File No. 893.77/1671
In commenting upon the terms of this loan it should be stated that
the Ssupingkai-Chengchiatun Railway contract, to which reference is
made in Article 6 of this agreement, is to be identified with the
contract of December 27, 1915, of which a copy was forwarded to the
Department with the Legation’s despatch (No. 1331) of January 3,
1917.1 The Tientsin-Pukow agreement, to which
reference is made in Article 7, is that of January 13, 1908, the
text of which is printed at page 61 of
the 1908 supplement to Rockhill’s Treaties.…
[Enclosure—Translation]
The Kirin-Hueining (Ki-or Chi-Huei) Railway loan:
Preliminary agreement2
For the purpose of constructing the railway from Kirin in the
Republic of China [to] Hueining through the southern part of
Yenki and the Tumen River the Government of the Republic of
China (hereafter called A) hereby enters into the present
preliminary agreement with the three Japanese banks, the
Japanese Industrial Development Bank, the Chosen Bank and the
Taiwan Bank, represented by the Industrial Development Bank
(hereafter called B) as the basis of a formal loan agreement for
the same railway:
Article 1
A shall with due promptness outline the amount of funds required
for the construction of the railway and other items of necessary
expenditure and bring it to the notice of B for its consent.
In accordance with the amount of funds required as referred to
above, B shall issue 5 per cent public loan bonds of the
Republican Government of China in gold currency for A.
Article 2
The period for the redemption of the present loan shall be
limited to forty years. Redemption of the loan shall begin from
the eleventh year calculating from the date of the issue of the
bonds and the method of yearly instalment redemption shall be
followed.
Article 3
As soon as the formal agreement for the Ki-Huei Railway loan is
signed, A shall begin to construct the line so as to hasten its
completion.
Article 4
A shall build the railway bridge over the Tumen River conjointly
with the railway department of the office of the Japanese
Governor General for Korea and shall share half of the expenses
thereof.
Regarding the through traffic between this railway and the
railway in Korea, a separate agreement shall be entered into
with a view to developing the traffic and securing the smooth
cooperation of the two railways concerned.
Article 5
A shall pledge the following assets to B as security for payment
of interest and redemption of the present loan bonds:
All the property owned by and the revenue due to the railway
either at present or in the future.
Without the approval of B, A shall not offer either the property
or the revenue of the railway to others as loan security.
[Page 203]
Article 6
The actual amount of funds to be received by A out of the issue
of the present loan bonds shall be such as to be more profitable
to A than what is stipulated in the Ssupingkai-Chengchiatun
Railway loan agreement concluded on December 17 of the 4th year
of the Republic.1
The rate at which the present loan bonds are to be issued shall
be fixed according to the circumstances under which they are
issued.
Article 7
Regarding the particulars which are not provided for under the
foregoing articles they shall be decided upon by A and B in
accordance with the Tientsin-Pukow Railway loan agreement signed
on the 10th of the 12th moon of the 33d year of Kuanghsü.
Article 8
The present preliminary agreement shall be the basis of the
formal agreement for the Ki-Huei Railway loan, which shall be
concluded within six months after the conclusion of the present
preliminary agreement.
Article 9
Upon the conclusion of the present preliminary agreement, B shall
pay to A an advance of $10,000,000 in full without any deduction
for commission.
Article 10
The advance referred to above shall bear 7½ per cent interest per
annum; that is, 7½ yen shall be paid for the yearly interest of
every 100 yen.
Article 11
The advance shall be paid to A in specie in exchange for the
Treasury bonds issued by A.
Article 12
The Treasury notes mentioned in the foregoing article shall be
subject to change every six months. At each occasion of their
change for new ones, the interest due for the said period shall
be paid to B.
Article 13
After the conclusion of the formal agreement for the Ki-Huei
Railway loan, the advance shall have the preferential right of
being repaid with the proceeds from the issue of the loan bonds
referred to above.
Article 14
The payment of the advance, its redemption and the payment of its
interest and other transactions in connection therewith shall be
carried Out at Tokyo.
Two copies of the present preliminary agreement shall be written
in the Chinese language and two copies in the Japanese language
and A and B shall each keep one copy written in each language.
In case any dispute arises with regard to the interpretation of
the agreement, the text of the one written in Japanese shall be
considered as authoritative.
|
Ta’vn Ju-lin, |
{ |
Minister of Communications
|
|
Minister of finance
|
For the Chinese Government
Tu-fang-chin-cheng (Makawa?)
,
President of the Hsing
Yeh Bank acting for Chen-ch’uan
hsiao-yen,
For the Imperial Japanese
Government
