246
the working agreement.
Article 15.
commission of 3% is payable on all sums disbursed by the Bank on account of the service of the loan, during and after construction.
H.E. TANG SHAO-YI stipulates however that in the purchase of sterling drafts to pay the half-yearly amounts due for interest and capital, the Chinese Government shall be free to buy in the open market.
Considered by the Chinese representatives to be
Agreed that the Hongkong and Shanghai Bank's
Article 16.
superfluous.
Article 17.
No discussion.
Article 18.
A reasonable time limit to be conceded under the conditions stated, its period to be a matter for amicable arrangement between the Corporation and the Chinese Government.
Article 19.
H.E. TANG SHAO-YI observed that the freight charges etc. are matters to be regulated by the Director General of the railway in consultation with the Traffic Manager and Engineer-in-Chief and that the final arrangements are a matter for discussion and inclusion under the working agreement.
Article 20. Ma BLAND pointed out that this clause as drafted by the Viceroy would be prejudicial to the Chinese Government's interests, inasmuch as the investing public would not be likely to buy bonds under the conditions proposed. He suggested that a premium of 24% be paid on all bonds redeemed before the lapse of 25 years.
This question was left open.
As regards the method of repaying the capital, Kung Taotai explained that the Viceroy's intention is to redeem the bonds in 40 drawings one each year after the 10th year.
A
246
the working agreemont.
Article 15.
commission of 3% is payable on all sums disbursed by the Bank on
account of the service of the loan, during and after construction.
H.E.TANG SHAO-YI stipulates however that in the purchase of sterling
drafts to pay the half-yearly amounts due for interest and capital,
the Chinese Government shall be free to buy in the open market.
Considered by the Chinese representatives to be
Agreed that the Hongkong and Sha nghai Bank's
Article 16.
superfluous.
Article 17.
No discussion.
Article 18.
A reasonable time limit to be conceded under
the conditions stated, its period to be a matter for amicable
arrangement between the Corporation and the Chinese Government.
Article 19.
H.E.TANG SHAO-YI observed that the freight
charges etc. are matters to be regulated by the Director General
of the rail-way in consultation with the Traffic Manager and Engin-
eer-in-Chief and that the final
arrangements are a matter for
discussion and inclusion under the working agreement.
Article 20. Ma BLAND pointed out that this clause ao drafted
by the Viceroy would be prejudicial to the Chinese Government's
interests, inasmuch as the investing public wàuld not be likely to
buy bonds under the conditions proposed. He suggested that a
premium of 24% be paid on all bonds redeemed before the lapse of
This question was left open.
25 years.
As regards the method of repaying the capital, Kung Taotai
explained that the Viceroy's intention is to redeem the bonds in
40 drawings one each year after the 10th year.
No comments yet.
Private notes are available after approval.