415
6
by the Imperial Chinese Government with the funds at their disposal from Chinese sources, and if foreign capital is required, preference will be given to the Syndicate banks.
4
Art. 20. By the Preliminary Agreement under Imperial sanction a participation of 20 per cent, of the net profits had been promised to the Syndicate banks in remuneration for their general responsibility and services. In commutation of this participation in net profits the Syndicate is granted the right to retain 200,000% out of the first issue of this loan, in instalments and on dates based on, and in proportion to, the terms of subscription to the loan as stated in the prospectus. No further payment in respect of commutation of profits will be allowed on any subsequent series of the loan, or on any supplementary loan.
Art. 21. After payment of interest and repayment of principal of the loan for any current year the Railway Administration will deposit with the Syndicate banks in Shanghae or Tien-tsin any surplus of the net revenue of the railway line for that year up to the amount required to pay the following year's instalment of interest on the loan, interest on the deposit being allowed on the best possible terms, with due regard to prevalent market rates.
Art. 22. The Deutsch-Asiatische Bank and the Chinese Central Railways (Limited) may, subject to all their obligations under this Agreement, transfer or delegate all or any of their rights, powers, and discretions thereunder to any German or British Company, Directors, or agents, with power of further transfer and sub-delegation; such transfer, sub-transfer, delegation, or sub-delegation to be subject to the approval of the Director-General.
the
Art. 28. This Agreement is signed under authority of an Imperial Edict dated which has been officially communicated to the Ministers of Great Britain and Germany in Peking by the Wai-wu Pu.
Art. 25. Five sets of this Agreement are executed in English and Chinese, three sets to be retained by the Imperial Chinese Government, and two by the Syndicate.
In the event of any doubt arising regarding the interpretation of the contract, the English text shall rule.
[This Document is the Property of His Britannic Majesty's Government.]
CHINA RAILWAYS,
CONFIDENTIAL.
[79]
Sir,
No. 1.
C.0.
3394 [January 1, 1908.]
SECTION JAN 08
British and Chinese Corporation to Foreign Office.—(Received January 1.)
22, Abchurch Lune, London, December 31, 1907. FROM telegrams which have been received by Chinese Central Railways, Limited, and by ourselves, from Mr. Bland, our joint representative in Peking, it would appear that His Majesty's Minister in Peking is now willing that the Agreement for the Tien-tsin-Yang-tsze Railway Loan should be signed, but that he is withholding his consent in consequence of the opposition in London of the British and Chinese Corporation.
In our letter of the 18th instant we intimated our view that the prior signature of the Tien-tsin-Yang-tsze Agreement would be fatal to the Soochow-Ningpo Agreement, and we ventured to express the hope that His Majesty's Minister might decide to maintain the position he had taken up of requiring the two Agreements to be signed simultaneously.
But while still of the opinion that the prior signature of the Tien-tsin-Yang-tszo Agreement will imperil the conclusion of the Soochow-Ningpo Agreement, the Board of the Corporation are prepared to defer to the authority and experience of His Majesty's Minister, and are willing that the decision should be left to Sir John Jordan's discretion.
We are, &c.
(The British and Chinese Corporation, Limited),
(Signed) per W. KESWICK, Chairman,
[2815 a-1]
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