British and American Tobacco Company. of the £5,000,000,
£300,000 will be used to repay certain loans which were
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before raised without specified securities, and the
remaining 4,700,000 will be handed over to the bogus
Government at Peking. As negotiated between Sun Chun rong
and the British, the securities offered were the Cigarette
Tax at Shanghai and the wharves and other structures at Pukow.
As the lenders were not satisfied with these, the Shihchiachwa
ng Tsangchow Railway and the Peking-Jehol Railway were added
as subsidiary security. When the 21% surtax has been
enforced, the Customs uty will be taken as security
instead. But the British parties such as the British American
Tobacco Co., seeing that the Chinese did not keep the matter
secret but have let it become known to the public, rousing
a boycott against them, xheve now notified the parties
concerned that they repudiated the agreement.