File No. 893.51/18
[Inclosure—Translation]
twenty million yen loan agreement between the
chinese bank of communications and the japanese industrial
development bank, september 28, 1917
The Bank of Communications of the Republic of China (hereinafter
referred to as A), with the object of reorganizing its affairs, in
addition to the loan of Yen 5,000,000,
[Page 151]
concluded on the 20th day of the 1st month of
the 6th year of the Republic of China (the 20th day of the 1st month
of the 6th year of Taisho, i. e., January 20, 1917) with the
Japanese Industrial Development Bank (hereinafter referred to as B),
representing the Japanese Industrial Development Bank, the Bank of
Chosen, and the Bank of Taiwan, will make a supplementary loan of
Yen 20,000,000, and has agreed upon the following articles:
Article 1. The amount of this loan will be Yen 20,000,000.
Article 2. The repayment of the principal of this loan will take
place three years after the date of signing this agreement, or on
the 27th day of the 9th month of the 9th year of the Republic of
China, that is, on the 27th day of the 9th month of the 9th year of
Taisho (September 27, 1920).
Article 3. The rate of interest of this loan will be 7½% per annum,
that is, on every Yen 100 there will be paid Yen 7.50 interest.
Article 4. The first interest on this loan will be reckoned in
accordance with the number of days from the date of the payment of
the principal to the 14th day of the 1st month of the 7th year of
Taisho (January 14, 1918) and will be paid in advance. Thereafter
six months interest will be paid in advance on January 15th and July
15th of each year.
In case A should be in arrears in regard to the interest payments
referred to in the preceding paragraph A will pay interest to B on
the delayed interest payments at the rate of 7½% per annum.
Article 5. Upon receipt of the loan, A will deposit it with B to be
drawn upon at any time as needed, the arrangements in regard to the
interest on the deposit and the remittance of the loan funds to be
separately agreed upon.
Article 6. The loan will be paid at face value and there will be no
commission charges.
Article 7. The repayment of the principal and the payment of the
interest of this loan will take place at Tokyo.
Article 8. The whole or a part of this loan may be repaid before due
date but in such case A must give prior notice three months in
advance.
Article 9. A will give the following security for the repayment of
the principal and the payment of the interest of this loan:
A Treasury Certificate of the Republic of China of the face value of
$25,000,000.
Article 10. A will draw up and hand to B at Peking a power of
attorney, empowering B to receive the full amount of the security
named in the preceding article at face value. B will draw up and
hand to A a certificate setting forth that the security is held in
trust.
Article 11. In case A should be in arrears in regard to the repayment
of the principal and the payment of interest, B can apply the
security named in Article 9 at will to the settlement of the
account.
Article 12. In case during the period of this loan A should require
another considerable loan from a foreign country, A will consult
first with B.
Article 13. The repayment of the principal and the payment of the
interest of this loan will be guaranteed by the Government of the
Republic of China.
Article 14. After receiving the guarantee mentioned in the preceding
article and the security named in Article 9, B will hand to A at
Tokyo the full gold face value of this loan less the deduction of
the first interest payment.
Two copies of this agreement in Chinese and two in Japanese will be
drawn up, signed, and sealed and A and B will each keep one copy of
each text. In case of disagreement in regard to the construction of
the agreement the Japanese will be the binding text.
The 28th day of the 9th month of the 6th
year of the Republic of China.
The 28th day of the 9th
month of the 6th year of Taisho (September 28,
1917).
Ts’ao, Ju-lin,
Director General of the Bank of
Communications
[
seal]
Jen Feng-pao,
Assistant Director General of the Bank of
Communications
[
seal]
“Chih-li-t’ieh-tz’u-lang,”
For the Industrial Development Bank
“
Shan-ch’eng-ch’ iao-liu,”
Manager of the Bank of Taiwan
[
seal]
