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of the loan, and shall he made by yearly amortisation in half-yearly payments, according to the amounts specified in the schedule attached to this agreement.
3. The Board of Finance shall, twelve days before their due dates, hand to the bank or banks designated from time to time by the American group, the Inter- national Banking Corporation being now so designated, and to the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank, and the Banque de l'Indo-Chine in Shanghai, in equal shares, funds in Shanghai sycee and [or] coin of the national currency (so soon as the said currency shall have been effectively established) sufficient to meet each such half-yearly payment of principal and [or] interest in gold, in America or Europe.
4. The rate of exchange for such transactions shall be settled simultaneously with the banks aforementioned by the Board of Finance either on the day on which such payments in Shanghai sycee and [or] coin of the national currency are to be made or, at the option of the Board of Finance, on any date or dates within six months previous to any due date for the payment of interest or the repayment of principal.
5. Payments may be made in gold twelve days before their due dates to the banks in the United States of America or Europe if the Imperial Chinese Govern- ment should happen to have gold funds bond fide at its disposal in the United States of 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 per cent. on the annual loan service.
Art. 13. 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 hereto attached, it may do so up to the end of the twenty-fifth year by payment of a premium of 2 per cent. on the face value of the bonds (that is to say, by the payment of 1021 10s. for each 1007. bond), and after the lapse of twenty-five 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. 14. 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 advertisement in the public newspapers stating that payment of such hond 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, Berlin, or Paris, as the case may be, shall seal and execute a duplicate bond or duplicate bonds for a like amount and deliver the same to the group and [or] bank or banks representing the owner or owners of such lost, stolen, or destroyed bond or bonds, which group and [or] bank or banks shall pay all expenses in connection with such delivery aud execution of such duplicate bond or bonds for the account of the owner or owners of such bond or bonds.
Art. 15. 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 any and every description during the currency of this loan.
Art. 16. 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 connection therewith, the banks shall first be invited to so participate.
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Art. 17. If, before the publication of the prospectus for the issue of this loan any political or financial crisis should occur affecting the Americau, 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 on the terms herein named, the banks shall be granted a period of six months from the date on which they shall have landed to the Board of Finance the notification referred to in section 2, article 8, above, within which to issue the loan to the public. If, at the expiration of this period, the markets are still unfavourable then the banks shall be entitled to ask the Imperial Chinese Govern- ment for a reasonable extension of time within which to carry out this contract. the Imperial Chinese Government should refuse to grant the extension of time requested, this contract shall become null and void, subject always to the repayment of advances as provided in section 6, article 8, above, and the Imperial Chinese Govern- ment shall be liable for no other claims whatsoever.
If
Art. 18. The American Group, the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank, and the Banque de l'Indo-Chine shall take the loan in equal shares and without responsibility for each other.
Art. 19. The American Group, the Hong Kong and Shanghai Banking Corporation, the Deutsch-Asiatische Bank, and the Banque de l'Indo-Chine 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. 20. This agreement is signed by the Board of Finance under the authority of an Imperial edict dated the 17th day of the 3rd moon of the 3rd year of His Imperial Majesty Hsuan Tung, corresponding to the 15th day of April, 1911 (Western calendar), which will be officially communicated to the Ministers of the United States of America, Great Britain, Germany, and France in Peking by the Wai-wa Pu.
Art. 21. 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 this 17th day of the 3rd moon of the 3rd year of His Imperial Majesty Hsuan Tung, being the 15th day of April, 1911 (Western calendar).
Signature of the President of the Board of Finance,
Duke TSAI TSE.
(Seal of Board of Finance.)
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For J. P. Morgan and Co., Kuhn, Loeb and Co., The First National Bank, The National City Bank, all of New York, constituting the American Group:
WILLARD STRAIGHT, Representative.
For the Hong Kong and Shanghai Banking Corporation :
E. G. HILLIER, Agent.
For the Deutsch-Asiatische Bank:
H. CORDES.
Banque de l'Indo-Chine:
CASENAVE. HENRY MAZOT.
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