In order to take up these liabilities and carry on the exten-
sion to Hsinmintun (in Manchuria), Mr. Hu Yen Min,
the Governor of Peking and Administrator of the road, de-
cided to float through the British and Chinese Corporation ^
a loan of Tls. 16,000,000, or £ 2,300,000, " for the construc-
tion of a railway line from Chunghousuo to Hsinmintun,

' The British and Chinese Corporation is a syndicate formed by the
Hongkong & Shanghai Banking Corp. and the firm of Messrs. Jardine
& Matheson & Co. for promoting British interests in China.
66 RAILWAY PROBLEMS IN CHINA [294

and a branch line to Yingkow (opposite Newchwang), and
for the redemption of previous loans to the Tientsin-Shan-
haikwan and Tientsin-Lukouchiao lines." The final agree-
ment ^ was then signed on October 10, 1898, with the British
and Chinese Corporation.
Under the terms of this agreement the British endeavored
to establish British railway principles and to create a mono-
poly for the supply of materials and so forth. The essential
points in this agreement are as follow :

1. The loan was to be the first charge upon the security
of the entire property between Peking and Shanhaikwan,
and on the freights and earnings of the new lines when
constructed.
2. In addition to the above the Chinese Government was
made to declare itself responsible for the payment of the
principal and interest at due date; and in the event of the
Chinese Government being unable to pay the principal and
interest the railway line and entire property were to be
handed over to the Corporation.
