Enclosure No.1
DRAFT.
7
1.
Conditions to be embodied in an Agreement between the Hong Kong Government and the Kwang Tung Provincial Government for a Loan not exceeding $240,000 (H.K.) for the cost of purchase through the Crown Agents for the Colonies of six Railway Coaches
complete, including cost of calling for Tenders and
delivery in Hong Kong, and all expenses in connection
therewith.
of
2.
3.
Repayment of the Loan shall be by instalments
not less than $10,000 per month.
The monthly instalments shall be paid by the
Chinese Section of the Railway through the British Sec-
tion of the Railway, and shall be a first charge against
the provisional monthly balances due from the British to
the Chinese Section on account of the division of
Through Railway earnings.
4.
The accounts showing the provisional balance
due from the British to the Chinese Section shall be
prepared and confirmed by the 25th day of the month
following that to which the accounts refer.
F.
Interest on all outgoings on account of the
Loan shall be at the rate of 6% per annum on the out-
standing balance of the individual accounts from the
dates of expenditure of each. Interest at the rate
of 6% per annum shall be added monthly to the outstand-
ing balance on the 25th day of each month.
6.
The monthly instalments of $10,000 each
shall commence to be paid or deducted from the balance
due on division of earnings on or before but not later
than the 25th day of the month following the date (a)