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that subscriptions could be simultaneously received in Shanghai, Hongkong and England, and suggested that the Chinese Government should either state definitely the amount of bonds to be reserved for China or that the Viceroy of Canton should take firm and be responsible for a fixed amount. The matter was left open, the meeting proceeding to discuss the question of price.
H.E. Tang Shao-yi suggested a 4% loan which, according to his information, should be obtainable at 96. This proposal was, however, abandoned as impracticable and the loan left at 5%, as regards the price, H.E. observed that whereas on previous occasions (e.g. the Northern and Nanking Railways) the Corporation had been obliged to pay large commissions to Chinese officials in order to conclude the contracts, no such necessity would arise in the present case and it should therefore be possible for the Corporation to deal at easier rates. He thought China should receive the benefit of this economy. His proposals, after long discussion, were either that the Corporation should undertake to give a fixed price of 96% per £100 or to float the loan deducting 41/2 points from the issue price; he requested Mr. Bland to telegraph submitting these terms for the Corporation's consideration.
Mr. Bland, while undertaking to comply with this request, observed that (apart from the fact that 96 was an impossible rate) it was extremely improbable, after recent experience in the Shanghai Banking Railway Loan, that the Corporation should consent to name any fixed price in the loan contract, even if the loan consisted of one issue only, inasmuch as the Corporation could not guarantee itself against fluctuations of the money market. It had been shown in the Nanking Railway loan that when the price of Chinese securities improved, the Chinese Government declined to be bound by the fixed price agreed to in that loan contract, claiming and obtaining the profit which by agreement was to go to the Corporation. If, however, the price should fall, the Corporation would be compelled to carry out its agreement. Under such conditions it was impossible
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that subscriptions could be simultaneously received in Shanghai, Hongkong and England, and suggested that the Chinese Government
should either state definitely the amount of bonds to be reserved
or
for China that the Viceroy of Carton should take firm and be res- ponsible for a fixed amount. The matter was left open, the meeting proceeding to discuss the question of price.
H.E.Tang Shao-yi suggested a 4% 0/0 loan which, according to his information, should be obtainable at 96. This proposal was, however, abandoned as impracticable and the loan left at 5 o/o, as regards the price, .E. observed that whereas on previous occasions (e.g. the Northern and Nanking Rotlways) the Corporation had been obliged to pay large commissions to Chinese officials in order to conclude the contracts, no such necessity would arise in the present case and it should therefore be possible for the Corporation to deal at easier rates. He thought China should receive the benefit of this economy. His proposals, after long discussion, were either that the Corporation should undertake to give a fixed price of 96% per £100 or to float the loan deducting 42 points from the issue price; he requested Mr. Bland to telegraph submitting these terms for the Corporation's consideration.
Mr Bland while undertaking to comply with this request, observed that (apart from the fact that 96 was an impossible rate) it was extremely improbable, after recent experience in the Shanghai Banking Ballway Loan, that the Corporation should consent to name any fixed price in the loan contract, avon if the loan consisted of one issue only, inasmuch as the Corporation could not guarantee itself against fluctuations of the money market.. It had been shown in the Nanking Railway oan that when the price of Chinese securities improved, the Chinese Government declined to be bound by the fixed price agreed to in that loan contract, claiming and obtaining the profit which by agreement was to go to the Corporation. If however, the price should fall, the Corporation would be compelled to carry out its agreement. Under such conditions it was impossible
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