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instalment at the due date the Yuchuanpu will pay to
the Companies interest at the rate of 5 per cent per an-
num on the amount of any such instalment from the date
on which it accrued due until the actual date of pay-
ment. In case of non-payment or short payment the Com-
panies may deduct any amount due under this Agreement
from monies due from the Companies to the Imperial
Chinese Telegraph Administration under any Agreement
or Contract between the said Administration and the
Companies or either of them, provided always that the
Companies in case of such non-payment or short payment
shall have the right to demand the immediate repayment
of the outstanding
balance of the loan and interest.
Article 6.
The Imperial Government of China hereby guarantees
the repayment of the Loan and the payment of interest
thereon in accordance with the stipulations contained
in the preceding article, and as security for the loan
hereby grants to the Companies a preferential lien on
China's revenue from "Through Traffic" and "Limitrophe
Traffic": subject always to the lien held by the Com-
panies