4
the Marconi Company, to be designated by that company, shall be entitled to an additional vote.
10.--(a.) The Chinese Company shall utilise materials produced in China in preference to imported materials in all cases in which such materials are neither lower in quality nor higher in price than the imported materials.
(b.) The Chinese Company shall employ Chinese on its personnel, so far as may be found possible from the point of view of competency and economy.
(c) So soon as the Chinese Company's works are in operation a school shall be established near the works for the technical education of students, whereby they may obtain a practical, as well as theoretical, training to enable them to fill important positions in the Chinese Company. The expenses of the school shall be borne by the Chinese Company.
11. So soon as this agreement comes into effect the parties hereto shall proceed to the selection of a suitable site for the works of the Chinese company and to the appointment of the board of directors, who shall forthwith proceed to the settlement of arrangements for the acquisition of the site so selected and for the erection and equipment of the works.
12. The Marconi Company hereby covenants that during the period when the Chinese Company shall. under the terms of clause 3 above, be entitled to the use of the patent rights, designs, drawings, and secret processes of the Marconi Company, the Marconi Company will not grant similar rights to any other person for use in China in whole or in part, and during the period of this agreement the Marconi Company and their associated companies shall not sell wireless telegraph and telephone apparatus. material, and supplies in China except through the Chinese Company, and the Govern- ment, on its part, covenants that it will use all its power during the said period to prevent any other person within China infringing any of these rights causing loss to the Chinese Company, provided that previous application is made by the Chinese Company to the Government asking for the necessary protection.
13. In the event of dispute between the parties hereto regarding the amount to be paid to the Marconi Company under clause 2 (b) or any other clause in this agreement, the matter shall be referred to a court of arbitrators consisting of two nominees of the Government, two nominees of the Marconi Company, and a fifth to be selected by these four, making in all five members, the majority vote thereof to be final.
14. The Government agrees hereby that forthwith upon the execution of this agreement it will cause this agreement to be communicated to His Britannic Majesty's Minister at Peking by the Ministry of Foreign Affairs, whereupon this agreement shall come into full force and effect.
15. This agreement shall be executed in two exemplars, each of Chinese and English versions. In case of discrepancy, or in the event of doubt arising regarding the interpretation of this agreement, the English version shall rule.
In witness whereof this agreement is signed on behalf of the Government of the Republic of China by the Ministry of War, and sealed with the seal of the Ministry of War, and is signed on behalf of Marconi's Wireless Telegraph Company (Limited) by its duly authorised attorney.
In the presence of:
SOHTSU G. KING.
In the presence of:
GEO. W. FRODSHAM.
(Signed and chopped in Chinese),
TING CHING,
(Duly authorised by the Minister of War.) (Marconi's Wireless Telegraph Company (Limited)),
A. H. ĞINMAN,
(Attorney-in-fact.)
DRAFT.
Mr.
MINUTE.
17. Jumans 4/2/21
Beckett
Mr.
Mr.
Mr. Grindle.
Sir H. Lambert.
Bir H. Read.
Sir Q. Fiddes.
Col. Amery.
Lord Milner.
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