CO129-333 - Governor Nathan - 1906 [1-4] — Page 82

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3.

for that purpose, it shall apply to the Corporation for the same.

4. The principal and interest of this loan are guaranteed by the

Imperial Government of China, and in the event of default in

payment of interest or repayment of principal at due date, the

Corporation shall immediately notify the Imperial Government of

China thereof, and the Imperial Government of China will there-

upon provide the funds necessary to meet such payment in sterling

in London. In the event of the Imperial Government of China

being unable to provide the funds necessary to meet a payment of

interest or principal when called upon by the Corporation to do

so in terms of this clause, the said railway lines and entire

property shall thereupon be handed over to representatives deput-

ed by the Corporation to manage on their behalf, until principal

and interest of the loan have been redeemed in full, when the

management will revert to the Railway Administration. It is pro-

vided that should arrears of interest or principal be for a small

sum, and it appear desirable to the Corporation to extend the due

date of their payment for a term not exceeding three months, it

shall be open to the Corporation to do so.

This arrangement which differs from other contracts in that

the Administrator-General retains control of the railway lines so

long as the principal and interest of this loan are regularly

paid, has been agreed to in consequence of the friendly relations

which have long existed between the Contracting parties.

5. No further loan shall be charged upon the security named

above, except through the Corporation, until this loan is redeem-

ed, and the Tsung-11-Tamen will hand to the British Minister in

Peking a written undertaking on behalf of the Imperial Government

of china that the railway lines named in this Agreement shall

never be alienated or parted with.

6.

During the currency of this loan the Chief Engineer of the

railways shall be a British subject. The principal members of

the railway staff shall be capable and experienced Europeans, who

shall be,maμARIEKINÈXEXμERŽERIKË Xxxp-xxxx as at present, app-

ointed by the Administrator-General of the Railways, and may be