FO371-24687 — Page 143

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Extract:

FINANCE & COMMERCE, AUGUST 7th, 1940.

RECONSTRUCTION GOLD LOAN.

The regulations governing the Reconstruction Gold Loan of the 29th year of the Republic (1940) are announced as followB:-

Article 1. The National Government, in order to raise funds to finance various enterprises of reconstruction, shall issue a gold loan to be known as the Reconstruction Gold Loan of the 29th Year of the Republic.

Article 2. Bonds of this Loan shall be divided into

two kinds, as follows:-

(a) British Gold (Sterling) Bonds, amounting to

£10 millions.

(b) American Gold Bonds, amounting to U.S.%50

millions.

The above-mentioned two kinds of bonds shall each be issued in two instalments. Half of the amount of each kind of the bonds shall be issued on May 1 and October 1 of the 29th Year of the Republic (1940). Each instalment shall amount to £5 millions and U.9.825 millions.

Article 3. Bonds of this Loan shall be bought and issued in the following manner:-

(1) In case payment is made in foreign currency or foreign exchange, the British or American Gold Bonds shall be issued according to the amount of British or American currency pald by the subscriber.

(2) In case payment is made in foreign currency or foreign exchange other than British or American currency, the British or American Gold Bonds shall be issued, according to the wishes of the subscriber, on the basis of the existing exchange rates.

(3) In case payment is made in legal tender notes (Fa-pi) (Chinese National currency), the British or American Gold Bonds shall be issued, according to the wishes of the subscriber, on the basis of the commercial rates of exchange approved by the Ministry of Finance.

Article 4. - Payment of principal and interest on this Loan shall be made according to the classification of the bonds.

ayment on the British Gold Bonds shall be made in British currency, and payment on the American Gold Bonds in American currency.

Article 5. This Loan shall bear interest at five per

cent per annum.

Interest shall be paid at the end of every six months.

Article 6. During the first two years from the date of issue of this Loan, only interest shall be paid.

Re- payment of principal shall begin in the 31st year of the Republic (1942). Each category of this Loan shall be completely redeemed within 25 years.

Public drawings shall be held for the partial redemption

of/

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