CO129-372 - Public Offices - 1910 — Page 244

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Enclosure 2 in No. 1.

British and Chinese Corporation to the Banque de l'Indo-Chine, the Deutsch-Asiatische Bank, and Messrs. Morgan, Grenfell, and Co.

Dear Sirs,

3, Lombard Street, London, May 27, 1910. I AM directed to inform you that, at a meeting of the board of directors held yesterday, it was resolved that this corporation, which, with Chinese Central Railways (Limited), constitutes the British group, hereby confirms the proceedings of the representatives of the British group at the meetings of the French, German, British, and American groups at Paris on the 23rd and 24th instant, and adopts the minutes of those meetings and the agreement of the 23rd instant between the groups signed by the respective representatives.

Agreeably with the understanding come to in Paris and expressed in the minutes of the 23rd instant, the British group is informing the British Government of the agreement arrived at in Paris with all necessary documents, and requesting the Government to join with the French, German, and American Governments in an identic note to the Chinese Government requesting that Government to complete the loan agreement, and a supplemental agreement in the form approved in Paris, providing for the inclusion of the American group as parties to the loan.

Enclosed is a copy of the telegram which, at the request of the British group, the Hong Kong and Shanghae Banking Corporation is sending to-day to its Peking agent.

I am, &c.

A. N. FREWER, Secretary.

Enclosure 3 in No. 1.

Hong Kong and Shanghue Banking Corporation to its Peking Agent.

(Telegraphic.)

May 27, 1910. WE are informing Foreign Office of Paris agreement between the four groups, and requesting Foreign Office instruct His Britannic Majesty's Minister in Peking join with German, French, American Ministers address identical note to the Chinese Government requesting signature agreement initialled 6th June, with supplementary agreement, so as to include American group. Please note amortisation table requires revision; also that the four groups have altered the draft supplementary agreement, namely, the one sent home by W. D. Straight to Morgan, Grenfell, and Co. on 23rd September as the latest draft.

C

Article 2. Strike out the words commencing 'one half" and ending with "1,500,000 inclusive," and substitute the words "one quarter of the whole loan." Strike out the last twenty-eight words.

Article 3, last clause. Substitute "one quarter" for "one half." Substitute the word “ these" for the." Strike out the words "for the Hupeh section of the Szechuan-Hankow line."

Enclosure 4 in No. 1.

Memorandum of Terms of Agreement respecting the Hankow-Canton and Hankow-Chengtu Railway Loan Negotiations come to at a Meeting at the Banque de l'Indo-Chine, Paris, on May 23, 1910.

Parties:

The British and Chinese Corporation (Limited) and the Chinese Central Railways,

(Limited), representing the British Group;

The Deutsch-Asiatische Bank, representing the German Group; The Banque de l'Indo-Chine, representing the French Group; Morgan, Grenfell, and Co., representing the American Group.

THE British German, French, and American groups agree to enter into an agreement with the Chinese Government for a loan of 6,000,0001., and any supple-

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mentary loans to be issued in connection therewith for the above railways on the basis of the two draft agreements approved by the parties hereto and initialled by them being the draft original loan agreement, with accompanying despatch and a draft supplemental loan agreement.

2. This loan to be divided equally between the four groups, and to be issued simultaneously.

3. All orders for materials to be divided as far as possible equally between the four groups.

3A. The American group shall share equally in the commissions on the purchase of materials, plant and goods allowed by the terms of article 18 of the original loan agreement.

4. In regard to the appointment of chief engineers and sub-engineers, for the lines contemplated by the original loan agreement, it is agreed that the chief engineer for the Hankow-Canton Railway is to be appointed by the British and Chinese Corporation (Limited); that the chief engineer for the Ichang-Hsiangyang-Kuangchui line and the Iehang-Hanyang line, to the length of about 800 kilom., is to be appointed by the German group, which is to provide for the appointment by the American group of a sub-engineer for a section of these lines to the length of about 200 kilom. With regard to the proposed extension of the line from Ichang or Hsiangyang to Chengtn, which is estimated to be 1,600 kilom. in length, the chief engineer for the first 400 kilom. is to be appointed by the American group; the chief engineer for the next 600 kilom. is to be appointed by the British group, and the chief engineer for the remaining 600 kilom. is to be appointed by the French group. If the extension of the line above referred to should be less than 1,600 kilom. in length, then the above-mentioned lengths of 400, 600, and 600 kilom. shall abate proportionately. If the extension of the line above referred to should exceed in length 1,600 kilom., then the appointment of chief engineers of the excess between 1,600 kilom. and 2,200 kilom. shall be apportioned equally between the American, British, and French groups. If such extension should exceed in length 2,200 kilom., then the appointment of chief engineers of the surplus over 2,200 kilom. shall be divided as nearly as possible equally among the four groups.

5. Each of the groups to apply to their respective bourses for the inter- nationalisation of the above loans.

6. The stamp duties on the bonds to be pooled and divided equally between the four 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.

7. The preliminary expenses incurred by the four groups prior to the signing of this agreement shall be shared by the four groups upon an equitable basis.

For the British Group:

CARL MEYER. C. S. ADDIS. G. JAMIESON.

For the German Group:

FR. URBIG. E. REHDERS.

For the French Group:

J. CAILLAUX. ST. SIMON. ULLMANN. CASENAVE.

For the American Group:

E. C. GRENFELL. H. P. DAVISON. MAX WARBURG. H. H. HARJES, WILLARD STRAIGHT,

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