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Inclosure in No. 1,
Memorandum of Terms for Loan of 6,000,000 inels.
THE sum of 6,000,000 taels to be lent in equal shares by the English, French, and German banks-Hong Kong and Shaughat Banking Corporation, Banque de l'Indo-Chine, and Deutsch-Asiatische Bank. Payment and repayment to be made in Shanghae in Shanghae sycee.
The loan to be applied to-
(1.) The repayment to the Hong Kong and Shanghae Banking Corporation of the advance of 1,100,000 taels made to the Viceroy of Manchuria under date of the 9th November, 1908 (16th of the 10th mouth of the 34th year of Kwang Hsu); and
(2.) Provincial purposes which will be stated in the loan agreement.
2. The term of the loan to be ten years. Principal to be repayable in six years in equal annual instalments of 1,000,000 taels, commencing with the fifth year.
3. Interest to be at the rate of 7 per cent. per annum, paid half-yearly on the balance of the loan from time to time outstanding.
4. Principal and interest to be guaranteed by the Chinese Government.
5. Security, salt revenue of Fengtien province. So long as principal and interest of the loan are regularly paid there will be no interference, but if the principal or interest of the loan are in default at the due date, the said salt revenue must then forthwith be handed over to the Imperial Maritime Customs to administer.
6. The price of the loan to be 97 per cent.
7. An agreement setting forth all the conditions of the loan will be signed between the Viceroy of Manchuria and the three banks, and its terms will be reported by the Viceroy in a memorial to the throne. The Imperial edict sanctioning the conditions of the agreement will be officially communicated by the Wai-wu Pu to the Ministers in Peking of the three banks concerned, and payment of the loan proceeds -namely, 5,820,000 taels--will be made to the Viceroy's delegate in Shanghae three days after the communication of the Imperial edict.
8. Within six months after the signing of the loan agreement the Viceroy will hand to the banks bonds in Shanghae taels for the total amount of the loan, sealed with his official seal. These bonds will be offered for subscription to the public, and the cost of printing them will be borne by the banks.
November 23, 1909.
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repayment of this present advance of 1,100,000 taels, or of such of it as shall then be outstanding.
3. This loan shall bear interest at the rate of 7 per cent. per annum, calculated from the date upon which the proceeds of the loan are drawn. The interest shall be paid every six months, reckoned from the date of this agreement, and shall be charged upon the amount of the loan outstanding. Payment of interest and repayment of principal shall be made in taels of Shanghae sycee by the delegate of his Excellency Hsu, the Viceroy of Manchuria, in Shanghae, to the Hong Kong and Shangba Banking Corporation in Shanghae.
4. The proceeds of this loan, namely, 1,100,000 taels, will be paid by the Hong Kong and Shangbae Banking Corporation, Shanghae, on the 30th day of November, 1908, in Shanghae sycee to the Viceroy's account against his receipt.
5. The Viceroy of Manchuria, for himself and his successors, horeby uncondi- tionally guarantees and declares himself responsible for the due repayment of the principal and interest of this loan, which is further hereby secured as a first charge upon the salt revenue of the province of Fengtion.
6. The terms of this agreement will be reported in a memorial to the throne by the Viceroy, and the Imperial edict sanctioning the agreement will be officially communicated by the Wai-wu Pu to the British Minister in Peking before payment of the proceeds of the loan is made.
7. Two copies of this agreement are executed in English and Chinese, one copy to be retained by the Viceroy and the other copy to be retained by the bank. In the event of any question arising as to the meaning of the contract, the English text shall rule.
Done at Mukden, Fengtien province, this 9th day of November, 1908, being the 16th day of the 10th moon in the 34th year of the reign of Kuang Hsü.
(Seal of Viceroy Hsu.)
D. H. MACKINTOSH, Agent of Hong Kong and Shanghae Bank.
Inclosure 2 in No. 1.
Agreement between the Viceroy of Manchuria and the Hong Kong and Shanghae Banking Corporation.
THIS agreement, made between his Excellency Hsu, the Viceroy of Manchuria, acting under the authority of the Imperial Chinese Government, for himself and his successors, hereinafter called the Viceroy, of the one part, and the Hong Kong and Shanghae Banking Corporation, bereinafter called the bank, of the other part, witnesseth as follows:-
1. The bank agrees to lend to the Viceroy the sum of 1,100,000 Shanghae sycee taels.
2. The term of the loan shall be two years, dating from the signature of this agreement, and repayment shall be made in the second year in four instalments, namely:
On the 1st January, 1910, 320,000 taels, being the first instalment.
On the st April, 1910, 320,000 taels, being the second instalment.
On the 1st July, 1910, 230,000 taels, being the third instalment.
On the 1st October, 1910, 230,000 taels, being the fourth instalment.
But if within the term of two years aforesaid the Viceroy should decide to raise a further loan for general provincial requirements, the Hong Kong and Shanghac Banking Corporation will be entitled to the first refusal of the business, and the proceeds of the said loan when issued will be applied, in the first place, to the
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