433
the
A
After certain minor verbal alterations in the text of other Articles, and a general review of the whole contract, Mr. BLAND submitted a summary of the Consulting Engineer's estimates lately received from the board, and basing thereon the opinion that a supplementary loan might be required or additional funds provided by the Chinese Government under the terms of Article 2, asked for amendment of Article 5 so as to provide in such case for a proportionate increase in the Corporation's commuted commission. This, after some discussion, was agreed to in respect of any supplementary loan but T'ANG SHAO-YI declined to accept the condition as applicable to any additional expenditure which the Chinese Government might make from its own funds.
In this connection, Mr. BLAND raised the question of branch lines as a matter affecting the interests of the Bondholders, and of the Corporation respectively, and asked for the inclusion of a clause, similar to that in the Northern Railway Loan Agreement, to provide for the financing and construction of branch lines, when required by the Viceroy, either from the Chinese Government's funds, or by further loans from the Corporation. He pointed out that such lines could not be satisfactorily worked or financed except as part of the main line system, and that it would obviously be to the detriment of the undertaking, as a security, were loans raised elsewhere, or separate administration introduced.
T'ANG SHAO-YI stated that the Chinese Government might be expected to deal with the question of branch lines without prejudice to the interests of the Government Railway, but declined to record any such conditions in the present Loan Agreement - for the same reason he declined to insert a Clause having reference to the Railway working in connection hereafter with the Hankow Canton trunk line.
Finally the price of the Loan was discussed, expressing the opinion that the Viceroy, having fully accepted 95, it was impossible to recommend to the Government an agreement at 98. The matter
433
the
A
After certain minor verbal alterations in the text of other
Articles, and a general review of the whole contract, MK. BLAND
submitted a summary of the Consulting Engineer's estimates lately
received from the board, and basing thereon the opinion that a
supplementary loan might be required or additional funds provided by the Chinese Government under the terms of Article 2. asked for
amendment of Article S so as to provide in such case for a propor-
ticnate increase in the Corporation's commuted commission. This,
after some discussion, was agreed to in respect of any supplement-
ary loan but 8.0. T'ANG SHAU-YI declined to accept the condition
as applicable to any additional expenditure which the Chinese
Government might make from its own funds.
In this connection, MB. BLAND raised the question of branch
lines as a me.ter affecting the interests of the Eondholders, and
of the Corporation respectively, and asked for the inclusion of a
clause, similar to that in the Northern Railway Loan Agreement, to
provide for the financing and construction of branch lines, when
required by the Viceroy, either from the Chinese Government's
funds, or by further loans from the Corcoration. He pointed out
that such lines could not be satisfactorily worked or financed
except as part of the rain fins syster, and that it would cbvious-
ly be to the detriment of the undertaking, as a security, were
loans raised elsewhere, or separate administration introduced.
H.B.T'ANG SHAO-YI stated that the Chinese Government might be
expected to deal with the question of branch lines without
prejudice to the interests of the Government Railway, but declin-
ed to record any such conditions in the present Loan Agreement-
for the same reason he declined to insert a Clauss having refer-
ence to the Bailway working in contection hereafter with the
Hankow Canton trunk line.
Finally the price of the Loan was discussed, 8.5. expressing
the coinico that the Viceroy, having fully excepted 95, it was
impossible to recommend to the Government an agrement at 98. The
matter
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