CO129-545-5 Purchase of new passenger coaches for Kowloon Canton Railway 10-11-1933 - 31-1-1934 — Page 7

Enclosure No.1

DRAFT.

7

1.

Conditions to be embodied in an Agreement between the Hong Kong Government and the Kwang Tung Provincial Government for a Loan not exceeding $240,000 (H.K.) for the cost of purchase through the Crown Agents for the Colonies of six Railway Coaches

complete, including cost of calling for Tenders and

delivery in Hong Kong, and all expenses in connection

therewith.

of

2.

3.

Repayment of the Loan shall be by instalments

not less than $10,000 per month.

The monthly instalments shall be paid by the

Chinese Section of the Railway through the British Sec-

tion of the Railway, and shall be a first charge against

the provisional monthly balances due from the British to

the Chinese Section on account of the division of

Through Railway earnings.

4.

The accounts showing the provisional balance

due from the British to the Chinese Section shall be

prepared and confirmed by the 25th day of the month

following that to which the accounts refer.

F.

Interest on all outgoings on account of the

Loan shall be at the rate of 6% per annum on the out-

standing balance of the individual accounts from the

dates of expenditure of each. Interest at the rate

of 6% per annum shall be added monthly to the outstand-

ing balance on the 25th day of each month.

6.

The monthly instalments of $10,000 each

shall commence to be paid or deducted from the balance

due on division of earnings on or before but not later

than the 25th day of the month following the date (a)