The proceeds of the Loan shall be deposited with the issuing Bank, to be nominated and guaranteed by the Contractors, to the credit of a Canton Chungking Railway Account on such terms as may be mutually arranged in the Detailed Agreement referred to in Article 17.
When the work of construction is ready to begin a sum equal to the estimated expenditure in China for six months shall be transferred to a Bank in China to be mutually agreed upon and there placed to the credit of a Canton Chungking Railway Account to be operated upon by the Corporation under certificates signed by the Chief Accountant and the Chief Engineer. This amount of estimated expenditure for six months shall be maintained by subsequent monthly transfers so that, as far as possible, there shall always be six months estimated expenditure in China on deposit in a Bank in China to be mutually agreed upon.
ARTICLE VIII
Immediately after the signing of the Detailed Agreement, the Corporation will establish a Head Office at Canton for the Canton Chungking Railway. This Office will be under the direction of a Chinese Managing Director to be appointed by the Corporation, with whom will be associated a British Engineer-in-Chief and a British Firm of Public Accountants, of recognized standing, whose representative shall be Chief Accountant (hereinafter called "the Chief Accountant"). These British Employes shall be nominated by the Corporation and the Contractors, jointly, and shall be appointed by the Corporation. Their dismissal shall take place, only, with the joint approval of the Corporation and the Contractors.
It is understood that the duties to be performed by these employes are intended to promote the mutual interests of the Corporation and the Bondholders respectively, and it is therefore agreed that all cases of difference arising therefrom shall be referred for amicable adjustment between the Corporation and the Representative of the Contractors. The salaries and other terms of Agreement of the Engineer-in-chief and the Chief Accountant shall be arranged between the Corporation and the Contractors; and the amount of their salaries, etc., shall be paid out of the general accounts of the Railway.
For all important technical appointments for the operation of the Railway, Europeans of experience and ability shall be engaged and wherever competent Chinese are available, they shall be employed. All such appointments shall be made, and their functions defined, by the Managing Director and the Engineer-in-Chief in consultation, and shall be submitted for the approval of the Corporation; similar procedure shall be followed in the case of Europeans employed in the Chief Accountant's department. In the event of the misconduct, or the incompetency of these European employes, their services may be dispensed with by the Managing Director, after consultation with the Engineer-in-Chief, and subject to the sanction of the Corporation. The form of Agreements made with these European Employes shall conform to the usual practice.
The accounts of the receipts and the disbursements of the Railway's construction and operation, shall be in Chinese and English in the department of the Chief Accountant, whose duty it shall be to organize and supervise the same, and to report thereon for the information of the Corporation through the Managing Director, and of the Contractors as representing the Bondholders. All receipts and payments shall be certified by the Chief Accountant and authorized by the Managing Director.
For the general technical staff of the Railway, after completion of construction, the necessary arrangements shall be made by the Managing Director in consultation with the Engineer-in-Chief, and reported to the Corporation in due course.
The duties of the Engineer-in-chief shall consist in the efficient and economical maintenance of the Railway, and the general supervision thereof in consultation with the Managing Director. The duties of the Chief Engineer during construction shall be set forth in the Detailed Agreement, referred to in Article 17 of this Agreement.
The Engineer-in-chief shall always give courteous consideration to the wishes and instructions of the Corporation, whether conveyed directly or through the Managing Director, and shall always comply therewith, having at the same time due regard to the efficient construction and maintenance of the Railway.