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Shantung, and other provinces, are encountering strong opposition from the Senate, and not without some reason. Kiangsu, for instance, does not see why it should have been saddled with the loan of 3,500,000 taels made, it is alleged, to the Shanghai taotai in August last largely to cover up gambling debts of Chekiang (Ningpo) people in connection with rubber transactions, and the representatives of the province are making their views felt in Peking.
I have, &c.
Enclosure 1 in No. 1.
J. N. JORDAN.
Agreement made between his Excellency Fan Tseng Hsiang, Financial Commissioner of Nanking, and the Hong Kong and Shanghai Banking Corporation, Deutsch-Asiatische Bank and Banque de l'Indo-Chine for a Loan of 3,000,000 trels Shanghai Sycee,
THIS agreement made between his Excellency Fan Tseng Hsiang, financial commissioner, of Nanking, of the one part, and the Hong Kong and Shanghai Banking Corporation, Deutsch-Asiatische Bank, and Banque de l'Indo-Chine, herein- after called the "banks," of the other part;
Whereas the Viceroy of the Liang Kiang provinces, his Excellency Chang Jen Chun, has for the purpose and with the object of relieving the present state of the Kiangnan market memorialised the throne for and received an Imperial edict (com. municated by the Wai-wu Pu to the British, German, and French Ministers in Peking) authorising him to raise a foreign loan of 3,000,000 taels, and has specially vested the financial commissioner, his Excellency Fan Tseng Hsiang, with powers to negotiate for the said loan and to seal the loan bonds hereinafter referred to,
Witnesseth as follows:--
1. The banks hereby agree to lend to the Viceroy of the Liang Kiang provinces and the Viceroy hereby agrees to borrow from the banks the sum of 3,000,000 taels, the payment and repayment of which said sum and of interest thereon are to be made in Shanghai in taels of Shanghai sycee.
2. The banks shall, on the execution of this agreement, pay in full to the financial commissioner the sum of 3,000,000 taels Shanghai sycee.
3. The interest for the said sum of 3,000,000 taels shall be 7 per cent. per annum, to be computed from the date of this agreement and payable by the financial commissioner or his successors in office on the 11th day of June and the 11th day of December yearly until repayment of the loan has been completed.
The principal shall be repaid in six yearly instalments as follows:-
500,000 taels Shanghai sycee on the 11th day of December, 1911. 500,000 taels Shanghai sycee on the 11th day of December, 1912. 500,000 taels Shanghai sycee on the 11th day of December, 1913. 500,000 taels Shanghai sycee on the 11th day of December, 1914. 500,000 taels Shanghai sycee on the 11th day of December, 1915. 500,000 taels Shanghai sycee on the 11th day of December, 1916.
4. In the event of there being a surplus from the three revenues hereinafter mentioned after duly paying the yearly instalment of the principal and interest, the financial commissioner shall be at liberty, on giving three months' previous notice to the banks, to pay off the next instalment of principal or the whole sum for the time being remaining owing.
5. This loan is secured by a first mortgage on the following revenues of Kiangnan, namely:---
(a.) The "Shou Hwui-fu Chia Pa Cheng" salt li-kin of the four salt districts of Hunan, Hupeh, Kiangsi, and Anhui ("Siangping "), 300,000 taels.
taels.
(b.) The additional Kiangnan Yao Cheng salt duties ("Siangping"), 320,000
(c.) The "Hai Fun Shih Wu Cheng" salt li-kin of Liang Hui ("Siangping"), 120,000 taels.
The aforesaid three revenues amount to 740,000 (" Siangping") taels in the 3rd year of Hsuan Tung, but will increase to 840,000 ("Siangping" taels from the 4th Hsuan Tung.
year
of
The financial commissioner hereby guarantees that no mortgage or charge exists on the aforesaid revenues. The Viceroy of the Liang Kiang provinces further guarantees on behalf of himself and his successors in office that no other or further pledge of such revenues, whether by way of loan on, or mortgage of, the said security shall be made without an explicit declaration of the relative priority of the present loan over each and any other or further pledge of such se urity.
6. The financial commissioner shall, within three months of the execution of this agreement, hand to the banks oonds in Shanghai taels, Shanghai sycee, for the total amount of this loan, namely, 3,000,000 taels, sealed with the official seal of the financial commissioner as evidence that he and his successors in oflice are bound thereby. The form and amount of the bonds shall be settled by the banks in consultation with the financial commissioner Bonds for the amount repaid shall be immediately returned to the financial commissioner for cancellation. After each instalment of the principal is paid, interest at the rate aforesaid shall only be charged on the residue of the principal for the time being remaining owing.
7. The financial commissioner for himself and his successors in office hereby unconditionally guarantees and declares himself and themselves responsible for the due repayment of the principal of 3,000,000 taels, Shanghai sycee, and the payment of
interest thereon.
8. As officially communicated by the Wai-wu Pu to the British, German, and French Ministers in Peking, the Viceroy of the Liang Kiang provinces is authorised to guarantee on behalf of the Imperial Chinese Government, and he does hereby guarantee under his official seal, that payment of interest and repayment of the principal of this loan shall be duly made.
to
9. Ten copies of this agreement are executed in English and Chinese; one copy be retained by the Viceroy of Liang Kiang provinces, one by the Board of Finance, one by the Wai-wu Pu, one by the Financial Commissioner of Nanking, one by the British Legation, one by the German Legation, one by the French Legation, and three by the
banks.
In the event of any question or dispute arising as to the meaning of this agreement, the English text shall rule.
Signed at Nanking by the contracting parties this 10th day of the 11th moon in the 2nd year of Hsuan Tung, being the 11th day of December, 1910 (Western calendar).
(Seal of Financial Commissioner.)
(Seal of Viceroy.)
(For the Hong Kong and Shanghai Banking Corporation),
H. HUNTER, Manager.
(For the Deutsch-Asiatische Bank),
R. TIMMERSCHEIDT. KOELM.
(For the Banque de l'Indo-Chine, Agence de Shanghai),
Le Caissier,
L. GAUTHERIN.
Le Directeur,
G. MAYER.
In the presence of:
J. O. ANDERSON,
Enclosure 2 in No. 1.
Your Highness,
Mr. Max Müller to Prince Ch'ing.
Peking, November 17, 1910. I HAVE the honour to acknowledge the receipt of your Highness' note of the 10th November, in which you inform me that a telegraphic memorial was recently received from the southern superintendent of trade to the effect that, in view of the critical state of the Shanghai money market, the general chamber of commerce and representatives of the various trades had besought him to take remedial measures,
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