PUBLIC RECORD OFFICE
Reference :-
TTIC.O. 882
6 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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Net Profit Certificates.
Of the net income or profit receivable by the Chinese Government from the railway, after defraying working and other expenses and interest, the British and Chinese Corporation shall receive 20 per cent. which shall be represented by and in form of certificates having a nominal capital, value of one-fifth of the nominal amount of the loan. Such certificates will entitle the holders to participate rateably in such 20 per cent. These certificates carry no interest, and to have a term of 50 years and a declared face value of £100 each. The Imperial Chinese Railway Administration may at any time redeem these certificates at their face value, but after the expiration of 50 years from date of issue of loan the certificates shall be null and void and need not be redeemed.
Bondholders' Representatives.
In all future negotiations respecting these loans or matters arising in connec- tion therewith, the British and Chinese Corporation shall be recognised as repre- senting the Bondholders and holders of Net Profit Certificates and empowered to act on their behalf.
Transfer of Rights.
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The British and Chinese Corporation may not transfer its rights under this agreement to other nations or people of any nationality except British or Chinese, símilarly the Chinese Government may not transfer any of its rights to persons of other nationality.
Competing or Rival Lines.
No other rival railway detrimental to the business of the Canton-Kowloon Railway is to be permitted, and no parallel line is to be allowed within the area served by the railway or any of its branch lines.
Telegraphs and Telephones.
Railway telegraphs and telephones shall be used only for the work of the rail- way and shall not in any way compete or interfere with the Imperial Chinese telegraphs.
Imperial Troops and Stores.
Imperial troops, ammunition and stores to be carried at half tariff rates. Protection for Railway and its Employees.
:)
The Chinese Government to provide full protection for the railway and its employees during construction and when in operation.
Force Majeure.
In event of contingencies beyond the control of the Corporation, such as war or very great political changes in China or elsewhere, the Corporation to be allowed a reasonable time for floating the loan or the bond issues thereof, or for the per- formances of its other obligations under the proposed agreement.
MEMORANDUM re PROPOSED AGREEMENT BETWEEN THE GOVERNMENT OF HONG KONG AND THE CHINESE GOVERNMENT FOR THE WORKING OF THE ENTIRE RAILWAY FROM CANTON TO PORT KOWLOON.
The Government of Hong Kong proposes to construct at its own expense a railway from Port Kowloon to the boundary of the Kowloon-territory under British control, and as the Imperial Government of China is about to raise a loan through the agency of the British and Chinese Corporation for the purpose of constructing a railway from Canton to the said same boundary, it is expedient that arrangements be discussed without delay so that the entire railway from Canton to Port Kowloon, although consisting of two parts, one the property of China and the other belonging to the Hong Kong Government, be constructed, maintained and worked as a single continuous railway, so that trains shall run and traffic be carried on continuously throughout the whole line without break or change.
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By the proposed system of unified construction and management much expense will be saved to both Governments, and the earning power of both railways will thereby be materially increased.
Simultaneously with the loan agreement about to be made between the Chinese Government and the British and Chinese Corporation and without prejudice to any of the rights of the Bondholders and of the Corporation as therein defined, it is proposed that an agreement be also entered into between the Chinese Government and the Hong Kong Government, whereby uniformity of construction in both rail- ways be assured and arrangements satisfactory to both Governments be made for the working of their respective lines when completed as if they were one concern.
The proposals put forward by the Hong Kong Government are briefly as follows:-
Land.
Each Government to provide the necessary land for its own section of railway, and sufficient for a double line of railway throughout.
Consulting Engineers.
The same Consulting Engineers to be employed, who shall have complete control over the construction of both sections whether carried out by contract or otherwise. The Consulting Engineers shall be appointed by mutual agreement between the Crown Agents for the Colonies as representing the Hong Kong Government, and the British and Chinese Corporation as representing the Chinese Government.
Class of Railway.
The railway when constructed to be a first-class railway on the standard gauge of 4 feet 8 inches, with all necessary accessories for the working of the traffic which may be reasonably expected thereon.
Rolling Stock.
The rolling stock supplied by each Government to be of the same kind through- out the whole line and owned by each Government, in shares proportioned to the mileage of their respective sections.
Simultaneous Construction.
The construction of the two sections to proceed simultaneously and at such rate
of progress as to be completed and ready to be opened at the same time.
Responsibility for Defects in Construction.
Each Government to be responsible for all defects of construction which may appear on its section during a period of two years after the opening of the line.
Protection.
Each Government shall be responsible for the policing of its own section. Board of Management.
As soon as the railway approaches completion, a joint Board of Management
shall be formed which shall have the entire control of the railway for the purpose
of the working thereof.
The said Board to be composed of six members, i.e.:—
two representing the Chinese Government;
one representing the British and Chinese Corporation;
two representing the Hong Kong Government;
and the General Manager, who shall be appointed by mutual agreement between the Hong Kong Government and the British and Chinese Corporation as representing the Chinese Government.
Three members of the Board to form a quorum, and the decision of the majority to be final on all matters within the competence of the Board and not contrary to this agreement.
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