Offer Made for Resumption of Financial Service The Minister of Finance and of Railways announces the _follow~ Ing offer for the resumption of financial service of the following loans of the Lunghai (Lung-Tsing-U. Hal) Railway:
1, £4,000,000 5 per cent.
Loan of 1913, 2 Guilders 30,750,000 & per cent. Short term Treasury Bonds of 1920 and_1923, Belgian Francs 137;743,000 8 per cent, Short term Treasury Bonds of 1020, 1921 and 1023, Chinese $5,000,000 8 per cent. Short term Treasury Bonds of 1004, French Francs 21,250,000 8 per cent, Sohrt term Treasury Bonds of 1926 issued to refund the 1919 loan.
Interest to be paid at the rate of 1% per cent. per annum for the year commencing July 1, 1936; the annual rate to increase by ¥% per cent yearly up to 4 per cent for 1941-1942, and to be 4 per cent. thereafter until the bond: are' fully redeemed. For the first five years interest is to be paid annually "at the end of each fiscal year, and thereafter semi-annually 2 er cent. January 1, and 2 per cent, July 2, Payment of interest and repayments of principal to be made in equal annual instalments to begin July 1, 1947, and to be completed maximum' period of 25 years from that date, Interest to be paid first out of the annual remittance and then principal. Principal to be paid drawing if bonds are at or above par, and by purchase in the open market by the fiscal agent, in consultation with a representative of 1 Chinese Government if bonds are quoted below par. If bonds of any Toans are unobtainable in the open market, the seal agent shall adver-rise for tenders, the lowest of which shall be accepted. The part of any annuity applicable to repayment of principal shall be wholly expended in each yearly period, either drawn or on purchased bonds. The Government shall be entitled upon reasonable notice to increase the amount of principal retired on any payment date pro rata for all tve The service of the aforementioned Loans shall be a prior charge upon the net earnings of the railway from Sian to Loyang and from Kaifeng to the sea. Any surplus of the railway between Kaifeng and Loyang, known as the Pienlo Railway shall be devoted toward the said loan service, as soon as the 1903 Loan and the advances due by said railway shal have been pald off and the railway incorporated in the Lunghai.
'4. All arrears of interest up to July 1, 1996 are to be cancelled.
5, Holders accepting this offer are to' hand their bonds to' the sca! agents for stamping and attachment of new coupons sheets. All foreign taxes on coupons and principal are to be borne by the bondholders, The above offer is the outcome of protracted consideration of the sub-Ject and discussion between the Chinese Government and the representatives of the bondholders.
Mr. Chang Kia-ngan, Minister of Railways, also announced that the Railway authorities are taking steps to improve the condition of the Rail way and its administration, accord-Ing to the principles outlined in the Loan Agreements, for the benefit both of the Government and of the bond-by an additional payment of $250,000 from the Ministry, to be used for amortization of principal.
3—Amortization payments will commence on June 1, 1937, out of the balance of the loan service fund, remaining after payment of interest. The principal of the loan will be fully repaid within a maximum [period of 80 years, 4—Four-fifths of the interest in arrears will be cancelled. Non-interest bearing scrip will be issued for the balance and will be paid after the complete amortization of the principal of the loan.
The Minister of Railways states that steps are being taken to improve the condition of the Canton-Kowloon Railway and its administration, with fa view to benefitting both the Government's interests and those of the
Text read from the printed page and cleaned; old type leaves the occasional error.