PUBLIC RECORD OFFICE
Reference :-
TC.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
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stances it would be only natural that she should turn to the nation who have shown their disinterestedness and good faith in railway matters.
Please use your best endeavours to bring these considerations home to the Viceroy, and to any persons you have access to who are in a position to influence his attitude.
Enclosure 3 in No. 144.
DRAFT LOAN REDEMPTION AGREEMENT.
(Revised to September 7, 1905.)
Yours, &c.,
Ernest SATOW.
This agreement is made between His Excellency Chang, junior, guardian of the Heir Apparent, Viceroy of the Hu Kwang Provinces of China, oting under his Viceregal powers--and--with-the-imperini-sanction for--himself-and-his--ourremtors--in-office of the one part, and the Government of Hong Kong of the other part.
The Viceroy has been imperially appointed to devise means for the resumption of the Canton-Hankow Railway, and the present loan has been referred to the throne, and His Majesty the Emperor of China has issued a decree approving of an agreement being made by the Viceroy of the Hu Kwang, the two Kwang provinces, and the Governor of Hunan for themselves and their successors in office.
Whereas the Viceroy is charged with the settlement of all questions concerning the Hankow-Canton Railway, and for this purpose is in need of funds to redeem the concession for the building thereof heretofore granted to an American Company, and whereas the Viceroy has officially applied to the Government of His Britannic Majesty for financial assistance, with-a-view-to the de-performance of the sail to buy back the shares of the said American Company, and so perform the said special charge laid His Excellency, and whereas the Government of Hong Kong has agreed at the instance of Government of His Britannic Majesty to afford His Excellency the Viceroy the assistance applied for, it is now agreed as follows:-
upon
1. The Government of Hong Kong agrees to lend to the Viceroys of the three provinces of Hupeh, Hunan, and Kwang Tung the sum of one million one hundred thousand pounds sterling, as set forth in Clause 7 below. The exact division of the responsibility for this sum will be settled and announced later.
2. The term of the loan shall be ten years, calculated from the 7th-day-of November 6th day of October, 1905, and repayment of principal shall be made by ten equal instalments of £110,000 each, commencing on the 7th day of November 6th day of October, 1906, provided that at any time after the payment of the fifth annual instalment the Vinery three provinces shall be at liberty on giving six calendar months' notice beforehand to pay off the whole amount of the principal then outstanding with interest up to the date of such paying off only and thereupon this agreement shall cease and determine.
3. Interest on the loan shall be paid at the rate of 44 per cent., calculated half-yearly on the amount of principal from time to time outstanding.
4. All payments of interest and repayments of principal shall be made in accordance with the amounts and dates of the schedule attached to this agreement to the Treasurer of Hong Kong at Hong Kong, in sterling sight drafts or such equivalent of the same as the Glovernment of Hong-Kong may-en-ench-orunciou agree-tv-adeepk in-lien-thereof sterling amount at the option of the Government of Hong Kong.
5. This loan shall be secured by a first mortgage on the opium revenues of the three provinces of Hupei. Hunan, and Kwang Ting, and shall, as regards security for principal and interest, rank before any loan hereafter raised on the security of those revenues, and the priority of this loan shall be expressly stated in any agreement for such subsequent loan secured wholly or in part on the said opium revenues. In emas of uoad-it shall be open-to the Vierux-to Should hereafter the opium revenues of the three provinces not suffice to meet the payments, the Viceroy at Wuchang may agree with the Governments of Hunan and Kwang Tung as to which province's quota is insufficient, and such province shall supplement the above opium revenues by other revenues of -his-rovinees for the service of the present loan; but in case of default with regard to payment of interest or repayment of principal of the present loan the Viceroy may he called upon by His Britannio Majesty's Government to agree with the Hunan and Kwang Tung Governments as to which
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province is in default, and that province shall appropriate and place under administration of Imperial Maritime Customs further approved revenues as its security.
6. This loan shall be further secured by deposit with His Britannic Majesty's Consul-General at Hankow of sterling likin yearly bonds, equal in value altogether to the total amount of the loan, principal and interest, sealed by the Viceroy of the Hu Kuang provinces, and countersigned by the Foreign Commissioner of Customs at Hankow. In the event of the money to meet a payment of interest or instalment not being handed to the Hong Kong Treasurer at Hong Kong on due date these likin bonds shall become available for the payment of likin in the Hu Kuang and Kwang Tung provinces; and the Provincial Authorities shall be instructed accordingly.
7: The proceeds of this lean shall be paid by The Government of Hong Kong to the order of the Viceroy at New York in two instalments, namely the-equivalent of two million gold dollars on-20th-September, 1995, and the balance of the £1,109,000, less interest on the first instalment at 41-per-cent-from-20th September to 20th November, 1905, inclusive, on the 27th November, 1000, and the Hong Kong Government. Of the proceeds of this loan the Govern ment of Hong Kong on the 6th day of October shall remit £400,000 to the Hong Kong and Shanghai Bank, Hankow, to the credit of Viceroy Chang, and shall on the said day also remit £700,000 to New York, to the credit of His Excellency Liang and the Hong Kong Government may require from the Viceroy through His Britannic Majesty's Consul-General at Hankow such evidence as he may deem satisfactory of the due employment of the funds for the object stated.
8.
On Before the execution of this agreement the Viceroy shall obtain has reported to the throne and has obtained an Imperial Decree approving and sanction- ing this loan agreement, which decree shall be communicated to His Britannic Majesty's Minister at Peking by the Chinese Foreign Office before any of the proceeds of this loan-become-payable.
9. The Viceroy guaranteed that has by telegraph consulted the Viceroy of the Liang Kuang unsents who has replied consenting to the pledging of the opium revenues of Kuang Tung, and to the terms of this agreement, so far as they affect that province.
To.
This agreement is executed in quadruplicate six parts in English and Chinese, one copy to be retained by the Viceroy of the Hu Kuang, one copy by the Viceroy of the Liang Kuang, one copy by the Governor of Hunan, one copy by the Government of Hong Kong, one copy by His Britannic Majesty's Minister at Peking, and one copy by His Britannic Majesty's Consul-General, Hankow. In the event of any doubt arising as to the interpretation of the contract, the English text shall rule.
the
Signed at Wuchang by the contracting parties this
day of
moon of the year of the reign Kuang Hsu, being the day of 1905, western calendar.
(fis Britannic Majesty's Consul-General, Hankow, For the Government of Hong Kong.
36010
SIR,
No. 145.
CROWN AGENTS to COLONIAL OFFICE.
(Received October 9, 1905.)
Viceroy.
[Copy to Governor and to Foreign Office, October 12, 1905. Secret L.F.] (Confidential.)
Whitehall Gardens, London, S.W., October 9, 1905.
Hong Kong£1,100,000 Loan.
I HAVE the honour to report, for the information of the Secretary of State,
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