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Great Britain, and should such honds not be recovered after a lapse of time to be fixed by the corporation, the railway administration, or the Chinese Minister in London, shall seal and execute duplicate bonds for a like amount and hand them to the corporation, by whom all expenses in connection therewith shall be defrayed.
Art. 11. The accounts of the receipts and expenditure of the extension shall be kept in the same way as those of the Imperial Railways of North China, and a report thereof shall be furnished to the head office of the Imperial Railways of North China to be published with their annual report.
All receipts and earnings of the extension shall be paid into the credit of the railway administration account with the Hong Kong and Shanghae Banking Corpo- ration, Tien-tsin, interest on the credit balance thereof being allowed at the bank's usual rates.
All expenses of working and maintaining the extension shall be paid from its receipts and earnings, the remainder of which shall then be charged with the service of the loan. If. after payment of these expenses, and making due provision for pay- ment of interest at 5 per cent. per annum on the bonds, and for repayments of principal due in accordance with the schedule hereto attached, there remain surplus funds unappropriated and properly available for other purposes, such funds shall, subject to the provisious of article 12, be at the disposal of the Imperial Chinese Government to be used in such manner as they may think fit.
Art. 12. It is agreed that during the time of construction of the extension the interest on the bonds is to be paid from the proceeds of the loan. The accruing interest from any proceeds of the loan not used during the period of construction, and the carnings derived from the working of any sections of the extension as they are built, shall be used to make up the amount required for the payment of the said interest, and if any deficiency remains it is to be met from the proceeds of the loan.
After completion of construction the amounts required for the payments of interest and the repayments of principal as specified in the schedule attached to this agreement, together with a sum of 4 per cent. on such amounts, to cover commission to the Hong Kong and Shanghae Banking Corporation, who are hereby appointed agents for the service of the loan, shall be paid to the said bank in Tien-tsin fourteen days before the due dates in local currency sufficient to meet such payments in sterling in London, exchange for which shall be settled with the Hong Kong and Shanghae Banking Corporation; but the railway administration shall have the option of settling exchange with that bank at any date or dates within six months previous to any due dates for the repayment of interest and principal.
After payment of interest and repayment of principal of the loan for the current year, the railway administration shall deposit with the Hong Kong and Shanghae Banking Corporation in Tien-tsin any surplus of the net revenue of the extension for that year up to the amount required to pay the following year's instalments of interest on the loan; the rate of interest on this deposit to be allowed at the bank's rates for current accounts or fixed deposits, as the case may be, to be arranged.
Art. 13. The Chinese Government hereby unconditionally undertakes to pay the principal of the loan and the interest on the loan on the due dates fixed therefor. If, at any time, the earnings of the extension, together with funds available from the proceeds of the loan, are not sufficient to meet the interest on the bonds and the repayment of principal in accordance with the schedule hereto attached, the deficiency shall be met, in the first place, from the sait hi-kin revenues specified in article 7, and if there should still remain a deficiency the railway administration shall devise means of meeting the same, and should its inability to do so appear probable the Viceroy of Manchuria, or in his absence his duly authorised representative, shall memorialise the Imperial Chinese Government to take measures to make up the deficiency from other sources, and thus be ready to pay off the indebtedness, so that the required amount may be placed in each case at least fourteen days previous to the due dates of such payments in the hands of the Hong Kong and Shanghae Banking Corporation.
Art. 14. The bonds of this loan, together with their coupons, and the income of the extension, shall be exempt from all Chinese imposts and taxes.
Art. 15. The term of the loan shall be thirty years. Repayment of principal shall commence after the expiry of ten years from the date of the loan and shall be completed in twenty years by equal annual instalments to the Hong Kong and Shanghae Banking Corporation as agents for the service of the loan, acting for the corporation under the terms of this agreement, in accordance with the schedule hereto attached,
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If at any time after the lapse of ten years from the date of the loan the Imperial Chinese Government should desire to redeem the whole outstanding amount of the loan, or any part of it not yet due for repayment in accordance with the schedule of repayments hereto attached, it may do so until the twentieth year by payment of a premium of 24 per cent. on the face value of the bonds (ie., by payment of 102. 10s. for each 1001. bond), and after the twentieth year without premium; but in each and every case of such extra redemption the Imperial Chinese Government shall give six months' notice in writing to the corporation, and such extra redemption shall be effected by additional drawings of bonds to take place on the dates of ordinary drawings as provided for in the prospectus of the loan.
Art. 16. It is understood and agreed that so long as this loan is unredeemed the extension shall under no circumstances be mortgaged to any other party.
As soon as this loan has been completely redeemed this agreement shall become null and void.
the
Art. 17. This agreement is signed under the authority of an Imperial edict dated which has been officially communicated to the British Minister
in Peking by the Wai-wu Pu.
Art. 18. 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 corporation, Should any doubt arise as to the interpretation of the agreement the English text shall be accepted as the standard.
Signed at month of the nineteen hundred and
by the contracting parties this year of the Emperor Kuang Hsü, being the
day of the
day of
Enclosure 3 in No. 1.
Construction Contract granted to Messrs. Pauling and Co.
THE Viceroy and Governor-General of Manchuria and the Governor of Fengtien are desirous to have the Peking-Mukden Railway line extended from Hsin Min-fu to Fakumen, and have decided to command the works to be constructed by Messrs. Pauling and Co. (Limited).
That it is agreed between the Manchurian Government and Messrs. Pauling and Co. (Limited), that the latter shall construct and complete the said line in a first- class manner.
1. That the line shall be of the same standard of construction as the Peking- Mukden Railway (outside wall).
2. That the land required for line, station, quarries, ballast, pits, and brickyards shall be provided by the Government of Manchuria.
3. The line being an extension of the Peking-Mukden Railway, cordial facilities shall be given by the railway administration, including wharfage for imported materials, the usual special rates for traffic to Hsin Min-fu, access to stone and sand supply on the Hsin Min-fu-Kaopantsze section.
4. All materials required for the construction of this extension line shall be exempt from duties and li-kin.
5. All questions of time and procedure, supply of rolling stock in time for construction, &c., shall be mutually arranged between Messrs. Pauling and Co. (Limited) and the consulting engineer, always provided that there shall be no unreasonable delay or hindrance to the commencement or progress of the works for causes outside of Messrs. Pauling and Co.'s control.
6. It is understood that the money will be raised or arranged for without any unnecessary delay, and that negotiations for this purpose shall be entered into immediately.
7. In order to expedite the project, it is agreed that we shall commence the survey without any unnecessary delay.
8. The bridges shall be of the same standard and carrying capacity as the Peking-Mukden Railway (outside wall).
9. For all living accommodation, station buildings, platform points, signalling, telegraph and telephone, and everything necessary for efficiency, a sum of 20,000, to include contractors' remuneration, is allocated and included in the mileage construc-
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