CO129-332 - Public Offices & Others - 1905 — Page 177

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It is hereby agreed that the amount required for the payment of

interest and repayment of principal together with a sum of one

quarter of one per cent. on such amounts to cover commission to the

Hongkong and Shanghai Banking Corporation who are hereby

appointed agents for the service of repaying the Loan shall be paid

to them in Hongkong fourteen days before the due dates in

sycee sufficient to meet such payments in sterling in London, exchange

for which shall be settled with the Hongkong and Shanghai Banking

Corporation on the said date of payment at the rate fixed at the time

of settlement.

The Chinese Government unconditionally undertakes and

hereby promises to pay the principal of the Loans and the

interest on the Loans on the due dates fixed therefor. If at

any time the earnings of the Railway and proceeds of the

Loan are not sufficient to pay the interest of the Bonds the Railway

Administration is to devise means for supplying the deficiency

and should its inability to do so appear probable the Director

General will memorialise the Government to take measures to make

up the deficiency from other sources, and thus be ready to pay off the

indebtedness, so that the required amount may be placed in each case

at least fourteen days previous to the due date of such interest in the hands of the Honghong and Shanghai Banking Corporation in

Hongkong.