Directory_and_Chronicle_1924 — Page 295

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NEW CONSORTIUM AGREEMENT

SIGNED ON OCTOBER 15TH, 1920

The following is the full text of the new Consortium agreement:-

The Hongkong and Shanghai Banking Corporation, having its office at 9 Gracechurch Street in the City of London (hereinafter called the Hongkong Bauk") of the first part,

The Banque de L'Indo-Chine having its office at 15 bis Rue Laffite, Paris (hereinafter called "the French Bank ") of the second part,

The Yokohama Specie Bank, Limited, having its office at Yokohama in Japan (hereinafter called "the Japanese Bank ") of the third part, and,

Messrs. J. P. Morgan & Co., Messrs. Kuhn, Loeb & Co., the National City Bank of New York, the Guaranty Trust Company of New York, Messrs Lee, Higginson & Co., of Boston, and the Continental and Commercial Trust and Savings Bank of Chicago (hereinafter called "the American Managers") acting as to the United Kingdom by Messrs. Morgan, Grenfell & Co., of 22 Old Broad Street in the City of London and as to France by Messrs. Morgan, Marjes & Co., of Paris, of the fourth part.

Whereas the Hongkong Bank, the French Bank, the Japanese Bank, and the American Managers are acting for the purposes of this Agreement as the representatives of the British, French, Japanese and American Groups respectively, And whereas the British, French, Japanese and American Groups were formed with the object of negotiating and carrying out Chinese loan business,

And whereas their respective Governments have undertaken to give their complete support to their respective national groups, the parties hereto, in all operations undertaken pursuant to the agreement hereinafter contained and have further undertaken that in the event of competition in the obtaining of any specific loan contract the collective support of the diplomatic representatives in Peking of the four Governments will be assured to the parties hereto for the purpose of obtaining such contract,

And whereas the said national groups are of the opinion that the interests of the Chinese people can in existing circumstance best be served by the co-operative action of the various banking groups representing the investment interests of their respective countries in procuring for the Chinese Government the capital necessary for a programme of economic reconstruction and improved communications,

And whereas with these objects in view the respective national groups are prepared to participate on equal terins in such undertakings as may be calculated to assist China in the establishment of her great public utilities and to these ends welcome the co-operation of Chinese capital.

Now it is hereby agreed by and between the parties hereto as follows:--

1.-Each Group reserves to itself the right of increasing or reducing the number of its own members but so that any member of a group dropping out shall remain bound by the restrictive provisions hereof and any member of a group coming in shall become subject to the restrictive provisions hereof and so that no group shall (without the consent of the others) be entitled to admit into its group a new member who is not of its nationality and domiciled in its market. The admission of any new group shall be determined by the parties hereto, subject to the approval of their respective Governments.

2. This agreement relates to existing and future loan agreements which involve the issue for subscription by the public of loans to the Chinese Government or to Chinese Government Departments or to Provinces of China or to companies or corporations owned or controlled by or on behalf of the Chinese Government or any Chinese Provincial Government or to any party if the transaction in question is guaranteed by the Chinese Government or Chinese Provincial Government but does