File No. 893.51/2034
[Enclosure—Translation]
Agreement for the renewal of the Chinese
Government Treasury bills
This agreement, made at Peking on the 19th day of July of the
seventh year of the Republic of China (the 19th day of July of
the seventh year of Ta Cheng) between the Chinese Government,
acting through its Minister of Finance, of the one part, and the
Yokohama Specie Bank (hereinafter called the Bank) of the other
part.
Witnesseth:
Whereas, according to the agreement
for the advance of yen 10,000,000, entered into by the above
contracting parties on the 28th day of August of the sixth year
of the Republic of China (the 28th day of August of the sixth
year of Ta Cheng), the repayment of the Treasury bills
(hereinafter called the old bills) of the sixth year of the
Republic (the sixth year of Ta Cheng) issued in Japan by the
Chinese Government will fall due on the 1st day of September of
the seventh year of the Republic of China (the 1st day of
September of the seventh year of Ta Cheng);
Whereas the Chinese Government acting
in accordance with the provision of Article 9 of the above said
agreement proposes to extend the period for the repayment of the
above bills; and
Whereas the Bank consents to take over
the Treasury bills of new issue for a period of one year as a
procedure for the renewal.
Therefore it is hereby agreed as follows:
Article 1
The Chinese Government shall authorize the Bank three days before
the due date of repayment of the old bills to issue in Japan the
Chinese Government Treasury bills for the nominal amount of yen
10,000,000, and the net proceeds of these bills for the Chinese
Government together with the principal as provided in Article 7
shall be used for the repayment of the principal of the old
bills.
[Page 152]
The Bank shall in accordance with the above provision hand to the
Chinese Minister in Tokyo the old bills to be returned to the
Chinese Government on the due date of their repayment and at any
time thereafter when such bills have been totally repaid.
The Treasury bills mentioned in the first clause of this article
shall be issued on the 29th day of August of the seventh year of
Ta Cheng and shall be entitled the Chinese Government Treasury
Bills No. B of the seventh year of the Republic (the seventh
year of Ta Cheng).
Article 2
The said Treasury bills shall be repaid within one year from date
of their issue.
Article 3
The interest of the said Treasury bills shall be paid in advance
in Japan at the rate of 7 per cent, that is to say the net price
of each yen 100 bill shall be yen 93.
Article 4
The said Treasury bills shall hereby be secured with priority by
a charge on the entire revenues of the Salt Administration of
China, subject to previous loans and obligations already charged
on the security thereof and not yet redeemed.
Article 5
The Chinese Government shall pay on the fifth day of each month
for a period of ten months from October of the seventh year of
the Republic of China (October of the seventh year of Ta Cheng)
till July of the eighth year of the Republic of China (July of
the eighth year of Ta Cheng), the equivalent of yen 1,000,000 in
Shanghai sycee or coins of the national currency out of the salt
revenue to the Bank in Shanghai to be remitted to the Bank in
Yokohama for the repayment of the principal of the said Treasury
bills.
The rate of exchange for such payment shall be such market rate
for telegraph transfer to Japan as will be settled with the Bank
on the date of payment or one month in advance.
The Bank in Yokohama, on receipt of the telegraph transfer for
such payment, shall duly enter it in the account and shall grant
interest thereon at the rate of 5 per cent calculated from the
date of receipt till ten days before the due date of repayment
of the said Treasury bills.
Article 6
The Bank may accept on the date of issue of the said Treasury
bills the old bills at their face value for the payment of the
said Treasury bills.
Article 7
The Chinese Government shall pay at Shanghai the equivalent of
about yen 803,000, being the interest payable in advance as
provided in Article 3 of this agreement and the service
commission provided in Article 9 together with the stamp tax of
about yen 3,000 for the said Treasury bills, in Shanghai sycee
or coins of the national currency ten days before the due date
of repayment of the old bills, the exchange for which shall be
settled with the Bank on the date of payment or one month in
advance.
Article 8
The Bank, after having issued the said Treasury bills and repaid
the old bills, shall supply the Chinese Government as soon as
possible a report on the net proceeds in gold of the said
Treasury bills and on the amount in gold of transfers made
according to Article 7 as well as the accounts for the repayment
of the old bills.
Article 9
The Chinese Government shall assign one hundredth of the total
nominal amount of the bills, that is yen 100,000, as the service
commission for the issue of the said Treasury bills, which sum
is to be paid to the Bank on the date of issue of the said
Treasury bills.
[Page 153]
Article 10
The Minister of Finance, on behalf of the Chinese Government,
shall first issue in accordance with the provision of Article 1
of this agreement a Treasury bill for the nominal amount of yen
10,000,000 on the date on which the said Treasury bills are to
be issued, and shall hand the same to the Bank in Peking.
The bill thus issued shall be returned by the Bank to the
Ministry of Finance as soon as the whole of the Treasury bills
to be issued in Japan have been printed.
The form of the said Treasury bills to be issued in Japan and the
denomination of each bill shall be determined by the bank in
consultation with the Chinese Minister in Tokyo, according to
the precedents of foreign Treasury bills previously issued in
Japan.
The said Treasury bills shall bear the signatures and official
seals of the Minister of Finance and of the Chinese Minister in
Tokyo in order to evidence that these bills are issued with the
approval of the Chinese Government and that it assumes the
responsibility. Furthermore, as the governor of the Bank acts as
the manager of the said Treasury bills, he shall also affix his
signature and seal to these bills.
The Chinese Government shall, on the day of signing this
agreement, telegraph to the Chinese Minister in Tokyo
instructions for the enforcement of this agreement.
Article 11
The said Treasury bills shall be repaid with priority out of the
net proceeds of the second reorganization loan, when the latter
is made.
Article 12
The terms of this agreement shall be officially communicated by
the Ministry of Foreign Affairs to the Japanese Minister in
Peking.
Article 13
Four sets of this agreement are executed, two sets each to be
retained by the Chinese Government and the Bank. In the event of
any doubt regarding the interpretation of this agreement the
Japanese text shall rule.
Signed at Peking this 19th day of July of the seventh year of the
Republic of China (the 19th day of July of the seventh year of
Ta Cheng).
[Here follow signatures.]
