1918

162
FINAL PEOTOCOL BETWEEN CHINA AND ELEVEN POWERS, 1901
This sum in gold shall bear interest at 4 pur eeut. per annum, and the
capital shall be reimbursed by China in thirty-nine years in the
manner indicated in the annexed plan of amortization (Annex No.
13). Capital and interest shall be payable in gold or at the rates of
exchange corresponding to the dates at which the different payments
shall fall due.
The amortization .shall commence the 1st of Januarv, 1902, and shall finish
at the end of the year 1940. The amortizations are payable annually,
the first payment being fixed on the first of Januarv, 1903.
Interest shall run from the first of July, 1901, but the Chinese Government
shall have the right to pay off within a term of three years, beginning
January, 1902, the arrears of the first six months ending the 31st of
December, 1901, on condition, however, that it pays compound interest
at the rate of four per cent, per annu in on the sums, the payments of which
shall have been thus deferred.
Interest shall be payable semi-annually, the first payment being fixed on
the 1st of July, 1902.
(b) The service of the debt shall take place in Shanghai in the following
manner:—
Each Power shall be represented by a delegate on a commission of bankers
authorised to receive the amount of interest and amortization which
shall be paid to it by the Chinese Authorities designated for that
purpose, to divide it among the interested parties and to give a receipt
for the same.
(c) The Chinese Government shallylelivm- to the Doyen of the Diplomatic
Corps at Peking a bond for the lump sum, which shall subsequently be
converted into fractional bonds bearing the signature of the delegates
of the Chinese Government designated for that purpose. This
operation and all those relating to issuing of the bonds shall be
performed by the above-mentioned Commission, in accordance with
the instructions which the Powers shall send their delegates.
(d) The proceeds of the revenues assigned to the payment of the bonds
shall be paid monthly to the Commission.
(e) The revenues assigned as security for the bonds are the following:—
•(1.) The balance of the revenues of the Imperial Maritime Customs after
payment of the interest and amortization of preceding loans secured on those
revenues, plus the proceeds of the raising to five per cent, eftective of the
present tariff on maritime imports, including articles until now on the free
list, but exempting rice, foreign cereals and flour, gold and silver bullion
and coin.
(2.) The revenues of the native Customs, administered in the open ports by
the Imperial Maritime Customs.
•{3.) The total revenues of the salt gabelle, exclusive of the fraction previously
set aside for other foreign loans.
The raising of the present tariff on imports to five per cent, effective is
agreed to on conditions mentioned below. It shall be put in force twc
months after the signing of the present Protocol, and no exceptions shall be
made except for merchandise in transit not more than ten days after the
said signing.
(1.) All duties levied on imports ad valorem shall be converted as far as
possible and as soon as may be into specific duties.
This conversion shall be made in the following manner:—The average
value of merchandise at the time of their landing during the three years
1897, T898 and 1899, that is to say, the market price less the amount of
import duties and incidental exnenses, shall be taken as the basis for the
valuation of merchandise.