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America or in Europe, not remitted from China for the purpose, and desire so to use them.
6. In reimbursement of expenses connected with the payment of interest and the repayment of principal of this loan the banks shall receive a commission of † of 1 cent. on the annual loan service.
per
Art. 11. If at any time after the lapse of fifteen years from the date of the loan the Government should desire to redeem the whole outstanding amount of the loan or any part of it not yet due for repayment in accordance with the schedule of repayments
th hereto attached, it may do so up to the end of the
year by payment of a premium of 2 per cent, on the face value of the bonds (that is to say, by payment of 1021. 10s for each 1007. bond), and after the lapse of years without premium, but in each and every case of such extra redemption the Government will give six months' previous notice in writing to the banks, and such redemption shall be effected by additional drawings of bonds to take place on the date of an ordinary drawing as provided in the prospectus of the loan,
Art. 12. In the event of any bond or bonds issued for this loan being lost, stolen, or destroyed, the group and/or bank or banks concerned may notify the Board of Finance and the Imperial Chinese Ministers in Washington, London, Berlin, or Paris, as the case may be, who shall authorise the group and/or bank or banks concerned to insert an advertise- ment in the public newspapers stating that payments of such bond or bonds has been stopped; and to take such other steps as may appear advisable or necessary according to the laws or customs of the country concerned. Should any bond or bonds be destroyed, or should such lost or stolen bond or bonds not be recovered after a lapse of time to be fixed by the banks, the Imperial Chinese Ministers in Washington, London, Paris, or Berlin, as the case may be, shall seal and execute duplicate bond or bonds for a like amount and deliver them to the group and/or bank or banks representing the owner or owners of such lost, stolen, or destroyed boud or bonds, which group and/or bank or banks shall pay all expenses in connection with such delivery and execution of such duplicate bond or bonds for the account of the owner or owners of such bond or bonds.
Art. 13. All bonds and coupons and payments made and received in connection with the service of this loan shall be exempt from all Chinese taxes and imposts of auy and every description during the currency of this loan.
Art. 14. If the Imperial Chinese Government should desire to obtain from other than Chinese sources, funds in addition to the proceeds derived from this loan, to continue or complete the operations contemplated under this agreement, the Imperial Chinese Government shall first invite the banks to undertake a loan to provide the funds required, but should the Imperial Chinese Government fail to agree with the banks as to the terms of such supplementary loan, then other financial groups may be invited to undertake the same; and should the Imperial Chinese Government decide to invite foreign capitalists to participate with Chinese interests in Manchurian business contemplated under this loan, or to be undertaken in connectiou therewith, the banks shall first be invited to so participate.
Art. 15. If, before the publication of the prospectus for the issue of this loan any political or financial crisis should occur affecting the American, British, German and/or French markets and the prices of Chinese Government securities in such manner or to such a degree as in the opinion of the banks will render impossible the successful flotation and issue of this loan within the period of six months, named in article 8, paragraph 2, above, then the banks shall be entitled to ask the Imperial Chinese Government for a reasonable extension of time within which to carry out this contract. If the Imperial Chinese Government should refuse to grant the extension of time requested, or, if at the conclusion of the six months period allowed for their examination as provided in article 8, paragraph 2, above, the banks should notify the Board of Finance that they do not find the programme of currency reform and the two statements of expenditure to be a reliable basis for the issue of bonds hereunder, then in either of these two cases, this contract shall become null and void, and the Imperial Chinese Government shall thereupon repay to the banks, with accrued interest, all advances made under the provisions of paragraphs 4 and 5, article 8, above, and shall further reimburse the banks for all expenses which may have been incurred by them in connection with the engraving and/or printing of the bonds, but shall be liable for no other compensation whatsoever.
Art. 16. The Government hereby authorises the banks to deduct from the proceeds of this loan a commission of 1 per cent. on the total amount thereof as a partial reimbursement for their expenses for engraving and/or printing the bonds, printing
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the prospectus, stamp duties, legal fees, telegraph charges, advertising, commission and brokerage underwriting and other expenses incident to the flotation and issuance of the loan.
Art. 17. The American Group, the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank and the Banque de l'Indo-Chinese, shall take the loan in equal shares and without responsibility for each other.
Art. 18. The American Group, the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank and the Bank l'Indo-Chinese may, subject to all their obligations under this agreement, transfer or delegate all or any of their rights, powers and discretions thereunder to any American, British, German or French Company, Directors, or Agents, with power of further transfer and sub-delegation; such transfer, sub-transfer, delegation or sub-delegation to be subject to the approval of the Imperial Chinese Government.
Art. 19. This agreement is signed by the Board of Finance under the authority of an Imperial edict dated the
day of the
month of the third year of His Imperial Majesty Hsuan Tung, corresponding to the
day of 1911, Western Calendar, which has been officially communicated to the Ministers of the United States, Great Britain, Germany and France in Peking by the Wai-wu Pu.
Art. 20. Eight sets of this agreement are executed in English and Chinese, four sets to be retained by the Imperial Chinese Government and one set by each group and/or bank.
In the event of any doubt arising regarding the interpretation of this contract the English text shall rule.
Signed at Peking, &c.
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