CO129-331 - Public Offices - 1905 — Page 49

13 NOV 05

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73

Inclosure 2 in No.

Agreement for Loan between Wuchang Viceroy and Hong Kong and Shanghae Bank. Signed at Wuchang, August 28, 1900.

THIS Agreement is made between his Excellency Chang, Viceroy of the Hukuang provinces of China, acting under his Viceregal powers for himself and his successors of the one part, and the Hong Kong and Shanghae Banking Corporation, acting for the Government of Great Britain, of the other part.

Whereas, hostilities having broken out in the north of China, the Viceroy has undertaken to afford protection to foreigners and foreign property within his juris- diction, and to maintain order therein; and whereas, in order to assist towards the above object funds are now urgently required for the payment of the troops under the Viceroy's control; and whereas, the Viceroy has officially applied to the Government of Her Britannic Majesty for financial assistance for the payment of the said troops, with a view to the preservation of order in the Yang-tsze region, it is now agreed as follows:

1. The Bank hereby agrees to lend to the Viceroy, on the unconditional guarantee by the British Government of the principal and interest of the loan, the sum of 75,0007.

2. The term of the loan shall be ten years, calculated from the 25th day of August, 1900, and repayment of principal shall be made by ten equal annual instal- ments of 7,5007. cach, commencing at the end of the first year.

3. Interest on the loan shall be paid at the rate of 4 per cent. per annum, calculated half-yearly on the amount of the principal from time to time out- standing.

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 Hong Kong and Shanghae Banking Corporation in Hankow, in Hankow syece, at a sterling exchange which will be fixed by the Bank for each payment on a current basis.

5. This loan shall be secured by a second mortgage on the Icbang Salt Li-kin, already charged with the service of the Chinese Imperial Government 44 per Cent. Sterling Loan of 1898, and shall rank, as regards security for principal and interest, immediately after that loan. In case of need it shall be open to the Viceroy to supplement the revenue of the Ichang Salt Li-kin by other revenues of his provinces for the service of the present loan; but in ease of default with regard to a payment of interest or repayment of principal of the present loan, the Viceroy may be called upon by Her Britannic Majesty's Government to appropriate and place under the administration of the Imperial Maritime Customs further approved revenues as its security.

6. This loan shall be further secured by deposit with Her Majesty's Consul- General at Hankow of sterling -kin yearly bonds, equal in value altogether to the total amount of the loan, principal, and interest, sealed by the Viceroy of the Hukuang provincos and by the Treasurer of Hupei, and countersigned by the foreign Commissioner of Customs at Hankow. In the event of the money to meet a payment of interest or instalment of principal not being handed to the Hong Kong and Shanghae Banking Corporation at its branch in Hankow on due date, these li-kin bonds shall become available for the payment of li-kin in the Province of Hupei, and the provincial authorities shall be instructed accordingly.

7. The proceeds of this loan shall be paid within two months by the Hong Kong and Shanghae Banking Corporation at Hankow, to the order and at the direction of Her Majesty's Consul-General at that port, who may require from the provincial authorities concerned such evidence as he may deem necessary of the due employment of the funds for the object stated.

8. This Agreement is executed in triplicate in English and Chinese, one copy to be retained by the Viceroy, one by Her Majesty's Consul-General at Hankow, and one by the Bank. In the event of any doubt arising as to the interpretation of the contract, the English text shall rule.

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