44
The railway, being the first mortgage security for the Loan, shall be built and equipped under the direction of the Representative of the Imperial Chinese Government, with the aid of the Corporation rendered through the Agency of the Engineer-in-Chief acting in his dual capacity and of its agents and representatives in China. The line shall be built as economically as possible in accordance with the best modern system.
It is understood that the Viceroy of Canton will secure all the necessary land for the Railway as well as other facilities and assistance for the purposes of its construction and working. The Railway will be built in the first instance as a single line but provision will be made, with the approval of H. E. the Viceroy, and wherever necessary to meet traffic requirements, for the eventual construction of a double line.
If during the time of construction, the proceeds of the Loan, together with the accrued interest thereon, payable by the Corporation, should, after deduction of the sums necessary for the payments of interest on the Loan, be insufficient to complete the construction of the Railway, the amount of the deficiency shall either be provided from the Chinese Government's own resources or by a supplementary Loan to be hereafter issued by the Corporation, the interest and other conditions of which supplementary Loan shall be the same as in the present agreement but the price thereof shall be arranged when the time arrives, having due regard to the conditions of the money market.
When the railway is completed, if there is a surplus from the sale of Bonds the said surplus shall be at the disposal of the Chinese Government either to redeem the Bonds in accordance with the terms of this agreement as hereinafter stated, or to be placed on deposit with Hongkong and Shanghai Banking Corporation for the purpose of paying interest on
44
The railway, being the first mortgage
security for the Loan, shall be built and equipped under the direction of the Representative of the Imperial Chinese Govern- -ment, with the aid of the Corporation rendered through the Agency of the Engineer-in-Chief acting in his dual capacity and of its agents and representatives in China. The line shall be built as economically as possible in accordance with the best
modern system.
It is understood that the Viceroy of
Canton will secure all the necessary land for the Railway as well as other facilities and assistance for the purposes of its construction and working. The Railway will be built in the first instance as a single line but provision will be made, with the approval of H. E. the Viceroy, and wherever necessary to meet traffic requirements, for the eventual construction of a double
line.
If during the time of construction, the
proceeds of the Loan, together with the accrued interest there- -on, payable by the Corporation, should, after deduction of the sums necessary for the payments of interest on the Loan, be in-
the -sufficient to complete the construction of the Railway, amount of the deficiency shall either be provided from the
Chinese Government's own resources or by a supplementary Loan
to be hereafter issued by the Corporation, the interest and other conditions of which supplementary Loan shall be the same
as in the present agreement but the price thereof shall be
arranged when the time arrives, having due rogard to the
conditions of the money market.
Then the railway is completed, if there
is a surplus from the sale of Bonds the said surplus shall be at the disposal of the Chinese Government either to redeem the
Bonds in accordance with the terms of this agreement as herein- -after stated, or to be placed on deposit with Hongkong and Shanghai Banking Corporation for the purpose of -paying interest
on
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