CO129-406 - Public Offices - 1913 — Page 47

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The Hon. Mr. Chu Chi Chi, JUL 13

Sir:-

Peking, June 6, 1913.

Minister of Communications, Peking.

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(JUL 7 1-j

46

I have the honour to inform you that the Board of Direc-

tors of the British & Chinese Corporation Limited have now consented to the proposed arrangements for advances on ac- count of the Canton-Kowloon Railway, on the following terms

and conditions.

1.

The British & Chinese Corporation Limited agrees to ad-

vance to the ministry of Communications the sum of Fifty

Thousand Pounds Sterling (250,000) to be placed to the credit

of the Canton-Kowloon Railway in the Hongkong & Shanghai Bank,

London. This sum will be advanced in one amount or in instal-

ments, as the ministry of Communications my decide, for the

term of 2 Years, calculated from the date of payment of the

first instalment. Interest will be at the rate of 87% per annum, calculated from the date of payment of each in-

stalment.

2.

Of the aforementioned advance the sun about £35,000 will be applied to the purchase of rolling stock and other urgent requirements of the Canton-Kowloon Railway, and about £15,000 to the payment of the Peking-Mukden Railway for rolling stock supplied to the Canton-Kowloon Railway.

3. The Ministry of Communications on behalf of the Chinese Government unconditionally accepts direct responsibility for this advance and hypothecates as security therefor the rolling stock purchased or to be purchased under clause 2. prom by Repayment will be made either 4 instabments of 212,500 every six monthɛ calculated from the date of payment of the first instalment, or in one amount at the expiration of 2 years,

calculated

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