893.811/332

The Vice President of the American International Corp. ( Tinsley ) to the Acting Secretary of State

Sir: I have the honor to transmit to the Department for its information and for its archives a copy of the agreement entered into between the Chinese Government and the American International Corporation providing for an advance of Three Hundred and Fifty Thousand Dollars Gold to be used for continuing the preliminary survey of the Grand Canal in China. I also enclose to the Department copies of certain correspondence52 pertinent to the agreement.

I have [etc.]

R. P. Tinsley
[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 [Page 626] 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 China
By
Yung Kwai

Chargé d’Affaires ad interim
American International Corporation
By
Chas. A. Stone,
President
  1. Not printed.