893.51/2229
The Minister in China (Reinsch) to the Acting Secretary of
State
Peking, April 12,
1919.
[Received May
17.]
No. 2681
Sir: I have the honor to transmit herewith
enclosed the translation of the Chinese text of the War
Participation Loan Agreement46 as published in
the Peking Leader of April 10th, 1919.
I have [etc.]
[Enclosure—Translation]
The War Participation Loan Agreement between
the Chinese Government and the Bank of Chosen, September 28,
1918
Preamble
On the strength of the principles of the Agreement made by both
countries for the co-operation of the armies in defence against
the enemy,47 the
Chinese Government (hereinafter called A), for the purpose of
organizing and training an efficient army for the national
defence and of the defrayal of the expenses in connection with
War Participation, has entered upon the following loan agreement
with the representative of the Bank of Chosen (hereinafter
called B), which represents the Japanese Bank of Chosen,
Japanese Industrial Bank and the Bank of Taiwan:—
- Art. 1.—The total amount of
the loan shall be Japanese Yen 20,000,000, for which an
equivalent amount of the Government Treasury Bonds of
the Chinese Republic shall be given to B.
- Art. 2.—The issue of the
above mentioned Bonds shall be made within the period of
one year; and the annual interest shall be 7% for which
Coupons shall be attached to the bonds as usual. 1%
shall be deducted from the Bonds for expenses, and at
the expiration of the above period both parties shall in
accordance with the terms herein specified jointly fix
regulations for the issue of the bonds.
- Art. 3.—When the proceeds of
the loan are delivered over to A, they shall be
deposited with B, who shall pay 7% interest for the
amount deposited.
- Art. 4.—When it is necessary
to draw the above mentioned deposits, B shall in
accordance with the special regulations separately fixed
deliver same to the person or persons nominated.
- Art. 5.—All the expenses in
connection with the printing of the bonds, stamp tax
etc. shall be borne by A.
- Art. 6.—In case in future A
is in need of another loan for a similar purpose,
preference shall be given to B.
Two copies of both the Chinese and the Japanese text of the above
agreement shall be signed, to be kept one by each party; and in
case of doubts arising on any point of the agreement, the
Japanese is to be followed.
[No signatures indicated]
Annex
- A.
- —With reference to the provisions laid down in Article 4
of the War Participation Loan signed to-day, the proceeds of
the Loan shall be delivered direct to the Director-General
of the Organ for the control of the National Defence
Army.
- B.
- —The Chinese Government has decided to redeem in future
the War Participation Loan by the proceeds of the new taxes
which shall soon be enforced, etc.
The Bank of
Chosen,
The Representative of the
Nippon Kiogio Bank,
The Bank of
Taiwan.
Dear Sirs: We beg to inform you that
regarding the War Participation Loan Agreement signed on the
28th day of the 9th month of the 7th year of the Chinese
Republic, the Government of the Chinese Republic shall use the
revenue of the new taxes which will be reorganized in future for
the repayment of same.
(Signed and Sealed)
C.
Minobe,
Governor of
the Bank of Chosen
Chang Chung-hsiang,
Envoy Extraordinary and Minister Plenipotentiary of the
Chinese Republic
