Supplementary Agreement entered into this 28th day of May, 1974
Between:
the Minister of Finance of Canada
hereinafter referred to as "the Minister",
of the First part,
and
the Government of China
represented by Mr. Tien Pao-Sheng, Charged'Affaires ad interim
of China in Canada, of the Second Part:
WHEREAS by an agreement, dated February 7, 1964, (hereinafter c-
alled the "Principal Agreement") the Government of Canada agree-
d to lend to the Government of China amounts not exceeding Sixty
Million Dollars ($60,000,000) Canadian;
AND WHEREAS the Government of China has requested and the Gover-
nment of Canada, subject to provisions hereof, has agreed, that
the proceeds of loan granted under the Principal Agreement may,
in addition to the purchases set out in the Principal Agreement,
also be used to pay the cost of Canadian services;
AND WHEREAS by chapter forty-nine of the Statutes of Canada of
1946, the Export Credits Insurance Act was amended to authorize
the Minister to enable borrowing countries to use proceeds of a-
ny loan granted under the said Act to pay the cost of Canadian
services;
AND WHEREAS the Principal Agreement provides that any portion of
the Sixty Million Dollars ($60,000,000) Canadian that may be le-
nt thereunder which has not been requisitioned by the Government
of China in accordance with the provisions of the said Agreement
on or before the 31st day of December, 1947, shall lapse and be
no longer payable by the Minister unless the parties to the Pri-
ncipal Agreement mutually agree otherwise;
AND WHEREAS the Government of China has represented that because
of the shortage of supplies available for purchase in Canada it
will not be possible to expend the whole of the said amount bef-
ore the said date for the purchase of most urgently required co-
mmodities, and has accordingly requested that the period during
which the said loan may be requisitioned by it under the Princi-
pal Agreement be extended until December 31, 1948;
AND WHEREAS it has been mutually agreed that the said period be
so extended and it is necessary in consequence thereof to make
provision for repayment in respect of the amounts requisitioned
during the extended period.
NOW THEREFORE this agreement witnesseth that the parties hereto
covenant and agree with each other as follows:─
1 In this agreement the term "Canadian services" has the meaning
assigned to it by the Export Credits Insurance Act of Canada
or any regulations made thereunder.
2 Notwithstanding anything contained in the Principal Agreement,
it is mutually agreed that amounts that ma be lent by the Min-
ister to the Government of China thereunder as provided in cl-
ause two of the Principal Agreement, may be requisitioned by
the Government of China to enable it to pay the cost of Canad-
ian services in addition to the payment of the cost of Canadi-
an-produced goods exported or to be exported from Canada to C-
hina, as provided in the said clause two, and the Government
of China agrees to expend the moneys received by it by way of
loans under the Principal Agreement and this agreement, solely
for the purpose of purchasing from exporters and paying the c-
ost of Canadian-produced goods exported or to be exported from
Canada or the cost of Canadian services in accordance with a
program to be agreed upon from time to time by the Canadian M-
inister of Trade and Commerce and the Canadian Minister of Fi-
nance and by representatives of the Government of China desig-
nated by the Ambassador of China to Canada.
3 Pursuant to clause seven of the Principal Agreement, it is mu-
tually agreed that any portion of the Sixty Million Dollars (
$60,000,000) Canadian referred to in clause two of the Princi-
pal Agreement which has not been requisitioned by the Governm-
ent of China in accordance with the said clause two on or bef-
ore December 31,1947, may be requisitioned by the Government
of China on or before December 31, 1948, and the Minister will
pay the amounts so requisitioned in the manner provided in the
Principal Agreement in respect of amounts so requisitioned.
4 Without restricting the operation of clause six of the Princi-
pal Agreement, which shall have full operation in respect of
amounts paid by the Minister into the account of the Governme-
nt of China for the credit of the Chinese Government during t-
he period therein mentioned, the Government of China agrees t-
hat amounts paid by the Minister into the account of the Gove-
rnment of China for the credit of the Chinese Government purs-
uant to the Principal Agreement and clause three of this agre-
ement during the period commencing on January 1, 1948, and en-
ding on December 31, 1948, inclusive, together with interest
thereon as provided in clause five of the principal Agreement,
shall, at the end of the said period, be consolidated into one
amount, called in this clause the consolidated debt, and the
Government of China shall thereupon on December 31, 1948, pay
one-thirtieth of the amount of the consolidated debt and deli-
ver to the Minister bonds of a face value equal to the remain-
der of the consolidated debt, which bonds shall constitute va-
lid, binding, absolute and unconditional obligations of the G-
overnment of China; the said bonds shall bear interest at the
rate of three percentum per annum, payable semiannually on the
30th day of June and the 31st day of December, and shall matu-
re serially in twenty-nine equal annual amounts of principal
payable on the 31st day of December 1949, and on the 31st day
of December in each year thereafter up to and including the y-
ear 1977.
5 This agreement and the Principal Agreement shall be read and
construed as one agreement and all provisions of the Principal
Agreement not inconsistent with this agreement shall apply in
respect of amounts lent under the Principal Agreement and this
agreement.
IN WITNESS WHEREOF the parties hereto have caused these presents
to be signed on the day and year first above mentioned.
Witness:

W. K. Chow Tien Pao-Sheng
For the Government of China
R. B. Bryce Minister of Finance of Canada