown to predominate, and in that case the Engincer shall be appointed by that group.
(b.) Proceeds of loans to remain under the control of such lenders until actually required for construction as may be certified by the Engineer-in-chief.
(c) Provision for proper account keeping and financial control under the direction of a Chief Accountant to be approved by such lenders or lender.
11. This Agreement shall apply to the loan for the Hankow-Canton Railway, and to enable this to be done the German Bank shall withdraw its offer to the Chinese authorities. The Corporation will in regard to all business in which the other lenders or either of them participates, admit such lenders or lender so participating to an equal share in the preference in the supply of materials secured to them by the Anglo-Chinese Convention of 1905, the Chinese authorities retaining within these limits the right to purchase railway material in the open market. Where materials required for any railway are purchased through any of the lenders the commission receivable from the Chinese on such purchases, after provision for the expenses of earning, such commission is to be shared between the lenders or lender participating equally or as may be arranged.
12. The present Agreement shall remain in force until six months' notice shall be given by any one of the lenders, such notice to expire on the 30th June or 31st December in any year. Notwithstanding any notice of such termination of such Agreement, all contracts made under this Agreement shall continue in force for their due fulfilment until completely carried out.
13. The Central Company consents to be bound by the terms of this Agreement to the extent of giving effect thereto by granting to the German Bank one third interest in all loans for railway purposes obtained by it in connection with any part of the Chinese Empire north of the Yang-tsze River, except loans connected with the Pukow-Sinyang line, for which the Central Company holds a preliminary Agreement, or with any line which may be substituted therefor; and the German Bank agrees to grant to the Contral Company two-thirds of the interest in any loans for railway purposes secured by the German Bank in the said area, but so that the granting of such interest to the Central Company shall be accepted by the Corporation and the French Bank as in satisfaction of all rights under this Agreement to participation in such loans.
In witness, &c.
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FIRST SCHEDULE.
Direction der Disconto-Gesellschaft, Berlin.
S. Bleichröder, Berlin. Deutsche Bank, Berlin.
Berliner Handels-Gesellschaft, Berlin. Bank für Handel und Industrie, Berlin. Mendelssohn und Co., Berlin. Dresdner Bank, Berlin.
A. Schaaffhausen'scher Bankverein, Berlin. Nationalbank für Deutschland, Berlin. Deutsch-Asiatische Bank, Shanghae. Jacob S. H. Stern, Frankfürt-am-Main.
Sal. Oppenheim, jr., et Cie., Köln. Norddeutsche Bank in Hamburg, Hamburg.
L. Behrens und Söhne, Hamburg.
Bayerische Hypotheken- und Wechselbank, München.
SECOND SCHEDULE.
0
200