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COPY.
Enclosure
LL
The Proposed Internal Loan of Canton.
(1). Formation and Name:-
A Byndicate to be formed and named by the Merchants abroad by resolutions to be passed amongst themselves.
(2). Amount of the Loan;·
$25,000,000 in Canton 20 cent pieces. Subscriptions, if paid
in Canton Currency Notes, shall be charged a discount of 40%.
(3). Period of Repayment:
25 years in equal annual instalments. If, however, the
Canton Government can shorten the period by other means, it will be allowed to do so by arrangement with the syndicate.
(4). Rate of Interest:-
5% per annum.
(5). Rate of Issue:-
96.
(6). Security:-
five
The aggregate amount of Likin Tax collectable at given places, about $2,600,000 per annum, namely:-
on the river about...
In the City proper and
.81,100,000 per annum.
At Ho Hau near Samahui about..............
700,000
400,000
400,000 do.
do.
do.
At Lo Pau about
At To Shing and Hau Lek about.............
In the event of the Peking Government actually enforcing the
scheme, by which Likin will be abolished, a sum equal to the
amount of the tax collectable as above named will be deducted from
the import and export duty towards the payment of the loan and
interest thereon.
(7). Utilization of the Loan:-
With the exception of the Canton Currency notes collected as
subscriptions, which shall be destroyed, the balance remaining in
cash to be expended as follows; -
(a). 85,000,000 to be paid to the proposed bank for shares
which the Canton Government has promised to take up:
(b). 85,000,000 to be paid towards the redemption of the
Peking