culty in issuing the bonds for the present loan, the Government by mutual agreement with the bank shall grant to the latter an extension of the time for carrying out the conditions of the agreement. If at the expiration of the designated time the loan has not been issued, the present agreement shall be considered as canceled. The Government in that case will repay to the bank the advance made according to article 3 of this agreement, with accrued interest, and the bank shall be entitled to no other compensation.

ART. 23. The bank is authorized, with the consent of the director general, to transfer the rights and obligations which it has obtained by this agreement, either wholly or in part to another Japanese subject, or to intrust them to another person as its attorney.

ART. 24. In order to secure a wide distribution of the bonds, the bank will be given the right to express the price of the bonds in English, French, and American currencies; the bonds will be printed in Chinese, Japanese, English, and French languages; the places of payment of the principal and interest on the loan to the holders of the bonds will be London, Paris, and New York, and the bank may issue the bonds either wholly or in part in the three cities named.

ART. 25. The present agreement, with its annexes, was ratified by the President of China on the 27th of December of the year 1915 (4th year of the Chinese Republic and the 4th year of the reign of Taisho, in Japanese chronology), regarding which an official communication was made by the Minister for Foreign Affairs to the Japanese Minister at Peking.

ART. 26. The present agreement is drawn up in four copies in the Chinese language and four copies in the Japanese language, of which three copies in each language will be delivered to the Government and one copy of each will be kept by the bank. Should it happen that there be a divergence between the texts of the Chinese and Japanese copies, the Japanese text will be given the preference. December 27, 4th year of the Republic.

ANNEX I.

December 27, 1915 (4th year of the Republic, according to the Chinese chronology, and December 27, 1915, 4th year of the reign of Taisho, according to the Japanese chronology), the Chinese Government (hereinafter called the Government) and the Yokohama Specie Bank (hereinafter called the bank) concluded between themselves an agreement for a loan for the purpose of building a line from Ssupingkai to Chengchiatun. With the object of accomplishing the earliest possible completion of operations, the parties have concluded also the following supplementary agreement. With regard to points not mentioned in the present annex, the text of the original agreement continues to be in force.

ARTICLE 1. Having regard to the fact that, in consequence of the European war, which has affected the money market most seriously, it is acknowledged that it is not feasible to issue the bonds at present, the Government, having it in view to start immediately building the Ssupingkai-Chengchiatun Railway, is borrowing from the bank 3,400,000 Shanghai taels.

ART. 2. The bank reserves to itself the right to return to itself the amount advanced, with accrued interest, in accordance with the first part of article 13 of the agreement, from the amount received from the sale of bonds. The Government and the bank must decide by mutual agreement the question of the feasibility and advantageousness of issuing the bonds.

ART. 3. The present advance is destined exclusively for the expenses of building the Ssupingkai-Chengchiatun Railway, which include payment for the expropriation of land, purchase of rolling stock, acquiring every kind of material and other articles required, and also the payment of interest while building and for operating

the road.

ART. 4. The payment of the interest on this advance will be effected 14 days in advance of the due date, from the amount of the advance, during the period of construction of the road, and upon completion of the construction, first of all from the revenues of the road and then, in case they should be insufficient, from other Government revenues.

ART. 5. The Government guarantees punctuality in the payment of the principal and interest of the present advance; if this advance and also the revenues of the road shall not be sufficient for the payment of interest and for the liquidation of the principal, the Government will make the necessary payments from other sources. ART. 6. Previous to the issue of the bonds of the Ssupingkai-Chengchiatun Railway, the revenues of the railway, and also all property of the road, movable and immovable,

already in existence or which may belong to it in the future, shall be considered as given to the bank as security for this advance.

ART. 7. The amount of the present loan shall be paid into the Shanghai branch of the bank for account of the Ssupingkai-Chengchiatun Railway, and the bank will pay the usual interest on this account. If the director general wishes to debit this account, at any one time, in a sum exceeding 200,000 taels he must inform the bank 10 days in advance.

ART. 8. The present advance will be expended in proportion to the requirements for the surveys and for the work of building the road, and the money will be paid by the bank, upon the presentation to it of a written order, signed by the director general and the chief accountant, supplemented by documents exactly designating the kind and cost of the work which is being undertaken.

December 27, 4th year of the Republic.

Minister of Finance.

Minister of Communications.

December 27, 4th year of the reign of Taisho.

Representative of the Yokohama Specie Bank.

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