6.
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"for the Kwangshui-Ichang section of the Szechuan-Hankow "railway line, with a fully qualified American Engineer- "in-Chief for the section of that line from Iehang to "Kweichowfu, at the same time informing the Banks of the
"selection made.
No share of the construction was allotted to the French Group but, as a solatium, the Kweichow-Chungking-Chengtu
section was reserved for French capital.
7.
Article XVIII concedes to the British and German
Groups exclusive purchasing rights for the whole system, in- eluding the American section.
8.
It had already, however, been agreed among the groups themselves, by an agreement signed on May 23, 1910, not to take advantage of this stipulation. The purchasing agents, that is
the British and Chinese Corporation and the Deutsch-Asiatische
bank, bound themselves to "make all proper provision for the
receipt on an absolute basis of equality of tenders between
British, German, French, and American manufacturers".
With regard to the relation of the project to (2) the
Consortium Agreement, it may be argued that the issue of a
public loan would be avoided by the use of the British Indemni ty
fund. All that happens, it may be said, is that the British
Indemnity fund is remitted to the Chinese Government who can
employ it as they please. The letter of the Consortium Agree-
ment is observed by the British Group, and no objection can be
taken by the others to a deal which lies without the ambit of
the joint operations contemplated by their Agreement.
10.
All this may be true, but it does not follow that the
French and American groups might not feel aggrieved at this
particular use of the Indemnity fund; and, if the remission to
the/