[Translation.], June 28, 1866

[Translation.]

Decree approving the convention celebrated in London on October 27, 1865, for the loan of a million and a half of pounds sterling.

The congress of the United States of Colombia decrees:

Article 1. The convention celebrated in London on October 27, 1865, between Minister Plenipotentiary Great General T. C. de Mosquera and Messrs. William K. Robinson, John Fleming, and George Fleming, for the loan of £1,500,000, for the exclusive object of encouraging internal improvements as provided for by the law of May 28, 1864, is hereby approved, with the following modifications:

1st. Article 5 is amended thus:

Art. 5. The contractors shall deduct the first year’s interest from the proceeds of the loan, and shall deposit it on the best terms in a London bank, to be designated by the executive power of the Union, that it may give interest for the government, while interest shall be added to the first year’s sinking fund for the payment of the principal.

2d. Article 9 is approved, modified thus:

Art. 9. The proceeds of the loan, minus the year’s interest and commission, shall be deposited at interest, on the best terms, in a bank or banks in London, to be designated by the executive power, and to be subject to the conditions of this contract. Whatever interest the deposit may produce to be placed to the account of the government, and applied to the payment of the loan and its interest.

3d. Article 12 of the contract rejected.

4th. Article 13 amended as follows:

Art. 13. It being understood that by the hypothecation of the reserves in the Panama railroad, the lenders shall not have power to oblige the government to sue them against its will, it is agreed that if the republic shall resolve to sell the said reserves, the proceeds of the sale shall be applied to the payment of this loan. If the republic shall not choose to sell the reserves, the net income or benefit accruing to the nation from the Panama railroad is included by this contract.

5th. Article 17 to read thus:

Art. 17. The proceeds of this loan, subject to the stipulations of this convention, can only be withdrawn by the government, and for the purposes mentioned.

6th. Article 18 amended by adding the following paragraph:

Until it be declared that the number of subscriptions mentioned in this article is completed, the government of Colombia shall in nowise be bound by this contract, neither shall it be liable for any bank deposit that may be made on account of this loan.

7th. Article 19 to read thus:

Art. 19. The said contractors shall receive as their commission £6 per cent. on the nominal amount of said loan, which commission shall be payable and deducted by said contractors from each of the sums which the government may receive from them of the bank deposits aforesaid. Said commission shall be in full of all expenses of whatever kind incident to the completion of this loan. If the loan be not raised, the government is to incur no expenses.