APPENDICES APPENDIX A.-No. 1. PRELIMINARY AGREEMENT BETWEEN THE HONG KONG AND SHANGHAI BANKING CORPORATION AND DIRECTOR-GENERAL HU, RESPECTING THE PEKING-NEWCHWANG RAILWAY LOAN. THIS is a preliminary Agreement made between His Excellency Hu, Governor of Peking and Administrator-General of the Imperial Railways of North China within and without the Great Wall, hereinafter called the AdministratorGeneral, of the one part: and the Hong Kong and Shanghai Banking Corporation, representing a British Syndicate, hereinafter called the Syndicate, of the other part. 1. The Syndicate is hereby authorised by the Administrator-General to make arrangements to float and issue, on behalf of the Railway Administration, on the best terms obtainable on the market, a sterling loan for the equivalent of about (16,000,000 taels), for the construction of a railway line from Chunghou-sou to Hsin Ming-tien,1 and a branch line to Ying-tzu, and for the redemption of existing loans to the Tientsin-Shan-hai-kuan and TientsinLu-kou-chiao lines. 2 2. The security for the loan shall be the permanent way, rolling-stock, and entire property, together with the freight and earnings of the existing lines between Peking, Tientsin, Tang-ku, and Chung-hou-sou, and also of the proposed new lines when constructed, in addition to the rights of mining coal and iron, which will be retained by the Railway Administration on each side of the proposed new lines, for a distance to be determined. In the event of default or arrears in payment of interest or payments of principal, the said railway lines and mines shall be handed over to representatives deputed by the Syndicate, to manage them on their behalf, until principal and interest of the loan are redeemed in full, when the management will revert to the Railway Administration. It will, however, be provided that if such arrears are for a small sum, and it appears desirable to the Syndicate to extend the due date of their payment 2 Yingkow (Newchwang). 1 Hsinminting. for a term not exceeding three months, it shall be open to the syndicate to do 80. In the event of any special circumstances arising, necessitating the introduction of important changes by the management aforesaid, these changes shall be effected in consultation with the Administrator-General, and in the best interests of the railway. In the case of war or famine, troops and grain will be transported over the line on terms to be arranged hereafter. No further loan, charge, or mortgage shall be charged on the security named above until this loan is redeemed. 3. During the currency of the loan the principal members of the railway staff shall be capable and experienced Europeans, who shall be, as at present, appointed by the Administrator-General of the Railway, and may be, in the event of their misconduct or incompetency, dismissed, after consultation with the Chief Engineer. If there are Chinese, with sufficient engineering or traffic experience, they may be appointed as well as Europeans. Should it be necessary to appoint a new Chief Engineer, such appointment shall be made in consultation with the Syndicate. In addition to above, a capable and experienced European Railway Accountant shall be appointed to inspect all the accounts of the railways. All receipts and earnings of the lines herein specified shall be paid into the credit of the Railway Administration with the Hong Kong and Shanghai Banking Corporation, Tientsin, together with 50,000 taels annually payable under the Board of Revenue's arrangement, approved by the Throne, by each of the provinces of Shansi, Shensi, Honan, and Anhui, for railway purposes for ten years. All expenses of repairing and maintaining lines will be paid from this account, the remainder of which shall then be charged with the service of this loan. 4. The rate of interest, price, term of years, and other particulars shall be left to the Syndicate to arrange, on the best terms possible, on the market, when the moment appears favourable for floating the loan. Instalments of proceeds will be arranged as far as possible to suit the progress of construction and the requirements of the Administrator-General, interest being calculated from the date of such payments. The loan will be redeemable by annual drawings to be scheduled in the final agreement. Besides the drawings so scheduled the Administrator-General may from time to time, on giving due notification to the Syndicate, call for extra drawings to be held, bonds so drawn being redeemed by the Railway Administration at 20 per cent. premium on their par value. 5. If it shall be found that the loan cannot be floated without the introduction of some special attraction, the Administrator-General shall memorialise the Throne, recommending that a concession of mining rights be granted to the Syndicate at a point or points on the lines, and on terms to be arranged with the Syndicate on the basis of the Mining Regulations newly established by the Tsung-li Yamen. The requests of the Syndicate will be confined to mines within a distance of 5 li of the railway. 6. The date of issue of this loan shall be left to the discretion of the Syndicate, to be fixed in accordance with the state of the market, but should it be found impossible to issue it before the 1st day of October next, the Syndicate will arrange to advance to the Administrator-General, on or about that date, an instalment of about 2,000,000 taels on account of, and repayable out of the proceeds of the loan when floated. The terms of this advance shall be left to the arrangement of the Syndicate on the best terms obtainable, interest not to exceed the rate of 5 per cent. per annum, and the Syndicate shall be authorised to issue temporary bonds for the amount if required. 7. For the satisfaction of the investing public who are unacquainted with China a satisfactory report will be required from District Engineer, Mr. J. Ginnell, as to the condition and earning power of the old lines, and as to the route, prospects, and mineral wealth of the new lines to be constructed, and Mr. Ginnell shall be instructed by the Administrator-General to proceed to London as soon as possible after the signing of this preliminary Agreement, to confer with the Syndicate on these matters. 8. The terms of this preliminary Agreement will, immediately after signature, be submitted by the Administrator-General to the Throne for sanction by Imperial Edict, which shall be officially communicated by the Tsung-li Yamen to the British Minister in Peking. 9. Three months from the date of signature of this preliminary Agreement shall be allowed to the Syndicate to accept or decline its terms. Upon their confirmation by the Syndicate this preliminary Agreement shall be replaced by a definitive Agreement, providing for all details. Signed at Peking, this 7th day of June 1898, being the 19th day of the 4th moon of the 24th year of the Emperor Kuang Hsu. (Seal of Administrator-General of Railways within and without the Shan-hai-kuan For the Hong Kong and Shanghai Banking Corporation, (Signed) E. G. HILLIER, Agent. APPENDIX A.-No. 2. DEFINITIVE AGREEMENT BETWEEN THE BRITISH AND CHINESE CORPORATION (LIMITED) AND DIRECTOR-GENERAL HU RESPECTING THE PEKINGNEWCHWANG RAILWAY LOAN. THIS agreement is made between His Excellency Hu, Governor of Peking, as Administrator-General of the Railways of North China within and without Shan-hai-kuan, acting under the authority of the Imperial Chinese Government, hereinafter called the "Administrator-General," of the one part, and the Hong Kong and Shanghai Banking Corporation, for themselves and on behalf of the British firm of Jardine, Matheson & Co., representing as joint agents |