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[Page 145]
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TERMS OF CONCESSION BY GERMAN GOVERNMENT RE THE WORKING OF PHOSPHATE BY A GERMEN COMPANY ON THE ISLANDS OF ANGAUR AND PILILJU.
Term of Lease - 35 years.
All land to be bought at Company's expense, and Company to defray compensation to be given natives by Colonial Treasury. Govt. alone competent to fix the amount of compensation payable to natives.
The Company will have to pay the Treasury from the fourth year onward, calculated from the date of the formation of the Company, the sum of Mk.1.25 for every ton of 1,000 kilos each of phosphate exported, the amount so paid, however, never to fall short of Mk.30,000 per annum.
The Treasury to participate in the net profits which will have to be ascertained in the following manner :-
After deducting an amount to be carried forward which may not exceed 10% of the Capital, the net profit which comes up for distribution will have to be divided in the following manner :-
a. 8% as a first dividend to the Shareholders (Preliminary).
b. Thereupon the balance to be dealt with in the following manner :-
During the first 25 years after taking up working, 60% to go to the shareholders and 40% to the Treasury. From the 26th year up to the 30th year, the shareholders and the Treasury are to receive 50% each. From the 31st to the 35th year, the shareholders to receive 40% and the Treasury 60%.
The transfer of the present Concession to third parties, even though only for purposes of execution, can only take place subject to the sanction of the Imperial Colonial Office. The Imperial Colonial Office can declare the concession to be illegal (or a competent Imperial Colonial Governor) without detracting from the claim of the Treasury upon the Tax.
After the expiry of the present concession or upon the Company being wound up, all immovable property of the Company to become the free property of the Treasury.