135
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
When the Bonds and Net Profit Certificates of the Chinese Government have been paid off, the above Board shall be composed of six members appointed, three by each Government, including a General Manager to be selected by agreement between the contracting Governments.
Working Capital.
Each Government to provide for the working of the line a sufficient sum as working capital in proportion to the mileage of their respective sections.
Postal Service.
Each Government may require its postal service to be carried on the railway at special rates. which shall be uniform for each Government.
Maintenance.
The ordinary maintenance of the line to be defrayed out of current receipts. Any additional capital expenditure required for either section to be provided by the Government owning such section.
Accounts.
The receipts and working expenses of the whole of the railway shall be carried into the General Account and no distinction shall be made therein in respect of the two sections.
Proper books and accounts to be kept according to the best form in railway management.
Each Government may provide for the regular audit of account, and free access to the books will, when required, be given to the auditors.
Division of Profits.
From gross income will be deducted:
1. Working expenses;
2. Maintenance and repairs;
3. Miscellaneous expenses;
the balance will be net profit, to be divided in proportion to the actual cost incurred on the respective Chinese and British sections.
NOTE. Cost of land and commissions not to be included in the actual cost, each Government undertaking to find the land, &c.
Term of Agreement.
The agreement to continue for 55 years from the railway being first open for traffic.
Material Free of Duty.
All material required for the construction and working of the Hong Kong section or its branches to be exempt from Hong Kong customs duties, should any such duty be hereafter imposed.
Competing Railways.
1
Neither Government shall allow any railway or other system of carriage of passengers and goods in the territory of such Government which competes with or prejudicially affects the railway or either section thereof.
Fixed Rate of Exchange.
There shall be a fixed rate of exchange for all purposes connected with the railway and financial matters relating thereto between the two Governments, such rate to be fixed by the Board at the beginning of each financial year on the basis of the average rate ruling during the preceding six months.
21344
No. 101.
FOREIGN OFFICE to COLONIAL OFFICE.
(Confidential.)
SIR,
(Received June 21, 1905.)
[Answered by No. 105.]
WITH reference to my letter of the 15th instant, I am directed by the Marquess
Foreign Office, June 20, 1905. of Lansdowne to transmit to you, herewith, copies of telegrams from His Majesty's Minister at Pekin containing further information respecting the application of the Viceroy at Canton for a loan from this country to buy up the American shares in the Hankow-Canton Railway Concession.
It will be observed that the Viceroy is anxiously awaiting a reply to his pro- posals, and that the issue of this loan will involve other Concessions, and generally affect British interests in the Yangtse Valley and South China, which will be greatly advanced by an assurance of assistance from this country, while an unfavourable reply may react adversely on the negotiations for the Canton-Kowloon Railway, as the Viceroy of Canton is co-operating in this matter with the Viceroy at Hankow. In view of the above considerations I am to urge the need of a prompt reply to the question whether the Government of Hong Kong are likely to assist the Viceroy in the matter.
Enclosure 1 in No. 101.
I am, &c.,
F. A. CAMPBELL.
Sir E. SATOW, Peking, to the MARQUESS OF LANSDOWNE. (Sent 11.5 a.m., received 12 noon, June 18, 1905.)
(Decypher.)
TELEGRAM.
No. 121. Your telegram, No. 99.
[Hankow-Canton Railway Concession.]
Report seems to be correct. Following sent to Hankow, June 16th, No. 26:—
Secret. From New York news comes through Hong Kong and Shanghai Bank that Chinese Government are to pay 7,000,000 gold dollars for cancellation of Hankow-Canton Railway Concession.
It looks as if the Viceroy had not told you whole truth. Try to find out."
Reply received June 17, No. 28, as follows:-
"Before receipt of your telegram, No. 26, Private Secretary called on me and gave following from the Viceroy, who will be content if a credit for the amount is opened in his name in London on which he may draw cheques to pay for shares. Viceroy says that agreement is ready for signature at Washington, that the whole sum which he now places at £1,100,000 will have to be paid by the middle of December, and possibly half within two months.
"2. Security seems to have been unreported, but Viceroy wants this not to be told to Wai-wu-pu till his memorial sanctioned.
"3. Term ten years, with liberty to pay off any time after five
years.
"
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4. Interest 4 per cent.
"5. Agreement on the lines of the 1900 Loan Agreement.
6. No trouble as to the Imperial sanction or the issue of bonds if desired.
"Japanese Consul has written to Viceroy claiming that his offer made first should have been the first for consideration. He got infor- mation from Chang-sha I believe.
•
No. 94.