i
2
Baron von der Goltz inquired if I had any objection to his seeing the Viceroy on the subject, to which I replied in the negative. He has since told me that the Viceroy, with whom he had an interview some days agu, professed to have no knowledge of the recent negotiations, bat promised to give the matter his consideration when he returned to Tien-tsin on the completion of the autumn manoeuvres.
I have, &c.
(Signed)
Inclosure 1 in No. 1.
TIEN-TSIN-CHINKIANG RAILWAY.
Chinese Counter-Proposals of 1903.
J. N. JORDAN,
THE Imperial Government of China authorizes the Syndicate Banks to issue a 5 per cent. gold loan for an amount of about 7,400,000l." The loan shall be dated the
and called "The Imperial Chinese Five per Cent. Tien-tsin-Chinkiang Railway Loan."
+
2. The loan is designed to provide the capital for the construction of Government railway lines from a point connecting the Imperial Railways of North China at or near Tien-tsin through Tetschou and Tsinan-fu to Ihsien near the southern frontier of Shantung, hereinafter known as the northern section of the Tien-tsin-Chinkiang Railway lines, and from Ihsien to Kwachow (Chiukiang) on the Yang-tsze-kiaug, hereinafter known as the southern section of the Imperial Chinese Railway lines, the total length of these two sections being about 982 kilom., equal to 1,800 li.
3. The capital so provided will include the funds required for the purchase of land, rolling-stock, and other equipment, and for working the lines, together with interest on the loan during the period of construction, which is considered to be six years from the actual beginning of the works, the commencement of the works not to be delayed beyond six months after this Agreement has been signed, within which period the sum of 500,0001, shall be placed at the disposal of the Board of Commissioners. In the event of construction works having to be stopped on account of the Syndicate Banks failing to supply the funds as specified in this Agreement, such sums as have been spent out of the 500,000, shall be considered as forfeited and the Agreement cancelled.
4. The rate of interest for the loan shall be 5 per cent, per annum on the nominal principal of each call, and shall be paid by the Board of Commissioners for account of the Imperial Chinese Government during the time fixed for the construction out of the proceeds of the loan, and afterwards out of the revenue of the lines named in half-yearly instalments as paid to the bondholders according to the amounts and dates of the Schedule attached to this Agreement.
5. The term of the loan shall be fifty years. Repayment of principal shall commence in the eleventh year from the date of the loan, and shall be made by a yearly sinking fund to the Syndicate Banks in yearly instalments out of the revenue of the lines according to the amounts and dates of the Schedule attached to this Agreement.
6. In the event of the Imperial Chinese Government wishing to redeem after the lapse of twelve and a-half years from the date of the loan, the outstanding amount or any portion of it not yet due it may do so at any time after the expiration of twelve and a-half years from the date of the loan, on condition that any bonds redeemed in excess of the amount mentioned in the Schedule shall be paid for at a premium of 21 per cent.
7. After the line has been completed the yearly payments due for amortization and the half-yearly payments due for interest, except as otherwise provided in clause 4, shall be made in accordance with the amounts and dates of the Schedule attached to this Agreement out of the net revenue of the railway line to the Syndicate Banks by the Board of Commissioners hereinafter mentioned, who shall hand to the Bank in Shanghae or Tien-tsin twenty-one days before the due dates named in the Schedule Funds in Shanghae or Tien-tsin, sycee sufficient to meet such payments in sterling in Europe, the rate of exchange for which shall be settled with the Bank at the best rate procurable in the market; these payments may, however, be made in Europe on
3
the date due if the Imperial Government desire to do so, and shall bear interest at the best market rate procurable from the date of payment by the Chinese Government to the date of actual payment to the bondholders.
In reimbursement of expenses connected with the service of interest and principal of the loan, the Syndicate Banks will receive a commission of 4 per cent. on the annual loan service.
S. I eft out; for the time being Chinese wish to drop this article altogether. 9. This entire loan shall be secured by a first mortgage on the permanent way, rolling-stock and entire property together with the revenue of the imes named in clause 2. No further loan, charge, or mortgage, shall be charged on this security except with the written consent of the Syndicate Banks nutil the present loan is redeemed. When the loan is completely redeemed clause 28 of this Agreement shall take effect.
10. The Syndicate Banks will be authorized to issue to the subscribers to the loan bonds for the amount of the loan in pounds sterling in such form in such languages, and for such amounts as shall appear advisable to the Syndicate Banks. These bonds shall be sealed in China by the Imperial Directors, and in Europe by the Ministers for China in London or Berlin as the case may be, as evidence that the Imperial Government of China is bound thereby as debtor of the loan. The form of such bonds shall be settled in consultation with the Imperial Directors. Whatever foreign language may be used for the purpose of the bonds the Chinese text shall also be printed thereon. In the event of bonds issued for this loan being lost, stolen, or destroyed, the Syndicate Banks shall immediately notify the Imperial Directors or the Chinese Minister in London or Berlin, as the case requires, who shall authorize the Banks to insert an advertisement in the public newspapers notifying that payment of the same has been stopped, and to take such other steps as may appear advisable or necessary according to the laws and customs of the country; should such bonds not be recovered after a lapse of time to be fixed by the Syndicate Banks the Imperial Directors, Chinese Minister in Berlin or London, as the case may be, shall seal and execute duplicate bonds for a like amount and hand them to the Bank by whom all expenses in connection therewith shall be defrayed.
11. All bonds and coupons and payments made and received in connection with the service of this loan, shall be exempt from all Chinese stamp taxes and imposts during the currency of this loau.
12. All details necessary for the prospectus and connected with the service after this interest and repayment of the principal of this loan not explicitly provided for shall be left to the arrangement of the Syndicate Banks in conjunction with the Imperial Directors, or with the Chinese Minister in London or Berlin, as the case may be.
The Syndicate Banks will be authorized to issue a prospectus of the loan as soon as- possible after the signing of the present Agreement,
The Imperial Government of China will instruct the Chinese Ministers in London and Berlin to co-operate with the Syndicate Banks in any matters requiring conjoint action, and the Chinese Minister in Berlin will sign the prospectus of the loan.
13. The loan is to be floated within twelve months from the date of this Agreement, and in ouc issue divided into several calls, the date of such calls to be determined by the requirements of the work as estimated by the Board of Commissions [sic] and subscriptions will be invited by the Syndicate in Europe and China both from Europeans and Chinese on equal conditions, preference being given to applications from the Chinese Government.
14. The Syndicate Banks shall take the loan at the price of 90 per cent. net on the nominal principal to the Chinese Government. The proceeds of the loan shall be paid to the credit of Tien-tsin Chinkiang Government Railway account with the Syndicate Banks in China, London, or Berlin, as the case may be. The payment into the credit of this account shall be made in such instalments and on such dates as the conditions allowed to the subscribers to the loan shall admit. Interest' at the best market rate shall be granted on the credit balance of this railway account. After deduction of the funds required for the service of interest and for commission on this service during the time of construction the Syndicate Banks will hold the proceeds with accrued interest to the order of the Board of Commissioners, and the Commissioners in drawing any sumus exceeding 10,000%, necessary for the construction shall give notice to the Syndicate Banks fourteen days before the day on which they are required.
15. If during the time of construction the whole amount of the instalments with accrued interest to be paid by the Syndicate Banks should, after deduction of the sums necessary for service of interest on the loan, not be sufficient for the construction of the railway lines, the amount of deficiency shall be provided by a supplementary loan to be
5
No comments yet.
Private notes are available after approval.