[Enclosure]
Agreement between the Chinese Government and
the American International Corp. for a Further Loan of Three
Hundred and Fifty Thousand Dollars for the Preliminary
Survey of the Grand Canal/Signed July 8, 1919
This instrument negotiated and signed this eighth day of July
1919, by the Republic of China by its duly authorized and
accredited
[Page 625]
representative therefor, Yung Kwai, Chargé d’Affaires ad interim, and the American
International Corporation by its President Charles A. Stone,
duly authorized thereto,
Witnesseth as follows:
Whereas, the Republic of China has
requested that an additional loan be made to it by the American
International Corporation, the proceeds thereof to be used in
completing the work of the preliminary survey of the Grand
Canal, as such work has been planned, initiated and prosecuted
under the agreement of May 1, 1918, between the parties; and
Whereas, the American International
Corporation is willing to accede to this request and to make to
the Republic of China a gold loan to be used for the completion
of such preliminary survey work as planned and initiated upon
the same terms and conditions as those governing the loan
already made for the same purpose under the agreement of May 1,
1918, as those terms were laid down in that agreement and as
further detailed and defined, in part, in the letter of January
6th, 1919, to His Excellency Hsiung Hsi Ling from Mr. F. C.
Hitchcock as Vice President of the Siems-Carey Railway and Canal
Company.
Now Therefore, the parties hereto have
agreed as follows:
- 1.
- The American International Corporation will purchase
at 99 a one year treasury note of the Republic of China
for Three Hundred and Fifty Thousand U. S. Gold Dollars
(G. $350,000.00), the note to draw interest from date
until paid at eight per centum (8%) per annum.
- 2.
- The Republic of China by and through its proper
officer will execute and deliver to the American
Legation in Peking for transmission by it to the
American International Corporation, New York City, a one
year treasury note of the Republic of China, which note
shall be written in English, and in Chinese also if the
Republic of China so desires, shall bear an even date
with this agreement, and shall be in words and figures
as follows:
“For value received the Republic of China
promises to pay to bearer one year from the date
hereof or thereafter on demand Three Hundred and
Fifty Thousand Dollars ($350,000) in gold coin of
the United States with interest at the rate of
eight per centum (8%) per annum, payable
semi-annually from date until paid. All payments
of principal and interest shall be made in U. S.
gold coin at The National City Bank, New York
City, United States of America.”
- 3.
- The American International Corporation will upon the
signing of this agreement deposit with The National City
Bank of New
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York, the sum to be realized from the sale of this note,
this sum to become available for expenditure under this
agreement upon the receipt by The National City Bank of
notice, transmitted through the American Department of
State, of the deposit of the aforesaid treasury note
with the American Legation at Peking. The proceeds of
this note are to be furnished, deposited, withdrawn,
handled, and expended in every respect and in all
respects as were the funds realized from the loan
agreement of May 1, 1918, as that agreement was further
detailed and defined, in part, by the letter of January
6, 1919, to His Excellency Hsiung Hsi Ling, Director
General of the Grand Canal Improvement Board, from Mr.
F. C. Hitchcock as Vice President of the Siems-Carey
Railway and Canal Company.
- 4.
- In all matters of interpretation of this agreement and
of the treasury note, the English text shall
prevail.
The Republic of ChinaBy
Yung
Kwai
Chargé d’Affaires
ad interimAmerican
International CorporationBy
Chas. A. Stone,
President
