CO129-361 - Public Offices - 1909 — Page 520

0.0.

[This Document is the Property of His Britannic Majesty's Government.427

CHINA RAILWAYS.

CONFIDENTIAL.

[19104]

No. 1.

[May 2018 JUN

SECTION 2. 518

Papers communicated by Mr. C. S. Addis, May 20, 1909.

(1.)

量

Hankow-Canton and Hankow-Chengtu Railway Loan Negotiations.

Memorandum of Terms of Agreement come to at a Meeting at the Offices of the Deutsch- Asiatische Bank, Berlin, on May 14, 1909,

Parties: the British and Chinese Corporation (Limited), Chinese Central Railways (Limited), representing the British group; the Deutsch-Asiatische Bank, repre- senting the German group; the Banque de l'Indo-Chine, representing the French group.

THE Addis Memorandum of the 26th February, 1909, is accepted as the basis of the present arrangement in respect of the Hankow-Canton Railway and Hankow- Chengtu Railway.

2. The British-German-French groups agree to enter into an Agreement with the Chinese Government for a loan of 5,500,0001, and any supplementary loans to be issued in connection therewith for the above railways on the basis of the draft Agreement approved by the parties.

3. This loan to be divided equally between the three groups and to be issued simultaneously.

4. All orders for materials to be divided as far as possible equally between the three groups.

5. In regard to the appointment of chief engineers, the chief engineer for the Hankow-Canton Railway to be appointed by the British and Chinese Corporation (Limited), the chief engineer for the Ichang-Hsiangyang-Kuangchui line and the Ichang-Hanyang line to the length of about 800 kilom. to be appointed by the German group, and the chief engineer of the extension of the line from lebang or Hsiangyang to Chengtu to be appointed by Chinese Central Railways (Limited).

6. Each of the groups to apply to their respective bourses for the internationaliza-

tion of the above loans.

7. The stamp duties on the bonds to be pooled and divided equally between the three groups, but this is not to be treated as a precedent for future loans. All other expenses of issue to be borne by the respective groups.

8. A general Agreement to be entered into by the three groups providing for equal participation of all future railway loans in China, with as far as possible equal division of orders for materials, and with alternate appointments of engineers, except where the interest of any party can be shown to predominate. This general Agreement to be entered into for a fixed period to be agreed, but the determination of this general Agreement shall not affect the above arrangements in regard to the Hankow-Canton Railway and the Hankow- Chengtu Railway.

9. A general Agreement also to be cutered into by the Hong Kong and Shanghae Banking Corporation, the Deutsch-Asiatische Bank, and the Banque de l'Indo-Chine providing for equal participation in all future Chinese Government financial loans on the

[2264 - -2]