File No. 893.51/1757
[Inclosure—Extract—Translation]
the loan agreement
The Bank of Communications of the Republic of China (hereinafter
described as A) with the object of reorganizing its business hereby
concludes with the Japanese Banking Group (hereinafter described as
B) of three banks, viz: the Industrial Development Bank, the Taiwan
Bank and the Chosen Bank a loan of five million yen (Y. 5,000,000).
The articles constituting the agreement for this loan are as
follows:
Art. 1: The proceeds of this loan shall be 5,000,000 yen (Y.
5,000,000) of Japanese currency.
Art. 2: The term of this loan shall run from the date of the
signature of this agreement for fully three years; that is, it shall
expire on the 19th day of the 1st month of the 9th year of the
Republic.
Art. 3: The rate of interest on the loan shall be 7.5 per cent per
annum; that is, for every 100 yen 7 yen and 50 sen shall be paid
each year.
Art. 4: The first payment of interest on the loan shall be reckoned
per diem from the date on which the whole amount of the loan
proceeds is paid (to the Bank) up to the 19th of the 7th month of
the 6th year of the Republic and the same shall be paid in advance.
Thereafter on the 20th of the 7th month and the 20th of the 1st
month of each year the interest for each half year shall be paid in
advance.
Art. 5: On receipt of the securities mentioned in Article 10 of this
agreement, B shall pay over the whole amount of the loan proceeds in
full (with the exception of the deduction of interest for the first
period). The proceeds shall be paid at Tokyo to the representative
of A.
Art. 6: On receipt of the full amount of loan proceeds mentioned
above, the representative of A may deposit the funds with the banks
of B as deposit and may draw on them for use at any time.
Respecting the terms of deposit and remittance of the loan proceeds,
the representative of A may discuss and arrange with B at Tokyo.
Art. 7: The proceeds of the loan shall be paid in full without
discount or commission.
Art. 8: The repayment of the principal and payment of the interest of
the loan shall take place at Tokyo.
Art. 9: A shall be permitted to repay the whole amount of the loan
before the term stipulated for redemption, but in so doing A must
notify B three months beforehand.
Art. 10: To safeguard the payment of interest and the repayment of
the principal A shall submit the following collateral to B as
security of the loan: (1) The loan bonds of the Lung-Hai Railway to
the face value of $1,300,000. (2) Treasury bonds issued by the
Chinese Government to the face value of $4,000,000. (3) Loan bonds
issued by the Chinese Government to the Bank of Communications to
the face value of $2,425,687.68.
Art. 11: In handing over the securities as mentioned above, A shall
issue a certificate to B transferring the same to B as security. The
same shall be handed over to B in Peking.
On receipt of the collateral mentioned above as security for the
loan, B should issue a receipt for the same to A.
Art. 12: In the event of failure of the redemption of the principal
or the payment of interest by A when the time becomes due, B shall
have power to dispose at will of the securities mentioned in Article
10 for the redemption of the loan and the payment of interest.
Art. 13: In case during the currency of the present agreement A needs
another loan, necessitating it to negotiate for the same from
foreign bankers, it should first negotiate with B for the same on
reasonable terms.
Art. 14: This agreement shall be submitted to the Chinese Government
for official registration by A.
This agreement shall be made out in two copies in the Chinese and
Japanese language each duly signed and sealed by the parties
concerned. A and B shall each have a copy of the agreement in both
languages.
[Page 124]
Signed this the 20th day of the 1st month of the 6th
year of the Republic of China; that is, the 20th day of the
1st month of the 6th year of Taisho [i. e., January 20,
1917].
(Sealed)
Tsao Ju-lin,
Managing Director of the Bank of
Communications
(Sealed)
Jen Feng-Pao,
Assistant Manager of the Bank of
Communications
(Sealed)
Shitate,
Managing Director of the Industrial
Development Bank
(Sealed)
Ninomiya,
Acting Representative
