10.

67

satisfactory quality, and that the Railway Ad- ministration shall have the right to reject on arrival in China materials which do not come up to specifica- tions.

At equal rates and qualities goods of British manufacture shall be given preference over other goods of foreign origin.

With a view to the encouragement of Chinese in- dustries preference will be given, at equal prices and qualities, over British or other foreign goods, to Chinese materials and goods manufactured in China. commission will be paid to the Corporation on purchases of such materials and goods.

No

Yunnan-Talifu Failway,

Exchange of notes, July 25, 1914.

In the exchange of notes between Lord ffrench and the

Minister of Posts and Commerce at Peking it was laid down

that the terms and conditions of agreement regarding the

construction and financing of this railway should be the

same as those for the Shaai-Shingyi milway, the relevant

paragraphs of which are quoted in No.8 above.

The above are the relevant extracts from the Articles

of the various agreements relating to the purchase of

material.

In addition, each loan agreement subsequent to 1907 has

contained a clause to the effect that after completion of the

construction preference shall be given to the financing com-

pany or companies for such Agency business, during the our-

rency of the loan, as the Railway Administration may require.

(signed) H. JONES.

FOREIGN OFFICE,

26th June, 1929.

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P.S.

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