la 
 
 is
 
 Publications of the 
 
 Carnegie Endowment for International Peace 
 
 Division of International Law 
 
 Washington
 
 TREATIES AND AGREEMENTS 
 
 WITH AND CONCERNING 
 
 CHINA 
 
 1894-1919
 
 l! 1
 
 TREATIES AND AGREEMENTS 
 
 WITH AND CONCERNING 
 
 CHINA 
 
 1894-1919 
 
 A collection of state papers, private agreements, and other 
 documents, in reference to the rights and obligations 
 of the Chinese Government in relation to foreign powers, 
 and in reference to the interrelation of those powers in 
 respect to China, during the period from the Sino-Japanese 
 War to the conclusion of the World War of 1914-1919 
 
 COMPILED AND EDITED BY 
 
 JOHN V/A-'^MacMURRAY 
 
 Counselor of Embassy of the United States, assigned to Tokyo ; 
 lately Secretary of the American Legation at Peking 
 
 Volume I 
 MANCHU PERIOD (1894-1911) 
 
 NEW YORK 
 
 OXFORD UNIVERSITY PRESS 
 
 AMERICAN BRANCH: 35 WEST 32ND STREET 
 LONDON, TORONTO, MELBOURNE, AND BOMBAY 
 
 1921
 
 COPYRIGHT 1921 
 
 BY THE 
 
 CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE 
 Washington, D. C.
 
 TO THE MEMORY OF MY FORMER CHIEF 
 THE LATE 
 
 WILLIAM WOODVILLE ROCKHILL 
 
 WHOSE WORK THESE VOLUMES ARE 
 MEANT TO CARRY ON
 
 INTRODUCTORY NOTE. 
 
 Approximately i.ixteen years ago — to be accurate, in 190^1 — the Honorable 
 William Woodville Rockhill, an American diplomat of large experience, issued 
 a volume of Treaties and Conventions zvith or concerning China and Korea, 
 1894-1904, together with various State Papers and Documents affecting Foreign 
 Interests. The collection was official in its nature, and it was official in its pub- 
 lication, in that it was set up by the Government Printing Office, and appeared 
 as a public document. It would therefore have been in keeping with precedent 
 if Mr. John V. A. MacMurray, a younger diplomat but already of large experi- 
 ence, had issued as a public document, his collection of Treaties and Agreements 
 with and concerning China, 1894-1919, which he has industriously brought 
 together and intelligently edited. The Department of State, however, was unable 
 to issue Mr. MacMurray's collection as a public document, owing to the many 
 demands upon it; hence the Carnegie Endowment for International Peace has 
 the good fortune to render this public service through its Division of Inter- 
 national Law. 
 
 It will be observed that Mr. MacMurray's collection is not a supplement to 
 Mr. Rockhill's volume. It covers the same field for a decade ; but it covers it, 
 as was to be expected, more fully and completely, in that additional documents 
 are included, which were not at Mr. Rockhill's disposal, and which then did not 
 seem to possess the importance which they now have. Mr. Rockhill's collection 
 is therefore merged in Mr. MacMurray's, and it is enlarged and enriched in the 
 process. From 1904 to the end of the World War in 1919, Mr. MacMurray 
 blazes his own trail and does not tread in the path of a predecessor. 
 
 These two stately volumes, which no student of the Far East can aflford to 
 overlook for many a year to come, are a labor of love. They are the free offering 
 to the public on the part of Mr. MacMurray, who has given to the Carnegie 
 Endowment his manuscript without any compensation other than the reward 
 that sometimes comes from a good deed. And it is proper to mention in the 
 same connection, that they are issued by the Endowment in the same spirit, inas- 
 much as many copies will be placed in public libraries, and the copies which are 
 not so placed, but are purchased in ordinary course, can never be expected to 
 make good the original outlay. 
 
 It is a source of pleasure to the good people of these United States, that the 
 policy of their government has invariably been one of sympathetic interest in 
 and toward the Far East, and that it has never sought to make of the needs and 
 distress of the peoples of Japan and China, a source of profit. It is worth while 
 recalling that as a consequence of the Boxer troubles an indemnity equivalent 
 in round numbers to $333,000,000 United States gold was exacted from China 
 under the Protocol of September 7, 1901, which sum was to be paid with interest 
 at 4 per cent per annum, by installments running through a period of thirty-nine
 
 X INTRODUCTORY NOTE 
 
 years. The sum of $24,440,778.81 was allotted to the United States. But as 
 this sum was found to exceed the actual losses to American interests and property, 
 the amount in excess of $11,961,121.76 was remitted by the Government of the 
 United States. It was felt that the sum originally allotted might' exceed 
 American claims, but it was feared that if the United States should refuse to 
 accept it, it would not be credited to China, but would be apportioned among the 
 other Powers. In communicating the intention of the United States to remit the 
 payment of the balance of the sums to which the United States was entitled 
 under the agreement of 1901, Mr. Elihu Root, then Secretary of State, said in 
 his note of June 15, 1907, addressed to the Chinese Minister in Washington: 
 
 It was from the first the intention of this Government at the proper 
 time, when all claims should have been presented and all expenses should 
 have been ascertained as fully as possible, to revise the estimate and account 
 against which these payments were to be made, and, as proof of sincere 
 friendship for China, to voluntarily release that country from its legal 
 liability for all payments in excess of the sum which should prove to be 
 necessary for actual indemnity to the United States and its citizens.^ 
 
 The remission was gratefully accepted by the Chinese Government, on behalf 
 of which the Prince of Ch'ing, President of the Chinese Foreign Office, said in 
 a note dated July 14, 1908, to the Honorable William Woodville Rockhill, then 
 American ]\Iinister to China : 
 
 The Imperial Government, wishing to give expression to the high value 
 it places on the friendship of the United States, finds in its present action a 
 favorable opportunity for doing so. Mindful of the desire recently expressed 
 by the President of the United States to promote the coming of Chinese 
 students to the United States to take courses in the schools and higher 
 educational institutions of the country, and convinced by the happy results 
 of past experience of the great value to China of education in American 
 schools, the Imperial Government has the honor to state that it is its inten- 
 tion to send henceforth yearly to the United States a considerable number 
 of students there to receive their education.^ 
 
 This is not an isolated case. Many years before, in 1863, the Strait of 
 Shimonoseki, improperly closed to commerce, was opened by the joint action of 
 France, Great Britain, Holland and the United States. An indemnity, amounting 
 to $3,000,000, was exacted from Japan, which was paid, as the late General 
 Foster says in his admirable little volume entitled American Diplomacy in the 
 Orient, " after some delay and great embarrassment, because of the poverty of 
 the treasury." ^ Each participating nation received an equal share. The action of 
 the United States and the action of the other Powers is thus stated by General 
 Foster : ^ 
 
 The sum paid to the United States remained in the treasury unused for 
 twenty years. The public conscience was troubled as to the justness of the 
 exaction, and in 1883 by an act of Congress the amount received was 
 returned to Japan, and accepted by that government " as a strong manifesta- 
 
 ' Foreign Relations of the Unit-cd States, 1907, pt. 1, p. 174. 
 
 ' Ibid., 1908, p. 68. 
 
 'John W. Foster, American Diplomacy in the Orient (1903), p. 194.
 
 INTRODUCTORY NOTE xi 
 
 tion of that spirit of justice and equity which has always animated the 
 United States in its relations with Japan." None of the other three nations 
 partaking of the indemnity have seen fit to follow this example. 
 
 It is also to be said that none of the Powers partaking of the Chinese 
 indemnity — France, Germany, Great Britain, Japan and Russia — " have seen fit 
 to follow this example." 
 
 Other illustrations might be given of the policy of the United States toward 
 the peoples of the Far East. They will be found, however, in Mr. MacMurray's 
 two volumes. It is therefore sufficient to remark in this place that the United 
 States has invariably framed its policy in such a way that it should be just to 
 China — to speak specifically of this one country, — that the policy of China should 
 be just to the United States, and that the door of opportunity should be open 
 to the United States and to all other countries upon a footing of equality. 
 
 It is a pleasure to publish Mr. MacMurray's volumes, and none the less a 
 pleasure because they are the work of a former student and a constant friend. 
 
 James Brown Scott, 
 Director of the Division of International Lorv. 
 
 Washington, D. C, 
 January 8, 1921.
 
 EDITOR'S PREFACE. 
 
 The present compilation of documents relating to the affairs of China, as 
 involving foreign interests, during the period beginning with the Sino-Japanese 
 War of 1894-95, is an outgrowth of the collection edited by the late Mr. William 
 Woodville Rockhill under the title " Treaties and Conventions with or concern- 
 ing China and Korea, 1894-1904, together with various State Papers and Docu- 
 ments affecting Foreign Interests " (Washington : Government Printing Office, 
 1904). 
 
 The underlying principle of Mr. Rockhill's collection was his appreciation 
 of the fact that, with the Japanese War, China entered upon a new course of 
 national development, the history of which is to be read not only — nor even 
 primarily — in the Treaties and other formal international engagements, but 
 rather in the arrangements of nominally private character, with syndicates or 
 firms of foreign nationality, under which the Chinese Government then began 
 to incur a complex and far-reaching set of obligations and commitments, in 
 which the financial or economic element is often merged indistinguishably with 
 political considerations. 
 
 Up to that time, the whole purpose of Chinese statesmanship, in relation 
 to the outer world, had been to maintain the traditional isolation of the country ; 
 and against that aloofness, the foreign nations had struggled to establish the 
 right of free intercourse. The results of that struggle, as embodied in the earlier 
 Treaties, may be roughly summarized under three headings, namely : — Extrater- 
 ritoriality, or the right of foreigners to be exempt from the processes of Chinese 
 law and amenable only to the jurisdiction of their national tribunals ; the right 
 of residence in designated places, and of access to the interior of the country ; 
 and the right to trade freely, unhampered by monopolies, subject to a fixed 
 tariff of import and export duties, and with the privilege of commuting by a 
 single fixed charge all local taxes and levies upon commerce. These rights were 
 essential, and even to-day are fundamental to the whole system of foreign inter- 
 course with China ; but they were and are, from the view-point of the develop- 
 ment of the nation, rather negative than positive. 
 
 The conditions — particularly the financial requirements — incidental to the 
 war with Japan compelled a readjustment of China's attitude towards foreign 
 nations and towards their resources and their influences. The Chinese nation 
 found itself perforce face to face with the world, and under the necessity of 
 accommodating itself to a relationship with it. Thenceforward, the problem of 
 China was to avail itself of the material resources and experience of the West, 
 while retaining what was vital in its own institutions and preserving as best it 
 could not merely the integrity of its territories, but its political and national 
 entity. How clearly this problem of assimilating the new conditions to the old
 
 xiv CHINA TREATIES AND AGREEMENTS 
 
 and of adapting the old ideas to the new has been realized by those responsible 
 for the destinies of the country — how wisely, how courageously, and how dis- 
 interestedly they have acted in seeking solutions of the problem — how well and 
 how loyally they have been served by the various foreign interests to which 
 they have from time to time turned for assistance and cooperation, — ^those are 
 speculations in regard to which some indications may be found in the data here 
 gathered together, but for which no categorical answers are possible. There 
 have been times of progress and of reaction; there has been confusion of pur- 
 poses ; there has been blind Utopianism, and bitter disillusionment : but the 
 process of association of foreign with Chinese interests has gone on almost with- 
 out interruption or pause, China repeatedly seeking foreign assistance in the 
 solution of its problems of industrial, economic and administrative development, 
 and giving in return rights that carried with them in many instances at least an 
 implication of political interest. 
 
 This process has been marked by certain critical events which have in turn 
 initiated new phases of development : — first, the rapprochement with Russia, 
 immediately prompted by the apprehensions arising out of China's defeat at the 
 hands of Japan; then the Battle of Concessions, in 1898, originating with Ger- 
 many's exaction of the lease of the Kiaochow Territory ; thereupon, the abortive 
 reaction that found expression in the Boxer movement of 1900, irresolutely 
 abetted and restrained by the Manchu Court ; the succeeding period of recon- 
 struction, when China sought to restore and stabilize normal relations with the 
 Powers, and those Powers endeavored to establish among themselves an equili- 
 brium based upon the mutual recognition of existing interests and upon the adop- 
 tion of the principles of preservation of Chinese territorial and administrative 
 integrity and maintenance of equality of commercial opportunity for all nationali- 
 ties in China ; then the defeat of Russia by Japan, in 1904-5, with the consequent 
 transfer to the victor of a great share of both the material advantages and the 
 political influence theretofore enjoyed by Russia; in 1911, the overthrow of the 
 Manchu Dynasty, which brought with it an intensified preoccupation with ques- 
 tions of internal development, and which was the beginning of the period of 
 unrest and civil dissension which continues to the present time ; then the out- 
 break of the European War, in 1914, aflfecting China economically through the 
 dislocation of foreign trade and the drying up of the European money markets 
 to which it had hitherto looked for financial accommodation at need, and per- 
 haps more profoundly affecting it politically through Japan's entering the war 
 and taking military occupation of the Kiaochow Leased Territory and other Ger- 
 man concessions in Shantung Province, and through the Treaties of May 25th, 
 1915; and lastly, the entry of China itself into the war, in August, 1917. 
 
 Throughout these phases of development, financial, economic and indus- 
 trial concessions have been made the objects of international policies ; such 
 advantages have been sought by Governments, — both directly, in the form of 
 general conventional stipulations, and indirectly, in the form of special grants 
 to particular banks or industrial organizations, — through all the means available 
 to one State in its intercourse with another ; the holders of such concessions have 
 often spoken with the voice of their Governments in insisting upon their own
 
 EDITOR'S PREFACE xv 
 
 construction of the rights granted to them ; and such commitments to individuals 
 of one nationality, even when left unutilized and allowed to lapse by the terms 
 of the concession, have now and again been claimed as a basis of protest against 
 a grant to the nationals of any other country. The result of this merging of 
 individual with governmental interests has been that matters which would else- 
 where be of merely commercial character, susceptible of judicial determination 
 in case of dispute, are in China matters of international political concern, for 
 the settlement of which the ultimate recourse is to diplomatic action. It is thus 
 in a sense true that the international status of the Chinese Government is deter- 
 mined and conditioned by its business contracts with individual foreign firms or 
 syndicates, scarcely if at all less than by its formal Treaties with other Govern- 
 ments. It is at any rate seldom that any international situation relating to China 
 can be fully understood without reference to the intricate fabric of quasi-public 
 as well as of public obligations which qualify the freedom of action of the 
 Chinese Government. 
 
 The object of the present collection is to reproduce as fully and as faithfully 
 as possible the available documents embodying that complex of interrelated rights 
 and obligations. In compiling it, the Editor has drawn upon all sources at his 
 disposal, and save for a few instances in which he has been debarred by obliga- 
 tions of official or of personal confidence, has included in it every available 
 document that seemed to him to fall within the scope of the collection. He has 
 considered it to be beyond his competence, as a compiler, to assume any judg- 
 ment of the efifect or of the validity of the various agreements, but for the sake 
 of completeness has included in the collection documents which would appear 
 to be void or voidable, or which have expired by their own limitations, or have 
 been cancelled by other agreements, if they appeared to be of sufficient interest — 
 whether of actual or potential practical interest, or merely historical interest — to 
 warrant their reproduction. 
 
 Although an officer of the American Government, the Editor is, in respect to 
 this compilation, acting wholly upon his personal responsibility, having obtained 
 the permission of the Department of State to edit it independently, under a 
 publication contract with the Carnegie Endowment for International Peace. 
 He has exercised his own discretion in the selection of the documents to be 
 included, and in all editorial questions such as the choice of texts to be adopted, 
 the translations, and the explanatory notes that he has affixed to the various 
 documents. It is therefore to be understood that there is neither actual nor 
 implied responsibility, on the part of any branch of the Government of the 
 United States, for either the substance or the editorial treatment of the present 
 collection. 
 
 In the compilation of so great a bulk of material, gathered from many differ- 
 ent sources, the Editor has incurred many obligations which he gratefully 
 acknowledges. He is perhaps most deeply indebted to Mr. E. T. Williams, 
 formerly Secretary of the American Legation in Peking, more recently Chief of 
 the Division of Far Eastern Affairs of the Department of State, and now 
 attached to the American Delegation to the Peace Conference, for constant 
 assistance in obtaining texts and translations, and still more for his encourage-
 
 xvi CHINA TREATIES AND AGREEMENTS 
 
 ment and for his helpfulness in the various arrangements incidental to the publica- 
 tion of the book. He likewise owes much to the assistance and cooperation of his 
 recent Chief, the Honorable Paul S. Reinsch, American Minister to China. It 
 would be impossible to acknowledge in detail his obligations to those who have in 
 one way or another assisted him to obtain texts for publication; but he takes 
 pleasure in recording a particular debt of gratitude to Dr. G. E. Morrison, who 
 spared no pains in making available to him the wealth of rare materials gath- 
 ered in his library of the Far East. He is also much indebted to the assistance 
 of Dr. C. C. Wang, chief compiler of the admirable collection of Railway Loan 
 Agreements of China, who placed at his disposal not only the material published 
 in that volume but also that which is being prepared for eventual publication in a 
 separate volume dealing with Railway Agreements other than those involving 
 loans ; to Mr. W. H. Donald, Editor of the Far Eastern Review, who has given 
 him access to a number of documents gathered for the editorial use of that 
 magazine ; to Mr. Igor Mitrophanow, Second Secretary of the Russian Legation 
 in Peking, who very generously made for him a search of the Russian official 
 and semi-official publications dealing with questions concerning China; and to 
 Mr. Alexis Leger, of the French Legation in Peking, who was most helpful 
 in looking up certain documents involving French interests, and obtaining the 
 necessary permission for their publication. 
 
 In the matter of translations, he is under special obligations to Mr. Raymond 
 P. Tenney, Assistant Chinese Secretary of the American Legation in Peking, 
 for a great number of careful translations from Chinese ; to Mr. Roger S. Greene, 
 of the Rockefeller Medical Foundation, formerly American Consul at Harbin 
 and Consul-General at Hankow, to Mr. G. A. Candlin, of the Russo-Asiatic 
 Bank in Peking, and to Mr. Wilfred Stevens, of the Department of State, for 
 a considerable number of translations from Russian; to Mr. Roger A. Burr, of 
 the American Legation in Peking, for several translations from German; and 
 to Mr. J. W. Ballantine, Japanese Secretary of the American Embassy in 
 Tokyo, and to Mr. A. A. Williamson, American Consul at Dairen, for various 
 translations from Japanese. He is also glad to acknowledge his indebtedness to 
 Mr. W. J. Cannon, formerly of the American Legation at Peking, and to Mr. S. 
 S. Young, of the Siems-Carey Company, who were of very great help to him in 
 gathering and preparing the material for publication. 
 
 In conclusion, the Editor wishes to acknowledge to the Carnegie Endowment, 
 and especially to its Secretary, Dr. Scott, his cordial sense of personal obligation 
 for its generous readiness to cooperate in the furtherance of his plans. He is 
 particularly grateful to the Endowment for undertaking to relieve him of the 
 labor and responsibility of preparing an adequate index. 
 
 Upon the conclusion of the Treaty of Peace between the Allied and Asso- 
 ciated Powers and Germany, there will be added to this compilation a selection 
 of such articles as appear to be of particular interest in relation to the affairs of 
 China. 
 
 American Embassy, Tokyo, Japan, 
 April, 1919.
 
 TABLE OF CONTENTS, 
 
 Including Chronological List of Documents. 
 
 Page 
 
 List of Maps and Plan xliii 
 
 List of Abbreviations xlv 
 
 DOCUMENTS. 
 
 Date 
 
 Specifications of Document 
 
 Number * 
 
 March 
 
 1, 1894 
 
 March 17, 1894 
 
 August 26, 1894 
 September 6, 1894 
 
 January 26, 1895 
 
 January 26, 1895 
 
 Page 
 
 GREAT BRITAIN & CHINA— Convention giv- 
 ing Effect to Article III of Convention of 
 July 24, 1886, relative to Burma and Tibet.. 1894/1 . . 1 
 
 UNITED STATES & CHINA— Convention 
 
 regulating Chinese Immigration 1894/2 . . 9 
 
 JAPAN & KOREA— Treaty of Alliance (1895/3) . . 24 
 
 GREAT BRITAIN & CHINA— Convention re- 
 specting Junction of Chinese and Burmese 
 Telegraph Lines. (Not printed.) (1905/2) . . 498 
 
 GREAT BRITAIN (Hongkong & Shanghai 
 Banking Corporation) & CHINA — Final 
 Agreement for Chinese Imperial Govern- 
 ment 7% Silver Loan of 1894 1895/1 . . 11 
 
 GREAT BRITAIN (Hongkong & Shanghai 
 Banking Corporation) & CHINA — Final 
 Agreement for Chinese Imperial Govern- 
 ment 6% Sterling Loan of 1895 1895/2 . . 15 
 
 JAPAN & CHINA— Treaty of Peace (with 
 Separate Articles, and Convention to pro- 
 long Armistice) 1895/3 . . 18 
 
 JAPAN & CHINA— Convention of Armistice... (1895/3) . . 24 
 
 JAPAN — Proclamation in regard to Retroces- 
 sion of Fengtien Peninsula (1895/10). . 52 
 
 FRANCE & CHINA— Convention complemen- 
 tary to Convention for Delimitation of Fron- 
 tier between Tongking and China, June 
 26,1887 1895/4 . . 26 
 
 FRANCE & CHINA--Additional Convention to 
 Supplementary Commercial Convention of 
 June 26. 1887 1895/5 . . 28 
 
 FRANCE & RUSSIA (Franco-Russian Syndi- 
 cate) & CHINA— Contract for Chinese 4% 
 Gold Loan of 1895 1895/6 . . 35 
 
 RUSSIA &_ CHIN A— Protocol of Exchange of 
 Declarations concerning Chinese 4% Gold 
 Loan of 1895 1895/7 . . 40 
 
 RUSSIA & FRANCE (Russian Government, 
 and Franco-Russian Syndicate) — Contract 
 guaranteeing Chinese 4% Gold Loan of 1895 (1895/7) . . 42 
 
 ♦Principal documents are indicated by their year, with subjoined serial number: docu- 
 ments which are printed as annexes or in notes to others are designated by the number 
 — between parentheses — of the principal document to which they are attached. 
 
 April 
 
 March 
 
 May 
 
 June 
 
 17, 1895 
 
 30, 1895 
 10, 1895 
 
 20, 1895 
 
 June 
 
 20, 1895 
 
 July 
 
 6, 1895 
 
 July 
 
 6, 1895 
 
 July 
 
 6, 1895
 
 TABLE OF CONTENTS 
 
 Date 
 October 3, 1895 
 
 October 18, 1895 
 
 October 30, 1895 
 
 November 8, 1895 
 
 January 15, 1896 
 
 March 23, 1896 
 
 May 
 May 
 
 July 
 
 (?), 1896 
 7, 1896 
 
 11, 1896 
 
 July 
 
 21, 1896 
 
 July 
 
 30, 1896 
 
 August 
 
 28, 1896 
 
 September 
 
 8, 1896 
 
 September 8, 1896 
 October 19, 1896 
 
 December 16, 1896 
 
 February 4, 1897 
 
 March 15, 1897 
 
 May 13, 1897 
 
 May 27, 1897 
 
 June 
 
 12, 1897 
 
 July 27, 1897 
 
 September 6, 1897 
 — (?)— 1898 
 
 Specifications of Document Number Page 
 
 GERMANY & CHINA— Convention for Con- 
 cession at Hankow 1895/8 . . 42 
 
 FRANCE, GERMANY, RUSSIA & JAPAN— 
 Exchange of Notes regarding Retrocession 
 of Fengtien Peninsula, and Navigation of 
 Straits of Formosa (1895/10) . . 53 
 
 GERMANY & CHINA— Convention for Con- 
 cession at Tientsin 1895/9 . . 46 
 
 JAPAN & CHINA— Convention for Retroces- 
 sion of Fengtien Peninsula 1895/10 . . SO 
 
 FRANCE & GREAT BRITAIN— Declaration 
 with regard to the Kingdom of Siam, and 
 other Matters 1896/1 . . 54 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Bank- 
 ing Corporation) & CHINA — Agreement for 
 Chinese Imperial Government 5% Sterling 
 Loan of 1896 1896/2 . . 55 
 
 RUSSIA & CHINA— Treaty of Alliance (1896/5) . . 81 
 
 FRANCE & CHINA— Regulations for Mixed 
 
 Police on Sino-Annamite Border (1895/5) . . 32 
 
 DENMARK (Great Northern Telegraph Com- 
 pany), GREAT BRITAIN (Eastern Ex- 
 tension, Australasia & China Telegraph 
 Company) & CHINA — Convention regulat- 
 ing Relations between Chinese Telegraph 
 Administration and the Companies 1896/3 . . 59 
 
 JAPAN & CHINA — Treaty of Commerce and 
 
 Navigation 1896/4 . . 68 
 
 RUSSIA & CHINA— Supplementary Declara- 
 tion regarding Connections between Rus- 
 sian and Chinese Telegraphs (1902/11) . . 382 
 
 RUSSIA & CHINA — Agreement regarding 
 
 Russo-Chinese Bank Association (1896/5) . . 78 
 
 RUSSIA (Russo-Chinese Bank) & CHINA— 
 Contract for Construction and Operation of 
 Chinese Eastern Railway 1896/5 . . 74 
 
 RUSSIA & CHINA— " Cassini Convention "... (1896/5) . . 79 
 
 JAPAN & CHINA — Protocol concerning Japa- 
 nese Settlements, Inland Navigation, Taxes 
 on Manufactures, etc 1896/6 . . 91 
 
 RUSSIA — Statutes of Chinese Eastern Railway 
 
 Company (1896/5) . . 84 
 
 GREAT BRITAIN & CHINA— Agreement 
 modifying Convention of March 1, 1894, 
 relative to Burma and Tibet 1897/1 . . 94 
 
 FRANCE & CHINA — Declaration concerning 
 
 Non-Alienation of Island of Hainan 1897/2 . . 98 
 
 DENMARK (Great Northern Telegraph Com- 
 pany) & CHINA— Telegraph Convention... 1897/3 . . 99 
 
 BELGIUM] (Societe Financiere et Industrielle 
 Beige en Chine) & CHINA — Provisional 
 Contract for Lukouchiao (Peking) — Han- 
 kow Railway (1898/13) . . 145 
 
 FRANCE & CHINA— Identic Note explanatory 
 of Provisions of Commercial Convention of 
 June 20, 1895, and of Railway Contract of 
 June 5, 1896 (1895/5) . . 31 
 
 BELGIUM (Societe Financiere et Industrielle 
 Beige en Chine) & CHINA— Additional 
 Protocol to Contract of May 27. 1897 for 
 Lukouchiao (Peking)— Hankow Railway.... (1898/13) . 148 
 
 RUSSIA & CHINA — Supplementary Declaration 
 regarding Connections between Russian and 
 Chinese Telegraphs (1902/11). . 382 
 
 RUSSIA (Russo-Chinese Bank) & CHINA— 
 Preliminary Loan Agreement for Chengting 
 —Taiyuan Railway (1902/8) . . 267
 
 Date 
 February 11, 1898 
 
 February 13, 1898 
 
 March 
 
 April 
 
 April 
 
 Tune 
 
 1, 1898 
 
 March 
 
 6, 
 
 1898 
 
 March 
 
 27. 
 
 1898 
 
 April 
 
 10, 
 
 1898 
 
 10, 1898 
 
 14, 1898 
 
 April 
 
 20, 
 
 1898 
 
 April 
 
 26, 
 
 1898 
 
 May 
 
 7, 
 
 1898 
 
 May 
 
 13, 
 
 1898 
 
 May 
 
 21, 
 
 1898 
 
 May 
 
 27, 
 
 1898 
 
 June 
 
 7, 
 
 1898 
 
 June 
 
 9, 
 
 1898 
 
 June 
 
 21, 
 
 1898 
 
 26, 1898 
 
 July 
 
 1, 1898 
 
 July 
 
 6, 1898 
 
 July 
 
 10. 1898 
 
 July 
 
 28. 1898 
 
 August 
 
 (?), 1898 
 
 TABLE OF CONTENTS 
 
 Specifications of Document Number 
 
 GREAT BRITAIN & CHINA— Declaration con- 
 cerning Non-Alienation of Yangtze Region. 1898/1 
 GREAT BRITAIN & CHINA— Declaration as 
 to British Nationality of Inspector General 
 of Maritime Customs while British Trade 
 
 predominates 1898/2 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation) & CHINA — Agreement for 
 the Chinese Imperial Government 4^% Gold 
 
 Loan of 1898 1898/3 
 
 GERMANY & CHINA — Convention respecting 
 
 Lease of Kiaochow 1898/4 
 
 RUSSIA & CHINA— Convention for Lease of 
 
 the Liaotung Peninsula 1898/5 
 
 FRANCE & CHINA— Declaration concerning 
 Non-Alienation- of Chinese Territory border- 
 ing on Tongking 1898/6 
 
 FRANCE & CHINA— Agreement regarding 
 Concession for Railway from Tongking to 
 Yunnan, Lease of Kuangchouwan, and Or- 
 ganization of Chinese Postal Service 1898/7 
 
 UNITED STATES (American China Develop- 
 ment Company) & CHINA— Contract for 
 Canton-Hankow Railwav. (Reference only.) (1905/7) 
 GREAT BRITAIN & GERMANY— Declaration 
 
 respecting Weihaiwei (1898/14) 
 
 JAPAN & CHINA— Declaration concerning 
 
 Non-Alienation of Fukien 1898/8 
 
 RUSSIA & CHINA— Additional Agreement de- 
 fining Boundaries of Leased and Neutralized 
 
 Territory in Liaotung Peninsula 1898/9 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration) & CHINA— Preliminary Agreement 
 
 for Shanghai-Nanking Railway (1903/2) 
 
 GREAT BRITAIN (Pekin Syndicate) & 
 CHINA (Shansi Bureau of Trade)— Regu- 
 lations for Mining Purposes, etc., in Shansi (1908/2) 
 FRANCE & CHINA— Convention for Lease of 
 
 Kuangchouwan 1898/10 
 
 GREAT BRITAIN (Hongkong & Shanghai 
 Banking Corporation) & CHINA— Pre- 
 liminary Loan Agreement for Peking- 
 
 Newchwang Railway ( 1898/20) 
 
 GREAT BRITAIN & CHINA— Convention for 
 
 Extension of Hongkong Territory 1898/11 
 
 GREAT BRITAIN (Pekin Syndicate) & 
 CHINA (Yii-Feng Company)— Regulations 
 
 for Mining Purposes, etc., in Honan 1898/12 
 
 BELGIUM (Societe d'Etudes des Chemins de 
 Fer en Chine) & CHINA— Loan Contract, 
 and Operating Contract, for Peking— Han- 
 kow Railway 1898/13 
 
 GREAT BRITAIN & CHINA— Convention for 
 
 Lease of Weihaiwei 1898/14 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 —Agreement concerning Southern Branch of 
 
 Chinese Eastern Railwav 1898/15 
 
 CONGO FREE STATE & CHINA-Treatv'conl 
 fernng Mutual Most-favored-Nation Treat- 
 ment 1898/16 
 
 CHINA — Steam Navigation Inland: Regulations 
 (Amended), 1898: and Supplementary Rules 
 
 thereunder ' 1898/17 
 
 INTERNATIONAL & CHINA-Regulation; 
 governmg Trade on the Yangtzekiang (with 
 Yangtze Port Regulations) 1898/18 
 
 XIX 
 
 Page 
 104 
 
 105 
 
 107 
 112 
 119 
 
 123 
 
 124 
 
 519 
 152 
 126 
 
 127 
 
 402 
 
 700 
 128 
 
 179 
 130 
 
 131 
 
 135 
 152 
 
 154 
 
 159 
 
 159 
 
 163
 
 XX 
 
 TABLE OF CONTENTS 
 
 Date 
 
 August 18, 1898 
 
 August 29, 1898 
 
 September 2, 1898 
 
 October 10, 1898 
 
 October 10, 1898 
 
 February 1, 1899 
 
 February 
 
 17, 
 
 1899 
 
 March 
 
 6, 
 
 1899 
 
 March 
 
 16, 
 
 1899 
 
 April 
 
 14, 
 
 1899 
 
 April 
 
 17. 
 
 1899 
 
 April 
 
 28, 
 
 1899 
 
 May 
 
 2. 
 
 1899 
 
 May 
 
 18, 
 
 1899 
 
 May 
 
 July 
 
 31, 1899 
 
 June 
 
 1. 
 
 1899 
 
 June 
 
 1, 
 
 1899 
 
 June 
 
 1. 
 
 1899 
 
 29, 1899 
 
 August 11, 1899 
 
 September 11, 1899 
 
 October 10, 1899 
 
 December 2, 1899 
 
 Specifications of Document Number Page 
 
 JAPAN & CHINA— Agreement for Establish- 
 ment of Japanese Settlement at Shashi (1896/6) . . 92 
 
 FRANCE & GREAT BRITAIN— Exchange of 
 Notes respecting Reciprocal Protection of 
 Trademarks in China 1898/19 . . 171 
 
 GERMANY (German Syndicate) & GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation, and British & Chinese Corpo- 
 ration) — Arrangement regarding Spheres of 
 Interest in Railway Construction (1900/5) . . 266 
 
 GREAT BRITAIN (British & Chinese Cor- 
 poration) & CHINA — Shanhaikwan-New- 
 chwang Railway Loan Agreement 1898/20 . . 173 
 
 GREAT BRITAIN (British & Chinese Cor- 
 poration) & CHINA — ^Agreement for Con- 
 cession for Nanpiao Mines (1898/20) . . 181 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration) & UNITED STATES (American 
 China Development Company) — Agreement 
 in regard to Railway Business in China 
 (Reference, only) (1905/7) . . 519 
 
 RUSSIA — First Supplement to Charter of Chi- 
 nese Eastern Railway (1898/15) . . 157 
 
 DENMARK (Great Northern Telegraph Com- 
 pany) & CHINA— Additional Article to 
 Telegraph Convention of May 13, 1897 (1897/3) . . 103 
 
 CHINA — Memorial and Rescript concerning In- 
 tercourse between Local Officials and Mis- 
 sionaries (1908/4) . . 718 
 
 GREAT BRITAIN (Mr. Pritchard Morgan) & 
 CHINA (Hua Yi and Hui Tung Companies) 
 — Regulations for Mining in Szechuan 1899/1 . . 183 
 
 GERMANY & CHI NAr— Agreement concerning 
 Establishment of a Maritime Customs Office 
 at Tsingtao 1899/2 . . 189 
 
 GREAT BRITAIN & RUSSIA— Exchange of 
 
 Notes regarding Railway Interests in China 1899/3 . . 204 
 
 CHINA — Proclamation in regard to Extension 
 
 of International Settlement at Shanghai.... 1899/4 . . 205 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (British & Chinese Corporation) 
 & CHINA — Preliminary Agreement for 
 Tientsin-Chinkiang Railway (1908/1) . . 694 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Kirin Province) — Agreement regarding 
 Jurisdiction over Chinese Subjects in Rail- 
 way Zone (1901/2) . . 277 
 
 GERMANY— Charter of the Shantung Railway 
 
 Company (1900/3) . . 240 
 
 GERMANY — Charter of Schantung Bergbau 
 
 Gesellschaft (1900/4) . . 252 
 
 RUSSIA & CHINA— Note regarding Construc- 
 tion of Railways Northward and North- 
 eastward from Peking 1899/5 . . 207 
 
 INTERNATIONAL & CHINA^Conventions 
 and Declarations of the First Hague Peace 
 Conference (Note, only) 1907/18 . . 682 
 
 RUSSIA — Imperial Order for Building Dalny 
 
 and Creating it a Free Port (1898/5) . . 121 
 
 KOREA & CHINA— Treaty of Amity and 
 
 Commerce 1899/6 . . 208 
 
 GERMANY — Rules of Schantung Bergbau Ge- 
 sellschaft (1900/4) . . 254 
 
 RUSSIA (Chinese Eastern Railway Company) & 
 CHINA (Heilungkiang Province) — Agree- 
 ment regarding Jurisdiction over Chinese 
 Subjects in Railway Zone (Reference, only) (1902/1) . . 321
 
 Date 
 December 14, 1899 
 
 January 15, 1900 
 
 February 3, 1900 
 March 20, 1900 
 
 March 21, 1900 
 
 March 21, 1900 
 
 July 13, 1900 
 
 October 16, 1900 
 
 October 26, 1900 
 
 January 16, 1901 
 
 January 30, 1901 
 February (?), 1901 
 April 23, 1901 
 
 July 
 
 18, 1901 
 
 August 2, 1901 
 
 September 7, 1901 
 
 January 14, 1902 
 
 January 14, 1902 
 
 January 30, 1902 
 
 April 8, 1902 
 
 TABLE OF CONTENTS xxi 
 
 Specifications of Document Number Page 
 
 MEXICO & CHINA— Treaty of Amity and 
 
 Commerce 1899/7 . . 214 
 
 FRANCE & GREAT BRITAIN— Exchange of 
 Notes respecting Regulations to be applied 
 in any future Extension of British or 
 French Concession at Hankow 1900/1 . . 220 
 
 FRANCE &) CHINA— Postal Arrangement (1906/3) . . 588 
 
 UNITED STATES & FRANCE, GERMANY, 
 GREAT BRITAIN, ITALY, JAPAN & 
 RUSSIA — Declarations accepting the Com- 
 mercial Policy of the "Open Door" in 
 China 1900/2 . . 221 
 
 GERMANY (Schantung Eisenbahn Gesellschaft) 
 & CHINA — Regulations for Kiaochow- 
 Tsinanfu Railway 1900/3 . . 236 
 
 GERMANY (Schantung Bergbau Gesellschaft) 
 & CHINA — Agreement for Shantung Ger- 
 man-Chinese Mining Company 1900/4 . . 248 
 
 UNITED STATES (American China Develop- 
 ment Company) & CHINA — Supplemental 
 Canton-Hankow Railway Loan Agreement. 
 (Reference, only.) (1905/7) . . 519 
 
 GERMANY & GREAT BRITAIN— Agreement 
 
 relative to China 1900/5 . . 263 
 
 DENMARK (Great Northern Telegraph Com- 
 pany), GREAT BRITAIN (Eastern Exten- 
 sion Telegraph Company) & CHINA — 
 Agreement regarding Land Telegraph Lines 
 between Taku and Peking 1900/6 . . 267 
 
 AUSTRIA-HUNGARY, BELGIUM, FRANCE, 
 GERMANY, GREAT BRITAIN, ITALY, 
 JAPAN, NETHERLANDS, RUSSIA, 
 SPAIN, UNITED STATES & CHINA— 
 Reply of Chinese Plenipotentiaries to Joint 
 Note in behalf of Powers, December 22, 
 1900, embodying Conditions for Reestablish- 
 ment of Normal Relations with China (1901/3) . . 310 
 
 RUSSIA &j CHINA— Preliminary Arrangement 
 
 in regard to Manchuria (1902/3) . . 329 
 
 RUSSIA & CHINA— " Secret Treaty" concern- 
 ing Manchuria (1902/3) . . 330 
 
 GREAT BRITAIN (British Government, and 
 Eastern Extension, Australasia & China 
 Telegraph Company) — Agreement for Sub- 
 marine Cable between Chefoo and Weihaiwei 1901/1 . . 269 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Kirin Province) — Agreement regarding 
 Jurisdiction over Chinese Subjects in Rail- 
 way Zone 1901/2 . . 274 
 
 RUSSIA — Ukaz regarding Jurisdiction in Chinese 
 
 Eastern Railway Zone (1896/5) . . 88 
 
 AUSTRIA-HUNGARY, BELGIUM, FRANCE, 
 GERMANY, GREAT BRITAIN, ITALY, 
 JAPAN, NETHERLANDS. RUSSIA, 
 SPAIN, UNITED STATES & CHINA— 
 Final Protocol for the Settlement of the 
 Disturbances of 1900 1901/3 - , 278 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Heilungkiang Province) — Agreement re- 
 garding Jurisdiction over Chinese Subjects 
 in Railway Zone 1902/1 . . 321 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 — Agreement for Coal Mining in Heilung- 
 kiang Province (1907/12) . . 661 
 
 GREAT BRITAIN & JAPAN— Agreement rela- 
 tive to China and Korea 1902/2 . . 324 
 
 RUSSIA & CHINA— Convention in regard to 
 
 Manchuria 1902/3 . . 326
 
 XXll 
 
 TABLE OF CONTENTS 
 
 Date 
 April 29, 1902 
 
 June 
 
 10, 1902 
 
 June 14, 1902 
 
 June 
 
 21, 
 
 1902 
 
 June 
 
 2i, 
 
 1902 
 
 July 
 
 11, 
 
 1902 
 
 August 
 
 7, 
 
 1902 
 
 August 
 
 29, 
 
 1902 
 
 September 
 September 
 
 5, 1902 
 22, 1902 
 
 October 15, 1902 
 
 October 
 
 15, 
 
 1902 
 
 October 
 
 22, 
 
 1902 
 
 October 
 
 22, 
 
 1902 
 
 November 
 
 27, 
 
 1902 
 
 January 
 
 27, 
 
 1903 
 
 July 
 
 9, 
 
 1903 
 
 August 
 
 7, 
 
 1903 
 
 August 
 
 12, 
 
 1903 
 
 September 
 
 24. 
 
 1903 
 
 October 
 
 8. 
 
 1903 
 
 October 
 
 8, 
 
 1903 
 
 Specifications of Document Number Page 
 
 GREAT BRITAIN & CHINA— Agreement for 
 Restoration of Peking-Shanhaikwan Railway, 
 and Additional Agreement respecting Man- 
 agement of Northern Railways and Build- 
 ing of New Branch Lines 1902/4 . . 331 
 
 INTERNATIONAL & CHINA — Provisional 
 Rules defining Respective Jurisdictions of 
 Mixed Courts of International and French 
 Settlements at Shanghai 1902/5 . . 338 
 
 AUSTRIA-HUNGARY, BELGIUM, FRANCE, 
 GERMANY, GREAT BRITAIN, ITALY, 
 JAPAN, NETHERLANDS, RUSSIA, 
 SPAIN, UNITED STATES— Protocol con- 
 cerning Apportionment of Boxer Indemnity (1901/3) . . 311 
 
 FRANCE & GREAT BRITAIN (Syndicat du 
 Yunnan) & CHINA — Agreement for Mining 
 Concession in Yunnan Province (1911/10) . . 911 
 
 RUSSIA & CHINA— Exchange of Notes in re- 
 gard to Pledging of Peking — Kalgan and 
 other Railways North of Peking (1902/4) . . 335 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 
 — Agreement for Kirin-Changchun Railway.. (1907/3) . . 629 
 
 GERMANY (Carlowitz & Co.) & CHINA (Ping 
 
 Yang Coal Mine)— Agreements for Loans.. (1913/13) . . 1083 
 
 AUSTRIA-HUNGARY, BELGIUM, DEN- 
 MARK, FRANCE, GERMANY, GREAT 
 BRITAIN, ITALY, JAPAN, NETHER- 
 LANDS, NORWAY, PORTUGAL. RUS- 
 SIA, SPAIN, SWEDEN, UNITED STATES 
 & CHINA— Revised Import Tariff Agree- 
 ment 1902/6 . . 339 
 
 GREAT BRITAIN & CHINA— Treaty respecting 
 
 Commercial Relations, etc. (with Annexes) 1902/7 . . 342 
 
 RUSSIA & CHINA— t.'\greement for Rendition 
 of Shanhaikwan-Hsinmintun-Yingkow Rail- 
 way (1902/3) . . 330 
 
 RUSSIA (Russo-Chinese Bank) & CHINA^ 
 Loan Contract, and Operating Contract, for 
 Chengtingfu-Taivuanfu Railway 1902/8 . . 356 
 
 PORTUGAL & CHINA— Supplementary Com- 
 mercial Convention 1902/9 . . 370 
 
 DENMARK (Great Northern Telegraph Com- 
 pany) & CHINA — Agreement concerning 
 Taku-Kiakhta Telegraph 1902/10 . . 375 
 
 GREAT BRITAIN (Eastern Extension Tele- 
 graph Company) & CHINA — Agreement 
 concerning Taku-Peking Telegraph (1902/10) . . 379 
 
 RUSSIA & CHINA— Supplementary Declaration 
 regarding Connections between Russian and 
 Chinese Telegraphs 1902/11 . . 381 
 
 PORTUGAL & CHINA— Additional Convention 
 regarding Establishment of Customs House 
 at Macao 1903/1 . . 385 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration) & CHINA — Agreement for Shanghai- 
 Nanking Railway Loan 1903/2 . . 387 
 
 GREAT BRITAIN & ITALY— Exchange of 
 Notes respecting Reciprocal Protection of 
 Trademarks in China 1903/3 . . 409 
 
 RUSSIA — Imperial Order creating Imperial 
 
 Lieutenancy of Far East (1898/5) . . 122 
 
 UNITED STATES & CHINA— Exchange of 
 
 Notes in regard to taxation (1903/5) . . 451 
 
 JAPAN & CHINA— Supplementary Treaty of 
 
 Commerce and Navigation (with Annexes) .. 1903/4 . . 411 
 
 UNITED STATES & CHINA— Treaty for the 
 
 Extension of Commercial Relations 1903/S . . 423
 
 Date 
 October 29, 1903 
 
 November 12, 1903 
 
 March 
 
 6, 1904 
 
 March 
 
 25, 
 
 1904 
 
 April 
 
 17, 
 
 1904 
 
 May 
 
 13, 
 
 1904 
 
 June 
 
 13, 
 
 1904 
 
 July 
 August 
 
 30, 1904 
 8, 1904 
 
 September 
 
 7, 1904 
 
 September 
 
 7, 1904 
 
 September 
 
 30, 1904 
 
 October 
 November 
 
 21, 1904 
 11, 1904 
 
 December 
 
 21, 1904 
 
 December 
 
 29, 1904 
 
 January 
 
 15, 1905 
 
 March 
 
 22, 1905 
 
 May 
 
 23, 1905 
 
 June 
 
 7, 1905 
 
 June 
 
 28, 1905 
 
 July 
 
 2, 1905 
 
 July 
 July 
 
 2, 1905 
 
 3, 1905 
 
 TABLE OF CONTENTS 
 
 Specifications of Document Number 
 
 FRANCE & CHINA— Contract for Yunnan 
 
 Railway 1903/6 
 
 BELGIUM (Compagnie Generale de Chemins 
 de Fer et de Tramways en Chine) & 
 CHINA — Loan Contract, and Operating 
 Contract, for Kaifengfu-Honanfu Railway. . 1903/7 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Heilungkiang Province)— Agreement for 
 
 Timbering. (Reference, only) (1908/6) 
 
 CHINA — Customs Regulations for Port of 
 
 Kongmoon 1904/1 
 
 GERMANY & CHINA— Agreement concerning 
 Maritime Customs Office at Tsingtao : In- 
 land Waters Steam Navigation (1899/2) 
 
 GREAT BRITAIN & CHINA— Convention re- 
 specting Chinese Labor in British Colonies 
 
 and Protectorates 1904/2 
 
 AUSTRIA-HUNGARY, BELGIUM, FRANCE, 
 GERMANY, GREAT BRITAIN, ITALY, 
 JAPAN, NETHERLANDS, RUSSIA. 
 SPAIN, UNITED STATES— Protocol re- 
 garding Administration of Legation Quarter 
 
 in Peking (1901/3) 
 
 CHINA— West River Regulations 1904/3 
 
 GREAT BRITAIN & PORTUGAL— Exchange 
 of Notes respecting Reciprocal Protection 
 
 of Trademarks in China 1904/4 
 
 GREAT BRITAIN & TIBET— Convention of 
 
 ^ Lhasa (1906/2) 
 
 GREAT BRITAIN & NETHERLANDS— Ex- 
 change of Notes respecting Reciprocal Pro- 
 tection of Trademarks in China 1904/5 
 
 BELGIUM & GREAT BRITAIN— Exchange 
 of Notes respecting Reciprocal Protection 
 
 of Trademarks in China 1904/6 
 
 FRANCE & CHINA— Parcels Post Arrangement (1906/3) 
 PORTUGAL & CHINA— (Unratified) Treaty 
 
 of Commerce (1902/9) 
 
 INTERNATIONAL & CHINA— Convention ex- 
 empting Hospital Ships from Payment of 
 
 Dues, etc. ( Note, only) 1904/7 
 
 GREAT BRITAIN (Hongkong) & CHINA— 
 
 Postal Arrangement (1906/3) 
 
 RUSSIA & CHINA— Supplementary Declara- 
 tion regarding Connections between Russian 
 
 and Chinese Telegraphs (1902/11) 
 
 BELGIUM (Societe des Mines du Luhan) & 
 CHINA (Chihli Lincheng Mining Company) 
 — Contract concerning the Lincheng Mines. . 1905/1 
 GREAT BRITAIN & CHINA-Convention re- 
 specting Junction of Chinese and Burmese 
 
 Telegraphs 1905/2 
 
 INTERNATIONAL & CHINA-Convention for 
 International Institute of Agriculture. (Note, 
 
 ^^ only) 1905/3 
 
 GREAT BRITAIN & UNITED STATES— Ex- 
 change of Notes in regard to Reciprocal Pro- 
 tection of Trademarks in China 1905/4 
 
 AUSTRIA-HUNGARY. BELGIUM. FRANCE, 
 GERMANY, GREAT BRITAIN, ITALY 
 JAPAN, NETHERLANDS, RUSSIA, 
 SPAIN, UNITED STATES & CHINA— 
 Notes effecting final Settlement of Question 
 
 of Boxer Indemnity (1901/3) 
 
 GREAT BRITAIN (Pekin Syndicate) & 
 CHINA — Letters regarding Supplementary 
 
 Taokow-Chinghua Railwav Loan (1905/5) 
 
 GREAT BRITAIN (Pekin Syndicate) & CHINA 
 
 XXlll 
 
 Page 
 453 
 
 462 
 
 724 
 476 
 
 191 
 
 478 
 
 315 
 484 
 
 489 
 
 578 
 
 490 
 
 492 
 590 
 
 371 
 
 493 
 592 
 
 383 
 
 493 
 
 498 
 
 501 
 502 
 
 319 
 515
 
 XXIV 
 
 TABLE OF CONTENTS 
 
 Date 
 
 August 12, 1905 
 August 13, 1905 
 
 August 29, 1905 
 
 September 1, 1905 
 September 5, 1905 
 September 9, 1905 
 
 September 9, 1905 
 
 September 27, 1905 
 October 2, 1905 
 
 October 
 
 3, 
 
 1905 
 
 October 
 
 23, 
 
 1905 
 
 October 
 
 30, 
 
 1905 
 
 November 
 
 3, 
 
 1905 
 
 November 
 
 27, 
 
 1905 
 
 November 
 
 28, 
 
 1905 
 
 December 
 
 1, 
 
 1905 
 
 December 
 
 2, 
 
 1905 
 
 December 
 
 6, 
 
 1905 
 
 December 
 
 11, 
 
 1905 
 
 December 
 
 18, 
 
 1905 
 
 December 
 
 22, 
 
 1905 
 
 December 
 
 22, 
 
 1905 
 
 December 
 
 27 
 
 1905 
 
 January 
 
 4 
 
 1906 
 
 Specifications of Document Number Page 
 — Loan Agreement, and Working Agree- 
 ment, for Taokow-Chinghua Railway 1905/5 . . 506 
 
 GREAT BRITAIN & JAPAN— Agreement re- 
 specting Integrity of China, etc 1905/6 . . 516 
 
 BELGIUM (Societe d'Etudes de Chemins de 
 Per en Chine) & CHINA— Contract for 
 Supplementary Loan to complete Peking- 
 Hankow Railway (1898/13). . 151 
 
 UNITED STATES (American China Develop- 
 ment Company) & CHINA — Agreement can- 
 celling Canton-Hankow Railway Concession 1905/7 . . 519 
 
 JAPAN & RUSSIA— Protocol of Armistice.... (1905/8) . . 527 
 
 JAPAN & RUSSIA— Treaty of Peace 1905/8 . . 522 
 
 GREAT BRITAIN (Hongkong) & CHINA— 
 Agreement for Loan to Redeem Canton- 
 Hankow Railway Concession 1905/9 . .. 528 
 
 GREAT BRITAIN & CHINA — Letter of 
 Hukuang Viceroy regarding Preference to 
 British Nationals for Canton-Hankow and 
 other Railways in Hupeh and Hunan (1905/9) . . 530 
 
 INTERNATIONAL & CHINA— New Agree- 
 ment for Huangpu Conservancy 1905/10 . . 531 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration, Pekin Syndicate, Yangtze Valley 
 Company, and Chinese Central Railways) & 
 FRANCE (Banque de I'Indo-Chine, etc.) — 
 Agreement regarding Construction of certain 
 Railways 1905/11 . . 534 
 
 FRANCE & UNITED STATES— Exchange of 
 Notes in regard to Reciprocal Protection of 
 Trademarks in China 1905/12 . . 538 
 
 NETHERLANDS & UNITED STATES— Ex- 
 change of Notes in regard to Reciprocal 
 Protection of Trademarks in China 1905/13 . . 540 
 
 JAPAN & RUSSIA— Protocol of Procedure in 
 withdrawing Troops, and transferring Rail- 
 ways (1905/8). . 527 
 
 GERMANY & CHINA— Postal Arrangement, 
 and Exchange of Notes supplementary 
 thereto (1906/3) . . 594 
 
 BELGIUM & UNITED STATES— Exchange 
 of Notes in regard to Reciprocal Protection 
 of Trademarks in China 1905/14 . . 542 
 
 GERMANY & CHINA— Agreement for With- 
 drawal of German Troops from Kiaochow 
 and Kaomi (1898/4) . . 118 
 
 GERMANY & CHINA— Amendment to Agree- 
 ment of April 17, 1899, concerning Maritime 
 Customs Office at Tsingtao (1899/2) . . 192 
 
 GERMANY & CHINA— Ordinance regulating 
 
 Customs Procedure in Kiaochow Territory.. (1899/2) . . 194 
 
 GERMANY & UNITED STATES— Exchange 
 of Notes in regard to Reciprocal Protection 
 of Trademarks in China 1905/15 . . 544 
 
 DENMARK & GREAT BRITAIN— Exchange 
 of Notes in regard to Reciprocal Protection 
 of Trademarks in China 1905/16 . . 546 
 
 ITALY & UNITED STATES— Exchange of 
 Notes in regard to Reciprocal Protection of 
 Trademarks in China 1905/17 . . 547 
 
 JAPAN & CHINA— Treaty, and Additional 
 
 Agreement, relating to Manchuria 1905/18 . . 549 
 
 JAPAN & CHINA— "Secret Protocols" to 
 Treaty of December 22, 1905, relating to 
 
 Manchuria. (Summary, only) (1905/18) . . 554 
 
 GREAT BRITAIN (Natal) & CHINA— Postal 
 
 Arrangement (1906/3) . . 596 
 
 RUSSIA & CHINA— Supplementary Declara-
 
 Date 
 
 March 
 
 26, 
 
 1906 
 
 April 
 
 27, 
 
 1906 
 
 May 
 
 26, 
 
 1906 
 
 June 
 
 7, 
 
 1906 
 
 June 
 
 28, 
 
 1906 
 
 July 
 
 6, 
 
 1906 
 
 July 
 
 31, 
 
 1906 
 
 July 
 
 31, 
 
 1906 
 
 July 
 
 31. 
 
 1906 
 
 August 
 
 1, 
 
 1906 
 
 September 
 
 1, 
 
 1906 
 
 September 
 
 1, 
 
 1906 
 
 October 
 
 15, 
 
 1906 
 
 October 
 
 16, 
 
 1906 
 
 October 
 
 29, 
 
 1906 
 
 November 
 
 9, 
 
 1906 
 
 November 
 
 30, 
 
 1906 
 
 December 
 
 5, 
 
 1906 
 
 -(?)- 
 
 
 1907 
 
 February 
 
 1, 
 
 1907 
 
 February 
 March 
 
 11, 
 
 7, 
 
 1907 
 1907 
 
 April 
 
 15, 
 
 1907 
 
 April 
 
 17, 
 
 1907 
 
 TABLE OF CONTENTS xxv 
 
 Specifications of Document Number Page 
 
 tion regarding Connections between Russian 
 and Chinese Telegraphs (1902/11) . . 385 
 
 GERMANY & GREAT BRITAIN— Exchange 
 of Notes respecting Reciprocal Protection 
 of Trademarks in China 1906/1 . . 574 
 
 GREAT BRITAIN & CHINA— Convention re- 
 specting Tibet (to which is annexed Conven- 
 tion signed at Lhasa, September 7, 1904) 1906/2 . . 576 
 
 INTERNATIONAL & CHINA— International 
 Postal Convention, and Parcels Post Con- 
 vention. (Note, only) 1906/3 . . 585 
 
 JAPAN — Imperial Order sanctioning the Or- 
 ganization of South Manchuria Railway 
 Company (1905/18) . . 555 
 
 RUSSIA & UNITED STATES— Exchange of 
 Notes in regard to Reciprocal Protection of 
 Trademarks in China 1906/4 . . 606 
 
 INTERNATIONAL & CHINA— International 
 Red Cross Convention for Amelioration of 
 Condition of Wounded. (Note, only) 1906/5 . . 608 
 
 JAPAN — Imperial Ordinance concerning Or- 
 ganization of Government General of 
 Kwantung ._ (1905/18). . 565 
 
 JAPAN — Imperial Ordinance concerning Or- 
 ganization of Kwantung Post and Telegraph 
 Office. (Extracts, only) (1905/18) . . 567 
 
 JAPAN — Imperial Ordinance relating to Military 
 Department of Government General of 
 Kwantung (1905/18). . 568 
 
 JAPAN — ^Government Order concerning South 
 Manchuria Railway Company, with Articles 
 of Incorporation (1905/18) . . 557 
 
 JAPAN— (Kwantung Government General) — 
 Regulations relating to Vessels sailing to 
 and from Dairen (1905/18) . . 572 
 
 JAPAN — (Kwantung Government General) — 
 Regulations for Control of Residents in 
 Kwantung (1905/18) . . 571 
 
 BELGIUM & RUSSIA— Exchange of Notes con- 
 cerning Reciprocal Protection of Trademarks 
 in China 1906/6 . . 608 
 
 ITALY & RUSSIA— Exchange of Notes re- 
 specting Reciprocal Protection of Trade- 
 marks in China 1906/7 . . 609 
 
 GREAT BRITAIN & RUSSIA— Exchange of 
 Notes concerning Reciprocal Protection of 
 Trademarks in China 1906/8 . . 610 
 
 JAPAN & CHINA— Agreement in regard to 
 
 Rendition of Yingkow (1906/10) . . 612 
 
 FRANCE & RUSSIA— Exchange of Notes con- 
 cerning Reciprocal Protection of Trademarks 
 in China 1906/9 . . 611 
 
 JAPAN & CHINA— Agreement for Rendition of 
 
 Yingkow 1906/10 . . 612 
 
 JAPAN & CHINA — Memorandum concerning 
 
 Mines along Antung-Mukden Railway (1909/9) . . 791 
 
 GERMANY & RUSSIA— Exchange of Notes 
 concerning Reciprocal Protection of Trade- 
 marks in China 1907/1 . . 614 
 
 GREAT BRITAIN— Order in Council (1905/4) . . 505 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration) & CHINA — Canton-Kowloon Rail- 
 way Loan Agreement 1907/2 . . 615 
 
 JAPAN & CHINA— Convention regarding 
 Hsinmin-Mukden and Kirin-Changchun 
 Railways 1907/3 . . 627 
 
 GERMANY & CHINA— Ordinance regulating 
 Customs Procedure in Kiaochow Territory : 
 Manufactures in German Territory (1899/2) . . 199
 
 XXVI 
 
 TABLE OF CONTENTS 
 
 Date 
 May 23, 
 
 1907 
 
 May 
 
 2T, 
 
 1907 
 
 May 
 
 30, 
 
 1907 
 
 June 
 
 10, 
 
 1907 
 
 June 
 
 12, 
 
 1907 
 
 June 
 
 13, 
 
 1907 
 
 June 
 
 26, 
 
 1907 
 
 July 
 
 8, 
 
 1907 
 
 July 
 
 15, 
 
 1907 
 
 July 
 August 
 
 30, 
 30, 
 
 1907 
 1907 
 
 August 
 
 30, 
 
 1907 
 
 August 
 
 30, 
 
 1907 
 
 August 
 
 30, 
 
 1907 
 
 August 
 
 31, 
 
 1907 
 
 September 
 
 28, 
 
 1907 
 
 September 
 
 28, 
 
 1907 
 
 October 
 
 7, 
 
 1907 
 
 October 
 
 18, 
 
 1907 
 
 November 
 
 19, 
 
 1907 
 
 January 
 
 13, 
 
 1908 
 
 January 
 
 21, 
 
 1908 
 
 January 24 (?) 
 
 1908 
 
 March 
 
 6 
 
 1908 
 
 March 
 
 12, 1908 
 
 Specifications of Document Number 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 — Agreement for Transfer to China of Tele- 
 graph Lines in Manchuria 1907/4 
 
 JAPAN (South Manchuria Railway) & CHINA 
 — Agreement for handing over to China the 
 Hsinmintun-Mukden Railway 1907/5 
 
 JAPAN & CHINA— Agreement regarding Estab- 
 lishment of Maritime Customs Office at 
 Dairen, and for Inland Waters Steam Navi- 
 gation 1907/6 
 
 FRANCE & JAPAN— Agreement in regard to 
 
 the Continent of Asia 1907/7 
 
 DENMARK & UNITED STATES— Exchange 
 of Notes in regard to Reciprocal Protection 
 of Trademarks in China 1907/8 
 
 JAPAN & RUSSIA— Provisional Convention 
 (with Additional Article and Protocol) con- 
 cerning Junction of Japanese and Russian 
 Railways in Manchuria 1907/9 
 
 JAPAN & CHINA— Provisional Customs Regu- 
 lations for Leased Territory of Kwantung. . (1907/6) 
 
 RUSSIA & CHINA— Experimental Regulations 
 
 for Customs Houses in Northern Manchuria 1907/10 
 
 RUSSIA & CHINA— Exchange of Notes re- 
 garding Special Privileges in respect to Im- 
 ports into Manchuria (1907/10) 
 
 JAPAN & RUSSIA— Political Convention 1907/11 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Heilungkiang Province) — Agreement for 
 Coal Mining 1907/12 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Heilungkiang Province) — Contract for Ex- 
 propriation of Lands 1907/13 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Kirin Province) — Contract for Expropria- 
 tion of Lands 1907/14 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 
 (Kirin Province) — Agreement for Timbering 1907/15 
 
 GREAT BRITAIN & RUSSIA— Convention re- 
 lating to Persia, Afghanistan and Tibet.... 1907/16 
 
 JAPAN (South Manchuria Railway Company) 
 — Regulations concerning Councils of Branch 
 Offices of Railway (1905/18) 
 
 JAPAN (South Manchuria Railway Company) 
 Order concerning Taxes in Leased Lands of 
 Railway (1905/18) 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 — Agreement in regard to Working of Rail- 
 wav's Telegraph Lines 1907/17 
 
 INTERNATIONAL & CHINA— Conventions 
 and Declarations of Second Hague Peace 
 Conference. (Note, only) . . 1907/18 
 
 CHINA — Experimental Regulations for Duties 
 on Goods shipped to the new Ports in Man- 
 churia 1907/19 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Chinese Central Railways) & 
 CHINA — Agreement for Tientsin-Pukow 
 Railway Loan 1908/1 
 
 GREAT BRITAIN (Pekin Syndicate) & CHINA 
 (Shansi Province) — Agreement for Redemp- 
 tion of Syndicate's Mining Rights in Shansi 1908/2 
 
 GREAT BRITAIN & CHINA— " Ten-Year 
 
 Agreement" for Suppression of Opium (1911/4) 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA — Agreement for Shanghai- 
 Hangchow-Ningpo Railway Loan 1908/3 
 
 CHINA — Memorial and Rescript for Revision of
 
 Date 
 
 March 25, 1908 
 
 April 
 April 
 
 April 
 
 5, 1908 
 
 13, 1908 
 
 14, 1908 
 
 April 
 
 20, 
 
 1908 
 
 May 
 
 14, 
 
 1908 
 
 May 
 
 19, 
 
 1908 
 
 May 
 
 25, 
 
 1908 
 
 May 
 
 30, 
 
 1908 
 
 May 
 
 30, 
 
 1908 
 
 July 
 
 2, 
 
 1908 
 
 September 
 
 11, 
 
 1908 
 
 October 
 
 8, 
 
 1908 
 
 October 8, 1908 
 
 October 8, 1908 
 
 October 12, 1908 
 
 November 7, 1908 
 
 November 7, 1908 
 
 November 12, 1908 
 
 November 30, 1908 
 
 January 4, 1909 
 
 February 9, 1909 
 
 February 19, 1909 
 
 February 19, 1909 
 
 TABLE OF CONTENTS 
 
 Specifications of Document Number 
 
 Procedure governing Intercourse between 
 
 Local Officials and Missionaries 1908/4 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA — Agreement regarding Pe- 
 king-Mukden Railway (Shanhaikwan-Hsin- 
 
 mintun Section) 1908/5 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 (Heilungkiang Province) — Agreement for 
 
 Timbering 1908/6 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA— Working Agreement, and 
 Arrangement regarding Control of Shanghai- 
 Nanking Railway (1903/2) 
 
 GERMANY (Ching Ching Minen Gesellschaft) 
 & CHIN At— Agreement in regard to Ching 
 
 Hsing Mines 1908/7 
 
 GREAT BRITAIN, TIBET & CHINA— Tibet 
 
 Trade Regulations (1906/2) 
 
 JAPAN & CHINA— Agreement for Sino- 
 Japanese Joint Stock Lumber Company for 
 
 Exploitation of Yalu Timber 1908/8 
 
 JAPAN & UNITED STATES— Convention for 
 Reciprocal Protection of Inventions, Designs, 
 
 Trademarks and Copyrights in China 1908/9 
 
 UNITED STATES— Joint Resolution providing 
 for Remission of a Portion of American 
 
 Share of Boxer Indemnity (1901/3) 
 
 INTERNATIONAL & CHINA— Revised Regu- 
 lations for Arms and Ammunition 1908/10 
 
 RUSSIA & CHINA— Provisional Regulations 
 for Chinese Customs Houses 'at Manchuria 
 
 and Pogranichnaya (1907/10) 
 
 SWEDEN & CHINA— Treaty of Friendship, 
 
 Commerce and Navigation 1908/11 
 
 JAPAN & CHINA— Regulations for Sino- 
 
 Japanese Yalu Timber Company (1908/8) 
 
 FRANCE (Banque de I'lndo-Chine), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation) & CHINA— Agreement for 
 Loan to Board of Posts and Communica- 
 tions 1908/12 
 
 CHINA— Prospectus of 7% Peking-Hankow 
 
 Railway Redemption Loan 1908/13 
 
 UNITED STATES & CHINA— Arbitration 
 
 Convention 1908/14 
 
 JAPAN & CHINA — Convention concerning 
 Kwantung-Chefoo Cable and Japanese Tele- 
 graph Lines in Manchuria 1908/15 
 
 JAPAN & CHINA— (Agreement concerning the 
 
 Working of Chefoo-Kwantung Cable 1908/16 
 
 JAPAN & CHINA — Agreement concerning the 
 Working of Japanese and Chinese Tele- 
 graphs in Manchuria 1908/17 
 
 JAPAN & CHINA — Supplementary Loan Agree- 
 ment for Hsinmintun-Mukden and Kirin- 
 
 Changchun Railways 1908/18 
 
 JAPAN & UNITED STATES— Exchange of 
 
 Notes declaring Policy in the Far East 1908/19 
 
 FRANCE (Indo-China) & CHINA— Arrange- 
 ment for the Maintenance of Order on the 
 Sino-Annamite Frontier. (Reference, only) . . (1915/4) 
 GREAT BRITAIN (India) & CHINA— Postal 
 
 Arrangement 1909/1 
 
 RUSSIA & CHINA— Postal Arrangement (1906/3) 
 
 RUSSIA (Chinese Eastern Railway) & CHINA 
 — Arrangement for Transportation of Chi- 
 nese Mails 1909/2 
 
 xxvu 
 
 Page 
 
 717 
 
 719 
 721 
 
 405 
 
 724 
 
 582 
 
 731 
 
 735 
 
 311 
 7Z7 
 
 651 
 
 740 
 7iZ 
 
 7A7 
 752 
 759 
 
 760 
 762 
 
 765 
 
 767 
 769 
 
 1196 
 
 771 
 597 
 
 771
 
 XXVlll 
 
 TABLE OF CONTENTS 
 
 Date 
 May 10, 1909 
 
 May 
 
 19, 1909 
 
 May 24, 1909 
 
 June 5 & 22, 1909 
 June 6, 1909 
 
 July 
 
 6, 1909 
 
 August 
 August 
 
 3, 
 17, 
 
 1909 
 1909 
 
 August 
 
 18, 
 
 1909 
 
 August 
 
 18, 
 
 1909 
 
 August 
 
 19, 
 
 1909 
 
 August 
 
 28, 
 
 1909 
 
 September 
 
 4, 
 
 1909 
 
 September 
 
 4, 
 
 1909 
 
 September 
 
 14, 
 
 1909 
 
 October 
 
 October 
 
 2, 1909 
 
 6, 1909 
 
 February 9, 1910 
 
 April 5, 1910 
 
 May 22, 1910 
 
 May 23. 1910 
 
 June 10. 1910 
 
 July 1, 1910 
 
 Specifications of Document Number Page 
 
 RUSSIA & CHINA— Preliminary Agreement, 
 
 and Exchange of Notes, in regard to Mu- 
 nicipal Administrations in the Railway Zone (1914/14) . . 1185 
 GREAT BRITAIN (Pauling & Company) & 
 
 CHINA — Agreement for Preliminary Sur- 
 vey of Kueilin-Chuanchow Railway Line... 1909/3 . . 774 
 SWEDEN & CHINA— Additional Article of 
 
 Treaty of Commerce, July 2, 1908 (1908/11) . . 747 
 
 GREAT BRITAIN (Hongkong) & CHINA— 
 
 Parcels Post Arrangement 1909/4. . . 776 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 
 BRITAIN (Hongkong & Shanghai Banking 
 
 Corporation) & CHINA— Agreement for 
 
 Loan for Hukuang Railways (1911/5) . . 880 
 
 FRANCE (Banque de ITndo-Chine), GERMANY 
 
 (Deutsch-Chinesische Eisenbahn Gesellschaft) 
 
 & GREAT BRITAIN (British & Chinese 
 
 Corporation, and Chinese Central Railways) 
 
 — Memorandum of Agreement in regard to 
 
 Railway Loans (1910/5) . . 833 
 
 BRAZIL & CHINA— Arbitration Convention... 1909/5 . . 781 
 PERU & CHINA— Protocol determining Dura- 
 tion of Treaty of Friendship, etc., of June 26, 
 
 1874 App. G . . 1523 
 
 JAPAN (South Manchuria Railway) & CHINA 
 
 — Detailed Agreement for Hsinmintun-Muk- 
 
 den Railway Loan 1909/6 . . 782 
 
 JAPAN (South Manchuria Railway) & CHINA 
 
 — Detailed Agreement for Kirin-Changchun 
 
 Railway Loan 1909/7 . . 785 
 
 JAPAN & CHINA— Memorandum concerning 
 
 Reconstruction of Antung-Mukden Railway. . 1909/8 . . 787 
 PERU & CHINA — Protocol concerning Chinese 
 
 Immigration into Peru App. G. . . 1524 
 
 JAPAN & CHINA — Agreement concerning 
 
 Mines and Railways in Manchuria 1909/9 . . 790 
 
 JAPAN & CHINA— Agreement relating to 
 
 Chientao Region 1909/10 . . 796 
 
 FRANCE & JAPAN — Convention for Reciprocal 
 
 Protection of Trademarks, Patents, Designs 
 
 and Copyrights in China 1909/11 . . 798 
 
 GREAT BRITAIN (Pauling & Company), 
 
 UNITED STATES (American Group) & 
 
 CHINA — Preliminary Agreement for Chin- 
 
 chow-Aigun Railway 1909/12 . . 800 
 
 GREAT BRITAIN (Pauling & Company) & 
 
 UNITED STATES (American Gfoup) — 
 
 Agreement in regard to Chinchow-Aigun 
 
 Railway (1909/12) . . 802 
 
 JAPAN & CHINA— Postal Agreement, and Par- 
 cels Post Agreement .•••.•••; (1906/3) . . 598 
 
 JAPAN — Law relating to Adjudication bv Con- 
 sular Officers in Chientao " (1909/10) . . 797 
 
 JAPAN (Okura & Co.) & CHINA— Agreement 
 
 for Penhsihu Coal Mining Company (1909/9) . . 793 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 
 BRITAIN (British & Chinese Corporation, 
 
 and Chinese Central Railways) & UNITED 
 
 STATES (American Group) — Agreement in 
 
 regard to Hukuang Railways (1911/5) . . 886 
 
 FRANCE (Banque de ITndo-Chine) & CHINA 
 
 (Ching-Hsing Kuang Wu Chu) — Mortgage 
 
 Indenture of Ching Hsing Mines (1908/7) . . 729 
 
 JAPAN — Ordinance regulating Opening of Port 
 
 Arthur (1905/18) . . 573
 
 Date 
 July 4, 1910 
 
 August 
 
 August 
 
 1, 1910 
 
 4, 1910 
 
 August 8, 1910 
 
 August 15, 1910 
 
 August 26, 1910 
 
 September 28, 1910 
 
 October 27, 1910 
 
 November 10, 1910 
 
 March 
 April 
 
 24, 1911 
 15, 1911 
 
 May 
 
 8, 1911 
 
 May 
 
 8, 1911 
 
 May 
 
 9, 1911 
 
 May 
 
 9, 1911 
 
 May 
 
 12, 1911 
 
 May 
 
 20, 1911 
 
 TABLE OF CONTENTS 
 
 Specifications of Document Number 
 
 JAPAN & RUSSIA— Convention in regard to 
 
 Manchuria 1910/1 
 
 GREAT BRITAIN (Dunn, Fischer & Company) 
 & CHINA (Bank of Communications) — 
 Agreement for Purchase of Bonds of 7% 
 Peking-Hankow Railway Redemption Loan. 
 (Reference, only) (1908/13) 
 
 BELGIUM (Banque Sino-Belge), FRANCE 
 (Banque de I'Indo-Chine), GERMANY 
 ( Deutsch-Asiatische Bank) , GREAT 
 BRITAIN (Chartered Bank of India, Aus- 
 tralia & China, and Hongkong & Shanghai 
 Banking Corporation), JAPAN (Yokohama 
 Specie Bank), RUSSIA (Russo-Chinese 
 Bank), NETHERLANDS (Netherlands 
 Trading Society), UNITED STATES (In- 
 ternational Banking Corporation) & CHINA 
 — Agreement for Loan to Shanghai Taotai.. 1910/2 
 
 RUSSIA & CHINA— Memorandum of Agree- 
 ment concerning Provisional Sungari River 
 Trade Regulations, Harbin River Customs, 
 etc 1910/3 
 
 JAPAN (Yokohama Specie Bank) & CHINA 
 (Bank of Communications) — Agreement for 
 Purchase of Bonds of 7% Peking-Hankow 
 Railway Redemption Loan. (Summary, only) (1908/13) 
 
 GERMANY & CHINA— Parcels Post Arrange- 
 ment (1906/3) 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Chinese Central Railways) & 
 CHINA — Supplementary Loan Agreement 
 for Tientsin-Pukow Railway 1910/4 
 
 UNITED STATES (American Group) & 
 CHINA — Preliminary Agreement for Cur- 
 rency Reform and Industrial Development 
 Loan (1911/2) 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Chinesische Eisenbahn 
 Gesellschaft), GREAT BRITAIN (British 
 & Chinese Corporation, and Chinese Cen- 
 tral Railways) & UNITED STATES 
 (American Group) — Agreement concerning 
 Loans for Railway Purposes 1910/5 
 
 JAPAN (Yokohama Specie Bank) & CHNA— 
 Agreement for Chinese Government 5% 
 Railwav Loan of 1911 1911/1 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 can Group) & CHINA — Chinese Currency 
 Reform and Industrial Development Loan 
 Agreement 191 1/2 
 
 NETHERLANDS & CHINA— Consular Con- 
 vention relative to Dutch Possessions 1911/3 
 
 GREAT BRITAIN & CHINA— Agreement re- 
 lating to Opium 1911/4 
 
 CHINA — Imperial Edict supplementing Anglo- 
 Chinese Opium Agreement of May 8, 1911.. (1911/4) 
 
 CHINA — Imperial Edict regarding Nationaliza- 
 tion of Trunk Lines of Railway (1911/5) 
 
 JAPAN (Fushun Colliery Company) & CHINA 
 
 — Agreement concerning Fushun Colliery... (1909/9) 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 
 XXIX 
 
 Page 
 803 
 
 755 
 
 805 
 
 807 
 
 757 
 
 602 
 
 814 
 851 
 
 828 
 835 
 
 841 
 856 
 861 
 865 
 895 
 792
 
 XXX 
 
 TABLE OF CONTEXTS 
 
 Date 
 
 June 
 July 
 
 23, 1911 
 13, 1911 
 
 July 24, 1911 
 
 August 14, 1911 
 
 August 14, 1911 
 
 August 30, 1911 
 
 August 31, 1911 
 
 September 2, 1911 
 
 September 21, 1911 
 
 October 30, 1911 
 
 November 2, 1911 
 
 December 16, 1911 
 
 December 20. 1911 
 
 December Zl , 1911 
 
 January 8, 1912 
 
 January 23, 1912 
 
 January 26, 1912 
 
 January 27, 1912 
 
 January 30. 1912 
 March 9, 1912 
 
 Specifications of Document Number Page 
 
 can Group) & CHINA — Final Agreement 
 for Hukuang Railways 1911/5 . . 866 
 
 JAPAN & RUSSIA— Convention for Reciprocal 
 
 Protection of Industrial Property in China.. 1911/6 . . 899 
 
 GREAT BRITAIN & JAPAN— Agreement re- 
 specting the Integrity of China, the General 
 Peace of Eastern Asia and India, and the 
 Territorial Rights and Special interests of 
 the Parties in those Regions 1911/7 . . 900 
 
 GERMANY (Schantung Bergbau Gesellschaft) 
 & CHINA (Shantung Province)— Agree- 
 ment concerning Mining (1900/4) . . 261 
 
 JAPAN & RUSSIA — Supplementary Convention 
 concerning Connections between Japanese 
 and Russian Railways in ^lanchuria (1907/9) . . 646 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 can Group) & CHINA — Agreement for 
 Hupei Provincial Silver Loan of 1911 1911/8 . . 902 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation) & CHINA — Agreement for 
 Kwangtung Provincial Silver Loan of 1911. . 1911/9 . . 906 
 
 FRANCE & GREAT BRITAIN (Syndicat du 
 Yunnan) & CHINA — Exchange of Notes 
 regarding Cancellation of Syndicate's Min- 
 ing Concessions in Yunnan 1911/10 . . 909 
 
 JAPAN & CHINA — Agreement for Extension 
 of Peking-Mukden Railway Line into 
 Mukden (1909/9) . . 795 
 
 FRANCE (Indo-China) & CHINA— Parcels 
 
 Post Arrangement (1906/3) . . 604 
 
 JAPAN (South Manchuria Railway) & CHINA 
 — Arrangement for Conveyance of Chinese 
 Government Stores, etc., over Antung- 
 Mukden Railwav (1905/18). . 574 
 
 JAPAN & CHINA— Convention relating to 
 
 Railwav Connections at Antung 1911/11 . . 914 
 
 MEXICO & CHINA— Convention for Payment 
 of Indemnity for Injuries to Chinese Sub- 
 jects 1911/12 . . 917 
 
 RUSSIA & CHINA— Treaty fixing Russo- 
 Chinese Boundary, between Tarbaga Dagh 
 and Abahaitu, and along Argun River 1911/13 . . 919 
 
 FRANCE & UXITED STATES— Exchange of 
 Notes regarding Reciprocal Protection of 
 Copyrights in China 1911/14 . . 927 
 
 CHINA- Regulations for the 8% Military Loan 1912/1 . . 929 
 
 INTERNATIONAL & CHINA— International 
 
 Opium Convention 1912/2 . . 931 
 
 INTERNATIONAL— Resolutions of Diplomatic 
 Body in regard to Occupation of Peking- 
 Mukden Railway from Peking to Shan- 
 haikwan (1901/3) . . 318 
 
 GREAT BRITAIN (Chinese Engineering & 
 Mining Company) & CHINA (Lanchow 
 Mining Company) — Preliminary Agreement, 
 and Supplementary Agreement, for Forma- 
 tion of Kailan Mining Administration (1912/8) . 965 
 
 INTERNATIONAL & CHINA— Arrangement 
 for Commission of Bankers to receive Cus- 
 toms Revenues 1912/3 . . 946 
 
 FRANCE (Banque de ITndo-Chine). GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking
 
 TABLE OF CONTENTS xxxi 
 
 Date Specifications of Document Number Page 
 
 Corporation), UNITED STATES (Ameri- 
 can Group) & CHINA — Letter of Agree- 
 ment for Advance upon Currency Loan.... (1911/2) . . 852 
 
 March 14, 1912 BELGIUAI (Banque Sino-Belge) & CHINA— 
 
 Agreement for 5% Gold Loan of 1912 1912/4 . . 947 
 
 March 31, 1912 CHINA — Provisional Regulations for ^Maritime 
 Customs at Antung for Through Traffic over 
 Yalu River Bridge 1912/5 . . 950 
 
 April 9, 1912 INTERNATIONAL & CHINA— Huangpu Con- 
 servancy Agreement 1912/6 . . 954 
 
 April 15, 1912 FRANCE (Compagnie Frangaise des Chemins 
 de Fer de I'Indochine et du Yunnan) & 
 CHINA — Convention for Transportation of 
 Postal Parcels 1912/7 . . 958 
 
 June 1, 1912 GREAT BRITAIN (Chinese Engineering & 
 Mining Company) and CHINA (Lanchow 
 Mining Company) — Agreement for Forma- 
 tion of Kailan IMining Administration 1912/8 . . 962 
 
 June 18, 1912 FRANCE (Banque de I'Indo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), JAPAN (Yokohama Specie 
 Bank), RUSSIA (Russo-Asiatic Bank) & 
 UNITED STATES (American Group) — 
 Agreement in regard to Reorganization 
 Loan (1913/5) . . 1024 
 
 July 11, 1912 GERMANY (Deutsch-Asiatische Bank) & 
 CHINA — Letter of Agreement for Advance 
 on Tientsin-Pukow Railway Supplementary 
 Loan (1910/4) . . 824 
 
 July 12, 1912 GREAT BRITAIN (Jackson International Fi- 
 nancial Syndicate) & CHINA — Preliminary 
 Agreement for Loan of ilO,000,000 (1912/9) . . 972 
 
 August 12, 1912 GERMANY (Deutsch-Asiatische Bank) & 
 CHINA — Letter of Agreement for Advance 
 on Tientsin-Pukow Railwav Supplementary 
 Loan : (1910/4) . . 825 
 
 August 28, 1912 GREAT BRITAIN (Chinese Central Railways) 
 & CHINA — Letter of Agreement for Ad- 
 vance on Tientsin-Pukow Railway Supple- 
 mentary Loan (1910/4) . . 826 
 
 August 30, 1912 GREAT BRITAIN (G. Birch Crisp & Com- 
 panv) & CHINA — Agreement for Chinese 
 Government 5% Gold Loan of 1912 1912/9 . . 967 
 
 September 6, 1912 RUSSIA— Note regarding Abolition of 50-verst 
 
 Dutv-free Frontier Zone (1917/10) . . 650 
 
 September 6, 1912 RUSSIA & CHINA— Agreement for Spur of 
 Peking-Mukden Railway into Russian Con- 
 cession in Tientsin 1912/10 . . 973 
 
 September 24, 1912 BELGIUM (Compagnie Generale de Chemins 
 de Fer et de Tramwavs en Chine) & CHINA 
 —Contract for Lung-Tsing-U-Hai Railway 1912/11 . . 976 
 
 November 2, 1912 CHINA — Agreement between Ministry of Com- 
 munications and Szechuan-Hankow Railway 
 Company for taking over of Railway by Gov- 
 ernment (1911/5) . . 896 
 
 November 3, 1912 MONGOLIA & RUSSIA— Agreement regarding 
 Relations, and Protocol concerning Russo- 
 Mongolian Trade 1912/12 . . 992 
 
 December 11, 1912 GREAT BRITAIN (City Safe Deposit & 
 Agency Company) & CHINA — Agreement 
 for Loan upon Bonds of Chinese Govern- 
 ment 7% Peking-Hankow Railway Redemp- 
 tion Loan (1908/13) . . 758 
 
 December 12, 1912 BELGIUM (Societe Generale de Chemins de 
 Fer et de Tramways en Chine) & CHINA — 
 Supplementarv Clause to Lung-Tsing-U-Hai 
 Railway Contract (1912/11) . . 990
 
 XXXI 1 
 
 TABLE OF CONTENTS 
 
 Date 
 December 22,, 1912 
 
 -(?)- 
 
 March 
 March 
 
 April 
 
 April 
 
 1913 
 
 January 11, 1913 
 
 February 12, 1913 
 
 February 20, 1913 
 
 March 3, 1913 
 
 7, 1913 
 7, 1913 
 
 10, 1913 
 
 26, 1913 
 
 May 
 
 25, 
 
 1913 
 
 May 
 
 29, 
 
 1913 
 
 June 
 
 6, 
 
 1913 
 
 June 
 
 14, 
 
 1913 
 
 July 
 
 22, 
 
 1913 
 
 September 12, 1913 
 
 October 5, 1913 
 
 October 9. 1913 
 
 Specifications of Document Number Page 
 
 GREAT BRITAIN (G. Birch Crisp & Company) 
 & CHINA — Agreement for Cancellation of 
 Loan Agreement of August 30th, 1912 (1913/5) . . 1034 
 
 CHINA — Agreement between Ministry of Com- 
 munications and Kiangsu Railway Company 
 for Nationalization of Shanghai-Fengching 
 Railway (1908/3) . . 711 
 
 RUSSIA & SWEDEN— Convention for Recipro- 
 cal Protection of Industrial Property in 
 China 1913/1 . . 997 
 
 GERMANY— Rules of Shantung Railway Com- 
 pany (1900/3) . . 243 
 
 CHINA — Regulations for 6% Domestic Loan of 
 
 First Year of Republic 1913/2 . . 998 
 
 FRANCE (Banque de I'Indo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 can Group) & CHINA — Exchange of Com- 
 munications regarding Hukuang Railways . . (1911/5) . . 888 
 
 CHINA — Detailed Regulations for 6% Domestic 
 
 Loan of First Year of Republic (1913/2) . . 999 
 
 SWEDEN & UNITED STATES— Exchange of 
 Notes regarding Reciprocal Protection of In- 
 dustrial Property in China 1913/3 , . 1002 
 
 AUSTRIA-HUNGARY (Arnhold Karberg & 
 Company) & CHINA — Agreements for Loans 
 of i2,00a000 and of £1,200,000. and Agree- 
 ments for Purchase of Torpedo-Boat De- 
 stroyers. (Summary, only, of Loan Agree- 
 ments) ■ 1913/4 . . 1004 
 
 FRANCE (Banque de ITndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank). GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), JAPAN (Yokohama Specie 
 Bank), RUSSIA (Russo-Asiatic Bank) & 
 CHINA — Chinese Government 5% Reorgani- 
 zation Gold Loan Agreement (with Agree- 
 ment for Advances, and Annexes) 1913/5 . . 1007 
 
 MONGOLIA & RUSSIA— Agreement for Kosh- 
 
 Agatch— Kobdo Telegraph Line 1913/6 . . 1038 
 
 JAPAN & CHINA— Arrangement for Reduction 
 of Duties on Goods transported by Antung- 
 Mukden Railway 1913/7 . . 1039 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA — Letter of Agreement for 
 Advances on Canton-Kowloon Railway (1907/2) . . 626 
 
 GREAT BRITAIN & PORTUGAL— Agreement 
 for Regulation of Opium Monopolies in 
 Hongkong and Macao (1912/2) . . 944 
 
 BELGIUM (Societe Beige de Chemins de Fer 
 en Chine), FRANCE (Societe Franqaise de 
 Construction et d'Exploitation de Chemins de 
 Fer en Chine) & CHINA — Contract for the 
 Tatungfu-Chengtu Railway 1913/8 . . 1042 
 
 FRANCE (Banque de I'lndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank). GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 can Group) & CHINA — Memoranda of 
 Procedure under the Hukuang Loan Agree- 
 ment (1911/5) . . 889 
 
 JAPAN & CHINA— Exchange of Notes regard- 
 ing Construction of certain Railways in Man- 
 churia : 1913/9 . . 1054 
 
 FRANCE (Banque Industrielle de Chine) & 
 CHINA— Contract for 5% Industrial Gold 
 Loan of 1914 1913/10 . • 1055
 
 Date 
 October 14, 1913 
 
 October 27, 1913 
 
 October 30, 1913 
 
 November 5, 1913 
 
 November 14, 1913 
 
 December 2, 1913 
 
 December 5, 1913 
 
 December 18, 1913 
 
 December 20, 1913 
 
 December 22, 1913 
 
 December 30, 1913 
 
 December 31, 1913 
 
 January 8. 1914 
 January21(?), 1914 
 
 January 21, 1914 
 
 January 23, 1914 
 
 January 30, 1914 
 
 February 10, 1914 
 
 February 14, 1914 
 
 February 14, 1914 
 
 TABLE OF CONTENTS xxxiii 
 
 Specifications of Document Number Page 
 
 BELGIUM (Alfred von Hellfeld) & CHINA— 
 Agreement for Loan upon Bonds of 8% 
 Military Loan of January 8th, 1912 (1913/15) . 1093 
 
 FRANCE (Banque de I'lndo-Chine), GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 can Group) and CHINA — Exchange of Let- 
 ters regarding Hunan Railway (1911/5) 893 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration) & CHINA — Letter of Agreement re- 
 garding Shanghai-Nanking Railway Land 
 , Bonds (1903/2) . . 408 
 
 RUSSIA & CHINA — Declaration, and Exchange 
 
 of Notes, in regard to Outer Mongolia 1913/11 1066 
 
 GREAT BRITAIN (Chinese Central Railways) 
 & CHINA — Agreement for Pukow-Sinyang 
 Railway Loan 1913/12 . . 1068 
 
 JAPAN (Government Iron Works, and Yoko- 
 hama Specie Bank) & CHINA (Hanyehping 
 Coal and Iron Factories and Mines Com- 
 pany) — Agreements for Loans, and Annexes 1913/13 . . 1077 
 
 FRANCZE (Banque Industrielle de Chine) & 
 CHINA — Contract Supplementary to the In- 
 dustrial Loan Contract of October 9th, 1913.. (1913/10) 1062 
 
 GREAT BRITAIN (Pauling & Company) & 
 CHINA — Preliminary Agreement for Shasi- 
 ShingA-i Railway (1914/7) . .1146 
 
 RUSSIA & CHINA — Arrangement regarding 
 Junction of Russian and Chinese Telegraphs 
 at Irkechtam 1913/14 . . 1088 
 
 DENAIARK (Great Northern Telegraph Com- 
 pany), GREAT BRITAIN (Eastern Ex- 
 tension, Australasia and China Telegraph 
 Company, Ltd.) & CHINA— Additional Arti- 
 cle to Telegraph Convention of 1896 (1896/3) 67 
 
 BELGIUM (Banque de Reports de Fonds Pub- 
 lics et de Depots) & CHINA — Contract for 
 Purchase of Bonds of 8% Military Loan of 
 January 8th, 1912 1913/15 . . 1089 
 
 GERMANY & CHINA— Exchange of Notes re- 
 garding Extensions of the Shantung Rail- 
 way 1913/16 . . 1094 
 
 CHINA — Mandate regarding Opening of Certain 
 
 Ports 1914/1 . . 1097 
 
 CHINA — National Currency Law, and Regula- 
 tions for Enforcement thereof (1911/2) . 853 
 
 FRANCE (Banque Industrielle de Chine) & 
 
 CHINA— Contract for Ching-Yu Railway . . 1914/2 . . 1099 
 
 FRANCE (Banque de ITndo-Chine). GER- 
 MANY (Deutsch-Asiatische Bank), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), UNITED STATES (Ameri- 
 can Group) & CHINA — Exchange of Letters 
 regarding Redemption of Hunan and Sze- 
 chuan Railways (1911/5) . . 895 
 
 UNITED STATES (American National Red 
 Cross) & CHINA— Huai River Conservancy 
 Agreement (1916/6) . . 1310 
 
 UNITED STATES (Standard Oil Company of 
 New York) & CHINA— Agreement for 
 Prospecting in Chihli and Shensi Provinces. . 1914/3 . , 1109 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA — Shanghai-Fengching Rail- 
 way Mortgage Redemption Agreement (1908/3) . . 713 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA — Agreement for Resumption 
 of Shanghai-Fengching Railway (1908/3) . . 712
 
 XXXIV 
 
 TABLE OF CONTENTS 
 
 Date 
 
 March 2, 1914 
 
 March 9, 1914 
 
 March 31, 1914 
 
 April 
 
 8, 
 
 1914 
 
 May 
 
 20-25, 
 
 1914 
 
 July 
 
 3, 
 
 1914 
 
 July 
 
 9, 
 
 1914 
 
 July 
 
 25, 
 
 1914 
 
 July 
 
 25, 
 
 1914 
 
 August 3, 1914 
 
 August 6, 1914 
 
 August 6, 1914 
 
 August 23, 1914 
 
 September 3, 1914 
 
 September 15, 1914 
 
 September 17, 1914 
 
 September 19, 1914 
 
 September 26, 1914 
 
 September 30, 1914 
 
 September 30, 1914 
 
 November 9, 1914 
 
 November 19, 1914 
 
 December 3, 1914 
 
 December 21, 1914 
 
 December 28, 1914 
 
 Specifications of Document Number Page 
 
 FRANCE (Banque Industrielle de Chine) & 
 CHINA — Annexes 1 and 2 to Industrial Loan 
 Contract of October 9th, 1913 (1913/10) . . 1064 
 
 UNITED STATES (Bethlehem Steel Company) 
 & CHINA — Apocryphal Contract for Naval 
 Dockyard and Fortifications at Mamoi (1915/8) . . 1236 
 
 GREAT BRITAIN (British & Chinese Corpora- 
 tion) & CHINA — Agreement for Nanking- 
 Hunan Railway 1914/4 . . 1113 
 
 FRANCE & CHINA — ^Convention for Extension 
 
 of French Concession at Shanghai 1914/5 . . 1123 
 
 FRANCE, GERMANY, GREAT BRITAIN, 
 UNITED STATES & CHINA— Hankow 
 Conference Resolutions concerning Materials 
 and Equipment for Hukuang Railways (1911/5) . . 897 
 
 GREAT BRITAIN & TIBET— Agreement in re- 
 gard to Tibet (Summary, only) (1906/2) . . 581 
 
 INTERNATIONAL & CHINA— Agreement, and 
 Regulations, for the Liao River Conservancy 
 Board 1914/6 . . 1125 
 
 GREAT BRITAIN (Pauling & Company) & 
 CHINA — Final Agreement for Shasi-Shingyi 
 Railway 1914/7 . . 1130 
 
 GREAT BRITAIN (Pauling & Company) & 
 CHINA — Supplementary Agreement cancel- 
 ling Preliminary Agreement of December 
 18, 1913, for Shasi-Shingyi Railway (1914/7) . . 1148 
 
 CHINA — Regulations for Third Year Domestic 
 
 Loan 1914/8 . . 1150 
 
 CHINA— Regulations for Bureau of Public 
 
 Loans (1914/8) . . 1152 
 
 CHINA — Mandate proclaiming Neutrality in the 
 
 European War (1917/7) . . 1365 
 
 JAPAN— Rescript making Declaration of War 
 
 against Germany 1914/9 . . 1153 
 
 CHINA — Circular Note designating Area of 
 
 QuaHfied Neutrality in Shantung (1917/7) . . 1367 
 
 UNITED STATES & CHINA— Treaty for Ad- 
 vancement of Peace 1914/10 . . 1169 
 
 GREAT BRITAIN (Samuel & Company) & 
 CHINA — Agreement for Hankow Improve- 
 ment Loan 1914/11 . . 1172 
 
 GREAT BRITAIN (British & Chinese Corpo- 
 ration) & CHINA — Agreement for Resump- 
 tion of Chekiang Section of Shanghai-Hang- 
 chow-Ningpo Railway (1908/3) . . 715 
 
 FRANCE & CHINA— Note of Minister for For- 
 eign Affairs regarding Preference to French 
 Nationals in Railway and Mining Enter- 
 prises in Kwangsi Province (1895/5) . . 34 
 
 MONGOLIA & RUSSIA— Agreement concern- 
 ing Railways in Mongolia 1914/12 . 1178 
 
 MONGOLIA & RUSSIA— Agreement for 
 
 Monda-Uliassutai Telegraph Concession .... 1914/13 . . 1179 
 
 GREAT BRITAIN (Pekin Syndicate) & 
 CHINA (Honan Province, and Chung Yuan 
 Companv) — Agreement regarding Coal Min- 
 ing in Honan Province (1915/6) . . 1210 
 
 JAPAN (Military Administration of Kiaochow) 
 
 —Regulations of Militarv Administration ... (1914/9) . . 1159 
 
 GREAT BRITAIN & RUSSIA— Agreement re- 
 garding Municipal Administration and Taxa- 
 tion in Zone of Chinese Eastern Railway ... 1914/14 . 1181 
 
 CHINA— Regulations for Increase of Amount of 
 
 Third-Year Domestic Loan (1914/8) . . 1152 
 
 JAPAN (Military Administration of Kiaochow) 
 — Provisional Customs Regulations for 
 Tsingtao (1915/12) . . 1247
 
 Date 
 January 26, 1915 
 
 January 26, 1915 
 
 February 9, 1915 
 
 February 18, 1915 
 March 4, 1915 
 
 April 
 
 May 
 
 May 
 
 13, 1915 
 
 1, 1915 
 
 7, 1915 
 
 May 
 
 13, 
 
 1915 
 
 May 
 
 25, 
 
 1915 
 
 May 
 
 25, 
 
 1915 
 
 May 
 
 25, 
 
 1915 
 
 May 
 
 25, 
 
 1915 
 
 June 
 
 1, 
 
 1915 
 
 June 
 
 7, 
 
 1915 
 
 June 
 
 12, 
 
 1915 
 
 July 
 
 27, 
 
 1915 
 
 August 
 
 6, 
 
 1915 
 
 October 
 
 19, 
 
 1915 
 
 October 27, 1915 
 
 November 6, 1915 
 
 December 21, 1915 
 
 January 5, 1916 
 
 January 24, 1916 
 
 February 8, 1916 
 
 March 
 
 10, 1916 
 
 TABLE OF CONTENTS xxxv 
 
 Specifications of Document Number Page 
 JAPAN (Military Administration of Kiaochow) 
 — Military Notification regarding Lease of 
 Private Property in Zone of Alilitary Ad- 
 ministration (1914/9) . . 1159 
 
 JAPAN (Military Administration of Kiaochow) 
 — ^Regulations for Lease of Land in Japanese 
 
 Temporary Settlement in Tsingtao (1914/9) . . 1160 
 
 CHINA — Regulations of Fourth Year Domestic 
 
 Loan 1915/1 . . 1187 
 
 CHILE & CHINA— Treaty of Amity 1915/2 . . 1190 
 
 RUSSIA & CHINA — Agreement concerning In- 
 terpretation of Dutv-Free List in St. Peters- 
 burg Treaty of 1881 1915/3 . .1191 
 
 FRANCE (Indo-China) & CHINA— Arrange- 
 ment for Maintenance of Order on Sino- 
 Annamite Frontier (v^rith accompanying Ex- 
 change of JNotes) 1915/4 . . 1196 
 
 GREAT BRITAIN (Opium Merchants' Combines 
 of Shanghai and Hongkong) & CHINA — 
 Agreement relating to Suppression of Illicit 
 Sales of Native Opium in Kiangsu, Kiangsi 
 and Kwangtung Provinces 1915/5 . , 1200 
 
 GREAT BRITAIN (Pekin Syndicate) & CHINA 
 (Honan Province, and Chung Yuan Com- 
 pany) — Final Agreement, and Regulations, in 
 regard to Coal Mining in Honan Province.. 1915/6 . . 1203 
 
 CHINA — Mandate concerning Non-Alienation of 
 
 Coasts of China 1915/7 . . 1215 
 
 JAPAN & CHINA— Treaty, and Exchanges of 
 
 Notes, respecting the Province of Shantung. . 1915/8 . . 1216 
 
 JAPAN AND CHINA— Treaty, and Exchanges 
 of Notes, respecting South Manchuria and 
 Eastern Inner Mongolia 1915/8 . . 1220 
 
 JAPAN & CHINA— Exchange of Notes respect- 
 ing Hanvehping Matter 1915/8 . . 1229 
 
 JAPAN & CHINA— Exchange of Notes respect- 
 ing Fukien Question 1915/8 . . 1230 
 
 NETHERLANDS & CHINA— Treaty providing 
 
 for Obligatory Arbitration 1915/9 . . 1237 
 
 RUSSIA, MONGOLIA & CHINA— Tripartite 
 
 Agreement regarding Outer Mongolia 1915/10 . . 1239 
 
 RUSSIA & CHINA— Protocol of Delimitation 
 
 along River Horgos 1915/11 . . 1245 
 
 RUSSIA & CHINA— Regulations for Refund of 
 
 Duties under Agreement of March 4th, 1915.. (1915/3) . . 1195 
 
 JAPAN & CHINA— Agreement for Reopening 
 
 of Maritime Customs Office at Tsingtao... \ 1915/12 . . 1246 
 
 INTERNATIONAL & CHINA— Supplementary 
 Article to Huangpu Conservancy Agreement 
 of April 9th, 1912 (1912/6)' . . 956 
 
 CHINA — 'Rescript regarding Opening of Cus- 
 toms House at Lungkow (1914/1) . . 1098 
 
 RUSSIA & CHINA — Arrangement concerning 
 
 Situation of Houlounbouir (Hailar) 1915/13 . . 1247 
 
 JAPAN (Yokohama Specie Bank) & CHINA— 
 Agreement for Ssupingkai-Chengchiatun Rail- 
 way 1915/14 . . 1249 
 
 INTERNATIONAL & CHINA— Additional 
 (10th) Article of Arms Regulations of May 
 30th, 1908 (1908/10) . . 740 
 
 RUSSIA, MONGOLIA & CHINA— Tripartite 
 Agreement concerning Outer Mongolian Tele- 
 graph Line ' 1916/1 . . 1259 
 
 GREAT BRITAIN (Samuel & Company) & 
 CHINA — Agreement for Extension of Op- 
 tion under Hankow Improvement Loan 
 Agreement. (Note, onlv) (1914/11). . 1177 
 
 CHINA — Regulations for Fifth Year Domestic 
 
 Loan 1916/2 . . 1266
 
 XXXVl 
 
 TABLE OF CONTENTS 
 
 Date 
 
 March 27, 1916 
 
 April 7, 1916 
 
 April 19, 1916 
 
 May 
 
 May 
 
 May 
 
 13, 1916 
 
 17, 1916 
 
 19. 1916 
 
 May 21, 1916 
 
 June 9, 1916 
 
 June 
 
 July 
 
 July 
 July 
 
 August 
 
 9, 1916 
 
 3, 1916 
 
 3, 1916 
 11, 1916 
 
 1, 1916 
 
 August 9, 1916 
 
 September 29, 1916 
 
 October 16, 1916 
 
 November 16, 1916 
 
 January 20, 1917 
 
 January 22, 1917 
 
 January 28, 1917 
 
 Specifications of Document Number Page 
 
 RUSSIA (Russo-Asiatic Bank) & CHINA— 
 
 Agreement for Pin-Hei Railway 1916/3 . . 1267 
 
 UNITED STATES (Lee, Higginson & Com- 
 pany) & CHINA— Agreement for a Loan . . . 1916/4 . . 1279 
 
 UNITED STATES (American International 
 Corporation) & CHINA — Agreement for 
 South Grand Canal of Shantung Province 
 7% Improvement Gold Loan 1916/5 . . 1287 
 
 UNITED STATES (American International 
 Corporation) & CHINA — Agreement for 
 Huai River Conservancy Grand Canal Im- 
 provement 7% Gold Loan of 1916 1916/6 . . 1304 
 
 UNITED STATES (Siems & Carey) & CHINA 
 — Agreement, with Supplement and Sup- 
 plementary Agreement, for Railway Con- 
 struction 1916/7 . . 1313 
 
 UNITED STATES & CHINA— Exchange of 
 Notes extending Time for Appointment of 
 Commission under Treaty of September 15th, 
 1914 (1914/10) . . 1171 
 
 RUSSIA & CHINA— Agreement for Suppression 
 of Liquor Traffic in certain Districts of Man- 
 churia 1916/8 . . 1324 
 
 JAPAN (Bank of Chosen) & CHINA (Feng- 
 tien Province) — Agreement for Loan of Yen 
 1,000,000 for Adjustment of Reserves of 
 Chinese Banks in Mukden (1918/5) . . 1418 
 
 JAPAN (Bank of Chosen) & CHINA (Feng- 
 tien Province) — Agreement for Loan of Yen 
 2,000,000 for Redemption of Note Issues of 
 Chinese Banks in Mukden (Reference, only). (1918/5) . . 1418 
 
 JAPAN & RUSSIA— Convention in regard to 
 
 Cooperation in the Far East 1916/9 . . 1327 
 
 JAPAN & RUSSIA— Alleged Secret Treaty .... (1916/9) . . 1328 
 
 UNITED STATES & CHINA— Parcels Post 
 
 Convention 1916/10 . . 1329 
 
 JAPAN (Bank of Chosen) & CHINA (Feng- 
 tien Province) — Agreement for Loan of Yen 
 2,000,000 for Readjustment of Reserves of 
 Chinese Banks in Mukden (1918/5) . . 1419 
 
 UNITED STATES (International Banking Cor- 
 poration) & CHINA — Agreement for Financ- 
 ing Purchases of Silver Bullion 1916/11 . . 1333 
 
 UNITED STATES (Siems & Carey) & CHINA 
 — Supplementary Agreement amending Rail- 
 way Agreement of May 17th. 1916 (1916/7) . . 1321 
 
 JAPAN (Okura & Company) & CHINA (Feng- 
 tien Province) — Contract for a Loan of Yen 
 1,500,000 1916/12 . . 1335 
 
 UNITED STATES (Continental & Commercial 
 Trust & Savings Bank) & CHINA— Agree- 
 ment for Loan of U. S. Gold $5,000.000.... 1916/13 . . 1337 
 
 JAPAN (Industrial Development Bank. Bank 
 of Taiwan, and Bank of Chosen) & CHINA 
 (Bank of Communications) — Agreement for 
 Loan of Yen 5,000.000 1917/1 . . 1345 
 
 JAPAN & CHINA— Exchanges of Notes re- 
 garding Settlement of Chengchiatun Affair, 
 Employment of Japanese Military Advisers 
 and Instructors, Establishment of Japanese 
 Police Stations in South Manchuria and 
 Eastern Inner Mongolia, and Withdrawal of 
 Japanese Troops from between Ssupingkai 
 and Chengchiatun 1917/2 . . 1347 
 
 GREAT BRITAIN (Shanghai Opium Combine) 
 & CHINA — Agreement for Purchase of 
 Stock of Indian Opium remaining in Hands 
 of Combine ^ 1917/3 . . 1352
 
 Date 
 February 5, 1917 
 
 February 20, 1917 
 
 February 21, 1917 
 
 February 24, 1917 
 
 March 1, 1917 
 
 March 14, 1917 
 
 March 26, 1917 
 
 March 28, 1917 
 
 March 
 April 
 
 May 
 
 July 
 
 July 
 
 28, 1917 
 2, 1917 
 
 14, 1917 
 
 May 24, 1917 
 
 June 30, 1917 
 
 16, 1917 
 
 31, 1917 
 
 July 
 
 31, 
 
 1917 
 
 July 
 
 31, 
 
 1917 
 
 July 
 
 31, 
 
 1917 
 
 August 
 
 7, 
 
 1917 
 
 August 
 
 14, 
 
 1917 
 
 August 
 
 14, 
 
 1917 
 
 August 
 
 14, 
 
 1917 
 
 TABLE OF CONTENTS 
 
 Specifications of Document Number 
 
 UNITED STATES (Standard Oil Company of 
 New York) & CHINA— Agreement settling 
 Accounts under Prospecting Agreement of 
 1914 (1914/3) 
 
 JAPAN & RUSSIA— Understanding in regard to 
 ultimate Disposal of German Rights in 
 Shantung, etc. (Reference, only) (1914/9) 
 
 GREAT BRITAIN & JAPAN— Exchange of 
 Notes regarding ultimate Disposal of German 
 Rights in Shantung, etc. (Reference, only) . . (1914/9) 
 
 JAPAN & CHINA — Regulations concerning 
 Transportation of Salt by South Manchuria 
 Railway Company 1917/4 
 
 FRANCE & JAPAN— Understanding in regard 
 to ultimate Disposal of German Rights in 
 Shantung, etc (1914/9) 
 
 CHINA — Mandate and Proclamation severing 
 
 Relations with Germany (1917/7) 
 
 JAPAN & CHINA— Agreement for Provisional 
 Procedure in Postal and Telegraphic Opera- 
 tions in Kiaochow and along Shantung Rail- 
 way 1917/5 
 
 ITALY & JAPAN— Understanding in regard to 
 ultimate Disposal of German Rights in 
 Shantung, etc. (Reference, only) (1914/9) 
 
 CHINA — Rules of Procedure governing As- 
 sumption of Control of German Concessions (1917/7) 
 
 JAPAN (Bank of Taiwan) & CHINA (Kwang- 
 tung Province) — Agreement for Loan to Can- 
 ton Cement Works 1917/6 
 
 UNITED STATES (Continental & Commercial 
 Trust & Savings Bank) & CHINA— Sup- 
 plementary Agreement regarding Securities 
 under Loan Agreement of November 16th, 
 1916 (1916/13) 
 
 JAPAN (Military Administration of Kiaochow) 
 — Regulations relative to Prohibiting Enemy 
 Trade (1914/9) 
 
 UNITED STATES (Siems & Carey) & CHINA 
 — Arrangement for Advance under Railway 
 Contract of May 17, 1916, and Supplementary 
 Agreement of September 29th, 1916. (Refer- 
 ence, only) (1916/7) 
 
 JAPAN (Japanese Chamber of Commerce, Muk- 
 den) & CHINA (Chinese Chamber of Com- 
 merce, IMukden) — Agreement regarding Re- 
 demption of Chinese Small-Coin Banknotes . (1918/5) 
 
 JAPAN — ^Imperial Ordinance regarding Organi- 
 zation of South Manchuria Railway Com- 
 pany (1905/18) 
 
 JAPAN — Imperial Ordinance regarding Organi- 
 zation of Kwantung Government General ... (1905/18) 
 
 JAPAN — Imperial Ordinance regarding Organi- 
 zation of Foreign Office (1905/18) 
 
 JAPAN — Imperial Ordinance regarding Ap- 
 pointment of Consular Officers in Man- 
 churia (1905/18) 
 
 RUSSIA & OTHER POWERS— Agreement re- 
 garding Passport Control in Chinese Eastern 
 Railway Zone during the War (1896/5) 
 
 CHINA — Presidential Mandate and Proclamation 
 declaring War against Germany and Austria- 
 Hungary 1917/7 
 
 CHINA — Regulations for Treatment of Enemy 
 
 Subjects (1917/7) 
 
 CHINA — Provisional Regulations governing 
 Trial of Civil and Criminal Cases of Enemy 
 Subjects (1917/7) 
 
 XXXVll 
 
 Page 
 
 1111 
 
 1169 
 
 1167 
 
 1358 
 
 1169 
 1369 
 
 1359 
 
 1169 
 1370 
 
 1360 
 
 1343 
 1161 
 
 1323 
 
 1420 
 
 563 
 569 
 569 
 
 569 
 
 90 
 
 1361 
 1371 
 
 1372
 
 XXXVlll 
 
 TABLE OF CONTEXTS 
 
 Date 
 August 14, 1917 
 
 August 17, 1917 
 
 August 28, 1917 
 
 September 8, 1917 
 
 September 28, 1917 
 
 October 1, 1917 
 
 October 1, 1917 
 
 October 1, 1917 
 
 October 1, 1917 
 
 October 1, 1917 
 
 October 12, 1917 
 
 October 24, 1917 
 
 October 26, 1917 
 
 October 30, 1917 
 
 November 2, 1917 
 
 November 20, 1917 
 
 November 22, 1917 
 
 January 6, 1918 
 
 January 14, 1918 
 
 Specifications of Document Number Page 
 
 CHINA — Regulations for Bureaux of Municipal 
 Administration of German Concessions in 
 Tientsin and Hankow and Austrian Con- 
 cession in Tientsin (1917/7) . . 1372 
 
 CHINA— Rules and Regulations governing Dis- 
 position of Enemy Subjects; and Matters to 
 be attended to when granting Permission to 
 Enemy Subjects to carry on Business in Pur- 
 suance thereof (1917/7) . . 1374 
 
 JAPAN (Yokohama Specie Bank) & CHINA— 
 Agreement for Advance of Yen 10,000,000 
 upon proposed Supplementary Reorganiza- 
 tion Loan 1917/8 . . 1382 
 
 BELGIUM, FRANCE, GREAT BRITAIN, 
 ITALY, JAPAN, PORTUGAL & RUSSIA 
 — Collective Note regarding Advantages to 
 be accorded to China (1917/7) . . 1375 
 
 JAPAN (Industrial Development Bank, Bank of 
 Taiwan, and Bank of Chosen) & CHINA 
 (Bank of Communications) — Agreement for 
 Supplementary Loan of Yen 20,000,000 1917/9 . . 1387 
 
 JAPAN — Imperial Ordinance establishing Regu- 
 lations for Division of Civil Administration 
 in Tsingtao Garrison (1904/9) . . 1162 
 
 JAPAN (Tsingtao Garrison) — Alilitary Notifica- 
 tion prescribing Names, Localities and Dis- 
 tricts under Civil Administration of Tsingtao 
 Garrison (1914/9) . . 1163 
 
 JAPAN (Tsingtao Garrison)— Military Ordi- 
 nance establishing Regulations for Appor- 
 tionment of Duties in Department of Civil 
 Administration of Tsingtao Army Head- 
 quarters (1914/9) . . 1164 
 
 JAPAN ("Tsingtao Garrison)— Military Ordi- 
 nance establishing Regulations for Appor- 
 tionment of Business in Local Civil Ad- 
 ministration Offices (1914/9) . . 1166 
 
 CHINA— Regulations for Fourth Short-term 
 
 Loan of Peking-Suiyuan Railway 1917/10 . . 1389 
 
 JAPAN (South Manchuria Railway Company) & 
 CHINA — Agreement for Kirin-Changchun 
 Railway Loan 1917/11 . . 1390 
 
 UNITED STATES & CHINA— Protocol re- 
 garding Procedure in American Cases against 
 Chinese Defendants in Tientsin Consular 
 District (1903/5) . . 450 
 
 GREAT BRITAIN & CHINA— Agreement for 
 Chartering of Interned Enemy Vessels for 
 Service of Allies (1917/7) . . 1375 
 
 CHINA — Presidential Mandates promulgating 
 Prize Court Rules and Regulations govern- 
 ing Captures at Sea (Reference, only) (1917/7) . . 1377 
 
 JAPAN &' UNITED STATES— Agreement re- 
 garding ^lutual Interests relating to China . . 1917/12 . . 1394 
 
 UNITED STATES (American International 
 Corporation) & CHINA— Agreement for 
 Chinese Government Grand Canal Improve- 
 ment 7 per cent Gold Loan (1916/5) . . 1297 
 
 JAPAN (Industrial Bank of Japan, Smo-Japa- 
 ncse Industrial Development Co., etc.) & 
 CHINA— .Agreement for Loan for Flood 
 Relief in Chihli 1917/13 . . 1397 
 
 JAPAN (Yokohama Specie Bank) & CHINA— 
 Agreement for Second Advance upon pro- 
 posed Reorganization Loan 1918/1 . . 1400 
 
 JAPAN (Tsingtao Garrison)— Military Ordi- 
 nance announcing Regulations for Control of 
 Foreigners (1914/9) . .1166
 
 Date 
 January 18, 1918 
 
 January 29, 1918 
 
 January (?), 1918 
 
 February 21, 1918 
 
 March 20, 1918 
 
 March 25, 1918 
 
 April 22, 1918 
 
 April 
 
 April 
 
 June 
 
 27, 1918 
 
 30, 1918 
 
 May 
 
 16, 1918 
 
 I\Iay 
 
 17, 1918 
 
 May 
 
 19, 1918 
 
 11, 1918 
 
 June 
 
 13, 
 
 1918 
 
 June 
 
 18, 
 
 1918 
 
 July 
 
 1, 
 
 1918 
 
 July 
 
 19, 
 
 1918 
 
 July 31, 1918 
 
 August 2, 1918 
 
 August 10, 1918 
 
 August 27, 1918 
 
 TABLE OF CONTENTS xxxix 
 
 Specifications of Document Number Page 
 
 FRANCE (Banque de I'Indo-Chine), GREAT 
 BRITAIN (Hongkong & Shanghai Banking 
 Corporation), JAPAN (Yokohama Specie 
 Bank), RUSSIA (Russo-Asiatic Bank) & 
 CHINA — Agreement for Loan for Plague 
 Prevention 1918/2 . . 1405 
 
 JAPAN & CHINA— Exchange of Notes regard- 
 ing Exemption of Chinese Citizens from 
 Japanese Passport Requirements 1918/3 . . 1406 
 
 JAPAN (Taihei Kumiai) & CHINA— Agree- 
 ment for Supply of Arms (1918/4) 1415 
 
 JAPAN (Mitsui Bussan Kaisha) & CHINA— 
 Contract for Loan for Establishment of 
 Wireless Telegraph Stations App. F. . . 1519 
 
 JAPAN (Kwantung Government General) — 
 
 Regulations controlling Foreigners (1905/18) . . 572 
 
 JAPAN & CHINA— Exchanges of Notes in re- 
 gard to Military Cooperation 1918/4 . . 1407 
 
 JAPAN (Bank of Chosen) & CHINA (Feng- 
 tien Provincial Government) — Agreement fo- 
 Loan for Readjustment of Reserves of 
 Provincial Government Bank 1918/5 . . 1416 
 
 CHINA — Regnlations governing Issue of Short- 
 Term Loan Bonds ; and Regulations gov- 
 erning 6 per cent Internal Loan of 7th Year 
 of Republic 1918/6 . . 1421 
 
 JAPAN — (Exchange Bank of China, in associa- 
 tion with Industrial Bank of Japan, Bank 
 of Chosen, and Bank of Taiwan) & CHINA 
 — Agreement for Loan for Improvement of 
 Telegraphs 1918/7 . . 1424 
 
 JAPAN & CHINA— Agreement regarding Co- 
 operation of Japanese and Chinese Armies.. (1918/4) . . 1411 
 
 CHINA — Enemy Trading Act, and Regulations 
 
 for Enforcement thereof (1917/7) . . 1379 
 
 JAPAN & CHINA— Agreement regarding Co- 
 operation of Japanese and Chinese Navies, 
 and Explanatory Notes (1918/4) 1412 
 
 GREAT BRITAIN (Shanghai Opium Combine) 
 & CHINA — Agreement supplementary to 
 that of January 28th, 1917, for Purchase 
 of Opium Stocks (1917/3) . . 1355 
 
 SWITZERLAND & CHINA— Treaty of Amity 
 
 (with attached Declaration) 1918/8 . 1429 
 
 JAPAN (Industrial Bank of Japan, Bank of 
 Chosen, and Bank of Taiwan) & CHINA — 
 Preliminary Agreement for Kirin-Hueining 
 Railway Loan 1918/9 1430 
 
 CHINA— Regulations for Fifth Short-Term 
 
 Loan of Peking-Suiyuan Railway 1918/10 1433 
 
 JAPAN (Yokohama Specie Bank) & CHINA— 
 Agreement for Renewal of Chinese Govern- 
 ment Treasury Bills securing First Advance 
 upon proposed Supplementary Reorganiza- 
 
 X . J'°" ^°^" (1917/8) . . 1385 
 
 JAPAN (Taihei Kumiai) & CHINA— Agreement 
 
 for Purchase of Arms (1918/4) . . 1414 
 
 JAPAN (Exchange Bank of China, in associa- 
 tion with Industrial Bank of Japan, Bank of 
 Chosen and Bank of Taiwan) & CHINA— 
 Agreement for Loan for Gold Alining and 
 Forestry in Heilung-kiang and Kirin 1918/11 . . 1434 
 
 CHINA — Regulations governing Issue of Gold 
 Currency Notes, and Rules governing Or- 
 ganization of Currency Bureau (1911/2) . . 854 
 
 GREAT BRITAIN (Marconi's Wireless Tele- 
 graph Company) & CHINA — Agreement for 
 Loan in connection with Purchase of Wire- 
 less Telephone Equipment 1918/12 . . 1440
 
 xl 
 
 TABLE OF CONTENTS 
 
 Date 
 September 6, 1918 
 
 September 24, 1918 
 
 September 24, 1918 
 
 September 24, 1918 
 
 September 28, 1918 
 
 September 28, 1918 
 
 September 28, 1918 
 
 October 9, 1918 
 
 Dec. 3 & 4, 1918 
 
 December 19, 1918 
 
 January 9, 1919 
 
 January 26, 1919 
 
 February 5, 1919 
 
 March 1, 1919 
 
 April 12, 1919 
 
 May 24, 1919 
 
 June 
 
 28, 1919 
 
 September 10, 1919 
 
 Specifications of Document Number Page 
 
 JAPAN & CHINA— Supplement to Military 
 
 Agreement of May 16, 1918 (1918/4) . . 1413 
 
 JAPAN & CHINA— Exchange of Notes embody- 
 ing Arrangement concerning Questions in 
 
 Shantung 1918/13 . . 1445 
 
 JAPAN & CHINA— Exchange of Notes regard- 
 ing Four Railways in Manchuria and Mon- 
 golia (1918/15). . 1450 
 
 JAPAN & CHINA— Exchange of Notes regard- 
 ing Extensions of Shantung Railway (1918/16) . . 1452 
 
 JAPAN (Bank of Chosen, Industrial Bank of 
 Japan and Bank of Taiwan) & CHINA — 
 Contract for Loan for Purposes of War Par- 
 ticipation 1918/14 . . 1446 
 
 JAPAN (Industrial Bank of Japan, Bank of 
 Taiwan and Bank of Chosen) & CHINA— 
 Preliminary Agreement for Loan for Rail- 
 ways in Manchuria and Mongolia 1918/15 . . 1448 
 
 JAPAN (Industrial Bank of Japan, Bank of 
 Chosen and Bank of Taiwan) & CHINA-- 
 Preliminary Agreement for Loan for Tsi- 
 nanfu-Shuntefu and Kaomi-Hsuchow Ex- 
 tensions of Shantung Railway 1918/16 . . 1450 
 
 GREAT BRITAIN (Marconi's Wireless Tele- 
 graph Company) & CHINA — Agreement for 
 Establishment of Wireless Telegraph Com- 
 munications between Kashgar and Sianfu... 1918/17 . . 1452 
 CHINA — Presidential Mandates concerning 
 
 Burning of Opium Stocks (1917/3) . . 1357 
 
 INTERNATIONAL & CHINA— Revised Im- 
 port Tariff and Rules 1918/18 . . 1456 
 
 FRANCE, GREAT BRITAIN, ITALY, JAPAN, 
 RUSSIA, UNITED STATES & CHINA— 
 Agreement regarding Inter-Allied Supervi- 
 sion of Siberian Railway System (1896/5) . . 82 
 
 CHINA — Regulations for Office for Repatriation 
 of Enemy Subjects, Administration of 
 
 Enemy Property, etc. (Reference, only) (1917/7) . . 1377 
 
 JAPAN & CHINA— Supplement to Military 
 
 Agreemeiit of May 16, 1918 (1918/4) . . 1414 
 
 JAPAN & CHINA— Supplement to Naval Agree- 
 ment of May 19, 1918 (1918/4) . . 1414 
 
 JAPAN — Ordinance regarding Organization of 
 
 Government of Kwantung (1905/18) . , 569 
 
 GREAT BRITAIN (Marconi's Wireless Tele- 
 graph Company) & CHINA— Agreement for 
 Chinese National Wireless Telegraph Com- 
 pany (1918/12) . . 1442 
 
 BELGIUM. BOLIVIA, BRAZIL, CUBA, 
 CZECHO - SLOVAKIA, ECUADOR, 
 
 FRANCE, GERMANY, GREAT BRITAIN, 
 GREECE, GUATEMALA, HAITI, HED- 
 JAZ, HONDURAS, ITALY, JAPAN, LI- 
 BERIA, NICARAGUA. PANAMA, PERU, 
 POLAND, PORTUGAL, ROUMANIA, 
 SERB-CROAT-SLOVENE STATE, SIAM, 
 UNITED STATES & URUGUAY— Treaty 
 of Peace between Allied and Associated 
 
 Powers and Germany (Extracts, only) 1919/1 . . 1485 
 
 AUSTRIA, BELGIUM, BOLIVIA, BRAZIL, 
 CUBA, CZECHO-SLOVAKIA, ECUADOR, 
 FRANCE. GREAT BRITAIN, GREECE, 
 GUATEMALA, HAITI, HEDJAZ, HON- 
 DURAS. ITALY. JAPAN, LIBERIA, 
 NICARAGUA. PANAMA, PERU. PO- 
 LAND, PORTUGAL, ROUMANIA, SERB- 
 CROAT-SLOVENE STATE, SIAM, 
 UNITED STATES, URUGUAY & CHINA
 
 Date 
 
 September 15, 1919 
 
 TABLE OF CONTENTS xli 
 
 Specifications of Document Number Page 
 — Treaty of Peace between Allied and Asso- 
 ciated Powers and Austria (Reference, only) (1919/1) . . 1485 
 CHINA — Presidential Mandate declaring at an 
 
 End the State of War with Germany (1917/7) . . 1381 
 
 APPENDICES. 
 
 List of Treaty Ports and Ports Voluntarily Opened to Trade App. 
 
 Regulations governing Organization of Chinese Government Railways, 
 
 and of Peking-Mukden Railway Administration App. 
 
 Tables of Cost of Operation (for 1915) of Various Lines of Chinese 
 
 Government Railways, and Average Costs per Mile App. 
 
 Act establishing the United States Court for China App. 
 
 Chinese Government Regulations concerning Mining of Iron, Novem- 
 ber 25, 1915, and February 12, 1918 App. 
 
 Mitsui Bussan Kaisha Contract for Wireless Telegraph Loan, February 
 21, 1918 App. 
 
 Protocols regarding Duration of Treaty of 1874 with Peru, and 
 Chinese Immigration into Peru, August, 1909 App. 
 
 Page 
 1507 
 
 1509 
 
 1513 
 1516 
 
 1518 
 
 1519 
 
 1523 
 
 Indexes 
 
 1527
 
 LIST OF MAPS AND PLAN . 
 
 Map of China, showing Railways Frontispiece, Vol. I 
 
 Map of the Railways of North China " "II 
 
 Map of Eastern Shantung, showing Kiaochow and Weihaiwei Leased 
 
 Territories . _ Opposite page 114 
 
 Map of Liaotung Peninsula, showing Kwantung Leased Territory . " " 119 
 
 Map of Kuangchouwan and Leichow Peninsula " " 128 
 
 Map of Hongkong Extension " " 130 
 
 Plan of Boundaries of Legation Quarter at Peking , " " 298
 
 LIST OF ABBREVIATIONS. 
 
 Am. Int. Law Journal The American Journal of International Law, published 
 
 quarterly for the American Society of International 
 Law. 
 
 B. and F. State Papers British and Foreign State Papers. 
 
 Bulletin of Laws Bulletin of Laws and Ordinances of the (Russian) 
 
 Government {Sobranie Ucakonenii i Rasporiajcnii 
 Pravifelstva). 
 
 Charignon Lcs chemins de fer chinois, par A. J. H. Charignon 
 
 (Pekin, 1914). 
 
 China, No. — (year) British Parliamentary Papers on China, of number 
 
 and year indicated. 
 
 Chung Htia Fa Kuci Ta Ch'uan Compilation of the Lazvs of China, together with a 
 
 Collection of the Treaties with Foreign Countries 
 (Shanghai, 1913). This compilation is not official. 
 
 Collins Mineral Enterprise in China, by William F. Collins 
 
 (London, Heinemann, 1918). 
 
 Customs Treaties, Conventions, etc., between China and Foreign 
 
 States, published by order of the Inspector General 
 of Customs (second edition, Shanghai, 1917). 
 
 Doc. Dipt., Chine French Foreign Office Yellow Books on China. 
 
 F. E. Review The Far Eastern Review, published monthly at 
 
 Shanghai. 
 
 For. Rel Foreign Relations of the United States, published an- 
 nually under the authority of the Secretary of State. 
 
 Izviestia Review of the C Russian) Ministry for Foreign Affairs 
 
 (Icviestia Ministerstva Inostrannuikh Did), bi- 
 monthly publication of the Russian Foreign Office. 
 
 Hertslet Hertslct's China Treaties: Treaties, etc., between Great 
 
 Britain and China, and between China and Foreign 
 Powers, etc. (3rd edition, London, 1908). 
 
 Hsuan Tung Tiao Yueh Treaties, Conventions, etc., between China and Foreign 
 
 States: Hsuan Tung Period, edited by C. P. Hu 
 (Peking, 1913). 
 
 Kent Railway Enterprise in China, by Percy H. Kent (Lon- 
 don, "1908). 
 
 Malloy Treaties, Conventions, etc., betzveen the United States 
 
 and Other Powers, 1776-1909, edited by William AI. 
 Malloy (Washington, Government Printing Office, 
 1909). 
 
 Official Documents Official Documents relating to the War (for the year 
 
 1917) (Peking, Ministry of Foreign Affairs, 1918). 
 
 Recueil Recueil des Documents Diplomatiqucs concemant 
 
 r Extreme-Orient, 1894-1905, published by the Rus- 
 sian Ministry for Foreign Affairs (St. Petersburg, 
 1905). 
 
 Rockhill Treaties and Conventions with or concerning China and 
 
 Korea, 1895-1904, edited by W. W. Rockhill (Wash- 
 ington, Government Printing Office, 1904). 
 
 Shina Kankei Tokushu Joyaku Isan. Compilation of Special Treaties relating to China, com- 
 piled by the Research Committee of the Societv of 
 Common Language of Eastern Asia (Tokyo, 1917). 
 
 Sobranie See Bulletin of Laws. 
 
 Soglashenia Agreements between Russia and China in regard to 
 
 Railways, Posts and Telegraphs, and Customs 
 (Soglashenia mcjdu Rossiei i Kitaem po Voprosam 
 J eli-ezno-dorojnuim, Pochtovo-telegrafnuim i Tamo- 
 jennuiin), published by the Russian INlinistry for For- 
 eign Affairs as a Supplement to Volumes III and IV 
 of the Izviestia (cited above) for 1916. 
 xlv
 
 j^j LIST OF ABBREVIATIONS 
 
 T- •.' * r^„.,^t,iin„c Traites et Conventions entre l' Empire dti Japan et 
 
 Traites et Conventions Tes Puissances Etrangeres (Ministere des Affaires 
 
 Etrangeres; Tokyo, Maruya & Co., publishers, 1908). 
 rp .The Legal Obligations arising out of Treaty Relations 
 
 ^ ^'^^ between China and Other States, by Min-ch'ien T. Z. 
 
 Tyau, LL.D. (Shanghai, Commercial Press, 1917). 
 Tr/^„^ ..Raikvay Loan Agreements of China, compiled by 
 
 """^ Ching-Chun Wang, Ph.D., and Others (Privately 
 
 printed by the Railway Association, Pekmg, 1916). 
 
 V.nr Rank The China Year Book, by H. G. W. Woodhead and 
 
 ^""^ ^'""' H. T. Montague Bell (London, 1912, 1913, 1914, and 
 
 1916).
 
 NUMBER 1894/1. 
 
 GREAT BRITAIN AND CHINA. 
 
 Convention giving effect to Article 3 of the Convention of July 24, 1886, relative 
 to Biirmah and Thibet^— March 1, 1894. 
 
 Her Majesty the Queen of the United Kingdom of Great Britain and Ire- 
 land, Empress of India, and His Majesty the Emperor of China, being sincerely 
 desirous of consolidating the relations of friendship and good neighborhood 
 which happily exist between the two Empires, have resolved to conclude a Con- 
 vention with the view of giving effect to Article III of the Convention relative 
 to Burmah and Thibet, signed at Peking on the 24th July, 1886,t and have ap- 
 pointed as their Plenipotentiaries for this purpose, that is to say : 
 
 Her Majesty the Queen of the United Kingdom of Great Britain and Ire- 
 land, Empress of India, the Right Honourable the Earl of Rosebery, Knight of 
 the Most Noble Order of the Garter, Her Britannic Majesty's Principal Secre- 
 tary of State for Foreign Affairs ; 
 
 And His Majesty the Emperor of China, Sieh Ta-Jen, Envoy Extraordinary 
 and Minister Plenipotentiary of China at the Court of St. James', and Vice- 
 President of the Imperial Board of Censors ; 
 
 Who, having mutually communicated to each other their respective full 
 powers, found to be in good and due form, have agreed upon the following 
 Articles : — 
 
 Art. I. — Delimitation of frontier, first section. — It is agreed that the fron- 
 tier between the two Empires, from latitude 25° 35' north, shall run as follows: 
 
 Commencing at the high conical peak situated approximately in that latitude 
 and in longitude 98° 14' east of Greenwich and 18° 16' west of Peking, the line 
 will follow, as far as possible, the crest of the hills running in a south-westerly 
 direction through Kaolang Pum and the Warong Peak, and thence run nearly 
 midway between the villages of Wanchon and Kaolang — leaving the former to 
 Burmah and the latter to China — on to Sabu Pum. 
 
 From Sabu Pum the frontier will run in a line slightly to the south of west 
 through Shatrung Pum to Namienku Pum ; thence it will be continued, still run- 
 ning in a south-westerly direction along the crest of the hills, until it strikes 
 the Tazar Kha River, the course of which it will follow from its source to its 
 
 * Text as printed in RockhUl, p. 5. Printed also in B. & F. State Papers, vol. 87, 1894-5, 
 p. 1311; Customs, Vol. I, p. 520; Hertslet, p. 99. 
 
 This convention was modified by that of February 4, 1897 (No. 1897/1, post) : see also 
 the convention of April 27, 1906 (No. 1906/2, post). 
 
 In connection with this convention, see the Anglo-French declaration of January 15, 
 1896 (No. 1896/1, post), particularly Article 4. 
 
 fFor the text, see Hertslet, p. 88 (No. 15). 
 
 1
 
 2 ' CHINA TREATIES AND AGREEMENTS 
 
 confluence with the Nam Tabet or Tabak Kha, thus leaving Uka to the east 
 and Laipong to the west. 
 
 From the confluence of the Tazar Kha River with the Tabak Kha, the fron- 
 tier will ascend the latter river to its junction with the Lekra Kha, which it will 
 follow to its source near Nkrang. From the source of the Lekra Kha, leaving 
 Nkrang, Kukum, and Singra to the west, and Sima and Mali to the east, the 
 line will follow the Lesa Kha from its western source to its junction with the 
 Mali River, and thence will ascend the Mali to its source near Hpunra Shikong: 
 thence it will run in a south-westerly direction along the Laisa Kha from its 
 source down to the point where it falls into the Mole River near Kadon, leaving 
 the village of Kadon to the west and that of Laisa to the east. 
 
 The line will then follow the course of the Mole in a southeasterly direc- 
 tion to the place where it receives the Che Yang Kha, which latter river it will 
 follow to its source in the Alau Pum. It will then be directed along the Nam- 
 paung River from its western source down to where it enters the Taping River. 
 
 This concludes the description of the first section of the frontier. 
 
 IL — Delimitation of frontier, second section. — The second section of the 
 frontier, or that portion of it which extends from the Taping River, to the neigh- 
 bourhood of Meung Mao, will run as follows : 
 
 Starting from the junction of the Khalong Kha with the Taping River, the 
 frontier will follow the Khalong Kha and its western branch to its source; it 
 will be drawn thence southward to meet the Sipaho or Lower Nanthabet at a 
 spot immediately to the south-west of Hanton, leaving Matin to Great Britain, 
 and Loilong-ga-tong, Tieh-pi-Kwan, and Hanton to China ; thence it will ascend 
 the branch of the last-named river which has its source nearest to that of the 
 Mantein Kha. It will thence follow the crests of the line of hills running in a 
 south-easterly direction to the more southerly of the two places named Kadaw, 
 which is close to the Namwan River, leaving Kadaw to China and Palen to Great 
 Britain. It will follow the Namwan River in a south-westerly direction down to 
 the point in about latitude 23° 55', where that river takes a south-easterly course. 
 Thence it will run in a direction somewhat west of south to the Nammak River, 
 leaving Namkhai to Great Britain. It will follow the Nammak River to the point 
 where it bifurcates in about latitude 23° 47', and will then ascend the southern 
 branch till it reaches the crest of a high range of hills to the south of Mawsiu, in 
 about latitude 23° 45'. It will follow the crest of this range (which runs slightly 
 to the north of east) until it reaches the Shweli River at its junction with the 
 Nammak, thus leaving to China the district of Mawsiu, the spot recently identi- 
 fied as Tien-ma-Kwan, and the villages of Hinglon and Kong-mow, lying to the 
 north of the above-mentioned range. 
 
 It will then follow the course of the Shweli River, and where the river 
 bifurcates, it will follow the more southerly of the two branches, leaving to 
 China the island formed by them, until it reaches a point near the eastern end 
 of the loop which the river forms opposite to Meung Mao, as indicated in the next 
 Article of the Convention. 
 
 Open roads between Burmah and China. — The Government of China con- 
 sent that the most direct of the roads between Bhamo and Nankhan, where it
 
 NUMBER 1894/1: MARCH 1, 1894 ■ 3 
 
 through Loiaipong and Loipanglom until it reaches the Salween River, in about 
 passes through the small portion of Chinese territory south of Namwan, shall, 
 while remaining entirely open to Chinese subjects and to the tribesmen subject to 
 China, be free and open to Great Britain for travellers, commerce, and adminis- 
 trative purposes, without any restrictions whatever. Her Britannic Majesty's 
 Government shall have the right, after communication with the Chinese authori- 
 ties, to execute any works which may be desirable for the improvement or repair 
 of the road, and to take any measures which may be required for the protection 
 of the traffic and the prevention of smuggling. 
 
 It is equally agreed that British troops shall be allowed to pass freely along 
 this road. But no body of troops more than 200 in number shall be despatched 
 across it without the consent of the Chinese authorities, and previous notice in 
 writing shall be given of every armed party of more than twenty men. 
 
 III. — Delimitation of frontier, third section. — The third section of the fron- 
 tier will run as follows : 
 
 It will commence from a point on the Shweli River, near to the east end 
 of the loop formed by that river opposite to Meung Mao; thence paying due 
 regard to the natural features and the local conditions of the country, it will trend 
 in a south-easterly direction towards Ma-li-pa until it reaches, at a point in 
 about longitude 98° 7' east of Greenwich (18° 23' west of Peking), and latitude 
 23° 52', a conspicuous mountain range. It will follow the crests of that range 
 latitude 23° 41'. 
 
 This portion of the frontier from the Shweli to the Salween River shall 
 be settled by the Boundary Commission provided for in Article VI of the present 
 Convention, and in such manner as to give to China at least as much territory 
 as would be included if the frontier were drawn in a straight line from Meung 
 Mao towards Ma-li-pa. 
 
 If it should be found that the most suitable frontier will give to China a 
 larger amount of territory than is stated above, the compensation to be given to 
 Great Britain on some other part of the frontier shall be matter for subsequent 
 arrangement. 
 
 From latitude 23° 41' the frontier will follow the Salween until it reaches 
 the northern boundary of the circle of Kunlong. It will follow that boundary 
 in an easterly direction, leaving the whole circle of Kunlong, and the ferry of 
 that name to Great Britain, and leaving to China the State of Kokang. 
 
 It will then follow the course of the river forming the boundary between 
 Somu, which belongs to Great Britain, and Meng Ting, which belongs to China. 
 It will still continue to follow the frontier between those two districts, which is 
 locally well known, to where it leaves the aforesaid river and ascends the hills ; 
 and will then follow the line of water-parting between the tributaries of the 
 Salween and the Meikong Rivers, from about longitude 99° east of Greenwich 
 (17° 30' west of Peking), and latitude 23° 20', to a point about longitude 99° 
 40' east of Greenwich (16° 50' west of Peking), and latitude 23°, leaving to 
 China the Tsawbwaships of Keng Ma, Mengtung, and Mengko. 
 
 At the last-named point of longitude and latitude the line strikes a very lofty 
 mountain range, called Kong-Ming-Shan, which it will follow in a southerly
 
 4 CHINA TREATIES AND AGREEMENTS 
 
 direction to about longitude 99° 30' east of Greenwich (17° west of Peking), 
 and latitude 22° 30', leaving to China the district of Chen-pien T'ing. Then, 
 descending the western slope of the hills to the Namka River, it will follow the 
 course of that river for about 10' of latitude, leaving Munglem to China, and 
 Mangliin to Great Britain. 
 
 It will then follow the boundary between Munglem and Kyaing Tong, which 
 is locally well-known, diverging from the Namka River a little to the north of 
 latitude 22°, in a direction somewhat south of east, and generally following the 
 crest of the hills till it strikes the Namlam River in about latitude 21 ° 45', and 
 longitude 100° east of Greenwich (16° 30' west of Peking), 
 
 It will then follow the boundary between Kyaing Tong and Kiang Hung 
 which is generally formed by the Namlam River, with the exception of a small 
 strip of territory belonging to Kiang Hung, which lies to the west of that river 
 just south of the last named parallel of latitude. On reaching the boundary of 
 Kyaing Chaing, in about latitude 21° 27', and longitude 100° 12' east of Green- 
 wich (16° 18' west of Peking), it will follow the boundary between that district 
 and Kiang Hung until it reaches the Meikong River. 
 
 IV. — Portion of frontier to be settled ulteriorly. — It is agreed that the set- 
 tlement and delimitation of that portion of the frontier which lies to the north 
 of latitude 25° 35' north shall be reserved for a future understanding between 
 the High Contracting Parties, when the features and conditions of the country 
 are more accurately known. 
 
 V. — Territorial concessions to China. — In addition to the territorial conces- 
 sions in Northern Theinni, and the cession to China of the State of Kokang, 
 which result from the frontier as above described. Her Britannic Majesty, in 
 consideration of the abandonment of the claims advanced by China to the terri- 
 tory lying outside and abutting on the frontier of the Prefecture of Yung Chang 
 and Sub-Prefecture of Teng Yiieh, agrees to renounce in favour of His Majesty 
 the Emperor of China, and of his heirs and successors for ever, all the suzerain 
 rights in and over the States of Munglem and Kiang Hung % formerly possessed 
 by the Kings of Ava concurrently with the Emperors of China. These and all 
 other rights in the said States, with the titles, prerogatives and privileges thereto 
 pertaining. Her Majesty the Queen Empress renounces as aforesaid, with the sole 
 proviso that His Majesty the Emperor of China shall not, without previously 
 coming to an agreement with Her Britannic Majesty, cede either Munglem or 
 Kiang Hung, or any portion thereof, to any other nation. § 
 
 tHertsIet (p. 103), citing Parliamentary Paper, Siam, No. 1 (1893), makes the following 
 
 note: "On the 1st December, 1893, the French Government were officially informed by the 
 
 British Government that no Treaty had then been signed between Great Britain and China, 
 on the subject of the State of Kiang Hung, and that England had no intention of seeking 
 to obtain any monopoly, either for railways, steam-boat companies, or any other mode of 
 transit or communication, to the detriment of "R"rench commercial enterprises of the same 
 kind ; and that it was understood that, in that respect, the field would be left open to French 
 and English enterprise. In return the French Government stated that the delimitation of 
 the French possessions on the side of Kiang Hung had not then been made, but that, in 
 the negotiations on the subject which the French Government would have to carry on with 
 the Chinese Government, they intended to be guided_ by the same principles as were laid 
 down by the British Government in their communication of the 1st December, 1893." 
 
 %HertsUt, citing Hansard's Debates, vol. 47 (1897), p. 296, notes that "Under the 
 Burmah Frontier Convention, as revised (No. 1897/1, post), certain territorial compensa-
 
 NUiMBER 1894/1: MARCH 1, 1894 5 
 
 VI. — Demarcation of frontier. — It is agreed that, in order to avoid any local 
 contention, the alignments of the frontier described in the present Convention, 
 and shown on the maps annexed thereto, shall be verified and demarcated, and, 
 in case of its being found defective at any point, rectified by a Joint Commission 
 appointed by the High Contracting Parties ; and that the said Commission shall 
 meet, at a place hereafter to be determined on by the two Governments, not later 
 than twelve months after the exchange of the ratifications of the present Conven- 
 tion ; and shall terminate its labours in not more than three years from the date of 
 its first meeting. 
 
 It is understood that any alterations in the alignment which the Joint Com- 
 mission may find it necessary to make shall be based on the principle of equiva- 
 lent compensations, having regard not only to the extent, but also to the value, 
 of the territory involved. Further, that should the members of the Commission be 
 unable to agree on any point, the matter of disagreement shall at once be referred 
 to their respective Governments. 
 
 The Commission shall also endeavour to ascertain the situation of the former 
 frontier-post of China named Kanlung Kwan. If this place can be identified, 
 and is found to be situated in British Territory, the British Government will 
 consider whether it can, without inconvenience, be ceded to China. 
 
 If it shall be found to the south-east of Meung Mao so as to be on the north- 
 ern side of the straight line drawn from that place towards Ma-li-pa, it will in 
 that case already belong to China. 
 
 VII. — Occupation following demarcation. — It is agreed that any posts be- 
 longing to either country which may be stationed within the territory of the other 
 when the Commission of Delimitation shall have brought its labours to a con- 
 clusion shall, within eight months from the date of such conclusion, be with- 
 drawn, and their places occupied by the troops of the other, mutual notice having 
 in the meantime been given of the precise date at which the withdrawal and occu- 
 pation will take place. From the date of such occupation the High Con- 
 tracting Parties shall each within its own territories hold itself responsible for 
 the maintenance of good order, and for the tranquillity of the tribes inhabiting 
 them. 
 
 Unfortified strip. — The High Contracting Parties further engage neither to 
 construct nor to maintain within 10 English miles from the nearest point of the 
 common frontier, measured in a straight line and horizontal projection, any forti- 
 fications or permanent camps, beyond such posts as are necessary for preserving 
 peace and good order in the frontier districts. 
 
 VIII. — Free trade between China and Burmah. — Subject to the conditions 
 mentioned hereafter in Articles X and XI, the British Government, wishing to 
 encourage and develop the land trade of China with Burmah as much as pos- 
 sible, consent, for a period of six years from the ratification of the present Con- 
 vention, to allow Chinese produce and manufactures, with the exception of salt, 
 to enter Burmah by land duty free, and to allow British manufactures and 
 
 tions were made to Great Britain for the violation by the Chinese Government of that por- 
 tion of the original Convention that related to Kiang Hung," the Chinese Government having 
 by the Delimitation Convention with France, signed June 20, 1895 (No. 1895/4, post), 
 alienated a part of the territory of Kiang Hung.
 
 6 CHINA TREATIES AND AGREEMENTS 
 
 Burmese produce, with the exception of rice, to be exported to China by land 
 free of duty. 
 
 Salt and rice subject to duties. — The duties on salt and rice so imported and 
 exported shall not be higher than those imposed on their import or export by sea. 
 
 IX. — Trade route. — Pending the negotiation of a more complete arrange- 
 ment, and until the development of the trade shall justify the establishment of 
 other frontier Customs stations, goods imported from Burmah into China or 
 exported from China into Burmah shall be permitted to cross the frontier by 
 Manwyne and by Sansi. 
 
 Reduced tariff . — With a view to the development of trade between China 
 and Burmah, the Chinese Government consent that for six years from the rati- 
 fication of the present Convention the duties levied on goods imported into China 
 by these routes shall be those specified in the General Tariff of the Maritime 
 Customs diminished by three-tenths, and that the duties on goods exported from 
 China by the same route shall be those specified in the same Tariff diminished 
 by four-tenths. 
 
 Transit passes. — Transit passes for imports and exports shall be granted 
 in accordance with the rules in force at the Treaty ports. 
 
 Smuggling. — Smuggling or the carrying of merchandize through Chinese 
 territory by other routes than those sanctioned by the present Convention, shall, 
 if the Chinese authorities think fit, be punished by the confiscation of the mer- 
 chandize concerned. 
 
 X. — Trade in munitions of war. — The following articles, being munitions 
 of war, shall neither be exported from Burmah into China, nor imported from 
 China into Burmah, save at the requisition of the Government desiring their 
 importation; neither shall they be sold to parties other than those who have 
 been duly authorized by their respective Governments to purchase them : 
 
 Cannon, shot and shell, cartridges and ammunition of all kinds, firearms and 
 weapons of war of every description. Saltpetre, sulphur, brimstone, gunpowder, 
 dynamite, gun-cotton, or other explosives. 
 
 XI. — Forbidden trade. — The exportation from Burmah into China of salt 
 is prohibited. The exportation from China into Burmah of cash, rice, pulse and 
 grains of every kind is prohibited. 
 
 The importation and exportation across the frontier of opium and spirituous 
 liquors is prohibited, excepting in small quantities for the personal use of travel- 
 lers. The amount to be permitted will be settled under Customs regulations. 
 
 Infractions of the conditions set forth in this and the preceding Article will 
 be punishable by confiscation of all the goods concerned. 
 
 XII. — Encouragement of mining. — The British Government, wishing to 
 promote frontier trade between the two countries by encouraging mining enter- 
 prise in Yiinnan and in the new territorial acquisitions of China referred to in 
 the present Convention, consent to allow Chinese vessels carrying merchandize, 
 ores, and minerals of all kinds, and coming from or destined for China, freely to 
 navigate the Irrawaddy on the same conditions as to dues and other matters as 
 British vessels. 
 
 XIII. — Consular officers.— It is agreed that His Majesty the Emperor of
 
 NUMBER 1894/1 : xMARCH 1, 1894 7 
 
 China may appoint a Consul in Burmah, to reside at Rangoon; and that Her 
 Britannic Majesty may appoint a Consul to reside at Manwyne; and that the 
 Consuls of the two Governments shall each within the territories of the other 
 enjoy the same privileges and immunities as the Consuls of the most favoured 
 nation. 
 
 Further, that, in proportion as the commerce between Burmah and China 
 increases, additional Consuls may be appointed by mutual agreement, to reside 
 at such places in Burmah and Yiinnan as the requirements of the trade may 
 seem to demand. 
 
 The correspondence between the British and Chinese Consuls respectively, 
 and the chief authority at the place where they reside, shall be conducted on terms 
 of perfect equality. 
 
 XIV. — Passports. — Passports, written in Chinese and English, and identical 
 in terms to those issued to foreigners at the Treaty ports in China, shall, on the 
 application of the proper British authorities, be issued to British merchants and 
 others wishing to proceed to China from Burmah, by the Chinese Consul at 
 Rangoon or by the Chinese authorities on the frontier; and Chinese subjects 
 wishing to proceed to Burmah from China shall, on the application of any recog- 
 nized Chinese official, be entitled to receive similar passports from Her Britannic 
 Majesty's Consul at Manwyne or other convenient places in China where there 
 may be a British Consular officer. 
 
 XV. — Extradition of criminals. — Should criminals, subjects of either coun- 
 try, take refuge in the territory of the other, they shall, on due requisition being 
 made, be searched for, and, on reasonable presumption of their guilt being estab- 
 lished, they shall be surrendered to the authorities demanding their extradition. 
 
 " Due requisition " shall be held to mean the demand of any functionary of 
 either Government possessing a seal of office, and the demand may be addressed 
 to the nearest frontier officer of the country in which the fugitive has taken 
 refuge. 
 
 X\T. — Telegraph lines to be extended.— With a view to improving the in- 
 tercourse between the two countries, and placing the Chinese Consul at Rangoon 
 in communication with the high provincial authorities in Yunnan, the High Con- 
 tracting Parties undertake to connect the telegraphic systems of the two coun- 
 tries with each other as soon as the necessary arrangements can be made ; the 
 line will, however, at first only be used for the transmission of official telegrams 
 and of general messages for and from Burmah and the Province of Yunnan. 
 
 XVn. — Favored-nation provision.— It is agreed that subjects of the two 
 Powers shall each within the territories of the other enjoy all the privileges, im- 
 munities, and advantages that may have been, or may hereafter be accorded to 
 the subjects of any other nation. 
 
 XVIII. — Stipulations of convention restricted to localities mentioned. — 
 It is agreed that the commercial stipulations contained in the present Convention 
 being of a special nature and the result of mutual concessions, consented to with 
 a view to adapting them to local conditions and the peculiar necessities of the 
 Burmah-China overland trade, the advantages accruing from them shall not be 
 invoked by the subjects of either Power residing at other places where the two
 
 8 CHINA TREATIES AND AGREEMENTS 
 
 Empires are conterminous, excepting where the same conditions prevail, and 
 then only in return for similar concessions. 
 
 XIX. — Revision of convention. — The arrangements with regard to trade and 
 commerce contained in the present Convention being of a provisional and experi- 
 mental character, it is agreed that should subsequent experience of their work- 
 ing, or a more intimate knowledge than is now possessed of the requirements 
 of the trade, seem to require it, they may be revised at the demand of either 
 party after a lapse of six years after the exchange of ratifications of the present 
 Convention, or sooner should the two Governments desire it. 
 
 XX. — Ratification. — The ratification of the present Convention under the 
 hand of Her Britannic Majesty and of His Majesty the Emperor of China shall 
 be exchanged in London in six months from this day of signature, or sooner if 
 possible. 
 
 The Convention shall come into force immediately after the exchange of 
 ratifications.il 
 
 In token whereof the respective Plenipotentiaries have signed this Conven- 
 tion in four copies, two in Chinese and two in English. 
 
 Done at London, this 1st day of March, 1894, corresponding to the 24th 
 day of the 1st moon of the 20th year of Kuang Hsii. 
 
 [l. S.] ROSEBERY. 
 
 [l. s.] Sieh. 
 
 declaration. 
 
 On proceeding to the signature this day of the Convention between Great 
 Britain and China, giving effect to Article HI of the Convention relative to Bur- 
 mah and Thibet, signed at Peking on the 24th July, 1886 : jj 
 
 The undersigned Plenipotentiaries declare that, inasmuch as the present Con- 
 vention has been concluded for the special purpose mentioned in the preamble 
 thereof, the stipulations contained therein are applicable only to those parts of the 
 dominions of Her Britannic Majesty and of His Majesty the Emperor of China 
 to which the said Convention expressly relates, and are not to be construed as 
 applicable elsewhere. 
 
 Done at London, the 1st day of March, 1894. 
 
 [l. s.] Rosebery. 
 
 [l. s.] Sieh. 
 
 il Ratifications were exchanged at London on August 23, 1894. 
 '^Hertslet, 88 (No. 15).
 
 NUMBER 1894/2: MARCH 17, 1894 9 
 
 NUMBER 1894/2. 
 
 UNITED STATES AND CHINA. 
 
 Convention regulating Chinese immigration.'^ — March 17 , 1894.^ 
 
 Whereas, on the 17*^ day of November A. D. 1880, and of Kwanghsii, the 
 sixth year, tenth moon, fifteenth day, a Treaty was concluded between the United 
 States and China for the purpose of regulating, limiting, or suspending the com- 
 ing of Chinese laborers to, and their residence in, the United States; 
 
 And whereas the Government of China, in view of the antagonism and 
 much deprecated and serious disorders to which the presence of Chinese laborers 
 has given rise in certain parts of the United States, desires to prohibit the 
 emigration of such laborers from China to the United States ; 
 
 And whereas the two governments desire to co-operate in prohibiting such 
 immigration, and to strengthen in other ways the bonds of friendship between 
 the two countries ; 
 
 And whereas the two Governments are desirous of adopting reciprocal 
 measures for the better protection of the citizens or subjects of each within the 
 jurisdiction of the other ; 
 
 Now, therefore, the President of the United States has appointed Walter Q. 
 Gresham, Secretary of State of the United States, as his Plenipotentiary, and 
 His Imperial Majesty, the Emperor of China has appointed Yang Yii, Officer of 
 the second rank, Sub-Director of the Court of Sacrificial Worship, and Envoy 
 Extraordinary and Minister Plenipotentiary to the United States of America, as 
 his Plenipotentiary ; and the said Plenipotentiaries having exhibited their re- 
 spective Full Powers found to be in due and good form, have agreed upon the 
 following articles : 
 
 Article I. — The High Contracting Parties agree that for a period of ten 
 years, beginning with the date of the exchange of the ratifications of this Con- 
 vention, the coming, except under the conditions hereinafter specified, of Chi- 
 nese laborers to the United States shall be absolutely prohibited. 
 
 Article II. — The preceding Article shall not apply to the return to the 
 United States of any registered Chinese laborer who has a lawful wife, child, 
 or parent in the United States, or property therein of the value of one thousand 
 dollars, or debts of like amount due him and pending settlement. Nevertheless 
 every such Chinese laborer shall, before leaving the United States, deposit, as a 
 condition of his return, with the collector of customs of the district from which 
 he departs, a full description in writing of his family, or property, or debts, as 
 aforesaid, and shall be furnished by said collector with such certificate of his 
 right to return under this Treaty as the laws of the United States may now 
 
 *Text as printed in Malloy, p. 241. Printed also in Customs, Vol. I, p. 740; Hertslet, 
 
 t Ratifications exchanged December 7, 1894. This treaty terminated December 7, 1904, 
 on notice given by the Chinese Government.
 
 10 CHINA TREATIES AND AGREEMENTS 
 
 or hereafter prescribe and not inconsistent with the provisions of this Treaty; 
 and should the written description aforesaid be proved to be false, the right of 
 return thereunder, or of continued residence after return, shall in each case 
 be forfeited. And such right of return to the United States shall be exercised 
 within one year from the date of leaving the United States ; but such right of 
 return to the United States may be extended for an additional period, not to 
 exceed one year, in cases where by reason of sickness or other cause of disability 
 beyond his control, such Chinese laborer shall be rendered unable sooner to 
 return — which facts shall be fully reported to the Chinese Consul at the port of 
 departure, and by him certified, to the satisfaction of the collector of the port 
 at which such Chinese subject shall land in the United States. And no such Chi- 
 nese laborer shall be permitted to enter the United States by land or sea 
 without producing to the proper officer of the customs the return certificate 
 herein required. 
 
 Article III. — The provisions of this Convention shall not affect the right 
 at present enjoyed of Chinese subjects, being officials, teachers, students, mer- 
 chants or travellers for curiosity or pleasure, but not laborers, of coming to the 
 United States and residing therein. To entitle such Chinese subjects as are 
 above described to admission into the United States, they may produce a cer- 
 tificate from their Government or the Government where they last resided vised 
 by the diplomatic or consular representative of the United States in the country 
 or port whence they depart. 
 
 It is also agreed that Chinese laborers shall continue to enjoy the privilege 
 of transit across the territory of the United States in the course of their journey 
 to or from other countries, subject to such regulations by the Government of the 
 United States as may be necessary to prevent said privilege of transit from being 
 abused. 
 
 Article IV. — In pursuance of Article III of the Immigration Treaty be- 
 tween the United States and China, signed at Peking on the 17^^ day of Novem- 
 ber, 1880, (the 15*^^ day of the tenth month of Kwanghsii, sixth year) it is 
 hereby understood and agreed that Chinese laborers or Chinese of any other 
 class, either permanently or temporarily residing in the United States, shall have 
 for the protection of their persons and property all rights that are given by the 
 laws of the United States to citizens of the most favored nation, excepting the 
 right to become naturalized citizens. And the Government of the United States 
 reaffirms its obligation, as stated in said Article III, to exert all its power to 
 secure protection to the persons and property of all Chinese subjects in the 
 United States. 
 
 Article V. — The Government of the United States, having by an Act 
 of the Congress, approved May 5, 1892, as amended by an Act approved Novem- 
 ber 3, 1893, required all Chinese laborers lawfully within the limits of the United 
 States before the passage of the first named Act to be registered as in said Acts 
 provided, with a view of affording them better protection, the Chinese Govern- 
 ment will not object to the enforcement of such Acts, and reciprocally the Gov- 
 ernment of the United States recognizes the right of the Government of China 
 to enact and enforce similar laws or regulations for the registration, free of
 
 NUMBER 1895/1: JANUARY 26, 1895 H 
 
 charge, of all laborers, skilled or unskilled, (not merchants as defined by said 
 Acts of Congress), citizens of the United States in China, whether residing 
 within or without the treaty ports. 
 
 And the Government of the United States agrees that within twelve months 
 from the date of the exchange of the ratifications of this Convention, and annu- 
 ally, thereafter, it will furnish to the Government of China registers or reports 
 showing the full name, age, occupation, and number or place of residence of all 
 other citizens of the United States, including missionaries, residing both within 
 and without the treaty ports of China, not including, however, diplomatic and 
 other officers of the United States residing or travelling in China upon official 
 business, together with their body and household servants. 
 
 Article VI. — This Convention shall remain in force for a period of ten 
 years beginning with the date of the exchange of ratifications, and, if six months 
 before the expiration of the said period of ten years, neither Government shall 
 have formally given notice of its final termination to the other, it shall remain in 
 full force for another like period of ten years. 
 
 In faith whereof, we, the respective plenipotentiaries, have signed this Con- 
 vention and have hereunto affixed our seals. 
 
 Done, in duplicate, at Washington, the 17*'^ day of March, A. D. 1894. 
 
 Walter Q. Gresham. [seal.] 
 Yang Yu. [seal.] 
 
 NUMBER 1895/1. 
 
 GREAT BRITAIN (Hongkong and Shanghai Banking Corporation) 
 
 AND CHINA. 
 
 'Final Agreement for the Chinese Imperial Government seven per cent silver loan 
 
 of 1894.— January 26, 1895. 
 
 An agreement made this 26 day of January 1895 between the Tsung li 
 Yamen acting in conjunction with the Board of Revenue on behalf of the Im- 
 perial Chinese Government of the one part and the Hongkong & Shanghai Bank- 
 ing Corporation of the other part. 
 
 2. — Whereas by a Preliminary contract made on the 2nd day of October 1894 
 between the Tsung li Yamen and the Corporation, the Corporation was author- 
 ised to act as Agents for the Chinese Government and as such Agents to raise a 
 loan on behalf of the Chinese Government of Ten millions nine hundred thou- 
 sand Taels of Shanghai sycee being the equivalent of Ten millions Kuping Taels 
 pure silver. The rate of interest being 7 per cent per annum, the period of the 
 Loan being ten years, and it being arranged that Bonds to secure repayment to 
 the public of principal and interest should be issued to the public at par, and 
 that the rate of Exchange should be left to the discretion of the Corporation.
 
 12 CHINA TREATIES AND AGREEMENTS 
 
 3. — And whereas at subsequent discussions between the parties it was ar- 
 ranged that the term of the loan should be extended to 20 years and that instead 
 of issuing the Bonds to the public at par they should be issued at a discount of 
 2 per cent and at a sterling exchange of three shillings per S'hai Tael and that 
 the whole amount, after deducting the Corporation's commission and allow- 
 ance for expenses, so received should be handed over to the Chinese Govern- 
 ment by the Corporation at an exchange of two shillings and eleven pence (2/11 
 1/4) per S'hai Tael, that is to say the equivalent of the full amount of the 
 Bonds at par, videlicit Shanghai Taels 10,900,000 less commission and allow- 
 ance for expense as above ; and other variations were made. 
 
 4. — And whereas the Corporation have contracted with the public for the 
 loan under the modified agreement, and have collected a large proportion of it ; 
 and, after deducting their commission and allowance for expenses, have handed 
 over the balance of the money collected to the Chinese Government, and have 
 agreed to hand over the balance which is to be collected on the 10th of January 
 1895 to the Chinese Government on its being collected : all of which acts and 
 arrangements have been examined into and approved of by the Chinese Govern- 
 ment. 
 
 5. — And whereas His Imperial Majesty the Emperor of China has by Edict 
 made on the 9th day of November 1894 (a copy whereof has been delivered 
 through the Tsung li Yamen and the British Minister to the Corporation) au- 
 thorised and recognized the said loan and the signing of this agreement. 
 
 6. — Now it is agreed as follows : 
 
 7. — Interest on the whole amount of the Loan shall be calculated from the 
 1st day of November 1894 and shall be at the rate of 7 per cent per annum on 
 the amount from time to time remaining due. The first payment of interest 
 shall be made on the 1st day of May 1895 and the subsequent payments on the 
 1st day of May and the 1st day of November in every year so long as any prin- 
 cipal money remains due. 
 
 8. — The principal of the loan shall be repaid in 10 equal annual instalments 
 commencing after the expiration of 9 years from the 1st day of November 1894, 
 that is to say on the 1st day of November 1904. The holders of Bonds un- 
 drawn on the 1st November 1912 shall have the option of receiving payment 
 of same, with interest thereon, either on the 1st November 1913 or on the 
 1st November 1914. 
 
 9. — The Loan and interest shall be paid through the Corporation in Lon- 
 don and elsewhere as may suit the convenience of the Bond holders, according 
 to the schedule to this agreement. 
 
 10. — The money to meet each payment of interest and instalment of prin- 
 cipal shall be handed to the Corporation at their Branch at Shanghai, in S'hai 
 sycee, 7 days before each payment or instalment becomes due. 
 
 11. — The Shanghai sycee to be handed to the Corporation to meet the pay- 
 ments of interest and instalments of principal shall be of the ordinarily accepted 
 standard of Shanghai sycee according to which payment of the loan is made to the 
 Chinese Government. 
 
 12. — Bonds of the Chinese Government to the extent of S'hai Taels
 
 NUMBER 1895/1 : JANUARY 26, 1895 13 
 
 10,900,000, bearing interest until repayment at the rate of 7 per cent per annum, 
 each for such amount and in such form as the Corporation shall think proper, 
 shall be issued by the Corporation to the subscribers to the loan; and the Chi- 
 nese Envoy to Great Britain shall put his Official seal upon every Bond as 
 evidence that the Chinese Government is bound thereby. 
 
 13. — The Chinese Government hereby specially authorises the Corporation, 
 as attorneys and Agents for the Chinese Government, the Tsung li Yamen and 
 the Board of Revenue, to issue the said Bonds on the sole responsibility of 
 the Chinese Government, and without the Corporation accepting any respon- 
 sibility for payment of either interest or principal. 
 
 14. — Customs Bonds for the total amount of principal and interest of the 
 loan each for such amount as shall suit the convenience of the Corporation, 
 signed by the Commissioner of Customs for the Treaty Port upon which each 
 Bond is chargeable and sealed by the Provincial Governor General or Governor 
 within whose jurisdiction such Treaty Port is situated, and by the Chinese Super- 
 intendent of Customs at such Port, shall be handed to the Shanghai Branch 
 of the Corporation on or before the 15th day of March 1895. 
 
 15. — The Chinese Government hereby assigns to and charges in favor of the 
 Corporation sufficient of the Customs Revenue at all or any of the Treaty ports, 
 irrespective of the port upon which any Bond may be primarily chargeable, to 
 meet and pay off all the Customs Bonds which have been handed to the Corpo- 
 ration as aforesaid. In the event of circumstances arising which should lead to 
 the non-payment of a Customs Bond or Bonds on presentation the Chinese Gov- 
 ernment hereby authorises the Corporation or its Agents to proceed to collect at 
 any Treaty port or ports Customs Revenue sufficient to meet such Bond or 
 Bonds. 
 
 16. — In the event of the money to meet a payment of interest or instalment 
 of principal not being handed to the Corporation at their Branch in Shanghai at 
 due date, the said Customs Bonds may be tendered, and shall be accepted, in 
 payment of duties to the amount of the face values together with any interest 
 in arrear up to or after the due date of the Bond. A Bond primarily chargeable 
 to any one Custom House may be tendered, and shall be accepted, at any other 
 Custom House. 
 
 17. — Should the money to pay the interest on the loan and the instalments 
 as they become due not be punctually provided as stipulated in the terms of this 
 agreement, or under the said Customs Bonds, or from the Revenue of the Cus- 
 toms, then Plis Imperial Majesty the Emperor of China and his successors 
 and the Imperial Chinese Government shall remain liable for, and shall pay, the 
 said interest and instalments immediately after the failure of the Customs to do 
 so shall have occurred, together with interest thereon to the day of actual pay- 
 ment. 
 
 18. — The Chinese Government guarantees that the prior charges upon the 
 Customs Revenue now outstanding do not exceed £700,000 Sterling and Tls. 
 500,000 besides loans issued by the Imperial Chinese Government at the present 
 moment at Shanghai and Canton to the extent of about Tls. 2,000,000 at each 
 place with interest thereon.
 
 14 
 
 CHINA TREATIES AND AGREEMENTS 
 
 19. — The said Customs Bonds shall be returned to the Customs authorities 
 according to the amount of the loan from time to time repaid by instalments, as 
 and when the money is received by the Corporation. 
 
 20. — This agreement is made out in English and Chinese, and in the event of 
 any question arising between the parties hereto as to the tone [? true] meaning 
 thereof the same shall be determined by the text of the English thereof which 
 shall be taken as the true text. 
 
 21. — The terms of this agreement and its signature by the contracting 
 parties shall be immediately after signature reported to the Throne by the Board 
 of Revenue and Tsung li Yamen in a joint supplementary Memorial, and copies 
 of that Memorial and of the Imperial Decree received in reply sanctioning this 
 agreement shall be officially handed by the Tsung li Yamen to H. B. M. Minister 
 in Peking for communication to the Corporation. 
 
 THE SCHEDULE ABOVE REFERRED TO 
 
 
 
 
 Balance of 
 
 
 
 Year 
 
 Date 
 
 Instalment of 
 
 Principal 
 
 Interest Due 
 
 Total Due 
 
 
 
 Principal Due 
 
 Outstanding 
 
 
 
 1894 
 
 Nov. 1 
 
 
 10,900,000 
 
 
 
 1895 
 
 May 1 
 
 Nov. 1 
 
 
 '" 
 
 381,500 
 
 381,500 
 381,500 
 
 1896 
 
 May 1 
 Nov. 1 
 
 
 •• 
 
 '' 
 
 381,500 
 381,500 
 
 1897 
 
 May 1 
 
 Nov. 1 
 
 
 '' 
 
 '• 
 
 381,500 
 381,500 
 
 1898 
 
 May 1 
 Nov. 1 
 
 
 '' 
 
 '■ 
 
 381,500 
 381,500 
 
 1899 
 
 May 1 
 
 Nov. 1 
 
 
 " 
 
 >i 
 
 381,500 
 381,500 
 
 1900 
 
 May 1 
 Nov. 1 
 
 
 .< 
 
 " 
 
 381,500 
 381,500 
 
 1901 
 
 May 1 
 
 
 ** 
 
 " 
 
 381,500 
 
 
 Nov. 1 
 
 
 ** 
 
 " 
 
 381,500 
 
 1902 
 
 May 1 
 Nov. 1 
 
 
 '' 
 
 
 381,500 
 381,500 
 
 1903 
 
 May 1 
 Nov. 1 
 
 
 " 
 
 '' 
 
 381,500 
 381,500 
 
 1904 
 
 May 1 
 
 
 " 
 
 '* 
 
 381,500 
 
 
 Nov. 1 
 
 1,090,000 
 
 9,810,000 
 
 ** 
 
 1,471,500 
 
 1905 
 
 ^lay 1 
 
 
 " 
 
 343,350 
 
 343,350 
 
 
 Nov. 1 
 
 1,090,000 
 
 8,720,000 
 
 343,350 
 
 1,433,350 
 
 1906 
 
 .May 1 
 
 
 " 
 
 305,200 
 
 305,200 
 
 
 Nov. 1 
 
 1,090,000 
 
 7,630,000 
 
 305,200 
 
 1,395,200 
 
 1907 
 
 May 1 
 
 
 " 
 
 267,050 
 
 267,050 
 
 
 Nov. 1 
 
 1,090,000 
 
 6,540,000 
 
 267,050 
 
 1,357,050 
 
 1908 
 
 May 1 
 
 
 " 
 
 228,900 
 
 228,900 
 
 
 Nov. 1 
 
 1,090,000 
 
 5,450,000 
 
 228,900 
 
 1,318,900 
 
 1909 
 
 May 1 
 
 
 " 
 
 190,750 
 
 190,750 
 
 
 Nov. 1 
 
 1,090,000 
 
 4,360,000 
 
 . 190,750 
 
 1,280,750 
 
 1910 
 
 May 1 
 
 
 
 152,600 
 
 152,600 
 
 
 Nov. 1 
 
 1,090,000 
 
 3,270.000 
 
 152,600 
 
 1.242,600 
 
 1911 
 
 May 1 
 
 
 " 
 
 114,450 
 
 114,450 
 
 
 Nov. 1 
 
 1,090,000 
 
 2,180,000 
 
 114,450 
 
 1,204,450 
 
 1912 
 
 May 1 
 
 
 " 
 
 76,300 
 
 76,300 
 
 
 Nov. 1 
 
 1,090,000 
 
 1,090,000 
 
 76,300 
 
 1,166,300 
 
 1913 
 
 May 1 
 
 
 " 
 
 38,150 
 
 38,150 
 
 
 Nov. 1 
 
 1,090,000 
 
 
 38,150 
 Shanghai Ta 
 
 1,128,150 
 els 21,963,500 
 
 These presents have been written in duplicate and duly signed by both parties 
 hereto, each retaining one.
 
 NUMBER 1895/2: JANUARY 26, 1895 15 
 
 NUMBER 1895/2. 
 
 GREAT BRITAIN (Hongkong and Shanghai Banking Corporation) AND 
 
 CHINA. 
 
 Final Agreement for the Chinese Imperial Government six per cent Sterling loan 
 
 of 1895.— January 26, 1895. 
 
 This Contract is made between the Tsung li Yamen, Peking, acting in con- 
 junction with the Board of Revenue, on behalf of the Imperial Government of 
 China, and the Hongkong and Shanghai Banking Corporation. 
 
 1. — The Tsung li Yamen hereby authorises the Hongkong and Shanghai 
 Banking Corporation, acting as agent for the Imperial Government of China, 
 either alone or associated with others selected by the Corporation, to borrow for 
 the Imperial Government of China the sum of Three million pounds Sterling. 
 
 2. — The rate of interest for the loan shall not exceed six per cent per annum, 
 and shall be payable half yearly, on the thirtieth day of June and thirty first day 
 of December of each year, on the amount of the loan from time to time remain- 
 ing unredeemed. 
 
 3. — The term of the loan shall be twenty years and repayment of principal 
 shall be made by fifteen equal annual drawings commencing on the thirty first 
 day of December nineteen hundred, but the Imperial Government of China shall 
 have the power and right of paying ofif the loan at par at any time during the 
 aforesaid term of twenty years on giving six months' notice by advertisement in 
 the " Times " newspaper, London. 
 
 4. — All payments of interest and repayments of principal shall be made to 
 the Hongkong and Shanghai Banking Corporation by the Imperial Government 
 of China, in accordance with the schedule to this Contract, and the Imperial Gov- 
 ernment of China shall hand to the Corporation at their Branch in S'hai funds 
 sufficient to enable them to meet all such payments in Sterling twenty one days 
 before they become due. 
 
 5. — The loan shall be issued to the public at a subscription price of not less 
 than ninety five and a half per cent. 
 
 6. — The Corporation, as Agent for the Imperial Government of China, shall 
 issue to subscribers to the loan Sterling Bonds for the total amount of the loan, 
 each for such amount as shall appear advisable in the discretion of the Corpo- 
 ration, and they shall be sealed by the Minister for China in London as evidence 
 that the Imperial Chinese Government is bound thereby. 
 
 7._The Commission to be paid by the Imperial Chinese Government to the 
 Corporation for floating and issuing the loan shall be two per cent clear on the 
 total amount of the loan, that is to say shall be sixty thousand pounds Sterling, 
 and shall be deducted by the Corporation from the proceeds of the loan. 
 
 8._A11 charges for underwriting, stamps, brokerage &c., incurred by the 
 Corporation in connection with the floating and issue of the loan and estimated at
 
 16 CHINA TREATIES AND AGREEMENTS 
 
 four and a half per cent on the total amount of the loan, shall be borne by the 
 Imperial Chinese Government and shall be deducted by the Corporation from 
 the proceeds of the loan. 
 
 9. — This loan, subject to loans now remaining unredeemed, shall be charged 
 on the Imperial Maritime Customs Revenue of China, and shall have priority, 
 both regarding principal and interest, over all future loans charges and 
 mortgages, so long as this loan, or any part thereof, shall be unredeemed. No 
 loan, charge or mortgage shall be raised or created which shall take precedence 
 of, or be on equality with this loan or which shall in any manner lessen or 
 impair its security over the said Customs Revenue, so far as required for the 
 annual service of this loan ; and any future loan charge or mortgage charged on 
 the said Customs Revenue shall be made subject to this loan, and it shall 
 be so expressed in every agreement for any such future loan, charge or mort- 
 gage. 
 
 10. — This loan shall be further secured by Customs Bonds for the total 
 sterling amount of the loan and interest, issued by the Tsung li Yamen and the 
 Board of Revenue, Peking, and countersigned by the Inspector General of Cus- 
 toms, and all such Customs Bonds shall contain the " priority clause " number 
 nine of this contract. Such Customs Bonds shall be handed to the Hongkong 
 and Shanghai Banking Corporation, in Tientsin, before payment by the Cor- 
 poration to the Imperial Chinese Government of the proceeds of the loan. 
 
 11. — This loan shall be also further collaterally secured by deposit with the 
 Hongkong and Shanghai Banking Corporation of Sterling Customs Bonds, equal 
 in value altogether to the total amount of the loan and interest, sealed by the 
 Chinese Superintendents of Customs at Treaty ports and by the Governors 
 General or Governors of the Provinces within which such Treaty ports are situ- 
 ated and countersigned by the Foreign Commissioners of Customs at such ports. 
 Such Customs Bonds shall be handed to the Corporation at their Branch in 
 Shanghai within three months from the date of signing this contract and, in 
 the event of the money to meet a payment of interest or instalment of prin- 
 cipal not being handed to the Corporation at their Branch in Shanghai at due 
 date, shall be available for payment of Imperial Maritime Customs duties at all or 
 any of the Treaty ports of China irrespective of the port or ports upon which 
 such Bonds may be primarily chargeable, or in such other manner as stated in 
 the Bonds. 
 
 12. — Should the loan be floated on better terms than those named herein the 
 Imperial Chinese Government shall have the benefit of the difference, and the 
 Corporation shall share in no economy or profits on the floating of the loan other 
 than its commission of two per cent, clear, aforesaid. 
 
 13. — The authority hereby given by the Tsung li Yamen to the Hongkong 
 and Shanghai Banking Corporation to borrow money on behalf of the Imperial 
 Government of China on the terms herein named shall remain in force for ten 
 days from the receipt by the Hongkong and Shanghai Banking Corporation, 
 in London of telegraphic advice of the signing of this contract, but the 
 Corporation accepts no responsibility for success or failure in floating the 
 loan.
 
 NUMBER 1895/2: JANUARY 26, 1895 
 
 17 
 
 14_ — Immediately upon being informed by the Hongkong and Shanghai 
 Banking Corporation that initial arrangements can be made for floating the loan, 
 and before the loan shall be issued to the public, the Board of Revenue and 
 the Tsung li Yamen shall jointly memorialise the Throne and obtain the Imperial 
 sanction for this contract with all the conditions herein specified, and copies 
 of their Memorial and of the Imperial Decree sanctioning this contract shall be 
 officially handed by the Tsung li Yamen to Her Britannic Majesty's Minister 
 in Peking for communication to the Corporation. 
 
 SCHEDULE ABOVE REFERRED TO 
 
 Year 
 
 Date 
 
 Instalment of 
 principal due 
 
 Balance of 
 principal out- 
 standing 
 
 Interest 
 due 
 
 Total due 
 
 1894 
 
 Dec. 31 
 
 
 3,000,000 
 
 
 
 1895 
 
 June 30 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 
 Dec. 31 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 1896 
 
 June 30 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 
 Dec. 31 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 1897 
 
 Tune 30 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 
 Dec. 31 
 
 * 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 1898 
 
 June 30 
 
 
 3,000,000 
 
 90,000 
 
 90.000 
 
 
 Dec. 31 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 1899 
 
 June 30 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 
 Dec. 31 
 
 
 3,000,000 
 
 90,000 
 
 90,000 
 
 1900 
 
 June 30 
 
 
 3,000,000 
 
 90,000 
 
 90.000 
 
 
 Dec. 31 
 
 200,000 
 
 2,800,000 
 
 90,000 
 
 290,000 
 
 1901 
 
 June 30 
 
 
 2,800,000 
 
 84,000 
 
 84,000 
 
 
 Dec. 31 
 
 200,000 
 
 2,600,000 
 
 84,000 
 
 284,000 
 
 1902 
 
 June 30 
 
 
 2,600,000 
 
 78,000 
 
 78,000 
 
 
 Dec. 31 
 
 200,000 
 
 2,400,000 
 
 78,000 
 
 278,000 
 
 1903 
 
 Tune 30 
 
 
 2,400,000 
 
 72,000 
 
 72.000 
 
 
 "Dec. 31 
 
 200,000 
 
 2,200,000 
 
 72,000 
 
 272,000 
 
 1904 
 
 June 30 
 
 
 2,200,000 
 
 66,000 
 
 66,000 
 
 
 Dec. 31 
 
 200,000 
 
 2,000,000 
 
 66,000 
 
 266,000 
 
 1905 
 
 June 30 
 
 
 2,000,000 
 
 60,000 
 
 60,000 
 
 
 Dec. 31 
 
 200,000 
 
 1,800,000 
 
 60,000 
 
 260,000 
 
 1906 
 
 Tune 30 
 
 
 1,800,000 
 
 54,000 
 
 54,000 
 
 
 Dec. 31 
 
 200,000 
 
 1,600,000 
 
 54,000 
 
 254,000 
 
 1907 
 
 June 30 
 
 
 1,600,000 
 
 48,000 
 
 48,000 
 
 
 Dec. 31 
 
 200,000 
 
 1,400,000 
 
 48.000 
 
 248,000 
 
 1908 
 
 June 30 
 
 
 1,400,000 
 
 42,000 
 
 42,000 
 
 
 Dec. 31 
 
 200,000 
 
 1,200,000 
 
 42,000 
 
 242.000 
 
 1909 
 
 June 30 
 
 
 1,200,000 
 
 36,000 
 
 36,000 
 
 
 Dec. 31 
 
 200,000 
 
 1,000,000 
 
 36,000 
 
 236,000 
 
 1910 
 
 June 30 
 
 
 1,000,000 
 
 30,000 
 
 30,000 
 
 
 Dec. 31 
 
 200,000 
 
 800.000 
 
 30,000 
 
 230,000 
 
 1911 
 
 June 30 
 
 
 800,000 
 
 24,000 
 
 24,000 
 
 
 Dec. 31 
 
 200,000 
 
 600,000 
 
 24,000 
 
 224,000 
 
 1912 
 
 June 30 
 
 
 600.000 
 
 18,000 
 
 18,000 
 
 
 Dec. 31 
 
 200,000 
 
 400,000 
 
 18,000 
 
 218,000 
 
 1913 
 
 June 30 
 
 
 400,000 
 
 12,000 
 
 12,000 
 
 
 Dec. 31 
 
 200,000 
 
 200,000 
 
 12,000 
 
 212,000 
 
 1914 
 
 June 30 
 
 
 200,000 
 
 6,000 
 
 6.000 
 
 
 Dec. 31 
 
 200,000 
 
 200,000 
 
 6,000 
 
 206,000 
 
 
 
 £3,000,000 
 
 
 £2,340.000 
 
 £5,340,000 
 
 Signed by the contracting parties in duplicate, one copy being retained by 
 each party, this first day of the first month of the twenty first year of the Em-
 
 18 CHINA TREATIES AND AGREEMENTS 
 
 peror Kuang Hsu, being the twenty sixth day of January one thousand eight 
 hundred and ninety five English Calendar. 
 
 (Signed) For the Hongkong & Shanghai 
 Banking Corporation, 
 
 E, G. HiLLIER, 
 
 Agent and Attorney. 
 (Signed) Shu Wen, 
 
 Secretary of the Tsung li Yamen. 
 [seal of tsung li yamen.] 
 [Date, in Chinese.] 
 
 NUMBER 1895/3. 
 
 JAPAN AND CHINA. 
 
 Treaty of peace {zvith separate articles and Convention to prolong Armistice).* — 
 
 April 17, 1895. 
 
 His Majesty the Emperor of China and His Majesty the Emperor of Japan, 
 desiring to restore the blessings of peace to their countries and subjects and to 
 remove all cause for future complications, have named as their Plenipotentiaries 
 for the purpose of concluding a Treaty of peace ; that is to say, His Majesty the 
 Emperor of China, Li Hung-chang, Senior Tutor to the Heir Apparent, Senior 
 Grand Secretary of State, Minister Superintendent of Trade for the Northern 
 Ports of China, Viceroy of the Province of Chihli, and Earl of the First Rank, 
 and Li Ching-fong, Ex-Minister of the Diplomatic Service, of the Second Official 
 Rank; 
 
 And His Majesty the Emperor of Japan, Count Ito Hirobumi, Junii, Grand 
 Cross of the Imperial Order of Paullownia, Minister President of State, and Vis- 
 count Mutsu Munemitsu, Junii, First Class of the Imperial Order of the Sacred 
 Treasure, Minister of State for Foreign Affairs ; 
 
 Who, after having exchanged their full powers, which were found to be 
 in good and proper form, have agreed to the following Articles : — 
 
 Article I, — Independence of Korea. — China recognizes definitely the full 
 and complete independence and autonomy of Korea, and in consequence the pay- 
 ment of tribute and the performance of ceremonies and formalities by Korea to 
 China, in derogation of such independence and autonomy, shall wholly cease 
 for the future. 
 
 Article II. — Cession of part of Ffingtien Province. — China cedes to 
 
 Japan in perpetuity and full sovereignty the following territories, together with 
 
 all fortifications, arsenals, and public property thereon : 
 
 * Text as printed in Rockhill, p. 14. Printed also in Customs, Vol. II, p. 590 ; Traites 
 et Conventions, p. 209; Hertslet, p. 362; Rccueil, p. 1; Am. Int. Law Journal, Supplement, 
 1907, p. 378. See Note 1 to this document, post, p. 24.
 
 NUMBER 1895/3 : APRIL 17, 1895 19 
 
 (a) The southern portion of the province of Fengtien, within the following 
 boundaries : — 
 
 The Hne of demarcation begins at the mouth of the River Yalu and ascends 
 that stream to the mouth of the River An-ping; from thence the line runs to 
 Feng-huang ; from thence to Haicheng ; from thence to Ying-kow, forming a line 
 which describes the southern portion of the territory. The places above named 
 are included in the ceded territory. When the line reaches the River Liao 
 at Ying-kow, it follows the course of that stream to its mouth where it termi- 
 nates. The mid-channel of the River Liao shall be taken as the line of demarca- 
 tion. 
 
 This cession also includes all islands appertaining or belonging to the 
 province of Fengtien, situated in the eastern portion of the Bay of Liao-tung and 
 in the northern part of the Yellow Sea. 
 
 (b) The island of Formosa, together with all islands appertaining or be- 
 longing to said island of Formosa. 
 
 (c) The Pescadores Group, that is to say, all islands lying between the 
 119th and 120th degrees of longitude east of Greenwich and the 23rd and 24th 
 degrees of north latitude. 
 
 Article III. — Delimitation of ceded territory. — The alignments of the 
 frontiers described in the preceding Article and shown on the annexed map,t 
 shall be subject to the verification and demarcation on the spot, by a Joint Com- 
 mission of Delimitation consisting of two or more Chinese and two or more 
 Japanese Delegates to be appointed immediately after the exchange of the ratifi- 
 cations of this Act. In case the boundaries laid down in this act are found to 
 be defective at any point, either on account of topography or in considera- 
 tion of good administration, it shall also be the duty of the Delimitation Com- 
 mission to rectify the same. 
 
 The Delimitation Commission will enter upon its duties as soon as possible 
 and will bring its labors to a conclusion within the period of one year after ap- 
 pointment. 
 
 The alignments laid down in this Act shall, however, be maintained until 
 the rectifications of the Delimitation Commission, if any are made, shall have 
 received the approval of the Governments of China and Japan. 
 
 Article IV. — War Indemnity to Japan. — China agrees to pay to Japan as 
 a war indemnity the sum of 200,000,000 Kuping Taels. The said sum is to be 
 paid in eight installments. The first installment of 50,000,000 Taels to be paid 
 within six months, and the second installment of 50,000,000 Taels to be paid 
 within twelve months after the exchange of the ratifications of this Act. The 
 remaining sum to be paid in six equal annual installments, as follows : The first 
 of such equal annual installments to be paid within two years ; the second within 
 three years ; the third within four years ; the fourth within five years ; the fifth 
 within six years, and the sixth within seven years, after the exchange of the 
 ratifications of this Act. Interest at the rate of 5 per centum per annum shall 
 
 i Hertslet notes that the map was not published. Article III of the treaty having been 
 suppressed by the terms of the convention of November 8, 1895 (No. 1895/10, post).
 
 20 CHINA TREATIES AND AGREEMENTS 
 
 begin to run on all unpaid portions of the said indemnity from the date the first 
 installment falls due. 
 
 China shall, however, have the right to pay by anticipation at any time any 
 or all of said installments. In case the whole amount of the said indemnity 
 is paid within three years after the exchange of the ratifications of the present 
 Act, all interest shall be waived and the interest for two years and a half or for 
 any less period if then already paid, shall be included as a part of the principal 
 amount of the indemnity. 
 
 Article V. — Inhabitants of ceded territory. — ^The inhabitants of the ter- 
 ritory ceded to Japan, who wish to take up their residence outside the ceded 
 districts shall be at liberty to sell their real property and retire. 
 
 For this purpose a period of two years from the date of the exchange of the 
 ratifications of the present Act, shall be granted. At the expiration of that 
 period those of the inhabitants who shall not have left such territories shall at 
 the option of Japan, be deemed to be Japanese subjects. 
 
 Each of the two Governments shall immediately upon the exchange of the 
 ratifications of the present Act, send one or more Commissioners to Formosa to 
 effect a final transfer of that Province and within the space of two months after 
 the exchange of the ratifications of this Act, such transfer shall be completed. 
 
 Article VI. — Treaty of commerce and navigation to be negotiated. — 
 All treaties between China and Japan having come to an end in consequence 
 of war, China engages immediately upon the exchange of the ratifications of this 
 Act, to appoint Plenipotentiaries to conclude, with the Japanese Plenipotentiaries, 
 a Treaty of Commerce and Navigation J and a Convention to regulate Frontier 
 Intercourse and Trade. The Treaties, Conventions, and Regulations now sub- 
 sisting between China and European Powers shall serve as a basis for the said 
 Treaty and Convention between China and Japan. From the date of the exchange 
 of the ratifications of this Act until the said Treaty and Convention are brought 
 into actual operation, the Japanese Government ; its officials ; commerce ; naviga- 
 tion; frontier intercourse and trade; industries; ships, and subjects, shall, in 
 every respect, be accorded by China most-favored-nation treatment. 
 
 China makes in addition the following concessions, to take effect six months 
 after the date of the present Act : 
 
 1st. — Opening of new localities in China to trade.§ — The following cities 
 towns, and ports, in addition to those already opened, shall be opened to the 
 trade, residence, industries, and manufactures of Japanese subjects, under the 
 same conditions and with the same privileges and facilities as exist at the pres- 
 ent open cities, towns, and ports of China. 
 
 (1) Shashih, in the province of Hupeh. 
 
 (2) Chungking, in the province of Szechuan. 
 
 (3) Suchow, in the province of Kiangsu. 
 
 (4) Hang-chow, in the province of Chekiang. 
 
 The Japanese Government shall have the right to station Consuls at any 
 or all of the above-named places. 
 
 ± For Treaty of commerce and navigation, concluded July 21, 1896, see No. 1896/4, f^ost. 
 
 § In connection with this article, see the protocol concerning Japanese Settlements, etc., 
 October 19, 1896 (No. 1896/6, post), and attached note giving the agreement for the estab- 
 lishment of a Japanese settlement at Shashi, August 18, 1898, at p. 92, post.
 
 NUMBER 1895/3: APRIL 17, 1895 21 
 
 2nd. — Navigation on Chinese inland waters. — Steam navigation for vessels 
 under the Japanese tiag tor the conveyance of passengers and cargo shall be 
 extended to the following places: 
 
 (1) On the upper Yangtsze River, from I-chang to Chung-king. 
 
 (2) On the Woo-sung River and the Canal, from Shanghai to Su-chow and 
 Hang-chow. The Rules and Regulations which now govern the navigation of 
 the inland waters of China by foreign vessels shall, so far as applicable, be 
 enforced in respect of the above-named routes until new Rules and Regulations 
 are conjointly agreed to. 
 
 3rd. — Renting warehouses. — Japanese subjects purchasing goods or produce 
 in the interior of China or transporting imported merchandise into the interior 
 of China, shall have the right temporarily to rent or hire warehouses for the 
 storage of the articles so purchased or transported, without the payment of any 
 taxes or exactions whatever. 
 
 4th. — Right to manufacture in open localities. — Japanese subjects shall be 
 free to engage in all kinds of manufacturing industries in all the open cities, 
 towns, and ports of China, and shall be at liberty to import into China all kinds 
 of machinery paying only the stipulated duties thereon. 
 
 All articles manufactured by Japanese subjects in China, shall in respect 
 of inland transit and internal taxes, duties, charges and exactions of all kinds 
 and also in respect of warehousing and storage facilities in the interior of China, 
 stand upon the same footing and enjoy the same privileges and exemptions as 
 merchandise imported by Japanese subjects into China. 
 
 In the event additional Rules and Regulations are necessary in connec- 
 tion with these concessions, they shall be embodied in the Treaty of Commerce 
 and Navigation provided for by this Article. 
 
 Article VII. — Evacuation of China. — Subject to the provisions of the 
 next succeeding Article, the evacuation of China by the armies of Japan, shall 
 be completely effected within three months after the exchange of the ratifications 
 of the present Act. 
 
 Article VIII. — Temporary military occupation of Wei-hai-wei. Its 
 evacuation. — As a guarantee of the faithful performance of the stipulations of 
 this Act, China consents to the temporary occupation by the military forces 
 of Japan, of Wei-hai-wei in the Province of Shantung. 
 
 Upon the payment of the first two installments of the war indemnity herein 
 stipulated for and the exchange of the ratifications of the Treaty of Commerce 
 and Navigation, the said place shall be evacuated by the Japanese forces, pro- 
 vided the Chinese Government consent to pledge, under suitable and sufficient 
 arrangements, the Customs Revenue of China as a security for the payment of 
 che principal and interest of the remaining installments of said indemnity. In 
 the event no such arrangements are concluded, such evacuation shall only take 
 place upon the payment of the final installment of said indemnity. 
 
 It is, however, expressly understood that no such evacuation shall take place 
 until after the exchange of the ratifications of the Treaty of Commerce and 
 Navrgation. 
 
 Article IX. — Prisoners of war. — Immediately upon the exchange of the
 
 22 CHINA TREATIES AND AGREEMENTS 
 
 ratifications of this Act, all prisoners of war then held shall be restored and 
 China undertakes not to ill-treat or punish prisoners of war so restored to her 
 by Japan. China also engages to at once release all Japanese subjects accused 
 of being military spies or charged with any other military ofifenses. China fur- 
 ther engages not to punish in any manner nor to allow to be punished, those 
 Chinese subjects who have in any manner been compromised in their relations 
 with the Japanese army during the war. 
 
 Article X. — Cessation of military operations. — All offensive military 
 operations shall cease upon the exchange of the ratifications of this Act. 
 
 Article XI. — The present Act shall be ratified by their Majesties the Em- 
 peror of China and the Emperor of Japan, and the ratifications shall be ex- 
 changed at Chefoo, on the 14th day of the 4th month of the 21st year of Kwang 
 Hsu, corresponding to the 8th day of the 5th month of the 28th year of Meiji. 
 (May 8th, 1895.) || 
 
 In witness whereof, the respective Plenipotentiaries have signed the same 
 and have affixed thereto the seal of their arms. 
 
 Done at Shimohoseki, in duplicate, this 23d day of the 3d month of the 
 21st year of Kwang Hsii, corresponding to the 17th day of the 4th month of the 
 28th year of Meiji. (April 17th, 1895.) 
 
 Li Hung Chang, [l. s.] 
 
 Plenipotentiary of His Majesty the Emperor of China, 
 Senior Tutor of the Heir Apparent, Senior Grand 
 Secretary of State, Minister Superintendent of 
 Trade for the North Ports of China, Viceroy of the 
 Province of Chihli, and Earl of the First Rank. 
 
 Li Ching Fong. 
 Plenipotentiary of His Majesty the Emperor of China, 
 Ex-Minister of the Diplomatic Service, of the Sec- 
 ond OiHcial Rank. 
 
 Count Ito Hirobumi. [l. s.] 
 Junii, Grand Cross of the Imperial Order of Paul- 
 lozvnia. Minister President of State, Plenipotentiary 
 of His Majesty the Emperor of Japan. 
 
 Viscount Mutsu Munemitsu. [l. s.] 
 Junii, First Class of the Imperial Order of the Sacred 
 Treasure, Minister of State for Foreign Affairs, 
 Plenipotentiary of His Majesty the Emperor of 
 Japan. 
 
 SEPARATE articles. 
 
 Article I. — Military force to occupy Wei-hai-wei. — The Japanese military 
 forces which are, under Article VIII of the treaty of peace signed this day, to 
 temporarily occupy Wei-hai-wei, shall not exceed one Brigade and from the date 
 of the exchange of the ratifications of the said treaty of peace, China shall pay 
 
 II Ratifications exchanged at Chefoo, May 8, 1895.
 
 NUMBER 1895/3: APRIL 17, 1895 23 
 
 annually, one-fourth of the amount of the expenses of such temporary occupation 
 that is to say, at the rate of 500,000 Kuping Taels per annum. 
 
 Article II. — Territory occupied at Wei-hai-wei. — The territory tempo- 
 rarily occupied at Wei-hai-wei shall comprise the island of Liu-kung and a belt of 
 land 5 Japanese Ri wide along the entire coast line of the Bay of Wei-hai-wei. 
 
 No Chinese troops shall be permitted to approach or occupy any place within 
 a zone of 5 Japanese Ri wide beyond the boundaries of the occupied territory. 
 
 Article III. — Chinese to retain civil administration. — The civil admin- 
 istration of the occupied territory shall remain in the hands of the Chinese 
 Authorities. But such Authorities shall at all times be obliged to conform to 
 the orders which the Commander of the Japanese Army of occupation may deem 
 it necessary to give in the interest of the health, maintenance, safety, distribu- 
 tion *or discipline of the Troops. 
 
 All military offences committed within the occupied territory shall be sub- 
 ject to the jurisdiction of the Japanese Military Authorities. 
 
 The foregoing Separate Articles shall have the same force, value and effect 
 as if they had been, word for word, inserted in the Treaty of Peace signed this 
 day. 
 
 In witness whereof, the respective Plenipotentiaries have signed the same 
 and have affixed thereto the seal of their arms. 
 
 Done at Shimonoseki, in duplicate, this 23rd day of the third month of the 
 21st year of Kuang Hsii, corresponding to the 17th day of the 4th month of 
 the 28th year of Meiji. (April 17th, 1895.) 
 
 (Signatures (4) and titles, same as in Treaty.) 
 
 CONVENTION TO PROLONG ARMISTICE 
 
 The undersigned (insert here names and titles of the 2 Chinese Pleni- 
 potentiaries, as in Preamble of Treaty) Plenipotentiaries of His Majesty the 
 Emperor of China, and (insert here names and titles of 2 Japanese Plenipoten- 
 tiaries as in preamble of Treaty) Plenipotentiaries of His Majesty the Emperor 
 of Japan, having concluded a Treaty of Peace, have, in order to provide for the 
 peaceful exchange of the ratifications of said Treaty, agreed upon and signed 
 the following Articles : 
 
 I. — Armistice. — The Convention of Armistice concluded on the 5th day of 
 the 3rd month of the 21st year of Kwang Hsii, corresponding to the 30th day of 
 the 3d month of the 28 year of Meiji,^ is prolonged for the period of 21 days from 
 this date. 
 
 II. — The armistice, which is prolonged by this Convention, shall termi- 
 nate, without notice on either side, at midnight on the 14th day of the 4th month 
 of the 21st year of Kwang Hsii, corresponding to the 8th day of the 5th month of 
 the 28th year of Meiji. The rejection in the meantime, however, of the said 
 Treaty of Peace, by either High Contracting Party, shall have the eflfect of at 
 once terminating this Armistice without previous notice. 
 
 ^ See Note 1 to this document, post, p. 24.
 
 24 CHINA TREATIES AND AGREEMENTS 
 
 In witness whereof the Plenipotentiaries of China and Japan have hereunto 
 set their hands and affixed their seal. 
 
 Done at Shimonoseki, this 23rd day of the 3rd month of the 21st year of 
 Kuang Hsu, corresponding to the 17th day of the 4th month of the 28th year 
 of Meiji. (April 17th, 1895.) 
 
 (Signatures (4) and titles, same as in Treaty.) 
 
 Note 1. 
 
 In connection with this treaty, see the Convention for the retrocession of the 
 southern portion of Fengtien, November 8, 1895 (No. 1895/10, post). See also the treaty 
 of alliance between Japan and Korea, signed at Seoul, August 26, 1894, of which the ■fol- 
 lowing translation is printed in Rockhill, p. 429: 
 
 Treaty of Alliance between Korea and Japan. — August 26, 1894, 
 
 " In view of the fact that on the 25th of July, 1894, the Korean Government entrusted 
 His Imperial Majesty's Envoy Extraordinary and Minister Plenipotentiary at Soul, Korea, 
 with the expulsion, on their behalf, of Chinese soldiers from Korean territory, the Gov- 
 ernments of Japan and Korea have been placed in a situation to give mutual assistance both 
 offensive and defensive. Consequently the undersigned Plenipotentiaries, duly authorized 
 by their respective Governments, have, with a view of defining the fact and of securing 
 in the premises concerted action on the part of the two countries, agreed to the following 
 Articles : — 
 
 "Article I. — The object of the alliance is to maintain the independence of Korea on 
 a firm footing and to promote the respective interests of both Japan and Korea by expelling 
 Chinese soldiers from Korean territory. 
 
 " Article II. — Japan will undertake all warlike operations against China, both offen- 
 sive and defensive, while Korea will undertake to give every possible facility to Japanese 
 soldiers regarding their movements and supply of provisions. 
 
 " Article III. — This treaty shall cease and determine at the conclusion of a treaty of 
 peace with China. 
 
 " In witness whereof the Plenipotentiaries of the two countries have signed the treaty 
 and hereunto affixed their seals. 
 
 " Done at Soul this 26th day of August, 1894. 
 
 " Keisuke Otori, 
 " H. I. J. M.'s Envoy Extraordinary and 
 Minister Plenipotentiary. 
 
 . " Kim In Shiouku, 
 " H. K. M.'s Minister for Foreign Affairs." 
 
 Note 2. 
 
 The English version of this armistice, signed at Shimonoseki, March 30, 1895, is given 
 as follows in Customs, Vol. II, p. 599 : 
 
 Convention of Armistice between Japan and China, — March 30, 1895. 
 
 " His Majesty the Emperor of Japan having, in view of the untoward event which tem- 
 porarily interrupted the depending negotiations for peace, cornmanded His Plenipotentiaries 
 to consent to a temporary Armistice, the undersigned, Count Ito Hirobumi, Junii, Grand 
 Cross of the Imperial Order of Paullownia, Minister President of State, and Viscount Mutsu 
 Munemitsu, Junii, First Class of the Imperial Order of the Sacred Treasure, Minister of 
 State for Foreign Affairs, the Plenipotentiaries of His Majesty the Emperor of Japan; and 
 Li Hung-chang, Plenipotentiary of His Majesty the Emperor of China, Senior Tutor to 
 the Heir Apparent, Senior Grand Secretary of State, Minister Superintendent of Trade for 
 the Northern Ports of China, Viceroy of the province of Chihli, and Earl of the First Rank, 
 have concluded the following Convention of Armistice: — 
 
 " Article I. — The Imperial Governments of Japan and China agree to enforce an 
 Armistice between their respective military and naval forces, in the provinces of Feng- 
 tien, Chihli, and Shantung, subject to the provisions contained in the following Articles. 
 
 " Article II. — The forces affected by this Armistice shall have the right to maintain the
 
 NUMBER 1895/3: APRIL 17, 1895: NOTES 25 
 
 positions respectively occupied by them at the time hostilities are actually suspended, but 
 they shall not under any circumstances during the existence of this Armistice advance 
 beyond such positions. 
 
 "Article 111. — The two Governments engage during the existence of this Convention 
 not to extend, perfect, or advance their attackmg works, or to reinforce or in anywise to 
 strengthen, either for offensive or defensive operations, their confronting military lines. 
 But this engagement shall not prevent either Government from making any new distribu- 
 tion or arrangment of troops not intended to augment or strengthen the armies now 
 actually in the field and engaged in active military operations. 
 
 " Article IV. — The movement of troops and the transportation of military supplies 
 and all other contraband of war by sea shall be subject to the ordinary rules of war, and 
 shall consequently be liable to hostile capture. 
 
 " Article V. — This Armistice shall be enforced by the Imperial Governments of Japan 
 and China for the period of 21 days from the date of the signature of this Convention. 
 
 " In those localities occupied by the troops of the two Governments to which there is no 
 telegraphic communication, the quickest possible means shall be employed in issuing the orders 
 for the Armistice, and the respective Commanders of the two countries shall, upon receipt of 
 such orders, announce the fact to each other and take steps to enforce the Armistice. 
 
 " Article VI. — This Armistice shall terminate, without notice on either side, at mid- 
 day on the 20th day of the 4th month of the 28th year of Meijt, corresponding to the 26th 
 day of the 3rd month of the 21st year of Kuang Hsij. If in the meantime the depending 
 negotiations for peace are broken off, this Armistice shall in that case terminate at the same 
 time such negotiations cease. 
 
 " In witness whereof the Plenipotentiaries of Japan and China have hereunto set their 
 hands and affixed their seals. 
 
 " Done at Shimonoseki, Japan, this 30th day of the 3rd month of the 28th year of Meiji, 
 corresponding to the 5th day of the 3rd month of the 21st year of Ku-^^ng Hsu. 
 
 " Count Hirobumi Ito, [l. s.] 
 
 , Junii, Grand Cross of the Imperial 
 Order of Paullownia, Minister 
 President of State, Plenipotentiary 
 of His Majesty the Emperor of 
 Japan. 
 " Viscount Mutsu Munemitsu, [l. s] 
 
 Junii, First Class of the Imperial Order 
 of the Sacred Treasure, Minister of 
 State for Foreign Affairs, Pleni- 
 potentiary of His Majesty the Em- 
 peror of Japan. 
 " Li Hung-chang, [l. s.] 
 
 Plenipotentiary of His Majesty the 
 Emperor of China, Senior Tutor 
 to the Heir Apparent, Senior Grand 
 Secretay of State, Minister Super- 
 intendent of Trade for the North- 
 ern Ports of China, Viceroy of the 
 province of Chihli, and Earl of 
 the First Rank."
 
 26 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1895/4. 
 
 FRANCE AND CHINA. 
 
 Convention complementary to the Convention for the delimitation of the frontier 
 between Tonkin and China, of June 26, 1887 * — June 20, 1895. 
 
 The Commissioners named by the two Governments to establish the last 
 portion of the frontier between China and Tonkin (from the Red River to the 
 Mekong), having terminated their labors, — 
 
 Mr. Auguste Gerard, Minister Plenipotentiary, Envoy Extraordinary of the 
 French Republic in China, Officer of the Legion of Honor, Grand-Cross of the 
 Order of the Independence of Montenegro, Grand Officer of the Royal Order of 
 Charles III of Spain, Grand Officer of the Royal Order of the Crown of Italy, 
 etc., of the one part ; and 
 
 His Highness Prince Ch'ing, Prince of the First Rank, President of the 
 Tsungli-Yamen, etc. ; and His Excellency Siu Yong-yi, Member of the Tsungli- 
 Yamen and of the Grand Council of the Empire, Vice-President (Left-hand) of 
 the Ministry of the Interior, etc., of the other part ; 
 
 Acting in the name of their respective Governments, and to that end pos- 
 sessing full powers which they have, on conmiunicating them, found to be in 
 good and due form, have decided to set down in the present document the fol- 
 lowing provisions with a view to rectifying and completing the Convention 
 signed at Peking, June 26th, 1887,t the minutes and the maps that have been 
 drawn up and signed by the French and Chinese Commissioners teing now and 
 hereafter approved. 
 
 Article I. — The course of the frontier between Yunnan and Annam (map, 
 second section), from point R to point S, is modified as follows: — The frontier 
 line leaves point R, runs north-eastward to Man-mei, then from Man-mei in a 
 west-and-east direction to Nan-na on the Ts'ing-chouei-ho, leaving Man-mei to 
 Annam, and the territories of Mong-t'ong-chang-ts'ouen, Mong-t'ong-chan, 
 Mong-t'ong-tchong-ts'ouen, and Mong-t'ong-hia-ts'ouen to China. 
 
 Article II. — The course of the fifth section, between Long-po-tchai and 
 the Black River, is modified as follows: — From Long-po-tchai (fifth section), the 
 common frontier of Yunnan and Annam runs up the course of the Long-po-ho, 
 to its confluence with the Hong-yai-ho, at the point marked A on the map. From 
 point A, it follows a generally north-north-westerly direction and the watershed, 
 to the point where the P'ing-ho takes its source. From that point the frontier 
 
 * Translation from French text as printed in Hertslet, p. 321. French text printed 
 also in Customs, Vol. I, p. 942; Reinach, p. 328. 
 
 In connection with this convention, see also the Anglo-Chinese Convention relative 
 to Burmah, March 1, 1894 (No. 1894/1, ante), particularly Article 5; Anglo-Chinese agree- 
 ment of February 4, 1897 (No. 1897/1, post) ; and Anglo-French declaration of January 15, 
 1896 (No. 1896/1, post), particularly Article 4. 
 
 t For the text of that convention, see Hertslet, p. 314.
 
 NUMBER 1895/4: JUNE 20, 1895 27 
 
 follows the course of the P'ing-ho, then that of the Mou-k'i-ho to its confluence 
 with the Ta-pao-ho, which it follows to its confluence with the Nan-kong-ho, 
 then the course of the Nan-kong-ho to its confluence with the Non-na-ho. The 
 frontier then follows up the course of the Pa-pao-ho to its confluence with the 
 Kouang-sse-ho, then the course of the Kouang-sse-ho, and follows the water- 
 shed to the confluence of the Nam-la-pi and the Nam-la-ho, and lastly the Nam- 
 la-ho to its confluence with the Black River, then the middle of the Black 
 River to the Nam-nap or Nan-ma-ho. 
 
 Article III. — The common frontier of Yunnan and Annam, between the 
 Black River (at its confluence with the Nam-nap) and the Mekong, is laid down 
 as follows : — From the confluence of the Black River and the Nam-nap, the 
 frontier follows the course of the Nam-nap to its source, then in a south- 
 westerly and westerly direction the watershed to the sources of the Nam-kang 
 and the Nam-wou. From the sources of the Nam-wou the frontier follows the 
 watershed between the basin of the Nam-wou and the basin of the Nam-la, 
 leaving to China, on the west, Ban-noi, I-pang, I-wou, and the Six Tea Moun- 
 tains, and to Annam, on the east, Mong-wou, Wou-te, and the Confederation 
 of the Hua-panh-ha-tang-hoc. The frontier follows a north-and-south direction, 
 south-east to the sources of the Nan-nuo-ho, then in a north-north-easterly direc- 
 tion along the watershed it skirts the valleys of the Nam-ouo-ho and the left-hand 
 affluents of the Nam-la, to the confluence of the Mekong and the Nam-la, 
 north-west of Muong-poung. The territory of Muong-mang and of Muong 
 jouen is left to China. As for the territory of the Eight Salt Springs (Pa-fa- 
 tchai), it remains assigned to Annam. 
 
 Article IV. — The agents, commissioners or authorities designated by the 
 two Governments will be entrusted with the running of the boundary-line, in 
 conformity with the maps drawn up and signed by the Delimitation Commission, 
 and with the above line. 
 
 Article V. — The provisions concerning delimitation, between France and 
 China, not modified by the present document, remain in full force. 
 
 The present Complementary Convention, as also the Delimitation Conven- 
 tion of June 26, 1887, will be ratified forthwith by His Majesty the Emperor of 
 China, and after it has been ratified by the President of the French Republic, 
 the exchange of ratifications will take place at Peking with as little delay as 
 possible. $ 
 
 Done at Peking in four copies, June 20, 1895, corresponding to the 28th 
 day of the 5th month of the 21st year of Kuang Hsii. 
 
 [l. s.] (Sgd.) A. Gerard 
 
 [l. s.] (Sgd.) Ch'ing. 
 
 [l. s.] (Sgd.) Siu. 
 
 t Ratifications exchanged at Peking, August 7, 1896.
 
 28 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1895/5. 
 
 FRANCE AND CHINA. 
 
 Additional Convention to the Supplementary Commercial Conventioii of June 26, 
 
 1887^— June 20, 1895. 
 
 The President of the French RepubHc and His Majesty the Emperor of 
 China, being desirous of encouraging and extending along the Sino-Annamite 
 frontier, henceforth defined as far as the Mekong.f the extension of commercial 
 relations between the two countries and of insuring the execution of the treaty of 
 commerce signed at Tientsin, April 25, 1886, as well as of the Supplementary 
 Convention, signed at Peking, June 26, 1887, have decided to conclude an Addi- 
 tional Convention, containing several new provisions and modifying certain of 
 the provisions included in the previous documents. 
 
 For this purpose the two High Contracting Parties have named as their 
 respective Plenipotentiaries, to wit : 
 
 The President of the French Republic, M. Auguste Gerard, Minister Pleni- 
 potentiary, Envoy Extraordinary of the French Republic in China, Officer of the 
 Legion of Honor, etc., etc., and His Majesty the Emperor of China, His High- 
 ness Prince K'ing, Prince of the first rank. President of the Tsung-li Yamen, 
 etc., etc., and His Excellency Hsii Yung-i, member of the Tsung-li Yamen and 
 of the Grand Council of the Empire, etc., etc. 
 
 Who having communicated their full powers, which have been recognized as 
 in good and due form, have agreed on the following articles : 
 
 Article I. — Consular agent at Tong-hing. — It is agreed, so as to insure 
 the policing of the frontier, that the French Government will have the right 
 of maintaining an agent of the Consular order at Tong-hing opposite Monkay 
 on the frontier of Kwang-tung. 
 
 A further regulation will determine the conditions under which should be 
 exercised, by agreement between the French and Chinese authorities, the mutual 
 police of the Sino-Annamite frontier.^ 
 
 Article II. — Lung-chou, Meng-tse, and Hok'ou opened to trade. — Article 
 n of the Additional Convention, signed at Peking, June 26th, 1887, is modified 
 and completed as follows : 
 
 It is agreed between the High Contracting Parties that the town of Lung- 
 chou in Kwang-si and that of Meng-tse in Yiin-nan are open to Franco-Annamite 
 commerce. It is furthermore understood that the locality open to commerce on 
 the river route of Lao-kay to Meng-tse will no longer be Man-hao, but Ho-k'ou, 
 
 * Translation, as given in RockhUl, p. 21, from the French text as printed in Doc. 
 Dipt., Chine. 1894-1898, p. 16. Printed also in B. & F. State Papers, vol. 87, p. 525; Customs. 
 Vol. I, p. 937; Hertslet, p. 323; Rectieil, p. 19; Rcinach, p. 331. 
 
 t This was done by the complementary convention of June 20, 1895, to the Convention 
 for the boundary delimitation between Tongking and China, signed June 26, 1887 (No. 
 1895/4, ante.) 
 
 t See Note 1 to this document, post, p. 7)2.
 
 NUMBER 1895/5 : JUNE 20, 1895 29 
 
 and that the French Government shall have the right of maintaining at Ho- 
 k'ou an Agent under the Consul at Meng-tse, at the same time the Chinese 
 Government will keep a Customs agent there. 
 
 Article III. — Ssu-mao opened to trade. — It is agreed that the town of Ssu- 
 mao in Yiin-nan shall be open to Franco-Annamite commerce, like Lung-chou 
 and Meng-tse, and that the French Government will have the right, as in the 
 other open ports, of maintaining a Consul there, at the same time the Chinese 
 Government can keep a Customs agent. 
 
 The local authorities will exert themselves to facilitate the installation of the 
 French Consul in a suitable residence. 
 
 Frenchmen and French proteges may establish themselves at Ssu-mao under 
 conditions provided for by Articles VII, X, XI, XII, and others of the Treaty 
 of June 27, 1858; as well as by Article III of the Convention of April 25, 1886. 
 Goods destined for China can be transported by the rivers, particularly the 
 Lo-so and the Mekong as well as by land routes, and particularly by the official 
 road, leading either from Mong-le, or from I-pang to Ssu-mao and P'u-erh, the 
 duties which these goods will be subject to being paid at Ssu-mao. 
 
 Article IV. — Transit of goods across Chinese-Annam frontier. Regu- 
 lations. — Article IX of the Commercial Convention of April 25, 1886, is modi- 
 fied as follows : — 
 
 (1) Chinese goods in transit from one or the other of the four towns open 
 to commerce on the frontier, Lung-chou, Meng-tse, Ssu-mao and Ho-k'ou, in 
 passing through Annam, will pay, on leaving, duties reduced by four-tenths. 
 A special certificate will be delivered setting forth the payment of this duty, and 
 destined to accompany the goods. When they have come to the other town, they 
 shall be exempt from the payment of import duty. 
 
 (2) Chinese goods exported from the four above-named localities and 
 transported to Chinese maritime or river ports, open to commerce, shall pay on 
 passing the frontier export duty reduced by four-tenths. A special certificate 
 will be delivered setting forth the payment of this duty, and destined to ac- 
 company the goods. When they shall arrive at one of the maritime or river 
 ports open to commerce, they shall pay the half re-importation duty in con- 
 formity with the general rule for all goods of like nature in the maritime or river 
 ports open to commerce. 
 
 (3) Chinese goods transported from Chinese maritime or river ports open 
 to commerce, by way of Annam, towards the four above named localities, 
 shall pay on crossing (the frontier) full duty. A special certificate will be 
 delivered, setting forth the payment of this duty, and destined to accompany 
 the goods. When they shall arrive at one of the frontier customs stations they 
 shall pay on entry half re-importation duty based on the reduction by four-tenths. 
 
 (4) The above mentioned Chinese goods, when accompanied by the special 
 certificate above mentioned, shall, before passing through the customs on ex- 
 portation, or after passing through the customs on re-importation, be subject to 
 the regulations governing native Chinese goods. 
 
 Article V.— Mining in Yunnan, Kwang-si, and Kwang-tung.§— It is un- 
 § See Note 2 to this document, post, p. 34.
 
 30 CHINA TREATIES AND AGREEMENTS 
 
 derstood that China, for the exploitation of its mines in the provinces of Yiin- 
 nan, Kwang-si, and Kwang-tung, may call upon, in the first instance, French 
 manufacturers and engineers, the exploitation remaining nevertheless subject to 
 the rules proclaimed by the Imperial Government as regarding national industries. 
 It is agreed that railways either those already in existence, or those pro- 
 jected in Annam may, after mutual agreement, and under conditions to be defined, 
 be continued on Chinese territory. 
 
 Article VI. — Extension of telegraph lines. — Article II of the Telegraphic 
 Convention between France and China, signed at Chefoo, December 1, 1888, is 
 completed as follows : — 
 
 D. — A junction shall be made between the Secondary Prefecture of Ssu- 
 mao and Annam by two stations, which shall be Ssu-mao in China and Muang- 
 ha-hin (Muong-ngay-neua) in Annam, midway between Lai-chou and Luang 
 Prabang. 
 
 The tarifif shall be fixed in conformity with Article VI of the Telegraphic 
 Convention of Chefoo. 
 
 Article VII. — Provisions of Convention not to extend beyond localities 
 named. — It is agreed that the commercial stipulations contained in the pres- 
 ent Convention being of a special nature, the result of mutual concessions 
 resulting from the needs of the relations between Lung-chou, Ho-k'ou, Meng-tse, 
 Ssu-mao, and Annam, the benefits resulting therefrom shall not be appealed to by 
 the subjects and the proteges of the two High Contracting Parties except at 
 the localities as w^ell as on the river and land routes of the frontier here set 
 forth. 
 
 Article VIII. — The present stipulations shall come into force as if they 
 were inserted in the text of the Additional Convention of June 26, 1887. 
 
 Article IX. — Former treaties remain in force. — The terms of former 
 Treaties, Agreements and Conventions between France and China, not modified 
 by the present Treaty shall remain in full force. 
 
 The present Complementary Convention shall be ratified at once by His 
 Majesty the Emperor of China, and after it shall have been ratified by the Presi- 
 dent of the French Republic, the exchange of ratifications shall take place at 
 Peking with the least delay possible. 
 
 Done at Peking in four copies 20th June 1895, corresponding to the 28th 
 day of the 5th moon of the 21st year Kwang-hsii. 
 
 (Signed) A. Gerard. 
 
 (Signed) Ching. 
 
 (Signed) Hsu.
 
 NUMBER 1895/5 : JUNE 20, 1895 31 
 
 Identic Note Explanatory of the Provisions of the Commercial Convention be- 
 tween France and China of June 20, 1895, and of the Railway Contract of 
 June 5, 1896. \\ 
 
 The Tsung-li Yamen to Mr. Gerard, Minister of the French Republic 
 
 AT Peking. 
 
 13th Day, 5th Moon, 23d Year Kuang-hsu (12 June 1897). 
 
 The Imperial Government of China and the Government of the French 
 RepubHc, animated with a mutual and equal desire to facilitate and develop, in 
 conformity with treaties and conventions, and as evidence of their feelings of 
 concord, neighborly and commercial relations between China and Annam, have 
 striven by an interchange of views and an agreement between our Yamen and 
 the Legation of the Republic, to define more precisely and clearly the carrying out 
 of certain provisions of the convention made between China and France. 
 
 With this object in view, our Yamen and the Legation of the Republic have 
 agreed on the three following formulas : 
 
 1°. It is understood that in compliance with Article V of the Commercial 
 Convention of June 20, 1895, as well as the contract of June 5, 1896, between 
 the Compagnie de Fives-Lille and the official Administration of the Dong-dang 
 and Lung-chou Railroad, and the despatches exchanged the 2d and 25th June 
 of the same year between our Yamen and the Legation of the Republic, if 
 the Compagnie de Fives-Lille has satisfactorily succeeded, and as soon as 
 the line from Dong-dang to Lung-chou shall be finished, a request will of 
 necessity be made it to continue the said line in the direction of Nan-ning and 
 Pe-se. 
 
 2°. It is understood, in compliance with Article V of the Complementary 
 Commercial Convention of June 20, 1895, that in the three southern border 
 provinces, Kuang-tung, Kuang-si and Yiin-nan, the Chinese Government may 
 call upon French engineers and manufacturers for working mines. 
 
 3°. It is understood that China shall undertake works for the improvement 
 of navigation on the upper Red River, and that in the interest of commerce she 
 will grade and improve the route from Ho-k'ou to Man-hao and Meng-tse 
 as far as the provincial capital. It is understood furthermore that the right will 
 be conceded to construct a railway communication between the Annam frontier 
 and the provincial capital, either by way of the Pe-se river region, or by that of 
 the upper Red River; the (preliminary) studies and the carrying out by 
 China to be done gradually. 
 
 These formulas are incorporated in the present exchange of despatches as 
 evidence. Our Yamen and the Legation of the Republic, faithful interpreters of 
 the mutual opinion of the two Governments, agree that these formulas are in- 
 tended to define certain provisions of the conventions previously concluded be- 
 ll Translation. Documents Diplomatiques, Chine, 1894-1898, p. 39. An identic note 
 bearing the same date was sent to the Tsung-li Yamen by Mr. Gerard. See ibid., p. 38.
 
 32 CHINA TREATIES AND AGREEMENTS 
 
 tween the two Governments, and to insure their effectual carrying out in a spirit 
 of mutual confidence and good will, and in the equal interest of the two countries. 
 (Follow the signatures of the President and the Members of the Tsung-li 
 Yamen. ) 
 
 Note 1. 
 
 The Regulations for the carrying out of a mixed police service on the Sino-Annamite 
 frontier, of which a translation follows, were agreed upon between the Tsung-li Yamen and 
 the French Legation at Peking, May 7, 1896: 
 
 Regulations for Mixed Police on Sino-Annamite Frontier.— May 7, 1896. 
 
 " Section 1. — uMixed Commissions for the policing of the Sino-Annamite frontier. 
 
 "Article I. — The whole of the Sino-Annamite frontier is divided, for the purposes of 
 the mixed police service to be maintained by the Chinese Government and the Government 
 of the Protectorate of Annam, into three sections, as follows : 
 
 1st section: The frontier between the Province of Kwangtung, and Annam; 
 2nd section : The frontier between the Province of Kwangsi, and Annam ; 
 3rd section : The frontier between the Province of Yunnan, and Annam. 
 " Article II. — In each of the sections of frontier specified in the preceding article, the 
 police service is directed by a Mixed Commission composed of one French Commissioner 
 and one Chinese Commissioner. 
 
 " Article III. — The French Commissioner has authority over the officers and func- 
 tionaries of the region of Annam corresponding to the section of frontier placed under 
 his supervision, in so far as concerns the carrying out of the police service. He is directly 
 subordinate to the Governor General of Indo-China. 
 
 " The Chinese Commissioner has authority over the officers and functionaries of the 
 Chinese Province corresponding to the section of frontier placed under his supervision, in 
 so far as concerns the carrying out of the police service. He is directly subordinate to the 
 Viceroy and the Governor of the province. 
 
 " Article IV. — The places of residence of the French Commissioners are as follows : 
 1st frontier section: IMoncay ; 
 2nd frontier section : Langson ; 
 3rd frontier section : Laokay. 
 " The places of residence of the Chinese Commissioners are as follows : 
 1st frontier section: Tong-hing; 
 2nd frontier section: P'ing-siang; 
 3rd frontier section : Ho-k'eou. 
 " Article V. — The residences of the French and Chinese Commissioners who constitute 
 a single Mixed Commission will be connected by a telephone or telegraph line. 
 
 " Section 2. — Means of policing the frontier. 
 
 " Article VI. — The policing of the frontier is carried out by means of double military 
 posts made up of the regular troops of the two countries. 
 
 " Article VII. — Each double military post comprises a French post and a Chinese post, 
 situated on either side of the frontier, upon the same route {voie de penetration) . 
 
 " In places where the configuration of the country is such as not to permit of the estab- 
 lishment of encampments, they may be so established as to confront each other at some dis- 
 tance to the one side or the other (pourront etre ctablis de facon a se faire face de plus loin 
 sur le cote, a droite on a gauche), taking care always that they should be within sight of each 
 other and in cooperation. 
 
 "Article VIII. — Each French or Chinese military post comprises an effective minimum 
 of thirty regular soldiers under arms. It is commanded by an officer. 
 
 "Article TX. — At each double military post, the French and the Chinese post will as 
 soon as possible be connected by a telephone or telegraph line. 
 
 "Article X. — The double military posts are established at the following passages: 
 1st. Moncay, Tong-hing; 
 2nd. Pac-si, Li-tsie (Ly-tien) ;
 
 NUMBER 1895/5 : JUNE 20, 1895 : NOTES 33 
 
 3rd. Hoang-mo, Leng-tong (Lang-dong) ; 
 
 4th. Chi-ma, Che-ma (Chi-ma) ; 
 
 5th. Dong-dang, Nan-kouan (Xam-quan) ; 
 
 6th. Bi-nhi, P'ing-eul (Bi-nhi) ; 
 
 7th. Na-lan, Pou-kiu (Bocup); 
 
 8th. Ta-lung, Chouei-k'eou-kouan (Thuy-kau) ; 
 
 9th. Ly-ban, Li-pan (Ly-pan) ; 
 10th. Soc-giang, P'ing-meng (Binh-mang). 
 " Article XI. — The number and the situation of double military posts, as provided in the 
 preceding article, may be altered by mutual agreement, after previous consultation between 
 the French Government and the Chinese Government. They will remain for the time being 
 undetermined, on the frontier of Yunnan. 
 
 " Section 3. — Carrying out of the police service on the frontier. 
 
 " Article XII. — In conformity with the provisions of the treaty concluded at Tientsin 
 between France and China, June 9, 1885, Frenchmen or French proteges and foreign resi- 
 dents of Tonkin who should wish to cross the frontier in order to visit China may do 
 so only after having first provided themselves with passports delivered by the Chinese 
 frontier authorities upon the request of the French authorities. For Chinese subjects, an 
 authorization delivered by the imperial frontier authorities will suffice. 
 
 "The Chinese subjects who may desire to go from China into Tonkin by land must 
 be provided with regular passports delivered by the French authorities upon the request of 
 the imperial authorities. 
 
 "Article XIII. — The only points of passage authorized for the people (ressortissants) 
 of the two countries are, without exception, pending further regulations, the ten passages 
 provided in Article X of the present Regulations. 
 
 " The authorizations and passports must bear an indication of the passages by which 
 their holders are authorized to cross the frontier. 
 
 " Article XIV. — On passing the double military posts, the authorizations and passports 
 will be visaed by the commander of the French post, and examined by the commander of 
 the Chinese post, to whom they must be presented. 
 
 "Article XV. — In derogation from Articles XII, XIII and XIV of the present Regula- 
 tions, permanent authorizations for crossing the frontier may be granted, by arrange- 
 ment between the local authoritites of the two countries and the commanders of the double 
 military posts, to the people (ressortissants) of the two countries and to the foreign 
 residents of Tonkin who, by the requirements of their profession or trade, or of an agri- 
 cultural enterprise, are obliged to stay on one and the other side of the frontier alternately. 
 
 "Article XVI. — The permanent authorizations provided for in the preceding article 
 will be renewable annually, from the 1st to the 10th of January of the French year, but 
 notice to that effect must be given a month in advance to the Chinese authorities, who 
 will inform those concerned. 
 
 "Article XVII. — The perrnanent authorizations must be registered by the authorities 
 of the two countries who may have delivered them, and they will report them to the Com- 
 missioner of their nationality in order that he may keep a record of them in his archives. 
 
 " Section 4. — Carrying out of the police service vinth respect to gatherings of armed bands. 
 
 "Article XVIII. — Whenever gatherings of pirates may be reported on the territory 
 of Annam, the commander of the French post that may be informed of it must, at each 
 double military post, immediately warn the commander of the Chinese post and the French 
 commissioner in charge of the frontier section in which his post is situated. 
 
 " Article XIX. — Whenever gatherings of pirates may be reported on the territory of 
 China, the commander of the Chinese post that may be informed of it must, at each 
 double military post, immediately warn the commander of the French post and the Chinese 
 Commissioner in charge of the frontier section in which his post is situated. 
 
 "Article XX. — The two Commissioners, after a mutual understanding, will each in 
 what concerns him give the necessary orders in regard to the police measures to be taken 
 against the gatherings reported. 
 
 "In each double military post, the commander of the French post and the commander 
 of the Chinese post must communicate to each other the instructions or orders received 
 from the members of the Mixed Commission. 
 
 "Article XXI. — In cases of emergency, the commander of the French post and the 
 commander of the Chinese post, at each double military post, will arrange between them- 
 selves for the police measures to be taken and wUl report these measures to their respective 
 Commissioners. 
 
 "Article XXII. — If pirates, pursued by French troops in Annam, cross the frontier and 
 pass into Chinese territory, word thereof will be given by the near-by French military 
 post to the Chinese military post, or by the commander of the French troops engaged to
 
 34 CHINA TREATIES AND AGREEMENTS 
 
 the Chinese miHtary chief in the neighborhood, in order that the pursuit may be continued 
 without delay by the Chinese troops, and the pirates be captured. 
 
 "In case pirates should cross the frontier in order to pass from China into Annam, the 
 Chinese frontier posts or the Commanders of the Chinese troops engaged would be under 
 the obligation to give notice thereof as soon as possible to the near-by French frontier posts 
 or the Commanders of the French troops in the neighborhood, in order that the pursuit 
 might be continued without delay by the French troops, and the pirates be captured. 
 
 "Any negligence or any delay occurring in the pursuit which should thus be con- 
 tinued, or in the notice to be given, will immediately involve the responsibility of the 
 officers in command of the posts or of the troops, and will make them liable to severe 
 penalties. The punishment inflicted will be made known to the Commissioner of the other 
 country belonging to the Mixed Commission concerned. 
 
 "Section 5. — Responsibility of the Commissioners and of the Commanders of the Double 
 
 Military Posts. 
 
 " Article XXIII. — The French and the Chinese Commissioners, belonging to a Mixed 
 Commission, who shall .not have conformed to the provisions of the present Regulations 
 affecting them, will be the subject of investigations made on either part by the high officials 
 of the two countries, who will determine the responsibilities incurred. When the penalty 
 inflicted by one of the Governments shall have been made known to the other, each will 
 act according to its own laws. 
 
 " Article XXIV. — The commanders of the French or of the Chinese post at double 
 military posts, or the commanders of French or of Chinese troops, who shall not have 
 conformed to the provisions of the present Regulations affecting them, will be the subject 
 of investigations made on either part by the two Commissioners, French and Chinese, be- 
 longing to the Mixed Commission charged with the supervision of the frontier section con- 
 cerned. Each will adjudge the penalty incurred, according to' the laws of his own country, 
 and will make it known to the Commissioner of the other country belonging to the Mixed 
 Commission concerned. 
 
 " Section 6. — Carrying out of the police service in the Archipelago of Tonkin. 
 
 " Article XXV. — Every boat or launch manned by a crew composed of Chinese, and 
 sailing in the waters of Annam, must be provided with a permit delivered and visaed by 
 the French authorities, either administrative or consular, or by the Chinese Maritime 
 Customs or the local Chinese authorities, of the point of departure. 
 
 " This permit will state the composition of the crew, the nature of the cargo, and the 
 point for which the vessel is bound. 
 
 " The boats of near-by villages coming to markets or fairs, or serving as ferries, which 
 it would be difficult to hold to making an exact statement of the persons aboard them, 
 must receive passports delivered by the local authorities, on the responsibility of the lat- 
 ter, permitting them to sail. The persons and the goods aboard them must be exempted 
 from minute and itemized declarations. 
 
 " Article XXVI. — The sailing ipermit must be presented upon every request by a 
 French war-vessel or by a customs vessel of the Protectorate. 
 
 " Article XXVII. — The request provided for in the preceding article will be signified 
 by a blank gun or cannon shot, followed, if necessary, by a second shot. 
 
 " Any boat which should not obey the request signified as prescribed above would sub- 
 ject itself to being considered a pirate vessel and treated as such. 
 
 " Article XXVIII. — Every boat or launch manned by a crew composed of Chinese, 
 presenting itself at a point on the coast of Annam, must present for the visa of the 
 customs or administrative authorities the sailing permit provided for by Article XXV of 
 the present Regulations." 
 
 See also the Arrangement for the maintenance of order on the Sino-Annamite frontier, 
 April 13, 1915, between the Wai Chiao Pu and the French Minister acting in behalf of the 
 Government of Indo-China (No. 1915/4, post), which replaced a similar arrangement of 
 January 4, 1909, between the authorities of China and of Indo-China. 
 
 Note 2. 
 
 Under date of September 26, 1914, the Chinese Minister for Foreign Affairs (Mr. 
 Sun Pao-ki) addressed to the French Minister in Peking (Mr. Conty) a letter of which the 
 translation is thus given in the F. E. Review, vol. 13, p. 455: 
 
 Note regarding Preference to French Nationals in Yunnan and Kwangsi. — 
 
 September 26, 1914. 
 
 " Since there has been disorder on the border of Yunnan and Kwangsi, which has led 
 to misunderstandings, both sides have appointed deputies to investigate and make arrange-
 
 NUMBER 1895/6 : JULY 6, 1895 35 
 
 ments for the pacification of the locality. Several replies have been sent to Your Ex- 
 cellency, in response to your requests for action to be taken, which we trust have been 
 satisfactory. Now_ our Government wishes to show in an especial way its friendly inten- 
 tions. In future if railway or mining enterprises are to be undertaken in the province 
 of Kwangsi, in which foreign capital is required, an offer will first be made to French 
 capitalists. At such a time the higher officials of Kwangsi will ascertain the facts and 
 carry on negotiations with the French Minister. A report will then be made to the 
 Government, which will make a final decision. 
 " With compliments," etc. 
 
 See also the identic notes of June 12, 1897, appended to the text of this convention. 
 
 NUMBER 1895/6. 
 
 FRANCE AND RUSSIA (Franco-Russian Syndicate) AND CHINA. 
 Contract for the Chinese four per cent Gold Loan of 1895* — July 6, 1895. 
 
 Between the undersigned : 
 
 His Excellency Shu King-chen, Envoy Extraordinary and Minister Plenipo- 
 tentiary of His Majesty the Emperor of China, acting with full powers from the 
 Imperial Government of China and duly authorized by a decree of His Majesty 
 the Emperor of China, dated Peking, . . . , — of the one part ; and a Syn- 
 dicate consisting of M. M. Hottinguer & Cie., Paris ; La Banque de Paris et des 
 Pays-Bas, Paris ; Le Credit Lyt)nnais, Paris ; La Societe Generale pour favoriser 
 le Developpement du Commerce et de I'lndustrie en France, Paris ; Le Comptoir 
 National d'Escompte de Paris, Paris ; La Societe Generale de Credit Industriel 
 et Commercial, Paris; La Banque Internationale de Commerce a St.-Petersbourg, 
 St. Petersburg; La Banque d'Escompte de St.-Petersbourg, St. Petersburg; La 
 Banque Russe pour le Commerce Etranger, St. Petersburg ; and La Banque de 
 Commerce de Volga-Kama, St. Petersburg, — of the other part, — 
 
 It has been agreed as follows : 
 
 L — By virtue of an edict of His Majesty the Emperor of China, the Im- 
 perial Government of China will proceed to issue a 4% Gold Loan for a nominal 
 amount of francs 400,000,000 = marks 323,200,000 = pounds 15,820,000 = 
 Netherland florins 191,200,000 = gold roubles 100,000,000. 
 
 This loan will be entitled the "Chinese 4% Gold Loan of 1895" (f. e., Em- 
 prunt Chinois 4% Or 1895), and as to capital and interest will be issued in 
 francs, pounds sterling, reichmarks, Netherland florins, and gold roubles, on 
 the basis of frs. 500 = mk. 404 = il9/15/6 = fl. 239 = g. rs. 125. 
 
 2. — By an edict of July 1, 1895 (New Style), His Majesty the Emperor 
 
 of China legalizes the Chinese 4% Gold Loan of 1895, and has duly authorized 
 
 his Minister Plenipotentiary at St. Petersburg to conclude and sign the conditions 
 
 of the loan as stipulated in the following articles. 
 
 * Translation from the French text. In connection with this contract, see also the 
 Protocol of exchange of declarations, between Russia and China, concerning this loan, July 
 6, 1895 (No. 1895/7, post), and the simultaneous Contract of guarantee of the loan by the 
 Russian Ministry of Finance (printed in the note thereto, p. 42, fost).
 
 36 CHINA TREATIES AND AGREEMENTS 
 
 There shall be drawn up a general bond for the whole of the Chinese 4% 
 Gold Loan of 1895, to which will be affixed the legal Chinese signatures. This 
 bond will be turned over to the Banque Internationale de Commerce a St.-Peters- 
 bourg, and each contracting party will receive a copy thereof authenticated by 
 the Imperial Chinese Legation at St. Petersburg. After the complete amortiza- 
 tion of the loan, the original will be returned to the Imperial Government of 
 China. 
 
 3. — On the basis of this general bond, there will be certificates issued for the 
 new loan, divided into 500,000 sets of one bond each, 55,000 sets of five bonds 
 each, and 1,000 sets of twenty-five bonds each — each bond being for frs. 500 = 
 mk. 404 - il9/15/6 = fl. 239 = g. rs. 125. 
 
 The certificates for the new loan will be to bearer, and their text will be 
 drawn up in French, English and Russian. 
 
 4. — The bonds of the present loan will bear interest at 4% per annum upon 
 the nominal principal. 
 
 Interest will run from July 1, 1895 (New Style), and will be payable semi- 
 annually, to wit, on January 1 and July 1 (New Style) each year. 
 
 The loan will be amortized in 36 years, at the furthest, beginning with 1896, 
 by means of drawings by lot, which will take place at the Banque Internationale 
 de Commerce a St.-Petersbourg in the presence of a delegate of the Chinese 
 Legation, in the month of March, each year, beginning with March, 1896 — the 
 date of the first drawing. 
 
 There shall be devoted to amortization, each year, 1.288,688% of the nominal 
 amount of the loan, plus 4% of the nominal amount of the bonds already 
 amortized. 
 
 The bonds drawn by lot will be paid, beginning with the 1st of July next 
 following, upon the return of the bonds together with their stubs and all the 
 coupons falling due after the time for repayment. The amount of missing 
 coupons will be deducted from the principal to be repaid. The numbers of 
 the bonds drawn at each drawing will be duly published, and will be made the 
 subject of a special list to which will be appended a detailed specification of 
 such bonds as may have been drawn at previous drawings and not yet presented 
 for repayment. 
 
 These publications will be made at the expense of the Imperial Government 
 of China, in the Russian newspapers, in two newspapers in Paris, two in Berlin, 
 one in London, one in Amsterdam, one in Frankfurt-on-Main, one in Brussels, 
 and one in Geneva. 
 
 Until January 1, 1910, the amortization may not be increased; and until 
 that date, nothing may be done towards converting or repaying the present 
 loan. 
 
 5. — The service of the bonds will take place, at the option of the holders, at 
 Paris, Brussels and Geneva, in francs; at Berlin and Frankfurt-on-Main, in 
 reichmarks ; at London, in pounds sterling ; at Amsterdam, in Netherland 
 florins ; at St. Petersburg, in gold roubles (in accordance with the Monetary 
 Law of December 17/29th, 1885), — all at the equivalents mentioned in 
 Article 1. 
 
 6. — The bonds and coupons of the present loan will be forever exempt from
 
 NUMBER 1895/6 : JULY 6, 1895 37 
 
 all present or future Chinese tax, as well as from any other levy on the part 
 of China. 
 
 7 . — Upon the exhaustion of the sheets of coupons of the bonds, and upon 
 the return of the stubs belonging to bonds not yet drawn by lot, the Banque 
 Internationale de Commerce a St.-Petersbourg will, at the expense of the Im- 
 perial Government of China, have new sheets of coupons made, which will be 
 delivered to the holders without any expense to them, and free of any Chinese 
 tax. 
 
 8. — The following offices will be exclusively entrusted with the service of 
 the Chinese \% Gold Loan of 1895 : 
 
 In Paris — M.M. Hottinguer & Cie. ; La Banque de Paris et das Pays-Bas; 
 Le Credit Lyonnais ; La Societe Generale pour favoriser le Developpement du 
 Commerce et de I'lndustrie en France; Le Comptoir National d'Escompte de 
 Paris ; and La Societe Generale de Credit Industriel et Commercial ; 
 
 In Brussels — ; 
 
 In Geneva — The branch of the Banque de Paris et des Pays-Bas; and the 
 agency of the Credit Lyonnais ; 
 
 In Amsterdam — The branch of the Banque de Paris et des Pays-Bas; 
 
 In London — The agency of the Comptoir National d'Escompte de Paris; 
 the agency of the Credit Lyonnais ; and the branch of the Banque Russe pour le 
 Commerce Et ranger; 
 
 In Berlin — ; 
 
 In Frankfurt-on-Main — For account of the Banque Internationale de Com- 
 merce a St.-Petersbourg, at the offices which may be designated by it; 
 
 In St. Petersburg — La Banque Internationale de Commerce a St.-Peters- 
 bourg ; La Banque Russe pour le Commerce Etranger ; La Banque d'Escompte de 
 St.-Petersbourg ; and La Banque de Commerce de Volga-Kama. 
 
 The commission allotted to the offices of all the firms alike is fixed at %% 
 (a quarter of one per cent) of the amount of the coupons and of the bonds 
 of the present loan. 
 
 9. — The present loan is guaranteed by the duties levied by the Maritime 
 Customs of China, and by the deposit of customs bonds. 
 
 Furthermore, in the event that the service of the loan should for any reason 
 whatsoever come to be suspended or delayed, the Imperial Government of Rus- 
 sia, by agreement with the Imperial Government of China, undertakes, vis-a-vis 
 the contracting banks and firms, the obligation to find, itself, and to place at 
 their disposal in good time, as they fall due, whatever sums are necessary for 
 the payment of the coupons and of the amortized bonds of the present loan.f 
 
 The bonds put into circulation by the Syndicate, representing the general 
 bond deposited with the Banque Internationale de Commerce a St.-Petersbourg, 
 will be made out in the name of the Imperial Government of China. 
 
 10. — The Imperial Chinese Legation at St. Petersburg will hold or cause to 
 be held an annual drawing of bonds, and will see to it that the publications 
 specified in Article 4 take place regularly. 
 
 fFor the terms of the guarantee given by the Russian Government to the Syndicate, 
 see the note to the Russo-Chinese Protocol of July 6th, 1895 (No. 1895/7), post, p. 42.
 
 38 CHINA TREATIES AND AGREEMENTS 
 
 The correspondence of the Imperial Chinese Legation with the contracting 
 parties will be carried on exclusively through the Banque Internationale de 
 Commerce a St.-Petersbourg, which will be in charge of the general accounting 
 of the loan, and will see to it that the funds necessary for the service of the 
 loan are suitably apportioned, and to which the other offices will cause to be 
 delivered, duly cancelled, the bonds and coupons paid by them. 
 
 Through the agency of its Legation at St. Petersburg, the Imperial Govern- 
 ment of China will in good time provide to the firms entrusted with the service of 
 the Chinese 4% Gold Loan of 1895 the amounts necessary therefor, in accordance 
 with the requirements ascertained during the corresponding semester of the pre- 
 ceding year. One month before each due date, the Banque Internationale de 
 Commerce a St.-Petersbourg will, in behalf of the contracting parties, furnish 
 the necessary information to the Imperial Chinese Legation at St. Petersburg. 
 The Imperial Government of China undertakes to put into the hands of the 
 officers concerned the amounts necessary, in accordance with these indications, at 
 least twenty days before each due date. 
 
 IL — The Syndicate binds itself to take firm, — and by the mere fact of 
 signature of the present contract it takes firm, — the Chinese 4% Gold Loan 
 of 1895, for a nominal amount of frs. 400,000,000 = mk. 323,200,000 
 = £15,820,000 = Netherland fls. 191,200,000 = g. rs. 100,000,000, at the price 
 of 94ys% (ninety-four and one-eighth per cent) of the nominal principal in 
 francs. 
 
 The discount on the loan will be calculated upon the nominal principal in 
 francs, and the net proceeds accruing to the Imperial Government of China will 
 be placed to its credit in Paris. 
 
 The Minister of China at St. Petersburg is authorized, after the deposit of 
 the general bond with the Banque Internationale de Commerce a St.-Peters- 
 bourg, to dispose of the proceeds of the loan, and to give the Syndicate good 
 and valid receipts therefor. 
 
 Until the completion of the definitive bonds, the Syndicate will at its own 
 expense issue at each place special provisional certificates. 
 
 12. — The Syndicate will see to the payment, for the account of the Imperial 
 Government of China, of the expenses for the French stamp tax, as well as 
 for the preparation and delivery of the definitive bonds. The amount of these 
 expenses will be deducted from the proceeds of the loan. All other expenses 
 (such as publicity, charges for other foreign stamps, notarial services, registra- 
 tion, etc.) will be borne by the Syndicate. The definitive bonds will bear the 
 coupons falling due on January 1, 1896 (New Style), and subsequent coupons. 
 
 13. — The Syndicate will issue the Chinese 4% Gold Loan of 1895 by public 
 subscription, on July 31, 1895, at the latest. The prospectus of the subscription 
 is approved by the Minister of China at St. Petersburg. 
 
 14. — The discount on these transactions will be calculated on the basis of 
 the nominal amount in francs, at the price of 94j^%, plus the interest accrued 
 from July 1st to the day of the discount, such interest being calculated at 4% 
 per annum. The amounts thus arrived at in francs will be held in Paris to 
 the credit of the Minister of China at St. Petersburg.
 
 NUMBER 1895/6: JULY 6, 1895 . 39 
 
 The Syndicate may, at its discretion, arrange for the Chinese 4% Gold Loan 
 of 1895 in one or more issues. In any case, a third of the proceeds must be 
 placed to the credit of the Imperial Government of China, as provided above, 
 on August 20, 1895, at the latest; another third on October 1, 1895; and the 
 balance on January 1, 1896 (New Style). 
 
 The expenses of the French stamp tax and those for preparation and delivery 
 of the bonds will be deducted from the amount to be placed to the credit of 
 the Imperial Government of China following such payments. 
 
 From the sums held in Paris to the credit of the Imperial Government of 
 China, the Syndicate will make without charge, to any one of the places in 
 Europe, such transfers as may be requested of it by the Minister of China at 
 St. Petersburg. 
 
 Transfers outside of Europe will be arranged for exclusively by the Banque 
 Internationale de Commerce a St.-Petersbourg, which will see to it that they are 
 made to the best advantage of the Imperial Government of China. 
 
 15. — The contracting parties participate in the present contract severally 
 (i.e., sajis solidarite cntre eux), and in the following proportions: 
 
 M.M. Hottinguer & Cie francs 62,500,000 
 
 La Banque de Paris et des Pays-Bas 62,500,000 
 
 Le Credit Lyonnais 62,500,000 
 
 Le Comptoir National d'Escompte de Paris 25,000,000 
 
 La Societe Generale pour favoriser le Developpement du Com- 
 merce et de ITndustrie en France 25,000,000 
 
 La Societe Generale de Credit Industriel et Commercial 12,500.000 
 
 La Banque Internationale de Commerce a St.-Petersbourg 75,000,000 
 
 La Banque Russe pour le Commerce Etranger 25.000,000 
 
 La Banque d'Escompte de St.-Petersbourg 25.000.000 
 
 La Banque de Commerce de Volga-Kama 25,000,000 
 
 Total francs 400,000,000 
 
 16. — Until January 15th, 1896, the Imperial Government of China will not 
 take steps to make any issue of funds in gold, and will allow no steps to be taken 
 towards any issue of Chinese securities in gold guaranteed by the State, unless 
 upon a previous understanding with the Syndicate. 
 
 Exception is made solely for the case of war. 
 
 17. — If extraordinary events should occur — if, for example, the French 
 retite should fall below par, or Russian Consolidated 4%s below 98^2%, — the 
 Syndicate will have the right to decline to execute the present contract. This 
 right of cancellation is available to it, however, only before June 24/July 6, 
 1895. 
 
 In the event of cancellation of the obligations of the Syndicate, the present 
 contract becomes null and void. 
 
 18. — The Banque Internationale de Commerce a St.-Petersbourg has full 
 power to act in the name of the Syndicate with the Chinese Legation at St.
 
 40 . CHINA TREATIES AND AGREEMENTS 
 
 Petersburg. The said Bank is authorized to give good and valid receipt in the 
 name of the Syndicate for any sum or value. 
 
 19. — The present contract will be drawn up in two originals, one for the 
 Imperial Chinese Legation at St. Petersburg, and one for the Syndicate ; and as 
 many copies as there are members of the Syndicate will be prepared. The copies 
 will be certified by the Imperial Chinese Legation at St. Petersburg. 
 
 In case of, doubt or of difference, the French text alone will be authoritative 
 for the interpretation of the contract. 
 
 Done at St. Petersburg, June 24/July 6, 1895, the 14th day of the inter- 
 calary 5th moon of the 21st year of Kuang Hsii of the Ta Ch'ing Dynasty, 
 in virtue of full powers in behalf of the Syndicate, namely : 
 For Hottinguer & Cie., etc., etc. 
 [Here follow signatures and seals] 
 
 NUMBER 1895/7. 
 
 RUSSIA AND CHINA. 
 
 Protocol of exchange of declarations concerning the Chinese Four Per Cent Gold 
 
 Loan of 1895*— July 6, 1895. 
 
 The undersigned met this day at the Imperial Ministry of Foreign Affairs 
 to proceed with the exchange of the Declarations concerning the Chinese 4% 
 Gold Loan of 1895, signed at St. Petersburg on June 24/July 6, 1895, between 
 Russia and China. 
 
 The respective instruments having been read and found to be in good and 
 due form, the exchange of Declarations took place in the usual manner. 
 
 In faith whereof the undersigned drew up the present Protocol and affixed 
 thereto the seal of their arms. 
 
 Done in duplicate at St. Petersburg, June 24/July 6, 1895. 
 
 L. s. (Signed) Prince Lobanow Rostowsky. 
 
 L. s. (Signed) Shu. 
 
 L. s. (Signed) Serge Witte. 
 
 In view of the conclusion of the Chinese 4% Gold Loan of 1895, the Im- 
 perial Government of Russia and the Imperial Government of China have, in 
 common accord, drawn up the following provisions: 
 
 The Imperial Government of Russia takes formal notice of the data sup- 
 plied on June 24/July 6, 1895, by the Minister of China at St. Petersburg as 
 to the Chinese loans contracted up to date and secured by the Maritime Customs 
 
 * Translation from the French text as printed in Recueil, p. 57. See also Note to 
 this document, post, p. 42.
 
 NUMBER 1895/7: JULY 6, 1895 41 
 
 receipts, as to the annual amount to be paid on account of interest and amor- 
 tization of the said loans, and as to the figure to which the annual receipts of 
 the Chinese Maritime Customs amount. 
 
 II. — The Chinese Government engages to assign to the service of interest 
 and amortization of the 400,000,000 francs in gold (face value) of the loan of 
 1895 the balance of the Maritime Customs receipts available after meeting the 
 payments on Chinese loans previously secured by the said receipts. It is ex- 
 pressly stipulated that every year until the Chinese 4% Gold Loan of 1895 shall 
 have been fully liquidated, no other Chinese loan subsequently concluded shall 
 be served out of the receipts of the Chinese Maritime Customs before full pro- 
 visions shall have been made for the service of the interest and amortization 
 of the above-mentioned loan. 
 
 III. — In case the service of the loan should, for any reason whatever, hap- 
 pen to suffer abeyance or delay, the Imperial Government of Russia, in accord 
 with the Imperial Government of China, takes the obligation toward the con- 
 tracting banks and firms, to make up for its part and place at their disposal in 
 good time, as fast as they fall due, all sums required for the payment of coupons 
 and redeemed bonds of the present loan, save that the Chinese Government will 
 afterwards furnish the Russian Government with additional security. The 
 manner of such additional security will be made the subject of a special agreement 
 to be established between the two governments by their plenipotentiaries at 
 Peking. 
 
 TV. — In consideration of this loan the Chinese Government declares its 
 resolution not to grant to any Foreign Power any right or privilege under any 
 name whatsoever concerning the supervision or administration of any of the 
 revenues of the Chinese Empire. But in case the Chinese Government should 
 grant to any one Power rights ot this character, it is understood that from the 
 mere fact of their being so granted, they should be extended to the Russian 
 Government. 
 
 V. — This Declaration shall have the same force and value as a Treaty. It 
 shall go into efifect on and from the day of the signing of the Chinese Govern- 
 ment's contract with the bankers who take charge of this loan, and will endure 
 until the loan is fully liquidated. 
 
 In faith whereof the undersigned, duly authorized to that effect, have signed 
 this Declaration and affixed thereto the seal of their arms. 
 
 Done at St. Petersburg, in duplicate, June 24/July 6, 1895, corresponding to 
 the 14th day of the 5th moon, of the 21st year of Kuang Hsii of the Ta-Ching 
 Dynasty. 
 
 L. s. (Signed) Prince Lobanow Rostowsky. 
 
 L. s. (Signed) Shu. 
 
 L. s. (Signed) Serge Witte.
 
 42 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 In connection with this Declaration see Loan Contract (No. 1895/6); also the contract 
 of the same date by which the Russian Government guaranteed to the lending syndicate the 
 due payment of interest and amortization by the Chinese Government, as given in /// Cor- 
 dicr, p. 307, of the body of which the translation is as follows: 
 
 Contract of Guarantee of Chinese 4% Gold Loan of 1895 by Russian Government.— 
 
 July 6, 1895. 
 
 "Art. 1. — The Syndicate takes positively (i.e, prend ferme) from the Chinese Govern- 
 ment a 4% gold loan of a nominal amount of 100,000,000 gold roubles, 400,000,000 francs, 
 323,200,000 marks, 15,820,000 pounds, or 191,200,000 Dutch florins, under the conditions 
 and on the basis of a contract to be concluded between the Syndicate and the Minister of 
 China at St. Petersburg, on the same date and at the same time as the present agreement. 
 
 " Art. 2. — The conditions of this loan are stipulated in the afore-mentioned contract, 
 which is appended to the present document and forms a part of this agreement. As pro- 
 vided in the contract with China, besides the special guarantees granted directly by the 
 latter Power, the Imperial Government of Russia undertakes, in case for any reason the 
 payments on the loan should fail to be made or should be delayed, to make up on its 
 part and to place at the disposal of the contracting parties to the loan, in due time and as 
 fast as the payments fall due, all the sums necessary for the payment of the coupons and 
 redeemed bonds of the present loan. 
 
 " Art. 3. — The obligation stipulated in the foregoing article shall become effective 
 in the following manner : When China, in pursuance of the contract, has failed to furnish 
 20 days before the date of maturity, according to Article 10 of the contract, the necessary 
 funds for making the payment on the coupons and the amount of bonds to be re- 
 deemed, Russia shall furnish the undersigned banking institutions, on a mere notice from 
 them and not later than ten days before the maturity of the coupons, all the amounts 
 necessary to meet the payments. 
 
 " The contracting parties shall be permitted to request these amounts through their 
 representatives at St. Petersburg or through some representative chosen among the French 
 banking institutions. 
 
 " Art. 4. — His Excellency the Minister of Finance hereby declares that the Minister of 
 China is duly authorized by the Emperor of China to sign the loan contract with the 
 Syndicate and that this loan has received legal force through this signature. 
 
 " Art. 5. — The Contract with China, as well as the present Agreement, shall be exempt 
 from Russian stamp duties. The Agreement shall be drawn up in two copies, one of 
 which shall be deposited in the Ministry of Finance of Russia and the other at the house 
 of Messrs. Hottinguer & Co. at Paris. Each contracting party shall receive a copy of 
 the present agreement, duly authenticated by the Ministry of Finance. 
 
 " The present agreement shall not be valid until it has received the approval of His 
 Majesty the Emperor. 
 
 " Done at St. Petersburg, June 24/July 6, 1895." 
 
 NUMBER 1895/8. 
 
 GERMANY AND CHINA. 
 
 Convention in regard to a concession in the treaty port of Hankozu.* — 
 
 October 3, 1895. 
 
 The Imperial German Consul General in Shanghai, Dr. Steubel, and the 
 Taotai of the Han-Huang-Te Circuit in ?Iupei, Superintendent of Customs for 
 
 * Translation from the German text as printed in Reciieil, p. 68. 
 
 In connection with this convention, see also the Declaration of war by China against 
 Germany, August 14, 1917 (No. 1917/7. post).
 
 NUMBER 1895/8: OCTOBER 3, 1895 43 
 
 Foreign Trade in Hankow, Officer of the Second Rank, Yiin, have— subject to 
 the sanction of the superior authorities of the said two officers — concluded the 
 following lease in perpetuity : — 
 
 Article I. — Inasmuch as the establishment of a new Concession in Hankow 
 has been duly applied for with a view to the development of German commerce, 
 I, the Superintendent of Customs, by order of the Acting Governor-General of 
 the Two Hu Provinces, Tan, and I, the German Consul-General, have selected, 
 on due and careful examination, a plot of land situated in the market-town 
 Hankow, below the British Concession, which, with its front outside the Tung 
 Chi Gate, extends from the border of the government land by the river side to 
 a place called Lichia-tun (mound of the Li family), measuring 300 chang in 
 length, the depth of the area (the bank of which is at present still inundated) 
 being fixed at 120 chang. 
 
 On the 24th day of the 7th month (September 12th) the survey of the 
 area of the German Concession took place in the presence of the German Consul- 
 General and the German Vice-Consul Thyen on the one side, and the Hanyang 
 District Magistrate Hsiieh and Sub-Prefect Tung on the other side, boundary 
 stones having been set at the terminal points. 
 
 The depth of the Concession will have to be fixed as s^on as the water-level 
 of the river has fallen to the normal water mark. 
 
 Article H. — The total area of this plot is 600 mon. The land tax amounts 
 to Taels 0.117 per mou, making a total of Taels 70.20 for the whole area. 
 The grain tax is 2.84 sheng per moti, making a total of 17 piculs and 4 sheng of 
 rice, which calculated at the rate of Taels 3 per picul, yields a sum of Taels 51.12 
 as grain tax for the whole settlement. Inasmuch as the land and grain taxes 
 amounting to Taels 121.32 per annum have hitherto been paid by Chinese as 
 revenue from the land, the German Consul will pay a similar amount in the 
 4th month of each year to the Hanyang District Magistrate for further trans- 
 mission through him. 
 
 In return therefor, the land is leased in perpetuity to the German Govern- 
 ment, which, through its authorities, will bring about, as soon as possible, the 
 transfer of the land from Chinese into foreign ownership. As far as concerns 
 land that has not yet changed hands in the above manner, the amount of the 
 lease will, as heretofore, be paid by the Chinese tenant. 
 
 The register of landed property kept by the German Consul is authority 
 and proof for questions as to who is entitled to the lease of the land in the Ger- 
 man Concession and for what amounts the registered lessee may possibly have 
 mortgaged his rights in the land to some third person. 
 
 The German Concession will be administered by the German Consul in 
 accordance with this agreement of lease and with executive orders to be issued 
 in this connection. Chinese shall not be allowed to reside within the Concession. 
 
 Article HI. — Whosoever desires to acquire from the Chinese owner a 
 lease in the German Concession is bound to compensate the latter in accordance 
 with the following rules : 
 
 The indemnity is to be fixed according to the principle of fairness and the
 
 44 CHINA TREATIES AND AGREEMENTS 
 
 prices obtaining within the last three months for sales of similar land. The 
 Superintendent of Customs shall not allow the Chinese to artifically raise the 
 usual prices, whereas, on the other hand, the German merchants may not bring 
 about by force the transfer of rights. Should it, however, prove necessary in 
 the course of time to do so, the right to make arrangements for standard prices 
 for land in the German Concession is reserved herewith for future negotiations. 
 
 So far as private temples, ancestral halls, guild halls and public temples 
 are concerned, the amount of compensation is to be agreed upon specially and 
 individually in each case, in order to avoid arousing the ill-feeling or inviting the 
 resistance of the people. Houses or tombs — if there be any — on the land leased 
 in perpetuity shall have their values fixed according as they are brick buildings 
 or wooden huts, and any change of residence or removal of tomb so entailed is 
 to be compensated for by mutual agreement. 
 
 As soon as the compensation is paid the land is to be vacated. If there 
 are buildings on the plot, a special time is to be fixed for the vacation. The 
 Chinese owner is not allowed to utilize his land in any other way than hereto- 
 fore — that is, exclusively as residence for himself and his family, or for farming, 
 which he may continue to do, so long as no transfer of property has taken 
 place. In particular, no new buildings are to be erected on the plot. 
 
 Article IV. — Compulsory expropriation of the Chinese owner will be ef- 
 fected by the Chinese authorities concerned on application by the German Consul. 
 
 In the title-deed the words " leased in perpetuity " are to be used. After 
 careful examination by the Prefect and the District Magistrate of Hanyang, the 
 usual Chinese fees are to be paid for the documents, whereupon the official seal 
 is to be affixed in witness thereof. 
 
 It may happen that after the conclusion of this treaty of lease a non-German 
 foreigner desires to acquire a lease of land in the German Concession. This, 
 however, shall only be possible if the German Consul gives his sanction thereto, 
 after and because the area of the Concession has, by this treaty of lease, been 
 transferred to the German Government in perpetuity. It is the German Consul 
 alone who is entitled, if such a case arises, to apply to the Chinese authorities 
 for the issue of a title-deed. 
 
 Article V. — Government land situated in the German Concession shall be 
 surveyed, and is to remain in the possession of the Chinese Government, in 
 order that there may be established later on a Mixed Court and eventually other 
 public buildings. 
 
 Article VI. — On the area of the German Concession there are from 
 ancient times government roads and public ways. If in future these thorough- 
 fares should be blocked up by the erection of European houses, sufficient space 
 is to be left at another place for the construction of proper roads and ways. 
 Both Chinese and European merchants, without discrimination, as well as 
 Government couriers forwarding despatches and transports of Government silver, 
 together with the men and horses required for them, are all%wed to pass freely 
 and unmolested over these roads. 
 
 In case the Chinese Government decides to lay a railway track through 
 the German Concession, the area required for this purpose shall be retroceded.
 
 NUMBER 1895/8: OCTOBER 3, 1895 45 
 
 The price of the land shall be fixed by the Superintendent of Customs and the 
 German Consul in accordance with the principle of fairness, should it be impos- 
 sible to arrive at an understanding in this respect with the lessee for the time 
 being. On no account and under no pretext whatsoever can the retrocession 
 be refused. 
 
 Article VII. — The communication facilities between the German and Brit- 
 ish Concessions through the Tung Chi Gate in the City Wall being most in- 
 sufficient, an agreement has been reached, after examination by the Hanyang 
 District Magistrate, to the effect that a practicable (passable) quay may be 
 constructed around the base of the City Wall along the river, so that in this way 
 good communication may be established with the roads on the other side of the 
 wall and thereby also with the British Concession. 
 
 The Government land outside of the Tung Chi Gate which serves for defend- 
 ing and guarding the City Wall is not included in the Concession. However, 
 the Chinese authorities shall take care that no huts that offend the eye will re- 
 main or be erected on this land. Likewise tombs shall not be allowed there. 
 
 Article VIII. — The German Concession is to be within the boundaries of 
 the Treaty Port of Hankow. The construction of landing stages is to be pre- 
 ceded by a consultation with the Superintendent of Customs so that it may be 
 determined (stated) whether or not Chinese and foreign shipping will thereby 
 be inconvenienced on that spot. 
 
 Article IX. — Foreigners residing in the German Concession, who are not 
 represented by a Consul in China, as well as all Chinese, are under Chinese 
 jurisdiction, which is exercised in the German Concession itself by a Chinese 
 judge to be specially appointed to this function. 
 
 In cases that concern a non-represented foreigner, and in cases where a 
 German or another foreigner is concerned as plaintiff or injured party, and 
 finally in cases dealing with Chinese contraventions of the orders in force in the 
 German Concession, the Chinese judge is to sit and to decide only in the presence 
 of the German Consul or of a person deputed by him. 
 
 Moreover, it shall be possible in all such cases to lodge, through the medium 
 of the German Consul, an appeal with the Superintendent of Customs, against 
 the decision of the judge. The judgment in difficult and important cases re- 
 mains, also in future, reserved to the local authorities. 
 
 As for the rest, all questions at issue between Chinese and foreigners are 
 to be dealt with according to the treaties. 
 
 Article X. — There are various non-German foreigners who have already 
 previous to this acquired from the Chinese owners the leases of plots of land 
 lying within the boundaries of the German Concession. The rights of such 
 foreigners are not interfered with by the establishment of the German Conces- 
 sion. 
 
 Regarding the incorporation in the German Concession of the plots of land 
 in question, the German consular authorities shall, if necessary, negotiate with 
 the Consuls of the foreigners concerned. 
 
 This Agreement is done in duplicate and signed, and will, in addition, have 
 the official seals of the two contracting parties affixed thereto, as soon as the
 
 46 CHINA TREATIES AND AGREEMENTS 
 
 above mentioned reserved sanction of the said superior authorities is at hand. 
 Done at Hankow, this third day of October, 1895, which is the 15th day 
 of the eighth moon of the 21st year of Kuang Hsii. 
 (Sgd.) Dr. Steubel, 
 [l. s.] Imperial German Consul-General. 
 
 (Sgd.) Taotai and Superintendent of Customs, 
 
 YUN. 
 
 NUMBER 1895/9. 
 
 GERMANY AND CHINA. 
 
 Convention in regard to a concession in the treaty port of Tientsin/^ — October 
 
 30. 1895. 
 
 An Agreement having been reached between the Imperial German Legation 
 in Peking acting by order and on behalf of the Imperial German Government, on 
 the one side, and the Tsiing-li Yamen, on the other, to the effect that a Con- 
 cession should be set apart for German trade at Tientsin ; further that the details 
 bearing thereupon should be settled by negotiations to be conducted between offi- 
 cials specially detailed by the Superintendent of Trade of the Northern Ports, and 
 the Imperial German Consul at Tientsin ; the commission, consisting of the Taotais 
 Sheng, Li, Huang and Wu, on the one side, charged with the conduct of these 
 negotiations by the Superintendent of Trade of the Northern Ports, and the 
 Imperial German Consul on the other side, have now agreed upon the following 
 points : 
 
 Article I. — The Concession destined for German trade in Tientsin be- 
 ing herewith leased in perpetuity to the Imperial German Government by the 
 Imperial Chinese Government shall have the following boundaries : 
 
 On the north, the road along the northern side of the plots of the Fukien and 
 Canton Guild Halls down to Taku Road. 
 
 On the east, the river. 
 
 On the south, the edge of the street leading from the northern part of 
 the village of Hsiao Liu Chuang to the eastern edge of Taku Road. The houses 
 belonging to this village are to remain outside the Concession. 
 
 On the west, the eastern side of Taku Road. 
 
 The erection of the boundary stones required shall be undertaken with the 
 assistance of the Chinese authorities and the Imperial German Consul in Tien- 
 tsin immediately on conclusion of this Agreement. 
 
 * Translation from the German text as printed in Recueil, p. 77. 
 
 In connection with this convention see also the Declaration of war by China against 
 Germany, August 14, 1917 (No. 1917/7, post).
 
 NUMBER 1895/9: OCTOBER 30, 1895 47 
 
 The part of the City Wall running within this area can be removed only 
 with the consent of the Chinese Government, whereas it is admissible to break 
 through it for gates. 
 
 Article II. — In the event of the area composed of compounds of the 
 China Merchants Steam Navigation Company, of the Chinese Engineering and 
 Mining Company and of the firm of Forbes & Company, lying between the 
 southern boundary of the British Concession and the road running along the 
 southern boundary of the compound of Forbes & Co., remaining under Chinese 
 jurisdiction, the Chinese Government undertakes the responsibility of having 
 the strip of land lying between these compounds and the river put in order 
 and kept in the same way as it has been done in the British Concession, so 
 that the Bund and the street running along it is extended. 
 
 The Chinese Government shall, in this case, not allow the keeping of small 
 stalls on this new Bund or on the new street section. 
 
 Further, the Chinese Government undertakes to keep in good order the 
 section of Taku Road joining the British Concession and the road running 
 along the south of the compound of Forbes & Company. 
 
 If the Chinese Government does not discharge the liabilities taken over 
 under Article II within one year after the Imperial German Consulate at Tientsin 
 has requested it to do so, then the right of executing the necessary work, at 
 the expense of the Chinese Government, shall pass to the Administration of the 
 German Concession. 
 
 Article III. — The building near the river outside of the Wall, together 
 with the compound appertaining to it, known under the name of Po-wen-shu- 
 yuan and changed by the Chinese authorities into a High School, shall remain 
 there undisturbed without taxes of any kind being allowed to be levied thereon. 
 If, however, at the time of constructing the bund the enclosure wall built on 
 the eastern side of the said compound proves to interfere with the bund line 
 to be fixed later on by the German authorities, the Chinese authorities shall be 
 bound to put this wall back free of charge as far as it appears necessary, it 
 being understood, however, that this removal shall, at all events, be a small one 
 only. On this part of the river bank, godowns or shanties made of bamboo 
 matting likely to shut oil light and view from the High School are not to be 
 erected. 
 
 Article IV. — The granary inside the Wall shall be left there without 
 molestation for the time being, without any taxes to be levied thereon. Its com- 
 munication with the river shall be in accordance, with the land regulations to be 
 issued in due course, but shall otherwise be unhampered. 
 
 Chinese native craft loaded with rice for the granary may load and unload 
 there without payment of any taxes or fees. 
 
 Article V. — The building adjoining the granary and containing a mortuary 
 for Chinese officials from other provinces shall be left unmolested forever, with- 
 out taxes to be levied thereon. Religious ceremonies held there at fixed dates 
 must not be interfered with, if they do not violate the regulations for order 
 and peace in the Concession to be issued later on. 
 
 Article VI. — The cemetery of the Canton, Fukien and Chekiang Guilds
 
 48 CHINA TREATIES AND AGREEMENTS 
 
 lying within the area assigned for the Concession shall so far as covered by 
 tombs be left unmolested, nor shall sacrificial ceremonies for the dead on this 
 place be in any way interfered with. Taxes shall not be levied thereon, nor 
 shall it be possible to force the Guilds to sell it. However, they shall see that 
 on the eastern side the place is walled in by an enclosure having a big gate, 
 which allows of free passage in and out. 
 
 Article VII. — Within the Concession and outside the Wall there is a drain 
 coming from the southern marsh, which is to remain under Chinese administra- 
 tion. The same applies also to such dredging thereof as may be required from 
 time to time. Merchandise passing this canal shall not be taxed by the Ger- 
 man authorities. 
 
 Article VIII. — Chinese shall be allowed to settle in the German Con- 
 cession in agreement with the Regulations governing the purchase of land to 
 be issued in due course. 
 
 Article IX. — The expropriation of Chinese residing or owning land on 
 the area now leased in perpetuity to Germany becoming necessary on con- 
 clusion of this Agreement, shall be carried out by the Chinese authorities, inas- 
 much as the German Government does not acquire this Concession from the 
 landowners but from the Chinese Government. Accordingly the local authori- 
 ties shall have to apply force, in case a person is unwilling to sell his land 
 or property voluntarily. 
 
 Article X. — A single and uniform compensation fee of Taels 75 per 
 mou will be paid against voucher to the Chinese authorities by the Imperial 
 German Consul in Tientsin for all the land contained in the Concession, re- 
 gardless of the situation of the various plots. 
 
 As to all the alluvial land by the river-side belonging to the Chinese Govern- 
 ment to the east of the road running along the river and forming the eastern 
 boundary of the cemetery and of the compounds of the Fukien, Canton and 
 Chekiang Guilds, and of the mortuary and the granary, and which, farther on, 
 leads from the Po-wen-shu-yuan along the river to the village Hsiao Liu Chuang, 
 although this also is to be surveyed, it shall be exempt from compensation. 
 
 In addition, the entire land of the Public Works Office is ceded free of 
 charge to Germany on the understanding, however, that Germany transfers, in 
 exchange, also free of charge, another plot of land to the Works Office to carry 
 on their business. 
 
 Article XI. — The fixing of the expropriation value of houses within the 
 German Concession is reserved to a German-Chinese Commission to be specially 
 appointed to this end. This Commission shall, however, be guided in the decision 
 of those questions by the procedure as laid down in the regulations referring 
 to the French Concession, as may be taken from the archives, — on no ac- 
 count, however, yielding to exaggerated demands of the landowners. If there 
 are particularly well-built houses, fair valuation shall be taken into special 
 consideration. 
 
 Article XII. — The land in the Concession is to be evacuated on the expira- 
 tion of three months after payment. As regards houses occupied by Chinese 
 they shall, in consideration of the imminent cold season when it is difficult to
 
 NUMBER 1895/9: OCTOBER 30, 1895 49 
 
 abandon same, not be evacuated until three months after payment has been 
 made, said payment to take place on the opening of the river in the coming 
 spring. For removal fees, 10 Taels shall be paid by the German authorities to 
 each family. 
 
 Article XIII. — Tombs, wherever found in the area intended for the Ger- 
 man Concession, shall not be removed by the Germans themselves, but shall be 
 left in the condition hitherto prevailing. In case the descendants themselves 
 agree upon the removal of a tomb the Germans shall pay one Tael per tomb 
 for removal expenses. 
 
 Article XIV. — Payment having been made for a plot of land sold, the 
 former Chinese owner shall send in to the Chinese authorities, for the affixing 
 of the official seal, a contract of sale concerning transfer of the plot to German 
 hands, with details of boundaries and size of the plot, to be forwarded in due 
 course to the German Consul for safekeeping. 
 
 Article XV. — The Administration of the German Concession shall pay 
 annually to the Chinese Government an amount of 1000 big cash as land tax per 
 moil of land transferred, in accordance with the French Concession Agree- 
 ment, this payment to be made in advance on the 15th day of each twelfth moon 
 for the following year. The amount is to be handed over to the office of the 
 City Magistrate by the German Consul. The liability to payment of this land 
 tax begins at the moment of the purchase made by the German authorities. 
 
 Article XVI. — Immediately on the signing of this Agreement, the Governor 
 General and the Superintendent of Trade of the Northern Ports will issue a 
 proclamation making known the bestowal of the Concession on the German 
 Government. 
 
 Article XVII. — The present Agreement shall be signed and stamped 
 with the official seals on quintuplicate copies, issued in both the German and the 
 Chinese languages, by the officials specially detailed by the Superintendent of 
 Trade of the Northern Ports, on one side, and by the Imperial German Consul 
 in Tientsin, on the other. 
 
 Recipients of a copy: 
 
 The Tsung-li Yamen, 
 
 The Superintendent of Trade, 
 
 The Imperial German Minister at Peking, 
 
 The Taotai and Superintendent of the Tientsin Maritime Customs, 
 
 The Imperial German Consul at Tientsin. 
 
 ADDITIONAL RULES. 
 
 Article A. — Against the transfer of the part lying between the com- 
 pound of the firm of Forbes & Company and the compounds of the aforesaid 
 Guilds, a protest has been lodged with the Peking Government by the Minister 
 of the United States of America. In the event of this protest being dropped 
 by the Government of the United States, the northern boundary of the German 
 Concession shall be traced in such a manner that the road running along the 
 southern boundary of the compound belonging at present to the firm of Forbes 
 & Company between the river and Taku Road forms the northern boundary.
 
 50 CHINA TREATIES AND AGREEMENTS 
 
 In this event the prices fixed in Article X shall be binding also for an 
 eventual expropriation of the area at present claimed by the American Minister. 
 
 Chinese men-of-war shall, as heretofore, be allowed to moor at the land- 
 ing-stage south of the compound of Forbes & Company and north of the com- 
 pound belonging to the Guilds, without paying to Germany any fees or taxes. 
 
 Article B. — If the Imperial German authorities intend road building on 
 the area assigned to them, the owners of tombs lying in the alignment of these 
 streets shall by negotiations with the local authorities be induced to have them 
 removed. If in this connection tombs of notable families are concerned, which 
 they on no account are willing to remove, ways and means must be found to 
 alter somewhat the course of the street. 
 
 Ninety Five, corresponding to the 13th day of the 9th moon of the 21st year of 
 Kuang Hsii, Chinese date. 
 
 Done at Tientsin, this 30th of October, One Thousand Eight Hundred and 
 [l. s.] (Sgd.) voN Seckendorff, 
 
 Imperial Consul. 
 [Two Chinese signatures and seal.] 
 
 NUMBER 1895/10. 
 
 JAPAN AND CHINA. 
 
 Convention for the retrocession by Japan to China of the southern portion of 
 the Province of Feng-Tien (i.e., the Liaotung Peninsula.)*— November 8, 
 1895. 
 
 His Majesty the Emperor of Japan and His Majesty the Emperor of China, 
 desiring to conclude a Convention for the retrocession by Japan of all the south- 
 ern portion of the province of Feng-Tien to the sovereignty of China, have for 
 that purpose named as Their Plenipotentiaries, that is to say : 
 
 His Majesty the Emperor of Japan — Baron Hayashi Tadasu, Shoshii, Grand 
 Cross of the Imperial Order of the Sacred Treasure, Grand Officer of the Im- 
 perial Order of the Rising Sun, Minister Plenipotentiary and Envoy Extraordi- 
 nary 
 
 and His Majesty the Emperor of China — Li Hung-Chang, Minister Pleni- 
 potentiary, Senior Tutor of the Heir-Apparent, Senior Grand Secretary of State 
 and Earl of the First Rank, 
 
 Who, after having communicated to each other their full powers, which were 
 found to be in good and proper form, have agreed upon the following Articles : 
 
 *Text as reprinted in Rockhill, p. 26, from B. & F. State Papers, vol. 87, p. 1195, with 
 the addition of the Preamble as printed in Rccueil, p. 89. Printed also in Hertslet, p. 370, 
 and Am. Int. Laiv Journal, Supplement, 1907, p. 384. See Note to this document, post. p. 52.
 
 NUMBER 1895/10: NOVEMBER 8, 1895 51 
 
 Article I. — Territory retroceded. — Japan retrocedes to China in perpe- 
 tuity and full sovereis2;nty the southern portion of the Province of Feng-Tien, 
 which was ceded to Japan under Article II of the Treaty of Shimonoseki of the 
 17th day of the 4th month of the 28th year of Meiji, corresponding to the 23rd 
 day of the 3d month of the 21st year of Kuang Hsii, together with all fortifica- 
 tions, arsenals and public property thereon at the time the retroceded territory is 
 completely evacuated by the Japanese forces in accordance with the provisions 
 of Article III of this Convention, that is to say, the southern portion of the 
 Province of Feng-Tien from the mouth of the River Yalu to the mouth of the 
 River An-ping, thence to Feng Huang Ch'eng, thence to Haicheng, and thence 
 to Ying-kow ; also all cities and towns to the south of this boundary and all 
 islands appertaining or belonging to the Province of Feng-Tien situated in the 
 eastern portion of the Bay of Liao-Tung and in the northern part of the Yellow 
 Sea. Article III of the said Treaty of Shimonoseki is in consequence suppressed, 
 as are also the provisions in the same Treaty with reference to the conclusion 
 of a Convention to regulate frontier intercourse and trade. 
 
 II. — Compensation in lieu of territory. — As compensation for the retro- 
 cession of the southern portion of the Province of Feng-Tien, the Chinese Gov- 
 ernment engage to pay to the Japanese Government 30,000,000 Kuping taels on 
 or before the 16th day of the 11th month of the 28th year of Meiji, correspond- 
 ing to the 30th day of the 9th month of the 21st year of Kuang Hsii. 
 
 III. — Mode of payment. — Within three months from the day on which 
 China shall have paid to Japan the compensatory indemnity of 30,000,000 Kuping 
 taels provided for in Article II of this Convention, the retroceded territory shall 
 be completely evacuated by the Japanese forces. 
 
 IV. — Immunity to inhabitants. — China engages not to punish in any man- 
 ner nor to allow to be punished those Chinese subjects who have in any manner 
 been compromised in connection with the occupation by the Japanese forces of the 
 retroceded territory. 
 
 V. — English text authoritative.— The present Convention is signed in 
 duplicate, in the Japanese, Chinese, and English languages. All these texts 
 have the same meaning and intention, but in case of any differences of inter- 
 pretation between the Japanese and Chinese texts, such differences shall be de- 
 cided by reference to the English text. 
 
 VI. — The present Convention shall be ratified by His Majesty the Emperor 
 of Japan and His Majesty the Emperor of China, and the ratifications thereof 
 shall be exchanged at Peking within twenty-one days from the present date.f 
 
 In witness whereof the respective Plenipotentiaries have signed the same 
 and have afifixed thereto the seal of their arms. 
 
 Done at Peking, this 8th day of the 11th month of the 28th year of Meiji, 
 corresponding to the 22nd day of the 9th month of the 21st year of Kuang Hsii. 
 
 [l. s.] Hayashi Tadasu, 
 
 [l. s.] Li Hung-Chang. 
 
 t Ratifications exchanged at Peking, November 29, 1895.
 
 52 CHINA TREATIES AND AGREEMENTS 
 
 PROTOCOL. 
 
 In view of the insufficiency of time to effect a formal exchange of the 
 ratifications of the Convention between Japan and China signed this day respect- 
 ing the retrocession of the Peninsula of Feng-Tien, before the date named in the 
 said Convention for certain stipulations thereof to take effect, the Government of 
 His Majesty the Emperor of Japan and the Government of His Majesty the 
 Emperor of China, in order to prevent the possibility of delay in putting into exe- 
 cution the several provisions of the said Convention, have, through their re- 
 spective Plenipotentiaries, agreed upon the following stipulations : 
 
 The Governments of Japan and China shall, within the period of five days 
 after the date of this Protocol, announce to each other through the under- 
 signed, their respective Plenipotentiaries, that the said Convention has received 
 the approval of His Majesty the Emperor of Japan and His Majesty the Em- 
 peror of China, respectively, and thereupon the said Convention in all its parts 
 shall come into operation as fully and effectually as if the ratifications thereof had 
 actually been exchanged. 
 
 In witness whereof the respective Plenipotentiaries have signed the same, 
 and have affixed thereto the seal of their arms. 
 
 Done at Peking, this 8th day of the 11th month of the 28th year of Meiji, 
 corresponding to the 22nd day of the 9th month of the 21st year of Kuang Hsii. 
 
 [l. s.] Hayashi Tadasu. 
 
 [l. s.] Li Hung-Chang. 
 
 Note. 
 
 In connection with this convention see the Treaty of peace between China and Japan 
 of April 17, 1895 (No. 1895/3, ante) ; see also the Convention for the lease of the Liao- 
 tung Peninsula to Russia, March 27, 1898 (No. 1898/5, post), and Article 5 of the Treaty of 
 Peace between Russia and Japan, September 5, 1905 (No. 1905/8, post). 
 
 Hertslet (p. 369) also gives the following translation of a Japanese Proclamation dated 
 May 10th, 1895: 
 
 Japanese Imperial Proclamation regarding Retrocession of Liaotung Peninsula. — 
 
 May 10, 1895. 
 
 " We recently, at the request of the Emperor of China, appointed Plenipotentiaries for 
 the purpose of conferring with the Ambassadors sent by China and of concluding with them 
 a Treaty of Peace between the two Empires. Since then the Governments of the two Em- 
 pires of Russia and Germany and of the French Republic, considering that the permanent 
 possession of the ceded districts of the Feng-Tien Peninsula by the Empire of Japan 
 would be detrimental to the lasting peace of the Orient, have united in a simultaneous 
 recommendation to our Government to refrain from holding these districts permanently. 
 
 " Earnestly desirous as we always are for the maintenance of peace, nevertheless we 
 were forced to commence hostilities against China for no other reason than our sincere 
 desire to secure for the Orient an enduring peace. The Governments of the three Powers 
 are, in offering their friendly rcommcndation. similarly actuated by the same desire, and 
 we, out of our regard for peace, do not hesitate to accept their advice. Moreover, it is 
 not our wish to cause suffering to our people, or to impede the progress of the national 
 destiny by embroiling the Empire in new complications, and thereby imperiling the situa- 
 tion and retarding the restoration of peace. 
 
 " China has already shown, by the conclusion of the Treaty of Peace, the sincerity of 
 her repentance for her breach of faith with us, and has made manifest to the world 
 our reasons and the object we had in view in waging war with that Empire. 
 
 " Under these circumstances we do not consider that the honour and dignity of the Em- 
 pire will be compromised by resorting to magnanimous measures, and by taking into 
 consideration the general situation of affairs.
 
 NUMBER 1895/10: NOVEMBER 8, 1895: NOTE 53 
 
 " We have therefore accepted the advice of the friendly Powers and have commanded 
 our Government to reply to the Governments of the three Powers to that effect. 
 
 " We have specially commanded our Government to negotiate with the Chinese Gov- 
 ernment respecting all arrangements for the return of the peninsular districts. The ex- 
 change of the ratifications of the Treaty of Peace has now been concluded, the friendly 
 relations between the two Empires have been restored, and cordial relations with all other 
 Powers have been strengthened. 
 
 "We therefore command all our subjects to respect our will, to take into careful 
 consideration the general situation, to be circumspect in all things, to avoid erroneous 
 tendencies, and not to impair or thwart the high aspirations of our Empire. 
 
 (Imperial sign-manual.) 
 " (Countersigned by all the Ministers of State.) 
 
 "May 10, 1895." 
 
 In Recueil (p. 6Z) are printed the French texts of several documents, the tenor of 
 which is sufficiently indicated by the following translation of an identic note addressed to 
 the Japanese Ministry for Foreign Affairs, by the French, German and Russian Ministers on 
 October 18, 1895, and acknowledged by it under date of the following day: 
 
 Identic Note of French, German and Russian Ministers to Japanese Minister for Foreign 
 Affairs regarding Retrocession of Liaotung Peninsula. — October i8, 1895. 
 
 "The undersigned Envoy Extraordinary and Minister Plenipotentiary of His Majesty 
 the Emperor of Russia has not failed to bring to the knowledge of his Government the 
 two Declarations that His Excellency the Marquis Saionzi, Acting Minister for Foreign 
 Affairs, has made to him in the name of his Government, namely: 
 
 "a — Under date of July 19th: 'That the Government of His Majesty the Emperor 
 of Japan recognizes the Straits of Formosa as being a great sea highway of the nations, 
 and that those Straits are in consequence beyond its exclusive control or appropriation. 
 The Government of His Majesty the Emperor of Japan binds itself not to cede to any 
 Power the Islands of Formosa and the Pescadores'; 
 
 "and B— Under date of October 7th: 'That the Government of His Majesty the Em- 
 peror of Japan has decided (1) to reduce to thirty million taels the amount of the 
 indemnity in compensation for the retrocession of the Liaotung (Feng-Tien) Peninsula, and 
 (2) not to make the conclusion of the Treaty of commerce and navigation with China a 
 condition of the evacuation of the said Peninsula; and to effect such evacuation within 
 a period of three months from the date of the full payment by China of the said in- 
 demnity of thirty million taels.' 
 
 " The undersigned has been advised that the Government of his August Master, His 
 Majesty the Emperor, taking note of the Declarations above cited, can only felicitate the 
 Government of His Majesty the Emperor of Japan upon this new proof of its wisdom 
 and moderation. 
 
 " In bringing the foregoing, under the instruction of his Government, to the knowledge 
 of His Excellency the Acting Minister for Foreign Affairs, the undersigned begs him 
 to be so good as to acknowledge the receipt of the present note, and avails himself of 
 this occasion to renew to him the assurance of his highest consideration. 
 
 " Tokio, October 6/18, 1895. 
 
 " (Sgd.) HiTROVo."
 
 54 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1896/1. 
 
 FRANCE AND GREAT BRITAIN. 
 
 Declaration with regard to the Kingdom of Siam and other matters {advantages in 
 Yilnnan and Ssechiian, etc.)* — January 15, 1896. 
 
 The Undersigned, duly authorized by their respective Governments, have 
 signed the following Declaration : — 
 
 I. — British and French spheres of influence in Siam. — The Governments 
 of Great Britain and France engage to one other that neither of them will, 
 without the consent of the other, in any case, or under any pretext, advance 
 their armed forces into the region which is comprised in the basins of the 
 Petcha Bouri, Meiklong^ Menam and Bang Pa Kong (Petriou) Rivers and their 
 respective tributaries, together with the extent of coast from Muong Bang Tapan 
 to Muong Pase, the basins of the rivers on which those two places are situated, 
 and the basins of the other rivers, the estuaries of which are included in that 
 coast ; and including also the territory lying to the north of the basin of the 
 Menam, and situated between the Anglo-Siamese frontier, the Mekong River, 
 and the eastern watershed of the Me Ing. They further engage not to acquire 
 within this region any special privilege or advantage which shall not be enjoyed in 
 common by, or equally open to. Great Britain and France and their nationals and 
 dependents. These stipulations, however, shall not be interpreted as derogat- 
 ing from the special clauses which, in virtue of the Treaty concluded on the 
 3rd October, 1893, between France and Siam, apply to a zone of 25 kilom. on the 
 right bank of the Mekong and to the navigation of that river. 
 
 II. — Independence of Siam. — Nothing in the foregoing clause shall hinder 
 any action on which the two Powers may agree, and which they shall think 
 necessary in order to uphold the independence of the Kingdom of Siam. But they 
 engage not to enter into any separate Agreement permitting a third Power 
 to take any action from which they are bound by the present Declaration them- 
 selves to abstain. 
 
 III. — Mekong thalweg limit. — From the mouth of the Nam Huok north- 
 wards as far as the Chinese frontier the thalweg of the Mekong shall form the 
 limit of the possessions or spheres of influence of Great Britain and France. It is 
 agreed that the nationals and dependents of each of the two countries shall not 
 exercise any jurisdiction or authority within the possessions or sphere of influ- 
 ence of the other. 
 
 Police of islands in Mekong. — The police of the islands in this part of the 
 river which are separated from the British shore by a branch of the river shall, 
 
 *Text as reprinted in Rockhill, p. 28, from B. & F. State Papers, Vol. 88, p. 13. 
 Printed also in British Treaty Series, No. 5 (1896) ; Hertslet. p. 583; Rccueil, p. 94. 
 
 In connection with Article 4 of this declaration see the Anglo-Chinese Convention rela- 
 tive to Burmah and Thibet, March 1, 1894 (No. 1894/1, ante) and the Franco-Chinese Com- 
 plementary Convention for the delimitation of the boundary between Tonkin and China, June 
 20, 1895 (No. 1895/4, ante).
 
 NUMBER 1896/2: MARCH 21, 1896 55 
 
 SO long as they are thus separated, be intrusted to the French authorities. The 
 fishery shall be open to the inhabitants of both banks. 
 
 IV. — No exclusive commercial and other privileges in Yunnan and 
 Szechuen. — The two Governments agree that all commercial and other privileges 
 and advantages conceded in the two Chinese provinces of Yiinnan and Szechuen 
 either to Great Britain or France, in virtue of their respective Conventions with 
 China of the 1st March, 1894, and the 20th June, 1895, and all privileges and 
 advantages of any nature which may in the future be conceded in these two 
 Chinese provinces, either to Great Britain or France, shall, as far as rests with 
 them, be extended and rendered common to both Powers and to their nationals 
 and dependents, and they engage to use their influence and good offices with 
 the Chinese Government for this purpose. 
 
 V. — Delimitation of territory west of Lower Niger. — The two Govern- 
 ments agree to name Commissioners delegated by each of them, who shall be 
 charged to fix by mutual agreement, after examination of the titles produced 
 on either side, the most equitable delimitation between the British and French 
 possessions in the region situated to the west of the Lower Niger. 
 
 VI. — Revision of general convention of July 19, 1875, with Tunis, agreed 
 to. — In conformity with the stipulations of Article XL of the General Conven- 
 tion concluded between Great Britain and the Regency of Tunis on the 19th 
 July, 1875, which provides for a revision of that Treaty " in order that the two 
 Contracting Parties may have the opportunity of hereafter treating and agreeing 
 upon such other arrangements as may tend still further to the improvement of 
 their mutual intercourse, and to the advancement of the interests of their re- 
 spective people," the two Governments agree at once to commence negotiations 
 for replacing the said General Convention by a new Convention, which shall cor- 
 respond with the intentions proposed in the Article above referred to. 
 
 Done at London, the 15th January, 1896. 
 
 [l. s.] Salisbury. 
 
 [l. s.] Alph. de Courcel. 
 
 NUMBER 1896/2. 
 
 GERMANY (Deutsche-Asiatische Bank), GREAT BRITAIN (Hongkong and 
 Shanghai Banking Corporation) AND CHINA. 
 
 Agreement for the Chinese Imperial Government Five Per Cent Sterling Loan 
 
 of 1896.*— March 23, 1896. 
 
 This agreement is made between the Tsungli Yamen Peking acting on behalf 
 of the Imperial Government of China of the one part and the Hongkong and 
 
 * In connection with this agreement see also Agreement for the Chinese Imperial Gov- 
 ernment 41/2% Gold Loan of 1898, signed March 1, 1898 (No. 1898/3, post).
 
 56 CHINA TREATIES AND AGREEMENTS 
 
 Shanghai Banking Corporation and Deutsch-Asiatische Bank representing an 
 Anglo-German Syndicate hereinafter called " the Syndicate " — of the other part. 
 
 Whereas a Preliminary Agreement for an Imperial Chinese Government five 
 per cent gold loan was executed by the above contracting parties on the eleventh 
 day of March one thousand eight hundred and ninety six, 
 
 And whereas on the seventeenth day of March one thousand eight hundred 
 and ninety six telegraphic advice was received from the Syndicate in Europe 
 that they are prepared to issue the loan on the conditions specified in that pre- 
 liminary agreement, 
 
 And whereas in terms of clause thirteen of the preliminary agreement an 
 Imperial Edict has been issued on the first day of the second month of the 
 twenty second year of the Emperor Kuang-Hsu being the fourteenth day of 
 March one thousand eight hundred and ninety six sanctioning the loan on the 
 terms named in the Preliminary Agreement copies of which Imperial Edict 
 have been officially handed by the Tsungli Yamen to the Minister for Germany 
 and to the Charge d' Affaires for Great Britain in Peking. 
 It is now agreed as follows : 
 
 1. — The Imperial Government of China authorizes the Syndicate to issue 
 an Imperial Chinese Government five per cent Sterling loan for the amount of 
 sixteen million pounds Sterling. 
 
 2. — The loan shall be dated the first day of April one thousand eight hun- 
 dred and ninety six and shall be entitled the " Chinese Imperial Government 
 five per cent Sterling loan of one thousand eight hundred and ninety six." The 
 loan shall be issued in two series, the first of which shall be for ten million 
 pounds Sterling and shall be issued as soon as possible after the signing of this 
 agreement. The balance of the loan shall be issued not later than the first of 
 October of the present year, the two series to be extinguishd simultaneously. 
 
 3. — The rate of interest for the loan shall be five per cent per annum, on the 
 nominal principal, that is shall be eight hundred thousand pounds per annum 
 and shall be paid by the Chinese Government to the Syndicate in monthly instal- 
 ments calculated from the first day of April one thousand eight hundred and 
 ninety six and in accordance with the amounts and dates of the Schedule attached 
 to this Agreement. 
 
 4. — The term of the loan shall be thirty six years, and repayment of prin- 
 cipal shall be made by a yearly sinking-fund of one hundred and sixty six thou- 
 sand nine hundred and fifty two pounds Sterling which shall be paid by the 
 Chinese Government to the Syndicate in monthly instalments, in accordance with 
 the amounts and dates of the Schedule attached to this Agreement. During 
 the term of thirty six years the amortisation shall not be increased nor the loan 
 converted nor redeemed by the Chinese Government. 
 
 5. — The total monthly payment due for amortisation and interest and 
 amounting to eighty thousand five hundred and seventy-nine pounds six shillings 
 and eight pence shall be made in equal shares and in accordance with the amounts 
 and dates of the Schedule attached to this agreement, to the Hongkong and 
 Shanghai Banking Corporation and Deutsch-Asiatische Bank by the Imperial 
 Government of China who shall hand to those banks at their branches in Shang-
 
 NUMBER 1896/2 : MARCH 23, 1896 57 
 
 hai on the date named in the Schedule, funds in Shanghai Sycee sufficient to 
 meet each such payment in sterHng in Europe, the rate of exchange for which 
 shall be settled with those two banks on the same day. The Syndicate retains 
 the right to re-arrange the service of interest and repayments of principal to the 
 Bondholders on such terms as it deems advisable. 
 
 6. — The Syndicate shall issue and is hereby authorised to issue, to sub- 
 scribers of the loan, bonds for the total amount of the loan in pounds Sterling, 
 in such form, in such languages and for such amounts as shall appear advisable 
 to the Syndicate and these bonds shall be sealed by the Minister for China in 
 London or Berlin as evidence that the Imperial Government of China is bound 
 thereby. 
 
 7. — This entire loan of sixteen million pounds, subject to previous loans 
 charged on the same security and not yet redeemed, shall be charged on the 
 Imperial Maritime Customs Revenue of China and shall have priority both 
 regarding principal and interest over all future loans, charges and mortgages so 
 long as this loan or any part thereof shall be unredeemed. No loan, charge or 
 mortgage shall be raised or created which shall take precedence of or be on 
 equality with this loan or which shall in any manner lessen or impair its security 
 over the said Customs Revenue so far as required for the annual service of this 
 loan and any future loan charge or mortgage charged on the said Customs 
 revenue shall be made subject to this loan and it shall be so expressed in every 
 agreement for any such future loan charge or mortgage. In the event of the 
 Imperial Maritime Customs Revenue of China, at any time proving insufficient 
 to support the service of the interest or repayment of the principal of this loan 
 the Imperial Chinese Government will provide the funds required for the same 
 from other sources. The administration of the Imperial Maritime Customs of 
 China shall continue as at present constituted, during the currency of this 
 loan. 
 
 8. — This loan shall be further secured by Customs Bonds for the total 
 amount in Sterling of the loan principal and interest, issued and sealed by the 
 Tsung-li-yamen and the Board of Revenue, Peking, and countersigned by the 
 Inspector General of Customs and all such Customs Bonds shall contain the 
 priority clause number seven of this Agreement. These Customs bonds shall be 
 handed in equal shares to the Imperial German Legation, Peking, and the Hong- 
 kong and Shanghai Banking Corporation before payment to the Chinese Govern- 
 ment of the proceeds of the loan. 
 
 9. — This loan shall also be further collaterally secured by deposit with the 
 Hongkong and Shanghai Banking Corporation and Deutsch-Asiatische Bank 
 of sterling Customs Bonds equal in value altogether to the total amount of the 
 loan, principal and interest, sealed by the Chinese Superintendent of Customs 
 at Shanghai and by the Viceroy of the Liang Kiang Provinces and counter- 
 signed by the foreign Commissioner of Customs at Shanghai. These Customs 
 bonds shall be handed to the Hongkong and Shanghai Banking Corporation and 
 Deutsch-Asiatische Bank at their branches in Shanghai in equal shares on or 
 before the fifteenth day of April next and in the event of the money to meet a 
 payment of interest and/or sinking fund, not being handed to the Hongkong 
 and Shanghai Banking Corporation and Deutsch-Asiatische Bank at their
 
 58 ■ CHINA TREATIES AND AGREEMENTS 
 
 Branches in Shanghai on due date shall be available for payment of Imperial 
 Maritime Customs duties at all or any of the treaty ports of China, the authori- 
 ties of which shall be instructed by Imperial Edict accordingly or shall be avail- 
 able in such other manner as stated in the Bonds. 
 
 10. — No further loans shall be issued by the Chinese Imperial Government 
 until a period of six months has elapsed after the issue of the total amount of 
 this loan. 
 
 11. — All bonds and coupons and payments made and received in connec- 
 tion with the service of this loan shall be exempt from Chinese taxes and im- 
 posts forever. 
 
 12. — All details necessary for the prospectus and connected with the service 
 to the bondholders of the interest and repayments of the principal of this loan, 
 not herein explicitly provided for, shall be left to the arrangement of this Syndi- 
 cate who shall issue and are hereby authorized to issue a prospectus of the loan 
 as soon as possible after the signing of this agreement. The Imperial Govern- 
 ment of China will instruct the Chinese Ministers in London and Berlin in com- 
 munication with the Commissioner of Chinese Customs in London to co-operate 
 with the representatives of the Syndicate in any matters requiring conjoint 
 action ; and the Chinese Minister in Berlin will sign the prospectus of the loan as 
 required by the rules of the Berlin Stock-Exchange. 
 
 13. — The Syndicate hereby takes the loan firm at the price of ninety-four 
 per cent net on the nominal principal to the Chinese Government and will hold 
 the net proceeds namely fifteen millions and forty thousand pounds sterling to 
 the order of the Chinese Government in London as soon as possible after the 
 signing of this Agreement, and in such instalments and at such dates as the 
 provisions of the Prospectus shall admit. The sum of eight million pounds 
 sterling shall be made so available not later than the sixth day of May 
 next. 
 
 14. — In the event of any extraordinary political or financial crisis taking 
 place in Europe within six months by which the markets and the prices of exist- 
 ing Government stocks are so violently afifected as to render the successful 
 issue of the balance of this loan impossible on the terms herein named the 
 Syndicate have the right to withdraw from their contract with the Chinese Im- 
 perial Government which shall in that case become null and void so far as regards 
 the balance of this loan then unissued. 
 
 15. — ^The provisions of this Agreement shall immediately after signature 
 and before the issue to the public of the prospectus of the loan, be confirmed and 
 sanctioned by an Imperial Edict, which shall be of^cially communicated by the 
 Tsungli Yamen to the Minister for Germany and Charge d'Afifaires for Great 
 Britain in Peking. 
 
 16. — The English and German Syndicates shall take the loan in equal shares 
 and without responsibility for each other. 
 
 17. — Triplicate sets of this agreement are executed in English and Chinese, 
 one set to be retained by each contracting party. In the event of any doubt 
 arising regarding the interpretation of the contract the English text shall be 
 accepted as the standard. 
 
 18. — Signed by the contracting parties this 10th day of the second month
 
 NUMBER 1896/3: JULY 11, 1896 
 
 59 
 
 of the twenty second year of the Emperor Kuang Hsu, being the twenty third day 
 of March one thousand eight hundred and ninety six Western Calendar. 
 
 For the Hongkong and Shanghai 
 Banking Corporation, 
 
 (Sgd.) E. G. HiLLIER, 
 
 Agent. 
 
 For the Deutsch-Asiatische Bank, 
 
 (Sgd.) Franz Urbig. 
 
 Schedule of interest and sinking fund payments. 
 
 Date. 
 
 Interest. 
 
 1896. 
 
 August 20 
 
 September 5. . 
 September 20. 
 
 October 20. . . 
 November 20. 
 December 20. 
 
 £ s. d. 
 
 U2,,Z3i 6 8 
 
 U3,Z2,i 6 8 
 
 Ui,iZi 6 8 
 
 66,666 13 4 
 66,666 13 4 
 66,666 13 4 
 
 Sinking fund. 
 
 £ s. d. 
 
 27,825 6 8 
 
 27,825 6 8 
 
 27,825 6 8 
 
 13,912 13 4 
 13,912 13 4 
 13,912 13 4 
 
 Total. 
 
 £ s. 
 161,158 13 
 161,158 13 
 161,158 13 
 
 d. 
 4 
 4 
 4 
 
 « 483.476 
 
 80,579 6 
 80.579 6 
 80,579 6 
 
 o Less interest at 5 per cent on £6,000,000 calculated from first April to the first day of 
 the month of its issue, Western Calendar. 
 
 The same payment of eighty thousand five hundred and seventy nine pounds 
 six shilHngs and eight pence shall be repeated on the twentieth day of each month 
 of the year one thousand eight hundred and ninety seven Western Calendar and 
 of each succeeding year until the twentieth day of March one thousand nine 
 hundred and thirty two inclusive that being the last payment when the loan will 
 be extinguished. 
 
 (Sgd.) E. G. HiLLIER. 
 
 (Sgd.) Franz Urbig. 
 
 NUMBER 1896/3. 
 
 DENMARK (Great Northern Telegraph Company), GREAT BRITAIN 
 (Eastern Extension, Australasia and China Telegraph Company, Ltd.) AND 
 CHINA. 
 
 Convention regulating the relations hettveen the Chinese Telegraph Administra- 
 tion and the companies.* — July 11, 1896. 
 
 The Imperial Chinese Telegraph Administration, hereinafter called the Ad- 
 ministration, on the one part, and the Great Northern Telegraph Company of 
 
 * Text as printed in Herts! et, p. 1140. Printed also in Recueil, p. 183. In connection 
 with this convention see the following telegraph conventions : With Great Northern, May
 
 60 CHINA TREATIES AND AGREEMENTS 
 
 Copenhagen, and the Eastern Extension, Australasia, and China Telegraph 
 Company (Limited), hereinafter called the Companies, on the other part, being 
 desirous of facilitating international telegraphic communication, have decided to 
 conclude a Convention, with a view to regulate the relations between the Ad- 
 ministration and the Companies. Consequently, the following stipulations have 
 been agreed on, and, under date below given, signed by the Administration 
 represented by its Director-General Sheng Hsuen Huai, and by the Companies 
 represented by their respective managers in China, viz., Mr. J. Henningsen and 
 Mr. W. Judd, all three duly furnished with full and special powers for this 
 purpose. 
 
 Article I. — 1. The total charge per word fixed in francs in the annexed 
 Table stipulated in Article XI of the present Convention for telegrams ex- 
 changed terminally between China, on the one side, and Europe (Russia excepted )y 
 America, and, when transiting Europe, all other countries beyond Europe on 
 the other side, is to be the same by the routes of the Companies via India 
 (Madras), and via Russia in Asia, as by the routes of the Administration via 
 Russia in Asia. 
 
 2. This equalisation of total charges shall be effected by the necessary regu- 
 lation of the Administration's terminal charge via Russia in Asia, and of the 
 Companies' cable charges respectively between China and India (Madras), and 
 between China and Russia in Asia. 
 
 3. For the same telegrams as described under Section I in this Article via 
 other routes, present and future, across the land frontiers of China the Adminis- 
 tration undertakes, when concluding, renewing, or revising Telegraph Conven- 
 tions, to fix their proportion of the total charges in such manner that the total 
 charges collected for the said telegrams via such routes at the time of the con- 
 cluding, renewing, or revising of such Conventions shall in no case be lower than 
 the total charges collected for the same telegrams when exchanged by the normal 
 routes above described under Section 1 of this Article. 
 
 The Companies on their side undertake a corresponding obligation for the 
 same telegrams via all routes, present or future, established beyond the termini 
 of their systems in India and in Russia in Asia. 
 
 4. The stipulations under Sections 1, 2, and 3 of this Article shall apply 
 equally to telegrams exchanged terminally between the British Colony of Hong 
 Kong, on the one side, and Europe (Russia excepted), America, and, transit- 
 ing Europe, all other countries beyond Europe on the other side. 
 
 5. With regard to the telegrams specified under Sections 1, 3, and 4 of this 
 Article transmitted by other routes, present or future, than those specified under 
 Sections 1 and 3 of this Article, the Administration and the Companies recipro- 
 cally undertake to do all in their power to protect the joint interests established 
 by the present Convention, and to carry to the Joint Purse stipulated in Article 
 II of the present Convention all revenues accruing to the Administration or to 
 the Companies from the said traffic coming under Sections 1 and 3 of this Article, 
 
 13, 1897 (No. 1897/3, post); with Great Northern and Eastern Extension, October 26, 1900 
 (No. 1900/6, post) ; with Great Northern, and with Eastern Extension, October 22, 1902. 
 See also the agreement of the British Government with the Eastern Extension, April 23, 
 1901 (No. 1901/1, post). See also Note to this document, post, p. 67.
 
 NUMBER 1896/3: JULY 11, 1896 61 
 
 and passing any of their lines, excepting the revenue accruing to their lines in 
 Europe. 
 
 II. — 1. The total revenue of the proportions of the total charges of the 
 Administration and of both Companies for all telegrams coming under Article I, 
 Sections 1, 3, and 5, as fixed in the Table stipulated in Article XI of the present 
 Convention, whichever be the route followed, shall be carried to a Joint Purse 
 account and divided between the Contracting Parties in the following propor- 
 tion, viz. : — 
 
 One-third to the Administration, one-third to each of the two Companies, 
 provided always that each of the Contracting Parties shall bear its own working 
 expenses. 
 
 2. Considering this division of revenue the Administration undertakes 
 to levy no additional terminal charge for telegrams specified in Section 1 of 
 Article I of the present Convention, forwarded via the cables of the Com- 
 panies. This also applies to the same telegrams transmitted by the existing route 
 via Saigon-Moulmein, as defined in the Table stipulated in Article XI of the 
 present Convention. 
 
 3. The Administration, as well as the Companies, shall maintain their sec- 
 tions of the routes mentioned in Article I of the present Convention in good 
 condition. 
 
 III. — The Companies renounce the special charges hitherto levied on their 
 telegraph lines by land and sea between the Kowloon boundary and Hong Kong, 
 in accordance with the Agreement dated the 21st January, 1884, between the 
 Administration and the Eastern Extension, Australasia, and China Telegraph 
 Company (Limited) ; and the Administration renounces the special charges 
 hitherto levied on their telegraph lines by land and sea between Woosung and 
 Shanghai and between Sharp Peak and Foochow, in accordance with the Agree- 
 ment dated the 19th May, 1883, between the Administration and the Great 
 Northern Telegraph Company of Copenhagen, and in accordance with Agree- 
 ments dated the 7th May, 1883, and the 17th October, 1884, between the Adminis- 
 tration and the Eastern Extension, Australasia, and China Telegraph Company 
 (Limited). 
 
 IV. — 1. The collection of the charges mentioned in Article I of the present 
 Convention shall take place at the same rate of exchange of the coin in which 
 the charges are collected by the Administration and by the Companies at their 
 stations in China and at Hong Kong. 
 
 2. To this end the Administration and the Companies shall annually at the 
 €nd of the foreign calendar year determine the average value of that coin in 
 francs, and this value shall serve as the rate of exchange for the collection of 
 charges and for the settlement of accounts during the year following. 
 
 3. Should the Administration and the Companies be unable to agree on the 
 average value of that coin in francs, the question shall be referred for settle- 
 ment to the Manager of one of the leading foreign banks at Shanghai. 
 
 V. — For telegrams transiting China, and exchanged between Europe (Rus- 
 sia excepted), America, and, when transiting Europe, all other countries beyond 
 Europe, on the one side, and all other countries on the other side, the Administra-
 
 52 CHINA TREATIES AND AGREEMENTS 
 
 tion undertakes, when concluding, renewing, or revising Telegraph Conventions, 
 to fix a transit charge which shall not be less than its terminal charge at the time 
 collected for telegrams described under Sections 1 and 3 of Article I of the pres- 
 ent Convention. 
 
 VI. — The Contracting Parties recognise the principle of collecting charges 
 and settling accounts at the actual silver equivalent of international charges fixed 
 in gold, and undertake in each case when so requested by the other Administra- 
 tions concerned with whom they have concluded Telegraph Conventions, also to 
 apply this principle to the collection and settlement of such international charges. 
 
 VII. — For international telegrams exchanged by the Companies' cable routes 
 with other countries than those specified in Article I of the present Convention, 
 the Administration undertakes to establish an uniform terminal charge in francs, 
 which shall not be higher than the average of the terminal charges which are 
 fixed, or shall be fixed, for such traffic when sent by the other telegraph routes of 
 China. 
 
 VIII. — 1. The Administration and the Companies undertake to fix equal 
 charges on their respective lines between Shanghai, Foochow, Amoy, Hong 
 Kong, for telegrams exchanged terminally between these ports. 
 
 2. The Administration as well as the Companies undertake to transmit 
 between all the said ports all terminal telegrams handed to their offices, and 
 the total charges collected for these telegrams by the two Contracting Parties 
 shall be divided in the following manner, viz.: — 
 
 The Administration's share is the total of the charges collected for all tele- 
 grams exchanged terminally between Shanghai and Foochow, between Shanghai 
 and Amoy, and between Foochow and Amoy. 
 
 The Company's share is the total of the charges collected for all telegrams 
 exchanged terminally between Hong Kong, on the one side, and Amoy, Foochow, 
 and Shanghai on the other side. 
 
 3. International telegrams other than those provided for in Article II of 
 the present Convention, and which pass between the above four stations, are 
 not comprised in the division stipulated in the present Convention, but each of 
 the Contracting Parties retains its own revenue for such telegrams. However, 
 they agree to fix equal charges for such telegrams. 
 
 IX. — 1. The Administration and the Companies shall at all their con- 
 trolling stations keep correct abstracts of all telegrams specified in Article II and 
 in Article VIII of the present Convention. 
 
 2. A Controller of the Administration at the Companies' stations at Shang- 
 hai, Foochow, Amoy, and Hong Kong, and a Controller of the Companies at the 
 Administration's controlling stations, present and future, shall have free admit- 
 tance to the offices, in order to check and control the correctness of the journals, 
 abstracts, and accounts as far as necessary for the purposes of the present Con- 
 vention. 
 
 3. The appointment of Controllers is in each case subject to the approval 
 respectively of the Administration or the Companies to whom they are ac- 
 credited, which shall also have the right to demand their recall if considered 
 necessary.
 
 NUMBER 1896/3: JULY 11, 1896 63 
 
 4. All the said Controllers of the Companies at the Administration's con- 
 trolling stations shall have their names placed on the registers of their respective 
 nationalities. Each of them shall respect the laws of China, and conform with 
 the Treaties made by their respective countries with the Government of China. 
 But the Administration cannot undertake any responsibility for their personal 
 safety. 
 
 5. They shall respect the authority of the local Manager; and their salaries 
 as well as all other expenses are to be paid by their employers. 
 
 X. — 1. The settlement of accounts for all telegrams exchanged between the 
 Administration and the Companies, as well as of the division of revenue stipu- 
 lated in Article II and in Article VIII of the present Convention, shall be estab- 
 lished monthly at Shanghai, and paid at Shanghai within six weeks after the 
 end of the month in account. 
 
 2. To this end the results of the abstracts of the controlling stations, signed 
 by the Controllers of the two Contracting Parties, stipulated for in Article IX 
 of the present Convention, or by the representative of the Administration at the 
 controlling stations where no Controller of the Companies be actually present, 
 shall be telegraphed to Shanghai, to be entered in the accounts settled there, 
 subject to subsequent revision, after receipt in Shanghai of the said signed 
 abstracts and copies of telegrams abstracted. 
 
 3. The month shall be reckoned according to the European calendar, 
 
 4. Telegrams referring to the settlement and payment of accounts shall be 
 considered as service telegrams, and transmitted free of charge. 
 
 XI. — 1. To the present Convention is annexed a Table signed by the Con- 
 tracting Parties, and showing the charges which shall be applied by the Ad- 
 ministration and by the Companies to telegrams described in Articles II and 
 VIII of the present Convention, as soon as it comes into force, and also 
 the rate of exchange at which the collection of charges and the settlement of 
 accounts shall take place, as well as the amount of contribution to the Joint 
 Purse. 
 
 2. This Table will be subject to revision by the Contracting Parties periodi- 
 cally, and in accordance with the stipulations of the present Convention. 
 
 XII. — The rules laid down in the Service Regulations of the International 
 Telegraph Convention shall be observed with regard to the technical treatment of 
 telegrams exchanged between the Administration and the Companies ; and both 
 Contracting Parties undertake to do all in their power to prevent re-transmission 
 and other circumventions of the rules to the detriment of either party. 
 
 XIII. — As both the Administration and the Companies are under obligations 
 to treat certain Government or press telegrams passing the routes named in Sec- 
 tions 1, 3, and 5 of Article I and Article VIII of the present Convention in an 
 exceptional manner, it is agreed that the proceeds of the proportions of the total 
 charges accruing to the Administration or the Companies shall be carried to the 
 Joint Purse, and divided according to Article II and Article VIII of the present 
 Convention, as shown in the Table stipulated in Article XI of the present Con- 
 vention. 
 
 XIV. — 1. The present Convention cannot be mortgaged, sold, or other-
 
 64 CHINA TREATIES AND AGREEMENTS 
 
 wise transferred, wholly or partly; neither can any creditor or others acquire 
 it wholly or partly, in case of liquidation, compulsory or otherwise. 
 
 2. Any difference arising between the Contracting Parties touching the 
 construction of the present Convention shall be referred for decision to the 
 Governments (or their Legations at Peking) which have ratified it. 
 
 XV. — The Companies shall not extend their present cable system on Chinese 
 territory without the consent of the Administration ; but the following existing 
 Agreements between the Administration and the two Companies are to be ex- 
 tended, to continue in force for the period of the present Convention unaltered, 
 excepting as varied by the present Convention: — 
 
 Agreement between the Administration and the Great Northern Telegraph 
 Company of Copenhagen, dated the 19th May, 1883 ; Agreements between the 
 Administration and the Eastern Extension, Australasia, and China Telegraph 
 Company (Limited), dated the 31st March, 1883, 7th May, 1883, 21st January, 
 1884, and 17th October, 1884. 
 
 XVI. — 1. The present Convention shall be ratified by Tsung-li Yamen, and 
 by the Ministers at Peking for Russia, Great Britain, and Denmark. 
 
 2. It shall be put into execution from the first day of the month follow- 
 ing the date of its ratification, and shall remain in force until the 31st December, 
 1910, and shall thereafter continue in force until six months after one of the 
 Contracting Parties shall have given notice of its intention to modify or to abro- 
 gate it. 
 
 In witness whereof the Undersigned, duly authorized to this effect, have 
 signed the present Convention. 
 
 Done in Shanghai in the French language, in the English language, and in 
 the Chinese language. Three expeditions duly compared and found to be in 
 agreement, have been signed in each of these languages, on the 11th day of the 
 month of July, 1896, corresponding with the 1st day of the 6th moon, of the 
 22nd year of the reign of Kwang Hsu. 
 
 For the Imperial Chinese Telegraph Administration, 
 
 Sheng Hsuen Hum, Director-General. 
 (Seal of Administration.) 
 For the Great Northern Telegraph Company of 
 Copenhagen, 
 
 J. Henningsen, Manager in China. 
 For the Eastern Extension, Australasia, and China 
 Telegraph Company (Limited), 
 
 Walter Judd, Manager in China. 
 Seen and approved : 
 
 Claude M. MacDonald. (Seal of Legation.) 
 
 Her Britannic Majesty's Minister Plenipotentiary. 
 Vu et approuve : 
 
 CoMTE Cassini. (Seal.) 
 
 Ministre de Riissie et de Danemark. 
 
 (Seal of Tsung-li Yamen.)
 
 NUMBER 1896/3: JULY 11, 18% 65 
 
 Table drawn up in Execution of the Stipulation in Article XI of the Convention 
 
 DATED July 11, 1896. 
 
 Charges per Single Word of Ordinary Telegrams. 
 
 1. Total charge for terminal telegrams by the routes defined in Article I, Section 1, 
 of the Convention betv^reen China and Hong Kong, on the one side, and Europe (Russia 
 excepted), on the other side, 8 fr. 50 c, at the rate of exchange of 8 fr. 50 c, equal to 2 dol. 
 75 c. (Mexican), to v^^hich must be added the out-payments beyond Europe. 
 
 This total charge of 8 fr. 50 c. will be reduced to 7 fr. simultaneously with the coming 
 into force of the Tariffs adopted by the International Telegraph Conference at Buda-Pesth, 
 1896. 
 
 2. Transit charge stipulated in Article V of the Convention, 5 fr. 
 
 This charge will be calculated at the rate of exchange stipulated in the Administration's 
 Conventions with other Administrations. 
 
 3. Local charges between the ports of Shanghai, Foochow, Amoy, Hong Kong (Article 
 VIII of the Convention) : — 
 
 (a) Between the ports of Shanghai and Hong Kong, 40 cents of a Mexican dollar. 
 
 (&) Between either of the ports of Shanghai or Hong Kong, on the the one side, 
 and the ports of Amoy and Foochow, on the other side ; and between the ports 
 of Amoy and Foochow, 20 cents of a Mexican dollar. 
 
 (c) Bona fide Chinese telegrams at half the charges stipulated under (a) and (fc). 
 Bona fide Chinese telegrams will be defined from time to time by mutual agree- 
 ment between the Administration and the Companies. 
 
 Contribution to the Joint Purse per Single Word of Ordinary Telegrams. {Article I, 
 Sections 1, 3, and 5; Article XIII of the Convention.) 
 
 1. By routes described in Article I, Section 1, of the Convention, 5 fr., at the rate of 
 exchange of 8 fr. 50 c, equal to 2 dol. 75 c. (Mexican). 
 
 2. By routes described in Article I, Section 3, of the Convention — 
 
 (o) Via cable termini, 5 fr., at the rate of exchange of 8 fr. 50 c, equal to 2 dol. 
 75 c. (Mexican). 
 
 (6) Via land frontiers, 5 fr., at the rate of exchange stipulated in the Administra- 
 tion's Conventions for those junctions for the collection of charges. 
 
 3. By the Companies' cables via Saigon-Moulmein, 2 fr. 42>^ c, at the rate of exchange 
 of 8 fr. 50 c, equal to 2 dol. 75 c. (Mexican). 
 
 4. Chinese Government telegrams exchanged between China, on the one side, and Europe 
 (Russia excepted), America, and, when transiting Europe, all other countries beyond 
 Europe, on the other side, pass at half charges over the cables in Asia of both Companies, 
 and whichever be the route followed contribute nothing to the Joint Purse, and are not 
 included in the division described in Article II of the Convention. 
 
 5. British Government telegrams and French Government telegrams coming under 
 Article II of the Convention pass the cables of the Eastern Extension, Australasia, and 
 China Telegraph Company (Limited), at half charges; and shall, when passing by those 
 cables, contribute to the Joint Purse one-half of the normal contribution. 
 
 6. French Government telegrams coming under Article II of the Convention pass free 
 of charge over the cables of the Great Northern Telegraph Company of Copenhagen; and 
 shall, when passing by those cables, contribute nothing to the Joint Purse. 
 
 7. Press telegrams between the Companies' stations in China, on the one side, and 
 Europe (Russia excepted), on the other side, shall, when passing the cables of the Eastern 
 Extension, Australasia, and China Telegraph Company (Limited), contribute to the Joint 
 Purse the full amount of the proportion due to those cables, which is at present fixed at 1 fr. 
 82^ c, at the exchange of 1 fr., equal to 40 cents of a Mexican dollar. 
 
 Should such press telegrams be admitted at reduced charges over the lines of the 
 Administration, or the Great Northern Telegraph Company of Copenhagen, they will con-
 
 56 CHINA TREATIES AND AGREEMENTS 
 
 tribute to the Joint Purse the actual proportion of the charges due to the Administration or 
 the Great Northern Telegraph Company of Copenhagen. 
 
 8. Simultaneously with the reduction from 8 fr. 50 c. to 7 fr. of the total charge 
 named in Article I, Section 1, of the Convention, the contribution to the Joint Purse shall 
 be revised, and shall be calculated upon the same principle as that adopted in fixing that 
 contribution in the present table. 
 
 Special Telegrams at reduced Charges. 
 
 1. Chinese Government telegrams originating and terminating in China shall pass at 
 half charges over the Companies' cables between Shanghai, Foochow, Amoy, Hong Kong, 
 always provided that Chinese Government telegrams exchanged terminally between Hong 
 Kong, on the one side, and Amoy, Foochow, Shanghai, on the other side, by the lines of the 
 Administration shall not be included in the division stipulated in Article VHI of the 
 Convention. 
 
 2. British Government telegrams exchanged between Shanghai, Foochow, Hong Kong, 
 by the Eastern Extension, Australasia, and China Telegraph Company's cables, shall pass 
 at half charges. 
 
 3. French Government telegrams exchanged between Shanghai, Amoy, Hong Kong, 
 by the Great Northern Telegraph Company's cables shall pass free of charge. 
 
 4. Japanese Government telegrams between Shanghai, Foochow, Amoy, Hong Kong, by 
 the cables of both Companies shall pass at half charges. 
 
 5. Press telegrams exchanged terminally between Hong Kong and Shanghai by the 
 cables of both Companies shall pass at half charges. 
 
 6. Chinese Government telegrams are those which emanate from the Chief of the State, 
 Tsung-li Yamen, the Board of Admiralty, the Viceroys and Governors of provinces, Com- 
 manders-in-chief of land and sea forces, Ministers and Diplomatic and Consular Agents of 
 China. Such Government telegrams should bear the seal or stamp of the authority that 
 sends them. 
 
 7. Other Government telegrams named in this table are defined according to the Service 
 Regulations of the International Telegraph Convention. 
 
 Rate of Exchange. 
 Except as otherwise provided in the present table and until further agreed on, the normal 
 rate of exchange between francs and Mexican dollars shall be taken to be 1 fr. equal to 40 
 cents of a Mexican dollar. 
 
 In witness whereof the Undersigned, duly authorized to this effect, have signed the 
 present table. Done in Shanghai, in th« French language, in the English language, and in the 
 Chinese language. Three expeditions duly compared and found to be in agreement have been 
 signed in each of these languages, on the 11th day of the month of July, 1896, corresponding 
 with the 1st day of the 6th moon of the 22nd year of the reign of Kwang Hsu. 
 
 For the Imperial Chinese Telegraph Administration, 
 
 Sheng Hsuen Hum, Director-General. 
 (Seal of Administration.) 
 
 For the Great Northern Telegraph Company of Copenhagen, 
 
 J. Henningsen, Manager in China. 
 For the Eastern Extension, Australasia, and China Telegraph 
 Company (Limited), 
 
 Walter Judd, Manager in China. 
 Seen and approved : 
 
 Claude M. MacDonald. (Seal of Legation.) 
 
 Her Britannic Majesty's Minister Plenipotentiary. 
 Vu et approuve : 
 
 CoMTE Cassini. (Seal.) 
 
 Ministre de Russie et dc Danemark. 
 
 (Seal of Tsung-li Yamen.)
 
 NUMBER 1896/3: JULY 11, 1896: xXOTE 67 
 
 Note. 
 
 The situation of the Chinese Telegraph Administration in relation to the several cable 
 companies is somewhat obscure by reason of the fact that some of the more important 
 agreements have not been made public. It is understood that, by agreements of 1904 and 
 1905, the Commercial Pacific and German-Dutch Cable Companies were admitted to partici- 
 pation with the Eastern Extension and Great Northern Companies in their interest under the 
 joint purse arrangement provided in Article 2 of this Convention; and that further agree- 
 ments concluded between the Chinese Administration and the latter two companies were 
 concluded in 1904, 1911 and 1913, in which provision was made for the modification of the 
 joint purse arrangement, and the term of all telegraph agreements between the Chinese 
 Administration and the Eastern Extension and Great Northern Companies was extended to 
 December 31st, 1930. 
 
 The following is the text, as printed in B. & F. State Papers, Vol. 107, p. 726, of the 
 Additional Article to the Convention of July 11, 1896, which was signed at Peking, Decem- 
 ber 22, 1913 :— 
 
 Additional Article to Telegraph Convention of 1896, — December 22, 1913. 
 
 "In connection with the Agreement entered into on the 11th July, 1896, between the 
 Imperial Chinese Telegraph Administration, on the one part, and the Great Northern 
 Telegraph Company (Limited) and the Eastern Extension Australasia and China Telegraph 
 Company (Limited), on the other part, the following additional Article has been agreed 
 upon and under date given signed by the Chinese Government, represented by Air. C. C. 
 Lung, the Director-General of Telegraph Directorates of Chiao Tung Pu, and by the 
 companies represented by Captain H. Rothe, Co-General Manager of the Great Northern 
 Telegraph Company (Limited), and Mr. W. Bullard, Manager in China of the Eastern 
 Extension Australasia and China Telegraph Company (Limited), each duly furnished with 
 full and special powers for this purpose, and now witnesseth that in the interest of both 
 parties to the Agreement, dated the 11th July, 1896, and for the same term of years, that is, 
 till the 31st December, 1930, no other party will be allowed without the consent of both 
 the said parties to land telegraph cables on the coast of China and islands belonging 
 thereto, or to work such cables in connection with the Chinese lines, or otherwise to 
 establish telegraph connections which might create competition with or injure the interests 
 of the existing lines belonging to China or to the cable companies. This shall, however, 
 not prevent the Chinese Government from establishing local internal cables where no 
 competition can arise, neither shall it prevent the transmission of terminal Formosa traffic 
 over the Foochow-Formosa cable, now belonging to Japan, whilst other traffic must not be 
 exchanged by this line except with the consent of China and of the cable companies. 
 
 " The present additional Article shall be ratified by the Wai Chiao Pu and by the 
 Ministers at Peking for Denmark and Great Britain. 
 
 " In witness whereof the undersigned, duly authorized to this effect, have signed the 
 present additional Article. 
 
 " Done in Peking in the English language and in the Chinese language. Six expeditions 
 duly compared and found to be in Agreement have been signed in each of these languages 
 on the ^2nd day of the month of December, 1913, corresponding with the 22nd day of 
 the 12th moon of the 2nd year of the Chinese Republic. 
 " For the Chinese Government, 
 
 " C. C. Lung, 
 " The Director-General of Telegraph Directorates. 
 "For the Great Northern Telegraph Company (Limited), 
 
 ■' H. RoTHE, 
 
 Co-General Manager. 
 " For the Eastern Extension Australasia and China Telegraph 
 Company (Limited), 
 
 " W. Bullard, 
 
 Manager in China. 
 " Seen and approved : 
 
 " P. Ahlefeldt Laurvig, 
 
 Minister for Denmark. (Seal.) 
 
 "J, N. Jordan, 
 
 His Britannic Majesty's Minister. (Seal of British Legation.) 
 
 " (Seal of 
 Wai Chiao Pu.) " 
 This Additional Article is stated (op. cit.) to have been ratified by the Chinese, 
 Danish and British Governments on December 31, 1913.
 
 68 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1896/4. 
 
 JAPAN AND CHINA. 
 Treaty of Commerce and Navigation.^ — July 21, 1896. 
 
 His Majesty the Emperor of Japan and His Majesty the Emperor of China, 
 having resolved, in pursuance of the provisions of Articles VI, of the Treaty 
 signed at Shimonoseki on the 17th day of the 4th month of the 28th year of 
 Meiji, corresponding to the 23rd day of the 3rd month of the 21st year of Kuang 
 Hsii, to conclude a Treaty of Commerce and Navigation, have for that purpose 
 named as Their Plenipotentiaries, that is to say: 
 
 His Majesty the Emperor of Japan, Baron Hayashi Tadasu, Shoshii, Grand 
 Cross of the Imperial Order of the Sacred Treasure, Grand Officer of the Im- 
 perial Order of the Rising Sun, Minister Plenipotentiary and Envoy Extraordi- 
 nary; and His Majesty the Emperor of China, Chang Yen Hoon, Minister 
 Plenipotentiary, Minister of the Tsungli-yamen, Holding the rank of the Presi- 
 dent of a Board and Senior Vice-President of the Board of Revenue : 
 
 Who, after having communicated to each other their Full Powers found to be 
 in good and due form, have agreed upon and concluded the following Articles : — 
 
 Article I. — Peace and friendship. — There shall be perpetual peace and 
 friendship between His Majesty the Emperor of Japan and His Majesty the Em- 
 peror of China, and between their respective subjects who shall enjoy equally 
 in the respective countries of the High Contracting Parties full and entire pro- 
 tection for their persons and property. 
 
 Article II. — Diplomatic agents; prerogatives, immunities. — It is agreed 
 by the High Contracting Parties that His Majesty the Emperor of Japan may, 
 if he see fit, accredit a Diplomatic Agent to the Court of Peking and His Majesty 
 the Emperor of China may, if he see fit, accredit a Diplomatic Agent to the 
 Court of Tokio. 
 
 The Diplomatic Agents thus accredited shall respectively enjoy all the 
 prerogatives, privileges and immunities accorded by international law to such 
 Agents and they shall also in all respects be entitled to the treatment extended 
 to similar Agents of the most favoured nation. 
 
 Their persons, families, suites, establishments, residences and correspondence 
 shall be held inviolable. They shall be at liberty to select and appoint their own 
 officers, couriers, interpreters, servants and attendants without any kind of moles- 
 tation. 
 
 Article III. — Consular agents; privileges, immunities. — His Majesty the 
 Emperor of Japan may appoint Consuls-General, Consuls, Vice-Consuls, and 
 
 *Text as printed in Rockhill, p. 30. Printed also in Customs, Vol. II, p. 604; Traites et 
 Conventions, 137; Hertslct, p. 2i7Z; Recueil, p. 197. 
 
 In connection with this treatv, sec also the Protocol in regard to Japanese settlements 
 and other matters, October 19, 1896 (No. 1896/6, post), and Supplementary Treaty of Com- 
 merce and Navigation, October 8, 1903 (No. 1903/4, post).
 
 NUMBER 1896/4: JULY 21, 1896 69 
 
 Consular Agents to reside at such of the ports, cities and towns of China, which 
 are now, or may hereafter be, opened to foreign residence and trade, as the inter- 
 ests of the Empire of Japan may require. 
 
 These officers shall be treated with due respect by the Chinese Authorities, 
 and they shall enjoy all the attributes, authority, jurisdiction, privileges and im- 
 munities which are, or may hereafter be, extended to similar officers of the 
 nation most favoured in these respects. 
 
 His Majesty the Emperor of China may likewise appoint Consuls-General, 
 Consuls, Vice-Consuls and Consular Agents to reside at any or all of those places 
 in Japan, where Consular officers of other nations are now, or may hereafter, 
 be admitted, and, saving in the matter of jurisdiction in respect of Chinese sub- 
 jects and property in Japan, which is reserved to the Japanese Judicial Courts, 
 they shall enjoy the rights and privileges that are usually accorded to such officers. 
 
 Article IV. — Residential, trading, and other rights of Japanese in 
 China. — Japanese subjects may, with their families, employes and servants, fre- 
 quent, reside and carry on trade, industries and manufactures, or pursue any 
 other lawful avocations in all the ports, cities and towns of China, which are now, 
 or may hereafter be, opened to foreign residence and trade. They are at liberty 
 to proceed to or from any of the open ports with their merchandise and effects, 
 and within the localities at those places which have already been, or may here- 
 after be, set apart for the use and occupation of foreigners, they are allowed 
 to rent or purchase houses, rent or lease land, and to build churches, cemeteries 
 and hospitals, enjoying in all respects the same privileges and immunities as are 
 now, or may hereafter be, granted to the subjects or citizens of the most favoured 
 nation. 
 
 Article V. — Ports of call in China. — Japanese vessels may touch for 
 the purpose of landing and shipping passengers and merchandise in accordance 
 with the existing Rules and Regulations concerning foreign trade there at all those 
 places in China, which are now ports of call, namely, Ngan-ching, Ta-tung, Hu- 
 kow, Wu-sueh, Lu-chi-kow and Woosung and such other places as may here- 
 after be made ports of call also. If any vessel should unlawfully enter ports 
 other than open ports and ports of call in China or carry on clandestine trade 
 along the coast or rivers, the vessel with her cargo shall be subject to con- 
 fiscation by the Chinese Government. 
 
 Article Vl.f — Passports. — Japanese subjects may travel, for their pleasure 
 or for purposes of trade, to all parts of the interior of China, under passports 
 issued by Japanese Consuls and countersigned by the Local Authorities. These 
 passports, if demanded, must be produced for examination in the localities passed 
 through. If the passports be not irregular, the bearers will be allowed to proceed 
 and no opposition shall be offered to their hiring of persons, animals, carts 
 or vessels for their own conveyance or for the carriage of their personal effects 
 or merchandise. If they be without passports or if they commit any offence 
 against the law, they shall be handed over to the nearest Consul for punishment, 
 but they shall only be subject to necessary restraint and in no case to ill-usage. 
 
 t In reference to this Article, see, however, the Exchange of Notes of January 29th, 
 1918 (No. 1918/3, post).
 
 70 CHINA TREATIES AND AGREEMENTS 
 
 Such passports shall remain in force for a period of thirteen Chinese months 
 from the date of issue. Any Japanese subject travelling in the interior without 
 passport shall be liable to a fine not exceeding three hundred Taels.l Japanese 
 subjects may, however, without passports go on excursions from any of the ports 
 open to trade, to a distance not exceeding one hundred Chinese li and for a period 
 not exceeding five days. The provisions of this Article do not apply to crews of 
 ships. 
 
 Article VII. — Chinese employed by Japanese. — Japanese subjects resid- 
 ing in the open ports of China may take into their service Chinese subjects and 
 employ them in any lawful capacity without restraint or hindrance from the 
 Chinese Government or Authorities. 
 
 Article VIII. — Hiring of boats. Monopolies. Smuggling, — Japanese sub- 
 jects may hire whatever boats they please for the conveyance of cargo or pas- 
 sengers and the sum to be paid for such boats shall be settled between the parties 
 themselves, without the interference of the Chinese Government or officers. No 
 limit shall be put upon the number of boats, neither shall a monopoly in respect 
 either of the boats or of the porters or coolies engaged in carrying goods be 
 granted to any parties. If any smuggling takes place in them the offenders will 
 of course be punished according to law. 
 
 Article IX. — Tariff. Favored-nation treatment. — The Tariffs and Tariff 
 Rules now in force between China and the Western Powers shall be applicable to 
 all articles upon importation into China by Japanese subjects or from Japan, or 
 upon exportation from China by Japanese subjects or to Japan. It is clearly 
 understood that all articles, the importation or exportation of which is not ex- 
 pressly limited or prohibited by the Tariffs and Tariff Rules existing between 
 China and the Western Powers, may be freely imported into and exported from 
 China, subject only to the payment of the stipulated import or export duties. 
 But in no case shall Japanese subjects be called upon to pay in China other or 
 higher import or export duties than are, or may be, paid by the subjects or citi- 
 zens of the most favoured nation ; nor shall any article imported into China from 
 Japan or exported from China to Japan be charged upon such importation or 
 exportation, other or higher duties than are now, or may hereafter be, imposed 
 in China on the like article when imported from or exported to the nation most 
 favoured in those respects. 
 
 Article X. — Exemption of all Japanese goods from transit and other 
 taxes between open ports. — All articles duly imported into China by Japanese 
 subjects or from Japan shall, while being transported, subject to the existing Regu- 
 lations, from one open port to another, be wholly exempt from all taxes, imposts, 
 duties, lekin, charges and exactions of every nature and kind whatsoever, irre- 
 spective of the nationality of the owner or possessor of the articles, or the 
 nationality of the conveyance or vessel in which the transportation is made. 
 
 Article XI. — Transit dues. — It shall be at the option of any Japanese sub- 
 ject desiring to convey duly imported articles to an inland market to clear his 
 goods of all transit duties by payment of a commutation transit tax or duty, equal 
 to one-half of the import duty in respect of dutiable articles, and two and a half 
 
 t See the German Treaty of 1880, Article 6, U 2.
 
 NUMBER 1896/4: JULY 21, 1896 71 
 
 per cent, upon the value in respect of duty free articles ; and on payment thereof 
 a certiticate shall be issued, which shall exempt the goods from all further inland 
 charges whatsoever. It is understood that this Article does not apply to im- 
 ported opium. 
 
 Article XII. — Goods purchased for exportation only subject to transit 
 and export duties. — All Chinese goods and produce purchased by Japanese 
 subjects in China elsewhere than at an open port thereof and intended for export 
 abroad, shall in every part of China be freed from all taxes, imposts, duties, 
 lekin, charges and exactions of every nature and kind whatsoever, saving only 
 export duties when exported, upon the payment of a commutation transit tax 
 or duty calculated at the rate mentioned in the last preceding Article substituting 
 export duty for import duty, provided such goods and produce are actually ex- 
 ported to a foreign country within the period of twelve months from the date of 
 the payment of the transit tax; all Chinese goods and produce purchased by 
 Japanese subjects at the open ports of China and of which export to foreign 
 countries is not prohibited shall be exempt from all internal taxes, imposts, duties, 
 lekin, charges and exactions of every nature and kind whatsoever, saving only ex- 
 port duties upon exportation and all articles purchased by Japanese subjects in 
 any part of China, may also, for the purposes of export abroad, be transported 
 from open port to open port, subject to the existing Rules and Regulations. 
 
 Article XIII. — Re-exportation of foreign goods. Drawback certifi- 
 cates. — Merchandise of a bona fide foreign origin, in respect of which full import 
 duty shall have been paid, may at any time within three years from the date of 
 importation be re-exported from China by Japanese subjects to any foreign 
 country, without the payment of any export duty ; and the re-exporters shall, in 
 addition, be entitled forthwith to receive from the Chinese Customs drawback 
 certificates for the amount of import duty paid thereon, provided that the mer- 
 chandise remains intact and unchanged in its original packages. Such draw- 
 back certificates shall be immediately redeemable in ready money by the Chinese 
 Customs Authorities at the option of the holders thereof. 
 
 Article XIV. — Bonded warehouses. — The Chinese Government consents 
 to the establishment of Bonded Warehouses at the several open ports of China. 
 Regulations on the subject shall be made hereafter. 
 
 Article XV. — Tonnage dues. — Japanese merchant vessels of more than one 
 hundred and fifty tons burden, entering the open ports of China, shall be charged 
 tonnage dues at the rate of four mace per registered ton ; if of one hundred 
 and fifty tons and under, they shall be charged at the rate of one mace per 
 registered ton. But any such vessel taking its departure within forty-eight hours 
 after arrival, without breaking bulk, shall be exempt from the payment of tonnage 
 dues. 
 
 Japanese vessels having paid the above specified tonnage dues shall there- 
 after be exempt from all tonnage dues in all the open ports and ports of call of 
 China for the period of four months from the date of clearance from the port 
 where the payment of such tonnage dues is made. Japanese vessels shall not, 
 however, be required to pay tonnage dues for the period during which they are 
 actually undergoing repairs in China.
 
 72 CHINA TREATIES AND AGREEMENTS 
 
 No tonnage dues shall be payable on small vessels and boats employed by 
 Japanese subjects in the conveyance of passengers, baggage, letters or duty free 
 articles between any of the open ports of China. All small vessels and cargo 
 boats, however, conveying merchandise which is, at the time of such conveyance, 
 subject to duty, shall pay tonnage dues once in four months at the rate of one 
 mace per ton. 
 
 No fee or charges other than tonnage dues shall be levied upon Japanese 
 vessels and boats, and it is also understood that such vessels and boats shall not 
 be required to pay other or higher tonnage dues than the vessels and boats of 
 the most favoured nation. 
 
 Article XVI. — Use of pilots. — Any Japanese merchant vessel arriving at 
 an open port of China shall be at liberty to engage the services of a pilot to take 
 her into port. In like manner, after she has discharged all legal dues and duties 
 and is ready to take her departure, she shall be allowed to employ a pilot to take 
 her out of port. 
 
 Article XVII. — Vessels seeking place of refuge. Rescued cargo and 
 persons. — Japanese merchant vessels compelled on account of injury sustained 
 or any other cause to seek a place of refuge shall be permitted to enter any 
 nearest port of China, without being subject to the payment of tonnage dues or 
 duties upon goods landed in order that repairs to the vessel may be effected, 
 provided the goods so landed remain under the supervision of the Customs Au- 
 thorities. Should any such vessel be stranded or wrecked on the coast of China, 
 the Chinese Authorities shall immediately adopt measures for rescuing the 
 passengers and crew and for securing the vessel and cargo. The persons thus 
 saved shall receive friendly treatment, and, if necessary, shall be furnished with 
 means of conveyance to the nearest Consular station. Should any Chinese 
 merchant vessel be compelled on account of injury sustained or any other cause 
 to seek a place of refuge in the nearest port of Japan, she shall likewise be 
 treated in the same way by the Japanese Authorities. 
 
 Article XVIII. — Smuggling. — The Chinese Authorities at the several 
 open ports shall adopt such means as they may judge most proper to prevent the 
 revenue suffering from fraud or smuggling. 
 
 Article XIX. — Robbers and pirates. — If any Japanese vessel be plun- 
 dered by Chinese robbers or pirates, it shall be the duty of the Chinese Au- 
 thorities to use every endeavor to capture and punish the said robbers or pirates, 
 and to recover and restore the stolen property. 
 
 Article XX. — Jurisdiction over Japanese persons and property. — Juris- 
 diction over the persons and property of Japanese subjects in China is reserved 
 exclusively to the duly authorized Japanese Authorities, who shall hear and 
 determine all cases brought against Japanese subjects or property by Japanese 
 subjects, or by the subjects or citizens of any other Power; without the inter- 
 vention of the Chinese Authorities. 
 
 Article XXI. — Mixed cases. — If the Chinese Auhorities or a Chinese sub- 
 ject make any charge or complaint of a civil nature against Japanese subjects or 
 in respect of Japanese property in China, the case shall be heard and decided 
 by the Japanese Authorities.
 
 NUMBER 1896/4: JULY 21, 1896 73 
 
 In like manner all charges and complaints of a civil nature brought by 
 Japanese Authorities or subjects in China against Chinese subjects or in respect of 
 Chinese property, shall be heard and determined by the Chinese Authorities. 
 
 Article XXII. — Crimes and offenses. — Japanese subjects charged with 
 the commission of any crimes or offences in China shall be tried, and, if found 
 guilty, punished by the Japanese Authorities according to the laws of Japan. 
 
 In like manner Chinese subjects charged with the commission of any crimes 
 or offences against Japanese subjects in China shall be tried, and, if found guilty, 
 punished by the Chinese Authorities according to the laws of China. 
 
 Article XXIII. — Debts — absconding debtors. — Should any Chinese sub- 
 ject fail to discharge debts incurred to a Japanese subject, or should he fraudu- 
 lently abscond, the Chinese Authorities will do their utmost to effect his arrest, 
 and enforce recovery of the debts. The Japanese Authorities will likewise do 
 their utmost to bring to justice any Japanese subject who fraudulently absconds 
 or fails to discharge debts incurred by him to a Chinese subject. 
 
 Article XXIV. — Surrender of Japanese and Chinese absconding 
 debtors. — If Japanese subjects in China, who have committed offences or have 
 failed to discharge debts and fraudulently abscond, should flee to the interior 
 of China or take refuge in houses occupied by Chinese subjects or on board of 
 Chinese ships, the Chinese Authorities shall, at the request of the Japanese Con- 
 sul, deliver them to the Japanese Authorities. 
 
 In like manner if Chinese subjects in China, who have committed offences 
 or have failed to discharge debts and fraudulently abscond, should take refuge 
 in houses occupied by Japanese subjects in China or on board of Japanese ships 
 in Chinese waters, they shall be delivered up at the request of the Chinese 
 Authorities made to the Japanese Authorities. 
 
 Article XXV. — Most favored nation treatment. — The Japanese Govern- 
 ment and its subjects are hereby confirmed in all privileges, immunities and 
 advantages conferred on them by the Treaty stipulations between Japan and 
 China, which are now in force ; and it is hereby expressly stipulated that the 
 Japanese Government and its subjects will be allowed free and equal participation 
 in all privileges, immunities and advantages that may have been, or may be 
 hereafter, granted by His Majesty the Emperor of China to the Government 
 or subjects of any other nation. 
 
 Article XXVI. — Revision. — It is agreed that either of the High Contract- 
 ing Parties may demand a revision of the Tariffs and of the Commercial Articles 
 of this Treaty at the end of ten years from the date of the exchange of the 
 ratifications ; but if no such demand be made on either side and no such revision 
 be effected, within six months after the end of the first ten years, then the Treaty 
 and Ta.Y\fis, in their present form, shall remain in force for ten years more, 
 reckoned from the end of the preceding ten years, and so it shall be at the end of 
 each successive period of ten years. 
 
 Article XXVII. — Rules and regulations putting treaty in effect. — The 
 High Contracting Parties will agree upon Rules and Regulations necessary to 
 give full effect to this Treaty. Until such Rules and Regulations are brought 
 into actual operation, the Arrangements, Rules and Regulations subsisting be-
 
 74 CHINA TREATIES AND AGREEMENTS 
 
 tween China and the Western Powers, so far as they are appHcable and not in- 
 consistent with the provisions of this Treaty, shall be binding between the Con- 
 tracting Parties. 
 
 Article XXVIII. — English text authoritative. — The present Treaty is 
 signed in the Japanese, Chinese and Enghsh languages. In order, however, to 
 prevent future discussions, the Plenipotentiaries of the High Contracting Parties 
 have agreed upon that in case of any divergence in the interpretation between 
 the Japanese and Chinese texts of the Treaty, the difference shall be settled by 
 reference to the English text. 
 
 Article XXIX. — The present Treaty shall be ratified by His Majesty the 
 Emperor of Japan and His Majesty the Emperor of China, and the ratifications 
 thereof shall be exchanged at Peking as soon as possible, and not later than three 
 months from the present date.§ 
 
 In witness whereof, the respective Plenipotentiaries have signed the same, 
 and have affixed thereto the seal of their arms. 
 
 Done at Peking this 21st day of the 7th month of the 29th year of Meiji, 
 corresponding to the eleventh day of the sixth month of the 22nd year of Kuang 
 Hsu. 
 
 [l. s.] Hayashi Tadasu, 
 
 Shoshii, Grand Cross of the Imperial Order of the Sacred 
 Treasure, Grand Officer of the Imperial Order of the 
 Rising Sun, Minister Plenipotentiary and Envoy Ex- 
 traordinary. 
 [l. s.] Chang Yen Hoon, 
 
 Minister Plenipotentiary, Minister of the Tsungli-yamen, 
 holding the rank of the President of a Board and 
 Senior Vice President of the Board of Revenue. 
 
 NUMBER 1896/5. 
 
 RUSSIA (Russo-Chinese Bank)* AND CHINA. 
 
 Contract for the Construction and Operation of the Cliinesc Eastern Railway.^ — 
 
 September 8, 1896. 
 
 Between the undersigned, His Excellency Shu King-chen, Minister Pleni- 
 potentiary of His Majesty the Emperor of China, at St. Petersburg, acting by 
 virtue of an Imperial Edict, dated Kuang Hsii, 22nd year, 7th month, 20th day 
 (August 16/28, 1896), of the one part, and the Russo-Chinese Bank, of the 
 other part, it has been agreed as follows : 
 
 The Chinese Government will pay the sum of five million Kuping taels 
 
 * See Note 1 to this document, posi. p. 78. 
 
 t Translation from the French text as printed in Soglashenia, p. 4. French text printed 
 also in Customs, Vol. I, p. 208; Kent, p. 211; Wang, p. 1. See Note 2 to this document, 
 post. p. 78. 
 
 § Ratifications exchanged at Peking, October 20, 1896.
 
 NUMBER 1896/5 : SEPTEMBER 8, 1896 75 
 
 (Kuping Tls. 5,000,000.) to the Russo-Chinese Bank, and will participate in pro- 
 portion to this payment in the profits and losses of the bank, on conditions set 
 forth in a special contract. 
 
 Ihe Chinese Government having decided upon the construction of a rail- 
 w^ay line, establishing direct communication between the city of Chita and the 
 Russian South Ussuri Railway, entrusts the construction and operation of this 
 railway to the Russo-Chinese Bank upon the following conditions : 
 
 1. — The Russo-Chinese Bank will establish for the construction and opera- 
 tion of this railway a company under the name of the Chinese Eastern Railway 
 Company .$ 
 
 The seal which this Company will employ will be given to it by the Chinese 
 Government. The statutes of this Company will be in conformity with the Rus- 
 sian usages in regard to railways. The shares of the Company can be acquired 
 only by Chinese or Russian subjects. The president of this Company will be 
 named by the Chinese Government, but paid by the Company. He may have 
 his residence in Peking. 
 
 It will be the duty of the president to see particularly to the scrupulous 
 fulfilment of the obligations of the Bank and of the Railway Company towards 
 the Chinese Government ; he will furthermore be responsible for the relations 
 of the Bank and of the Railway Company with the Chinese Government and 
 the central and local authorities. 
 
 The president of the Chinese Eastern Railway Company will likewise be 
 responsible for examining all accounts of the Chinese Government with the 
 Russo-Chinese Bank. 
 
 To facilitate local negotiations, the Russo-Chinese Bank will maintain an 
 agent at Peking. 
 
 2. — The route of the line will be determined by the deputies of the presi- 
 dent (named by the Chinese Government) of the Company, in mutual agree- 
 ment with the engineers of the Company and the local authorities. In laying 
 out this line, cemeteries and tombs, as also towns and villages, should so far as 
 possible be avoided and passed by. 
 
 3. — The Company must commence the work within a period of twelve 
 months from the day on which this contract shall be sanctioned by imperial 
 decree, and must so carry it on that the whole line will be finished within a period 
 of six years from the day on which the route of the line is definitely established 
 and the lands necessary therefor are placed at the disposal of the Company. 
 The gauge of the line should be the same as that of the Russian railways (5 
 Russian feet — about four feet, two and one-half inches, Chinese). 
 
 4. — The Chinese Government will give orders to the local authorities to assist 
 the Company to the extent of their ability in obtaining, at current prices, the 
 materials necessary for the construction of the railway, as also laborers, means 
 of transport by water and by land, the provisions necessary for the feeding of 
 men and animals, etc. 
 
 The Chinese Government should, as needed, take measures to facilitate 
 such transportation. 
 
 t See Note 3 to this document, post, p. 84.
 
 76 CHINA TREATIES AND AGREEMENTS 
 
 5. — The Chinese Government will take measures to assure the safety of 
 the railway and of the persons in its service against any attack. 
 
 The Company will have the right to employ at will, as many foreigners or 
 natives as it may find necessary for the purpose of administration, etc. 
 
 Criminal cases, lawsuits, etc., upon the territory of the railway, must be 
 settled by the local authorities in accordance with the stipulations of the treaties.§ 
 
 6. 1 1 — The lands actually necessary for the construction, operation, and 
 protection of the line, as also the lands in the vicinity of the line' necessary for 
 procuring sand, stone, lime, etc., will be turned over to the Company freely, 
 if these lands are the property of the State ; if they belong to individuals, they 
 will be turned over to the Company either upon a single payment or upon 
 an annual rental to the proprietors, at current prices. The lands belonging to 
 the Company will be exempt from all land taxes (impot fonder). 
 
 The Company will have the absolute and exclusive right of administra- 
 tion of its lands. (La Societe aura le droit absolii et exclusif de I'a-dmhiistra^ 
 tion de ses terrains.) 
 
 The Company will have the right to construct on these lands buildings of all 
 sorts, and likewise to construct and operate the telegraph necessary for the needs 
 of the line.jf 
 
 The income of the Company, all its receipts and the charges for the trans- 
 portation of passengers and merchandise, telegraphs, etc., will likewise be exempt 
 from any tax or duty. Exception is made, however, as to mines, for which 
 there will be a special arrangement. 
 
 7. — All goods and materials for the construction, operation, and repair of 
 the line, will be exempt from any tax or customs duty and from any internal 
 tax or duty. 
 
 8. — The Company is responsible that the Russian troops and war material, 
 despatched in transit over the line, will be carried through directly from one 
 Russian station to another, without for any pretext stopping on the way longer 
 than is strictly necessary. 
 
 9.* — Passengers who are not Chinese subjects, if they wish to leave the 
 territory of the railway, should be supplied with Chinese passports. The Com- 
 pany is responsible that passengers, who are not Chinese subjects, should not 
 leave the territory of the railway if they do not have Chinese passports. 
 
 10. — Passengers' baggage, as well as merchandise despatched in transit 
 from one Russian station to another, will not be subject to customs duties ; they 
 will likewise be exempt from any internal tax or duty. The Company is bound 
 to despatch such merchandise, except passengers' baggage, in special cars, which, 
 on arrival at the Chinese frontier, will be sealed by the office of the Chinese Cus- 
 toms, and cannot leave Chinese territory until after the office of the Customs 
 shall have satisfisd itself that the seals are intact; should it be established 
 that these cars have been opened on the way without authorization, the mer- 
 chandise would be confiscated. 
 
 * See Note 6 to this document, post, p. 90. 
 § See Note 4 to this document, post, p. 88. 
 II See Note 5 to this document, post, p. 90. 
 
 11 See the Agreement of October 7, 1907, in regard to the working of the Raihvay's tele- 
 graph lines (No. 1907/7, post).
 
 NUMBER 1896/5 : SEPTEMBER 8, 1896 TJ 
 
 Merchandise imported from Russia into China by the railway, and likewise 
 merchandise exported from China into Russia by the same route, will respectively 
 pay the import and export duty of the Chinese Maritime Customs, less one- 
 third. 
 
 If merchandise is transported into the interior it will pay in addition the 
 transit duty — equivalent to a half of the import duty collected — which frees it 
 from any further charge. 
 
 Merchandise not paying the transit tax will be subject to all the barrier 
 and likin duties imposed in the interior. 
 
 The Chinese Government must install customs offices at the two frontier 
 points on the line.f 
 
 11. — The charges for the transportation of passengers and of merchandise, 
 as well as for the loading and unloading of merchandise, are to be fixed by the 
 Company, but it is obliged to transport free of charge the Chinese official letter 
 post, and, at half price, Chinese land or sea forces and also Chinese war ma- 
 terials. 
 
 12. — The Chinese Government transfers to the Company the complete and 
 exclusive right to operate the line on its own account and risk, so that the 
 Chinese Government will in no case be responsible for any deficit whatsoever of 
 the Company, during the time allotted for the work and thereafter for a further 
 eighty years from the day on which the line is finished and traffic is in opera- 
 tion. This period having elapsed, the line, with all its appurtenances, will pass 
 free of charge to the Chinese Government. 
 
 At the expiration of thirty-six years from the day on which the entire line 
 is finished and traffic is in operation, the Chinese Government will have the 
 right to buy back this line upon repaying in full all the capital involved, as well 
 as all the debts contracted for this line, plus accrued interest.:!: 
 
 If — in case the profit realized exceeds the dividends allowed to the share- 
 holders — a part of such capital is repaid, that part will be deducted from the 
 price of repurchase. In no case may the Chinese Government enter into pos- 
 session of this line before the appropriate sum is deposited in the Russian State 
 Bank. 
 
 The day when the line is finished and traffic is in operation, the Company 
 will make to the Chinese Government a payment of five million Kuping taels 
 (Kuping Tls. 5,000,000). 
 
 Kuang Hsii, 22nd year, 
 8th month, 2nd day. 
 (Signed) Shu. 
 
 Berlin, August 27/September 8, 1896. 
 RUSSO-CHINESE BANK 
 • (Signed) Rothstein. 
 
 (Signed) Prince Oukhtoaisky. 
 
 t See the Experimental Regulations for the establishment of customs houses in North 
 Manchuria, agreed upon by an exchange of notes between the Chinese and Russian Govern- 
 ments, July 6 and 8, 1907 (No. 1907/10, post), and the Provisional Regulations for the work- 
 ing of Chinese customs houses at the stations of Manchuria and Pogranichnaya (Suifenho), 
 May 30, 1908 (attached to No. 1907/10, post). 
 
 t See Note 7 to this document, post, p. 91.
 
 78 CHINA TREATIES AND AGREEMENTS 
 
 Note 1. 
 
 The Russo-Chinese Bank was subsequently merged with the Banque du Nord under 
 the name of the Russo-Asiatic Bank {Banque Russo-Asiatiquc) by a charter approved by the 
 Russian Minister of Finance on July 30/August 12, 1910 (Sobranie Uzakonenii i Raspor- 
 yazhenii Pravitelstva, §719, October 2/15, 1910, No. 96, Section 1). For extracts embodying 
 the substance of the original charter of the Russo-Chinese Bank, under date of December 
 10/22 see Rockhill, p. 207. At page 185 of Shina Kankei Tokushu Joyaku Isan is given the 
 Japanese translation of an agreement stated to have been concluded on the 20th day of the 
 7th moon of the 22nd year of Kuang Hsii (August 28, 1896) in regard to the Russo-Chinese 
 Bank Association. The text, apparently translated from a Chinese original, is obscure; but 
 the following is an approximate rendering: 
 
 Alleged Agreement between China and Russia regarding Russo-Chinese Bank 
 Association. — August 28, 1896. 
 
 " Hsii, Chinese Minister Plenipotentiary to Russia, in pursuance of Imperial Orders of 
 the 20th day of the 7th month of the 22nd year of Kuang Hsii, signed the following agree- 
 ment in regard to the Russo-Chinese Bank Association : 
 
 " 1. — The Chinese Government shall contribute a capital of 5,000,000 Kuping taels, and 
 undertake the business in the form of an association under the name of the Russo-Chinese 
 Bank. That is to say that, from the date that this amount is handed over to the Bank, 
 all profit and loss will be borne in proportion to shares. 
 
 " 2. — When a general account is made up on the first day of the first month of the Rus- 
 sian calendar, the account of profit and loss of the Chinese Government up to the end of the 
 year shall be calculated in Kuping taels, in proportion to the shares held by the Chinese 
 Government. 
 
 " 3. — With regard to the profits which are obtained in accordance with the Statutes of the 
 Bank, after first deducting a certain portion which is to be offered to the Bank Manager(s) 
 as a bonus in reward for diligence, the remainder of the profits shall be divided between 
 the Chinese Government and the Bank in proportion to the shares held by each. Provided, 
 however, that 10% shall be deducted from the profits of the dividends as a reserve fund, 
 and that when the profit exceeds 6% of the capital, 20% shall be deducted from the amount 
 that exceeds 6%, and shall be given as a bonus to the Manager (s). If there is a loss in the 
 business, the loss for which the Chinese Government is liable shall be paid out of the reserve 
 fund 
 
 "4 — The monthly and annual reports of the said Bank shall, after obtaining the consent 
 of the general meeting of shareholders, be transmitted by the IManager of the Bank residing 
 in China to the Manager of the Chinese Eastern Railway appointed by the Chinese Govern- 
 ment. After he has inspected them, the reports shall be returned. 
 
 "5. — If the Bank in question is closed as a result of circumstances or on account of 
 losses, what remains of the capital is to be returned to the Chinese Government if, after 
 balancing the accounts, the loss is found to be small." 
 
 Note 2. 
 
 In connection with this contract see also the following documents : 
 
 1. Convention between Russia and China for the lease of the Liaotung Peninsula, 
 March 27, 1898 (No. 1898/5, post); 
 
 2. Additional Agreeement between Russia and China, defining the boundaries of the 
 leased and neutralized territory in the Liaotung Peninsula, May 7, 1898 (No. 1898/9, post) ; 
 
 3. Agreement between the Chinese Eastern Railway Companv and the Chinese Govern- 
 ment for the Southern Manchurian Branch of the Railway, July 6, 1898 (No. 1898/15, 
 post) ; 
 
 4. Exchange of Notes between Great Britain and Russia with regard to their respective 
 railway interests in China, April 28, 1899 (No. 1899/3, post.) ; 
 
 5. Declaration of the Chinese Government in regard to railways north and north-east 
 of Peking, June 1, 1899 (1899/5, post) ; 
 
 6 Agreement between Russia and China with regard to Manchuria, April 8, 1902 
 (No_ 1902/3, post); 
 
 7. Treaty of peace between Japan and Russia, September 5, 1905 (No. 1905/8, post) ; 
 
 8. Treaty and Additional Agreement between Japan and China relating to Manchuria, 
 December 22. 1905 (No. 1905/18, post) ; 
 
 9. Convention and Protocol relating to Japanese and Russian railway connections in 
 Manchuria, June 13, 1907 (No. 1907/9. post) ; 
 
 10. Political Convention between Japan and Russia, July 30, 1907 (No. 1907/11, post) ; 
 
 11. Political Convention between Japan and Russia, July 4, 1910 (No. 1910/1, post) ; 
 
 12. Agreement between Great Britain and Russia respecting the inclusion of British
 
 NUMBER 1896/5: SEPTEMBER 8, 1896: NOTES 79 
 
 subjects within the scheme of municipal administration and taxation established in the area 
 of the Chinese Eastern Railway, December 3, 1914 (No. 1914/14, post) ; and 
 
 13. Treaty between Japan and Russia in regard to cooperation in the Far East, July 3, 
 1916 (No. 1916/9, post). 
 
 It was long persistently rumored that the concession for the Chinese Eastern Railway 
 was a first-fruit of a secret political agreement between China and Russia, which attained 
 notoriety under the name of " The Cassmi Convention." In its issue of October 30, 1896, the 
 North China Herald published what purported to be a translation of that Convention, in 
 an article which is of sufficient historical interest to warrant its reproduction in full, as 
 follows : 
 
 The Cassini Convention. 
 
 " 28th Oct. 
 " As our Peking correspondent told us in his last letter, Count Cassini, the Russian 
 Minister, left Peking for Russia on the 30th of September. His baggage had been packed for 
 three or more weeks, and the carts and mule litters were actually standing in the courts of 
 the Russian Legation, but the Minister would not go until he could take with hirn duly 
 signed and sealed ' an important agreement supposed to be the right of way for the Siberian 
 railway across northern Manchuria.' With great difficulty we have succeeded in obtaining 
 a copy of this agreement, and we now proceed to give an English translation of it. The 
 numbers to the various clauses in this Convention have been added by us for convenience' 
 sake : — 
 
 " A SPECIAL CONVENTION BETWEEN CHINA AND RUSSIA. 
 
 " His Imperial Majesty the Emperor of China having received the various benefits 
 arising from the loyal support of His Imperial Majesty the Emperor of Russia at the close 
 of the late war between China and Japan, and being desirous that the communications be- 
 tween the frontier territories of their respective empires and the international commerce of 
 the two countries be managed to their mutual advantage, has commanded the mutual settle- 
 ment of certain matters in order the better to consolidate the basis of friendship between 
 the two empires. In this connection, therefore, H.I.M. the Emperor of China has specially 
 appointed the Imperial High Commissioners the Princes and Great Officers of the Crown 
 composing the Imperial Chinese Ministry of War, with plenipotentiary powers, to confer 
 and agree upon certain matters, at Peking, with His Excellency Count Cassini, Envoy 
 Extraordinary and Alinister Plenipotentiary of H.I.M. the Emperor of Russia to the Court 
 of China, concerning the connecting of the railway system of the Three Eastern Provinces 
 [Fengtien, Kirin, and Heilungchiang] with that of the Imperial Russian railway in the 
 province of Siberia, with the object of facilitating the transport of goods between the 
 two empires and of strengthening the frontier defences and seacoasts. And, furthermore, to 
 agree upon certain special privileges to be conceded by China to Russia as a response to the 
 loyal aid given by Russia in the retrocession of Liaotung and its dependencies. 
 
 " 1. — Owing to the fact that the Russian Great Siberian Railway is on the point of com- 
 pletion, China consents to allow Russia to prolong her railway into Chinese territories (a) 
 from the Russian port of Vladivostock into the Chinese city of Hunch'un in the province 
 of Kirin, from thence northwestwards to the provincial capital of Kirin, and (b) from a 
 railway station of some city in Siberia to the Chinese town of Aiyun in Heilungchiang 
 province, from thence southwestwards to the provincial capital of Tsitsihar and from thence 
 to the town of Petune, in Kirin province, and from thence southeastwards to the provincial 
 capital of Kirin. 
 
 " 2. — All railways built by Russia into the Chinese provinces of Heilungchiang and 
 Kirin shall be built at the sole expense of Russia and the regulations and building thereof 
 shall be solely on the Russian system, with which China has nothing to do, and the entire 
 control shall be in the hands of Russia for the space of thirty years. At the end of the 
 said period China shall be allowed to prepare the necessary funds wherewith, after proper 
 estimation of the value of the said railways, she shall redeem them, the rolling stock, 
 machine shops, and buildings connected therewith. But as to how China will at that date 
 redeem these railways shall be left for future consideration. 
 
 " 3. — China is now in the possession of a railway which she intends to extend from 
 Shanhaikuan into the provincial capital of Fengtien, namely, Moukden (Shengking), and 
 from Moukden to the provincial capital of Kirin. If China should hereafter find it incon- 
 venient to build this road she shall allow Russia to provide the funds to build the railway 
 from the city of Kirin, on behalf of China, the redemption of which road shall be per- 
 missible to China at the end of ten years. With reference to the route to be taken by this 
 railway, Russia shall follow the surveys already made by China in connection therewith, 
 from Kirin to Moukden, Newchwang, etc. 
 
 " 4. — The railway to be built by China beginning from Shanhaikuan, in Fengtien, to New- 
 chwang, to Kaiping, to Chinchou, to Lushunk'ou [Port Arthur], and to Talienwan, and their 
 dependencies, shall follow the Russian Railway regulations in order to facilitate the com- 
 mercial intercourse between the respective Empires.
 
 80 CHINA TREATIES AND AGREEMENTS 
 
 " 5. — With reference to the railways to be built by Russia into Chinese territory, the 
 routes along which the said roads shall pass must be protected, as usual, by the local civil 
 and military officials of the country. They shall, moreover, afford all facilities and aid to 
 the civil and military officials of Russia at the various railway stations, together with 
 all the Russian artisans and labourers connected therewith. But owing to the fact that 
 the said railways will pass for the greater part through barren and sparsely inhabited 
 territory in which it will be difficult for the Chinese authorities to be always able to 
 grant the necessary protection and aid, Russia shall be allowed to place special battalions 
 of horse and foot soldiers at the various important stations for the better protection 
 of the railway property. 
 
 "6. — With reference to the Customs duties to be collected on goods exported from 
 and imported into the respective countries by the said railways, they shall follow the 
 regulations provided by the Treaty of Commerce between China and Russia, ratified in 
 the 1st year of the reign of T'sung Chih, 4th day, 2nd moon [20th February 1862 O.S.], 
 regulating overland transit of goods between the two empires. 
 
 " 7. — There has always been in existence a rule prohibiting the exploitation of the 
 mines in Heilungchiang and Kirin provinces and in the Ch'angpai mountains [Long 
 White Mountain range]. After the ratification of this treaty, Russians and subjects of the 
 Chinese empire shall be permitted hereafter to exploit and open any of the mmes therein 
 mentioned ; but before doing so they shall be required first to petition the Chinese local 
 authorities on the subject who. on the other hand, shall grant the necessary commissions 
 (huchao) in accordance with the mining regulations in force in China Proper. 
 
 "8. — Although there exist certam battalions of foreign-drilled troops (Licnchun) in 
 the Three Eastern Provinces, yet the g:reater portion of the local territorial army corps 
 thereof still follow the ancient regulations of the empire. Should, therefore, China in 
 the future require to reform in accordance with the Western system the whole army organi- 
 zation of the said provinces, she shall be permitted to engage from Russia qualified military 
 officers for that purpose and the rules for the guidance of this arrangement shall be in accord- 
 ance with those obtaining in the Liangkiang provinces in regard to the German rmilitary 
 officers now engaged there. 
 
 " 9. — Russia has never possessed a seaport in Asia which is free from ice and open all 
 the year round. If, therefore, there should suddenly arise military operations in this 
 continent it will naturally be difficult for the Russian Eastern Seas and Pacific fleets to 
 move about freely and at pleasure. As China is well aware of this she is willing to lease 
 temporarily to Russia the port of Kiaochou [Chiaochou] in the province of Shantung, the 
 period of such lease being limited to fifteen years. At the end of this period China 
 shall buy all the barracks, godowns, machine shops and docks built there by Russia [during 
 her occupation of the said port]. But, should there be no danger of military operations, 
 Russia shall not enter immediately into possession of the said port or hold the important 
 points dominating the port, in order to obviate the chance of exciting the jealousy and 
 suspicions of other Powers. With reference to the amount of rent and the way it is to 
 be paid, this shall form the subject of consideration in a protocol at some future date. 
 
 " 10. — As the Liaotung ports of Lushunk'ou [Port Arthur] and Talienwan and their 
 dependencies are important strategical points, it shall be incumbent upon China to properly 
 fortify them with all haste, and to repair all their fortifications, etc., in order to provide 
 against future dangers; Russia shall therefore lend all necessary assistance in helping to 
 protect these two ports and shall not permit any Foreign Power to encroach upon them. 
 China, on her part, also binds herself never to cede them to another country; but, if in 
 future the exigencies of the case require it and Russia should find herself suddenly in- 
 volved in a war, China consents to allow Russia temporarily to concentrate her land, 
 and naval forces within the said ports in order the better to enable Russia to attack 
 the enemy or to guard her own position. 
 
 "11. — If. however, there be no dangers of military operations in which Russia is 
 engaged China shall have entire control over the administration of the said ports of 
 Lushunk'ou and Talienwan, nor shall Russia interfere in any way therein. But as regards 
 the building of the railways in the Three Eastern Provinces and the exploitation and 
 opening of the mines therein, they shall be permitted to be proceeded with immediately 
 after the ratification of this Convention and at the pleasure of the people concerned 
 therein. With reference to the civil and military officers of Russia and Russian merchants 
 and traders traveling [in any part of the territories herein mentioned], wherever they 
 shall go. they shall be given all the privileges of protection and facilities within the power 
 of the local authorities, nor shall these officials be allowed to put obstructions in the way 
 or delay the journeys of the Russian officers and subjects herein mentioned. 
 
 " 12. — After this Convention shall have received the respective signatures of their Im- 
 perial Majesties [the Emperors of China and Russia], the articles included therein shall 
 go into immediate force, and, with the exception of the clauses regarding Port Arthur, 
 Talienwan, and Kiaochou, shall be notified to the various local authorities of the two 
 Empires. As to the place for the exchange of ratifications, it shall be left to be decided 
 at some future time, but the exchange shall take place within the space of six months.
 
 NUMBER 1896/5 : SEPTEMBER 8, 1896 : NOTES 81 
 
 " It has, furthermore, been agreed upon between the respective Plenipotentiaries of 
 the High Contracting Powers to make this Convention out m three languages, namely, 
 Chinese, Russian and French; one copy of each language to be held by the respective High 
 Contracting Parties, after the signing and sealing thereof. And it has, furthermore, been 
 shown, upon comparison, that the contents of the documents as given in the three languages 
 aforesaid tally with each other in all respects; but in case of dispute in the future the 
 wording of the French copy shall be deemed the correct version. 
 
 " This document speaks for itself, and gives Russia all she can want at present. It 
 gives her the right to carry her Trans-Siberian Railway to Kirin in two directions, from 
 some station in Siberia to the west of Kirin, and from Vladivostock. It provides that China 
 may apply to Russia to build a continuation from Kirin to Shanhaikuan and Port Arthur, 
 and it gives Russia the right to protect these lines when built with her own troops. All 
 these lines are to be built to the Russian gauge. China gives Russians the right to 
 work mines in Manchuria, and provides for the employment of Russian officers to drill 
 the ]Manchurian levies. It gives Russia (on lease) the port of Kiaochou, and on emergency 
 the use of Port Arthur and Talienwan, which are not to be ceded to any other Power ; 
 and it promises every facility to Russian merchants and travellers and Russian trade. All 
 the most important points in the secret treaty which we gave to the world in March last are 
 embodied in this, and time will show whether this is the full extent of China's gratitude 
 to Russia." 
 
 For a criticism of this document, see Cordier's Histoire des Relations de la Chine avec 
 les Puissances Occidentales, 1860-1902, vol. 2, p. 343. 
 
 In an article entitled " Manchuria — A Chinese View of the Situation," by " An Admirer 
 of Li Hung Chang," which was published in the London Daily Telegraph of February 15, 
 1910, it was stated that while attending the Coronation ceremonies of Emperor Nicholas at 
 Moscow, in May, 1896, Li Hung Chang concluded with the Russian Minister for Foreign 
 Affairs (Prince Lobanoff-Rostovsky) a secret treaty of alliance, the French text of which 
 was given together with the following English translation : 
 
 Treaty of Alliance between China and Russia. — May, 1896. 
 
 " Article I. — Every aggression directed by Japan, whether against Russian territory in 
 Eastern Asia, or against the territory of China or that of Korea, shall be regarded as 
 necessarily bringing about the immediate application of the present treaty. 
 
 " In this case the two High Contracting Parties engage to support each other reciprocally 
 by all the land and sea forces of which they can dispose at that moment, and to assist 
 each other as much as possible for the victualling of their respective forces. 
 
 "Article II. — -As soon as the two High Contracting Parties shall be engaged in 
 common action no treaty of peace with the adverse party can be concluded by one of 
 them without the assent of the other. 
 
 " Article III. — During the military operations all the ports of China shall, in case of 
 necessity, be open t-o Russian warships, which shall find there on the part of the Chinese 
 authorities all the assistance of which they may stand in need. 
 
 " Article IV. — In order to facilitate the access of the Russian land troops to the 
 menaced points, and to ensure their means of subsistence, the Chinese Government consents 
 to the construction of a railway line across the Chinese provinces of the Amour [i.e., Heilung- 
 kiang] and of Guirin (Kirin) in the direction of Vladivostok. The junction of this railway 
 with the Russian railway shall not serve as a pretext for any encroachment on Chinese terri- 
 tory nor for any infringement of the rights of sovereignty of his IMajesty the Emperor of 
 China. The construction and exploitation of this railway shall be accorded to the Russo- 
 Chinese Bank, and the clauses of the Contract which shall be concluded for this purpose 
 shall be duly discussed between the Chinese Minister in St. Petersburg and the Russo- 
 Chinese Bank. 
 
 " Article V. — It is understood that in time of war, as indicated in Article I, Russia 
 shall have the free use of the railway mentioned in Article IV, for the transport and 
 provisioning of her troops. In time of peace Russia shall have the same right for the 
 transit of her troops and stores, with stoppages, which shall not be justified by any other 
 motive than the needs of the transport service. 
 
 " Article VI. — The present treaty shall come into force on the day when the contract 
 stipulated in Article IV, shall have been confirmed by his IMajesty the Emperor of 
 China. It shall have from then force and value for a period of fifteen years. Six 
 months before the expiration of this term the two High Contracting Parties shall deliberate 
 concerning the prolongation of this treaty." 
 
 The substantial accuracy of the disclosure thus made would appear to be adequately 
 confirmed by the following extract translated from Ma Mission en Chine: 1893-1897 
 (Paris, Plon-Nourrit, 1918), by ]\I. A. Gerard, who during the period indicated was French 
 Minister to China : 
 
 " Although the treaty was intended to remain secret, I one day had in my hands for
 
 82 CHINA TREATIES AND AGREEMENTS 
 
 a few minutes, during a visit which I made in the spring of 1897 to Li Hung Chang at 
 his residence in Peking, the copy of the document which he had signed the previous year 
 with Prince Lobanoff . . . The EngHsh translation of this text was pubHshed fifteen 
 years later, when the treaty itself had expired, in the London Daily Telegraph, by the 
 son of Li Hung Chang, Li Ching Mai, who was then Chinese Minister at the Court of 
 St James, and who sought to defend his father's memory against unjust attacks. The 
 treaty was in fact a treaty of alliance, concluded for a period of fifteen years, by which 
 the Chinese Government obligated itself, in the event of an aggression by Japan, to place 
 at the disposal of the Russian Government its ports and all means of defence. The 
 principal clause of the treaty was the assent given by the Chinese Government to the 
 construction and operation, in the Manchurian provinces of Amur (Heilungkiang) and 
 Kirin, of a line of railway connecting with the Russian Siberian lines, the concession for 
 which was made to the Russo-Chinese Bank by a contract to be signed between the Chinese 
 Minister at St. Petersburg and the delegate of the Bank (Article IV). It was stipulated 
 in Article VI that the treaty should come into force on the day on which the contract 
 for the construction and operation of the railway should have been approved and ratified 
 by the Emperor of China. . . . 
 
 " The English newspapers at Shanghai had published, long before it was signed, the 
 alleged text of the treaty and of the contract. They published another so-called version 
 in the month of October, 1896, some days after the ratification at Peking of the contract 
 in regard to the railway. These various texts, to which the English press gave the name of 
 the ' Cassini Convention,' were apocryphal. They confused the treaty of alliance, properly 
 so called, with the railway contract. . . . The true facts as here outlined establish that 
 there never was, properly speaking, any ' Cassini Convention ' ; that the treaty of alliance 
 was concluded at St. Petersburg in the month of May, 1896, between Li Hung Chang and 
 Prince Lobanoff; that the railway contract was signed on September 8th following, also 
 at St. Petersburg, by the Chinese Minister, Shu Ching Cheng, and the delegates of the 
 Russo-Asiatic Bank ; and that it was this contract for whose definite ratification at Peking 
 on September 30th Count Cassini waited before proceeding on his way to Russia." 
 
 In the summer of 1918, the military situation which had developed in Siberia led to a 
 suggestion by the American Government for the unified control of the Siberian railway 
 system (including the Chinese Eastern Railway), under the direction of Mr. John F. 
 Stevens and the Russian Railway Corps associated with him, which the Government of the 
 United States had placed at the disposal of the Russian Government during the Kerensky 
 regime, and which had been entrusted by that administration with the reorganization of 
 traffic between European Russia and Vladivostok. The overthrow of the Kerensky Govern- 
 ment had interrupted the work of Mr. Stevens and his associates ; the Bolsheviks, in co- 
 operation with liberated German and Austrian prisoners of war, had taken possession of the 
 Trans-Baikal, Amur and Ussuri sections of the Siberian system, and inhibited all traffic 
 thereon save in their own interests ; the liberated Czecho-Slovak prisoners had been pre- 
 vented from passing eastwards over the line in order to join the forces of the Allies in 
 Europe ; to assist them and to protect the military stores accumulated at Vladivostok, the 
 American, British, Chinese, French, Italian and Japanese Governments had despatched ex- 
 peditionary forces to occupy Vladivostok and take possession of the several branches of the 
 Ussuri Railway ; the Japanese and Chinese Governments, in pursuance of the military 
 agreement of INIarch 25, 1918 (No. 1918/4, post), had taken possession of the Chinese 
 Eastern Railway, and, after the opening of the main Trans-Siberian line by the Czecho- 
 slovak forces, of the Trans-Baikal Railway as far west as Chita. The railway service had 
 become so disorganized as to be incapable of satisfying the economic needs of Siberia, or 
 even the military requirements of the Allied forces. Under these circumstances, the Ameri- 
 can Government offered the suggestion that, for the purpose of more efficient technical man- 
 agement, and without prejudice to any claims of financial or political interest, the Siberian 
 railway system (including therein the Chinese Eastern Railway) should during the existing 
 emergency be entrusted to a Commission directed by Mr. Stevens. The other interested 
 Governments having indicated their willingness to accept any arrangement to that end 
 which might be agreed upon between the American and Japanese Governments, negotiations 
 ensued between the American Ambassador at Tokyo and the Japanese Minister for Foreign 
 Affairs, which on January 9, 1919, resulted in an informal agreement as subsequently (March 
 17, 1919) announced by the Japanese Foreign Office, to the following effect: — 
 
 Agreement regarding Inter-Allied Supervision of Siberian Railway System. — 
 
 January 9, 1919. 
 
 " Plan for the supervision of the Chinese Eastern and the Trans-Siberian Railways in 
 the zone in which the Allied military Force? are now operating.^ 
 
 " 1. — The general supervision of the railways in the zone in which the Allied Forces 
 are now operating shall be exercised by a special Inter-Allied Committee, which shall consist 
 of representatives from each Allied Power having military forces in Siberia, including 
 Russia, and the Chairman of which shall be a Russian.
 
 NUMBER 1896/5: SEPTEMBER 8, 1896: NOTES 83 
 
 "The following boards shall be created, to be placed under the control of the Inter- 
 Allied Committee, 
 
 (a) A Technical Board consisting of railway experts of the nations having mili- 
 tary forces in Siberia, for the purpose of administering technical and economic manage- 
 ment of all railways in the said zone. 
 
 (b) An Allied Military Transportation Board, for the purpose of co-ordinating 
 military transportation under instructions of the proper military authorities. 
 
 " 2. — The protection of the railways shall be placed under the Allied military forces. At 
 the head of each railway shall remain a Russian manager or director with the powers 
 conferred by existing Russian law. 
 
 " 3. — The Technical Board shall elect a President to whom shall be intrusted the 
 technical operation of the Railways. In matters of such technical operation, the President 
 may issue instructions to the Russian officials mentioned in the preceding clause. He may 
 appoint assistants and inspectors in the service of the Board, chosen from among the na- 
 tionals of the Powers having military forces in Siberia, to be attached to the central office 
 of the Board, and define their duties. He may assign, if necessary, the corps of railway 
 experts to the more important stations. In assigning railway experts to any of the stations, 
 interests of the respective Allied Powers in charge of military protection of such stations 
 shall be taken into due consideration. He shall distribute the work among the clerical stafif 
 of the Board whom he may appoint in his discretion. 
 
 "4. — The clerical staff of the Inter-Allied Committee shall be appointed by the Chairman 
 of the Committee who shall have the right of distributing the work among such employees, 
 as well as of dismissing them. 
 
 " 5. — The present arrangement shall cease to be operative upon withdrawal of the 
 foreign military forces from Siberia, and all the foreign railway experts appointed under 
 this arrangement shall then be recalled forthwith." 
 
 Simultaneously and in furtherance of this Plan the Japanese Minister for Foreign 
 Affairs approved and adopted the following Memorandum in reference thereto : — 
 
 " Me>noraiidum. 
 
 "American Embassy, Tokye. 
 
 " As the result of informal conversations with Viscount Uchida it is understood — 
 
 " First : That Viscount Uchida will forward the amended plan to Viscount Ishii, with 
 instructions to present it to the Department of State and to explain that it is submitted 
 with the understanding that Mr. Stevens be named as President. 
 
 "Second: That the Inter-Allied Committee shall be composed of one representative of 
 each of the following Governments: China, France, Great Britain, Italy, Japan, Russia, the 
 United States, leaving question of Czecho-Slovaks to be discussed. 
 
 "Third: That each of the above named Governments shall select one technical rail- 
 way expert for membership on the Technical Board. 
 
 "Fourth: That Mr. Stevens' selection as President shall not prevent his selection as a 
 member of the Technical Board. 
 
 "Fifth: That the Government of Japan and the United States shall at once advise the 
 above named Associated Governments of agreed plan, including the understanding in refer- 
 ence to the selection of Mr. Stevens and request their adherence and cordial cooperation. 
 
 " Sixth : That this plan shall be interpreted as a sincere effort temporarily to operate 
 the Chinese Eastern and Trans-Siberian Railways in the interest of the Russian people, with 
 a view to their ultimate return to those in interest, without the impairing of any existing 
 rights; That in intrusting to Mr. Stevens, as President, the Technical operation of these 
 railways it is understood the Government of Japan and the United States are both prepared 
 to give him the authority and support which will be necessary to make his efforts effective. 
 
 " Tokyo, January 9, 1919." 
 
 The Plan, as construed by the ^Memorandum of January 9th, having thereafter been 
 formally approved by the Government of the United States, under a reservation of financial 
 responsibility, and on the explicit understanding that the word "interests" (as used in 
 section 3 of the Plan) should be construed as implying only military convenience as dis- 
 tinguished from any political or territorial rights or spheres of interest, was later sub- 
 mitted to the other Governments concerned, and accepted by them. The system of tech- 
 nical control thus contemplated was put into effect on March 10, 1919. 
 
 At a meeting of the commanders of the allied expeditionary forces in Siberia, held at 
 Vladivostok during April, 1919, it was decided to allocate as follows the military protection 
 of the several sections of the Trans-Siberian and Chinese Eastern Railway systems : — 
 United States: 
 
 Ussuri Railway, from Vladivostok (inclusive) to Nikolsk (exclusive) ; branch to 
 
 Suchan Mines ; and section from Spasskoe to Ussuri ; 
 Trans-Baikal Railway, from Verkhneudinsk (inclusive) to Baikal City (inclusive) ; 
 
 and 
 At Harbin, garrison of 1,000 men.
 
 84 CHINA TREATIES AND AGREEMENTS 
 
 China : 
 
 Chinese Eastern Railway, from Nikolsk (inclusive) to Manchuli (exclusive), and 
 from Harbin to Changchun (inclusive) ; and 
 Ussuri to Guberovo. 
 Japan : 
 
 Ussuri Railway, from Nikolsk to Spasskoe, and from Guberovo to Habarovsk ; 
 
 Amur Railway, entire ; and 
 
 Trans-Baikal Railway, from Manchuli (inclusive) to Verkhneudinsk (exclusive). 
 
 Note 3. 
 
 The statutes or charter of the Chinese Eastern Railway Company are given as follows 
 (in abridged translation) in Rockhill, p. 215 (citing B. & F. State Papers, Vol. 88, p. 773, 
 and Official Gazette, No. 137, December 11/23, 1896) : 
 
 Statutes of the Chinese Eastern Railway Company 
 
 " St. Petersburg, December 4/16, 1896. 
 
 [Translation.] 
 
 " The Minister of Finances presented on the 8/20th December, 1896, to the Ruling 
 Senate for publication a copy of the Statutes of the Chinese Eastern Railway Company, 
 which were Imperially confirmed on the 4/16th December, 1896. 
 
 Statutes of the Chinese Eastern Railway Company. 
 
 " Formation of the Company. — § 1. On the strength of the Agreement concluded on 
 the 27th August/8th September, 1896, by the Imperial Chinese Government with the Russo- 
 Chinese Bank, a Company is formed under the name of the " Eastern Chinese Railway 
 Company " for the construction and working of a railway within the confines of China 
 from one of the points on the western borders of the Provinces of Hei-Lun-Tsian, to one 
 of the points on the eastern borders of the Province of Ghirin and for the connection of 
 this railway with those branches which the Imperial Russian Government will construct 
 to the Chinese frontier from Trans-Baikalia and the southern Ussuri lines. [Observation. 
 The Company is empowered, subject to the sanction of the Chinese Government, to exploit, 
 in connection with the railway or independently of it, coal mines, as also to exploit in 
 China other enterprises — mining, industrial, and commercial. For the working of these 
 enterprises which may be independent of the railway, the Company shall keep accounts 
 separate from those of the railway.] 
 
 " The formation of the Company shall be undertaken by the Russo-Chinese Bank. 
 
 "With the formation of the Company all rights and obligations are transferred to it in 
 regard to the construction and working of the line ceded in virtue of the above-named 
 Agreement of the 27th August/8th September, 1896. 
 
 " The Company shall be recognized as formed on the presentation to the Minister of 
 Finances of a warrant of the State Bank certifying the payment of the first instalment on 
 the shares. In any case such payment must be made not later than two months from the 
 day of confirmation of the present Statutes. 
 
 " The succeeding instalments on the shares shall be paid in such orders of gradation that 
 the shares shall be fully paid up at their nominal value not later than one year from the 
 day of formation of the Company. 
 
 "Owners of shares of the Company may only be Russian and Chinese subjects. 
 
 "Term of Concession. — §2. In virtue of the Agreement with the Chinese Government, 
 the Company shall retain possession of Chinese Eastern Railway during the course of 
 eighty years from the day of the opening of traffic along the whole hne. 
 
 " Obligation towards the Russian Government. — § 3. In recognition that the enter- 
 prise of the Chinese Eastern Railway will be realized only owing to the guarantee given by 
 the Russian Government in regard to the revenue of the line for covering working expenses 
 as well as for effecting the obligatory payments on the bonds (§§11, 16), the Company, on 
 its part, binds itself to the Russian Government during the whole term of the Concession 
 under the following obligations : — 
 
 " (a) The Chinese Eastern Railway with all its appurtenances and rolling-stock must 
 be always maintained in full order for satisfying all the requirements of the service of 
 the line, in regard to the safety, comfort, and uninterrupted conveyance of passengers 
 and goods : 
 
 " (b) The traffic on the Chinese Eastern line must be maintained conformably with the 
 degree of traffic on the Russian railway lines adjoining the Chinese line; 
 
 " (c) The trains of all descriptions running between the Russian Trans-Baikal and
 
 NUMBER 1896/5: SEPTEiMBER 8, 1896: NOTES 85 
 
 Ussuri lines shall be received by the Chinese Eastern Railway and dispatched to their 
 destination in full complement without delay ; 
 
 •• {d) All through trains, both passenger and goods, shall be dispatched by the Eastern 
 Chinese Railway at rates of speed not lower than those which shall be adopted on the 
 Siberian Railway ; 
 
 " (e) The Chinese Eastern Railway is bound to establish and maintain a telegraph along 
 the whole extent of the line and to connect it with the telegraph-wire of the Russian 
 adjoining railways, and to receive and dispatch without delay through telegrams sent from 
 one frontier station of the line to another, as also telegrams sent from Russia to 
 China, and conversely ; 
 
 " (/) Should, with the development of traffic on the Chinese Eastern Railway, its techni- 
 cal organization prove insufficient for satisfymg the requirements of a regular and unin- 
 terrupted passenger and goods traffic, the Chinese Eastern Railway shall mimediately, on 
 receipt of a notification on the part of the Russian railways to augment its capacity to a 
 corresponding degree, adopt the necessary measures for further developing its technical 
 organization and the traffic on it. In the event of a difference of opinion arising between 
 the above-mentioned railways, the Chinese Eastern Railway shall submit to the decision 
 of the Russian Minister of Finances. If the means at the command of the Chinese Eastern 
 Railway prove insufficient for carrying out the necessary work of its development, the Board 
 of Alanagement of the railway may at all times apply to the Russian Minister of Finances 
 for pecuniary assistance on the part of the Russian Government; 
 
 " (g) For all transit conveyance of passengers and goods, as also for the transmission 
 of telegrams there will be established -by agreement of the Company with the Russian 
 Government for the whole term of duration of the Concession (§2), maximum tariffs, 
 which cannot be raised without the consent of the Russian Government during the whole 
 term above referred to. Within these limits the tariffs of direct communication both 
 for railway carriage and telegrams will be fixed by the Board of Management of the 
 Company on the strength of a mutual agreement with the Russian Minister of Finances; 
 
 " (h) The Russian letter and parcels-post, as also the officials accompanying the same, 
 shall be carried by the Chinese Eastern Railway free of charge. 
 
 " For this purpose the company shall set apart in each ordinary passenger train a car- 
 riage compartment of 3 fathoms in length. The Russian postal authorities may, moreover, 
 if they deem it necessary, place on the line postal carriages, constructed by them at their 
 own cost; and the repair, maintenance (interior fittings excepted) as well as the running 
 of such carriages with the trains shall be free of charge and at the cost of the railway. 
 
 " The above-mentioned engagements, by which, as already stated, the grant of a 
 guarantee by the Russian Government is conditioned and the consequent realization of the 
 enterprise of the Chinese Eastern Railway, shall be binding on the railway until the 
 same, after the expiration of the eighty years' term of the Concession, shall without pay- 
 ment become the property of the Chinese Government (§29). The redemption of the line 
 from the Company before the above-mentioned term in accordance with § 30 of the present 
 Statutes shall not in any way diminish the effect of the above specified engagements, and 
 these latter, together with the railway, shall be transferred to its new proprietor. 
 
 '■ In the same manner during the course of the whole eighty years' term of the Conces- 
 sion (§2) the following privileges granted to the railway by the Imperial Chinese Govern- 
 ment shall remain in force : — 
 
 " (a) Passengers' luggage, as also goods, carried in transit from one Russian station 
 shall not be liable to any Chinese customs duties, and shall be exempt from all internal 
 Chinese dues and taxes ; 
 
 " (b) The rates for the carriage of passengers and goods, for telegrams, &c., shall be 
 free from all Chinese taxes and dues ; 
 
 " (r) Goods imported from Russia into China by rail and exported from China to 
 Russia in the same manner shall pay respectively an import or export Chinese duty to 
 the extent of one-third less as compared with the duty imposed at Chinese seaport custom- 
 houses. 
 
 (d) If goods imported by the railway are destined for conveyance inland they shall 
 in such case be subject to payment of transit duty to the extent of one-half of the import 
 duty levied on them, and they shall then be exempted from any additional imposts. Goods 
 which shall not have paid transit duty shall be liable to payment of all established internal 
 barrier and likin dues. 
 
 "Immunities of the Company in Regard to Russian Customs Dues. — §4. In regard 
 to the place of acquisition of materials for the requirements of the railway, the Com- 
 pany shall notbe liable to any limitations. 
 
 "If materials be obtained beyond the confines of Russia, they shall, on importation 
 through Russian territory, be freed from payment of Russian customs duties. 
 
 "Technical Conditions; Periods of Time for the Commencement and Termination
 
 86 CHINA TREATIES AND AGREEMENTS 
 
 of the Work. — §5. The breadth of the railway track must be the same as that of the 
 Russian hnes (5 feet). 
 
 " The Company must commence the work not later than the 16th August, 1897, and 
 conduct it in such a manner that the whole line shall be completed not later than six years 
 from the time when the direction of the line shall be finally determined and the necessary 
 land assigned to the Company. 
 
 " When tracing the line of the railway, cemeteries and graves, as also towns and vil- 
 lages, must as far as possible, be left aside of the railway. 
 
 " When effecting the connection, m accordance with § 1 of these Statutes, of the Chinese 
 Eastern Railway with the Russian Trans-Baikal and South Ussuri lines the Company 
 shall have the right, with a view of reduction of expenditure, of abstaining from build- 
 ing its own frontier stations and of utilizing the frontier stations of the above-named 
 Russian lines. The conditions on which they shall be utilized shall be determined by 
 agreement of the Board of the Company with the Boards of the respective railways. 
 
 " Tariffs. — § 6. The tariffs for the carriage of passengers and goods, as also for sup- 
 plementary carriage rates, shall be determined by the Company itself, within the limits 
 indicated in § 3. 
 
 " Order of Examination of Legal Suits, and the Establishment of Rules for Railway 
 Conveyance. — §7. Offences, litigation, &c., on the territory of the Chinese Eastern Rail- 
 way shall be dealt with by local authorities, Chinese and Russian, on the basis of existing 
 Treaties. 
 
 " In regard to the carriage of passengers and goods, the responsibility for such con- 
 veyance, the lapse of time for claims, the order of recovering money from the railway 
 when adjudged, and the relations of the railway to the public shall be defined in rules 
 drawn up by the Company and established before the opening of the railway traffic; these 
 rules shall be framed in accordance with those existing on Russian railways. 
 
 " Maintenance of Security and Order on the Railway. — § 8. The Chinese Govern- 
 ment has undertaken to adopt measures for securing the safety of the railway and of all 
 employed on it against any extraneous attacks. 
 
 " The preservation of law and order on the lands assigned to the railway and its ap- 
 purtenances shall be confided to police agents appointed by the Company. 
 
 " The Company shall for this purpose draw up and establish police regulations. 
 " Foundation Capital of the Company. — § 9. The whole amount of the capital of 
 the Company shall be determined according to the cost of construction calculated on the 
 basis of estimates framed when the survey of the line was carried out. The foundation 
 capital shall be charged with — 
 
 " (a) The payment of interest and amortization of the foundation capital during the 
 construction of the railway ; 
 
 " (b) The purchase from the Russian Government of the results of the surveys of the 
 direction of the railway to Manchuria, which were made by Russian engineers, the sum 
 payable for these surveys being determined by agreement of the Russian Minister of 
 Finances with the Company. 
 
 " The capital of the Company shall be formed by the issue of shares and bonds. 
 " Share Capital.— § 10. The share capital of the Company shall be fixed at 5,000,000 
 nominal credit roubles, and divided into 1,000 shares at 5,000 nominal credit roubles. 
 " The shares are to be issued at their nominal value. 
 " The guarantee of the Russian Government does not extend to them. 
 "Bond Capital; Guarantee of Russian Government on Bonds. — § 11. The remaining 
 portion of the capital of the Company will be formed by the issue of bonds. The bonds 
 will be issued as required, and each time with the special sanction of the Minister of 
 Finances. The nominal amount and value of each separate issue of bonds, the time and 
 condition of the issue, as also the form of these bonds, shall be subject to the sanction 
 of the Minister of Finances. 
 
 " The Russian Government will guarantee the interest on and amortization of the bonds. 
 
 " For the realization of these bonds the Company must have recourse to the Russo- 
 
 Chinese Bank, but the Russian Government reserves to itself the right of appropriating 
 
 the bond loan at a price which shall be determined between the Company and the Bank, 
 
 and to pay the Company the agreed amount in ready money. 
 
 " Guarantee of Realized Bond Capital. — § 12. As payments are received for bonds 
 guaranteed by the Russian Government, the Company shall be bound to keep such sums, 
 or interest bearing securities purchased with the same by permission of the Russian 
 Minister of Finances, imder the special supervision of the Russian Ministry of Finances. 
 
 " Out of the above receipts the Company shall have the right to make the following 
 payments : — 
 
 " (a) According to actual fulfilment of the work in progress, and execution of orders, 
 and at the time when various expenditures shall become necessary, such payments to be 
 made on the scale and on the conditions specified in the working estimates ; 
 
 " (b) During the construction of the line, of interest, as it becomes due, on the 
 bonds issued by the Company, subject to the conditions of their issue, and the Company
 
 NUMBER 1896/5 : SEPTEMBER 8, 1896 : NOTES 87 
 
 shall pay the sums necessary for the above purpose within the limits of the amount 
 realized by it in the issue of its bonds. 
 
 " Shares.— § 13. On the payment of the first allotment on the shares, the founders 
 shall receive temporary certificates on which subsequently, when the Board of Manage- 
 ment of the Company shall have been formed, the receipt of the further instalments on 
 the shares will be inscribed. 
 
 " When the shares shall be fully paid up the temporary certificates issued to the 
 founders shall be replaced by shares. 
 
 '■ The shares of the Company are issued to bearer, under the signature of not fewer 
 than three members of the Board of Management. To the shares will be attached a coupon 
 sheet for the receipt once yearly under them of any dividend that may be payable. 
 " On the coupon sheets becoming exhausted new sheets will be issued. 
 " A dividend on the shares out of the net profits of any year, supposmg such accrue, 
 shall be payable on the adoption by the general meeting of shareholders of the Annual 
 Report for that year, and the dividend shall be payable at the offices of the Company, 
 or at such places which it may indicate. 
 
 "The Company shall notify for general information in the 'Official Gazette' and in 
 the 'Finance ^Messenger,' as also in one of the Chinese newspapers, the amount and place 
 of payment of the dividend. 
 
 " Reserve Capital. — § 14. The reserve capital is destined — 
 " (a) For the capital repair of the railway, its buildings and appurtenances; 
 " lb) For defraying extraordinary expenditure of the Company in repairing the railway 
 and its appurtenances. 
 
 " The reserve capital of the Company is formed out of annual sums put aside from 
 the net profits of the working of the railway (§17). 
 
 " The reserve capital must be kept in Russian State interest bearing securities, or in 
 railway bonds 'guaranteed by the Russian Government. 
 
 " At the expiration of the term of possession of the railway by the Company the 
 reserve capital shall be first of all employed in the payment of the debts of the Company, 
 including among them sums due to the Russian Government, if such exist ; after the 
 debts of the Company shall have been paid, the remainder of the reserve capital shall be 
 divided among the shareholders. In the event of the redemption of the railway by the 
 Chinese Government the reserve capital becomes the property of the shareholders. 
 
 " Net Revenue.— § IS. The net revenue of the Company shall be the remainder of 
 the gross receipts, after deduction of working expenses. 
 " Under these expenses are classed : — 
 
 " (a) General outlays, including assignments towards pension and relief funds, if such 
 be established on the line ; 
 
 " {b} Maintenance of the Staff of the Board of Management, and of all the services; 
 as also the maintenance of employes and labourers not on the permanent list; 
 
 " (c) Outlays for materials and articles used for the railways as also expenditure in the 
 shape of remuneration for the use of buildings, rolling-stock, and other various requisites, 
 for the purposes of the railway. 
 
 " (d) Outlays for the maintenance, repair and renewal of the permanent way, works of 
 construction, buildings, rolling-stock, and other appurtenances of the railway ; 
 
 " (e) Expenditure connected with the adoption of the measures and instructions of 
 the Board of Management for insuring the safety and regularity of the railway service; 
 " (/) Expenditure for the improvement and development of the railway, as also for 
 creating and developing its resources. 
 
 " Additional Payments by the Russian Government Under the Guarantee, and the 
 Order of Settlement of Accounts between the Company and the Russian Government 
 in Respect of these Additional Payments. — § 16. Should the gross receipts of the rail- 
 way prove insufficient for defraying the working expenses and for meeting the yearly 
 payments due on the bonds, the Company will receive the deficient sum from the Russian 
 Government through the Russian Minister of Finances. The payments referred to will be 
 made to the Company as advances, at a rate of interest of 6 per cent, per annum. Sums 
 paid in excess to the Company in consequence of its demands and on account of the 
 guarantee will be deducted from succeeding money payments. 
 
 "On the presentation to the general meeting of shareholders of the annual report of 
 the working of the railway for a given year the Company shall at the same time submit 
 to the general meeting, for confirmation, a detailed statement of the sums owing by the 
 Company to the Russian Government, with the interest that has accrued thereon. On 
 the confirmation of this statement by the general meeting, the Board of Management shall 
 deliver to the Russian Government an acknowledgment of the Company's debt, to the 
 full determined amount of the same, and this acknowledgment, until its substitution by 
 another, shall bear annually interest at the rate of 6 per cent. 
 
 " The acknowledgment above mentioned given by the Board of Management to the 
 Russian Government shall not be subject to bill or deed stamp tax.
 
 88 CHINA TREATIES AND AGREEMENTS 
 
 " [Subjects of minor importance are dealt with in the following sections: — 
 
 " § 17. Distribution of net profits of the railway. 
 
 " § 18. Functions of Board of Management, the seals of which will be at Peking and 
 St. Petersburg. 
 
 " § 19. Constitution of the Board, which is to consist of nine members elected by the 
 shareholders. The Chairman is to be appointed by the Chinese Government ; the Vice- 
 Chairman is to be chosen by the members of the Board from among themselves. 
 
 "§20. Order of transaction of the business of the Board. 
 
 "§21. General meetings of shareholders and the subjects that shall come under their 
 notice. 
 
 " § 22. Order of convening general meetings. 
 
 " § 23. Conditions under which general meetings shall be recognized as legally held. 
 
 "§24. Participation of shareholders in proceedings of general meetings. 
 
 "§25. Local management of works of construction. 
 
 " § 26. Local management of railway when in working order. 
 
 "§27. Questions to be submitted for confirmation by Russian Minister of Finances. 
 
 "§28. Committee of audit.] 
 
 " Gratuitous Entrance into Possession of Railway by Chinese Government. — 
 § 29. In accordance with the Agreement concluded with the Chinese Government, the lat- 
 ter, after the expiration of eighty years of possession of the railway by the Company, 
 enters into possession of it and its appurtenances. 
 
 " The reserve and other funds belonging to the Company shall be employed in paying 
 the money due to the Russian Government under the guarantee (§ 16) and in satisfaction 
 of other debts of the Company, and the remainder shall be distributed among the share- 
 holders. 
 
 " Any money that may remain owing by the Company to the Russian Government 
 at the expiration of eighty years in respect of the guarantee shall be written off. 
 
 " The Russo-Chinese Bank will incur no responsibility in respect of the same. 
 
 " Right of the Chinese Government to Acquire the Railway on the Expiration of 
 Thirty-six Years. — § 30. In accordance with the agreement concluded with the Chinese 
 Government, on the expiration of thirty-six years from the time of completion of the 
 whole line and its opening for traffic, the Chinese Government has the right of acquiring 
 the line, on refunding to the Company in full all the outlays made on it, and on payment 
 for everything done for the requirements of the railway, such payments to be made with 
 accrued interest. 
 
 " It follows as a matter of course that the portion of the share capital which has been 
 amortized by drawing and the part of the debt owing to the Russian Government under 
 the guarantee and repaid out of the net profits (§ 17) will not constitute part of the 
 purchase money. 
 
 " In no case can the Chinese Government enter into possession of the railway before 
 it has lodged in the Russian State Bank the necessary purchase money. 
 
 _" The purchase money lodged by the Chinese Government shall be employed in 
 paying the debt of the Company under its bonds and all sums, with interest, owing to the 
 Russian Government, the remainder of the money being then at the disposal of the 
 shareholders." 
 
 See, also, the first supplement to the charter, February 5/17, 1899, printed at p. 157, 
 post, as an annex to the Agreement concerning the Southern Manchurian Branch of the 
 Chinese Eastern Railway, July 6, 1898 (No. 1898/15, post). 
 
 Note 4. 
 
 See in this connection the agreements of July 5/18, 1901 (No. 1901/2) and January 1/14, 
 1902 (No. 1902/1, post), in regard to the jurisdiction over Chinese subjects. As to the 
 jurisdiction over Russian subjects in the zone of the Chinese Eastern Railway, consult 
 the Ukazto the Governing Senate on that subject, under date of July 20/August 2, 
 1901 — originally secret, but subsequently made public in the course of a judicial proceeding 
 — of which the translation is as follows : 
 
 Russian Imperial Ukaz regarding Jurisdiction in Chinese Eastern Railway Zone. — 
 
 August 2, 1901. 
 
 "The construction of the Chinese Eastern Railway and the realization of the enter- 
 prises dependent upon it have attracted a great number of Russians to the line of the 
 railway, which passes through the territories of China, where Our subjects, by virtue of the 
 treaties concluded between the Imperial Government and the Government of the Bogdokhan, 
 have the_ right of being judged in accordance with Russian laws. Desiring to place on a 
 firm basis of justice the actions that may arise between Russian subjects on the line of 
 exploitation of the above-mentioned railway. We have found it good to submit these 
 actions to the competence of the nearest tribunals of the Empire.
 
 NUMBER 1896/5: SEPTEMBER 8, 1896: NOTES 89 
 
 "Having studied and approved the proposals elaborated on this subject by a Special 
 Commission under Our orders, We decree: , • • 
 
 '• 1. — In order to enforce justice and preventive measures upon the line of exploitation 
 of the Chinese Eastern Railway, in matters which are within the competence of the 
 Russian judicial authorities, to establish the posts of Justices of the Peace, submitting 
 the above-mentioned line of exploitation to the jurisdiction of the nearest district courts 
 of the Empire. ... 
 
 "2.— To define as follows the jurisdiction of the judicial institutions mentioned in 
 §1: 
 
 "a) The competency of these institutions includes matters arising on the line of 
 exploitation of the Chinese Eastern Railway between Russian subjects exclusively, and 
 particularly, in criminal matters, where the accused and the injured parties are Russians, 
 and in civil matters, where both sides, plaintiff and defendant, are Russian subjects: the 
 judicial institutions act, in the examination and decision of cases, as well as in preliminary 
 investigations, in accordance with §§ 84, 88, 89 and 90 of the Temporary Regulations for 
 the Administration of the Kwantung Region. 
 
 "b) The Russian judicial authorities have the right to make preliminary investiga- 
 tions in criminal matters arising on the above-mentioned line, when the identity of the 
 accused person is unknown but the injured party is a Russian subject; but if in the 
 course of the inquiry it appears that the accused person is not a Russian subject, the 
 case .should be referred to the proper quarter by the official of the Ministry for Foreign 
 Affairs stationed in Manchuria, or by the Russian Consul in Xewchang if the matter 
 arose within the limits of the above-mentioned open port. 
 
 " c) To extend the arrangement outlined in this paragraph to the Southern Branch 
 of the Chinese Eastern Railway, with the exception of that portion of it which traverses 
 the Kwantung Region. 
 
 "3._To transfer to the Governor-General of the Amur Region, in so far as concerns 
 matters that arise within the jurisdiction of the Justices of the Peace who are under 
 the control of the district courts of the Governor-General of the Amur Region, the rights 
 and duties attaching to the chief of the Kwantung Region in those cases specified in 
 Remark (a) to Article 96 of the Temporary Regulations for the Administration of the 
 Kwantung Region. 
 
 " 4. — To impose upon the frontier guards of the Trans-Amur Region the duty of 
 executing the judgment and orders of the Justices of the Peace and other legal institutions, 
 as well as the serving of summons and other documents on the parties, on the line of the 
 Chinese Eastern Railway. 
 
 "5. — In supplement to the present arrangements of those judicial institutions, to in- 
 stitute for each of the district courts of Vladivostok and Chita, as well as for the Appeal 
 Court of Irkutsk, the post of Assistant Prosecutor in each of these tribunals. 
 
 " 6. — To give to each of the officials mentioned above in §§ 1 and 5 the maintenance, 
 rights and privileges established by the Temporary Regulations for the Administration 
 of the Kwantung Region for the Justices of the Peace of that Region and for the Assistant 
 Prosecutor of the District Court of Port Arthur, with the exception that they are 
 to receive lodgings instead of an allowance for that purpose. 
 
 " 7. — To entrust to the Minister of Justice, after a preliminary understanding with 
 the Minister of Finance, the appointment of the Justices of the Peace established on the 
 line of the Chinese Eastern Railway, and the determination of their number, their place 
 of residence, and their dependence upon the District Courts of the Empire. 
 
 " 8. — To insert annually in the budget of the Ministry of Justice the sums necessary 
 for the maintenance of the officials mentioned in §§ 1 and 5, to an amount to be determined 
 by the Minister of Justice in accord with the Minister of Finance, and in reimbursement 
 of this expenditure by the State, to demand from the treasury of the Chinese Eastern 
 Railway the payment of a sum equivalent to this amount. Apart from the yearly pay- 
 ment of the said sum, to impose upon the said Company the obligation : (a) To furnish 
 the Justices of the Peace and the Assistant Prosecutors, on the line of the Chinese Eastern 
 Railway, lodgings and their transportation within the limits of their districts; and (b) 
 To reimburse to the Government Treasury all expenses incurred by them and all the 
 transportation money and all sums established by law for their 'maintenance during their 
 transit to their posts. 
 
 " 9. — To give the Chinese Eastern Railway Company the right to sue civil cases and 
 to be defendant in civil cases, in matters concerning its property, upon the terms specified 
 in Section I, Book III, of the Code of Civil Procedure (Articles 1282-99 [Relating to suits 
 by or against Governmental institutions. — Editor.] ; Volume XVI, Chapter I, Collection 
 of Laws, edition of 1892), and with the application of the provisions contained in Remark 
 2 to Article 1289 of the Code of Civil Procedure. 
 
 " 10. — To extend to employees of the Chinese Eastern Railway, in respect to criminal 
 prosecutions against them for wrong-doing in the course of their functions, and claims 
 against them for loss or damage due to their carelessness, neglect or delay, the pro- 
 visions established in Articles 1066-1123 of the Judicial Regulations and 1316-1330 of the
 
 90 CHINA TREATIES AND AGREEMENTS 
 
 Code of Civil Procedure [Relating to claims against Government agents and officials in 
 connection with their functions. — Editor] (Collection of Laws, Volume XVI, Chapter I, 
 edition of 1892). 
 
 " 11. — To put the above regulations into force at a time to be determined by the 
 Ministers of Justice and Finance. 
 
 " 12. — Not to publish the present ukaz for general information. 
 
 "On the original is the signature of His Imperial Majesty, in his own hand, 
 
 " Nikolai." 
 Note 5. 
 
 Agreements for the expropriation of lands required for railway purposes in the Man- 
 churian Provinces of Heilungkiang and Kirin were concluded on August 30, 1907 (Nos. 
 1907/13 and 1907/14, post). 
 
 An agreement concerning timber concessions in Kirin Province was signed on the same 
 date (No. 1907/15, post), and an agreement for similar concessions in Heilungkiang 
 Province on April 5, 1908 (No. 1908/6, post). 
 
 With the text of the railway contract, as given in Soglashenia, is printed (at p. 8) the 
 French text of a letter from the Chinese Minister to the representative of the bank, dated 
 September 8th, of which the body reads (in translation) as follows: 
 
 "In discussing §6 of the contract signed to-day, you have drawn my attention to the 
 question of coal. I have taken note of the observations you made to me in that regard, 
 and shall not fail to make a report to the Tsungli Yamen on that subject, emphasizing the 
 importance of granting the Company the most favorable terms for the working of such 
 coal mines as may be found in the neighborhood of the line of the (Chinese) Eastern Rail- 
 way." 
 
 See the Agreements for the mining of coal in the Provinces of Heilungkiang and Kirin, 
 August 30, 1907 (No. 1907/12, post). 
 
 Note 6. 
 
 In connection with Article 9, it is to be noted that under date of August 7, 1917, the 
 Russian Legation at Peking addressed to the Legations of other friendly nations there a 
 note verbale of which the translation is given herewith, requesting their assent to an exten- 
 sion of the passport control exercised by the Russian authorities within the zone of the 
 Chinese Eastern Railway, as a temporary measure necessitated by conditions arising out of 
 the war : 
 
 Temporary Agreement regarding Passport Control in Chinese Eastern Railway 
 
 Zone. — August, 1917. 
 
 "The special administrative system in force upon the territory of the Chinese Eastern 
 Railway, arising out of the fact that this Russian railway passes through Chinese territory, 
 renders very difficult the effective surveillance of the Russian frontier on the borders of 
 Manchuria. It is because of this that a great number of criminals, anarchists, and espe- 
 cially enemy spies, have succeeded in entering Russia by that route. 
 
 " A serious control over all persons, both Russian and foreign, proceeding into Russia 
 by way of Manchuria, could be rendered really effective only if it were possible to subject 
 foreigners — upon their arrival at the terminal stations of the railway mentioned above, as 
 well as during their sojourn at Harbin and other places upon the territory conceded to the 
 railway — to the passport regulations of which the observance is compulsory for their entry 
 and for their sojourn in Russia. 
 
 " It would, in particular, be necessary to require every foreigner proceeding into 
 North ^lanchuria— that is, in the case of those proceeding there by railway from the Kwang- 
 chengtze-Changchun station— to observe the following rules: 
 
 "1 — He should be furnished with a national passport, in good order; 
 
 "2 — His photograph should be attached to the passport; 
 
 "3 — The passport should be visaed by the competent Russian authority; and 
 
 "4 — The passport should embody an indication whether, as the case may be, the bearer 
 is by birth of the nationality that he acknowledges, or whether he acquired it by the 
 process of naturalization. 
 
 " Consent to the observance of these rules, on the part of their nationals, is hereby 
 requested of the Legations resident in Peking, 
 
 " It goes without saying that these rules, having no other object than that specified 
 above, will be obligatory only for the period of the war now in progress. They are in no 
 way designed to create vested rights based on precedents." 
 
 Acceptances of this proposal were communicated to the Russian Legation as follows : 
 In behalf of Italy, August 7, 1917; Netherlands, August 11, 1917; France, August 17, 1917; 
 Great Britain, August 17, 1917; Belgium, August 20, 1917; United States, August 30. 1917.
 
 NUMBER 1896/6: OCTOBER 19, 1896 91 
 
 Note 7. 
 
 To the text of the contract as printed in Wang is appended (at p. 11) a copy of a 
 letter addressed to the Chinese Minister by the representative of the bank, under date of 
 September 2, 1896, of the body of which the translation is as follows: 
 
 " I have the honor to avail myself of Your Excellency's permission to confirm to you 
 that the accounts of the railway to be constructed will be made up annually and will be 
 published officially. This report will present the status of the several accounts, the receipts 
 and expenses for operation and also for the service of debts, loans, etc. The eventual 
 repurchase would be effected on the basis of these balances as published annually. The 
 detailed conditions of repurchase will be provided for in the Company's charter (i.e., statuts 
 de la Societe)." 
 
 See the exchange of Notes between China and Japan concerning the extension of the 
 term of lease of the South Manchuria Railway, etc., May 25, 1915 (No. 1915/8, post). 
 
 NUMBER 1896/6. 
 
 JAPAN AND CHINA. 
 
 Protocol concerning Japanese settlements, inland navigation, taxes on manufac- 
 tures, etc.*— October 19, 1896. 
 
 Baron Hayashi Tadasu, Shoshii, Grand Cross of the Imperial Order of the 
 Sacred Treasure, Envoy Extraordinary and Minister Plenipotentiary for Japan; 
 and Ching, Jung, and Chang, the Ministers charged with Foreign Affairs of the 
 Empire of China; 
 
 have agreed upon and concluded the following four Articles : — 
 
 Art. 1. — It is agreed that Settlements to be possessed exclusively by Japan 
 shall be established at the towns and ports newly opened to trade. The man- 
 agement of roads and local police authority shall be vested solely in the Japanese 
 Consuls. 
 
 Art. 2. — Matters relating to steamboats and chartered or owned vessels 
 referred to in the provisional Regulations for the trade conducted by foreign 
 merchants between Soochow, Hang-chow and Shanghai, issued by the Shang- 
 hai Customs on the 3rd day of the 8th month of the 22nd year of Kuang Hsii f 
 shall be settled conjointly with Japan, and until such settlement is conjointly 
 arrived at the Yang-tsze Regulations shall be enforced so far as they are appli- 
 cable. 
 
 Art. 3. — The Japanese Government will consent to the imposition by the 
 Chinese Government of such tax as may be deemed expedient upon articles manu- 
 factured by Japanese subjects in China, but such tax shall not be different from, 
 or exceed, the amount payable by Chinese subjects. 
 
 Upon the request of the Japanese Government the Chinese Government 
 
 * Translation from the Chinese text as printed in Customs, Vol. II, p. 615. Other 
 translations printed in Rockhill, p. 39; For. Rel. of the U. S., 1907, p. 97; Hertslet, p. 382; 
 Recueil, p. 236. See Note to this document, post, p. 92. 
 
 t September 9, 1896.
 
 92 CHINA TREATIES AND AGREEMENTS 
 
 will promptly give their consent to the establishment of Settlements possessed 
 exclusively by Japan at Shanghai, Tientsin, Amoy and Hankow. 
 
 Art. 4. — Telegraphic instructions will be sent to the Governor of Shantung 
 to the effect that, in accordance with treaty stipulations, no Chinese troops 
 shall be permitted to approach or occupy any ground within a distance of 5 
 Japanese ri, that is, about 40 Chinese li, from the boundaries of the territory 
 occupied by the Japanese troops. 
 
 In witness whereof a Japanese and a Chinese version of the above have 
 been prepared, each in duplicate, and having been compared together have been 
 signed and sealed, each party retaining one copy of each version. 
 The 19th day of the 10th month of the 29th year of Meiji. 
 
 Hayashi Tadasu. 
 The 13th day of the 9th month of the 22nd year of Kuang Hsii. 
 
 Ching Hsin. 
 Jung Lu. 
 Chang Yin Huan. 
 
 Note. 
 
 In connection with this protocol see also the Sino-Japanese commercial treaties of July 
 21, 1896 (No. 1896/4, ante), and October 8, 1903 (No. 1903/4, post). 
 
 The followmg is the translation as printed in B. & F. State Papers, vol. 94, p. 1317, 
 of the agreement between the Japanese and Chinese Governments for the establishment of 
 a Japanese Settlement at Shashi, concluded August 18, 1898, and approved by the Japanese 
 Foreign Office on December 2, 1898: — 
 
 Agreement for Establishment of Japanese Settlement at Shashi. — August i8, 1898. 
 
 " Article 1. — Starting from the western boundary of the Government land, Kungchow, 
 foreign wharf, Shashi port, and followmg the south-east course of the Changkiang, the 
 land in a straight line for a distance of 3,800 shaku (3,777 99/100 feet), with a breadth of 
 800 shaku 795 36/100 feet) from the said western boundary of not more than 800 shaku 
 (795 36/100 feet), and for the remaining 3,000 shaku (2,982 63/100 feet) of 1,200 shaku 
 (1,193 5/100 feet) is fixed upon for a Settlement exclusively under Japanese control. (See 
 separate Plan.) 
 
 " If in future another foreign Settlement is established, it shall be marked out on a 
 situation below the Japanese Settlement. 
 
 " Article 2. — All roads, bridges, drains, wharves, and embankments, and the power of 
 police within the Settlement, shall be under the official control of the Japanese Consulate. 
 The Japanese Consulate may construct or repair such roads, bridges, and drains at any 
 time, and the Chinese authorities shall not be able to interfere in the matter. 
 
 " Article 3. — For the safety of the Settlement, and as a precaution against the entrance 
 of water, strong embankments shall be constructed. 
 
 " The expenses of construction, and the purchase price necessary for sites for the 
 building of embankments, shall be calculated by the delegates of the two countries (China 
 and Japan), after consultation, and China shall be responsible for half the amount. 
 
 "Article 4. — Sites within the Settlement shall be divided into three classes, and the 
 price of land per se (3 92/100 square poles), in each class is fixed as follows. (See separate 
 Table.) 
 
 " Sites leased during the period beginning with the day on which these Articles go 
 into operation, and ending with the close of the next Chinese year (Kwocho [Kuanghsij] 
 26th year), shall be per se (3 92/100 square poles), for first class lots 100 dollars, for 
 second class lots 80 dollars, for third class lots 50 dollars. 
 
 " On lots leased during the four years after Kwocho [Kuanghsii] 27th year (the 
 Chinese year after next) there shall be an increase per annum of 5 dollars. 
 
 " As regards sites leased after the expiration of the above period, the basis of value 
 shall be fixed at 120 dollars for first class, 100 dollars for second class, and 70 dollars for 
 third class sites, that is to say, the price in the fourth year mentioned in the preceding 
 clause, and they may at any time be disposed of at auction.
 
 NUMBER 1896/6: OCTOBER 19, 1896: NOTE 93 
 
 " For the lease of the above sites it shall not be necessary to pay to China any other 
 tax than 1,000 Chinese cash per se (3 92/100 square poles) annually as ground rent. 
 
 ■• The classification of sites shall be discussed and settled between the Japanese Con- 
 sulate and the Chinese local authorities. 
 
 ■' Article 5. — The price of sites provided for roads and drains within the Settlement 
 shall be fixed per se (3 92/100 square poles) at 20 dollars for first class, 16 dollars for 
 second class, and 10 dollars for third class sites, and the Japanese Consulate shall hand 
 the amount to the Chinese local authorities at the time of the commencement of the work. 
 
 ■' It shall not be necessary to pay to the Chinese Government any ground rent or other 
 taxes in respect of the above sites. 
 
 " Article 6. — A person wishing to lease in perpetuity a site within the Settlement 
 shall send in an application to the Japanese Consulate, mentioning clearly in writing the 
 site he requires. The Japanese Consulate shall, after making an examination of the site, 
 collect the fixed price according to the nature of the site, and hand it to the Chinese local 
 authorities. The Chinese local authorities shall prepare a title-deed in triplicate, and 
 transmit it to the Japanese Consulate; and the Japanese Consulate shall affix their seal to 
 it, give one copy to the lessee, return one to the Chinese local authorities, and keep one 
 in the Japanese Consulate. Should the lessee lose the title-deed by water, fire, robbery, or 
 other cause, he may apply for the issue of a fresh title-deed. As regards the form of the 
 title-deed, the Chinese local authorities and the Japanese Consulate shall consult and decide. 
 
 "Article 7.— After Kwocho [Kuanghsii] 31st year (six years hence), if any person 
 wishes to lease a site in perpetuity, the Japanese Consulate shall notify its disposal by 
 auction on a date from fifteen to twenty days from the date of application, and it shall be 
 so disposed of in the presence of the local authorities. The law regarding disposal of a 
 site by auction shall, however, be that it shall always be leased to the highest bidder. If it 
 happens that two or more persons bid the same price, it shall be put up again for auction. 
 When the lessee has been determined, he shall be required to pay at once one-fifth of 
 the price of the site as a deposit, and the remainder entirely within one month. The 
 procedure in remitting the price, and the method of issuing the title-deed shall be similar 
 to that provided for in the previous Article. 
 
 " Article 8. — The ground rent payable by the lessee shall be collected each year by 
 the Japanese Consulate, and handed over to the Chinese local authorities on the 15th day 
 of the 4th moon (Chinese calendar). The Chinese local authorities shall send a receipt 
 to the Japanese Consulate. Under extraordinary circumstances, the Consul shall, after the 
 matter has been settled, collect additional ground rent and hand it over. 
 
 " Article 9. — Chinese and foreigners are permitted to reside and carry on business 
 in the Settlement. But they have none of the rights of lease specified in these Articles. 
 
 " Article 10. — When the lessee desires to sell or transfer his right to the land leased, 
 both parties shall make application in a joint letter to the Japanese Consulate. When the 
 Japanese Consulate considers that there is no objection, the Chinese authorities shall be 
 communicated with, and they shall make out a new title-deed. 
 
 " Article 11. — The fees for removing buildings connected with graves in the Settlement 
 shall, at any time, be discussed and settled between the Japanese Consulate and the Chinese 
 local authorities. 
 
 " The Chinese authorities shall strictly prohibit the additional construction of buildings 
 connected with graves in future. 
 
 ■■ Article 12. — The Japanese Consulate may at any time make regulations and levy 
 dues from vessels stopping at the wharves, and apply the proceeds to the expenses of the 
 Settlement. 
 
 " Article 13. — When it is desired to repair the wharves within the Settlement, or erect 
 hulks, a spot shall be chosen which does not interfere with the passing to and fro of 
 merchant-vessels, after consultation between the Japanese Consulate and the Commissioner 
 of Customs. 
 
 "Article 14. — It shall not be permitted to construct within the Settlement buildings 
 thatched with straw or rushes, or inferior shingles, or to store, carry, or transport gun- 
 powder, explosives, or other goods dangerous to life and property. 
 
 " But when it is desired to make use of explosives under unavoidable circumstances, 
 an application shall be made to the Japanese Consulate stating the nature of the use to which 
 they are to be put, and permission obtained. 
 
 " Article 15. — The Chinese local authorities shall, in consultation with the Japanese 
 Consulate, establish a IMixed Court in the Settlement. The Rules (of the Court) shall 
 follow the Shanghai precedent. 
 
 " Article 16. — Should it be desired in future to choose a suitable lot and establish 
 specially a cemetery for Japanese, the Japanese Consulate and the Chinese local authorities 
 shall at any time agree on the matter. 
 
 "Article 17. — If any points superior to what are specified in these Articles are at 
 present permitted, or shall in future be permitted, to other foreigners, Japanese residents 
 also shall equally enjoy them all. 
 
 " These Articles shall be prepared in duplicate in Japanese and Chinese, and after
 
 94 CHINA TREATIES AND AGREEMENTS 
 
 being signed and sealed either Party shall keep one copy in witness thereof. It is agreed 
 that they shall take effect after the sanction of the Governments. 
 
 ■■ (L.S.) NOGATAKI HiSAKICHI, 
 
 "2nd Class Imperial Japanese Consul stationed at Shashi. 
 
 " (L.S.) YU TSANG YlNG. 
 
 "The separate Table and separate Plan are kept at the Foreign Office [Tokio]. 
 " August 18, 1898." 
 
 NUMBER 1897/1. 
 
 GREAT BRITAIN AND CHINA. 
 
 Agreement modifying the convention of March 1, 1894, relative to Burmah and 
 
 Tibet.* — February 4, 1897. 
 
 In consideration of the Government of Great Britain consenting to waive 
 its objections to the alienation by China, by the Convention with France of the 
 20th June, 1895, of territory forming a portion of Kiang Hung, in derogation of 
 the provisions of the Convention between Great Britain and China of the 1st 
 March, 1894, it has been agreed between the Governments of Great Britain and 
 China that the following additions and alterations shall be made in the last-named 
 Convention, hereinafter referred to as the original Convention : — 
 
 Article I. — Frontier line. — It is agreed that the frontier between the two 
 Empires from latitude 25 ° 35' north shall run as follows : 
 
 Commencing at the high peak situated approximately in that latitude and in 
 longitude 98° 14' east of Greenwich and 18° 16' west of Peking, the line shall 
 follow, as far as possible, the crest of the hills running in a south-westerly 
 direction to Warung Peak (Kaulyang), and shall extend thence to Sabu Pum. 
 
 From Sabu Pum the frontier shall run in a line along the watershed slightly 
 to the south of west through Shatrung Pum to Namienku Pum. 
 
 Thence it shall follow a line to be fixed after local investigation, dividing 
 the Szis and the Kumsas as far as the Tabak Kha ; thence the Tabak Kha to the 
 Namtabet ; thence the Namtabet to the Paknoi Kha ; thence the Paknoi Kha to 
 its source near Talang Pum ; thence the Talang Pum ridge to Bumra Shikong. 
 
 From Bumra Shikong the frontier shall follow a line running in a south- 
 west direction to the Laisa Kha ; thence the Laisa Kha to the Mole stream, run- 
 ning between Kadon and Laisa ; thence the Mole to its confluence with the 
 Cheyang Kha ; thence the Cheyang Kha to Alaw Pum ; thence the Nampaung 
 stream to the Taping. 
 
 * Text as printed in Rockhill, p. 40, from B. & F. State Papers, 1896-7, vol. 49, p. 25. 
 Printed also in Customs, Vol. I, p. 532; Hertslct, p. 113; Recueil, p. 241; British Treaty 
 Series, 1897. No. 7. 
 
 In connection with this agreement see the Convention of March 1. 1894 CNo. 1894/1, 
 ante), particularly Article 5 and the footnotes thereto; also the Franco-Chinese delimitation 
 convention of June 20, 1895 (No. 1895/4), and the Anglo-French declaration of January 
 15, 1896 (No. 1896/1, ante) ; also the Anglo-Chinese convention respecting Tibet, .April 27, 
 1906 (No. 1906/2, post).
 
 NUMBER 1897/1: FEBRUARY 4, 1897 95 
 
 THE TAPING TO THE SHWEtl RIVER. 
 
 II. — From the junction of the Taping and the Nampaung streams the 
 frontier shall follow the Taping to the neighbourhood of the Lwalaing ridge; 
 thence a line running approximately along the Lwalaing ridge and the Lwalaing 
 stream to the Namwan ; thence the Namwan to its junction with the Shweli. 
 
 Great Britain engages to recognize as belonging to China the tract to the 
 south of the Namwan River, near Namkhai, which is enclosed to the west by a 
 branch of the Nam Mak River and the Mawsiu range of hills up to Loi Chow 
 Peak, and thence by the range running in a north-easterly direction to the 
 Shweli River. 
 
 Jurisdiction. — In the whole of this area China shall not exercise any juris- 
 diction or authority whatever. The administration and control will be entirely 
 conducted by the British Government, who will hold it on a perpetual lease from 
 China, paying a rent for it, the amount of which shall be fixed hereafter. 
 
 THE SHWELI TO THE MEKONG. 
 
 III. — From the junction of the Namwan and Shweli the frontier shall 
 follow the northern boundary of the State of North Hsinwi, as at present con- 
 stituted, to the Salween, leaving to China the loop of the Shweli River, and almost 
 the whole of Wanting, Mong-ko, and Mong-ka. 
 
 Starting from the point where the Shweli turns northward near Namswan, 
 i. e. from its junction with the Namyang, the frontier shall ascend this latter 
 stream to its source in the Mong-ko Hills, in about latitude 24° 7' and longitude 
 98° 15', thence continue along a wooded spur to the Salween at its junction 
 with the Namoi stream. The line shall then ascend the Salween till it meets 
 the northwest boundary of Kokang, and shall continue along the eastern frontier 
 of Kokang till it meets the Kunlong circle, leaving the whole circle of Kunlong 
 to Great Britain. 
 
 The frontier shall then follow the course of the river forming the boundary 
 between Somu, which belongs to Great Britain, and Meng Ting, which belongs to 
 China. It shall still continue to follow the frontier between those two districts, 
 which is locally well-known, to where it leaves the aforesaid river and ascends 
 the hills, and shall then follow the line of water parting between the tributaries 
 of the Salween and the Mekong Rivers, from about longitude 99° east of 
 Greenwich (17° 30' west of Peking), and latitude 23° 20', to a point about 
 longitude 99° 40' east of Greenwich (16° 50' west of Peking) and latitude 
 23°, leaving to China the Tsawbwaships of Keng Ma, Mengtung, and Mengko. 
 
 At the last named point of longitude and latitude the line strikes a very 
 lofty mountain range, called Kong-Ming-Shan, which it shall follow in a southerly 
 direction to about longitude 99° 30' east of Greenwich (17° west of Peking), 
 and latitude 22° 30', leaving to China the district of Chen-pien T'ing. Then, 
 descending the western slope of the hills to the Namka River, it will follow the 
 course of that river for about 10 minutes of latitude, leaving Munglem to China 
 and Mangliin to Great Britain.
 
 96 CHINA TREATIES AND AGREEMENTS 
 
 The frontier shall then follow the boundary between Munglem and Kiang 
 Tong, which is locally well-known, diverging from the Namka River a little 
 to the north of latitude 22°, in a direction somewhat south of east, and gen- 
 erally following the crest of the hills till it strikes the Namlam River in about 
 latitude 21° 45' and longitude 100° east of Greenwich (16° 30' west of 
 Peking). 
 
 It shall then follow the boundary between Kiang Tong and Kiang Hung, 
 which is generally formed by the Namlam River, with the exception of a small 
 strip of territory belonging to Kiang Hung, which lies to the west of that river, 
 just south of the last-named parallel of latitude. On reaching the boundary of 
 Western Kyaing Chaing, in about latitude 21° 27' and longitude 100° 12' 
 east of Greenwich (16° 18' west of Peking), the frontier shall follow the 
 boundary between that district and Kiang Hung until it reaches the Mekong 
 River. 
 
 IV. — (No addition to original Convention.) 
 
 V. — It is agreed that China will not cede to any other nation either Mung 
 Lem or any part of Kiang Hung on the right bank of the Mekong, or any part 
 of Kiang Hung now in her possession on the left bank of that river, without 
 previously coming to an arrangement with Great Britain. 
 
 VI. — Article VI of the original Convention shall be held to be modified as 
 follows : 
 
 It is agreed that, in order to avoid any local contention, the alignments of 
 the frontier described in the present Agreement shall be verified and demarcated, 
 and, in the event of their being found defective at any point, rectified by a Joint 
 Commission appointed by the Governments of Great Britain and China, and that 
 the said Commission shall meet, at a place hereafter to be determined by the two 
 Governments, not later than twelve months from the date of the signature of 
 the present Agreement, and shall terminate its labours in not more than three 
 years from the date of its first meeting. 
 
 If a strict adherence to the line described would intersect any districts, 
 tribal territories, towns, or villages, the Boundary Commission shall be empow- 
 ered to modify the line on the basis of mutual concessions. If the members of 
 the Commission are unable to agree on any point, the matter of disagreement 
 shall at once be referred to their respective Governments. 
 
 VII. — (No addition to original Convention.) 
 
 VIII. — (No addition to original Convention.) 
 
 IX. — Trade routes to be opened. — Add as follows : — 
 
 In addition to the Manwyne and Sansi routes sanctioned by the Conven- 
 tion of 1894, the Governments of Great Britain and China agree that any other 
 routes, the opening of which the Boundary Commissioners may find to be in 
 the interests of trade, shall be sanctioned on the same terms as those mentioned 
 above. 
 
 X. — (No addition to original Convention.) 
 
 XI. — (No addition to original Convention.) 
 
 XII. — Add as follows: — 
 
 Railways in Yunnan. — The Chinese Government agrees hereafter to con-
 
 NUMBER 1897/1 : FEBRUARY 4, 1897 97 
 
 sider whether the conditions of trade justify the construction of railways in 
 Yiinnan, and, in the event of their construction, agrees to connect them with 
 the Burmese Hnes. 
 
 XIII. — British and Chinese consular officers. — Whereas by the original 
 Convention it was agreed that China might appoint a Consul in Burmah to 
 reside at Rangoon ; and that Great Britain might appoint a Consul to reside 
 at Manwyne ; and that the Consuls of the two Governments should each within 
 the territories of the other enjoy the same privileges and immunities as the Con- 
 suls of the most favoured nation, and, further, that, in proportion as the com- 
 merce between Burmah and China increased, additional Consuls might be 
 appointed by mutual consent to reside at such places in Burmah and Yiinnan as 
 the requirements of trade might seem to demand. 
 
 It has now been agreed that the Government of Great Britain may station 
 a consul at Momein or Shunning-fu, as the Government of Great Britain may 
 prefer, instead of at Manwyne, as stipulated in the original Convention, and also 
 to station a Consul at Ssumao. 
 
 Trading rights. — British subjects and persons under British protection may 
 establish themselves, and trade at these places, under the same conditions as at 
 the Treaty ports in China. 
 
 The Consuls appointed as above shall be on the same footing as regards 
 correspondence and intercourse with Chinese officials as the British Consuls at 
 the Treaty ports. 
 
 XIV. — Instead of " Her Britannic Majesty's Consul at Manwyne " in the 
 original Convention, read " Her Britannic Majesty's Consul at Shunning or 
 Momein," in accordance with the change made in Article XIII. 
 
 XV. — (No addition to original Convention.) 
 
 XVI. — (No addition to original Convention.) 
 
 XVII. — (No addition to original Convention.) 
 
 XVIII. — (No addition to original Convention.) 
 
 XIX.— Add as follows:— 
 
 Failing agreement as to the terms of revision, the present arrangements 
 shall remain in force. 
 
 Special Article. — Wuchou-fu in Kwangsi and Samshui City and Kong 
 Kun in Kwangtung opened to trade. — Whereas on the 20th day of January, 
 1896, the Tsung-li Yamen addressed an official despatch to Her Majesty's 
 Charge d'Affaires at Peking, informing him that on the 30th day of December, 
 1895, they had submitted a Memorial respecting the opening of ports on the West 
 River to foreign trade, and had received an Imperial Decree in approval, of 
 which they officially communicated a copy. 
 
 It has now been agreed that the following places, viz., Wuchow-fu, in 
 Kwangsi, and Samshui City and Kong Kun Market, in Kwangtung, shall be 
 opened as Treaty ports and Consular stations, with freedom of navigation for 
 steamers between Samshui and Wuchow and Hong Kong and Canton, by a route 
 from each of these latter places to be selected and notified in advance by the 
 Imperial Maritime Customs, and that the following four places shall be estab- 
 lished as ports of call for goods and passengers, under the same Regulations as
 
 98 CHINA TREATIES AND AGREEMENTS 
 
 the ports of call on the Yang-tzu River, namely, Kongmoon, Komchuk, Shiuhing 
 and Takhing. 
 
 It is agreed that the present Agreement, together with the Special Article, 
 shall come into force within four months of the date of signature, and that 
 the ratifications thereof shall be exchanged at Peking as soon as possible.^ 
 
 In witness whereof the Undersigned, duly authorized thereto by their re- 
 spective Governments, have signed the present Agreement. 
 
 Done at Peking in triplicate — three copies in English, three in Chinese — the 
 4th day of February, in the year of our Lord 1897. 
 
 [l. s.] Claude M. MacDonald. 
 
 [l. s.] (Chinese signature of his Excellency Li.) 
 
 NUMBER 1897/2. 
 
 FRANCE AND CHINA. 
 
 Declaration concerning the non-alienation of the Island of Hai-nan.'^ — March 15, 
 
 1897. 
 
 The Tsung-li Yamen to Mr. Gerard, Minister of the French Republic at 
 
 Peking. 
 
 13th Day, 2d Moon, 23d Year, Kuang-hsu. 
 
 (15 March, 1897.) 
 
 The 1st day of the 2d moon of the 23d year Kuang-hsii (March 3, 1897),. 
 we received a despatch in which you inform us that France, considering the 
 close friendly and neighborly relations maintained with China, attaches great 
 importance to the island of Hai-nan never being either alienated or ceded by 
 China to any other foreign Power, either as final or temporary cession, or as a 
 naval station or coaling depot. 
 
 Our Yamen considers Kiung-chou (the island of Hai-nan) as belonging to 
 the territory of China which consequently exercises over it right of sovereignty. 
 How could it cede it to foreign nations? Furthermore, it is nowise a fact at pres- 
 ent that it has lent it temporarily to foreign nations. As in duty bound we make 
 to Your Excellency this official communication. 
 
 (Here follow the signatures of the President and the Members of the Tsung- 
 li Yamen). 
 
 * Translation, as given in RockhiJl, p. 173, from the French version as printed in Doc. 
 Dip!., Chine, 1894-8, p. 33. Printed also (in French text) in Hcrtslct, p. 1148. 
 
 In connection with this declaration see also the Declarations to France concerning the 
 non-alienation of the territory bordering on Tongking, April 10, 1898 (Xo. 1898/6, post); 
 to Great Britain concerning the non-alienation of the Yang-tsze region, February 11, 1898 
 (No. 1898/1, post) ; to Japan concerning the non-alienation of Fukien, April 26, 1898 (No. 
 1898/8, post) ; also the Presidential Mandate concerning the non-alienation of the coasts of 
 China, May 13, 1915 (1915/7, post). 
 
 t Ratifications exchanged June 5, 1897.
 
 NUMBER 1897/3: MAY 13, 1897 99 
 
 NUMBER 1897/3. 
 
 DENMARK (Great Northern Telegraph Company) AND CHINA. 
 Telegraph convention* — May 13, 1897. 
 
 The Imperial Chinese Telegraph Administration, hereinafter called the Ad- 
 ministration, on the one part, and the Great Northern Telegraph Company of 
 Copenhagen, hereinafter called the Company, on the other part, being desirous 
 of facilitating international telegraphic communication, have decided to conclude 
 a Convention with a view to equalize the total charges by their respective routes 
 in Asia between China and Russia. 
 
 Consequently the following stipulations have been agreed on and under 
 date below given signed by the Administration represented by its Director- 
 General Sheng-hsuen-huai and by the Company represented by its General- 
 Manager in China Mr. J. Henningsen both duly furnished with full and special 
 powers for this purpose. 
 
 Article I. — 1. For telegrams exchanged terminally between the Empire 
 of China, on the one side, and the Empire of Russia, on the other side, the 
 charge over the present and future cables in Asia connecting China with Russia 
 in Asia and belonging to or connected with the Company, shall be the same_ 
 as the Administration's terminal charge by their land junctions with Russia 
 in Asia as fixed in the Telegraph Convention dated 13 (25) August 1892. 
 
 2. The stipulation under section 1 of this Article shall apply equally to 
 charges for telegrams exchanged terminally between the British Colony of 
 Hongkong on the one side and the Empire of Russia on the other side. 
 
 3. For the same telegrams as described under sections 1 and 2 of this 
 Article via other routes across the land frontiers of China the Administra- 
 tion undertakes, when concluding, renewing or revising telegraph Conventions, 
 to fix their proportion of the total charges in such manner that the total charges 
 collected for the said telegrams via such routes at the time of the concluding, 
 renewing or revising of such Convention shall in no case be lower than the 
 total charges collected for the same telegrams when exchanged by the normal 
 routes above described under sections 1 and 2 of this Article. 
 
 The Company on their side undertakes a corresponding obligation for the 
 same telegrams by future cables connecting China or Hongkong with Russia 
 in Asia. 
 
 4. With regard to telegrams specified under sections 1, 2 and 3 of this 
 Article transmitted by other routes present and future than those specified 
 under sections 1, 2 and 3 of this Article the Administration and the Company 
 reciprocally undertake to do all in their power to protect the joint interests 
 established by the present Convention. 
 
 Article II. — 1. The revenue of the Administration and of the Company of 
 all telegrams and by all routes coming under Article I of the present Conven- 
 * Text as printed in Rccueil, p. 252. See Note to this document, post, p. 103.
 
 100 CHINA TREATIES AND AGREEMENTS 
 
 tion shall be carried to a Joint Purse in the proportions fixed in the Table 
 stipulated in Article VII of the present Convention and this Joint Purse shall 
 be divided between the Contracting Parties in the following manner: One half 
 to the Administration; One half to the Company. 
 
 Each of the Contracting Parties shall bear its own working expenses. 
 
 2. Considering the division of revenue the Administration will only levy 
 terminal charge on telegrams by the Company's cable route specified in sec- 
 tion 1 of Article I of the present Convention if and to the extent necessary 
 to equalize the total rates by the routes of the Administration and of the 
 Company. 
 
 Such additional terminal charge shall belong to the Joint Purse and be 
 divided equally between the Administration and the Company. 
 
 Article III. — The Administration as well as the Company shall maintain 
 their sections of the routes mentioned in sections 1 and 2 of Article I of the 
 present Convention in good working order. 
 
 Article IV. — 1. The collection of the charges mentioned in sections I and 2 
 of Article I of the present Convention shall take place at the same rate of 
 exchange of the coin in which the charges are collected by the Administration 
 and by the Company at their stations in China and at Hongkong. 
 
 2. To this end the Administration and the Company shall annually at the 
 end of the European calendar year determine the average value of that coin 
 in francs, and this value shall serve as the rate of exchange for the collection 
 of charges and for settlement of accounts during the year following. 
 
 3. Should the Administration and the Company be unable to agree on the 
 average value of that coin in francs, the question shall be referred for settlement 
 to the manager of one of the foreign banks at Shanghai. 
 
 Article V. — 1. The Administration and the Company shall at all their con- 
 trolling stations keep correct abstracts of all telegrams specified in Article I of 
 the present Convention and furnish each other with official copies of the same. 
 
 2. A controller of the Administration at the Company's stations at Shang- 
 hai, Foo-chou, Amoy and Hongkong and a controller of the Company at the 
 Administration's controlling stations present and future shall have free ad- 
 mittance to the offices in order to check and control the correctness of the journals 
 abstracts and accounts as far as necessary for the purposes of the present 
 Convention. 
 
 3. The appointment of controllers is in each case subject to the approval 
 respectively of the Administration or of the Company to which they are accredited 
 v/hich shall also have the right to demand their recall if considered necessary. 
 
 4. All the said controllers of the Company at the Administration's con- 
 trolling stations if living on Chinese territory shall have their names placed 
 on the register of their respective nationalities. Each of them shall respect the 
 laws of China and conform with the Treaties made by the respective countries 
 with the Government of China. But the Administration cannot undertake 
 any responsibility for their personal safety. 
 
 5. They shall respect the authority of the local Manager. Their salaries 
 as well as all other expenses are to be paid by their Employers.
 
 NUMBER 1897/3: MAY 13, 1897 101 
 
 Article VI. — 1. The settlement of accounts for all telegrams exchanged 
 between the Administration and the Company coming under the present Con- 
 vention as well as the division of revenue stipulated in Article II of the present 
 Convention shall be established monthly at Shang-hai and paid at Shang-hai 
 within six weeks after the end of the month in account. 
 
 2. To this end the results of the abstracts of the controlling stations 
 signed by the controllers of the two contracting parties stipulated for in Article V 
 of the present Convention or by the representative of the Administration at 
 the controlling stations, where no controller of the Company be actually present 
 shall be telegraphed to Shang-hai to be entered in the accounts settled there 
 subject to subsequent revision after receipt in Shang-hai of the said signed 
 abstracts and copies of the telegrams abstracted. 
 
 3. The month shall be reckoned according to the European calendar. 
 
 4. Telegrams referring to the settlement and payment of accounts shall be 
 considered as service telegrams and transmitted free of charge. 
 
 Article VII. — 1. To the present Convention is annexed a table signed by 
 the contracting parties and showing the charges which shall be applied by the 
 Administration and by the Company to telegrams described in section 1 and 2 
 of Article I of the present Convention as soon as it comes into force and also 
 the rate of exchange at which the collection of charges and the settlement of 
 accounts shall take place as well as the amount of contribution to the Joint Purse. 
 
 2. This Table will be subject to revision by the contracting parties periodi- 
 cally and in accordance with the stipulations of the present Convention. 
 
 Article VIII. — The rules laid down in the service regulations of the Inter- 
 national Telegraph Convention shall be observed with regard to the technical 
 treatment of telegrams exchanged between the Administration and the Com- 
 pany and both contracting parties undertake to do all in their power to prevent 
 retransmission and other circumventions of the rules to the detriment of either 
 party. 
 
 Article IX. — 1. Chinese Government telegrams exchanged between China 
 or Hongkong on the one side and Russia on the other side are treated in an 
 exceptional manner that is to say : 
 
 They pass at half of the ordinary charge over the cables in Asia of the 
 Company and whichever be the route followed contribute nothing to the Joint 
 Purse and are not included in the division described in Article II of the present 
 Convention. 
 
 Article X. — 1. The present Convention cannot be mortgaged, sold or other- 
 wise transferred either wholly or partly, neither can any creditor or others 
 acquire it wholly or partly in case of liquidation compulsory or otherwise. 
 
 2, Any difference arising between the contracting parties touching the con- 
 structions of the present Convention shall be referred for decision to the Gov- 
 ernments or their Legations at Peking which have ratified it. 
 
 Article XI. — 1. The present Convention shall be confirmed by Tsung-li- 
 yamen and by the Ministers at Peking for Russia and Denmark. 
 
 2. It shall be put into execution from the first day of the month following 
 the date of its confirmation.
 
 102 CHINA TREATIES AND AGREEMENTS 
 
 3. It shall remain in force until the 31 December 1910 and shall thereafter 
 continue in force until six months after one of the contracting parties shall have 
 given notice of its intention to modify or to abrogate it. 
 
 In witness whereof the undersigned duly authorized to this effect have 
 signed the present Convention. 
 
 Done in Shang-hai in the Chinese language and in the English language. 
 Three expeditions duly compared and found to be in agreement have been 
 signed in each of these languages on the thirteenth day of the month of May 
 1897 corresponding with the twelfth day of the fourth moon of the twenty third 
 year of the reign of Kuang-siu. 
 
 For the Imperial Chinese Telegraph Administration — 
 
 (L. S.) The Director General Sheng. 
 
 For the Great Northern Telegraph Company of Copenhagen — 
 
 The Manager in China Henningsen, 
 
 Vn et approiive: 
 
 Le Charge d' Affaires de Russie et de Danemark 
 (L. S.) (Signe) : A. Pavlow. 
 (L. S. du Tsung-li-yamen). 
 
 Table drawti up in execution of the stipulation in Article VII of the Convention 
 
 dated the thirteenth May 1897. 
 
 Charges to be collected per single word of all telegrams. The terminal 
 charge of the Administration and the cable charge mentioned in sections 1 and 
 2 of Article I of the Convention : 2 francs. 
 
 Contribution to the Joint Purse (stipulated in Article II of the Convention) 
 per single word of ordinary telegrams by routes described in sections 1 and 2 
 of Article I of the Convention under which also come the cables of Eastern 
 Extension Australasia and China Telegraph Company Limited, as being connected 
 with the Company. 
 
 Telegrams exchanged terminally with Hongkong, Amoy, Foochou : 1 franc 
 60 centimes. 
 
 Telegrams exchanged terminally with all other places in China : 2 francs. 
 
 By routes described in sections 3 and 4 of Article I of the Convention : 
 
 The total of the revenue accruing to the Administration or to the Company 
 excepting the revenue accruing to their lines in Europe. 
 
 Rate of exchange. 
 
 Articles IV and VI of the Conventions until 1 July 1897. 
 
 8 francs 50 centimes equal to 2 Mexican dollars 75 cents. 
 
 In witness whereof the undersigned duly authorized to this effect have 
 signed the present table. 
 
 Done in Shang-hai in the Chinese language and in the English language. 
 Three expeditions duly compared and found to be in agreement have been signed 
 in each of these languages on the thirteenth day of the month of May 1897
 
 NUMBER 1897/3: MAY 13, 1897: NOTE 103 
 
 corresponding with the twelfth day of the fourth moon of the twenty third year 
 of the reign of Kwang-hsu. 
 
 For the Imperial Chinese Telegraph Administration — 
 
 (L. S.) : The Director General (signed) Sheng. 
 For the Great Northern Telegraph Company of Copenhagen — 
 
 The Manager in China (signed) Hexningsen. 
 Vu et approiivc 
 
 Le Charge d'AfTaires de Russie et de Danemark. 
 (L. S.) (signe) : A. Pavlow. 
 
 (L. S. du Tsung-H-yamen.) 
 
 Note. 
 
 An additional article to this agreement was signed on March 6, 1899, in the following 
 terms (as given in Rccueil, p. 355) : 
 
 Additional Article to Telegraph Convention of 1897. — March 6, 1899. 
 
 " In connection with the Agreement entered into on the 13-th of May 1897 between the 
 Imperial Chinese Telegraph Administration on the one part and the Great Northern Tele- 
 graph Company of Copenhagen on the other part the following ' Additional Article' has been 
 agreed upon and under date given signed by the Administration represented by their 
 Director General Sheng and by the Company represented by their Manager in China Mr. 
 J. Henningsen both duly furnished with full and special powers for this purpose, and now 
 witness : that in the interest of both parties to the Agreement dated the 13-th of May 
 1897, and for the same term of years that is till the 31-st December 1910 no other party will 
 be allowed without the consent of both the said parties to land telegraph cables on the coast 
 of China and islands belonging thereto or to work such cables in connection with the 
 Chinese lines or otherwise to establish telegraph connection which might create com- 
 petition with or injure the interests of the existing lines belonging to China or to the 
 Great Northern Telegraph Company of Copenhagen. This shall however not prevent the 
 Chinese Government from establishing local internal cables where no competition can arise 
 nor from consenting to the junction by cable of Port Arthur with the Russian telegraph 
 system for the exchange of limitrophe local traffic neither shall it prevent the transmission 
 of terminal Formosa traffic over the Foochow-Formosa cable now belonging to Japan whilst 
 other traffic must not be exchanged by this line except with the consent of China and of 
 the Great Northern Telegraph Company of Copenhagen. 
 
 " The present additional Article shall be confirmed by the Tsung-li-yamen and by the 
 Minister at Peking for Russia and Denmark. 
 
 " In witness whereof the undersigned duly authorized to this effect have signed the pres- 
 ent additional Article. 
 
 " Done in Shang-hai in the Chinese language and in the English language. Three ex- 
 peditions duly compared and found to be in agreement have been signed in each of three 
 languages on the sixth day of the month of March eighteen hundred and ninety nine cor- 
 responding with the twenty-fifth day of the first moon of the twenty-fifth year of Kuang- 
 hsii. 
 
 "(l. s.) For the Imperial Chinese Telegraph Administration — the Director General: 
 " (Signature) : Sheng. 
 
 " (l. s.) For the Great Northern Telegraph Company of Copenhagen— the Manager in 
 China, 
 
 " (Signature) : J. Henningsen. 
 
 " (l. s.) Vu et approuvc: le Ministre de Russie et de Danemark. 
 " (Signe) : Michel de Giers." 
 
 In connection with this convention see also the convention between the Chinese Tele- 
 graph Administration and the Great Northern and Eastern Extension Companies, July 11, 
 1896 (No. 1896/3, ante).
 
 104 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1898/1. 
 
 GREAT BRITAIN AND CHINA. 
 
 Declaration concerning the non-alienation of the Yang-tsze region* — February 
 
 11, 1898. 
 
 Sir C. MacDonald to the Tsung-li Yamen. 
 
 Peking, February 9, 1898. 
 
 MM. LES MiNISTRES, 
 
 Your Highnesses and your Excellencies have more than once intimated to me 
 that the Chinese Government were aware of the great importance that has 
 always been attached by Great Britain to the retention in Chinese possession of 
 the Yang-tsze region, now entirely hers, as providing security for the free course 
 and development of trade. 
 
 I shall be glad to be in a position to communicate to Her Majesty's Govern- 
 ment a definite assurance that China will never alienate any territory in the 
 provinces adjoining the Yang-tsze to any other Power, whether under lease, 
 mortgage, or any other designation. Such an assurance is in full harmony 
 with the observations made to me by Your Highnesses and Your Excellencies. 
 
 I avail, &c. 
 
 (Signed) Claude M. MacDonald. 
 
 The Tsung-li Yamen to Sir C. MacDonald. 
 Kuang-hsii, 24th year, 1st moon, 21st day. (February 11, 1898.) 
 
 The Yamen have the honour to acknowledge the receipt of the British 
 Minister's despatch of the 9th February, stating that the Yamen had more than 
 once intimated to him that the Chinese Government were aware of the great 
 importance that has always been attached by Great Britain to the retention in 
 Chinese possession of the Yang-tsze region, now entirely hers, as providing 
 security for the free course and development of trade. The British Minister 
 would be glad to be in a position to communicate to Her Majesty's Government 
 a definite assurance that China would never alienate (any territory) in the 
 provinces adjoining the Yang-tsze to any other Power, whether under lease, 
 mortgage, or any other designation. 
 
 * Translation and text as reprinted in Rockhill, p. 174, from China, 1898, No. 2. 
 Printed also in Hertslet, p. 119; Kent, p. 299; Recucil, p. 297. 
 
 In connection with this declaration see other non-alienation declarations noted under 
 that concerning Hai-nan, March 15, 1897 (No. 1897/2, ante). See also the arrangement 
 between the Hongkong and Shanghai Banking Corporation and the British and Chinese 
 Corporation, and a German syndicate, concerning spheres of interest in respect to railway 
 construction, signed September 2, 1898. printed as an annex to the Anglo-German agree- 
 ment of October 16, 1900 (No. 1900/5, post).
 
 NUMBER 1898/2: FEBRUARY 13, 1898 105 
 
 The Yamen have to observe that the Yang-tsze region is of the greatest 
 importance as concerning the whole position (or interests) of China, and it is 
 out of the question that territory (in it) should be mortgaged, leased, or ceded 
 to another Power. Since Her Britannic Majesty's Government has expressed 
 its interest (or anxiety) it is the duty of the Yamen to address this note to the 
 British Minister for communication to his Government. 
 
 They avail themselves, &c. 
 
 NUMBER 1898/2. 
 
 GREAT BRITAIN AND CHINA. 
 
 Declaration that the Iiispector-General of Maritime Customs shall be a British 
 subject while British trade predominates* — February 13, 1898. 
 
 The Tsung-li Yamen to Sir C. MacDonald. 
 Kuang-hsii, 24th year, 1st moon, 20th day. (February 10, 1898.) 
 
 The Yamen have the honour to acknowledge the receipt on the 3rd February 
 of a note from the British Minister, to the effect that on the 17th January, when 
 calling at the Yamen, he had informed the Ministers present that he had re- 
 ceived telegraphic instructions from Her Majesty's Government that in view 
 of the immense preponderance of British trade with China over that of other 
 countries, Her Majesty's Government regarded it as vital to the commercial 
 interests of Great Britain that the Inspector-General of Maritime Customs should 
 in the future, as in the past, be of British nationality. The Yamen had agreed 
 to this, and in order that there might be no room for misunderstanding, the 
 Minister now addressed this note to the Yamen to place the matter formally 
 on record. 
 
 The Yamen have to observe that ever since the opening of Chinese ports 
 to foreign trade, commerce and revenue have been steadily increasing. The 
 duties paid by British merchants are nearly 80 per cent, of the whole amount 
 paid by foreign countries, and, therefore, a British subject (Sir Robert Hart) has 
 been employed as Inspector-General of Maritime Customs. 
 
 The said Inspector-General is versed in commercial matters, just in his 
 dealings, experienced and upright, faithful and sincere, a man on whom reliance 
 can be placed, and China has in the past leant much upon him. If he were 
 to ask for leave China must (try to) detain him, but if some cause were to 
 necessitate his returning home, China, thoroughly investigating the trade at 
 the various ports, (and finding that) British merchants are in the majority, will 
 
 *Text and translation as reprinted in Rockhill, p. \76, from Cliiiia, 1899, No. 1, p. 18. 
 Printed also in Hertslct, 1151. See Note to this document, post, p. 106.
 
 106 CHINA TREATIES AND AGREEMENTS 
 
 certainly direct the said Inspector-General to recommend an Englishman of 
 equal ability with himself to take charge, and the Yamen will, after inquiry, 
 appoint him as successor to manage Chinese Customs matters. The object be- 
 ing the protection of commerce at the various ports, (the Yamen) could not 
 possibly regard this selection as a light matter, and so do injury to important 
 public interests. 
 
 The Yamen beg to make this reply to the British Minister for his in- 
 formation. 
 
 They avail themselves, &c. 
 
 (Seal of Yamen.) 
 
 The Tsung-li Yamen to Sir C. MacDonald. 
 Kuang-hsii, 24th year, 1st moon, 23rd day. (February 13, 1898.) 
 
 The Yamen have the honour to address the British Minister with regard 
 to the continued employment in the future of an Englishman in succession to 
 the Inspector-General of Maritime Customs, on which subject they addressed 
 a reply to his Excellency a few days ago. 
 
 They have to observe that British trade with China exceeds that of all other 
 countries, and, as the Yamen have frequently agreed and promised, it is 
 intended that as in the past, so in the future, an Englishman shall be employed 
 as Inspector-General. 
 
 But if at some future time the trade of some other country at the various 
 Chinese ports should become greater than that of Great Britain, China will then 
 of course not be bound to necessarily employ an Englishman as Inspector- 
 General. 
 
 The Yamen write this further despatch for the information of the British 
 Minister, to be placed on record. 
 
 They avail themselves, &c. 
 
 (Seal of Yamen.) 
 
 Note. 
 
 In connection with this declaration see also China, 1906, No. 1, in which are given the 
 following translations of an imperial edict of May 9, 1906, and of a note under date of June 
 1. 1906, from the president of the Wai-wu Pu (Prince Ch'ing) to the British charge 
 d'afifaires, in reference thereto : — 
 
 Imperial Edict of May 9, 1906: "Tieh Liang, President of the Board of Revenue, is 
 appointed Imperial High Commissioner of Customs, and T'ang Shao-yi is appointed Im- 
 perial Vice-Commissioner of the same. All Chinese and foreign employees of the said 
 Customs are to be under the control and direction of the above-named High Commissioners." 
 (See circulars of the Inspector-General of Customs of September 22, 1906, No. 1369, Second 
 Series, and October 30, 1906. No. 1381, Second Series.) 
 
 Note of Prince Ch'ing to the British charge d'affaires, June 1st, 1906: "Sir: T had 
 the honor to inform you in a note of the 27th May that the special appointment by China 
 of High Commissioners for the exclusive control (or management) of the Maritime 
 Customs made no change in the mode of administration laid down in the Loan Agreements.
 
 NUMBER 1898/3: MARCH 1, 1898 107 
 
 At an interview at the Wai-wu Pu on the 28th May you intimated that the terms of this 
 note were not sufficiently explicit as to China's intentions, and requested a further 
 statement in the matter. 
 
 ■' In the 7th Article of the Loan Agreement of 1896 and in the 6th Article of the 
 Loan Agreement of 1898 it is stipulated 'that the administration of the Chinese Imperial 
 Maritime Customs shall remain as at present constituted during the currency of this 
 loan,' and I have the honor to state that the Imperial Decree of the 9th May specially 
 appointing High Commissioners to control (or manage j revenue affairs does not make 
 any change in the method of Administration laid down in the Loan Agreements. 
 
 " While communicating the above to you, for the information of His Majesty's Govern- 
 ment, I avail, etc." 
 
 The references in the second paragraph of the above note are to the loan agree- 
 ments concluded with the Hongkong and Shanghai Banking Corporation and the Deutsch- 
 Asiatische Bank, March 23, 1896 (No. 1896/2, ante) and March 1, 1898 (No. 1898/3, post). 
 
 NUMBER 1898/3. 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT BRITIAN (Hongkong and 
 Shanghai Banking Corporation) AND CHINA. 
 
 Agreement for the Chinese Imperial Government 4y2% Gold Loan of 
 1898*— March 1, 1898. 
 
 This Agreement is made between the Tsungli Yamen Peking acting on 
 behalf of the Imperial Government of China of the one part and the Hongkong' 
 and Shanghai Banking Corporation and the Deutsch Asiatische Bank, hereinafter 
 called "the Banks" of the other part. 
 
 Whereas a simple Memorandum of Agreement for an Imperial Chinese Gov- 
 ernment four and a half percent Gold Loan of Sixteen Million pounds sterling 
 was executed between the Imperial Government of China and the Hongkong 
 and Shanghai Banking Corporation on the nineteenth day of February last ; 
 and Whereas on the twenty-fifth day of February last telegraphic advice was 
 received from the Banks in Europe that they are prepared to issue the loan on the 
 conditions specified in that Memorandum of Agreement : 
 
 It is now agreed as follows. 
 
 1. — The Imperial Government of China hereby authorizes the Banks to 
 issue an Imperial Chinese four and a half percent Gold Loan for the amount of 
 Sixteen Million pounds sterling. The Loan shall be dated the first day of 
 March One thousand eight hundred and ninety eight. 
 
 2.— The rate of interest for the loan shall be four and a half per cent per 
 annum on the nominal principal, that is shall be seven hundred and twenty thou- 
 sand pounds Sterling per annum: the interest on the loan shall be calculated 
 from the first day of March One thousand eight hundred and ninety eight, 
 and shall be paid by the Chinese Imperial Government to the Banks in monthly 
 
 * In connection with this agreement see also the Agreement for the Chinese Imperial 
 Government 5% sterling loan of 1896, signed March 23, 1896 (No. 1896/2, ante).
 
 108 CHINA TREATIES AND AGREEMENTS 
 
 instalments in accordance with the amounts and dates of the Schedule attached 
 to this Agreement. 
 
 3. — The term of the loan shall be forty-five years and repayments of prin- 
 cipal shall be made by yearly sinking fund of One hundred and fifteen thousand 
 two hundred and thirty-two pounds sterling which shall be paid by the Chinese 
 Imperial Government to the Banks in monthly instalments in accordance with 
 the amounts and dates of the schedule attached to this agreement. During the 
 said term of forty-five years the amortization shall not be increased nor the 
 loan redeemed nor converted by the Chinese Imperial Government. 
 
 4. — The total monthly payment due for amortization and interest, and 
 amounting to sixty nine thousand six hundred and two pounds thirteen shillings 
 and four pence sterling shall be made in equal shares and in accordance with the 
 amounts and dates of the schedule attached to this Agreement, to the Hongkong 
 and Shanghai Banking Corporation and the Deutsch-Asiatische Bank by the 
 Chinese Imperial Government, who shall hand to those Banks at their Branches 
 in Shanghai on the dates named in the schedule funds in Shanghai sycee 
 sufficient to meet each such payment in sterling in Europe, the rate of exchange 
 for which shall be settled with those two Banks on the same day. The Banks 
 retain the right to rearrange the service of interest and repayments of principal 
 to the Bondholders on such terms as they deem advisable. 
 
 In reimbursement of expenses incurred in connection with the distribution 
 of the service to Bondholders of the principal and interest of the loan, the 
 Banks shall receive from the Chinese Imperial Government a commission of 
 a quarter percent on the annual loan Service, say an amount of two thousand 
 and eighty eight pounds one shilling and eight pence sterling per annum, ro 
 be paid to the Banks on the dates provided in the schedule attached to this 
 Agreem.ent. 
 
 5. — The Banks shall issue, and are hereby authorized to issue to subscribers 
 to the loan. Bonds for the total amount of the loan in pounds sterling, in such 
 form, in such languages and for such amounts as shall appear advisable to 
 the Banks ; and these Bonds shall be sealed by the Minister for China in Lon- 
 don or Berlin as evidence that the Chinese Imperial Government is bound 
 thereby. 
 
 In the event of Bonds issued for this loan being lost, stolen or destroyed, 
 the Banks shall immediately notify the Chinese Minister in London or Berlin 
 thereof, who shall authorize the Banks to insert an advertisement in the public 
 newspapers notifying that payment of the same has been stopped and to take 
 such other steps as required by the laws of the country: should such Bonds 
 not be recovered after the lapse of time provided by the law the Chinese 
 Minister in London or Berlin shall, without further authority from the Chinese 
 Imperial Government, seal and execute duplicate Bonds for a like amount and 
 hand them to the Banks, by whom all expenses in connection therewith shall 
 be defrayed. 
 
 6. — This entire loan of Sixteen Million pounds sterling shall be secured as 
 follows : 
 
 (1) By a charge on the revenues of the Imperial Maritime Customs of
 
 NUMBER 1898/3: MARCH 1, 1898 109 
 
 China, subject to previous loans already charged on the security thereof and 
 not yet redeemed. 
 
 (2) By a first charge, free from all encumbrances, upon the following 
 revenues to be forthwith placed under the control of the Inspector General of 
 Maritime Customs : 
 
 General Lekin of Soochow, estimated at Tls. 800,000 
 
 General Lekin of Sung Hu, estimated at 1,200,000 
 
 General Lekin of Kiukiang, estimated at 200,000 
 
 General Lekin of Eastern Chekiang, estimated at 1,000,000 
 
 Salt Lekin of Ichang, estimated at 1,000,000 
 
 Salt Lekin of Hupeh, estimated at 500,000 
 
 Salt Lekin of Anhui, estimated at 300,000 
 
 Total five million taels. Tls. 5,000,000 
 
 This entire loan of Sixteen million pounds Sterling shall have priority, both 
 as regards principal and interest, over all future loans, charges or mortgages, 
 so long as this loan or any part thereof shall be unredeemed. No loan, charge or 
 mortgage shall be raised or created which shall take precedence of or be on 
 an equality with this loan, or which shall in any manner lessen or impair its 
 security over the said Customs and lekin revenues, so far as required for the 
 Annual Service of this loan, and any future loan, charge or mortgage charged 
 on the said Customs or lekin revenue shall be made subject to this loan, and it 
 shall be so expressed in every Agreement for any such future loan, charge or 
 mortgage. 
 
 The Chinese Imperial Government undertake that the administration of 
 the Chinese Imperial Maritime Customs service shall remain as at present con- 
 stituted during the currency of this loan. 
 
 In the event of the Customs and lekin revenues specified and pledged by 
 this clause being at any future time insufficient for the service of principal and 
 interest of this loan, either owing to depreciation of Silver, diminution of revenue 
 or any other cause the Chinese Imperial Government hereby engages to appro- 
 priate, and forthwith place under the control of the Inspector General of 
 Maritime Customs, further revenues sufficient to complete the amount required. 
 
 In the event of the Chinese Government, during the currency of this loan, 
 entering upon negotiations for a revision of Customs tariff accompanied by 
 stipulations for decrease or abolition of lekin, it is hereby agreed, on the one 
 hand, that such revision shall not be barred by the fact that this loan is 
 secured by lekin and, on the other hand, that whatever lekin is pledged for the 
 service of this loan shall neither be decreased nor abolished except by arrange- 
 ment with the Banks and then only in so far as an equivalent is substituted for 
 it in the shape of a first charge upon the increase of Customs revenue conse- 
 quent on such revision. 
 
 7. — This loan shall be further secured by Customs/lekin Annual Bonds for 
 the total amount in sterling of the loan, principal and interest, issued and sealed 
 by the Tsungli Yamen and the Board of Revenue Peking, and countersigned
 
 110 CHINA TREATIES AND AGREEMENTS 
 
 by the Inspector General of Maritime Customs, and all such Customs/lekin 
 Annual Bonds shall contain the Clause No. 6 of this Agreement from its com- 
 mencement as far as the words : " for any such future loan charge or mortgage ". 
 These Customs/lekin Annual Bonds shall be handed in equal shares to the 
 Hongkong and Shanghai Banking Corporation and the Deutsch-Asiatische Bank 
 before payment to the Chinese Imperial Government of the proceeds of the 
 loan. 
 
 8. — This loan shall also be further secured by deposit with the Hongkong 
 and Shanghai Banking Corporation and Deutsch-Asiatische Bank of sterling 
 Customs/lekin monthly Bonds equal in value altogether to the total amount of 
 the loan, principal and interest, sealed by the Chinese Superintendent of Customs 
 at Shanghai and by the Viceroy of the Liang-kiang Provinces, and countersigned 
 by the Foreign Commissioner of Customs at Shanghai. These Customs/lekin 
 monthly Bonds shall be handed to the Hongkong and Shanghai Banking 
 Corporation and Deutsch-Asiatische Bank at their Branches at Shanghai 
 in equal shares on or before the first day of June next and, in the event of the 
 money to meet a payment of interest and/or sinking fund not being handed 
 to the Hongkong and Shanghai Banking Corporation and Deutsch-Asiatische 
 Bank at their Branches at Shanghai on due date shall be available everywhere in 
 China for payment of Imperial Maritime Customs duties and/or lekin dues or 
 in such other manner as stated in the Bonds and the Provincial Authorities shall 
 be instructed by Imperial Edict accordingly. 
 
 9. — The Chinese Imperial Government hereby undertakes to pay the entire 
 balance of the Indemnity due on the eighth day of May next to the Imperial 
 Japanese Government out of the proceeds of this loan. No further loan shall 
 be issued by the Chinese Imperial Government except through the Banks, until 
 a period of twelve months has elapsed after the issue of the total amount of this 
 loan. 
 
 10. — All Bonds and coupons and payments made and received in connection 
 with the service of this loan shall be exempt from Chinese taxes and imposts 
 forever. 
 
 11. — All details necessary for the Prospectus and connected with the service 
 to the Bondholders of the interest and repayments of the principal of this 
 loan, not herein explicitly provided for, shall be left to the arrangement of the 
 Banks, who shall issue, and are hereby authorized to issue a Prospectus of 
 the loan as soon as possible after the signing of this Agreement. The Chinese 
 Imperial Government will instruct the Chinese Ministers in London and Berlin 
 in communication with the Commissioner of Chinese Customs in London to co- 
 operate with the Banks in any matters requiring conjoint action, and the Chinese 
 Minister in Berlin shall sign the Prospectus of the loan as required by the rules 
 of the Berlin stock-exchange. 
 
 12. — The Banks hereby take the loan firm at the price of eighty three 
 percent net on the nominal principal to the Chinese Imperial Government, and 
 will hold the net proceeds, namely thirteen million two hundred and eighty 
 thousand pounds sterling to the order of the Chinese Imperial Government in 
 London and/or Berlin as follows:
 
 NUMBER 1898/3: MARCH 1, 1898 HI 
 
 On the sixth day of May, one thousand eight hundred and 
 
 ninety eight £12,000,000 
 
 On the sixth day of June, one thousand eight hundred and 
 
 ninety eight 1,280,000 
 
 Total thirteen milHon two hundred and eighty thousand 
 
 pounds sterling £13,280,000 
 
 13. — In the event of any extraordinary political or financial crisis taking 
 place in Europe or elsewhere by which the markets are so violently affected as 
 to render the successful floating of this loan impossible on the terms herein 
 named the Banks have the right to withdraw from this contract with the Chinese 
 Imperial Government, and it shall in that case become null and void. 
 
 14. — Immediately on the signature of this Agreement, and before the Pros- 
 pectus of the Loan shall be issued to the public the Tsungli Yamen shall 
 memorialize the Throne and obtain an Imperial Edict confirming and sanctioning 
 the provisions of this Agreement, and shall then instruct the Inspector General 
 of Maritime Customs to assume control forthwith over the revenues therein 
 indicated; the Imperial Edict so received shall be communicated officially, and 
 without delay, by the Tsungli Yamen to the Ministers for Great Britain and 
 Germany in Peking. 
 
 15. — The Hongkong and Shanghai Banking Corporation and the Deutsch- 
 Asiatische Bank shall take the loan in equal shares and without responsibility 
 for each other. 
 
 16. — Quadruplicate sets of this Agreement are executed in English and 
 Chinese, one set to be retained by each contracting party and one set by the 
 Inspector General of Maritime Customs. In the event of any doubt arising re- 
 garding the interpretation of this contract the English text shall be accepted 
 as the standard. 
 
 Signed at Peking by the contracting parties this ninth day of the second 
 month of the twenty fourth year of the Emperor Kuang-hsii being the first day of 
 March one thousand eight hundred and ninety eight, Western Calendar. 
 
 For the Hongkong and Shanghai Banking Corporation, 
 
 (Sgd.) E. G. HiLLiER, Agent 
 
 For the Deutsch-Asiatische Bank, 
 
 (Sgd.) Rump. 
 
 Schedule of Interest and Sinking-fund Payments 
 
 Date 
 
 1898 Interest 
 
 July 5th £120,000 
 
 July 20th 120.000 
 
 August 5th 120.000 
 
 Sinking-fund 
 £19,205/6/8 
 19,205/6/8 
 19,205/6/8 
 
 Total 
 £139,205/6/8 
 139,205/6/8 
 139,205/6/8 
 
 £417,616/-/-
 
 112 CHINA TREATIES AND AGREEMENTS 
 
 September 5th i 60,CX)0 
 
 October 5th 60,000 
 
 November 5th 60,000 
 
 December 5th 60,000 
 
 £ 9602/13/4 
 
 9602/13/4 
 9602/13/4 
 9602/13/4 
 
 £69,602/13/4 
 69,602/13/4 
 69,602/13/4 
 69,602/13/4 
 
 and the same payment of sixty nine thousand six hundred and two pounds 
 thirteen shiUings and four pence shall be repeated on the fifth day of each month 
 of the year one thousand eight hundred and ninety nine Western Calendar 
 and of each succeeding year until the fifth day of February one thousand nine 
 hundred and forty three inclusive, that being the last payment when the loan will 
 be extinguished. 
 
 In addition to the payment of principal and interest scheduled above, the 
 Chinese Imperial Government shall on the fifth day of February of each year, 
 commencing with the fifth day of February one thousand eight hundred and 
 ninety nine, pay to the Banks in equal shares at their Branches in Shanghai 
 the sum of Two thousand and eighty eight pounds one shilling and eight pence 
 being the commission of one quarter percent on the Annual Service of the loan, 
 provided for in clause four of the accompanying Agreement. 
 
 (Sgd.) E. G. HiLLiER. 
 
 (Sgd.) . Rump. 
 
 NUMBER 1898/4. 
 
 GERMANY AND CHINA. 
 
 Convention respecting the lease of Kiaochozu* — March 6, 1898. 
 
 The incidents connected with the Mission in the Prefecture of Tsao-chau-foo, 
 in Shantung, being now closed, the Imperial Chinese Government consider it 
 advisable to give a special proof of their grateful appreciation of the friendship 
 
 * Translation from the German text as printed in Customs, Vol. II, p. 208. The Ger- 
 man text of Section 1 was printed in Das Staatsarchiv, vol. 61, No. 11518; translations from 
 that version and from an unofficial version of Sections II and III are printed in Rockhill, 
 p. 45; Am. Int. Law Journal, Supplement, 1910, p. 285; Hertslet, p. 350; Kent, p. 259. See 
 also China, 1899, No. 1, pp. 67 and 152. 
 
 In connection with this convention see also the following documents: — 
 
 1. Anglo-German Declaration respecting Weihaiwei, April 20, 1898 (attached to No. 
 1898/14, post) ; 
 
 2. Anglo-German bankers' arrangement respecting spheres of interest in railway 
 construction, September 2, 1898 (attached to No. 1900/5, post) ; 
 
 3. Declarations made to the United States regarding the open-door policy, March 
 20, 1900 (No. \%0/2, post) : _ 
 
 4. Anglo-German Declaration defining their mutual policy in China, October 16, 
 1900 (No. 1900/5, post) ; 
 
 5. Declaration of war by Japan against Germany, August 23, 1914 (No. 1914/9, post) ; 
 
 6. Treaty between Japan and China respecting the Province of Shantung (with 
 accompanying exchanges of notes). May 25, 1915 (No. 1915/8, post) ; and 
 
 7. Treaty of Peace between the Allied and Associated Powers, and Germanv, June 28, 
 1919 (No. 1919/1, post). 
 
 Concerning customs matters, see the following: — 
 
 1. Agreement between Germany and China for the establishment of a maritime customs
 
 NUMBER 1898/4: MARCH 6, 1898 113 
 
 shown to them by Germany. The Imperial German and the Imperial Chinese 
 governments, therefore, inspired by the equal and mutual wish to strengthen 
 the bonds of friendship which unite the two countries, and to develop the 
 economic and commercial relations between the subjects of the two States, have 
 concluded the following separate Convention : — 
 
 Section I 
 
 Article I. — Rights ceded to German troops.— His Majesty the Emperor 
 of China, guided by the intention to strengthen the friendly relations between 
 China and Germany, and at the same time to increase the military readiness of 
 the Chinese Empire, engages, while reserving to himself all rights of sovereignty 
 in a zone of 50 kilometres (100 Chinese //) surrounding the Bay of Kiao-chau at 
 high-water, to permit the free passage of German troops within this zone at any 
 time, as also to abstain from taking any measures, or issuing any Ordinances 
 therein, without the previous consent of the German Government, and especially 
 to place no obstacle in the way of any regulation of the v^ater-courses which may 
 prove to be necessary.f 
 
 Rights reserved. — His Majesty the Emperor of China, at the same time, 
 reserves to himself the right to station troops within that zone, in agreement 
 with the German Government, and to take other military measures. 
 
 Article II. — Territory leased. — With the intention of meeting the legitimate 
 desire of His Majesty the German Emperor, that Germany, like other Powers, 
 should hold a place on the Chinese coast for the repair and equipment of her 
 ships, for the storage of materials and provisions for the same, and for other 
 arrangements connected therewith, His Majesty the Emperor of China cedes to 
 Germany on lease, provisionally for ninety-nine years, both sides of the entrance 
 
 office at Tsingtau, April 17, 1899 (No. 1899/2, post), to which are attached the agreement 
 concerning inland waters steam navigation, April 17, 1904; amendment of the customs 
 agreement of 1899, December 1, 1905 ; and German ordinances regulating procedure in 
 customs matters, December 2, 1905, and concerning manufactures in German territory, 
 April 17, 1907) ; and 
 
 2. Agreement between Japan and China concerning the reopening of the maritime 
 customs office at Tsingtau, August 6, 1915 (No. 1915/12, post). 
 
 In regard to railway matters, see the following: — 
 
 1. .'\nglo-German bankers' agreement respecting spheres of interest in railway con- 
 struction, September 2, 1898 (attached to No. 1900/5, post) ; 
 
 2. Regulations for the Kiaochow - Tsinanfu Railway, March 21, 1900 (No. 1900/3, 
 post), to which is attached the charter of the Schantung Eisenbahn-Gesellschaft for the 
 construction and operation of a railway from Tsingtau to Tsinanfu, June 1, 1899) ; 
 
 3. Agreement for a loan by British and German banks for the construction of the 
 Tientsin - Pukow Railway, January 13, 1908 (No. 1908/1, post); and 
 
 4. Exchange of notes between Germany and China in regard to the extension of the 
 Shantung Railway, December 31, 1913 (No. 1913/16, post). 
 
 In regard to mining matters, see the Agreement for joint coal mining by Chinese 
 and Germans, March 21, 1900 (No. 1900/4, post). See also note attached to Section II, 
 Article IV of the convention (p. 115, post). 
 
 In reference to postal matters, see the agreement between China and Germany, 
 November 3, 1905 (attached to the note on the International Postal Convention of May 
 26, 1906. No. 1906/3, post), and the Agreement between Japan and China concerning 
 postal and telegraph operations at the leased territory of Kiaochow Bay and along the 
 Kiao-Tsi Railway, March 26, 1917 (No. 1917/5, post). 
 
 See further Note 1 to this document, post, p. 116. 
 
 t See Note 2 to this document, post. p. 118.
 
 114 CHINA TREATIES AND AGREEMENTS 
 
 to the Bay of Kiao-chau. Germany engages to construct, at a suitable moment, 
 on the territory thus ceded, fortifications for the protection of the buildings to 
 be constructed there and of the entrance to the harbour. 
 
 Article III. — Limits of territory leased. — In order to avoid the possibility 
 of conflicts, the Imperial Chinese Government will abstain from exercising 
 rights of sovereignty in the ceded territory during the term of the lease, and 
 leaves the exercise of the same to Germany within the following limits : — 
 
 (1.) On the northern side of the entrance to the bay: 
 
 The peninsula bounded to the north-east by a line drawn from the north- 
 eastern corner of Potato Island to Loshan Harbour. 
 
 (2.) On the southern side of the entrance to the bay: 
 
 The peninsula bounded to the south-west by a line drawn from the south- 
 westernmost point of the bay lying to the south-south-west of Chiposan Island 
 in -the direction of Tolosan Island. 
 
 (3.) The Island of Chiposan and Potato Island. 
 
 (4.) The whole water area of the bay up to the highest water-mark at 
 present known, 
 
 (5.) All islands lying seaward from Kiao-chau Bay, which may be of im- 
 portance for its defence, such as Tolosan, Chalienchow, &c. 
 
 Delimitation. — The High Contracting Parties reserve to themselves to 
 delimit more accurately, in accordance with local traditions, the boundaries 
 of the territory leased to Germany and of the 50-kilometer zone around the bay, 
 by means of Commissioners to be appointed on both sides. 
 
 Rights of Chinese ships in Kiao-chau Bay. — Chinese ships of war and mer- 
 chant-vessels shall enjoy the same privileges in the Bay of Kiao-chau as the ships 
 of other nations on friendly terms with Germany ; and the entrance, departure, 
 and sojourn of Chinese ships in the bay shall not be subject to any restrictions 
 other than those which the Imperial German Government, in virtue of the rights 
 of sovereignty over the whole of the water area of the bay transferred to 
 Germany, may at any time find it necessary to impose with regard to the ships 
 of other nations. 
 
 Article IV. — Navigation signals. — Germany engages to construct the 
 necessary navigation signals on the islands and shallows at the entrance of the 
 bay. 
 
 Port dues. — No dues shall be demanded from Chinese ships of war and 
 merchant-vessels in the Bay of Kiao-chau, except those which may be levied upon 
 other vessels for the purpose of maintaining the necessary harbour arrange- 
 ments and quays. 
 
 Article V. — Return of leased territory. — Should Germany at some future 
 time express the wish to return Kiao-chau Bay to China before the expiration 
 of the lease, China engages to refund to Germany the expenditure she has in- 
 curred at Kiao-chau, and to cede to Germany a more suitable place. 
 
 Germany engages at no time to sublet the territory leased from China to 
 another Power. 
 
 Chinese in leased territory. — The Chinese population dwelling in the ceded 
 territory shall at all times enjoy the protection of the German Government,
 
 Tchang-lin?
 
 c
 
 NUMBER 1898/4: MARCH 6, 1898 115 
 
 provided that they behave in conformity with law and order; unless their land 
 is required for other purposes they may remain there. 
 
 If land belonging to Chinese owners is required for any other purpose, the 
 owner will receive compensation therefor. 
 
 Customs stations. — As regards the re-establishment of Chinese customs 
 stations which formerly existed outside the ceded territory, but within the 
 50-kilometer zone, the Imperial German Government intends to come to an agree- 
 ment with the Chinese Government for the definitive regulation of the customs 
 frontier, and the mode of collecting customs duties, in a manner which will safe- 
 guard all the interests of China, and proposes to enter into further negotiations 
 on the subject.^ 
 
 Section II. — Railway and Mining Affairs, 
 
 Article I. — The Chinese Government sanctions the construction by Ger- 
 many of two lines of railway in Shantung. The first will run from Kiao-chau 
 via Weihsien, Tsingchofu, Poshan, Tzechwan, and Tsowping to Tsinan and the 
 boundary of Shantung. The second line will run from Kiao-chau to Ichowfu, 
 and from there to Tsinan via Laiwuhsien. But the construction of the extension 
 from Tsinan to the boundary of Shantung shall not be begun until the railway is 
 completed as far as Tsinan in order that further consideration may be given by 
 the Chinese as to how they will connect this with their own trunk line. The 
 route to be taken by this last branch will be definitely determined in the regula- 
 tions which will be drawn up hereafter. 
 
 Article II. — In order to carry out the above-mentioned railway work, a 
 Chino-German Company shall be formed. This Company may have offices in 
 one place or in several places, and both German and Chinese merchants shall 
 be at liberty to invest money therein, and share in the appointment of directors 
 for the management of the undertaking. 
 
 Article III. — Germany and China shall in the near future draw up a 
 further agreement relative to the management of the railway by the Com- 
 pany, and all matters pertaining thereto shall be discussed and decided upon 
 by these two countries alone. But the Chinese Government shall afiford every 
 facility to the Chino-German Company in the construction of the road, and it 
 shall enjoy all the advantages and benefits extended to other Chinese-foreign 
 companies operating in China. It is understood that the object of this agree- 
 ment is solely the development of commerce, and in constructing this railroad 
 there is no intention to unlawfully seize any land in the Province of Shantung. 
 
 Article IV. — The Chinese Government will allow German subjects to hold 
 and develop mining property for a distance of thirty // from each side of those 
 railways and along the whole extent of the lines. § The following places where 
 mining operations may be carried on are particularly specified : Weihsien and 
 
 t RockhiU, citing Rcichsaiiceigcr, Sept. 5, 1898, notes that Kiaochow was opened as a 
 free port on September 2, 1898. 
 
 § By a subsequent agreement dated July 24, 1911 (attached to the Mining Regulations of 
 1900, No. 1900/4, post), Article IV was modified by the substitution of specific mining areas 
 in lieu of the general grant of mining rights within 30 li (appro.ximately 10 miles) on either 
 side of the line of the Shantung Railway.
 
 116 CHINA TREATIES AND AGREEMENTS 
 
 Poshan along the line of the northern railway from Kiao-chau to Tsinan, and 
 Ichow, Laiwuhsien, etc., along the southern or Kiao-chau-Ichow-Tsinan line. 
 Both German and Chinese capital may be invested in these mining and other 
 operations, but as to the rules and regulations relating thereto, this shall be 
 left for future consideration. The Chinese Government shall afford every 
 facility and protection to German subjects engaged in these works, just as 
 provided for above in the article relating to railway construction, and all the 
 advantages and benefits shall be extended to them that are enjoyed by the 
 members of other Chinese-foreign companies. The object in this case is also 
 the development of commerce solely. 
 
 Section III. — Commercial operations in Shantung. 
 
 The Chinese Government binds itself in all cases where foreign assistance, 
 in persons, capital or material, may be needed for any purpose whatever within 
 the Province of Shantung, to offer the said work or supplying of materials in 
 the first instance to German manufacturers and merchants engaged in under- 
 takings of the kind in question. In case German manufacturers or merchants are 
 not inclined to undertake the performance of such works, or the furnishing of 
 materials, China shall then be at liberty to act as she pleases. 
 
 The above Agreement shall be ratified by the Sovereigns of both the Con- 
 tracting States, and the ratifications exchanged in such manner that, after the 
 receipt in Berlin of the Treaty ratified by China, the copy ratified by Germany 
 shall be handed to the Chinese Minister in Germany. 
 
 The foregoing Treaty has been drawn up in four copies, two in German and 
 two in Chinese, and was signed by the Representatives of the two Contracting 
 States on the 6th March, 1898, corresponding to the 14th day of the second month 
 in the twenty-fourth year Kuang-hsii. 
 
 (Great Seal of the Tsung-li Yamen.) 
 
 (Signed) Baron von Heyking, 
 
 The Imperial German Minister. 
 
 Li Hung-Chang (in Chinese), 
 Imperial Chinese Grand Secretary, Minister of the 
 Tsung-li Yamen, &c., &c. 
 
 Weng Tung-Ho (in Chinese), 
 Imperial Chinese Grand Secretary, Member of 
 the Council of State, Minister of the Tsung-li 
 Yamen, &c., &c. 
 
 Note 1. 
 
 In the course of a correspondence, initiated by the American Government, as to the 
 construction to be placed upon this convention in the hght of the German Government's 
 adherence to the open-door principle as proposed by Secretary Hay under date of September
 
 NUMBER l«98/4: iMARCH 6, 1898: NOTES 117 
 
 0, 1899, the German Embassy at Washington submitted to the Department of State on 
 February 14, 1902, the following memorandum : — 
 
 Memorandum of German Embassy in Washington regarding German Rights in 
 Shantung. — February 14, 1902. 
 
 " The Imperial German Government has no intention whatever of abandoning its 
 adherence to the principle of the Open Door recognized also for the province of Shantung; 
 neither does it contemplate any measures which might be used by other powers as an 
 encouragement for further disintegrating on their part the actual state of possessions of the 
 Chinese Empire. 
 
 "The Imperial German Government wants to state that any apprehensions in this 
 respect which may possibly have been created by press-dispatches emanating from English 
 sources are without foundation. The facts are that a German corporation has obtained 
 mining concessions for certain strictly defined mineral lands situated in the province of 
 Shantung; but this does in no way mean a monopoly for the whole province." 
 
 Under date of April 19, 1902, the German Foreign Office addressed to the American 
 Embassy in Berlin a memorandum of which the translation is as follows : — 
 
 Memorandum of German Foreign Office regarding German Rights in Shantung.— 
 
 April 19, 1902. 
 April 19, 1902. 
 
 "I. The treaty between Germany and China which was concluded on March 6, 1898, 
 regarding the transfer under lease of certain territory on Kiao-chow Bay, was requisitely rati- 
 fied in due time and has been in force legally between the two contracting parties ever since. 
 
 " II. The extract from the treaty which was contained in the Memorandum from 
 the American Embassy, in the English language, is incorrect in its first paragraph. The 
 provisions referred to, in the original text, read verbally rather as follows : 
 
 " ' The Chinese Government binds itself in all cases where foreign assistance,^ in 
 persons, capital or material, may be needed for any purpose whatever within the Province 
 of Shantung, to offer the said work or furnishing of material, in the first instance, to 
 German industrialists and merchants who are engaged in undertakings of the kind in 
 question. 
 
 " ' In case the German industrialists and merchants are not inclined to undertake the 
 performance of such works or to furnish material, China shall then be at liberty to act 
 as she pleases.' 
 
 "III. 1.) The foregoing provisions do not grant any exclusive rights to Germany, 
 they merely bind China to offer the works and schemes concerned to Germans, but leave 
 to persons of other nationality absolute freedom to obtain the contracts for the furnishing 
 of material by offering more favorable terms. 
 
 " The Imperial Government has as yet not learned of any instance where Americans or 
 any persons of any other nationality have actually been placed at disadvantage through 
 the application of these provisions. 
 
 "2.) The declaration of the principle of the 'Open-Door' by Germany as well_ as 
 by the other Powers, was made a long time after the Kiao-chow treaty had gone into 
 effect. Hence the later assertion of this principle cannot be applied retroactively to Ger- 
 man rights previously obtained, as moreover, none of the other nations has renounced 
 rights already acquired on account or in consequence of its acceptance of the principle 
 of the ' Open-Door.' 
 
 "3.) France, in particular, on the strength of older treaty provisions after which 
 those of the Kiao-chow treaty of 1898 were modeled, claims similar but more far-reaching 
 rights in the southern Provinces of China. So long in the first place as France cannot 
 be induced to renounce these rights the Imperial Government is hardly in a position 
 to consider the renunciation of similar rights obtained by it in Shantung. 
 
 "4.) In other parts of China various other nations hold railway and other concessions 
 of so wide a scope that their realization is not to be thought of within any measurable 
 time, and which therefore practically amount to exclusive privileges. If the Government 
 of the United States is inclined to urge the strict carrying out of _ the principle of the 
 ' Open-Door,' which Germany would only find proper on the supposition that its applica- 
 tion would be absolutely the same to all, it would above all be necessary to raise objections 
 to such exclusive rights as are disguised under the name of concession. _0n the other 
 hand, to begin with a restriction of the German rights in Shantung, which are really 
 quite modest and which in reality seriously prejudice the interests of no one, would 
 neither be just nor acceptable. 
 
 "5.) Finally, the Imperial Government cannot leave out of consideration, in taking 
 up its position, (the fact) that the American Government has as yet refused to recognize 
 the principle of the ' Open-Door ' in the Philippines — to the serious disadvantage of Ger- 
 mans who have obtained rights there."
 
 118 CHINA TREATIES AND AGREEMENTS 
 
 Note 2. 
 
 In the Claim of China for direct restitution to herself of the Leased Territory of 
 Kiaochow, the Tsingtao — Chilian Railway and other German Rights in respect of Shantung 
 Province, as presented by the Chinese Delegation for the consideration of the Preliminary 
 Peace Conference at Paris, in February, 1919, is given (at p. 35) the following translation 
 of a convention between China and Germany respecting the withdrawal of German troops 
 from the cities of Kiaochow and Kaomi (in the 50-kilometer zone), concluded November 28 
 1905 :— 
 
 Agreement for Withdrawal of German Troops from Kiaochow and Kaomi. — 
 
 November 28, 1905. 
 
 " The Emperor of China has appointed Yang Shih-hsiang, Civil and Military Governor 
 of Shantung, and the German Emperor, Van Semmern, Civil and Military Governor of 
 Kiaochow, who after communicating full powers and finding them in due form have agreed 
 upon the following articles. 
 
 " Whereas the German Emperor has, for the purpose of promoting friendly relations, 
 figreed to withdraw the troops stationed at Kiaochow and Kaomi, the following articles 
 are hereby concluded. 
 
 " Article 1. — The German troops at Kiaochow shall withdraw immediately after this 
 Convention has been signed. 
 
 " Article 2. — One fourth of the German troops stationed at Kaomi shall withdraw 
 immediately after the signing of this Convention, and another fourth, within two months 
 therefrom. The remaining troops shall withdraw within the next two months during 
 which period barracks and stables shall be so speedily built in Tsingtao that the said 
 troops may withdraw altogether within this said time-limit. But in case the said works 
 cannot be finished within the two months, a complete withdrawal shall nevertheless be 
 effected — there shall be no further extension of time. 
 
 " Article 3. — from the date of the signing of this Convention, no matter whether the 
 German troops at Kiaochow and Kaomi have completely withdrawn or not, the railways 
 within the surrounding zone shall completely be under the supervision and protection of 
 the Chinese local authorities and police officers. The police officers shall despatch so many 
 policemen as they deem fit, but not more than two hundrfed and forty, to be evenly 
 stationed at various sections : all matters relating thereto shall be conducted according to 
 the police regulations prevailing beyond the surrounding zone. At some place near the city 
 of Kaomi there shall be established a police office with a police force of not more than 
 one hundred men who shall, by turn, attend to their duty in the protection of the railway 
 and in the suppression of disturbances which may arise. But if China should station 
 troops in the said place, all matters relating thereto shall be governed by the Kiaochow 
 Lease Convention. 
 
 " Article 4. — All the works which Germany has constructed in Kiaochow and Kaomi 
 such as barracks, stables, drill grounds, roads, waterworks, and the like, together with the 
 foundations thereof, houses and the fixtures attached thereto cost, calculated at their 
 original prices, $496,388.48. From this amount are to be substracted $5,000.00 as rent paid for 
 the German Government by the Chinese Government, $21,388.48 expended for annual 
 repairs and considered as representing the annual dimunition of the value of the properties, 
 and $70,000.00 as extra reduction ; the net price will then be $400,000.00 at which the said 
 properties will be purchased by and reverted to China under a separate agreement. The 
 price of the buildings shall be paid off in four installments within two years from the 
 day when the barracks at Kiaochow and Kaomi are handed over. After their purchase 
 or reversion, all the buildings shall be reserved for educational and other public uses. 
 
 " Article 5. — In case Germany should, in accordance with the Treaties, require passage 
 for her troops through Kiaochow and Kaomi, and stay there for a few days, a few weeks' 
 notice will be necessary, in order that a vacant place may be assigned for their temporary 
 stay, free of charge. 
 
 "Of this Convention there shall be made four copies in Chinese and four in German, 
 identical in sense; and after they have been signed, two copies each of the Chinese and 
 German texts shall be filed at the office of the Governor of Shantung, and the other two 
 copies each of the said two languages, at the office of the Civil and Military Governor of 
 Kiaochow, for reference, transmission and observance. 
 
 " The second Day, eleventh Moon of the Reign of Kwanghsu corresponding to the 
 28th of November, 1905. 
 
 "Signed: Yang Shih-Hsiang. 
 Van Semmern."
 
 NUMBER 1898/5: MARCH 27, 1898 119 
 
 NUMBER 1898/5. 
 
 RUSSIA AND CHINA. 
 
 Convention for the lease of the Liaotung Peninsula* — March 27, 1898. 
 
 His Majesty the Emperor and Autocrat of all the Russias, and His Majesty 
 the Emperor of China, being desirous of still further strengthening the friendly 
 relations existing between the two Empires and mutually wishing to insure the 
 means whereby to show reciprocal support, have appointed as their Plenipo- 
 tentiaries, for the purpose of arriving at an agreement on this matter : 
 
 His Majesty the Emperor of Russia — M. Alexander Pavlow, Gentleman of 
 the Court, and His Majesty's Charge d' Affaires accredited to the Government 
 of H. M. the Emperor of China; 
 
 His Majesty the Emperor of China — Count Li, Chancellor, Member of the 
 Ministry of Foreign Affairs, and Senior Preceptor of the Heir to the Throne, 
 and Chang, Assistant Minister of Finance, and Member of the Ministry of 
 Foreign Affairs, with Ministerial rank. 
 
 The above-named Plenipotentiaries, furnished with due powers, have decided 
 upon the following stipulations : 
 
 Art. I. — For the purpose of ensuring that the Russian naval forces shall 
 possess an entirely secure base on the littoral of northern China, H. M. the 
 Emperor of China agrees to place at the disposal of the Russian Government, on 
 lease, the Ports Arthur (Liou-choun-kow) and Ta-lien-wan, together with the 
 water areas contiguous to these ports. This act of lease, however, in no way 
 violates the sovereign rights of H. M. the Emperor of China to the above-men- 
 tioned territory. 
 
 Art. II. — The frontier of the territory leased on the above-specified basis, 
 will extend northwards from the Bay of Ta-lien-wan for such distance as is 
 necessary to secure the proper defence of this area on the land side. The precise 
 line of demarcation and other details respecting the stipulations of the present 
 Convention will be determined by a separate Protocol which shall be con- 
 cluded at St. Petersburg with the dignitary Siou-tzin-ch'eng immediately after 
 the signature of the present Convention. Upon the determination of this line of 
 demarcation, the Russian Government will enter into complete and exclusive 
 enjoyment of the whole area of the leased territory together with the water areas 
 contiguous to it. 
 
 Art. III. — The term of the lease shall be twenty-five years from the date 
 of the signature of the present agreement and may be prolonged subsequently 
 by mutual consent of both Governments.f 
 
 * Translation from the Russian text as printed in RecueU, p. 331. Printed also in Rus- 
 sian and Chinese texts in Customs. Vol. II, pp. 219, 223; and. in a translation from unofficial 
 versions, in Rockhill, p. 50: Herislet, p. 505 : Am. Int. Law Journal, Supplement, 1910, p. 289; 
 F. E. Review, vol. 11, p. 395. See Note to this document, post, p. 121. 
 
 t See, however, the Exchange of Notes between China and Japan concerning the ex- 
 tension of this term, May 25. 1915 (No. 1915/8, post).
 
 120 CHINA TREATIES AND AGREEMENTS 
 
 Art. IV. — During the above-specified period, on the territory leased by the 
 Russian Government and its adjacent water area, the entire military command 
 of the land and naval forces and equally the supreme civil administration will 
 be entirely given over to the Russian authorities and will be concentrated in 
 the hands of one person who however shall not have the title of Governor or 
 Governor-General. No Chinese military land forces whatsoever will be allowed 
 on the territory specified. Chinese inhabitants retain the right, as they may de- 
 sire, either to remove beyond the limits of the territory leased by Russia or to 
 remain within such limits without restriction on the part of the Russian authori- 
 ties. In the event of a Chinese subject committing any crime within the limits 
 of the leased territory, the offender will be handed over to the nearest Chinese 
 authorities for trial and punishment in accordance with Chinese laws, as laid 
 down in Article VIII of the Treaty of Peking of 1860. 
 
 Art. V. — A neutral zone shall be established north of the above-specified 
 frontier of the leased territory. The frontiers of this zone will be fixed by 
 the dignitary Siou-tzin-ch'eng and the Ministry of Foreign Afifairs in St. Peters- 
 burg. Within this specified neutral zone the civil administration will be entirely 
 in the hands of the Chinese authorities ; Chinese troops will be admitted within 
 this zone only with the consent of the Russian authorities. 
 
 Art. VI. — Both the Governments agree that Port Arthur, as an exclusively 
 military (naval) port, shall be used solely by Russian and Chinese vessels and 
 shall be considered as a closed port to war-ships and merchant vessels of other 
 States. As regards Ta-lien-wan, this port, with the exception of one of the 
 inner bays which, like Port Arthur, shall be set apart exclusively for the use 
 of the Russian and Chinese fleets, shall be considered open to foreign commerce 
 and free entry to it will be granted to the merchant vessels of all nations. 
 
 Art, VII. — The Russian Government takes upon itself at its own expense 
 and with its own resources to erect all buildings necessary for its fleet and land 
 forces on the area leased to it and especially in the ports Arthur and Ta-lien-wan, 
 to erect fortifications, maintain garrisons in them and generally to take all neces- 
 sary steps for the proper defence of the specified locality from hostile attack. 
 Similarly the Russian Government binds itself at its own expense to erect and 
 maintain light-houses and other precautionary signs requisite for the security 
 of navigation. 
 
 Art. VIII. — The Chinese Government agrees that the concessions granted by 
 it in 1896 to the Chinese Eastern Railway Company, from the date of the 
 signature of the present agreement shall be extended to the connecting branch 
 which is to be built from one of the stations of the main line to Ta-lien-wan, 
 and also, if deemed necessary, from the same main line to another more con- 
 venient point on the littoral of the Liaotung Peninsula between the town of 
 In-tzii and the estuary of the River Yalu- All the stipulations of the contract 
 concluded by the Chinese Government with the Russo-Chinese Bank on August 
 27 (Septembers), 1896, shall apply scrupulously to these supplementary branches. 
 The direction and points through which the above-mentioned lines shall pass will 
 be determined upon by the dignitary Siou-tzin-ch'eng and the administration of 
 the Chinese Eastern Railway. Consent to the construction of the railway on the
 
 NUMBER 1898/5 : MARCH 27, 1898 : NOTE 121 
 
 basis indicated shall never under any form serve as a pretext for the seizure of 
 Chinese territory or for an encroachment on the sovereign rights of China. 
 
 Art. IX. — The present Convention shall come into force from the date of 
 exchange of copies thereof by the Plenipotentiaries of the two States. 
 
 The exchange of ratifications will take place in St. Petersburg with the 
 least possible delay. 
 
 In virtue of which the respective Plenipotentiaries of the two parties have 
 signed and afifixed their seals to two copies of the present Convention in the 
 Russian and Chinese languages. Of the two texts which, upon comparison, 
 have been found to be in agreement, the Russian text shall be that used for the 
 interpretation of the Convention. 
 
 Done in duplicate at Peking, this 15th day of March (March 27), 1898, and 
 by the Chinese calendar the 6th day of the 3rd moon of the 24th year of the 
 reign of Kuang-Hsii. 
 
 (Seal) (Signed) A. Pavlow 
 
 (Seal) (Signed) Li-chang 
 
 (Seal of the Tsung-li-yamen) 
 
 Note. 
 
 In connection with this convention see the Additional Convention defining the boundaries 
 of the leased and neutralized territory in the Liaotung Peninsula, ]\Iay 7, 1898 (No. 1898/9, 
 post) ; see also the Convention for the Retrocession of the Fengtien (Liaotung) Peninsula 
 by Japan to China, November 8, 1895 (No. 1895/10, ante) ; Treaty of peace between Rus- 
 sia and Japan, September 5, 1905 (No. 1905/8, post) ; Treaty and additional agreement be- 
 tween Japan and China concerning Manchuria, December 22, 1905 (No. 1905/18, post) ; 
 and the Exchange of notes between Japan and China, in regard to the extension of the 
 term of lease, accompanying the treaty of May 25, 1915, concerning Manchuria (No. 1915/8, 
 post). 
 
 Rockhill, p. 370, prints the following translation of an imperial order of July 30/ 
 August 11, 1899, for the building of Dalny and creating it a free port: 
 
 Russian Imperial Order regarding Establishment of Dalny as a Free Port. — 
 
 August II, 1899. 
 
 " To THE Minister of Finance. — Our Empire, comprising as it does immense territories 
 in Europe and Asia, is called upon by Divine Providence to contribute to the pacific inter- 
 course of the peoples of the East and the West. For the attainment of this historic object 
 we have received the friendly assistance of the Chinese Empire, which has ceded to us 
 the use of the Harbour of Talienwan and Port Arthur, with the adjacent territory, and 
 has furnished for the Great Siberian Railway an outlet through its possessions to the 
 Yellow Sea. Thanks to this wise decision of the Government of His Majesty the Emperor 
 of China, the extreme limits of two continents of the Old World will very shortly 
 be connected by an uninterrupted line of rails, which will secure for all nations the incal- 
 culable advantages of easy communication, and bring new regions within the operations of 
 the commerce of the world. 
 
 " In our increasing solicitude for a scheme of such general utility as this, we have 
 directed our attention to the first-rate importance which, when once the line is constructed, 
 its terminus, the port of Talienwan, will acquire. Having declared after its occupation 
 that this port was open to the commercial fleets of all nations, we deem it advisable now 
 to proceed to the construction near this port of a town, to which we give the name of ' Dalny.' 
 
 " At the same time, with a view to the commercial development of the future town, 
 we grant to the same for the entire period for which its territory is handed over to Russia 
 by China, under the arrangement of the 15th (27th) March, 1898, the right of free trade 
 granted to free ports on the following conditions : — 
 
 " 1. The importation and exportation of goods of every kind are allowed free of
 
 122 CHINA TREATIES AND AGREEMENTS 
 
 customs dues in the town, port, and adjacent territory, within the limits determined by 
 and liable to modification by the Minister of Finance. 
 
 "2. The right of free trade thus granted does not affect transport, anchorage, and 
 other dues of various kinds, levied at ports. 
 
 " 3. The Quarantine Regulations, issued with a view to preventing the introduction 
 of infectious diseases, must be strictly observed by all ships entering the port. 
 
 "4. Goods imported into Russia which come from the territory enjoying the right 
 of free trade will be examined, will pay import duty, and will enter the Empire under the 
 general conditions in force for the importation of foreign goods. 
 
 " Invoking the blessing of the Lord upon this truly pacific work of the future, we 
 intrust to your care the superintendence of the construction of the town and port. 
 
 Nicholas." 
 
 The following is a translation of an imperial order of July 30/August 12, 1903, creating 
 the Imperial Lieutenancy of the Far East : 
 
 Russian Imperial Order regarding Imperial Lieutenancy of the Far East. — 
 
 August 12, 1903. 
 
 " The complicated problems of administration in the provinces bordering the eastern 
 frontier of the Empire induce us to be solicitous for the institution of the authority over 
 those provinces. 
 
 " In order to assure the pacific satisfaction of the urgent local requirements by the 
 exercise of that authority and recognizing the necessity of forming a Special Lieutenancy 
 to include all the Provinces now under the rule of the Governor General of Pri-Amur and 
 the Kuantung Province it is decreed as follows: 
 
 " 1. The Imperial Lieutenant of the Far East is invested with the supreme (or 
 high) power in respect of civil administration over those provinces and is independent of 
 different ministries. He is also given the supreme authority regarding the maintenance of 
 order and security in the localities appropriated for the benefit of the Chinese Eastern 
 Railway. Due care and protection in regard to the interests and wants of Russian subjects 
 in the neighboring territories outside of the border of the Imperial Lieutenancy are also 
 confided to him. 
 
 " 2. Until the law of administration of the Imperial Lieutenancy of the Far East 
 shall have been promulgated, the authority, rights and obligations of the Imperial Lieutenant 
 in relation to both central and local authorities shall be defined in accordance with the prin- 
 ciple of the Imperial Decree of January 30, 1845, which was promulgated at the time of 
 the establishment of the Lieutenancy of the Caucasus. All administrative offices and all 
 officials under the Imperial Lieutenant are not allowed to communicate with different 
 ministries and departments concerned except through the Imperial Lieutenant. 
 
 "3. All diplomatic relations with neighboring powers in regard to affairs arising 
 in those provinces of the Far East shall be concentrated in the hands of the Imperial 
 Lieutenant. 
 
 "4. The command of the naval forces in the Pacific and of all military forces sta- 
 tioned in the territories assigned to him is given to the Imperial Lieutenant. 
 
 " 5. In order that the action of the chief authority of the Far East shall conform 
 with the general policy of the Empire and the activities of the Ministers a special com- 
 mittee under Our Presidency shall be instituted. Those who assembled and participate in 
 the committee have Our confidence 
 
 " 6. General Adjutant Alexieff who is appointed as the Imperial Lieutenant of the Far 
 East is charged with the development of this Imperial Decree and the drafting of the law 
 of administration of those provinces of the Far East together with its enforcement regula- 
 tions. The Senate will not fail to take due measures when the project shall have been 
 submitted to Us for Our Sanction. 
 
 " Given at Peterhof under Our own signature, July 30/August 12, 1903. 
 
 Nicholas."
 
 NUMBER 1898/6: APRIL 10, 1898 123 
 
 NUMBER 1898/6. 
 
 FRANCE AND CHINA. 
 
 Declaration conceding the non-alienation of Chinese territory bordering on 
 
 Tongking*— April 10, 1898. 
 
 The Charge d'affaires of the French Republic to the Tsung-li Yamen. 
 
 Peking, 4th April, 1898. 
 
 With the purpose of assuring the relations of neighbourliness and friend- 
 ship between China and France ; with the purpose, equally, of seeing the terri- 
 torial integrity of the Chinese Empire maintained and, further, because of the 
 necessity of taking care that no change be introduced in the existing situation 
 as regards the provinces bordering on Tongking {par suite de la necessite de 
 veiller a cc que dans les provinces limitrophes du Tonkin, il ne soit apporte 
 aiicune modification a I'etat de fait et de droit existant), the Government of 
 the Republic would attach particular value to receiving from the Chinese Govern- 
 ment an assurance that it will not cede to any other Power all or a part of the 
 territory of those provinces; either definitely or temporarily, or on lease, or by 
 any title whatsoever. 
 
 I shall be obliged if your Highnesses and your Excellencies will, in 
 acknowledging this letter, be good enough to respond by an official despatch to 
 the desire of the Government of the Republic. 
 
 (Signed) Dub ail. 
 
 The Tsung-li Yamen to M. Dubail, Charge d'affaires of the French 
 
 Republic, Peking. 
 
 Peking, 10th April, 1898. 
 
 On the 4th April, 1898, we received from your Excellency the following 
 despatch : 
 
 [Letter quoted as above.] 
 
 Our Yamen considers that the Chinese provinces bordering on Tongking, 
 being important frontier points which interest her in the highest degree, must 
 always be administered by China and remain under her sovereignty. There is 
 no reason that they should be ceded or leased to any Power. 
 
 As the French Government attaches a particular value to receiving this 
 
 * Translations, as given in Rockhill. p. 178. from the French versions as printed in Doc. 
 Dipt., Chine. 1894-98, p. 49. Printed also, in French versions, in Hertslet, p. 1153; Reciieil, 
 p. 340. 
 
 In connection ^n\\\\ this declaration see also the similar Declaration concernmg Hai-nan, 
 March 15, 1897 (No. 1897/2, ante), and other declarations there cited in the footnote.
 
 124 CHINA TREATIES AND AGREEMENTS 
 
 assurance, we feel called on to address this official reply to your Excellency, 
 begging you to take note of and forward it. 
 
 NUMBER 1898/7. 
 
 FRANCE AND CHINA. 
 
 Agreement in regard to a concession to build a raihvay from Tongking to Ynn- 
 nan, the lease of Kuang-chou-wan, and the organization of the Chinese 
 postal serviced— April 10, 1898. 
 
 M. DuBAiL, Charge d'affaires of the French Republic to the Tsung-li 
 
 Yam EN. 
 
 Peking, 9th April, 1898. 
 
 In pursuance of our interviews, and in execution of the formal instructions 
 of the Government of the Republic, which has furnished me with special powers, 
 I have the honour to ask your Highnesses and your Excellencies to acquiesce 
 in the following terms designed to draw closer the bonds of friendship and 
 neighbourliness which unite the Chinese Empire to the French Republic: — 
 
 1st. The Chinese Government grant to the French Government, or to the 
 French Company, which the latter may designate, the right to make a railway 
 from the frontier of Tongking to Yiin-nan-f u ; the Chinese Government having 
 no other responsibility {charge) but to furnish land for the road and its depen- 
 dencies. The route {trace) of this line is actually surveyed {etudie), and will 
 be fixed later on in agreement with the two Governments. Regulations will be 
 jointly made. 
 
 2nd. The Chinese Government, in consideration of its friendship for France, 
 leases the bay of Kuang-chou-wan, for 99 years, to the French Government, 
 which may establish a naval station and coal depot there. The boundaries of 
 the Concession will be fixed hereafter by agreement between the two Govern- 
 ments, after examination on the spot- The question of rental will be arranged 
 later on. 
 
 3rd. When the Chinese Government organizes a definite Postal Service and 
 places a high functionary at its head, it proposes to call for the help of foreign 
 officers, and declares itself willing to take account of the recommendations of 
 the French Government in respect to the selection of the Staff .f 
 
 * Translations as given in RockhiU, p. 250, from French versions printed in Doc. Dipl, 
 Chine, 1894-1898. p. 50. Printed also, in French versions, in Hertslet, p. 327; Recueil, p. 342. 
 
 See Note to this document, posi, p. 125. . 
 
 tin an article in the London Times of May 30, 1911, on the transfer of the Chmese 
 post-office to the Central Government, the Peking correspondent stated that " This en- 
 gagement was made more explicit by an Exchange of Notes in October, 1902, between 
 Prince Ch'ing, President of the Wai-wu Pu, and Mr. Casenave, Charge d'Affaires of the 
 French Legation."
 
 NUMBER 1898/7: APRIL 10, 1898: NOTE 125 
 
 I beg your Highnesses and your Excellencies to be good enough to acknowl- 
 edge receipt of this despatch by an identical letter which will constitute the 
 agreement of our two Governments. The two documents will serve as a Con- 
 vention, 
 
 G. DUBAIL. 
 
 The Tsung-li Yam en to M. Dubail, &c. 
 
 (Peking,) 10th April, 1898. 
 On the 9th April, 1898, we received from Your Excellency the following 
 despatch : 
 
 [Despatch quoted as above.] 
 
 As it is said in the dispatch which you addressed to our Yamen that these 
 three requests are destined to draw closer the bonds of friendship which unite 
 us, we are able to acquiesce in them. China and France ought to strengthen the 
 good relations which exist between them, and avert forever any cause of conflict. 
 
 It is our duty to address this answer to Your Excellency, in order that 
 you may transmit it to your Government. 
 
 [Signatures of the President and Members of the Tsung-li Yamen.] 
 
 Note. 
 
 In connection with this agreement see the Convention for the lease of Kuang-chou- 
 wan, May 27, 1898 (No. 1898/10, post); see also the contract for the Yunnan Railw^ay, 
 October 29, 1903 (No. 1903/6, post). Consult also the memorandum on railway and 
 mining concessions secured by France and French companies in China, Doc. Dip!., Chine, 
 1894-1898, p. 23, of which a translation is printed in Rockhill, p. 402. 
 
 In Rockhill, p. 280, is given the following translation (from Doc. Dipl., Chine, 1894-1898, 
 p. 53) of an exchange of telegrams in regard to a concession for building a railway from 
 Pakhoi to the West River: 
 
 " M. Hanotaux to M. Pichon. 
 
 "(P.ARIS,) 2 May, 1898. 
 " The recent reports of our Consular Agents show the interest we have in developing 
 means of access (voies de penetration) in the region of Kwangtung and Kwangsi which 
 borders the Gulf of Tongking. Be good enough to ask the Chinese Government for the 
 concession, to a French Company, of a railway destined to connect the port of Pakhoi 
 with a point to be fixed upon on the course of the West River : such concession to be 
 made on the lines of the contract entered into in June 1896, for a railway from Dong- 
 dang to Lungchow. 
 
 " M. PicHON TO M. Hanotaux. 
 
 "(Peking,) 28 May, 1898. 
 "The Chinese Government consents to our request for a railway from Pakhoi to the 
 West River. It is understood that the French, or the Franco-Chinese Company only, 
 may construct all railways having Pakhoi as their starting point."
 
 126 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1898/8. 
 
 JAPAN AND CHINA. 
 
 Declaration concerning the non-alienation of the Province of Fukien* — April 
 
 26, 1898. 
 
 The Tsung-li Yamen to the Japanese Minister at Peking. 
 
 Peking, April 26, 1898. 
 
 Prince Ch'ing and the jMinisters of the Tsung-li Yamen have the honour 
 to reply to a communication from the Minister of Japan dated 2nd day, 3rd 
 intercalary month, 24th year Kuang-Hsii (April 22, 1898), which reads as 
 follows : — 
 
 " A telegram has just been received from the Minister of Foreign Affairs, 
 which reads as follows : — 
 
 " ' The Government of Japan has viewed with constant deep concern the 
 difficulties with which the Government of China has recently been confronted- 
 The declaration made at the time of the evacuation of Weihaiwei is evidence 
 of this. It is to be apprehended that trouble may arise with consequences disas- 
 trous to China. In all this there is no mistaking what our real purpose is. 
 
 " ' In view of the present state of affairs, the Government of Japan, mind- 
 ful of its own interests, cannot act as if entirely in ignorance of passing events, 
 but must take proper measures to meet any situation that may arise. You will 
 ask the Government of China to make a declaration that it will not cede or 
 lease to any other Power any portion of its territory within the Province of 
 Fu-kien.' " 
 
 Referring to his oral statements made in a personal interview, the Minister 
 of Japan requests that a reply be given to his communication. 
 
 The Princes and the Ministers have the honour to state that the Province 
 of Fu-kien, with all the territory in the interior and along the sea-coast within 
 its limits, which is an important part of China, China will never cede or lease 
 to any other Power whatsoever; and to request that this reply be communicated 
 to the Government of Japan. 
 
 The Princes and the Ministers avail themselves of this opportunity to 
 renew to the Minister of Japan the assurances of their most distinguished con- 
 sideration. 
 
 * Translation from Chinese text (?) as printed in RockhUl, p. 181. Printed also in 
 Hertslet, p. 1154. . ■ , • , 
 
 In connection with this declaration see other non-alienation declarations, cited in the 
 footnote to that concerning Hai-nan, March 15, 1897 (1897/2, ante) ; see also the exchange 
 of notes between Japan and China respecting naval bases, etc., on the coast of Fukien, 
 May 25, 1915 (No. 1915/8, post).
 
 NUMBER 1898/9 : MAY 7, 1898 127 
 
 NUMBER 1898/9. 
 
 RUSSIA AND CHINA. 
 
 Additional agreement defining the boundaries of the leased and neutralised 
 territory in the Liaotung Peninsula.^ — May 7, 1898. 
 
 The Governments of Russia and China being desirous of adding some 
 stipulations to the Treaty concluded at Peking on the 15/27th March, 1898,t 
 the Plenipotentiaries of both Governments have agreed upon the following: — 
 
 Article I. — In accordance with Article II of the original Treaty the 
 northern territory leased and yielded to Russia — Port Arthur, Talienwan, and 
 the Liaotung Peninsula — shall commence from the north side of Ya Tang 
 Bay on the west coast of Liaotung and shall pass through the ridge of Ya-tang 
 Mountain (the mountain ridge being included in the leased ground) to the east 
 coast of Liaotung near the north side of the P'i-tzu-wo Bay. Russia shall be 
 allowed the use of all the waters adjacent to the leased territory and all the 
 islands around it. 
 
 Both countries shall appoint special officers to survey the ground and 
 determine the limits of the leased territory. 
 
 Article II. — To the north of the boundary fixed in Art. I, there shall, in 
 accordance with Art. V of the Peking Treaty, be a neutral ground, the northern 
 boundary of which shall commence on the west coast of Liaotung at the mouth 
 of the Kai-chou River, shall pass north of Yu-yen-cheng to the Ta-yang River, 
 and shall follow the left bank of the river to its mouth, this river also to be 
 included in the neutral territory. 
 
 Article III — The Russian Government consents that the terminus of the 
 branch line connecting the Siberian Railway with the Liaotung Peninsula shall 
 be at Port Arthur and Talienwan, and at no other port in the said peninsula. 
 
 It is further agreed in common that railway privileges in districts traversed 
 by this branch line shall not be given to the subjects of other Powers. As 
 regards the railway which China shall [may] herself build hereafter from 
 Shan-hai-kuan in extension to a point as near as [lit., nearest to] possible to 
 this branch line, Russia agrees that she has nothing to do with it. 
 
 Article IV. — The Russian Government assents to the request of the Chinese 
 Government that the Administration and police of the City of Kinchow shall be 
 Chinese. Chinese troops will be withdrawn from Kinchow and replaced by 
 Russian troops. The inhabitants of the city have the power to use the roads 
 from Kinchow to the north boundary of the leased territory, and the waters 
 
 * Translation from the Chinese text as printed in Customs. Vol. IT, p. 227. Printed also 
 in translations from unofficial versions in China (1899), No. 1, p. 188; RockhiU, p. 53; Am. 
 Int. Law Journal, Supplement, 1910, p. 291; F. E. Reviezv. vol. 11, p. 395; Hertslet, p. 508. 
 
 In connection with this agreement see the Convention for the lease, March 27, 1898 
 (No. 1898/5, ante) ; also the Agreement for the southern Manchurian branch of the Chinese 
 Eastern Railway, July 6, 1898 (No. 1898/15, post). 
 
 t No. 1898/5, ante.
 
 128 CHINA TREATIES AND AGREEMENTS 
 
 usually required near the city, the use of which has been granted to Russia; 
 but they have no power to use the sea-coast (round about). 
 
 Article V. — The Chinese Government agrees [lit., agrees to recognize] : 
 
 1. That without Russia's consent no concession will be made in the neutral 
 ground for the use of subjects of other Powers. 
 
 2. That the ports on the sea-coast east and west of the neutral ground 
 shall not be opened to the trade of other Powers. 
 
 3. And that without Russia's consent no road and mining concessions, in- 
 dustrial and mercantile privileges shall be granted in the neutral territory. 
 
 Article VI. — The Articles agreed to above will be drawn up, one copy in 
 Chinese and one in Russian, and signed by the plenipotentiaries of the two 
 countries. 
 
 For purposes of interpretation, the Russian will be the authoritative text. 
 
 Kuang-hsii, 24th year, 3rd intercalary month, 17th day: Russian Calendar, 
 April 25, 1898 (May 7th, 1898). 
 
 NUMBER 1898/10. 
 
 FRANCE AND CHINA. 
 Convention for the lease of Kuang-chou Wan.* — May 27, 1898.'\ 
 
 Article I. — Purpose of lease. — The Chinese Government, in consideration 
 of its friendship for France, has given by a lease for 99 years Kuang-chou Wan 
 to the French Government to establish there a naval station with coaling depot, 
 but it is understood that this shall not offset the sovereign rights of China over 
 the territory ceded. 
 
 Article II. — Extent of territory leased. — The leased territory shall include 
 the waters and ground necessary for the security, the provisioning and the 
 normal development of the naval station and of the coaling depot, that is to say : 
 
 (a) The island of Tong-hai ; 
 
 (&) The island of Nao-chou ; 
 
 {c) At Lei-chou, a strip of land connecting a point of the coast south of Kiu- 
 man-sien (Tiao-man) and situated in 20° 50' north latitude, with She-men in 
 21 " 25' north latitude along a strip roughly indicated on the annexed map. 
 
 (d) At Kao-chou, a strip of land comprised between 21° 25' north latitude 
 and 21 ° 04' north latitude, along a strip roughly indicated on the annexed map. 
 
 * Translation, as given in Rockhill, p. 55, from the French text as reprinted in Doc. 
 Dipl, Chine. 1898-1899, p. 2. Printed, also, in French text, in Customs. Vol. I, p. 946; 
 Hertslet, p. 329; in translation, in Am. Int. Law Journal, Supplement, 1910, p. 293. 
 
 In connection with this convention see also the Agreement in regard to a railway 
 from Tongking to Yunnan, etc., April 10, 1898 (No. 1898/7, ante.) 
 
 t The date given is that of the submission of the convention to the Tsnng-Ii Yamen 
 for approval ; the convention was ratified by China on February 19, 1900.
 
 2-1- 
 
 Xlntree de I 
 
 Kiou-Sam-Sh. 
 
 Pte.Pao-Kinei 
 
 Pte. Haoi
 
 K V U - 1 ( „ 
 
 ^ '^jrv 
 
 
 CVKTE 
 
 KOI v\(i.T(iii:or-nAX 
 
 rRUt^'iLi M Lii.rriur
 
 NUMBER 1898/10: MAY 27, 1898 129 
 
 (e) The small islands situated inside of Kuang-chou Wan, as well as the 
 interior and exterior waters of the bay, and the exterior waters of Nao-chou 
 and of Tong-hai, within the limits recognized in international law (six marine 
 
 miles). 
 
 The exact limits on the continent of Lei-chou and of Kao-chou shall be 
 fixed, after the signing of the present convention, when special surveys shall 
 have been made by officials designated by the two Governments. Said officials 
 shall begin their work without delay, so that all possible misunderstanding be- 
 tween the two countries shall be obviated. 
 
 Article III. — Administration. — The territory shall be governed and ad- 
 ministered during the 99 years of the lease by France alone, so that all possible 
 misunderstanding between the two countries shall be obviated. 
 
 Rights of native inhabitants. — The inhabitants shall continue to enjoy their 
 property; they may continue to inhabit the leased territory and pursue their 
 labors and occupations, under the protection of France, so long as they respect 
 its laws and regulations. France shall pay an equitable price to the native prop- 
 erty owners for the land which it may wish to acquire. 
 
 Article IV. — Right to garrison and to insure navigation. — France may 
 erect fortifications, place garrisons of troops or take any other defensive 
 measure on the leased land. 
 
 She may erect lighthouses, set buoys and signals useful for navigation on 
 the leased territory, along the islands and coasts, and in a general w^ay, take 
 all measures and adopt all plans to insure the freedom and safety of navi- 
 gation. 
 
 Article V. — Rights of treaty power vessels in leased territory. — Steamers 
 of China as well as the ships of the Powers having diplomatic and commercial 
 relations with her, shall be treated within the leased territory in the same 
 manner as in the opened part of China, 
 
 Light-house and tonnage dues. — France may issue all regulations she may 
 wish for the administration of the territory and of the ports and particularly 
 levy lighthouse and tonnage dues destined to cover the expense of erecting and 
 keeping up lights, beacons and signals, but such regulations and dues shall be 
 impartially used for ships of all nationalities. 
 
 Article VI. — Extradition. — If cases of extradition should occur, they shall 
 be dealt with according to the provisions of existing conventions between France 
 and China, particularly those regulating the neighboring relations between China 
 and Tongking. 
 
 Article \TI. — Railway to be built. — The Chinese Government authorizes 
 France to construct a railway connecting a point on the bay of Kuang-chou Wan, 
 by Lei-chou, with a point to be designated on the west coast of Lei-chou, in the 
 neighborhood of On-pu. This latter point shall be precisely designated later on. 
 
 China will give the land, but the expenses of building and working shall be 
 borne by France- Chinese shall have the right to travel and trade on the 
 railway, in accordance with the general tariff in force. 
 
 The mandarins must see to the protection of the railway and the stock, but 
 the repairs and maintenance of said road and its stock shall be at the expense of 
 France.
 
 130 CHINA TREATIES AND AGREEMENTS 
 
 Article VIII. — Improvements at On-pu. — France may also, at the end of 
 the hne about On-pu, build landing stages, wharves, storehouses and hospitals, 
 put up lights, buoys and signals. The nearest deep water anchorage to this 
 terminus (territorial waters) shall be exclusively reserved for French and 
 Chinese ships of war, those of the latter nationality only when neutral. 
 
 The present convention shall come into force at once. It shall be ratified at 
 once by the Emperor of China, and when it shall have been ratified by the 
 President of the French Republic, the exchange of ratifications shall take place 
 at within the briefest delay. 
 
 Done at Peking in eight copies, of which four are in the French language 
 and four in Chinese, the , 1898. 
 
 NUMBER 1898/11. 
 
 GREAT BRITAIN AND CHINA. 
 
 Convention respecting an extension of the Hongkong territory * — June 9, 1898. 
 
 Whereas it has for many years past been recognized that an extension of 
 Hong Kong territory is necessary for the proper defence and protection of 
 the Colony, 
 
 Territory leased.- It has now been agreed between the Governments of Great 
 Britain and China that the limits of British territory shall be enlarged under 
 lease to the extent indicated generally on the annexed map. The exact boun- 
 daries shall be hereafter fixed when proper surveys have been made by officials 
 appointed by the two Governments. The term of this lease shall be ninety-nine 
 years. 
 
 Jurisdiction in leased territory. — It is at the same time agreed that within 
 the city of Kowloon the Chinese officials now stationed there shall continue 
 to exercise jurisdiction except so far as may be inconsistent with the military 
 requirements for the defence of Hong Kong. Within the remainder of the newly- 
 leased territory Great Britain shall have sole jurisdiction- Chinese officials and 
 people shall be allowed as heretofore to use the road from Kowloon to Hsinan. 
 
 Rights of Chinese ships. — It is further agreed that the existing landing- 
 place near Kowloon city shall be reserved for the convenience of Chinese men- 
 of-war, merchant and passenger vessels, which may come and go and lie there 
 at their pleasure ; and for the convenience of movement of the officials and 
 people within the city. 
 
 * Text as reprinted in Rockhill, p. 58, from British Treaty Series, 1898, No. 16. Printed 
 also in Customs, Vol. I, p. 539; Hcrtslet, p. 120; Am. Int. Law Journal, Supplement, 1910, 
 p. 295. 
 
 For the original concession of the Hongkong territory, see Article 6 of the Anglo- 
 Chinese Convention of peace and friendship, October 24, 1860 {Hcrtslet, p. 48).
 
 HOXG 
 
 Reproductii 
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 HONG KONG EXTENSION 
 
 
 
 
 
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 Convention between Great 
 
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 signed at Peking on 
 
 he 9th of June 1898 
 
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 71 
 
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 NUMBER 1898/12: JUNE 21, 1898 131 
 
 Railway. — When hereafter China constructs a railway to the boundary of 
 the Kowloon territory under British control, arrangements shall be discussed.f 
 
 Expropriation of natives. — It is further understood that there will be no 
 expropriation or expulsion of the inhabitants of the district included within the 
 extension, and that if land is required for public offices, fortifications, or the like 
 official purposes, it shall be bought at a fair price. 
 
 Extradition. — If cases of extradition of criminals occur, they shall be dealt 
 with in accordance with the existing Treaties between Great Britain and 
 China and the Hong Kong Regulations.^ 
 
 Chinese war ships. — The area leased to Great Britain as shown on the an- 
 nexed map, includes the waters of Mirs Bay and Deep Bay, but it is agreed 
 that Chinese vessels of war, whether neutral or otherwise, shall retain the 
 right to use those waters. 
 
 This Convention shall come into force on the first day of July, eighteen 
 hundred and ninety-eight, being the thirteenth day of the fifth moon of the twenty- 
 fourth year of Kuang Hsii. It shall be ratified by the Sovereigns of the two 
 countries, and the ratifications shall be exchanged in London as soon as possible. § 
 
 In witness whereof the Undersigned, duly authorized thereto by their re- 
 spective Governments, have signed the present Agreement. 
 
 Done at Peking in quadruplicate (four copies in English and four in Chinese) 
 the ninth day of June, in the year of our Lord eighteen hundred and ninety- 
 eight, being the twenty-first day of the fourth moon of the twenty-fourth 
 year of Kuang Hsii. 
 
 [l. s.] Claude M. MacDonald, 
 
 [l. s.] (Seal of the Chinese Plenipotentiary.) 
 
 NUMBER 1898/12. 
 
 GREAT BRITAIN (The Pekin Syndicate, Ltd.) AND CHINA (The Yii-Feng 
 
 Company)- 
 
 Regulations for tnining purposes, iron works, and transporting mine products of 
 all kinds in the Province of Honan.\\ — June 21, 1898. 
 
 1. — The Governor of Honan having sanctioned the request of the Yii-Feng 
 Company for the sole right to work all mines around Huai Ching Fu, and in 
 all the hill country in Honan Province north of the Yellow River, the several 
 
 t See the Canton-Kowloon Railway agreement of March 7, 1907 (No. 1907/2,/»o.yO- 
 
 t H^rtslet cites the treaty of June 26, 1858, and the Hongkong ordinances of 1889 and 
 1897 (Hertslet, pp. 18, 1130, 1149). 
 
 § Ratifications exchanged at London, August 6, 1898. 
 
 II Text as reprinted in Rockhill, p. 320, from China, 1899, No. 1, p. 191. 
 
 In connection with these regulations see the memorandum of agreement with the 
 civil governor of Honan and the Chung Yuan Company, November 9, 1914, printed on
 
 132 CHINA TREATIES AND AGREEMENTS 
 
 concessions granted are now transferred for operation to the Pekin Syndicate 
 for the period of sixty years. Mining engineers shall first be sent to find in what 
 township and hills the mines are situated and what they produce, and make 
 maps thereof with explanations inserted, which shall be submitted to the Gov- 
 ernor of Honan that he may see that the proposed works are not injurious to 
 the place; and he shall report thereon to the Tsung-li Yamen for record, 
 and at the same time issue a permit for the mines to be opened without the 
 least delay. If mining lands belong to the people, the lease or purchase shall 
 be made by arrangement with the owners for a reasonable price ; if it be 
 Government land the tax to be paid on it shall be double the ordinary land tax 
 for that locality. 
 
 2. — The Governor of Honan has authorized the Yii-Feng Company to 
 negotiate a foreign loan not to exceed 10,000,000 taels. Should the mining en- 
 gineers employed find this sum insufficient, the Yii-Feng Company may borrow 
 more only of the Pekin Syndicate. 
 
 3. — All matters of administration, exploitation, employes and finances shall 
 be controlled by the Board of Directors of the Pekin Syndicate, and the chief 
 of the Yii-Feng Company shall co-operate. The Governor of Honan shall be 
 requested to send officials from time to time to inspect the accounts of receipts 
 and expenditures. 
 
 4. — Each mine must have one foreign and one Chinese Manager, the for- 
 eigner to control the works, the Chinese to attend to all matters between natives 
 and foreigners. Accounts will be kept by the foreign system; receipts and pay- 
 ments of money to be controlled by the foreign Manager and audited by the 
 Chinese Manager. At all mines Chinese should be employed as much as pos- 
 sible. All salaries to be paid by the Syndicate. 
 
 5. — When prospecting for mines if there be any boring or sinking of pits 
 to examine mineral deposits an arrangement should first be made with the 
 landowner to compensate him for any crops injured. If a mine be opened on 
 private land an arrangement must be made with co-operation of the local officials 
 to lease or buy the land for a reasonable price fair to both parties as a measure 
 to justice. Wherever land leased or bought for mines contains cemetery or 
 mortuary shrines some plan must be devised to avoid them — there must be no 
 excavation. After mines are opened should there be damage to life or build- 
 ings from subsidence in the mines, the Syndicate shall make charitable com- 
 pensation. 
 
 6. — Wherever mines are worked there shall be paid yearly to the Chinese 
 Government as producer's tax (" lo-ti-shui ") 5 per cent, on the cost of extract- 
 ing the output of the mines. From the profits shown by the yearly accounts 
 there shall first be paid 6 per cent, interest on the capital employed, and next 
 10 per cent, shall be set aside as a sinking fund for yearly repayment of capital 
 and consequent reduction of interest payments to sinking fund ceasing when the 
 
 r. 1210, post, in Note to the final agreement with the same parties, May 7, 1915 (No. 
 1915/6). 
 
 In regard to the concessions of the Peking Syndicate in the Province of Shansi, see 
 the agreement of May 21, 1898, attached to the Redemption Agreement of January 21, 
 1908 (No. 1908/2, post).
 
 NUMBER 1898/12: JUNE 21, 1898 133 
 
 invested capital is wholly repaid ; and from the remaining net profit 25 per cent, 
 shall be paid to the Chinese Government, and the remainder shall go to the 
 Syndicate for its own disposition. In future, wherever foreign capital is used 
 to work coal and iron mines in China this rule for a 5 per cent. Government 
 tax on the output shall be enforced, so that all may be treated alike. This 
 capital being money lent by merchants for mining purposes, the Chinese Govern- 
 ment will not in any way be responsible for losses incurred in the business. 
 
 7. — As the Syndicate will work mines in several places, the accounts and 
 profits of each mine must be kept distinct from the others. The gains of one 
 mine should not be made to ofT-set the losses of another, and so cause the 
 Government income to suffer reduction. 
 
 8. — All machinery, materials, and supplies needed for the mines shall, on 
 importation, be subject to the rules in force with the Kai-Ping and other mining 
 Companies, and pay one full duty and a-half to the Maritime Customs, and 
 shall be exempt from all inland likin taxes. The products of the mines, when 
 exported from a sea-port, shall pay export duty according to the Customs Tariff. 
 
 9. — The Syndicate is to control the mines for sixty years, on expiration of 
 which term all the mines of the Syndicate, whether new, or old, profitable or 
 not, shall, with all plant, materials, buildings, lands, railways, bridges, and all 
 property acquired by the capital of the mines, be handed over gratis to the 
 Chinese Government, and in due time the Yii-Feng Company shall request the 
 Governor of Honan to send deputies to take delivery- 
 
 10. — It is important that at each mine measures should be taken to prevent 
 discord between officials and people. For this purpose, the Yii-Feng Company 
 should request the Governor to appoint a deputy, and. the Syndicate should 
 nominate one of the gentry. The salaries of both to be paid by the Syndicate. 
 
 11. — On first opening the mines foreigners must of course be employed as 
 mining engineers and foremen, but later on the Yii-Feng Company and the 
 Syndicate should arrange to select for such positions any Chinese who may be 
 proficient in mining, engineering, or managing work. For subordinate posi- 
 tions of little responsibility Chinese should be entirely employed, and Honan 
 natives as much as possible, so as to encourage improvement. 
 
 12. — The miners employed should be chiefly Honan men, and should be paid 
 fair wages. After the mines are open, the Yii-Feng Company and the Syndicate 
 should select from European and American Mining Regulations suitable ones 
 to apply to questions of compensation to miners for injuries while at work, to 
 pensions for the aged after long service, the limit of daily working hours, &c., 
 and obtain for such Regulations the approval of the Governor. 
 
 13. — In opening the mines the Syndicate shall establish a school of engineer- 
 ing and mining in some locality convenient to the mines, and there shall be 
 selected twenty or thirty promising youths by the local officials and gentry to 
 study in this school under foreign instructors, and thus prepare for future em- 
 ployment on railways and in mines. The expenses for this school to be met 
 by the Syndicate. 
 
 14. — The 10,000,000 silver taels to be loaned to the Yii-Feng Company by 
 the Pekin Syndicate is an estimated sum. After the capital necessary for open-
 
 134 CHINA TREATIES AND AGREEMENTS 
 
 ing each mine has been supplied by the Syndicate, the Syndicate will be au- 
 thorized to print share certificates and conditions for the capital furnished, and 
 fix the time of sale. Chinese merchants who apply for shares within the fixed 
 time shall be allowed to buy of shares for sale any number they wish. 
 
 15. — Chinese merchants who wish to buy shares may get them from the 
 Yii-Feng Company, who will procure them at current market rates, or they may 
 themselves buy or sell the shares at pleasure- If any Chinese gentry or mer- 
 chant shall, within the term of sixty years, acquire three-fourths of all the shares 
 of any one mine, that mine may then be redeemed from the Syndicate, and the 
 Yii-Feng Company shall report upon same, and direct that shareholder to take 
 charge of the mine. 
 
 16. — If, within the area authorized for opening mines, there be mines already 
 worked by the people, such private mines shall not be appropriated, but if a 
 proprietor be willing to lease or sell his mine, the Yii-Feng Company and the 
 Syndicate shall offer a reasonable price for it, but no compulsion shall be used. 
 
 17. — Whenever it may be necessary for any mine to make roads, build 
 bridges, open or deepen rivers or canals, or construct branch railways to connect 
 with main lines, or with water navigation to facilitate transport of Honan coal, 
 iron, and all other mine products from the province, the Syndicate, on reporting 
 to the Governor of Honan, is authorized to proceed with the works, using its own 
 capital, without asking for Government funds. 
 
 Regulations for the branch railways are to be made in due time. 
 
 Private land required for the works authorized as above, shall be leased or 
 bought according to the rules already in force with other public Companies. 
 
 No encroachment of private property shall be allowed, and the local au- 
 thorities must be applied to for protection. 
 
 18. — At the end of every year a printed account of profit and loss shall be 
 rendered by each mine to the Yii-Feng Company, and each mine shall appoint 
 one Chinese and one foreign auditor to examine the accounts and certify that 
 they are correct ; and a general account of profit and loss for all the mines shall 
 be jointly prepared and submitted to the Governor, who will send copies to the 
 Tsung-li Yamen and Board of Revenue for audit. 
 
 Payments due to the Government shall be reported at same time. 
 
 19. — These mines being under the sovereignty of China, should China ever 
 be at war with another country the Syndicate will obey the orders of the Chinese 
 Government prohibiting any aid to the enemy. 
 
 20. — These Regulations shall be made out both in Chinese and foreign text, 
 each party to have a copy for reference. 
 
 Signed in Peking on the 21st day of June, 1898, being the 3rd day of the 
 5th month of the 24th year of the Emperor Kuang-Hsu. 
 
 (Signed) A. Luzzatti, 
 
 General Agent of the Pckin Syndicate (Limited) . • 
 
 [Seal of the Pekin 
 
 Syndicate, Limited.] 
 
 (Signature of the Chief of the Yii-Feng 
 
 [Seal of the Company.) 
 
 Tsung-h Yamen.]
 
 NUMBER 1898/13: JUNE 26, 1898 135 
 
 NUMBER 1898/13. 
 
 BELGIUM (La Societe d'Etudes des Chemins de Fer en Chine) AND CHINA. 
 
 Loan contract, and operating contract, for the Peking-Hankow Railway* — 
 
 June 26, 1898. 
 
 Loan Contract. 
 
 Between the undersigned: 
 
 1". Their Excellencies the Viceroys of Chihli and of Hupeh, acting in virtue 
 of full powers from the Imperial Chinese Government, duly authorized by decree 
 of H. M. the Emperor of China, under date the 20 October 1896, of which 
 communication has been officially made to the Representatives of Belgium at 
 Peking, by despatch of the Tsung-li Yamen, under date of 
 
 2°. The Imperial Government of China, represented by H. E. Sheng Hsiian- 
 huai ; Director General of the Chinese Railway Company ; 
 
 3°. The Chinese Railway Company, represented by H. E. Sheng Hsiian-huai, 
 its Director General, 
 
 And the Societe d'Etudes des Chemins de fer en Chine, represented by AI. 
 Eugene Hubert, engineer. 
 
 Has been agreed the following: 
 
 Article 1. — The Imperial Chinese Government has, in compliance with a 
 decree dated the 20 October 1896, of which copy is annexed to the present con- 
 tract, granted the concession of the line from Lu-kou-chiao (Peking) to Hankow 
 (about 1,300 kilometers) to the Chinese Railway Company, which has assets 
 amounting to thirteen million taels. 
 
 An edict of H. M. the Emperor of China has authorized Their Excellencies 
 the Viceroys of Chihli and of Hupeh and H. E. Sheng Hsiian-huai, Director 
 General of Chinese Railways, to contract, in the name and on account of the Im- 
 perial Chinese Government, a loan the product of which is destined exclusively to 
 the building of the above mentioned line. 
 
 This edict, bearing date the 20 October 1896 and of which a copy is annexed 
 to the present contract, is worded as f ollow^s : 
 
 "Edict of His Majesty the Emperor of China: 
 
 " In response to a request of Their Excellencies the Viceroys of Chihli and 
 " of Hukwang, presented to His Majesty the Emperor of China, an Imperial 
 " edict, bearing date of this day, authorizes the organizing of a Railway Com- 
 " pany and grants it the concession of the line from Lu-kou-chiao (Peking) to 
 " Hankow. His Majesty the Emperor authorizes the Railway Company to con- 
 " tract abroad a loan the product of which shall be devoted in full to the building 
 " of said line. 
 
 " H. E. Sheng Hsiian-huai, under-secretary of State, is appointed Director 
 " General of this new Company. 
 
 " Peking, the 20th October 1896." 
 
 * Translations from the French texts, as given in Rockhill, p. 232. French texts printed 
 in Wang, pp. 41, 65. See Note to this document, post, p. 145.
 
 136 CHINA TREATIES AND AGREExMENTS 
 
 In compliance with the terms of this edict, the Imperial Chinese Government, 
 represented by Their Excellencies the Viceroys of Chihli and of Hupeh and the 
 Director General of Chinese Railways, has decided to contract a State 5 p. c. 
 foreign gold loan, of a nominal value of 112,500,000 francs (or 4,500,000 pounds 
 sterling). 
 
 This loan shall be known as the Chinese 5 p. c. 1898 Loan. 
 
 Article 2. — This loan will be represented by 225,000 bonds of 500 francs 
 gold- 
 
 These bonds, the text of which is annexed to the present Contract, shall be 
 signed in the name of the Imperial Chinese Government by the Viceroys of Chihli 
 and of Hupeh and by the Director General of the Chinese Railway Company. 
 
 They shall be issued in blocks of 1 to 5 bonds, in the proportion to be indi- 
 cated by the Societe d'Etudes des Chemins de fer en Chine and are to be manu- 
 factured at its expense. 
 
 They shall bear 5 p- c. interest annually on the par value payable in gold. 
 
 Interest shall accrue from the date of the payments and shall be payable the 
 1st September and the. 1st March of each year. 
 
 The first coupon is payable in gold at francs. 
 
 Article 3. — The loan shall be extinguished in twenty years, from the year 
 1909, by yearly drawings by lot {tirages an sort), which will take place at Brus- 
 sels, in the offices of the Societe Generale pour favoriser ITndustrie Nationale, in 
 conformity with the table annexed to the present. 
 
 The drawings shall take place the second Tuesday of January each year: 
 the first drawing shall take place on that date in 1909. 
 
 The numbers of the bonds drawn shall be published in four nev/spapers at 
 the expense of the Societe d'Etudes des Chemins de fer en Chine. 
 
 Article 4. — The bonds drawn shall be refunded in gold at their par value 
 on the date on which falls due the next coupon. 
 
 The bonds presented for reimbursement must have attached to them all the 
 coupons remaining unpaid, and the amount of missing coupons will be deducted 
 from the capital to be refunded. 
 
 Interest on bonds ceases to accrue from the date set for reimbursement. 
 
 Article 5. — The Imperial Chinese Government denies itself the right before 
 the 1st September 1907 to increase the amortization, to pay off the whole loan 
 or to make a conversion of it. After that date it shall be at liberty to pay off the 
 loan at any time before the terms of payment, and once the refunding made, 
 the contract shall be declared annulled. f 
 
 Article 6. — The coupons and the bonds (titres) redeemed {amortis) shall 
 be payable in francs, in Europe in the office or offices designated by the Societe 
 d'Etudes and entrusted by it with the management of the loan. 
 
 Article 7. — Payment of interest and refunding of bonds of the present loan 
 are guaranteed by the gross revenues of the Imperial Chinese Government. 
 
 Furthermore, in virtue of an authorization already granted by the Chinese 
 
 Government and in agreement with it, the Chinese Railway Company declares 
 
 t See loan agreement of Oct. 8, 1908 (No. 1908/12, post), and the imperial edict of 
 Oct. 8. 1908 (No. 1908/13, post). The Chinese Government took control of the Peking- 
 Hankow Railway from January 1, 1909.
 
 NUMBER 1898/13: JUNE 26, 1898 - 137 
 
 that it specially assigns, preferentially for the payment of interest and capital 
 of the present loan, and consequently cedes and delegates in favor of said 
 bonds all the net revenue of the line from Lu-kou-chiao (Peking) to Hankow, — 
 after the regular payment of all expenses of administration and operation, the 
 whole, as is furthermore set forth in a treaty for operating (the line) concluded 
 between the Chinese Railway Company and the Societe d'Etudes des Chemins 
 de fer en Chine, treaty hereto annexed and forming an integral part of this 
 contract. 
 
 This assignment (affectation) is made exclusively and irrevocably until com- 
 plete refunding of the bonds of the present loan. 
 
 Article 8. — The Chinese Railway Company directs the Societe d'Etudes to 
 deposit the funds from the net revenue of the traffic with the Societe Generale 
 pour favoriser ITndustrie Nationale, established at Brussels, or with the com- 
 pany designated by it. 
 
 This latter shall convert into gold, and to the best interest of the Imperial 
 Chinese Government and the Chinese Railway Company, and up to the full 
 amount of the sum necessary to insure the service of the loan at the following 
 semi-annual payment, the deposits made with it by the Societe d'Etudes empow- 
 ered by the Chinese Railway Company to make them. 
 
 These deposits by the Societe d'Etudes with the Societe Generale Beige or 
 the company designated by it shall continue to be made until the sum necessary 
 for the full service of the loan at the date of the next semi-annual payment has 
 been completed in gold, and in such manner that said service is insured three 
 months at least before said semi-annual payment falls due. The depositories 
 shall utilize these sums in the manner the most advantageous for the Chinese 
 Company. 
 
 The account on which these sums are borne shall be charged twenty days 
 before date of semi-annual payment with the sum necessary for the service of 
 the loan, interest, amortization, expenses and commissions. 
 
 Article 9. — The bank having received in deposit the funds shall have the 
 right to take, without new authorization, from such funds on deposit, the amount 
 of the coupons to be paid during the period of construction. 
 
 Article 10. — So as to insure the guarantee just mentioned for the bonds of 
 the present contract, the Chinese Railway Company recognizes for these bonds 
 a prior special lien on the railway from Lu-kou-chiao (Peking) to Hankow: 
 line, stationary and rolling stock and receipts. 
 
 This special assignment is accepted in the name of the bondholders by the 
 Societe d'Etudes. In case of non-execution of the obligations assumed by the 
 Chinese Railway Company in the present contract, the Societe d'Etudes or the 
 Belgian Company designated by it, shall have full power to enjoy as to said 
 property all the rights and powers resulting from said special assignment. 
 
 Article 11. — The preceding provisions do not relieve the Imperial Chinese 
 Government from personal responsibility relative to the present loan, as this 
 responsibility is specified in Article 7. 
 
 Consequently, the Imperial Chinese Government agrees to make up the 
 necessary amount for the service, in gold, of the loan, in case the sums accruing
 
 138 CHINA TREATIES AND AGREEMENTS 
 
 from the net proceeds of the hne from Lu-kou-chiao (Peking) to Hankow, and 
 paid by the Societe d'Etudes, entrusted with this service by the Chinese Railway 
 Company, to the Societe Generale Beige, or to the Company which it may 
 designate, should not have reached, after their conversion in gold, and at least 
 three months before the following semi-annual payment, the amount sufficient to 
 cover said service. 
 
 In this case, and upon the request made it, the Imperial Chinese Govern- 
 ment must hold at the disposal of the Societe Generale Beige or of the Com- 
 pany designated by it 60 days before the next semi-annual payment, gold or 
 securities deemed sufficient to realize the amount in gold, which the Company 
 shall have notitfied the Government is necessary to complete the payment. 
 
 Article 12. — Out of the sums coming from the payments made by the 
 Societe d'Etudes or the payments made by the Imperial Chinese Government, the 
 Societe Generale Beige or the Company designated by it, shall in due time place 
 at the disposal of the Firms entrusted with the service of the loan, the neces- 
 sary amounts, according to the needs as ascertained during the preceding half- 
 year. 
 
 Article 13. — The Imperial Chinese Government will pay to the Firms 
 entrusted with the service of the loan a commission of 34 per cent on the amount 
 of paid coupons and a commission of ^^ per cent on the amount of the bonds 
 drawn or redeemed by anticipated reimbursement. The amount of this allow- 
 ance shall be deducted every six months from the surplus of the available ex- 
 ploitation receipts, and, in case of insufficiency, it shall be immediately paid by 
 the Imperial Chinese Government. 
 
 Article 14. — The Imperial Chinese Government binds itself by the present 
 conventions to observe and cause to be observed the privilege stipulated in favor 
 of the bonds in Article 9, and to maintain, free and exempt from all tax whatso- 
 ever, the bonds and coupons, as well as all transactions of whatsoever nature con- 
 nected with the service of the loan. 
 
 Article 15. — Coupons which shall not have been presented for cashing within 
 five years following their falling due, shall revert to the Imperial Chinese Govern- 
 ment ; thirty years shall be the limit for redeemed bonds. 
 
 On the death of any bondholder of the present loan, the bonds shall be 
 transferred and shall belong to his heirs, according to the inheritance laws in 
 force in the country of which the deceased bondholder was citizen. 
 
 Payments of coupons and the redemption of bonds shall be made in time 
 of war, as in time of peace, to the bearers whether they be subjects of friendly 
 or hostile States. 
 
 In case of loss, of theft or destruction of bonds of the present loan, the 
 Chinese Government shall replace them, after having been furnished satisfactory 
 proof of their loss or of the destruction of the title deeds and of the rights 
 of the claimants. 
 
 Article 16. — The Imperial Chinese Government through its representatives 
 in Europe shall immediately take the necessary steps and furnish the necessary 
 documents for the official listing of the present loan in the Bourses of Brussels 
 and Paris.
 
 NUAIBER 1898/13: JUNE 26, 1898 139 
 
 Article 17. — Out of the total amount of the present loan, representing as 
 nominal capital a sum of 112,500,000 francs, the Societe d'Etudes des Chemins de 
 fer en Chine purchases outright {achete fermc) 39,000,000 francs of nominal 
 capital, or 78,000 bonds of 500 francs, at 90%, for the total sum of 35 million 
 100,000 francs, delivery to date from the payment to the banks designated in the 
 following article. 
 
 Article 18. — The Societe d'Etudes des Chemins de fer en Chine shall 
 deposit the amount of this purchase, as follows: 8,600,000 francs in the Russo- 
 Chinese Bank at Shanghai, and the remainder in a bank designated by common 
 accord by the Director General of the Chinese Railway Company and the Societe 
 d'Etudes and against receipt by the Russo-Chinese Bank in Paris of definitive 
 bonds for 78,000 bonds bought outright (achctcs ferme) and deposit in the same 
 bank of the definitive bonds for 147,000 bonds forming the surplus of the 
 loan. 
 
 The Russo-Chinese Bank and the Bank designated by common accord by 
 the Chinese Railway Company and the Societe d'Etudes shall credit the Chinese 
 Railway Company with the sums deposited with them, it being understood that 
 these depository establishments shall not be obliged to deliver these sums, except 
 under the conditions and under the reservations indicated in undermentioned 
 Article 20. 
 
 The depository banks shall use these sums to the best advantage of the 
 Chinese Railway Company. 
 
 Article 19. — The Chinese Railway Company declares that it has resources 
 amounting to thirteen million taels- 
 
 The construction of the railroad from Lu-kou-chiao (Peking) to Hankow 
 being limited provisionally to the section from Lu-kou-chiao (Peking) to Paoting 
 (145 kilometers) and to the Hankow-Sinyang section (247 kilometers) which 
 must be constructed first ; it is understood that the thirteen million taels above 
 mentioned shall in the first place be applied to the construction and to putting 
 in complete working order of the Lu-kou-chiao-Paoting section. 
 
 The construction of the entire line (not including the Peking-Paoting 
 section) shall be done under the direction of the Societe d'Etudes des Chemins 
 de fer en Chine or its representatives, but for the account of the Chinese 
 Railway Company. 
 
 The Societe d'Etudes shall make the studies, plans, surveys, estimates for the 
 whole line, direct the execution of all the work and order the materials, ma- 
 chinery and furniture necessary to insure the regular operation of the line. 
 However, the Director General of the Chinese Railway Company reserves to 
 himself the right to approve the building plans and contracts for supplies. 
 
 Except for supplies of materials and expenses of all kinds paid in Europe, 
 the Chinese Railway Company must place at the disposal of the Societe d'Etudes 
 the necessary sums for settling all payments without exception necessitated in 
 the carrying out of the work, as well as the payment of the staff under the orders 
 of the Societe d'Etudes and, in general, all expenses whatsoever. 
 
 Consequently the Societe (d'Etudes) shall not be obliged to pay any expenses 
 from its own funds.
 
 140 CHINA TREATIES AND AGREEMENTS 
 
 It shall endeavor to complete the construction of the line within three years. 
 
 Article 20. — On the Hankow-Sinyang section and eventually on the other 
 sections between Paoting and Sinyang, the Russo-Chinese Bank in the first place and 
 afterwards the bank designated by common accord by the Chinese Railway Com- 
 pany and the Societe d'Etudes, shall deposit each month with the Chinese Rail- 
 way Company, out of the available funds in their hands, the amounts necessary 
 to settle the payments for the ensuing month, according to the estimates pre- 
 pared by the Societe d'Etudes or its delegates. 
 
 A first transfer equivalent to the estimated value of the work already exe- 
 cuted on the Hankow-Sinyang section shall be made as a first credit. 
 
 The price paid for the above mentioned bonds being exclusively affected 
 to the construction of the line from Hankow to Paoting, the Russo-Chinese Bank 
 and the bank referred to in the first paragraph of the present article, would have 
 the right not to pay the funds in case one of their payments were diverted from 
 the purpose stipulated, as well as in case the representatives of the Societe 
 d'Etudes were not empowered by the Chinese Railway Company to continue the 
 management of the construction works with which this company is exclusively 
 entrusted. 
 
 The balance, if there be one, shall be held subject to the order of the Chinese 
 Railway Company. 
 
 Article 21. — The Chinese Government cedes to the Societe d'Etudes an 
 option till December 31, 1901, to purchase the surplus of the loan, to wit : 73,500,- 
 000 francs at 90% nominal, plus the accrued fraction due on the coupon. 
 
 This option can be availed of one or several times, without regard to the 
 amortizations made, but each notice must be for a sum not less than 25,000,000 
 francs net. 
 
 The delivery of the bonds taken on the options shall be to the Russo- 
 Chinese Bank in Paris ; the final bonds shall be delivered within a month dating 
 from the telegraphic notification to the Management of the Chinese Railway 
 Company. 
 
 The price of these bonds shall be deposited in the bank designated, by com- 
 mon accord, by the Chinese Railway Company and the Societe d'Etudes, and it 
 shall not surrender them except under the conditions stipulated in the above 
 Article 20. 
 
 Article 22. — If the Societe d'Etudes takes advantage of the right granted 
 it to purchase all or part of the bonds on which it holds an option, it shall each 
 time confer with the Chinese Railway Company to determine upon the sections 
 (of line) to be built with its new fvmds. 
 
 Article 23 — The surveys of the line, dating from the signing of the present 
 contract, are to be made at the expense of the Chinese Railway Company ; the 
 Hankow-Sinyang sections shall first be surveyed, and then successively each of 
 the other sections, for building which an agreement may be had before the 
 Societe d'Etudes avails itself of the right of option conceded it by Article 21. 
 
 It is henceforth understood that the section to be built with the funds 
 derived from the first option shall be the one from Paoting towards the Yellow 
 River, and the survey shall be begun during the first year.
 
 NUMBER 1898/13: JUNE 26, 1898 141 
 
 Article 24. — The Societe d'Etudes reserves the right to make one or more 
 issues, by pubHc subscription or otherwise, of all or any part of the bonds whether 
 bought outright (achetees ferme) or included in the option. 
 
 Should the issue be by public subscription, the Societe d'Etudes shall have 
 the right to include in the total offered for subscription, exclusive of the 78,000 
 bonds taken outright (prises ferme), all or any part of the bonds covered by the 
 option, without on that account being committed to take outright (prendre 
 ferme) any part whatever of the bonds covered by the options. 
 
 It shall be allowed fifteen days, counting from the closing of the public 
 subscription, to inform by registered telegram addressed to His Excellency Sheng, 
 Director General of the Chinese Railway Company at Shanghai, the number 
 of bonds it has taken, and that, at the price and under the conditions above 
 specified. 
 
 The payment and the delivery of the bonds taken by the Societe d'Etudes 
 following the public subscription shall take place under the conditions specified 
 in the above mentioned articles. 
 
 Article 25. — The present contract shall only be binding on the Societe 
 d'Etudes inasmuch as it shall have the promise that, with the exception of what 
 can be supplied by the Hanyang works, all the materials and supplies necessary 
 for the construction and working of the railroad from Lu-kou-chiao (Peking) to 
 Hankow will be ordered from the Societe d'Etudes, which will fill the orders 
 under the best possible terms. 
 
 Exception is made for the material necessary for the equipment (armement) 
 of the line from Lu-kou-chiao to Paoting, as this material is almost entirely 
 ready. 
 
 Compliance with the provisions of this clause by the Chinese Railway Com- 
 pany shall result from the ordering of material for each of the sections under- 
 taken. 
 
 Material ordered from the Societe d'Etudes shall be exempt from all customs 
 and likin duties on entering or crossing Chinese territory. 
 
 If this franchise is not made good before the expiration of the month fol- 
 lowing the date on which the Belgian Government shall have notified the Societe 
 Beige of the receipt of the notifications stipulated in Article 29, it (the Societe 
 d'Etudes) reserves the right not to hold itself bound. 
 
 It reserves the same right and within the same time if extraordinary events 
 should arise, as for instance war, or if the French Debt (rente francaisc) should 
 fall below par. 
 
 If. on its side, the Societe Beige should not keep the terms of the present 
 contract, it shall be annulled ; the Chinese Railway Company shall be free to 
 enter into contract with whomsoever it may see fit, and to dispense with the 
 services of the Engineer-in-chief. 
 
 Article 26. — In case of controversies or dififerences between the Societe 
 d'Etudes or its representatives and the Imperial Chinese Government or the 
 Chinese Railway Company, these controversies or differences shall be submitted 
 to the judgment of a member of the Tsung-li-Yamen and the Belgian Minister in 
 China.
 
 142 CHINA TREATIES AND AGREEMENTS 
 
 In case of disagreement between these latter, the Tsung-li-Yamen and the 
 Belgian Minister shall designate an arbitrator who shall decide finally. 
 
 Article 27- — As guarantee for the financial execution of the present con- 
 tract, the Societe d'Etudes has already deposited in the Russo-Chinese Bank 
 20,000 pounds sterling as security. 
 
 It shall take full possession of this sum as soon as it shall have fulfilled 
 the provisions stipulated in the first two paragraphs of article 18 here above. 
 
 It is understood that the payment of 8,600,000 francs to the Russo-Chinese 
 Bank at Shanghai must be made within the month following the date of the 
 signing of the present contract. 
 
 Article 28. — The Tsung-li-Yamen shall be bound in case the Belgian Min- 
 ister at Peking request it to give cognizance of the title to the Minister of the 
 foreign country, indicated by him, as subscriber to the issue of stock [i.e., Si le 
 Ministre de Belgiqne a Pekin en faisait la dcmande au Tsitng-li-Yatnen, celui-ci, 
 serait tenit de notificr le litre au Ministre du pays etranger qn'il lui de signer atit'j 
 conime prenant part a la souscription des titres.] 
 
 Article 29. — The present contract is made in triplicate, one copy for the 
 Chinese Government, one for the Chinese Railway Company and the third for the 
 Societe d'Etudes des Chemins de fer en Chine. 
 
 In case of doubt or disagreement, the French text alone shall be used to 
 interpret the contract. 
 
 The present contract must be submitted through the proper channel for 
 Imperial Sanction, and when said Sanction has been obtained, the Tsung-li 
 Yamen must advise the Belgian Representative at Peking by official dispatch 
 and eventually the Representative in Peking of the foreign country to whom it 
 may give cognizance of the title (le Representant a Pekin du pays etranger aiiqucl 
 le litre sera notifie). These formalities shall be complied with within the month 
 following the signing of the contract. The provisions of the contract signed at 
 Wuchang the 27th May, 1897, and of the protocol signed the 21st July, 1897, 
 which do not conflict with the present contract, especially those of Article 14 
 of the Wuchang contract and Article 2 of the Shanghai protocol, are and remain 
 in force. The Societe Generale of Brussels and the Russo-Chinese Bank are 
 parties to the present contract, and they, after having examined the preceding 
 contract, declare that they, as far as necessary, accept the duties imposed- Ac- 
 cording to Article 14 of the above mentioned Wuchang contract, the Chinese 
 Railway Company will only recognize the Societe Beige as contracting party. 
 
 Done at Shanghai, the twenty-sixth day of the month of June, one thou- 
 sand eight hundred and ninety-eight. 
 
 The Engineer representing the Societe d'Etudes 
 des Chemins de fer en Chine, 
 
 The Director General of the Chinese 
 Raihvay Company, 
 
 The Representatives of the Imperial Chinese Government : 
 The Viceroy of Hupeh. The Viceroy of Chihli.
 
 NUMBER 1898/13: JUNE 26, 1898 143 
 
 OPERATING CONTRACT. 
 BETWEEN THE UNDERSIGNED: 
 
 1°. The Imperial Chinese Government, represented by Their Excellencies, 
 the Viceroys of Chihli and of Hupeh ; 
 
 2°. The Chinese Raihvay Company, represented by His Excellency Sheng 
 Hsiian-huai, its Director General, Office of the Company at Shanghai; 
 
 And the Societe d'Etudes des Chemins de fcr en Chine, whose office is at 
 Brussels, 
 
 Has been agreed as follows: 
 
 Article 1. — The Chinese Railway Company, in accordance with the Imperial 
 Chinese Government, entrusts the Societe d'Etudes des Chemins de fer en Chine, 
 which shall appoint representatives for that purpose, with the direction, adminis- 
 tration, and operating of the line from Hankow to Lu-kou-chiao (Peking), for 
 which it holds a concession, under the terms of an edict of His Majesty the 
 Emperor of China dated October 20, 1896, and of which a copy is annexed to the 
 present contract. 
 
 Article 2. — The Societe d'Etudes shall take over the working of the line 
 as soon as each section is completed, following final acceptance by the Imperial 
 Administration of Chinese Railways. Each section must be completely and 
 previously equipped and provided with all the material necessary for its working, 
 as well as with the supplies of tools, furniture and a fund for running ex- 
 penses. The Societe d'Etudes or the representatives it shall appoint under the 
 provisions of Article 1, shall organize the various services, shall have the right 
 to hire the personnel, which it shall have absolute right to dismiss, or disband, 
 and to fix its salaries according to a fixed schedule previously communicated to 
 the Director General of the Chinese Railway Company. It shall make all pur- 
 chases necessary for operating, maintaining or repairing the road ; it shall fix 
 the schedule of rates in the terms of concession contracts, collect revenues of all 
 kinds and pay the operating and management expenses of the Company. The 
 foregoing measures, taken for the purpose of operating the line, shall be sub- 
 mitted, for consultative purposes, to the Director General of Chinese Railways. 
 
 The Chinese Railway Company, which will appoint delegates for that pur- 
 pose, shall have absolute right of control over the receipts and expenses. 
 
 The purchase of all new material or works for the improvement or extension 
 of the regular road, or of stations, which may be found necessary after the 
 opening of each section of the line to traffic, shall be at the sole expense of the 
 Chinese Railway Company. As far as possible the supplies necessary for the 
 maintenance and repairing of the road shall be ordered from the works and 
 mines under the control of the Director General of the Chinese Railway 
 Company. 
 
 Article 3. — In case of war or revolution in China, the transportation of 
 troops, munitions and of the supplies of the Chinese army shall have right of way 
 over all commercial transportation. The rate for such transportation shall be 50 
 per cent of the tariff ; and it shall be carried according to the instructions of the
 
 144 CHINA TREATIES AND AGREEMENTS 
 
 Director General of the Chinese Railway Company. The transportation of any- 
 thing of nature to injure the Imperial Chinese Government shall moreover be 
 forbidden. 
 
 Article 4. — Out of the receipts from operation available, after payment of all 
 expenses, the Societe d'Etudes shall retain the necessary sum to insure the pay- 
 ment, every six months, and at least three months before its date of payment, 
 of the service of the loan of 112,500,000 francs contracted by the Imperial 
 Chinese Government. 
 
 This reserve shall be made as long as said loan is not entirely paid ofif. 
 
 The amount of this reserve shall be deposited monthly with the Societe 
 Generale Beige pour favoriser ITndustrie Nationale, or with the Company 
 designated by it. The latter shall convert into gold on the best terms procurable, 
 the sums paid to it for the service of the loan. 
 
 When, by means of the sums thus paid in, the service in gold of the loan 
 shall have been insured, the Societe d'Etudes shall deduct 10% of the surplus, 
 which shall be applied to the creation of a reserve fund for rebuilding or mak- 
 ing extraordinary repairs necessary to insure the working of the lines. 
 
 It shall then pay the balance remaining available out of the operating 
 revenues to the Chinese Railway Company. 
 
 Article 5. — The duration of the present operating contract is fixed at thirty 
 years dating from the signing of the contract. 
 
 However, this period would be fully entitled to extension in case the loan 
 of 112,500,000 francs should not at that time be wholly paid off; this ex- 
 tension would continue as long as the complete amortization had not been 
 made. But if the refunding of the loan should be made before the dates on 
 which they fall due, the present working contract will be annulled from the date 
 of the total refunding of the loan. 
 
 Article 6. — During the entire period of the working of the line by the 
 Societe Beige, the Chinese Railway Company grants it 20 % of the net profits 
 of the railroad from Peking to Hankow, as agreed upon by mutual consent, after 
 the closing of each fiscal term (exercice), taking into account, naturally, the 
 sums necessary for the service of the interest and the amortization of the loans. 
 
 Article 7. — In case of contentions or disagreement between the Societe 
 d'Etudes and the Management of the Chinese Railway or the Imperial Chinese 
 Government, said contentions and disagreements shall be settled as specified in 
 Article 26 of the loan contract. 
 
 Article 8. — If the revenues from operating the lines are not sufficient to 
 cover the expenses, the Chinese Railway Company must supply the Societe 
 d'Etudes with the necessary means to insure the operating of the lines under 
 normal conditions. 
 
 Article 9. — All materials and supplies needed by the Societe d'Etudes for 
 the working of the line, as well as for the maintenance and repair of the line, 
 shall, when imported from abroad, be exempt from all customs or Hkin dues. 
 
 Article 10. — The present contract is made in triplicate ; one copy for the 
 Imperial Chinese Government, one for the Chinese Railway Company, and the 
 third for the Societe d'Etudes des Chemins de fer en Chine.
 
 NUMBER 1898/13: JUNE 26, 1898: NOTE 145 
 
 In case of doubt or disagreement the French text shall alone be accepted 
 for the interpretation of the contract. 
 
 The present contract must be submitted through the proper channel for 
 Imperial sanction, and, when said sanction shall have been obtained, the Tsung-li- 
 Yamen must advise, by official dispatch, the Belgian Representative at Peking 
 and eventually the representative at Peking of the foreign Government to which 
 the title may be officially notified (auquel le litre sera notifie). 
 
 Done in Shanghai, the twenty-sixth of the month of June eighteen hundred 
 ninety-eight. 
 
 The Engineer representing the Societe d'Etudes des Chemins dc fer en Chine, 
 (s.) Hubert. 
 
 The Director-General of the Chinese Railway Company, 
 
 (s.) Sheng Hsuan-Huai. 
 
 Seen for authentication: Witnesses: 
 
 (s.) Frere, (s.) Hu. 
 
 Belgian Consul. (s.) Ko. 
 
 (Official seal of the Chinese Railway Administration.) 
 
 The Representatives of the Imperial Chinese Government : 
 
 The Viceroy of Hupeh. The Viceroy of Chihli. 
 
 Note. 
 
 In Rockhill, pp. 225, 230, are also given the following translations of (I) the provisional 
 loan contract, Alay 27, 1897, and (II) the additional protocol, July 27, 1897:— 
 
 (I) 
 Loan for the Railway from Lu-kou-chiao to Hankow. — May 27, 1898. 
 
 (Provisional) contract between the Chinese Railway Company and the Societe financiere 
 et industrielle beige en Chine, the following has been agreed upon : 
 
 " Article 1. — The Chinese Government has granted a concession for the railway line 
 from Lu-kou-chiao, near the city of Peking, to Hankow, to the Chinese Railway Company 
 which has already a capital of thirteen millions of taels. 
 
 "The said Company is authorized by the Imperial Government to negotiate a loan of 
 four million five hundred thousand pounds sterling to be applied solely to the building 
 and working of the line from Lu-kou-chiao to Hankow; the provisions hereafter set forth 
 must be observed by the Chinese Railway Company as well as by the Societe financiere et 
 industrielle beige en Chine. 
 
 " Article 2. — Said loan, of a nominal value of four million five hundred thousand 
 pounds sterling, with ten per cent discount, or a real value of four million fifty thousand 
 pounds sterling, is agreed to by the Societe financiere et industrielle beige en Chine. It 
 will be paid in four installments of one million twelve thousand five hundred pounds sterl- 
 ing, representing the real value, and at the following dates : 
 
 "First payment: January 3, 1898, 
 
 "Second paj-ment : July 3, 1898, 
 
 " Third payment : January 3, 1899, 
 
 " Fourth payment : July 3, 1899. 
 
 " These payments will be made into a Belgian bank of Brussels, chosen by the Chinese 
 Railway Company which is at liberty to transfer this sum as it sees fit.
 
 146 CHINA TREATIES AND AGREEMENTS 
 
 " Article 3. — The loan agreed to by the Societe financiere et industrielle beige en Chine, 
 shall bear annual interest of four per cent. Said interest shall be paid in January and 
 July of each year. . . , , r 
 
 " Article 4. — The Chinese Railway Company agrees to reimburse the loan provided for 
 in the present convention, after the first ten years, in twenty annuities of two hundred and 
 twenty-five thousand pounds sterling, payable yearly after January 3, 1909. 
 
 " The payment of interest and annuities will be made in China, into a bank designated 
 by the Societe financiere et industrielle beige en Chine, and in conformity with the table 
 of amortization annexed to the present convention. 
 
 " Article 5. — With the authorization of the Imperial Chinese Government, the payment 
 of interest and the refunding of the loan will be guaranteed by the railway line from 
 Lu-kou-chiao to Hankow as also by all the property and material connected therewith. 
 
 " It is understood that the guarantees given for the loan provided for in the present 
 convention, are reserved for the subscribers to the present loan and that the guarantees 
 given for subsequent loans can nowise prejudice that now granted the Societe financiere 
 et industrielle beige en Chine. 
 
 " Article 6. — Except in case of force majeure, the work of building must be finished and 
 the railway from Lu-kou-chiao to Hankow put in operation before the expiration of five 
 years, that is to say of 1903. 
 
 " Article 7. — The contracting parties may not invoke a state of war existing in any 
 part of the world not to keep their engagements. If said state of war should exist in 
 China, the Belgian staff shall remain in the employ of the Chinese Railway Company, unless 
 its assistance is asked for by the Imperial Chinese Government. 
 
 "Article 8. — The Societe financiere et industrielle beige en Chine, shall choose an ex- 
 perienced, reliable and honest engineer to represent it and who shall be charged with 
 controlling the technical work ; he shall, furthermore, be charged with drawing up plans 
 and carrying them out under the exclusive authority of the General Director of the 
 Chinese Railway Company, under whose direct orders he shall be. This Controlling 
 Engineer will be under the absolute direction of the General Director of the Chinese 
 Railway Company. The Chinese Railway Company reserves all rights of management 
 of the railway. It will be responsible until the expiring of the present contract for the 
 salary of this Controlling Engineer as fixed upon in agreement with the Societe financiere 
 et industrielle beige en Chine. 
 
 " Article 9. — The foreign staff needed by the Chinese Railway Company for building 
 and operating the line, during the life of the present contract, shall be chosen and presented 
 by the technical Controlling Engineer representing the Societe financiere et industrielle beige 
 en Chine ; it will be appointed by decision of the Director General of the Chinese Railway 
 Company. The Chinese Railway Company is at liberty to settle for itself as regards its 
 foreign staff, the form of engagement to be used, adopting long or short term contracts. 
 
 " All the staff employed by the Chinese Railway Company and attached to the working of 
 the line, with the exception of the Controlling Engineer, will be required to obey the 
 Chinese delegates of the Director General of the Company and work harmoniously with 
 all the Chinese and foreign staff of other nationalities, chosen and appointed by the 
 Director General to any position, and this in the interest of the Railway Company 
 
 " If disputes arise between European and Chinese agents, they shall be impartially 
 settled by the Director General, aided by the representative of the Belgian Company. 
 
 " The Director General of Chinese Railways shall always be at liberty to designate 
 foreigners of whatever nationality to inspect the works under way ; the Belgian Company 
 shall never have the right to prevent it. 
 
 " Nevertheless, the duty of the persons designated shall only consist in inspecting works 
 and they shall never have the right to give orders to the staff employed in building and 
 working the line. Such persons may likewise make reports to the Director General of 
 Chinese Railways on the results of their inspections. 
 
 " The staff employed in building and operating shall furnish all necessary facilities to 
 foreigners entrusted with an inspection, and that in the interest of the Chinese Railway 
 Company. 
 
 " Article 10. — In case one of the foreign employes referred to in articles 8 and 9, irre- 
 spective of duties, should through carelessness, incapacity, disobedience of the orders of the 
 Director General, insubordination, drunkenness, or bad conduct, be held to be unfit for the 
 service, the Director General shall have the right to cancel the contract and the dismissed 
 agent shall leave at once the service of the Chinese Railway Company. 
 
 "Article 11. — The materials necessary for the Chinese Railway Company, exclusive of 
 all that can be manufactured in China or of that that can be manufactured there later on, 
 shall be bought abroad. 
 
 " The Director General shall decide, in consultation with the Controlling Engineer, the 
 amount of materials to ask bids on; said quantity, however, shall never exceed fifty per 
 cent of that required. 
 
 " The award shall be made without any special favor for the Societe financiere et 
 industrielle beige en Chine. If this Company agrees to furnish at per feet, equality of con-
 
 NUMBER 1898/13: JUNE 26, 1898: NOTE 147 
 
 ditions as to quality, price and carriage with those secured by the Chinese Railway Company, 
 the Belgian Company shall have the furnishing of said materials; but if said Company is 
 unable to supply under the above-mentioned conditions, the Chinese Railway Company will 
 make its purchase where it likes ; the Belgian Company shall in no way prevent it so doing. 
 
 "As to the materials which cannot be divided in accordance with paragraph 2 of the 
 present article (50 p. c. maximum asked for), if the Belgian Company agrees to furnish at 
 perfect equality of conditions as to quality, price and carriage with those secured by the 
 Chinese Railway Company, the furnishing shall be granted the Belgian Company ; in the 
 contrary case, the Chinese Railway Company will buy where it chooses ; the Belgian Com- 
 pany shall in no way prevent it so doing. 
 
 "The Chinese Railway Company reserves to itself the right to use all means it may 
 deem good to inform itself as to the best prices for supplying all its materials, without the 
 Belgian Company interfering in any way with its inquiries. 
 
 " Article 12. — As a premium, the Chinese Railway Company will pay the Belgian Com- 
 pany a sum of five per cent, on the net value, less the cost of transportation, insurance, etc., 
 on all materials bought abroad. The materials for the branch from Lu-kou-chiao to Paoting 
 is not subject to the premium provided for in the present article because nearly the whole 
 amount of said materials has already been bought. 
 
 " Article 13. — The taking over of material bought in Belgium will be in the factories 
 making it and by a commission consisting of a delegate of the Chinese Railway Company 
 and of a delegate of the Societe financiere et industrielle beige en Chine ; in case of disagree- 
 ment, these two delegates shall choose an umpire to decide the question. The expenses of the 
 delegates shall be borne by the Company designating them. The expense of the umpire shall 
 be borne by the losing party. 
 
 " Article 14. — The Societe financiere et industrielle beige en Chine and its chosen agent, 
 shall deal with no other persons or accept any other authority than the Chinese Railway 
 Company. The latter, on its side, shall only recognize the Societe financiere et industrielle 
 beige en Chine, established at Brussels, in 1897, to the exclusion of every other company. 
 
 " During the life of the present contract, the Belgian Company shall in no wise be 
 managed by manufacturers or subjects of other countries, and the Belgian Company shall 
 not be at liberty to transfer this contract to any other country, nor to the subjects of 
 another country. 
 
 "Article 15. — If the provisions set forth in the present convention are regularly adhered 
 to by the Chinese Railway Company, the Societe financiere et industrielle beige en Chine 
 agrees, in case of necessity, to study means, in conjunction with the said Company, to secure 
 to it special facilities for extendinig the terms of paying oflf the annuities and interest. 
 
 " In case extensions are granted, the amounts which should have been refunded shall 
 bear the same interest as that provided for the loan in the present convention. 
 
 " If the Chinese Railway Company wishes to refund the whole loan before the date on 
 which it falls due, it will be at liberty to do so and the interest will cease from the day of 
 such refunding, and the contract shall be declared void from that day. 
 
 " Article 16. — All the above provisions are agreed upon in the provisional contract made 
 this day; this provisional convention is signed by the Director General of the Chinese Rail- 
 way Company on the one part, and stamped with his seal, and, on the other part, by the 
 two representatives of the Societe financiere et industrielle beige en Chine, and viseed for 
 authentication by the Consul of Belgium at Hankow. 
 
 " Within two months from the date of signing of the provisional contract, the Chinese 
 Railway Company and the Societe financiere et industrielle beige en Chine, will sign again 
 so as to confirm the provisional contract which shall then become final. 
 
 " These formalities complied with, the contract shall receive the seals of Their Excel- 
 lencies the Viceroys of Pechihli and of Hu-Kwang, and also that of H. Ex. the Minister 
 of Belgium, at Peking. 
 
 " Article 17. — The present contract has been drawn up in the French and Chinese lan- 
 guages ; when necessity arises for consulting the contract, the two texts, absolutely identical, 
 shall both be authoritative. 
 
 " Done at Wuchang, the 27 of the month of May, 1897. 
 
 " The Chinese Raihuay Company being represented by H. Ex. Sheng-Hsuan-Huai, its 
 Director General. 
 
 " The Societe financiere et industrielle beige en Chine being represented by MM. Masy 
 and Rizzardi."
 
 148 CHINA TREATIES AND AGREEMENTS 
 
 (II) 
 
 Additional Protocol to the Contract relating to the Loan for Four Million Five Hun- 
 dred Thousand Pounds Sterling for the Railway from Hankow to Lu-kou-chiao. — 
 July 27, 1897. 
 
 " A provisional contract was made, at Wuchang, the twenty-seventh day of the month of 
 May one thousand eight hundred and ninety seven (twenty-sixth day, fourth month, twenty- 
 third year of the present reign) relating to the loan for the railway from Lu-kou-chiao to 
 Hankow. 
 
 " Between 
 " The General Company of Chinese Railways, established by Imperial decree of the twentieth 
 
 October one thousand eight hundred and ninety six (fourteenth day, ninth month, 
 
 twenty-second year of the present reign), and to which was granted, by the same decree, 
 
 the concession for the said line, 
 of the first part, 
 " And the Belgian Company, established by authentic act dated the third March one thousand 
 
 eight hundred and ninety seven, published in the Alonitctir Beige (official newspaper) of 
 
 the twenty-second, twenty-third March one thousand eight hundred and ninety-seven, 
 of the second part. 
 
 " This contract was authorized by Imperial decree of the twenty-fifth May one thousand 
 eight hundred and ninety-seven (twenty-fourth day, fourth month, twenty-third year of the 
 present reign). The decree of that date will be communicated to H. E. the Minister of 
 Belgium at Peking through the Tsung-li Yamen. 
 
 " The Chinese Railway Company, represented by H. E. Sheng, its Director General, 
 duly authorized for that purpose by the above mentioned decree and the Belgian Company, 
 represented by M. Alexis Dufourny, Chief Engineer, Director of the Fonts et Chaussees at 
 Brussels, and by M. Edouard Walin, First class Engineer of the Fonts et Chaussees, 
 Director of the intercommunal waterworks Company at Brussels, duly authorized, on their 
 side, by the Belgian Company, authority confirmed by a telegram of H. E. the Belgian Minis- 
 ter at Peking, sign anew, in the name of the interested parties, the provisional contract 
 according to the terms of article sixteen of the latter, so as to confirm it and make it final, 
 and agree furthermore on the following : 
 
 " Articxe I. — The above mentioned Belgian Company will make a complete study of the 
 line from Hankow to Lu-kou-chiao for the Chinese Railway Company ; it undertakes to 
 make the surveys, levelling, longitudinal and sectional cuts, to make all plans, drafts of 
 masonry works, bridges, buildings, shops, stations and outhouses of whatever nature, as also 
 the measurements and specifications, all charges for which are included in the forty- 
 hundredths per cent, of additional interest mentioned hereafter in Article III. 
 
 ■' A similar study will be made for the rolling and fixed stock. But in conformity 
 with article eight of the contract, the drafts and plans shall be successively submitted 
 to the approval of the General Director. It is well understood that all these works are to 
 be carefully done, without any omission ; they are not to occasion any additional expenses. 
 
 " Field work for the carrying out of the works must be finished within a year from the 
 date of the conclusion of the last formalities of approval of the contract. They must' be 
 carried out with the necessary activity to permit of the embankment work being begun 
 within six months of the above mentioned date. 
 
 " Article II. — The Belgian Company surrenders its right to a premium on materials, 
 conferred on it by article twelve of the contract, and therefore said article is considered 
 as void. 
 
 " Article III. — On the other hand, as compensation for the concessions mentioned above 
 in Articles I and II, and to guarantee its expenses of organization, mission abroad and 
 issuing (the loan), inclusive of all disbursements whatsoever relating thereto, and finally its 
 general expenses during the whole time of the loan, the Belgian Company shall receive 
 an increase of forty-hundredths per cent (four per thousand) on the rate of interest 
 provided for in article three of the contract. This additional interest of four per thou- 
 sand will be paid in the same manner as the yearly interest of four per cent; consequently 
 the rate of interest of four per cent, together with all the general expenses, is raised, in effect, 
 to four and forty per cent (4.40 p. c). No charge whatsoever in excess of this rate of 
 interest shall be asked for. 
 
 " Article TV. — The payments provided for in article two of the contract shall be made 
 into the Belgian Bank at Brussels, designated by the name of " Societe Generale pour 
 favoriser ITndustrie Nationale," and the Chinese Railway Company will transfer (thereto) 
 the simis paid into the Commercial Bank of China at Shanghai, organized by imperial decree 
 under date of the twelfth November one thousand eight hundred and ninety-six (eighth 
 day, tenth month, twenty-second year of the present reign). The payments of interest and 
 annuities will be made in pounds sterling into the above mentioned Commercial Bank. 
 
 " Article V. — It is understood that the guarantee of the railway line, referred to in 
 article five of the contract, has absolutely priority of rank. 
 
 " Article VI. — The present protocol shall be stamped with the seal of Their Excellencies
 
 NUMBER 1898/13: JUNE 26, 1898: NOTE 149 
 
 the Viceroys of Pechihli and of Hu-Kwang, and also with that of H. E. the Minister of 
 Belgium at Peking. 
 
 " The present protocol has been made out in four copies in the French and Chinese lan- 
 guages ; both versions are equally authoritative. 
 
 " Done at Shanghai, the twenty-seventh of July one thousand eight hundred and ninety- 
 seven. 
 
 " For the Chinese Railway Company, 
 
 " The Director General, 
 
 " Sheng. 
 " For the Belgian Company, 
 
 " The first class Engineer of Fonts et Chaussees, 
 Director of the Intercommunal Waterworks Company, 
 
 " Walin. 
 " The Chief Engineer, Director of Fonts et Chaussees, 
 
 " DUFOURNY." 
 
 For the French texts of these agreements, see Wang, pp. 13, 35. 
 
 The following correspondence is also attached to the texts of the contracts as printed in 
 Rockhill, p. 246 : 
 
 "letter of his excellency sheng relative to the arbitration clause. 
 
 " Imperial Administration of Chinese Railways, 
 
 " Shanghai, June 26, 1898. 
 " As the contentions and disagreements referred to in Article 26 of the loan contract and 
 in Article 7 of the operating contract relating to the Railway from Hankow to Peking, may 
 relate to interest and the amortization of the loan, the undersigned Sheng Hsiian-huai, 
 Director General of the Chinese Railway Company, duly authorized thereto by the Tsung-Ii 
 Yamen. declares, from the present date, that the arbitrator to judge finally all such con- 
 tentions and disagreements, will be the Minister at Peking of the foreign country which 
 shall have taken part in the subscription for the loan. 
 
 [Official Seal of the Chinese [s] " Sheng Hsuan-Huai, 
 
 Railway Administration.] "Director General of Railways." 
 
 " letter of his excellency sheng relative to the preferential right to the 
 
 hankow-canton line. 
 
 " Imperial Administration of Chinese Railways, 
 
 "Shanghai, June 26, 1898. 
 " The undersigned, Sheng Hsiian-huai, Director General of the Chinese Railway Com- 
 pany, declares that he reserves to the Societe d'Etudes des Chemins de fer en Chine, a 
 preferential right as regards the railway to be built from Hankow to Canton, in case the 
 provisional contract, as drawn up in Washington between His Excellency Sheng and the 
 American Syndicate (Carey-Washburn), should not become a definitive one. 
 
 " It is well understood that this preferential right is granted to the Societe d'Etudes des 
 Chemins de fer en Chine, under the terms of Article 14 of the Wuchang contract, which 
 formally prohibits the Societe Beige d'Etudes des Chemins de fer en Chine from trans- 
 ferring any of its rights to any company of foreign nationality. 
 
 [Official seal of the Chinese [s] " Sheng Hsuan-Huai, 
 
 Railway Administration.] "Director General of Railways." 
 
 Rockhill, p. 247, notes that in connection with the letter of Sheng Hsiian-huai given above 
 and relating to the preferential right of the Belgian Syndicate to build the Hankow-Canton 
 railway in case the contract made with the American China Development Company should 
 not become definitive, the following dispatch from the British Charge d'Affaires in Peking 
 to Lord Salisbury, published in the British Parliamentary Blue Book, China, No. 1 (1900), 
 pp. 155-156, is of interest. 
 
 " Mr. Bax-Ironside to the Marquess of Salisbury. 
 " [Extract.] 
 
 " Peking, May 15, 1899. 
 " I had the honour to receive a telegram from your Lordship on the 28th ultimo, in- 
 forming me that the prospectus issued by the Belgian Syndicate for the Peking-Hankow 
 Railway Loan states that the Syndicate have a preferential right to the Hankow-Canton line 
 in the event of the Contract with the American Syndicate not being finally arranged. 
 
 "Your Lordship also inquired whether the Chinese Government had ever communicated 
 the text of the Peking-Hankow Agreement in accordance with an undertaking which they 
 had previously given us.
 
 150 CHINA TREATIES AND AGREEMENTS 
 
 " At an interview which had already been arranged for the following day with the 
 Tsung-li Yamen, I took the opportunity to inquire whether the statement issued in the 
 Belgian prospectus was a correct one. 
 
 " The Ministers had no knowledge of any such arrangement. 
 
 " I pointed out that, according to published reports, the American Syndicate had a 
 preferential right to the Peking-Hankow line if negotiations with the Belgian Syndicate fell 
 through. 
 
 " The Ministers expressed themselves equally ignorant of this arrangement. 
 
 " On the following day I sent two members of the staff to carefully compare our copy 
 of the Chinese text with the original one in the possession of the Tsung-li Yamen, with 
 the result that the comparison showed no material difference. 
 
 " The Secretaries of the Yamen stated that they had no copy of the French text which 
 is the standard in case of dispute. 
 
 " On the 6th instant I addressed an official note to the Tsung-li Yamen requesting to be 
 informed whether such an arrangement as stated in the prospectus had been made, and their 
 Excellencies replied in the negative. . , . , , 
 
 " Copy of my note, together with reply thereto, are herewith inclosed. 
 
 " [Inclosure 1.] 
 " Mr. Bax-Ironside to the Tsung-li-Yamen. 
 
 " Peking, May 6, 1899. 
 
 " MM. LES MiNISTRES, 
 
 " On the 29th April I called at the Yamen and referred to the Agreement made on the 
 26th June last year with the Belgian Syndicate for the Peking-Hankow Railway. I men- 
 tioned that in the prospectus issued by the Belgian Syndicate it was stated that China had 
 promised that if the American Agreement for the Hankow-Canton line fell through, the 
 Belgian Syndicate would be intrusted with the construction of that line. 
 
 " Your Excellencies informed me that there was no such stipulation in the Agreement 
 of twenty-nine Articles, or the Supplementary Agreement of ten Articles made with the 
 Belgian Syndicate for the Peking-Hankow line. 
 
 " I have heard, however, that the promise referred to was given subsequently to the 
 settlement of the aforesaid Agreements, and I have the honour to request your Highness and 
 your Excellencies to inform me whether such an Agreement has been made. 
 
 " iSigned) H. O. Bax-Ironside. 
 
 " [Inclosure 2.] 
 "The Tsung-li Yamen to Mr. Bax-Ironside. 
 " [Translation.] 
 «' Sjp^ " Peking, May 10. 1899. 
 
 " On the 6th instant we received your letter to the effect that in the prospectus issued 
 by the Belgian Syndicate it is stated that China has promised that in the event of the aban- 
 donment of the American Contract for the Hankow-Canton Railway the Belgian Syndicate 
 will be intrusted with the construction of that line. You added that you had heard that this 
 promise was given subsequently to the settlement of the Belgian Agreement, and you inquired 
 whether such an arrangement had been made. 
 
 " We have the honour to inform you that neither the Belgian Agreement in twenty-nine 
 clauses nor the Supplementary Agreement in ten clauses contains any such stipulation, and 
 that there has been no subsequent arrangement of any kind. 
 
 " We have, &c. , , . . . , , x „ 
 
 " (Cards of their Excellencies the Ministers inclosed.) 
 
 In the " Memorandum on railway and mining concessions secured by France and 
 French companies," in Documents Dit^lomatiques, Chine, fuin-Octobre, 1900, p. 23, occurs 
 the following comment (as translated in Rockhill, p. 402) in regard to the Peking- Hankow 
 Railway concession : 
 
 "The Societe d'etudes des chemins de fer en Chine, a Franco-Belgian syndicate in 
 which the French element is represented by the big financial establishments of Pans and 
 the big metallurgical industries of France has received a concession for a railway from 
 Peking to Hankow. The two contracts relating to this line, for a loan and for operating, 
 are dated the 26 June 1898. The line will have an extension of about 1,250 kilometers, it 
 is being built and will be operated by the Societe d'etudes for the mutual profit and equal 
 advantage of the French and Belgian parties. , , , t- i. 
 
 "The loan to be floated is 112.500,000 francs. It has been agreed that the French 
 financial share shall be three fifths, that of Belgium two fifths. A first issue of 133,000 
 bonds of 500 francs 5% was made at Paris and Brussels on April 19, 1899. 226,800 bonds
 
 NUMBER 1898/13: JUNE 26, 1898: NOTE 151 
 
 were subscribed for, 190,800 at Paris and 36,000 at Brussels. The product of this first 
 issue will suffice to build 500 kilometers of which 300 in the north and 200 in the south, 
 and which will be soon finished. 150 kilometers in the north are already being operated. 
 The building of the remainder will be seen to by a second issue as soon as circumstances 
 permit of it. 
 
 " The Societe d'etudes has secured the right to work mines along the line and to make, 
 for the use of these, branch lines. 
 
 " A branch company has been organized under the name of ' Societe franco-beige de 
 recherches minieres en Chine ' to work these mines." 
 
 On August 13, 1905, was concluded a Contract for a supplementary loan for the purpose 
 of completing the Peking-Hankow Railway, of which the translation (from the French text 
 printed in Wang, p. 73) is as follows: 
 
 Contract for Supplementary Loan for Completion of Peking-Hankow Railway. — 
 
 August 13, 1905. 
 
 "Between the undersigned: 
 
 "First: The Imperial Chinese Railway Company, represented by His Excellency Sheng 
 HsiJan-huai Kung Pao, Director General, duly authorized by the Chinese Government. 
 
 "Second: The Societe d'etudes des chemins de fer en Chine, represented by Mr. Jean 
 Jadot, Engineer-in-chief, Director of the line from Peking to Hankow, holding full powers, 
 'It has been agreed as follows: 
 
 " Article I. — To assure the completion in good time of the line from Peking to Han- 
 kow and of its branches, and also to assure the payment of interest on the loan, until the 
 whole line has been put into operation, the two contracting parties have decided to issue a 
 supplementary five per cent gold loan, at the issue price of ninety per cent, to the nominal 
 amount of twelve million five hundred thousand francs (frs. 12,500,000), represented by 
 twenty-five thousand bonds of five hundred francs (frs. 500) each. 
 
 "Article II. — This loan is subject to all the clauses and conditions of the principal Five 
 Per Cent Loan Contract, under date of June 26, 1898, ?.nd of the operating contract annexed 
 thereto, especially as regards the rate of interest, period, amortization, etc. 
 
 " Article III. — This loan, like the principal loan, has the guarantee of the Chinese 
 Government ; and it has, furthermore, as a special guarantee, the net revenue from the 
 operation of the Peking-Hankow line, including the extension from Lu-kou-chiao to Peking, 
 and the branches forming part of the same system, after deduction of the sums necessary 
 to assure the services of the principal loan of 1898. 
 
 " Article IV. — The purpose of the present supplementary loan being to assure the 
 completion of the whole line, every effort will be made to avoid exceeding it. If, how- 
 ever, after the completion of the line towards the close of 1905, besides the ordinary expenses 
 of upkeep and current repairs, and besides the service of the loan and the deduction of ten 
 per cent (10%) for rebuilding or extraordinary repairs (according to Article IV of the 
 operating contract) — expenses which will be covered by the operating revenues — there are 
 expenses to be incurred for the final work or orders for new material, or any extension works 
 whatsoever — expenses which (according to Article II of the operating contract, and 
 according to the rules generally adopted in railway business) should be charged to the 
 capital account — these expenses will be covered by that share of the net profits which should 
 accrue to the Imperial Chinese Railway Company: if that share should not suffice to cover 
 these expenses, the Imperial Chinese Railway Company should of course, in conformity 
 with the operating contract, furnish the funds to cover them. 
 
 " These expenses can only be incurred after a previous agreement with the Director 
 General or his delegate. 
 
 " Article V. — After the completion of the whole line the operating service will become 
 more and more important. The Imperial Chinese Railway Company has named a delegate 
 who (in conformity with Article II of the operating contract) should examine in advance, 
 with the delegate of the Societe d'etudes des chemins de fer en Chine, all measures for 
 the purpose of assuring the perfect organization of the various services and see to the 
 proper execution of those measures, the Societe d'etudes des chemins de fer en Chine being 
 charged by the Chinese Government with the operation of the line, by virtue of the operating 
 contract. 
 
 "Article VI. — If, in the future, the construction of new branches is decided upon, the 
 Imperial Chinese Railway Company must furnish the necessary funds, either by means of 
 its share of the net profits, or otherwise. The Imperial Chinese Railway Company will be 
 free to choose such means as it sees fit. 
 
 "Article VII. — The present contract is drawn up in four (4) copies, one of them 
 for the Chinese Government, one for the Imperial Chinese Railway Company, one for the 
 Legation of Belgium in Peking, and one for the Societe d'etudes des chemins de fer en 
 Chine. 
 
 " In case of doubt or difference, the French te.xt alone will be authoritative for the 
 interpretation of the contract.
 
 152 CHINA TREATIES AND AGREEMENTS 
 
 "Article VIII. — When the contract shall have received imperial sanction, the Ministry 
 of Foreign Affairs (Wai-wu Pu) will give instructions by telegraph to his Excellency the 
 Minister of China, in Brussels, for the signature of the twenty-five thousand bonds for the 
 loan, in the name of the Chinese Government. 
 
 " Notice of the imperial sanction and of the instructions given to the Chinese Minister 
 at Brussels will be given by the Wai-wu Pu to the Minister of Belgium in Peking. 
 
 "If the Minister of Belgium requests it of the Wai-wu Pu, the latter will advise the 
 minister of such foreign country as may be designated to him as taking a part in the sub- 
 scription for the bonds. 
 
 " Done at Peking August thirteenth, nineteen hundred and five. 
 
 " (Signed) J. Jadot. 
 " (Signed) Sheng." 
 
 On October 8, 1908, the Chinese Board of Posts and Communications concluded with 
 the Hongkong and Shanghai Banking Corporation and the Banque de I'lndo-Chine a loan 
 agreement for the purpose of redeeming the Peking-Hankow Railway Loans (No. 1908/12, 
 post) ; and on the same date an imperial edict authorized the Bank of Communications to 
 issue a seven per cent Peking-Hankow Railway Redemption Loan of $10,000,000 (No. 
 1908/13, post). The Chinese Government took control of the railway from January 1, 1909. 
 
 The line was originally to run, not from Peking but from Lu-kou-chiao (a few miles to 
 the west), to Hankow, and from the first character of each name was known as the Lu-Haii 
 Railway : upon its extension to Peking, it was known first as the Pei-Han, and later as the 
 Kin-Han Railway {Kin being the French transliteration of the second character in the 
 name Peking). 
 
 NUMBER 1898/14. 
 
 GREAT BRITAIN AND CHINA. 
 Convention for the lease of Wei-hai Wei* — July 1, 1898. 
 
 In order to provide Great Britain with a suitable naval harbour in North 
 China and for the better protection of British commerce in the neighbouring 
 seas, the Government of His Majesty the Emperor of China agree to lease to 
 the Government of Her Majesty the Queen of Great Britain and Ireland, Wei- 
 hai Wei, in the province of Shantung and the adjacent waters, for so long a 
 period as Port Arthur shall remain in the occupation of Russia. 
 
 Territory leased. — The territory leased shall comprise the Island of Liu- 
 kung and all other islands in the Bay of Wei-hai Wei, and a belt of land 10 
 English miles wide along the entire coast line of the Bay of Wei-hai Wei. 
 
 *Text as reprinted in Rockhill, p. 60, from China, 1899, No. 1. p. 199. Printed also in 
 Customs, Vol. I, p. 541; Hcrtslet, p. 122; Am. Int. Law Journal, Supplement, 1910, p. 297; 
 British Treaty Series, i8g8. No. 14. 
 
 In connection with this convention see also the following declaration made to the Ger- 
 man Government by the British Ambassador at Berlin, by a note dated April 20, 1898, 
 and formally acknowledged on the same date : 
 
 " England formally declares to Germany that in establishing herself at Wei-hai Wei, 
 she has no intention of injuring or contesting the rights and interests of Germany in the 
 Province of Shantung, or of creating difficulties for her in that province. It is especially 
 understood that England will not construct any railroad communication from Wei-hai Wei 
 and the district leased therewith into the interior of the Province of Shantung." 
 
 For full text of notes, see Hertslei, p. 584. See also Rockhill, p. 180, and China, 1899, 
 No. I, p. 27.
 
 NUMBER 1898/14: JULY 1, 1898 153 
 
 Within the above-mentioned territory leased Great Britain shall have sole juris- 
 diction. 
 
 Right to fortify. — Great Britain shall have, in addition, the right to erect 
 fortifications, station troops, or take any other measures necessary for defensive 
 purposes, at any points on or near the coast of the region east of the meridian 
 121 ° 40' east of Greenwich, and to acquire on equitable compensation within 
 that territory such sites as may be necessary for water supply, communica- 
 tions, and hospitals. Within that zone Chinese administration will not be inter- 
 fered with, but no troops other than Chinese or British shall be allowed therein. 
 
 Jurisdictional rights. — It is also agreed that within the walled city of Wei- 
 hai Wei, Chinese officials shall continue to exercise jurisdiction except so far 
 as may be inconsistent with naval and military requirements for the defence 
 of the territory leased. 
 
 Rights of Chinese war ships. — It is further agreed that Chinese vessels of 
 war, whether neutral or otherwise, shall retain the right to use the waters herein 
 leased to Great Britain. 
 
 Expropriation of natives. — It is further understood that there will be no 
 expropriation or expulsion of the inhabitants of the territory herein specified, 
 and that if land is required for fortifications, public offices, or any official or 
 public purpose, it shall be bought at a fair price. 
 
 This Convention shall come into force on signature. It shall be ratified 
 by the Sovereigns of the two countries, and the ratifications shall be exchanged 
 in London as soon as possible.f 
 
 In witness whereof the undersigned, duly authorized thereto by their 
 respective Governments, have signed the present agreement. 
 
 Claude M. MacDonald, 
 Prince Ch'ing, 
 Senior Member of the Tsung-li Yamen. 
 
 LiAO Shou-Heng, 
 President of the Board of Punishments. 
 
 Done at Peking in quadruplicate (four copies in English and four in 
 Chinese) the 1st day of July in the year of our Lord 1898, being the 13th day 
 of the 5th moon of the 24th year of Kuang-hsii. 
 
 t Ratifications exchanged at London, October 5, 1898.
 
 154 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1898/15. 
 
 RUSSIA (Chinese Eastern Railway) AND CHINA. 
 
 Agreement concerning the southern branch of the Chinese Eastern Raikvay* — 
 
 July 6, 1898. 
 
 Hsii (Ching-ch'eng), Ambassador (?) of the Imperial Chinese Government, 
 and Yang(-ju), Minister of the Imperial Chinese Government to Russia, have 
 received an Imperial Decree of the 7th of the Fifth Moon, XXIV Year of Kuang- 
 hsii, that is the 13th of June, 1898, Russian Calendar (June 25th, 1898, New 
 Style), authorizing them to draw up a contract with the Chinese Eastern Railway 
 Company in accordance with the provisions of the Treaty between China and 
 Russia, entered into at Peking on the 6th of the Third Moon, XXIV Year of 
 Kuanghsii, i. e. March 15, 1898, Russian Calendar (March 27th, 1898, N. S.)t 
 and those of the Special Supplementary Articles to the same, agreed upon at St. 
 Petersburg on the 17th of the Intercalary Third Moon— April 25, 1898— (May 
 7th, 1898, N. S.)$ to the effect that, from the date of the signing of said Treaty 
 by the Chinese Government, in accordance with the permission given in the 
 XXII Year of Kuanghsii (1896) to the Chinese Eastern Railway Company to 
 construct certain railways, a branch line might be built and operated, which 
 should begin at a station, to be selected on the main line of the Chinese Eastern 
 Railway, and extend to the sea-ports, Dalny and Port Arthur in the Liao-tung 
 Peninsula; the said branch line to be dealt with in careful compliance with the 
 terms of the Contract of the 2d of the Eighth Moon, XXII Year of Kuanghsii, 
 August 27, 1896, Russian Calendar (Sept. 8, 1896, N. S.) § between the Chinese 
 Government and the Russo-Chinese Bank. 
 
 In accordance with the foregoing provisions, the following Articles relat- 
 ing to the construction and operation of a railway through Manchuria are 
 now agreed upon, to-wit : 
 
 Article I. — This branch of the Chinese Eastern Railway, extending to 
 the sea-ports of Port Arthur and Dalny, shall be known as the Southern Man- 
 churian Branch of the Chinese Eastern Railway. 
 
 Article II. — In accordance with Article IV of the Contract of the 2d. of 
 the Eighth Moon, XXII Year of Kuanghsii, August 27, 1896 (Sept. 8th, 1896, 
 N. S.), which provides that the Chinese Government shall take steps as occasion 
 may require to facilitate the bringing in of the materials needed for the con- 
 struction of the line, whether transported by water or by land, it is now agreed 
 that the Company may employ steamers or other vessels, and such vessels flying 
 the Company's flag shall be permitted to proceed up the Liao River or any of its 
 branches, and to enter Ying-k'ou (the port of Newchwang) or any port in the 
 
 * Translation from the Chinese text as printed in Customs, Vol. II, p. 233. See Note 
 to this document, post. p. 156. 
 t No. 1898/5, ante, 
 t No. 1898/9, ante. 
 § No. 1896/5, ante.
 
 NUMBER 1898/15: JULY 6, 1898 155 
 
 Neutral Territory which may prove advantageous to the work of constructing 
 this hne, and may there discharge cargo. 
 
 Article III. — In order to facihtate the bringing in by the Chinese Eastern 
 Railway Company of the materials and provisions needed in the construction of 
 the Southern Manchurian Branch, it is permitted the Company to build temporary 
 branch lines from this road to Ying-k'ou and to sea-ports in the Neutral Zone, 
 but when the work of building the line is completed and the road is open for 
 traffic the Company must at the notice of the Chinese Government remove 
 these branch railways ; that is to say, within eight years from the date of the 
 survey and determination of the line and the appropriation of the land for its 
 construction these temporary branch lines must be removed. 
 
 Article IV. — In accordance with the permission granted to the Company 
 in the XXIII Year of Kuanghsii (1897) to cut timber and mine coal for the use 
 of the railway, it is now agreed to allow the Company to fell timber at its 
 pleasure in the forests on government lands, each tree to be paid for at a price 
 to be fixed by the Engineer-in-Chief or his deputy in consultation with the 
 local authorities, but not higher than the local market rate. But no forests on 
 property in the province of Shengking belonging to the Imperial Family, or on 
 sites that affect the feng-shui being under the direct control of the Peking Gov- 
 ernment may be injured or disturbed. 
 
 The Company shall also be allowed in the regions traversed by this branch 
 line to mine such coal as may be needed for the construction or operation of 
 the railway, the price of which coal shall be fixed by the Engineer-in-Chief or 
 his Deputy in consultation with the local authorities but shall not exceed the 
 royalty paid by other parties in the same locality. 
 
 Article V — Within the leased territory on the Liao-tung Peninsula Russia 
 may fix the Customs Tariff to suit herself, and China may levy and collect duties 
 at the boundaries on all goods going from the leased territory to the interior or 
 from the interior to the leased territory. In dealing with this matter China may 
 arrange with Russia for the latter Government to establish the Customs at 
 Dalny and from the date of the opening of the said port to international trade 
 to appoint the Chinese Eastern Railway Company to act as the Agent of the 
 Chinese Imperial Board of Revenue to open and manage the Customs and 
 in its behalf to levy and collect duties. The said Customs shall be under the sole 
 control of the Peking Government, to which the said Agent shall from time to 
 time report its management. In addition there shall be appointed a Chinese 
 civil official to be stationed as Deputy at the said Customs. All baggage of 
 passengers and all goods brought from railway stations within the Russian boun- 
 daries by the said line into the territory leased to Russia in the Liao-tung 
 Peninsula, or shipped from the said leased territory into the Russian Empire 
 shall be entirely free of all Customs duties as well as of all Inland Transit and 
 Likin dues. Goods shipped by rail from the interior of China to the leased ter- 
 ritory or from the leased territory to the interior must pay export or import 
 duties respectively according to the Imperial Maritime Customs Tariff without 
 increase or reduction. 
 
 Article VI. — The Company may at its pleasure assume the responsibility
 
 156 CHINA TREATIES AND AGREEMENTS 
 
 of establishing a line of sea-going vessels flying the Company's flag, to be operated 
 under the Regulations for Foreign Mercantile Shipping. Should these vessels 
 or the management of the business in connection therewith occasion any financial 
 loss, the Chinese Government shall not be held responsible. Passenger fares 
 and freight rates shall be established by the Company to suit itself, and shall in 
 no wise concern the railway. The period of the management of the said enter- 
 prise being of course unlimited, the provisions of Article XII of the Contract 
 between the Chinese Government and the Russo-Chinese Bank of the XXII 
 year of Kuanghsii (1896)|| fixing a price for the purchase of the railway, and 
 a date for its reversion to China without payment, shall not apply to this un- 
 dertaking. 
 
 Article VII. — As to the location of the Southern Manchurian Railway 
 Line, and the determination of the places through which it shall pass, it will 
 be necessary to wait until the Engineer-in-Chief shall have surveyed the route 
 through Manchuria and made report of the conditions to the Head Office of the 
 Company, when the Company or its Agent in Peking shall consult with the 
 Director General of the Railway and decide the matter. 
 
 Note. 
 
 To the text as printed in Customs is appended the reading of a telegram of which the 
 translation is as follows : 
 
 " In accordance with Treaty of Peking of 6th of Third Moon and Special Articles of 
 Intercalary Moon, extension of Chinese Eastern Railway Company, to build and operate 
 a branch line from station to be selected on main line to sea-ports Port Arthur and 
 Dalny in Liao-tung. Careful compliance with provisions of Russo-Chinese Bank's contract. 
 Supplementary Articles proposed as follows : — 
 
 " 1. This Branch line, extending to Port Arthur and Dalny, shall be known as the 
 Southern Manchurian Branch of Chinese Eastern Railway. 
 
 "2. Original Agreement, Article IV, (provides) Chinese Government to take steps to 
 facilitate transport by land or water of materials for construction of railway. Company 
 permitted to employ steamships or other vessels flying Company's flag which may enter 
 Liao River and laranches and proceed to Ying-k'ou and all sea-ports in Neutral Zone and 
 there unload materials. 
 
 " 3. In order to facilitate shipment of materials and provisions, Company permitted to 
 construct temporary branch lines from Southern Manchurian line to Ying-k'ou and sea- 
 ports in Neutral Zone, but when the work of building railway is completed and whole line 
 open to traffic, all these temporary branch lines to be removed at pleasure of Chinese 
 Government. 
 
 " 4. The Chinese Government in First Moon last year granted permission to obtain 
 coal and wood. Company now allowed to fell timber in forests on government lands, price 
 of each tree to be fixed by local authorities in conference with Engineer-in-Chief, but not 
 to be made higher than local market rate. But, forests in province of Shengking, property 
 of Imperial Family, affecting Feng-shui, under control of Peking Government, not allowed 
 to be touched. 
 
 " Company also permitted in localities through which this branch line passes to mine 
 coal, payment for same also to be determined by conference but not to be more than 
 paid by others. 
 
 " 5. Within the Leased Territory Russia to determine for herself the Customs Tariff. 
 China must collect duties on goods at the boundary of Leased Territory. With respect 
 to this matter arrangements may be made permitting Russia on opening of Dalny to inter- 
 national trade to establish the Customs at that port and appoint the Company to act 
 as Agent of Chinese Imperial Board of Revenue, levying and collecting dufies, under 
 direct control of Peking Government, and reporting its management to same from time 
 
 II i.e., No. 1896/5, ante.
 
 NUMBER 1898/15: JULY 6, 1898: NOTE 157 
 
 to time. Goods coming from railway stations within the Russian boundaries into the 
 leased Territory or from the latter into Russia to be free of all Customs duty and likin 
 charges ; those going by railway from leased territory into the interior of China or from 
 interior to leased territory to pay duty according to tariff of Imperial Maritime Customs 
 without increase or reduction. 
 
 " 6. Company allowed to establish line of merchant steamships flying Company's flag. 
 If any financial loss, China not responsible; this business not to involve the railway, and 
 not to be dealt with under provisions of original contract fixing price for purchase (of 
 railway) and date for reversion (without payment). 
 
 "7. Location of line of Southern Manchurian Railway and determination of places 
 through which it will pass to await surveys iii Manchuria by Engineer-in-Chief when (Com- 
 pany or its Agent in Peking will consult with Director General and decide. 
 
 " The above is translated by Ch'eng Ju-chiang from the coinplete text of letter received 
 from Chinese Eastern Railway, omitting unimportant words and phrases, this third day of 
 Fourth Moon, Kuanghsii XXIV Year (May 22, 
 
 In connection with this agreement see the following translation from the Russian text 
 of the first supplement to the charter of the Chinese Eastern Railway (printed, ante, as an 
 annex to the Chinese Eastern Railway Agreement of September 8, 1896, No. 1896/5), 
 dated February 5/17, 1899: 
 
 First Supplement to Charter of Chinese Eastern Railway. — February 17, 1899. 
 
 '■ 1. In accordance with the treaty, entered upon on June 24 (July 6), 1898, by the 
 Chinese Eastern Railway Company and the Chinese Imperial Government, this company is 
 authorized to construct a branch line from one of the stations of the main line to the 
 ports of Talien-wan and Port Arthur, situated on the Kuantung Peninsula, also to operate 
 this branch which shall be named ' the Southern M'anchurian Line,' of the Chinese Eastern 
 Railway. 
 
 "2. By Imperial order of May 29 (June 10), 1898, the company is authorized to con- 
 struct a commercial port on the Talien-wan Bay. 
 
 The Company is also authorized to exploit this port. 
 
 "3. According to the Imperial order of June 12 (24), 1898, the Chinese Eastern Rail- 
 way Company is permitted to establish its own steamship service in the waters of the 
 Pacific Ocean. 
 
 '■ This steamship service is for the purpose : 
 
 (a) of securing, during the construction of the Chinese Eastern Railway, the timely 
 delivery of the necessary freight, materials and workmen, and thus cooperate in the 
 successful course of the construction of this railway. 
 
 (6) during the exploitation of the Chinese Eastern Railway, of joining by means of 
 steamship service the terminal points of the railway Vladivostok and Talien-wan (i. e., 
 Dalny) with the principal ports of China, Japan, and Korea and thus securing regular and 
 speedy transfer of passengers and freight, going from Russia and Western Europe to the 
 Far East and back. 
 
 " Moreover, upon the refusal of Commercial Councillor Sheveleff to maintain from 
 January 1 (13), 1900, regular steamship communication between the ports of the littoral, 
 the Primorski District (the line of the Tartary Strait and that of Peter the Great), also 
 between Vladivostok and the open ports of Korea, Japan and China, the duties and obliga- 
 tions of Commercial Councillor Sheveleff devolve upon the Chinese Eastern Railway Com- 
 pany, beginning with January 1 (13), 1900. 
 
 " The further determination as to the direction of the steamship lines is left to the 
 Board of Directors of the Company upon approval of the Russian Minister of Finance. 
 
 " 4. In order to facilitate the conveying of the necessary materials and provisions for 
 the construction of the Southern INIanchurian Line, the Company is authorized to establish 
 branch lines to the port of Ind-tsi (Ying-tzu = Niuchwang) and other ports of the neutral 
 zone with the proviso that, upon completion of the line and the establishment of regular 
 traffic on the same, the branch lines to the above named ports should be destroyed by the 
 Company, should the Chinese Government formulate that demand. 
 
 " 5. The construction and exploitation of the Southern Manchurian Line and the 
 branch lines mentioned in par. 4, as well as the construction and exploitation of the com- 
 mercial port at Talien-wan (i. e., Dalny), also the establishment and exploitation of the 
 steamship service, the Company is under obligation to run strictly according to the rules 
 of its charter, and to the stipulations of the treaty concluded on June 24 (July 6), 1898, 
 between the Company and the Imperial Chinese Government. However, no term is set to 
 the exploitation by the Company of the steamship lines, as well as of the commercial port at 
 Talien-wan, and the s'tipulations of par. 12 of the treaty of August 27 (Sept. 8), 1896, entered 
 upon by the Russo-Chinese Bank and the Chinese Government with regard to the terms 
 of purchase and the free transfer of the railway to the above named Government, do not 
 extend to the Company with regard to the steamship lines and the commercial port. 
 
 " 6. The baggage of passengers, as well as the merchandise sent through over one of
 
 158 CHINA TREATIES AND AGREEMENTS 
 
 the branches of the railway from one of the Russian frontier stations to some part of 
 the Liao-tung Peninsula leased by Russia, are not subject to any custom duties; they are 
 likewise exempt of all taxes and interior dues. Merchandise sent by rail from the territory 
 leased by Russia into the interior of China, as well as those brought from the interior of 
 China to that territory, are subject to the payment of import and export duties of Chinese 
 seaports without any increase or diminution of the same. 
 
 " 7. The maximum of seaport duties to be collected in the commercial port of Talien- 
 wan, as well as the maximum tariff for the carrying of passengers and freight on 
 the steamships of the Company, as well as the supplementary payments to be made for 
 their conveyance, are determined by the Russian iNIinister of Finance upon their being 
 laid before him for approval by the Board of the Company. The amount of seaport dues, 
 the tariff for transportation by sea and supplementary dues for the same within the limits 
 of the above stated normal amounts determined by the Minister of Finance, are determined 
 by the Board itself. 
 
 " 8. For the purpose of covering the expenditures incurred by the construction of the 
 Southern Manchurian Line and the commercial port at Talien-wan, and the establishment of 
 steamship service in the waters of the Pacific Ocean, the Company is authorized to issue, 
 according to its needs, upon conditions determined in paragraphs 11 and 12 of the Com- 
 pany's Charter sanctioned by Imperial Ukase of December 4 (16), 1896, supplementary 
 obligations, and that part of the debenture capital which is destined specially for the needs 
 of the port and the steamship service must have separate accounts and books from that of 
 the railway. 
 
 "9. During the exploitation of the commercial port at Talien-wan as well as the ex- 
 ploitation of the steamship service organized by the Company for the waters of the Pacific 
 Ocean, the Company must institute separate accounts and books from those of the railway 
 as to the income and expenditure. 
 
 " Should the gross profit of the commercial port at Talien-wan and from the steam- 
 ship service prove insufficient to cover the expense of their exploitation, make the annual 
 payments on the debenture capital, specially appointed for the needs of these undertakings, 
 as also to lay aside the obligatory amount of money for the amortization of the fund — 
 the lacking sums may be obtained by the Company from the Russian Government through 
 the Minister of Finance, the per cent to be paid on the guarantee for the debenture capital 
 at the rate of 6 percent per annum, while all the other payments will be made to the Company 
 upon conditions determined for each individual case by the Minister of Finance. The pos- 
 sible surplus of net profit, that may be left after the payment of all obligatory amounts and 
 the deduction into the reserve fund of the remaining sum from the exploitation of the 
 Talien-wan commercial port and the steamship service, shall be first of all used for the 
 amortization of the debt to the Russian Government, incurred for the commercial port 
 and the steamship service, and only in the years when the Company will have paid off all 
 its debts, shall that surplus be added as a supplementary amount to the dividend falling to 
 the shareholders. 
 
 " 10. Should the Chinese Government deem it necessary to establish, with the consent 
 of the Russian Government, a custom house at Talien-wan for the purpose of collecting 
 the duty on merchandise exported and imported by rail from and to the part of the Liao- 
 tung Peninsula, leased by Russia, the organization and administration of this custom 
 house shall be entrusted to the Chinese Eastern Railway Company, which will collect the 
 taxes in the capacity of an agent of and for the Chinese treasury, the expenditures for 
 the maintenance of the same to be paid from its profits at a rate annually determined 
 jointly by the company and the Chinese Government. The custom house shall be in the 
 immediate custody of the central administration at Peking, accounts on its operations to 
 be periodically presented to the same. The Chinese Government has the right to appoint a 
 civilian official of Chinese nationality, who shall fill the post of Chinese Agent at that 
 custom house. 
 
 " 11. In all cases, overlooked in the supplement, the Company shall be ruled by corre- 
 sponding regulations of the Company's Charter sanctioned by Imperial Ukase on December 
 4 (16), 1896, and those of the treaties of August 27 (September 8), 1896, and June 24 (July 
 6), 1898, concluded between the Chinese Government, the Russo-Chinese Bank, and the Board 
 of the Company." 
 
 See also Article 6 of the Treaty of peace between Japan and Russia, September 5, 1905 
 (No. 1905/8. post), and the Treaty between Japan and China, December 22, 1905 (No. 1905/18, 
 post) in regard to the transfer to Japan of that portion of the railway between Port 
 Arthur and Chang-chun (Kuan-cheng-tzu).
 
 NUMBER 1898/17 : JULY 28, 1898 159 
 
 NUMBER 1898/16. 
 
 CONGO FREE STATE AND CHINA. 
 Treaty conferring mutual most-favored-nation treatment* — July 10, 1898. 
 
 Concerning the Treaty of Amity and Commerce between the Chinese Em- 
 peror and the Congo Free State, it is proposed that in accordance with the 
 powers received, which are in form, a special Article shall be agreed upon 
 mutually and promulgated without delay. 
 
 Art. L — All privileges of person, property, and jurisdiction enjoyed by 
 foreign nations under the Treaties concluded by China shall from henceforth 
 be granted to the Congo Free State. 
 
 II. — It is agreed that Chinese subjects may at their pleasure proceed to the 
 territory of the Congo Free State, and there sojourn or reside, and that they 
 may buy and sell, retain possession or change ownership of, all species of property, 
 movable or immovable. As regards trade, navigation, and industry, Chinese sub- 
 jects shall have most-favoured-nation treatment. 
 
 In witness whereof the High Officers of both States have hereunto affixed 
 their signatures and seals. 
 
 Peking, July 10, 1898. 
 
 (l. s.) Li Hung Chang, 
 
 (l. s.) Comte D'Ursel. 
 
 NUMBER 1898/17. 
 
 CHINA. 
 
 Steam Navigation inland: Regulations {amended), 1898: and Supplementary 
 Rules thereunder.^ — July 28, 1898. 
 
 STEAM NAVIGATION INLAND: REGULATIONS (AMENDED), 1898. 
 
 A — Registration. 
 1. — The inland waters of China are hereby opened to all such steamers, 
 Native or Foreign, as are specially registered for that trade at the Treaty ports. 
 
 * Translation from the French text, as reprinted in Rockhill, p. 467, from B. & F. State 
 Papers, vol. 90, p. 956. French text printed also in Customs, Vol. II, p. 829; Hcrfslet. p. 240. 
 
 t Translation, as published bv Chinese Maritime Customs, from the Chinese text. 
 Printed also in Hertslet. pp. 721, 726. 
 
 In connection with these regulations see the Yangtze Regulations, 1898 (No. 1898/18, 
 post) ; also the Additional Rules concerning inland steam navigation. Article X and Annex 
 C to the British Commercial Treaty of September 5, 1902 (No. 1902/7, post), and Article 
 VIII and Annexes 1 and 2 to the Japanese Commercial Treaty of October 8, 1903 (No. 
 \902,/A,post).
 
 160 CHINA TREATIES AND AGREEMENTS 
 
 They may proceed to and fro at will under the following Regulations, but they 
 must confine their trade to the inland waters and must not proceed to places 
 out of Chinese territory. The expression " inland waters " is used with similar 
 meaning to that given for places in the interior (nei-ti) in the fourth Article of 
 the Chefoo Convention.f 
 
 2. — Trading steamers, Native or Foreign, not being vessels of sea-going 
 type, whether plying only in the waters of a Treaty port or going thence inland, 
 are to be registered at the Custom House and there take out papers — showing 
 respectively the owner's name and residence, name and type of steamer, number 
 of crew, etc., etc., — in addition to whatever national papers they are allowed or 
 required by law to carry ; such Customs papers are to be renewed annually and 
 are to be surrendered on change of ownership or when the vessel ceases to 
 ply. The fee for the first issue of Customs papers will be Tls. 10 and for each 
 renewal Tls. 2. 
 
 3. — Such registered steamers may ply freely within the waters of the port 
 without reporting their movements to the Customs, but if they go inland they 
 must report both departure and return. No unregistered steamer will be allowed 
 to ply inland. 
 
 4. — As regards exhibition of lights, prevention of collision, shipping of 
 crews, and inspection of boilers and machinery, etc., all such steamers are to 
 observe the Rules in force at the port they belong to. These Rules will be 
 published by the Customs and printed on the vessel's Customs papers. 
 
 B. — Revenue. 
 
 5. — Dutiable cargo shipped under these Regulations at any Treaty port on a 
 registered steamer for conveyance to the interior must be declared at the Custom 
 House and pay on export such Duties as the Customs decide to be leviable- 
 Dutiable cargo brought from inland to a Treaty port is to be in like manner 
 dealt with by the Custom House there. As to the Duties to be paid by vessels 
 belonging to Foreign merchants, they are to be in accordance with the Treaty 
 Tariff. 
 
 6._Cargo landed or shipped inland is to pay at the place of landing or 
 shipment whatever Duty and Likin local Regulations call for. In dealing with 
 the vessels of Foreign merchants a procedure analogous to what the Treaty 
 Tarifif calls for is to be followed. 
 
 7. — If such steamers have vessels in tow, they must bring to at whatever 
 Likin stations the vessels towed are required to stop at, for inspection and for 
 the respective cargoes of both vessels to be dealt with as local Rules prescribe. 
 The Rules to be enforced on Foreign merchants must be in accordance with 
 Treaty provisions and as well be published in full by the Customs. Steamers 
 
 t See Hertslet, p. 73. Hertslet notes (p. 721), however, that the reference should be not 
 to Article TV but to Section ITT, §4, in which it is provided that "The words 'nei ti, 
 inland, in the clause of Article VI T of the Rules appended to the Tariff, regarding carriage 
 of imports inland, and of native produce purchased inland, apply as much to places on the 
 sea coasts and to river shores as to places in the interior not open to foreign trade; the 
 Chinese Government having the right to make arrangements for the prevention of abuses 
 thereat."
 
 NUMBER 1898/17: JULY 28, 1898 161 
 
 which have not special Customs papers are not permitted to tow vessels on the 
 Yangtze. 
 
 8. — Offences inland, whether against revenue laws or affecting person or 
 property, are to be dealt with by the local authorities of the district in the 
 same way as if they were committed by their own people; but if the vessel con- 
 cerned is Foreign-owned or the Chinese implicated is a Chinese employed on 
 board such Foreign-owned vessel, the local authorities are to communicate with 
 the nearest Commissioner of Customs, and the Commissioner, in turn, with 
 the Consul, who may send a deputy to watch the proceedings. If the offender 
 claims the status of a Foreigner, he is to be treated in the manner prescribed 
 in the Treaties where Foreigners without passports are arrested, and sent to the 
 proper Consul through the Commissioner of Customs at the nearest port. 
 
 9. — If any such steamer passes any inland station or Likin barrier that ought 
 to be stopped at without stopping, or if any of the passengers, crew, etc., create 
 trouble inland, the vessel may be fined or punished according to the station 
 Regulations, and the Customs may cancel the vessel's papers and refuse per- 
 mission for her to trade inland again. 
 
 In cases where Foreign-owned vessels are concerned, the merchant interested 
 may elect to bring the whole case and the question of fine before a Joint In- 
 vestigation Court, to be dealt with according to the Regulations for cases of fine 
 and confiscation promulgated in the year 1868. 
 
 The above Rules are for the inauguration of steam traffic and suffice for 
 the time being; if hereafter it is found that changes are necessary, they can be 
 made from time to time as required. 
 
 Peking, 28th July 1898. 
 
 SUPPLEMENTARY RULES UNDER INLAND STEAM NAVIGATION 
 
 REGULATIONS. 
 
 1 — Foreign goods going inland on steamers can either be taken with Transit 
 Passes or by payment of Dues and Duties at the several stations passed en route, 
 at the merchant's option. The vessels are not to be held in any way responsible 
 for the terminal Duties on cargo, but it must not be landed clandestinely. 
 
 2. — Native goods leaving a Treaty port for the interior in a steamer must 
 be declared at the proper Custom House and pay Export Duty according to the 
 Regulation for outgoing cargo shipped in Native vessels. They will pay inland 
 whatever Dues and Duties are payable by similar goods carried in Native ves- 
 sels. If the goods declared are Native re-exports which have originally paid 
 Export Duty at another port, they may be shipped free of Export Duty, but as 
 regards inland Dues and Duties, are on the same footing as ordinary exports. 
 The responsibility for any Duties payable on goods at place of destination, no 
 matter where the vessel comes from, attaches to the cargo and not to the vessel, 
 but the cargo must not be landed clandestinely.
 
 162 CHINA TREATIES AND AGREEMENTS 
 
 3. — Native goods once regularly shipped on board a steamer in the interior 
 are not later required to produce proof of payment of such local Duties as were 
 leviable there before shipment, but they are liable for en route Duties. 
 
 On arrival at a Treaty port they will if for local Native consumption pay 
 to the proper office the Duties paid on similar cargo carried in Native vessels. 
 Outside this Duty the steamer is not to be held responsible for any Duty, Likin, 
 contribution, or charge. 
 
 If the Native produce is intended for export, it may be brought from the 
 interior either under a Transit Certificate issued on deposit of Bond, according 
 to what are known as the Chinkiang Rules, or by paying Dues and Duties in 
 accordance with Regulation en route, at the option of the merchant concerned, 
 whether a Chinese or a Foreigner. 
 
 Goods brought from the interior merely for transhipment into a seagoing 
 or river steamer are not liable to any Duty at the port except the Treaty Tariff 
 Export Duties. 
 
 4. — All inland-going steamers are to pay Tonnage Dues once in four months, 
 at the Treaty Tariff rate, at the port where registered. Towed Native boats are 
 liable to such " Ch'uan-liao " as the Regulations provide for. 
 
 5. — Cargo shipped on Native boats to be towed by steamers is to be on the 
 same footing as regards Duty payment as steamers' cargo. 
 
 6. — Steamers are not allowed to land cargo except at places ordinarily 
 recognized as places of trade for Native vessels ; in the event of their violating 
 this rule, they will be dealt with as the Treaties provide in the case of vessels 
 frequenting places not open to trade- Similarly, vessels on the registers for 
 inland waters' trade carrying goods out of Chinese territory or jurisdiction will 
 be liable to a fine not exceeding Tls. 200 for the first offence ; for the second, the 
 penalty will be abrogation of the right to carry on inland trade. 
 
 7. — The Customs at the Treaty ports will give Cargo Certificates detailing 
 all the cargo shipped there under its cognizance. These Certificates will form the 
 basis of Duty payment at way stations, and the vessels concerned, unless there 
 is reason to suspect them of smuggling, will not be detained for rigid examina- 
 tion at each place, but will be released on payment of proper Duty. 
 
 Manifests of all cargo to be landed are to be handed in at the landing-places 
 (in Chinese if the places are away from the Treaty ports). 
 
 8. — As regards the publication of the Rules and Regulations in force at the 
 several places where Dues and Duties are payable, referred to in Rule 7, it is 
 understood that the publication is to take place before the end of this Chinese 
 year. In the meantime, if vessels do not stop at stations they will not be liable 
 to any penalty for passing them, unless they are hailed to bring to by the 
 station or one of its boats and disregard the summons. 
 
 9. — After the Regulations have been notified, the provincial authorities will 
 appoint at each Treaty port a responsible officer, who will collect on provincial 
 account the Dues and Duties prescribed in Articles 2 and 3 on goods going to 
 or coming from inland waters and report the collection at stated intervals to his 
 superiors. He will receive in one lump sum all the Dues and Duties a vessel 
 lading for a certain destination is bound to pay at the various stations she will
 
 NUMBER 1898/18: AUGUST, 1898 163 
 
 pass on the way. The officer will give a Certificate of Receipt, presentation of 
 which at the stations will exempt the goods from levy of Duty or vexatious 
 examination. 
 
 The officer appointed will have an office in the vicinity of the Custom House 
 and will work in concert with and under the guidance of the Commissioner. In 
 case any question or difficulty arises, the Commissioner and the Superintendent 
 of Customs will arrange it amicably ; when a Foreigner is concerned, he has the 
 option of having it dealt with under the Joint Investigation Rules.:}: 
 
 These Supplementary Rules, like the Rules to which they are appended, 
 are provisional, and liable to change as required. 
 September 1898.§ 
 
 NUMBER 1898/18. 
 
 INTERNATIONAL AND CHINA. 
 
 Regulations governing trade on the Yangtze-kiang {with Yangtze Port 
 Regulations) * — August, 1898.^ 
 
 THE YANGTZE REGULATIONS, 1898. 
 
 Art. L — Former Regulations rescinded. — The Revised Regulations of Trade 
 on the Yangtze-kiang (1862) having been amended and the substance of their 
 provisions having been incorporated in the present Yangtze Regulations, the 
 said Revised Regulations of Trade on the Yangtze-kiang are hereby abrogated, 
 together with the Port and Customs Regulations thereon dependent. 
 
 Art. 2. — Ports, Stages, and Passenger Stations. — The merchant vessels of 
 the Treaty Powers are authorised to trade on the Yangtze-kiang at the follow- 
 ing Treaty ports : — 
 
 Chinkiang, Nanking, Wuhu, Kiukiang, Hankow, Shasi, Ichang, 
 and Chungking: 
 
 * Text as published by order of the Inspector General of Customs. Printed also in 
 China, 1899, No. i, p. 252 ; Rockhill, p. 324 ; Hertslet, p. 723. 
 
 In connection with these regulations see also Inland waters steam navigation Regula- 
 tions, July 28, 1898 (No. 1898/17, ante) ; Article 10 and Annex C of the British Com- 
 mercial Treaty of September 5, 1902 (No. 1902/7, post) ; Article 8 and Annexes 1 and 2 of 
 the Japanese Commercial Treaty of October 8, 1903 (No. 1903/4, post). 
 
 t In the official print published by the Maritime Customs, these regulations bear no 
 indication of date save that of the year. 
 
 t Rules for joint investigation in cases of confiscation and fine by the custom-house 
 authorities, signed at Peking, May 31, 1868 (See Hertslet, p. 655). 
 
 § The date of these supplementary rules, as given in Chung Hua Fa Kuei Ta Ch'iian 
 (published by Kuang I Shu Chii, Shanghai, 1913) is September 3, 1898.
 
 164 CHINA TREATIES AND AGREEMENTS 
 
 and to land and ship goods in accordance with special regulations at the follow- 
 ing non-Treaty ports : — 
 
 Tatung and Anking, in Anhwei ; Hukow, in Kiangsi; Lukikow and Wusueh, 
 
 in Hukwang. 
 
 Shipment or discharge of cargo at any other points on the river is prohibited, 
 and any violation of the prohibition will be dealt with in accordance with the 
 Treaty provisions applicable to clandestine trade along the coast ; but passengers 
 and their baggage may be landed and shipped at any of the regular passenger 
 stations, at present consisting of — 
 Luchingchiang (Tungchow district), Tienhsingchiao (Taihsing district), Kiang- 
 
 yin, and Iching, in Kiangnan; Hwangtzekang, Hwangchow, Chinghokow 
 
 (also known as Chinghonao), and Hsinti, in Hukwang: 
 passengers' baggage must not contain articles subject to Duty, and the presence 
 of dutiable articles will render the whole liable to confiscation. 
 
 Art. 3. — Three Classes of Vessels. — Merchant vessels trading on the river 
 are to be divided into three classes : — 
 
 1st class : sea-going vessels trading for the voyage up river beyond Chinkiang. 
 
 2nd class : river steamers running regularly between any of the river ports or 
 Shanghai and any river port. 
 
 3rd class: small craft (lorchas, papicos, junks, etc.). 
 
 These three classes of vessels will be dealt with according to Treaty and the 
 i:ules for the ports traded at. 
 
 Art. 4. — Sea-going Vessels. — Sea-going vessels trading no further up river 
 than Chinkiang will be dealt with at Chinkiang in every respect like vessels 
 trading at other coast ports ; but sea-going vessels on a voyage further Up river 
 than Chinkiang become thereljy vessels trading on the river of the first class set 
 forth in the preceding Article: such merchantmen, whether steamers or sailing 
 vessels, must deposit their Registers with the Consul, or, if, consularly unrepre- 
 sented, with the Customs, at Shanghai, Woosung, or Chinkiang, where the Cus- 
 toms, on receipt of a consular application or a deposit of papers, will issue a 
 certificate to the vessel, to be called the "Special River Pass," on which shall be 
 entered the vessel's name, flag, registered tonnage, general cargo, and armament. 
 The vessel may then proceed up river and at whatever Treaty ports she trades 
 must report and clear, load and unload cargo, and pay Dues and Duties in the 
 same manner as at other Treaty ports along the coast. On return to the port that 
 issued it — Chinkiang, Woosung, or Shanghai — the "Special River Pass" is to be 
 surrendered to the Customs, and the Customs, on having ascertained that all 
 Dues and Duties have been paid and all other conditions satisfied, will then issue 
 the Grand Chop to enable the vessel to procure her Register and proceed to sea. 
 
 Art. 5. — River Steamers. — Any steamer intended to trade regularly on the 
 river may deposit her Register at the Consulate at Shanghai, or, if consularly 
 unrepresented, at the Custom House, when the Customs, on the receipt of a con- 
 sular application or on the deposit of the Register, will issue a certificate, on 
 which shall be entered the vessel's name, flag, registered tonnage, and armament, 
 to be called the "River Pass," that shall be valid during the current year : such 
 "River Pass" must be renewed every year either at Shanghai, or at Hankow
 
 NUMBER 1898/18: AUGUST, 1898 165 
 
 or Ichang in the case of river steamers trading above those places and not re- 
 turning to Shanghai. 
 
 River Pass steamers will report and clear, load and discharge, and pay Dues 
 and Duties in accordance with the Customs Regulations of the port concerned; 
 their Tonnage Dues are to be paid at the ports which issue or renew the River 
 Pass (Shanghai, Hankow, or Ichang). 
 
 Infringement of River Port Regulations will be punished by the infliction of 
 the penalties in force at other Treaty ports ; for a second ofifence the River Pass 
 may be cancelled and the steamer refused permission to trade thenceforward 
 above Chinkiang. 
 
 Any steamer not provided with a River Pass if proceeding above Chinkiang 
 will come under the rule affecting sea-going vessels laid down in Art. 4 and will 
 be treated accordingly. 
 
 Art. 6. — River Pass Steamers Cargo. — The former regulation having been 
 abrogated which made it obligatory to deposit Coast Trade Duties simultaneously 
 with paying Export Duties, River Pass steamers will now pay Duties in the same 
 way as vessels at other Treaty ports along the coast ; that is, Export Duties at the 
 port of departure before shipment of exports, and Import or Coast Trade Duties 
 at the port of discharge before release of imports, and, similarly, they will ship, 
 tranship, and discharge cargo after report, examination, and issue of Permit, m 
 the same way as vessels at Treaty ports along the coast. 
 
 When Tea is landed by a River Pass steamer, the consignee, instead of 
 paying Coast Trade Duty, may deposit a Bond for the amount: on proof of 
 reshipment within a year the Bond will be cancelled. When reshipped Tea 
 is relanded at another port — e.g., reshipped at Hankow and relanded at Shanghai, 
 — a new Bond will be required in lieu of Coast Trade Duty, to be cancelled on 
 subsequent reshipment ; and so on. 
 
 Art. 7. — Small Craft (Lorchas, Papicos, Junks, etc.) : — 
 
 (fl) Lorchas, etc., owned by Foreigners, if provided with Registers and 
 entitled to fly national flags, are required to take out a Special River Pass 
 either through the Consulate or from the Customs direct at Chinkiang if pro- 
 ceeding further up the river. They will report, work cargo, and pay Duties 
 like other sea-going Special River Pass vessels. 
 
 (&) Papicos, etc., owned by Foreigners, but not provided with Registers or 
 entitled to fly national flags, are to take out Customs Registers at the port they 
 belong to, and report, work cargo, and pay Duties in the same way as lorchas, etc. 
 
 (c) Chinese junks chartered by Foreigners are only available for conveying 
 Foreign-owned cargo from Treaty port to Treaty port ; they must take out special 
 junk papers at the Customs, to be obtained in exchange for Bonds executed at 
 and deposited with the Customs, the conditions of the Bond being that the cargoes 
 are bond fide Foreign property and will be landed and pay Duty at a Treaty 
 port and the penalty that if the cargoes fail to be so landed and pay Duty no 
 chartered junk will thereafter be cleared for the Foreigner in question. Such 
 junks to report, work cargo, and pay Duties in the same way as lorchas, papicos, 
 etc. 
 
 Art. 8. — Cargo Certificates. — Special River Pass merchantmen, River Pass
 
 166 CHINA TREATIES AND AGREEMENTS 
 
 steamers, and lorchas, papicos, and junks, etc-, must apply to the Customs at 
 the port of departure for a Cargo Certificate {Tsiing Tan), which, on the vessel's 
 arrival at the port of destination, must be handed in to the Customs before per- 
 mission to discharge can be given. The vessel will be responsible for the Duties 
 on all goods entered on the said Cargo Certificate and not landed on Permit at port 
 of discharge. 
 
 Art. 9. — Miscellaneous. — Any trading vessel falling in with a revenue cruiser 
 or Customs boat on the Yangtze-kiang is to produce her papers for inspection if 
 examination of them is required. Vessels unprovided with proper papers will 
 be dealt with under the Treaty Articles penalising clandestine trade along the 
 coast. 
 
 The Customs may seal the hatches of any vessel trading on the Yangtze and 
 may place Customs officers on board to accompany her on the trip, whether up 
 stream or down. 
 
 Special River Pass vessels of the first class are not required to anchor to 
 exhibit their papers at the intermediate ports passed and hot traded at. 
 
 Art. 10. — Yangtze Customs and Port Regulations. — The adoption and 
 promulgation of new Regulations for vessels trading on the Yangtze having 
 rendered meaningless sundry Customs and Port Regulations which guided pro- 
 cedure under the former system, and having necessitated the substitution of fresh 
 regulations and different practice under the system now introduced, the ports 
 concerned (Shanghai, Chinkiang, Nanking, Wuhu, Kiukiang, Hankow, Shasi, 
 Ichang, and Chungking) will proceed forthwith to arrange and publish new rules 
 and regulations, and these are, on the one hand, to facilitate trade and, on the 
 other, to protect revenue and prevent smuggling. 
 
 The above Regulations are open to revision when and if necessary. 
 
 CUSTOMS REGULATIONS FOR YANGTZE PORTS. 
 
 All Regulations hitherto existing. Port and Customs, having been declared 
 abrogated and fresh Regulations and different practice having been thereby neces- 
 sitated, the following Customs Rules, drawn up to give effect to the Yangtze 
 Regulations of 1898, are now published for general information, and will be 
 operative on and after the 1st day of April 1899. 
 
 I. — General. 
 
 1. Anchorages. — For the shipment and discharge of cargo vessels must take 
 up the berths in the harbour assigned them by the Harbour Master. 
 
 The harbour limits of the port are: — 
 
 {To he entered by each port-) 
 
 Cargo-boats, sampans, etc., are forbidden to approach incoming vessels before 
 they are properly moored. 
 
 2. Cargo-boats. — Cargo-boats must be registered at the Custom House, and 
 their numbers conspicuously painted on them in English and Chinese.
 
 NUMBER 1898/18: AUGUST, 1898 167 
 
 3. Working cargo. — The landing and shipment of cargo or ballast can only 
 take place between sunrise and sunset, and cannot go on without special per- 
 mission on Sundays or holidays. 
 
 Cargo landed or shipped without a Permit is liable to confiscation. 
 
 4. Shut-out cargo. — Cargo for which a Shipment Permit has been issued 
 but which cannot be received on board must be reported and await Customs 
 examination before being relanded. 
 
 5. Imports to be discharged before loading exports. — River Pass steamers 
 excepted, merchant vessels must complete the discharge of import cargo before 
 commencing to receive on board exports. 
 
 Foreign Opium. — Foreign Opium must be landed into the Customs Opium 
 Godown. 
 
 Munitions of War. — Munitions of War cannot be landed until a Munitions 
 Special Permit from the Customs has been obtained. 
 
 Invoices. — In the case of Foreign goods from abroad to pay Duty at a river 
 port the importer may produce his botid fide invoice; if the invoice does not in- 
 clude freight and insurance, 10 per cent, will be added on to the invoice value in 
 the case of goods paying ad valorem Duty, but the Customs reserve the right 
 not to accept invoices as a statement. 
 
 Through Cargo. — Through cargo from Ichang to Shanghai and vice versa 
 may be applied for at Hankow to be transhipped en bloc. 
 
 Exemption and Duty-paid Certificates, etc. — Exemption and Duty-paid Cer- 
 tificates, etc., should be presented to the Customs simultaneously with the con- 
 signee's Application for Discharge Permits. 
 
 6. Exports. — Goods for export must in all cases be brought to the Customs 
 Jetty, or, in specially allowed cases, to godowns approved by the Customs, or 
 to hulks, and will be examined by the Customs upon the receipt of Application for 
 Shipment Permit giving all necessary particulars — destination, denomination, 
 number of packages, marks, numbers, weight, value, etc. — and made out in 
 Chinese and English. Godowns with examined export cargo may be locked 
 by the Customs and, similarly, the hatches of cargo-boats with such goods may 
 be sealed, and the merchandise must not be removed until after payment of 
 Duty and issue of Permit. After examination a Customs Memo, will be issued, 
 and upon the production of the bank receipt for the Duty the Shipment Permit 
 will be granted (i-e., the Shipping Order will be stamped). 
 
 7. Duties (Shanghai practice). — Cargo from or to river ports being now 
 required to pay Duties in the same manner as at coast ports — i.e., Export Duty 
 before shipment and Import or Coast Trade Duty at the port of discharge before 
 release, — the following changes in local procedure are necessitated at Shanghai: — 
 
 (a) Imports from River Ports. — Import Applications for Discharge Permits 
 will be required in all cases and goods will be examined. Goods of Chinese origin 
 will pay Coast Trade Duty if provided with Duty-paid Certificates, and will also 
 lodge a full Export Duty if without such Certificates; Foreign goods, unless 
 covered by an Exemption Certificate, will pay Import Duty. 
 
 Re-export Certificates for imports reshipped after arrival will no longer be 
 required or issued for return to original port.
 
 168 CHINA TREATIES AND AGREEMENTS 
 
 (b) Exports to River Ports. — Chinese goods will pay Export Duty before 
 shipment and Coast Trade Duty at port of arrival, and will go forward under 
 cover of a Duty-paid Certificate. 
 
 (c) Re-exports to River Ports will be treated in the same manner as re- 
 exports to coast ports ; that is, Chinese goods will be granted Coast Trade Duty 
 Drawbacks and go forward under Duty Proof, paying Coast Trade Duty at port 
 of re-entry. Foreign goods may, at applicant's option, go forward under Ex- 
 emption Certificate, or apply for Drawback and pay Import Duty at destina- 
 tion. 
 
 Applications to re-export should be made out on the usual re-export form, 
 and applicants must be careful to state what document is required {e.g., Exemp- 
 tion Certificate, Drawback, etc.). 
 
 (d) Transhipments. — Goods intended for transhipment at Shanghai if from 
 river ports should be so described on the Export Application at the port of ship- 
 ment ; failing such description, they will be liable to examination and payment 
 of Duty at Shanghai. Imports from abroad for transhipment to river ports must 
 be applied for on Transhipment Application form. Goods originally declared 
 for Shanghai, but the destination of which, either before or on arrival of the 
 goods at Shanghai, it is subsequently desired to change, must be applied for 
 on a Transhipment Application form, or they will be subjected to examination 
 and payment of Duty. 
 
 Transhipments must in all cases take place within five days after arrival of 
 importing vessel, otherwise the goods concerned will be treated as imports. All 
 goods in course of transhipment are liable to examination if required by the 
 Customs- 
 
 8. Tea Bonds. — When Tea is landed by a River Pass steamer, the con- 
 signee, instead of paying Coast Trade Duty, may deposit a Bond for the amount : 
 on proof of reshipment within a year the Bond will be cancelled ; if not re- 
 exported within that period the amount of Coast Trade Duty named in the Bond 
 will be collected. When reshipped Tea is relanded at another port — e.g., re- 
 shipped at Hankow and relanded at Shanghai, — a new Bond may be tendered in 
 lieu of Coast Trade Duty, to be cancelled on subsequent reshipment ; and so on. 
 Bonds ought to be handed in for cancellation not later than one week after the 
 shipment. 
 
 II. — Sea-going Vessels. 
 
 N .B. — Two classes of sea-going vessels visit Chinkiang, viz., those which do, 
 and those which do not, pass on up river. The first follow coast port rules ; the 
 second, Yangtze Regulations. 
 
 9. (a.) Chinkiang procedure. — Sea-going vessels, Ningpo boats, lorchas, 
 and such-like craft, together with steamers not provided with a River Pass, must 
 be reported by the Consul, or lodge their papers with the Customs if they have 
 no Consul, on arrival at Chinkiang, and must deliver to the Customs a manifest 
 of the cargo on board (together with the Tonnage Dues and Cargo Certificates 
 if they have them), after which the Permit to Open Hatches will be issued. 
 
 Sea-going vessels trading no further up river than Chinkiang will be dealt
 
 NUMBER 1898/18: AUGUST, 1898 169 
 
 with at Chinkiang in every respect like vessels trading at other coast ports — i.e., 
 the landing and shipment of cargo in accordance with the Customs Regulations 
 having been completed, all Dues and Duties having been paid, and the manifest 
 of the export cargo having been handed to the Customs; the Customs Clearance 
 will be issued, upon which the vessel may receive back her papers and clear at the 
 Consulate. 
 
 In the case of vessels arriving at Chinkiang from sea and, after working 
 cargo there, about to proceed to a port further up river, the landing and ship- 
 ment of cargo having been completed, all Dues and Duties having been paid, and 
 a manifest of the cargo placed on board at Chinkiang having been handed to the 
 Customs, the Customs Clearance and Cargo Certificates will be issued, and upon 
 the application of the consul who holds the ship's papers, or of the master in the 
 event of the papers having been lodged with the Customs, the ship's hatches will be 
 sealed and a " Special River Pass " will be granted, upon which the vessel may 
 leave the anchorage on her voyage up the river ; if the ship's papers held by Con- 
 sul or lodged at Customs are merely the " Special River Pass," issued at Shanghai 
 or Woosung, that document ought to be vised by the Customs before departure. 
 On the return to port from up river of vessels holding their " Special River 
 Pass," from the Chinkiang Customs, the Clearances issued by the up-river 
 Custom Houses, together with a manifest of the cargo on board, must be handed 
 in to the Chinkiang Customs, when, upon the surrender of the " Special River 
 Pass," the final Customs Clearance (Chinkiang Grand Chop) will be issued, and 
 the vessel will be at liberty to receive back her papers and proceed to sea. 
 " Special River Pass " vessels from Shanghai or Woosung will similarly sur- 
 render the same papers there- 
 
 10. (b.) Up-river port procedure. — On arrival at ports on the river above 
 Chinkiang vessels provided with the " Special River Pass " shall lodge that docu- 
 ment with the Consul or, where there is no Consul, with the Customs. Upon 
 receipt of Consular Report or " Special River Pass," together with a manifest of 
 the import cargo (which should be accompanied by Tonnage Dues and Cargo 
 Certificates), the Permit to Open Hatches will be issued, and on consignees apply- 
 ing, specifying on their Applications, in Chinese and English, the nature of the 
 goods, the number of packages, with marks and numbers, weight, value, etc., 
 Permits will be issued authorising the discharge of consignments — 
 
 (a) into registered cargo-boats, which must repair to the Customs Jetty for 
 examination, after which Duty Memos, will be issued and, on payment of Duty, 
 Release Permits will be granted authorising the landing of the goods (i.e., the 
 bills of lading will be stamped) ; or 
 
 (b) under approved guarantee into cargo-boats, godowns, or hulks, where 
 they will be examined by the Customs, after which Duty Memos, will be issued 
 and when Duty is paid, Release Permits granted. 
 
 11. Up-river Customs Clearance. — The landing and shipment of cargo 
 having been completed and all Dues and Duties having been paid, a manifest 
 of the export cargo must be handed to the Customs before 3 p. m. The Customs 
 Clearance will then be issued, on which the vessel may apply for the return of the 
 " Special River Pass " and proceed. The Customs will be at liberty to seal the
 
 170 CHINA TREATIES AND AGREEMENTS 
 
 hatches and place Customs officers on board to accompany vessels up or down 
 river. 
 
 N.B. — The Customs Clearance or Grand Chop is simply a receipt for Dues 
 and Duties, on the exhibition of which the Treaties entitle vessels to recover 
 the papers deposited at the Consulate. It is the Consular Clearance, and not 
 the Customs Grand Chop, that specifies the port to which a vessel is to go and 
 constitutes her Port Clearance. 
 
 III. — River Pass Steamers, 
 
 12. Chinkiang and up-river procedure. — Steamers plying under the " River 
 Pass " on arrival at a port, whether boun.d up or down river, shall exhibit that 
 document to the Customs. 
 
 13. River Pass steamer imports. — River Pass steamers having on board 
 cargo to be discharged shall deliver the Cargo Certificate for the port con- 
 cerned and which was issued at the port of shipment, together with the inward 
 manifest signed by the master and the Tonnage Dues Certificate, to the Cus- 
 toms, whereupon consignees of import cargo may hand in Applications con- 
 taining all necessary particulars, and submit their consignments to Customs 
 examination ; after payment of Duties they will be granted Release Permits. For 
 the discharge of a river steamer's total manifested cargo into registered cargo- 
 boats, hulks, and godowns, a General Transhipment Permit can be obtained on 
 complying with the special rules therewith connected. No cargo shall leave 
 cargo-boats, hulks, or godowns without a Permit. Merchandise arriving in 
 excess of the quantity noted in the Cargo Certificate or manifest is liable to 
 confiscation. The importing vessel will be held responsible for the Duties of all 
 goods entered on the Cargo Certificate and not landed. 
 
 14. River Pass steamer exports. — Goods for shipment by River Pass steam- 
 ers must be reported for examination, pay Duties, and take out Shipment Per- 
 mits in just the same way as goods for shipment by other vessels. 
 
 15. Customs Clearance. — River Pass steamers neither landing nor shipping 
 cargo may proceed on their voyage after the inspection of the River Pass by the 
 Customs. Steamers with cargo to land or ship are to hand the export manifest 
 to the Customs when they have completed landing and shipment ; the Cargo 
 Certificates will then be issued and the River Pass and Tonnage Dues Certificate 
 returned to the master ; the steamer may then proceed on her voyage. 
 
 IV. — Small Craft (Lorchas, Papicos, Chartered Junks, etc.). 
 
 16. Lorchas, etc. — Small craft (lorchas, papicos, junks, etc) owned or 
 chartered by Foreigners will be treated in accordance with the Yangtze Regula- 
 tions of 1898. They are to take up the berths assigned in the proper anchorage, 
 and report, work cargo, and pay Duties, etc., like sea-going Special River Pass 
 vessels. Chartered junks are only available for carrying Foreign-owned cargo 
 from Treaty port to Treaty port, and must take out special papers at the Customs 
 in exchange for properly executed Bonds. 
 
 17. Steam-launches. — All steam-launches, etc., must be registered at the
 
 NUMBER 1898/19: AUGUST 29, 1898 171 
 
 Custom House. The fee for first issue of Customs papers is Hk. Tls. 10 and for 
 each annual renewal Hk. Tls. 2. 
 
 V — Additional. 
 
 18. Office hours. — The office will be open for the transaction of general 
 business from 10 a.m. to 4 p.m., Sundays and holidays excepted. All export 
 manifests and Applications for cargo to be shipped by steamers clearing the same 
 day should be in the office by 3 p.m. All communications regarding Customs busi- 
 ness should be addressed to the Commissioner of Customs. 
 
 The above regulations are open to revision when and if necessary. 
 
 Commissioner of Customs. 
 Custom House, 
 
 , 189... 
 
 NUMBER 1898/19. 
 
 FRANCE AND GREAT BRITAIN. 
 
 Exchange of notes respecting the reciprocal protection of trademarks in China* — 
 
 August 29, 1898. 
 
 (1). — M. Goeffray to the Marquess of Salisbury. 
 
 London, April 20, 1898. 
 
 M. LE Marquis, 
 
 Your Lordship is not unaware that the arrangement effected in 1895 
 between the French and English Governments, with a view to assuring the 
 reciprocal protection, in Morocco, of French trade-marks regularly registered 
 in England, and of English marks regularly registered in France, has brought 
 about the most satisfactory results in repressing counterfeits in the States of His 
 Shereefian Majesty. 
 
 In view of this fortunate result, my Government, deeming that it would be 
 of use to make a new application of the principle of mutual assurance thus con- 
 secrated in the notes exchanged in 1894 between France and England at Tangier, 
 has instructed me to inquire of Your Lordship whether the Government of His 
 Britannic Majesty would not be disposed to conclude a new arrangement, which 
 in this case would be directed towards assuring the reciprocal protection, in 
 China, of French and English marks, on the same conditions upon which the 
 
 * (1) Translated from French text, as printed in Hertslct, p. 585; (2) text as there 
 printed.
 
 172 CHINA TREATIES AND AGREEMENTS 
 
 agreement concerning Morocco was drawn up. If so, M. Hanotaux considers 
 that the arrangement to be reached could take the form of an exchange of 
 notes between the British Cabinet and the Ambassador of the RepubHc in Lon- 
 don : and he is glad to believe that Your Lordship will prove conscious of the 
 usefulness which such an agreement would possess, at a time when China, whose 
 legislation assures no serious protection to trade-marks, is opening its markets 
 more widely to the products of European industry. 
 
 I should be greatly obliged if Your Lordship would be so good as to advise 
 me what action seems possible to you in reference to the present communication. 
 
 I venture to take this occasion to recall to Your Lordship the overtures that 
 the Frendi Ambassador made to the British Cabinet, under date of May 14, 
 1896, with a view to arriving at an arrangement of the same character in regard 
 to the Ottoman Empire. 
 
 Accept, &c. 
 
 (Sgd.) Geoffray. 
 
 (2). — Mr. Balfour to M. Geoffray. 
 
 Sir, ■ Foreign Office, August 29, 1898. 
 
 In your note of the 20th of April last you conveyed to the Marquess 
 of Salisbury the wish of the French Government to enter into an arrangement 
 with this country for the mutual protection of trade-marks in China similar to 
 that concluded in Morocco between Great Britain and France in the year 1895. 
 
 I have the honour to inform you that it has been necessary, before a 
 definite answer could be sent to you, to consult the Board of Trade, and the 
 Law Officers of the Crown, which has led to some delay. 
 
 I have now, however, the pleasure of stating that Her Majesty's Government 
 are prepared to enter into an arrangement such as you propose for the protec- 
 tion of the trade-marks of the two countries in China, which will enable French 
 nationals to obtain protection in the British Consular Courts by registering their 
 marks in this country in cases in which they can be properly registered under 
 English law, and at the same time obtain for British nationals who register their 
 marks in France the protection of the French Consular Courts. 
 
 The necessary steps are being taken for the issue of an Order in Council 
 to give effect to such an arrangement. 
 
 I have, &c. 
 
 A. J, Balfour.
 
 NUMBER 1898/20: OCTOBER 10, 1898 173 
 
 NUMBER 1898/20. 
 
 GREAT BRITAIN (British and Chinese Corporation, Ltd.) AND CHINA. 
 Shanhaiknan-N ewchwang Railway Loan Agreement.^ — October 10, 1898. 
 
 This Agreement is made between his Excellency Hii, Governor of Peking, 
 as Administrator-General of the Railways of North China within and without 
 Shan-hai-kuan, acting under the authority of the Imperial Chinese Government, 
 hereinafter called the " Administrator-General," of the one part, and the Hong 
 Kong and Shanghae Banking Corporation, for themselves and on behalf of 
 the British firm of Jardine, Matheson, and Co., representing as joint agents the 
 British and Chinese Corporation (Limited), hereinafter called the "Corpora- 
 tion," of the other part : 
 
 Whereas, on the 7th day of June, 1898, being the 19th day of the 4th 
 month of the 24th year of the Emperor Kuang-Hsii, a preliminary Agreement was 
 signed at Peking f between the Administrator-General and the Hong Kong and 
 Shanghae Banking Corporation, representing a British Syndicate, for a sterling 
 loan for the equivalent of about 16,000,000 taels for the construction of a rail- 
 way line from Chung-hou-so to Hsin-ming-t'ing and a branch line to Ying-tzu, 
 and for the redemption of existing loans made to the Tien-tsin-Shan-hai-kuan 
 and Tien-tsin-Lukouchiao Railway lines ; and 
 
 Whereas in terms of the preliminary Agreement a period of three months 
 from its date was allowed to the Syndicate to accept or decline its conditions ; and 
 
 Whereas the Hong Kong and Shanghae Banking Corporation, before the 
 expiration of the period named, duly notified the Administrator-General that 
 it is prepared, with certain modifications, to arrange the issue of the loan upon 
 the conditions named in the preliminary Agreement : 
 
 It is now agreed as follows : — 
 
 1. — The Corporation agrees to issue on behalf of the Administrator-General 
 a sterling loan for the amount of 2,300,000/-, the 'proceeds of which are to be 
 applied in the order following: — 
 
 (1.) — To the redemption forthwith or at maturity of the loans and advances 
 specified in the statement attached to this Agreement which have been made by 
 foreign banks to the Tien-tsin-Shan-hai-kuan and the Tien-tsin-Lukouchiao Rail- 
 way lines. $ The Administrator-General hereby certifies that the total amount of 
 the liabilities due by the lines named does not exceed the sum of 3,000,000 taels. 
 
 *Text as reprinted in Rockhill, p. 322, from China (1899), No. 2. p. 29. Printed also in 
 F. E. Review, vol 5, p. 132; Kent, p. 205; Wang, p. 93. 
 
 In connection with this agreement see also the Agreement for the transfer of the Peking- 
 Shanhaikuan Railway to the Chinese Civil Administration, and the Additional Agreement 
 respecting the management of the northern railways, April 29, 1902 (Xo. 1902/4, post) ; 
 and Agreement concerning the Peking-Mukden Railway, March 25, 1908 (No. 1908/5. post). 
 
 The Shanhaikuan-Newchwang Railway constitutes a portion of the line formerly known 
 as the Imperial Railways of North China, and more recently as the Peking-Mukden or 
 Ching-Feng Railway. 
 
 t See Note 1 to this document, post, p. 179. 
 
 t See Note 2 to this document, post, p. 181.
 
 174 CHINA TREATIES AND AGREEMENTS 
 
 (2.) To the carrying out within a period of three years from the date of 
 this Agreement of certain improvements and additions to rolHng-stock on the 
 existing Hnes between Peking and Shan-hai-kuan, recommended by the European 
 Chief Engineer, and estimated by him to cost about 1,500,000 taels. 
 
 (3.) To the construction of a railway hne from Chung-hou-so to Hsin- 
 ming-t'ing, and one from a point on that hne near Shih-san-chan to Ying-tzu, 
 and of a branch hne from Nu-erh-ho to the colheries of Nan P'iao.§ 
 
 The Administrator-General engages that the construction of the new lines 
 here specified shall be completed within a period of three years from the date 
 of this Agreement. 
 
 2. — In the event of the proceeds of this loan being insufficient for the com- 
 pletion of the new lines here specified, the Administrator-General will provide 
 or will arrange with the Imperial Government of China to provide funds from 
 other sources sufficient to complete their construction. 
 
 3. — This loan shall be a first charge upon the security of the permanent 
 way, rolling-stock, and entire property, with the freight and earnings of the 
 existing lines between Peking and Shan-hai-kuan, and on the freights and earn- 
 ings of the new lines when constructed. The Administrator-General shall, dur- 
 ing the continuance of this loan, maintain the railway buildings, works, rolling- 
 stock, and dependencies in good order and condition, and shall increase the roll- 
 ing-stock from time to time to such extent as shall be necessary for the require- 
 ments of the traffic. 
 
 Should it be decided hereafter to construct branch lines or extensions con- 
 necting with the lines herein named, their construction shall be undertaker! 
 by the Railway Administration, and should the funds of the Railway Adminis- 
 tration be insufficient for that purpose, it shall apply to the Corporation for the 
 same. 
 
 4. — The principal and interest of this loan are guaranteed by the Imperial 
 Government of China, and in the event of default in payment of interest or re- 
 payment of principal at due date, the Corporation shall immediately notify the 
 Imperial Government of China thereof, and the Imperial Government of China 
 will thereupon provide the funds necessary to meet such payment in sterling in 
 London. In the event of the Imperial Government of China being unable to 
 provide the funds necessary to meet a payment of interest or principal when 
 called upon by the Corporation to do so in terms of this clause, the said railway 
 lines and the entire property shall thereupon be handed over to representatives 
 deputed by the Corporation to manage, on their behalf, until principal and in- 
 terest of the loan have been redeemed in full, when the management will revert 
 to the Railway Administration. It is provided that should arrears of interest or 
 principal be for a small sum, and it appear desirable to the Corporation to ex- 
 tend the due date of their payment for a term not exceeding three months, it 
 shall be open to the Corporation to do so. 
 
 This arrangement, which differs from other contracts in that the Adminis- 
 trator-General retains control of the railway lines so long as the principal and 
 interest of this loan are regularly paid, has been agreed to in consequence of 
 
 § See Note 3 to this document, post p. 181.
 
 NUMBER 1898/20: OCTOBER 10, 1898 175 
 
 the friendly relations which have long existed between the Contracting Parties. 
 
 5. — No further loan shall be charged upon the security named above, except 
 through the Corporation, until this loan is redeemed, and the Tsung-li Yamen 
 will hand to the British Minister in Peking a written undertaking on behalf of 
 the Imperial Government of China that the railway lines named in this Agree- 
 ment shall never be alienated or parted with. 
 
 6. — During the currency of this loan the Chief Engineer of the railways 
 shall be a British subject. The principal members of the railway staff shall 
 be capable and experienced Europeans, who shall be, as at present, appointed 
 by the Administrator-General of the Railways, and may be, in the event of their 
 misconduct or incompetency, dismissed after consultation with the Chief En- 
 gineer. 
 
 If there are Chinese with sufficient engineering or traffic experience they 
 may be appointed as well as Europeans. 
 
 Should it be necessary to appoint a new Chief Engineer, such appointment 
 shall be made in consultation with the Corporation. 
 
 In addition to the above, a capable and efficient European Railway Ac- 
 countant shall be appointed, with full powers to organize and direct the keeping 
 of the railway accounts, and to act with the Administrator-General and the 
 Chief Engineer of the railway in the supervision of receipts and expenditure. 
 
 7. — The railway lines named in this Agreement being Imperial Chinese 
 Government lines, in the event of war or famine, Chinese Government troops 
 and grain may be transported over the lines free. 
 
 8. — All receipts and earnings of the lines herein specified shall be paid into 
 the credit of the Railway Administration with the Hong Kong and Shanghae 
 Banking Corporation, Tien-tsin, together with 50,000 taels annually, payable 
 under the Board of Revenue's arrangement approved by the Throne, by each 
 of the Provinces of Shansi, Shensi, Honan, and Anhui, for railway purposes 
 for ten years. 
 
 All expenses of working and maintaining the lines will be paid from their 
 receipts and earnings, the remainder of which, together with the provincial funds 
 above named, shall then be charged with the service of this loan. Payments of 
 interest and repayments of principal shall be made in equal monthly instalments, 
 and in accordance with amounts and dates of a yearly Schedule, which will be 
 furnished to the Administrator-General by the Bank. These payments shall 
 be made by the Administrator-General to the Hong Kong and Shanghae Bank- 
 ing Corporation, Tien-tsin, in Kungp'ing sycee sufficient to provide the sterling 
 amount due to the bondholders in terms of the prospectus of the loan, the rate 
 of exchange for these payments being fixed by that Bank as each such payment 
 becomes due. In reimbursement of expenses incurred in connection with the 
 distribution of the service to the bondholders of the principal and interest of 
 the loan, the Hong Kong and Shanghae Banking Corporation, Tien-tsin, shall 
 receive from the Railway Administration a commission of ^ per cent, on the 
 annual loan service, which will be included in the yearly Schedule for the same. 
 
 9. — The term of the loan shall be forty-five years, and, subject to the modi- 
 fication mentioned hereinafter, repayment of principal shall be made, so far as
 
 176 CHINA TREATIES AND AGREEMENTS 
 
 regards the bondholders, in forty equal annual instalments, commencing with the 
 sixth year. 
 
 10. — Interest on the loan shall be charged at the rate of 5 per cent, per 
 annum on the nominal principal, and shall be calculated on the balance of such 
 principal at any time outstanding, payments of interest being made by the 
 Administrator-General in accordance with the amounts and dates specified in 
 the yearly Schedule to be provided, 
 
 11. — The loan will be redeemed by annual drawings in London as provided 
 for in the prospectus. Besides the drawings as provided for, the Administrator- 
 General may, on giving three months' notice to the Corporation, call for extra 
 drawings to be held, for any amount. Bonds so drawn to be redeemed by the 
 Railway Administration at 20 per cent, premium on their par value. Any such 
 extra drawings must take place on the date of the ordinary drawing provided 
 by the prospectus. 
 
 In the event of such extra drawings taking place, subsequent payments of 
 interest will be adjusted in the yearly Schedule to be provided, but repay- 
 ments of principal shall continue unaltered in terms of clause 9 of this Agree- 
 ment until the loan is redeemed. 
 
 The Imperial Government of China hereby engages that this loan shall not 
 be redeemed or converted otherwise than as herein provided. 
 
 12. — The price agreed upon for this loan is 90 per cent, net of the nominal 
 principal, but should an unfavourable state of the market prevail at the time 
 of issuing the prospectus, the Corporation is hereby authorized to reduce the 
 price of the loan, at its own discretion, to not less than 88 per cent, net 
 to the Railway Administration- 
 
 13. — The Corporation are hereby authorized to issue to subscribers to the 
 loan bonds for the total amount of the loan in pounds sterling, in such form and 
 for such amounts as shall appear desirable to the Corporation, and the Minister 
 for China in London will seal all such bonds with his official seal, as evidence 
 that the Imperial Government of China is bound thereby. Each such bond shall 
 bear the following clause : — 
 
 " The Imperial Government of China, pursuant to an Imperial Edict, 
 
 (jated , unconditionally guarantees and declares itself responsible for the 
 
 payment of the principal moneys and interest hereby secured, and in faith 
 thereof it has specially authorized the Chinese Minister in London to seal this 
 bond with his official seal." 
 
 14. — All bonds and coupons and payments made and received in connec- 
 tion with this loan shall be exempt from Chinese taxes and imposts for ever. 
 
 15. — All details necessary for the prospectus and connected with the service 
 to the bondholders of the interest and repayment of principal of this loan, 
 not herein explicitly provided for, shall be left to the arrangement of the Cor- 
 poration, who are hereby authorized to issue a prospectus of the loan as soon 
 as possible after the signing of this Agreement. 
 
 The Tsung-li Yamen will instruct the Chinese Minister in London to co- 
 operate with the Corporation in any matters requiring conjoint action. 
 
 16. — The loan shall be issued to the public as soon as possible after the
 
 NUMBER 1898/20: OCTOBER 10, 1898 177 
 
 signing of this Agreement, and shall date from the first day of the month of 
 its issue. Payment of the entire proceeds will be made in London to the order 
 of the Administrator-General not later than the 31st day of March, 1899; of the 
 above proceeds, the Corporation will advance to the order of the Administrator- 
 General in London, on or before the 31st day of October next, the sum of 
 250,000/.; this advance will bear interest at the rate of 5 3^ per cent, per annum 
 until such time as the first instalment of the loan proceeds shall be available, 
 when it shall be deducted from those proceeds by the Corporation. 
 
 17. — In the event of an unfavourable state of the market rendering the 
 issue of this loan, and the payment of its proceeds to the Railway Administra- 
 tion impossible on the terms named without loss to the Corporation, the Cor- 
 poration shall be granted such extension of time for the performance of its 
 contract with the Administrator-General as the circumstances demand, any ad- 
 vances or instalments of proceeds already made to the Railway Administration 
 being in that case treated as regards payment of interest, repayment of prin- 
 cipal, security, and Imperial Chinese Government guarantee in terms of this 
 present Agreement, and as forming part of the principal amount of this loan. 
 Similar extension of time for the issue of this loan and payment of its 
 proceeds shall also be granted in the event of the Deutsch-Asiatische Bank, 
 Berlin, objecting to its issue before the month of April next, in accordance with 
 the terms of clause 9 of the Agreement for the Chinese Imperial Government 
 Ay2 per Cent. Sterling Loan of 1898.!| 
 
 18. — Im.mediately after the signature of this Agreement, and before the 
 issue of the prospectus of the loan to the public, the Administrator-General 
 will memorialize the Throne and obtain an Imperial Edict confirming and 
 sanctioning the provisions of this Agreement, the Imperial Edict so received 
 being then communicated officially and without delay by the Tsung-li Yamen 
 to the British Minister in Peking. 
 
 19- — The Corporation may, subject to all its obligations, transfer or delegate 
 all or any of its rights, powers, and discretions, to any British Company, Directors, 
 or Agents, in consultation with the Administrator-General, with or without 
 power of further transfer and sub-delegation. 
 
 20. — This Agreement is executed in quadruplicate in English and Chinese, 
 one copy to be retained by the Administrator-General, one by the Tsung-li 
 Yamen, one by the British Minister in Peking, and one by the Corporation. 
 Should any doubt arise as to the interpretation of the contract, the English 
 text shall be accepted as the standard. 
 
 SIGNED AT PEKING by the Contracting parties this twenty fifth day of 
 
 the eighth month of the twenty fourth year of the Emperor Kuang-hsu. being 
 
 the tenth day of October eighteen hundred and ninety eight Western Calendar. 
 
 For the Hong Kong and Shanghae Banking Corporation 
 
 (sgd.) E. G. HiLLiER, 
 
 Agent, 
 Attorney for the British and 
 Chinese Corporation Limited. 
 (Chinese Signatures.) 
 II No. 1898/3, ante.
 
 178 
 
 CHINA TREATIES AND AGREEMENTS 
 
 AMORTIZATION TABLE.* 
 
 i2,300,000 LOAN @ 5%. 
 
 Showing Repayments of Capital by Instalments. 
 
 
 
 Total capital 
 
 Capital 
 
 Interest 
 
 Total 
 
 Year 
 
 Date 
 
 repaid to date 
 
 payments 
 
 payments 
 
 payments 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 1902 
 
 Feb. 1 
 
 
 
 57,500 
 
 57,500 
 
 
 Aue 1 
 
 
 
 57,500 
 
 57.500 
 
 1903 
 
 Feb. 1 
 
 
 
 57.500 
 
 57,500 
 
 
 Aug. 1 
 Feb. 1 
 
 
 
 57,500 
 
 57,500 
 
 1904 
 
 
 
 57,500 
 
 57,500 
 
 
 Aug. 1 
 
 
 
 57,500 
 
 57.500 
 
 1905 
 
 Feb. 1 
 
 
 
 57,500 
 
 57.500 
 
 
 Aug. 1 
 
 57,500 
 
 57,500 
 
 57,500 
 
 115.000 
 
 1906 
 
 Feb. 1 
 
 
 
 56,063 
 
 56.063 
 
 
 Aug. 1 
 
 115,000 
 
 57,500 
 
 56,063 
 
 113,563 
 
 1907 
 
 Feb. 1 
 
 
 
 54,625 
 
 54,625 
 
 
 Aug. 1 
 
 172,500 
 
 57,500 
 
 54,625 
 
 112,125 
 
 1908 
 
 Feb. . 1 
 
 
 
 53,188 
 
 53.188 
 
 
 Aug. 1 
 
 230,000 
 
 57,500 
 
 53.188 
 
 110.688 
 
 1909 
 
 Feb. 1 
 
 
 
 51.750 
 
 51.750 
 
 
 Aug. 1 
 
 287,500 
 
 57,500 
 
 51.750 
 
 109,250 
 
 1910 
 
 Feb. 1 
 
 
 
 50,313 
 
 50.313 
 
 
 Aug. 1 
 
 345,000 
 
 57,500 
 
 50.313 
 
 107.813 
 
 1911 
 
 Feb. 1 
 
 
 
 48.875 
 
 48.875 
 
 
 Aug. 1 
 
 402,500 
 
 57,500 
 
 48.875 
 
 106.375 
 
 1912 
 
 Feb. 1 
 
 
 
 47,438 
 
 47.438 
 
 
 Aug. 1 
 
 460,000 
 
 57,500 
 
 47,438 
 
 104,938 
 
 1913 
 
 Feb. 1 
 
 
 
 46,000 
 
 46,000 
 
 
 Aug. 1 
 
 517,500 
 
 57,500 
 
 46.000 
 
 103,500 
 
 1914 
 
 Feb. 1 
 
 
 
 44.563 
 
 44,563 
 
 
 Aug. 1 
 
 575,000 
 
 57,500 
 
 44.563 
 
 102,063 
 
 1915 
 
 Feb. 1 
 
 
 
 43,125 
 
 43.125 
 
 
 Aug. 1 
 
 632,500 
 
 57,500 
 
 43,125 
 
 100,625 
 
 1916 
 
 Feb. 1 
 
 
 
 41,688 
 
 41.688 
 
 
 Aug. 1 
 
 690,000 
 
 57,500 
 
 41,688 
 
 99.188 
 
 1917 
 
 Feb. 1 
 
 
 
 40,250 
 
 40,250 
 
 
 Aug. 1 
 
 474,500 
 
 57,500 
 
 40,250 
 
 97.750 
 
 1918 
 
 Feb. 1 
 
 
 
 38.813 
 
 38,813 
 
 
 Aug. 1 
 
 805,000 
 
 57,500 
 
 38.813 
 
 96,313 
 
 1919 
 
 Feb. 1 
 
 
 
 Z7,2,7S 
 
 Z7.2,7S 
 
 
 Aug. 1 
 
 862,500 
 
 57,500 
 
 2>7SS 
 
 94,875 
 
 1920 
 
 Feb. 1 
 
 
 
 35.938 
 
 35,938 
 
 
 Aug. 1 
 
 920,000 
 
 57,500 
 
 35.938 
 
 93,438 
 
 1921 
 
 Feb. 1 
 
 
 
 34,500 
 
 34.500 
 
 
 Aug. 1 
 
 977,500 
 
 57,500 
 
 34,500 
 
 92,000 
 
 1922 
 
 Feb. 1 
 
 
 
 Z2>,062, 
 
 33,063 
 
 
 Aug. 1 
 
 1,035,000 
 
 57,500 
 
 33.063 
 
 90,563 
 
 1923 
 
 Feb. ■ 1 
 
 
 
 31.625 
 
 31.625 
 
 
 Aug. 1 
 
 1,092,500 
 
 57,500 
 
 31,625 
 
 89,125 
 
 1924 
 
 Feb. 1 
 
 
 
 30,188 
 
 30,188 
 
 
 Aug. 1 
 
 1,150,000 
 
 57,500 
 
 30.188 
 
 87,688 
 
 1925 
 
 Feb. 1 
 
 
 
 28,750 
 
 28,750 
 
 
 Aug. 1 
 
 1,207,500 
 
 57,500 
 
 28,750 
 
 86,250 
 
 1926 
 
 Feb. 1 
 
 
 
 27,313 
 
 27.313 
 
 
 Aug. 1 
 
 1,265.000 
 
 57,500 
 
 27.313 
 
 84,813 
 
 1927 
 
 Feb. 1 
 
 
 
 25.875 
 
 25,875 
 
 
 Aug. 1 
 
 1,322,500 
 
 57,500 
 
 25,875 
 
 83.375 
 
 1928 
 
 Feb. 1 
 
 
 
 24,438 
 
 24,438 
 
 
 Aug. 1 
 
 1,380.000 
 
 57,500 
 
 24,438 
 
 81,938 
 
 *T 
 
 his table is r 
 
 eproduced from t 
 
 nat printed in Wa 
 
 ng, p. 110. 

 
 NUMBER 1898/20: OCTOBER 10, 1898: NOTES 
 
 179 
 
 
 
 Total capital 
 
 Capital 
 
 Interest 
 
 Total 
 
 Year 
 
 Date 
 
 repaid to date 
 
 payments 
 
 payments 
 
 payments 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 1929 
 
 Feb. 1 
 
 
 
 23,000 
 
 23,000 
 
 
 Aug. 1 
 
 1,437,500 
 
 57,500 
 
 23,000 
 
 80,500 
 
 1930 
 
 Feb. 1 
 
 
 
 21,563 
 
 21,563 
 
 
 Aug. 1 
 
 1,495,000 
 
 57,500 
 
 21,563 
 
 79,063 
 
 1931 
 
 Feb. 1 
 
 
 
 20,125 
 
 20,125 
 
 
 Aug. 1 
 
 1,552,500 
 
 57,500 
 
 20,125 
 
 77,625 
 
 1932 
 
 Feb. 1 
 
 
 
 18,688 
 
 18,688 
 
 
 Aug. 1 
 
 1,610,000 
 
 57,500 
 
 18,688 
 
 76,188 
 
 1933 
 
 Feb. 1 
 
 
 
 17,250 
 
 17,250 
 
 
 Aug. 1 
 
 1,667,500 
 
 57,500 
 
 17,250 
 
 74,750 
 
 1934 
 
 Feb. 1 
 
 
 
 15,813 
 
 15,813 
 
 
 Aug. 1 
 
 1,725,000 
 
 57,500 
 
 15,813 
 
 7Z,ZU 
 
 1935 
 
 Feb. 1 
 
 
 
 14,375 
 
 14,375 
 
 
 Aug. 1 
 
 1,782,500 
 
 57.500 
 
 14,375 
 
 71,875 
 
 1936 
 
 Feb. 1 
 
 
 
 12,938 
 
 12,938 
 
 
 Aug. 1 
 
 1,840,000 
 
 57.500 
 
 12,938 
 
 70,438 
 
 1937 
 
 Feb. 1 
 
 
 
 11,500 
 
 11,500 
 
 
 Aug. 1 
 
 1,897,500 
 
 57,500 
 
 11,500 
 
 69,000 
 
 1938 
 
 Feb. 1 
 
 
 
 10,063 
 
 10,063 
 
 
 Aug. 1 
 
 1,955,000 
 
 57.500 
 
 10,063 
 
 67,563 
 
 1939 
 
 Feb. 1 
 
 
 
 8,625 
 
 8,625 
 
 
 Aug. 1 
 
 2,012,500 
 
 57.500 
 
 8,625 
 
 66,125 
 
 1940 
 
 Feb. 1 
 
 
 
 7,188 
 
 7.188 
 
 
 Aug. 1 
 
 2,070,000 
 
 57.500 
 
 7,188 
 
 64,688 
 
 1941 
 
 Feb. 1 
 
 
 
 5,750 
 
 5,750 
 
 
 Aug. 1 
 
 2,127,500 
 
 57,500 
 
 5,750 
 
 63,250 
 
 1942 
 
 Feb. 1 
 
 
 
 4,313 
 
 4,313 
 
 
 Aug. 1 
 
 2,185,000 
 
 57,500 
 
 4,313 
 
 61,813 
 
 1943 
 
 Feb. 1 
 
 
 
 2,875 
 
 2.875 
 
 
 Aug. 1 
 
 2,242,500 
 
 57,500 
 
 2,875 
 
 60,375 
 
 1944 
 
 Feb. 1 
 
 
 
 1,438 
 
 1,438 
 
 
 Aug. 1 
 
 2,300,000 
 
 57,500 
 
 1,438 
 
 58,938 
 
 
 2,300,000 
 
 2,300.000 
 
 2.702,520 
 
 5,002,520 
 
 Note 1. 
 
 The text of this preliminary agreement is reprinted in Rockhill. p. 317, from China, 
 1899, No. 2, p. 4, as follows : 
 
 Preliminary Loan Agreement for Peking-Newchwang Railway, June 7, 1898. 
 
 " This is a preliminary Agreement made between His Excellency Hu, Governor of 
 Peking and Administrator-General of the Imperial Railways of North China within and 
 without the Great Wall, hereinafter called the Administrator-General, of the onepart; and 
 the Hong Kong and Shanghae Banking Corporation representing a British Syndicate here- 
 inafter called the Syndicate, of the other part. 
 
 " 1.— The Syndicate is hereby authorized by the Administrator-General to make arrange- 
 ments to float and issue, on behalf of the Railway administration on the best terms obtain- 
 able on the market, a sterling loan for the equivalent of about (16,000.000 taels), for the 
 construction of a railway-line from Chung-hou-sou to Hsin-ming-ting, and a branch line to 
 Ying-tzu, and for the "redemption of existing loans to the Tien-tsin-Shan-hai-kuan and 
 Tien-tsin-Lu-kou-chiao lines. 
 
 "2.— The security for the loan shall be the permanent way, rolling-stock, and entire 
 property, together with the freight and earnings of the existing lines between Peking, Tien- 
 tsin, Tang-ku, and Chung-hou-sou, and also of the proposed new lines when constructed, in
 
 180 CHINA TREATIES AND AGREEMENTS 
 
 addition to the rights of mining coal and iron, which will be retained by the Railway 
 administration on each side of the proposed new lines, for a distance to be determined. 
 In the event of default or arrears in payment of interest or repayments of principal, the 
 said railway lines and mines shall be handed over to representatives deputed by the Syndicate, 
 to manage them on their behalf, until principal and interest of the loan are redeemed in 
 full, when the management will revert to the Railway Administration. 
 
 " It will, however, be provided that if such arrears are for a small sum, and it appears 
 desirable to the Syndicate to extend the due date of their payment for a term not exceeding 
 three months, it shall be open to the Syndicate to do so. 
 
 " In the event of any special circumstances arising necessitating the introduction of 
 important changes by the management aforesaid, these changes shall be effected in con- 
 sultation with the Administrator-General, and in the best interests of the railway. In the 
 case of war or famine, troops and grain will be transported over the lines on terms to be 
 arranged hereafter. 
 
 " No further loan, charge, or mortgage shall be charged on the security named above 
 until this loan is redeemed. 
 
 " 3. — During the currency of their loan, the principal members of the railway staff 
 shall be capable and experienced Europeans who shall be, as at present, appointed by the 
 Administrator-General of the Railway, and may be, in the event of their misconduct or 
 incompetency, dismissed, after consultation with the Chief Engineer. If there are Chinese 
 with sufficient engineering or traffic experience, they may be appointed as well as Europeans. 
 Should it be necessary to appoint a new Chief Engineer, such appointment shall be made 
 in consu'tation with the Syndicate. 
 
 " In addition to above, a capable and experienced European railway accountant shall 
 be appointed to inspect all the accounts of the railways. 
 
 " All receipts and earnings of the lines herein specified shall be paid into the credit of 
 the Railway Administration with the Hong Kong and Shanghae Banking Corporation, Tien- 
 tsin, together with 50,000 taels annually payable under the Board of Revenue's arrange- 
 ment, approved by the Throne, by each of the Provinces of Shansi, Shensi, Honan, and 
 Anhui for railway purposes for ten years. 
 
 " All expenses of repairing and maintaining lines will be paid from this account, the 
 remainder of which shall then be charged with the service of this loan. 
 
 "4. — The rate of interest, price, term of years, and other particulars shall be left to the 
 Syndicate to arrange on the best terms possible on the market when the moment appears 
 favourable for floating the loan. Instalments of proceeds will be arranged as far as possible 
 to suit the progress of construction and the requirements of the Administrator-General, 
 interest being calculated from the date of such payments. The Loan will be redeemable 
 by annual drawings to be scheduled in the final Agreement. Besides the drawings so 
 scheduled, the Administrator-General may from time to time, on giving due notification 
 to the Syndicate, call for extra drawings to be held, bonds so drawn being redeemed by 
 the Railway Administration at 20 per cent, premium on their par value. 
 
 " 5. — If it should be found that the Loan cannot be floated without the introduction of 
 some special attraction, the Administrator-General shall m'-morialize the Throne, recom- 
 mending that a Concession of mining rights be granted to the Syndicate at a point or points 
 on the lines, and on terms to be arranged with the Syndicate on the basis of the mining 
 Regulations newly established by the Tsung-li Yamen. The requests of the Syndicate will be 
 confined to mines within a distance of 5 li of the railway. 
 
 "6. — The date of issue of this loan shall be left t'o the discretion of the Syndicate, 
 to be fixed in accordance with the state of the market, but should it be found impossible 
 to issue it before the 1st day of October next, the Syndicate will arrange to advance to the 
 Administrator-General on or about that date, an instalment of about 2,000,000 taels on 
 account of, and repayable out of the proceeds of the loan when floated. The terms of 
 this advance shall be left to the arrangement of the Syndicate on the best terms obtainable, 
 interest not to exceed the rate of 5?/ per cent, per annum, and the Syndicate shall be 
 authorized to issue temporary bonds for the amount if required. 
 
 "7. — For the satisfaction of the investing public who are unacquainted with China, a 
 satisfactory report will be required from District Engineer, Mr. J. Ginnell, as to the con- 
 dition and earning power of the old lines, and as to the route, prospects, and mineral wealth 
 of the new lines to be constructed, and Mr. Ginnell shall be instructed by the Administrator- 
 General to proceed to London as soon as possible after the signing of. this preliminary 
 Agreement, to confer with the Syndicate on these matters. 
 
 " 8. The terms of this preliminary Agreement will, immediately after signature, be 
 
 submitted by the Administrator-General to the Throne for sanction by Imperial Edict, 
 which shall be officially comniunicated by the Tsung-li Yamen to the British Minister in 
 Peking. 
 
 " 9. — Three months from the date of signature of this preliminary Agreement shall 
 be allowed to the Syndicate to accept or decline its terms. Upon their confirmation by the 
 Syndicate, this preliminary Agreement shall be replaced by a definitive Agreement, pro- 
 viding for all details.
 
 NUMBER 1898/20: OCTOBER 10, 1898: NOTES 181 
 
 " Signed at Peking, this 7th^ day of June, 1898, being the 19th day of the 4th moon of 
 the 24th year of the Emperor Kuang Hsii. 
 
 " (Seal of Administrator-General of Railways within 
 and without the Shan-hai-kuan boundary.) 
 " For the Hong Kong and Shanghae Banking Corporation, 
 
 "(Signed) E. G. Hillier, Agent." 
 
 Note 2. 
 
 This statement is given in IVang, p. 109, as follows : 
 
 STATEMENT of loans and advances by Foreign Banks to the Imperial Railways Ad- 
 ministration to be redeemed in terms of this Contract. 
 
 " By the Hongkong and Shanghai Banking Corporation 
 2nd Xov. 1894 to Shanhaikuan section Hongping Tls. 200,000. 
 23rd Oct. 1896 to Lukouchiao section " Tls. 400,000. 
 
 8th June 1897 to Lukouchiao section Kuping Tls. 300.000. 
 
 8th June 1897 to Railway Bonds " Tls. 140,000. 
 
 Tls. 30.000. 
 3rd Dec. 1897 to Peking section " . Tls. 200,000. 
 
 ■■ By the Russo-Chinese Bank 
 One due January 1900 Hongping Tls. 200,000. 
 
 One repayable by monthly 
 Instalments of Tls. 10,000. 
 commencing 1898 " Tls. 400,000. 
 
 " By the Deutsch-Asi.\tische Bank 
 One due Spring 1899 £90,000 say Hongping Tls. 700,000. 
 
 " Due to Jardine, Matheson and Co. Tientsin Tls. 240,000." 
 
 Note 3. 
 
 The agreement for a concession for the operation of the Nan-P'iao mines was con- 
 cluded on October 10, 1898, in terms reprinted in Rockhill, p. 328, from China, iSgg, No. 2, 
 p. 40, as follows : 
 
 Agreement for Concession for Nan-P'iao Mines. — October lo, 1898. 
 
 "This is an Agreement between his Excellency Hu, Governor of Peking, Administrator- 
 General of the railways of North China, within and without Shan-hai-kuan, hereinafter 
 called the ' Administrator-General,' of the one part, and the Hong Kong and Shanghae 
 Banking Corporation, for themselves and on behalf of the British firm of Jardine, Matheson, 
 and Co., representing as joint agents the British and Chinese Corporation (Limited), here- 
 inafter called the ' Corporation,' of the other part. 
 
 " 1. — The Administrator-General having purchased the coal mines known as Shang 
 P'iao, Chung P'iao, and Hsia P'iao, at Nan P'iao, in the district of Ch'ao Yang, now enters 
 into an Agreement with the Corporation to operate the same on joint account. Any other 
 mines in the neighbourhood of the above, or the railway line between Nu-erh-ho and Nan 
 P'iao, and between Nan P'iao and Chinchou that may subsequently be acquired by purchase or 
 otherwise by the Administrator-General, shall also come under the terms of this Agreement 
 for operation either on joint account or by the Corporation alone, it being always provided 
 that all operations under the terms of this Agreement are optional to the Corporation, and 
 subject to a favourable report from its Mining Engineer. 
 
 "2. — The Corporation shall send its own Alining Engineer as soon as possible to examine 
 the property acquired, and will indicate, after consultation with the Administrator-General 
 and the Chief Engineer of the Railway Administration, the points at which it is desirable 
 to sink shaft and commence operations. The IMining Engineer of the Corporation will also 
 make a survey of the whole area above named, with a view to the extension of operations, 
 and on the receipt of his Report upon the same, the Administrator-General will take immedi- 
 ate steps for the purchase of the necessary property at the points recommended in the 
 Report. No compulsion shall be used in the purchase of such property if the owner refuses 
 to part with it, but in such case it will be arranged that the Administrator-General shall have 
 the first refusal thereafter. 
 
 " 3.— An estimated capital of 1,000,000 Kung-p'ing taels for the opening and working 
 of the mines shall be provided in equal shares by the Administrator-General and the Corpor- 
 ation, either by private subscription, the public issue of script, or in such other manner as
 
 182 CHINA TREATIES AND AGREEMENTS 
 
 each party may deem necessary in its own interests. Of the estimated capital of 1,000,000 
 taels the sum of 125,000 taels shall be deposited by the Corporation at the Hong Kong 
 and Shanghae Bank, London, in f sterling not later than the 30th November, 1898, and 
 the sum of 125,000 taels shall be deposited by the Administrator-General at the Tien-tsin 
 branch of the same bank on or before the same date. The balance of the estimated capital, 
 namely, 750,000 taels, shall be similarly provided in equal shares by each party not later 
 than the 30th November, 1899. All such deposits shall be held by the bank to the order of 
 the Corporation for the purchase of plant and the opening and working of the mines. 
 Should an increase of capital be found necessary later on, it shall be similarly provided In 
 equal shares by the Administrator-General and the Corporation. 
 
 "4. — The construction of the branch line from Nu-erh-ho to the Nan P'iao collieries 
 will be carried out by the Administrator-General in terms of his Agreement with the 
 Corporation for the Shan-hai-kuan-Newchwang main line and dependencies. 
 
 " 5. — All matters of exploitation, administration, employes, and finances shall be under- 
 taken by the Corporation in co-operation with the Administrator-General of Railways. 
 
 " 6. — The mines shall have one foreign Manager, appointed by the Corporation, and one 
 Chinese Manager, appointed by the Administrator-General ; the foreign Manager will con- 
 trol the works, and the Chinese Manager will attend to all questions between natives and 
 foreigners. 
 
 " Accounts shall be kept on the foreign system by an European Accountant. 
 
 " All receipts and payments of money will be controlled by the foreign Manager, and 
 audited by the Chinese Manager. 
 
 " Chinese shall be employed in the mines as much as possible, and where aptitude is 
 shown, opportunity will be given to Chinese to fit themselves for posts of responsibility. 
 
 " 7. — The royalty and taxes to be paid by the mines are restricted to the following : — 
 
 (1.) To the Taotai of Jehol an annual fee of 15 taels. 
 
 (2.) To the Imperial Government of China a royalty of 5 per cent, of the output of 
 coal, or its value, at the pit's mouth. 
 
 (3.) To the Mongolian Chief of the district a commuted payment of 1,500 taels 
 per annum. 
 
 (4.) Duty payable by the Shang, Chung, and Hsia P'iao mines, amounting to a total 
 sum of 790 taels per annum. 
 
 " 8. — Machinery and materials required for the use of the mines shall pay one customs 
 duty and a-half on importation, in accordance with the Regulations of the Kaiping mines, 
 and shall thereafter be free from all li-kin or other imposts whatever. The products of the 
 mines when exported from a seaport, shall pay export duty according to the Customs Tariff 
 on the produce of Chinese Government mines. 
 
 " 9. — The Railway Administration agrees to carry over its lines the output of the mines 
 at rates not exceeding a basis of 720 big cash per ton from Nan P'iao to Nu-erh-ho up to 
 a monthly tonnage of 30,000 tons, anything above that quantity to be carried at 25 per 
 cent, discount on this Tariff, and 10 big cash per ton per mile on the main lines. These 
 rates include conveyance of the coal from the junction of colliery sidings to the Mining 
 Company's yard at Yingkou, the filling and discharge of cars being done by the Mining 
 Company. These rates may be modified from time to time by arrangement between the 
 Administrator-General, the Chief Engineer of the Railways, and the Corporation ; cases of 
 dispute shall be referred to an arbitrator to be agreed upon by the parties concerned, and 
 so far as they refer to the handling of coal at the mines, wharves, docks,. &c., the rules 
 of the Kaiping mines shall be taken as a precedent. 
 
 " 10. — In consideration of the special transport rates given by the Railway Administration 
 to the Mining Company, that Company will provide fuel to the railway at the following 
 rates : — 
 
 (1.) Best hand-picked lump coal for locomotives, 4,000 big cash, free in cars, per 
 ton at colliery. 
 
 (2.) Ordinary lump coal for stationary boilers, &c., 3,000 big cash, free in cars, per ton 
 at colliery. 
 
 (3.) Small coal for kilns and tank heating, 2,200 big cash, free in cars, per ton at 
 colliery. 
 
 (4.) Best coke, 8,000 big cash, free in cars, per ton at colliery. 
 
 Other qualities to be arranged on the above basis of charges, as may be from time 
 to time necessary. 
 
 "11. — In matters of compensation to miners for injuries, of limit of working hours, 
 &c., the Corporation shall be guided by European and American Mining Regulations bear- 
 ing on these questions, so far as these are applicable. 
 
 " 12. — Should the Corporation desire to issue a prospectus for the mines and invite 
 subscriptions from the public at any time, the Administrator-General will grant his 
 official seal to such documents as may be necessary for the ratification to the public of the 
 Corporation's rights. 
 
 " 13. — Wherever it shall be necessary to construct roads, bridges or accessories neces- 
 sary for the working of the mines, or for the transport of their produce, the Corporation
 
 NUMBER 1899/1 : APRIL 14, 1899 183 
 
 will notify the Administrator-General, who shall thereupon make prompt arrangements with 
 the local officials to facilitate the carrying out of the same. 
 
 " 14. — At the end of every half-year, an account of profit and loss, signed by the 
 foreign and Chinese Managers, shall be rendered to the Administrator-General. All the 
 working expenses of the mines, deterioration of plant, salaries of Europeans and Chinese 
 staff, the royalty and taxes on output, customs import and export dues, and disburse- 
 ments of every nature shall be placed to the debit of this account, the net balance of 
 which, if a profit shall be shared equally by the Administrator-General and the Corpora- 
 tion, if a loss, will fall equally on both parties. 
 
 " 15. — Immediately after the signature of this Agreement the Administrator-General 
 will memorialize the Throne, and obtain an Imperial Edict confirming and sanctioning the 
 provisions of this Agreement. 
 
 The Imperial Edict so received will be then communicated officially and without delay 
 by the Tsung-li Yamen to the British ^Minister at Peking, that he may take the usual 
 steps with regard to commercial undertakings. 
 
 " 16. — This Agreement is executed in quadruplicate, in English and Chinese, one copy 
 to be retained by the Administrator-General, one by the Tsung-li Yamen, one by the 
 British Minister at Peking, and one by the Corporation. Should any doubt arise as to the 
 interpretation of the contract the English text shall be accepted as the standard. 
 
 " Signed at Peking by the Contracting Parties this twenty-fifth day of the eighth 
 month of the twenty-fourth year of the Emperor Kuang Hsii, being the tenth day of October, 
 one thousand eight hundred and ninety-eight. Western Calendar. 
 
 (Seal of the Railway Administration.) 
 
 " (For the Hong Kong and Shanghae Banking Corporation.) 
 
 " (Signed) E. G. Hillier, 
 
 "Agent, Attorney for the Btitish and Chinese Corporation {Limited.) " 
 
 Consult the Agreement of March 25, 1908 (Xo. 1908/5, post) in regard to the abandon- 
 ment of this project. 
 
 NUMBER 1899/1. 
 
 GREAT BRITx\IN (Mr. Pritchard Morgan) AND CHINA (Hua Yi Company 
 
 and Hui Tung Company). 
 
 Regulations for the working of mines in Szechuan, under Chinese and foreign 
 
 direction/^— April 14, 1899. 
 
 1. — The Szechuan Mining Bureau establishes the Hua Yi Company, by 
 whom an Agreement is drawn up with the Hui Tung Company that the work 
 is to be done by Chinese and foreigners conjointly to their mutual benefit. Prof- 
 its are to be divided proportionately, so as to avoid trouble and disputes. 
 
 Both Companies shall obey all the Regulations mentioned in the Agree- 
 ment and the existing Rules memorialized and adopted by the head office. 
 
 2.— The Hua Yi Company is to subscribe a sum of 1.000,000 taels for the 
 purchase of land. This must be Chinese and not foreign inoney. 
 
 This Company is to btiy and own all mining lands and carry out all negotia- 
 tions. The Hui Tung Company have no interest in the prices of land, whether 
 dear or cheap, nor with the amount of capital spent or reserved. When the Hua 
 Yi Company has bought the land and obtained the right to open mines, the same 
 is to be handed over to the Hui Tung Company for working. In the Hui Tung 
 
 *Text as reprinted in Rockhill, p. 348, from China, 1900, No. 1, p. 135. Printed also 
 in the F. E. Review, vol. 11, p. 32. See also China, 1899, No. 1, passim.
 
 184 CHINA TREATIES AND AGREEMENTS 
 
 Company there are foreign merchants ; they are not to be allowed to buy mining 
 property from any other Chinese, so as to avoid all complications. 
 
 3. — The Hui Tung Company, with a Chinese Managing Director and a 
 foreign Assistant Director, is to prepare a working capital of 10,000,000 taels, to 
 be formed first of 50 per cent. Chinese shares and next 50 per cent, of foreign 
 shares. 
 
 Shareholders of all nationalities are allowed to take shares out of the 50 
 per cent, allotted to foreigners. There can be no monopoly for any one country. 
 Now Mr. Morgan, an English merchant, has taken shares, and undertakes to 
 assist in carrying out the work. Shareholders of all other nationalities who 
 should hereafter take shares will be supplied with share certificates, paid divid- 
 ends, and refunded capital according to the number of shares they take. Should 
 any other country also start a Company on the same lines, with both Chinese 
 and foreign shareholders, the mines of the one Company will have to be kept 
 distinct from those of the other. Different Prefectures and districts will be 
 granted to each Company to work in, and their proceedings should be regularly 
 reported to the head office, but the Rules and Regulations of this Agreement 
 must, however, be complied with by all to prevent any unfairness. Any 
 Company composed of foreign shareholders only and no Chinese shareholders 
 shall not be allowed to work any mines. 
 
 4- — The Hui Tung Company is to send out mining engineers to find out 
 what mines are worth opening. This Company is then to consult with the 
 Hua Yi Company to make maps and insert explanations, and submit the same 
 to the Mining Bureau of Szechuan. If these mines are not already being 
 worked by officials, gentry, or merchants, and if they are not injurious to the 
 place, land is to be at once bought; such land is only to be enough for the 
 shafts and the necessary buildings. If the lands belong to the people, the lease 
 or purchase shall be made by the Hua Yi Company by arrangement with the 
 owners for a reasonable price. It can also be taken as a subscription of capital, 
 and a proportionate value of shares granted to the owner. If it be public property, 
 such as a monastery, temple, &c., the owners have the option of leasing it, rent- 
 ing it, or subscribing it as capital. The Hui Tung Company must wait till 
 land is properly purchased before starting work, and no compulsory pur- 
 chase or seizure of the land will be allowed. 
 
 5. — After each mining property is bought by the Hua Yi Company, it is 
 to be handed over to the Hui Tung Company for working. From the mines 
 worked by the Hui Tung Company, such as coal, iron, petroleum, &c., the 
 Hua Yi Company is allowed to collect rent at the rate of 5 per cent, on the 
 value of the output, no matter whether such mines make money or not. To 
 reckon the producing capacity and the prices of products, whether dear or 
 cheap, the rent is to be paid on the real price at which the Hui Tung Company 
 sells the products. The value must not be underestimated, and any undue advan- 
 tage gained. With regard to gold sand obtained from gold mines, a rent of 
 5 per cent, will be charged on the pure gold obtained after the gold sand has 
 been thoroughly washed, but not on the sand before it has been washed. 
 
 6. — Of the mines worked by the Hui Tung Company, such as coal, iron,
 
 NUMBER 1899/1 : APRIL 14, 1899 185 
 
 petroleum, &c., there shall be paid to the Chinese Government, as producer's tax, 
 5 per cent, on the value of the output of the mines. Export duty shall be 
 paid according to the existing Rules now in force. The Szechuan Mining 
 Bureau shall authorize the Hua Yi Company to collect the producer's tax and to 
 compare the same with the rent, and thus there will be no difference or 
 shortage. No officer shall be deputed for this purpose, so as to save unneces- 
 sary expense. The export duty is to be collected by the custom-house, and 
 after the export duty is paid, no inland li-kin dues will be required. As regards 
 the taxes to be charged on precious metals of all kinds, they are to be decided 
 by the Board of Revenue. 
 
 7. — The Hui Tung Company is to send engineers to find out all the mines 
 that are to be opened and to consult with the Hua Yi Company, which submits 
 the same for the approval of the Mining Bureau. Should a mine be found in 
 a Government hill, the opening of which will not be injurious to the place, per- 
 mission will be granted to open it. The ordinary land tax on such land would, 
 however, be too small a sum for the Company to pay the Government for its use. 
 In the case of Government land, therefore, the 5 per cent, rent and the 5 per 
 cent, producer's tax are to be collected at the same time, and both paid to the 
 Chinese Government; but 10 per cent, of the rent is to be reserved to pay the 
 expenses of the Mining Bureau and the Hua Yi Company. The Hui Tung 
 Company is to pay the export duty. 
 
 8. — The area of Szechuan is very extensive, and all sorts of mines exist. 
 Chinese who work on their own property are only required to obtain the neces- 
 sary permission, pay the necessary taxes, according to the Rules in force, and 
 they are in no way restrained. But if foreign merchants undertake to work 
 the mines, their operations must be limited in some way or other. They must 
 confine themselves to certain intendancies, prefectures, or districts, and not take 
 the whole province as their sphere of work. Now work must be started in the 
 interior first, and at the boundaries afterwards. The Hui Tung Company shall 
 then send engineers to find out first where are mines to be opened and what 
 mines they are : if the same be in districts apportioned to savages, the Hui Tung 
 Company must wait till they find out whether the advantage will be greater 
 than the injury, and devise other means to open them. The Hui Tun^ 
 Company in such event cannot compel the Hua Yi Company to buy the land 
 quickly and hand it over for working. Any possible cause of disturbance must 
 be avoided. 
 
 9. — When prospecting for mines, if any boring or sinking of shafts be neces- 
 sary to examine mineral deposits, an arrangement should first be made by the 
 Hua Yi Company with the land-owner for the Hui Tung Company to compensate 
 him according to market prices for any crops, &c., injured. After the mines 
 are opened, should there be any damage to life or buildings caused by land- 
 slips or subsidence in the mines, the Hui Tung Company shall make charitable 
 compensation. If after mines are opened cemeteries or mortuary shrines are 
 met with, some plan must be devised to avoid them if the owners do not like 
 to remove them for money given ; no excavation will be allowed. In excavating, 
 as long as the galleries dug below the ground are not injurious to the soil above,
 
 186 CHINA TREATIES AND AGREEMENTS 
 
 rascals are not to be allowed to obstruct the work on the grounds that it is in- 
 jurious to " Feng Shui." Local authorities must be applied to for protection. 
 The Hui Tung Company is not, however, allowed to claim compensation on 
 these grounds in case it cannot succeed. 
 
 10. — Whenever it may be necessary to make roads, build bridges, open or 
 deepen rivers, erect sheds, make tools, or other necessaries for mining purposes, 
 and land is required for such purposes, the Hua Yi Company is to buy the land 
 and the Hui Tung Company to pay for it. If water power is required for 
 machinery, and enormous work is done on it, no other person is allowed to make 
 use of it. If branch railways have to be constructed in order to connect the 
 mines with the usual trade routes, a thorough survey must be made of the pro- 
 posed lines and maps drawn with explanations attached. These must be 
 submitted to the Mining Bureau, which will forward them to the Szechuan Vice- 
 roy and head office at Peking for record and sanction. Nothing of the kind 
 should be undertaken without such sanction. If telegraphs and telephones are 
 wanted for connecting the various mines, the same are to be submitted to the 
 Mining Bureau for approval. 
 
 11. — The Hua Yi Company is to deal with all matters of negotiation, and 
 the collection of rent and taxes ; the Hui Tung Company to superintend and 
 work all mines. Each has its own sphere of work, but each Company may in- 
 quire into the other's aflfairs. A Chinese Manager and a foreign Manager should 
 be appointed for each mining work, whose salaries shall be paid by the Hui 
 Tung Company. The majority of the overseers should be Chinese, and all the 
 miners natives of the province. All are to receive adequate wages, and further 
 Rules must be made on this subject by the Hua Yi and Hui Tung Companies. 
 Later on, the Mining Bureau should instruct the Company to select for important 
 positions any Chinese who may have become proficient in mining engineering. 
 They are to be treated the same as foreigners, to encourage improvement. 
 
 12. — On opening the mines, the Hui Tung Company shall establish a School 
 of Mining and Railway Engineering in some locality convenient to the mines, 
 and there shall be selected twenty or thirty promising youths by the local 
 officials and gentry to study in this school, under foreign instructors, and be thus 
 prepared for future employment on railways and in mines. 
 
 13. — At places where mines are opened, the Mining Bureau should apply 
 to the local authorities for protection. Such mines should also obey their rules, 
 and enrol volunteers to guard against thieves, &c. If the natives should enrol 
 themselves as volunteers of their own accord to protect the localities, the Hui 
 Tung Company should also subscribe towards their expenses. 
 
 14. — The Mining Bureau, acting as intermediary between the superiors and 
 subordinates, is to attend to all negotiations between natives and foreigners and 
 matters of protection. The work involved, as well as the expenses, will be 
 great. The Hui Tung Company should therefore start work within three months 
 after the signing of this Agreement, and pay the Mining Bureau the sum of 
 100 taels per month for its working expenses for each mine, reckoning from 
 the day when work is started. There will be no other charges besides this. If 
 work be not started after six months this Agreement is considered cancelled, and
 
 NUMBER 1899/1: APRIL 14, 1899 187 
 
 the Hua Yi Company will be at liberty to invite other merchants to take up 
 the work.f It will be no concern of the Hui Tung Company. 
 
 15- — The Hui Tung Company shall work all the mines according to the exist- 
 ing Rules adopted by the head office. After paying the producer's tax and the 
 export duty, if there should be a profit by the annual accounts, there shall first 
 be paid 6 per cent, interest on the capital employed, next 10 per cent, of the re- 
 mainder of the profit shall be set aside as a sinking fund for the yearly repayment 
 of capital and consequent reduction of interest, payments to sinking fund ceasing 
 when the invested capital is wholly repaid, and from the remaining net profit 
 25 per cent, shall be paid to the Chinese Government, and the remainder shall 
 go to the Hui Tung Company for its own disposition. 
 
 16. — The Hui Tung Company is to open not one mine, but a large number. 
 The accounts and profits of each mine must be kept distinct from the others ; the 
 gains of one mine should not be made to offset the losses of another, and so 
 cause the Government income to suffer reduction. 
 
 17. — At the end of every year, the Hui Tung Company shall make up 
 distinct accounts of the different mines, whether profitable or not, and the same 
 must be audited by the foreign and Chinese Managers, and when found correct, 
 a printed account of profit and loss shall be rendered by each mine to the 
 Mining Bureau for approval. A general account of profit and loss for all the 
 mines shall then be prepared and submitted to the head office at Peking, the 
 Board of Revenue, and the Viceroy of Szechuan for audit. Payments due to 
 the Government shall be remitted at the same time. The report shall show 
 the real amount of money due to the Government in order to avoid all discrep- 
 ancies in the accounts. The Chinese Government and the Hua Yi Company are 
 not to be held responsible in case of loss. 
 
 18. — The Hui Tung Company is to have control of all the mines opened by 
 them for a period of fifty years, reckoning from the date on which each mine is 
 opened, on expiration of which term all the mines, whether profitable or not, 
 shall, with all plant, machinery, materials, buildings, roads, and all property ac- 
 quired by the capital of the mines, be handed over gratis to the Chinese Govern- 
 ment without asking for compensation, and in due time the Mining Bureau of 
 Szechuan shall report to the head office at Peking, and the Viceroy of Szechuan 
 shall send Deputies to take delivery of the same. The land rented by the Hua 
 Yi Company shall be handed back to the original owners. 
 
 19. — The Hui Tung Company being formed of Chinese and foreign shares 
 shall, at its own choice, sell and buy its shares according to the fluctuation of 
 the market rates. If the Hua Yi Company, or any Chinese gentry or merchants, 
 shall, within the said term of fifty years, acquire three-fourths of all the shares 
 in the Hui Tung Company, the mines may then be taken over from the Hui 
 Tung Company, and the Mining Bureau shall report upon the same and direct 
 the said shareholders (merchants) to take charge of the mines. 
 
 20. — Should any mines opened on land bought by the Hua Yi Company 
 
 and handed over to the Hui Tung Company, be stopped on account of no profits 
 
 t Although it is understood that no work has yet been undertaken, it appears that as 
 recently as 1915 there was some discussion of a payment by the Chinese Government to 
 the assigns of JVIr. Morgan in liquidation of the rights accruing under these regulations.
 
 188 CHINA TREATIES AND AGREEMENTS 
 
 being made, and the rent cease to be paid, then the Hua Yi Company has the 
 option of adopting other means to open such mines, or use the land for any- 
 other business. This, of course, is to prevent the money spent on the land from 
 being wasted, and, consequently, has nothing to do with the Hui Tung Com- 
 pany. 
 
 21. — If the Hui Tung Company sends out engineers who discover certain 
 mines in certain places, and report the same to be rich, but cannot guarantee the 
 same, and it is exceedingly difficult to purchase the necessary land for working 
 such mines, the Hui Tung Company should in such cases pay the purchase- 
 money for the land to the Hua Yi Company, who shall have the said land pur- 
 chased and handed over for working. This will prevent the purchase-money 
 being wasted. If a mine is discovered in the land purchased, the price paid 
 for the land will be repaid to the Hui Tung Company by deducting the rent 
 of 5 per cent, until the whole purchase-money is paid off, when the Hua Yi 
 Company shall again collect the rent of 5 per cent, as usual. Should there be 
 no mine in the land purchased, no rent shall be payable to the Hua Yi Com- 
 pany, and the Hui Tung Company, being unable to recover the purchase-money, 
 shall not deduct the same, with interest, from any other mine. This is agreed 
 to by both parties, and a further guarantee will be given at the time. 
 
 22. — All machinery, materials, and supplies needed for the mines opened by 
 the Hui Tung Company shall, on importation, be subject to the Rules in force for 
 the Kaiping and other Mining Companies, and pay one full duty and one-half 
 duty to the Maritime Customs, and shall be exempt from all inland li-kiii dues. 
 
 23. — These mines being under the sovereignty of China, should China ever 
 be at war with another country, the said Company shall obey the orders of the 
 Chinese Government, and grant no aid to the enemy. 
 
 24. — The Hua Yi Company and the Hui Tung Company shall obey all Rules 
 and Regulations adopted and memorialized by the head office, even if the same 
 be not stipulated in this Agreement. 
 
 25. — This Agreement, with Regulations agreed upon, shall be made out 
 both in Chinese and English, in eight copies, to be signed by Director Li Tai 
 Ching, of the Hua Yi Company, and Foreign Assistant Director Morgan and 
 Chinese Assistant Director Liu Hsio Shun, of the Hui Tung Company, and to be 
 sealed by the seal of the Mining Bureau of Szechuan. One copy each of this 
 Agreement is to be sent to the Mining and Railway Board at Peking, the Tsung-li 
 Yamen, the Board of Revenue, the Viceroy of Szechuan, and the Treasurer of 
 Szechuan, for reference. Of the remaining three copies, the Szechuan Mining 
 Bureau, the Hua Yi Company, and the Hui Tung Company are to keep one each 
 as proof. If there be any mistakes in the translation, the Chinese text shall hold 
 good. 
 
 Signed this 14th day of April, 1899.
 
 NUMBER 1899/2: APRIL 17, 1899 189 
 
 NUMBER 1899/2. 
 
 GERMANY AND CHINA. 
 
 Agreement concerning the establishment of a maritime customs office at Tsingtao 
 (together ivith (A) an Agreement concerning inland waters steam naviga- 
 tion, April 17, 1904; (B) an Amoidment to the agreement, December 1, 
 1905; (C) an Ordinance regulating procedure in customs matters in the 
 Kiaochow Territory, December 2, 1905; and (D) an Ordinance concerning 
 manufactures in the German territory, April 17, 1907.) * — April 17th, 1899. 
 
 1 — The Commissioner or the Chief of the Maritime Customs Office at 
 Tsingtao is to be of German nationaHty. The Inspector General of Customs 
 will come to an understanding with the German Legation at Peking in case of 
 appointing a new Commissioner. 
 
 2. — The members of the European staff of the Maritime Customs Office 
 at Tsingtao shall, as a rule, be of German nationality ; in case, however, of a 
 suddenly occurring vacancy or of temporary requirements of the service, mem- 
 bers of other nationalities may be provisionally sent to Tsingtao. 
 
 3. — The Inspector General of Maritime Customs will inform the Governor 
 of Kiaochow beforehand about all changes in the staff of the Customs Office 
 at Tsingtao ; this, however, does not apply to the employes of the Chinese staff. 
 
 4. — All correspondence between the Customs Office at Tsingtao and the 
 German Authorities and German merchants shall be conducted in the German 
 language. Should, however, merchants of other nationalities come to reside at 
 Tsingtao, they shall be at liberty to correspond in their language ; correspondence 
 in Chinese shall be likewise permitted. 
 
 5. — On merchandise brought by sea to Tsingtao no import duty shall be 
 levied. Import duty according to existing Treaties shall be levied by the Maritime 
 Customs Office on all merchandise or products passing the German frontier 
 of Kiaochow into the interior of China. 
 
 The German Authorities agree to take suitable measures to assist as far as 
 it is possible in the prevention of merchandise passing the German frontier when 
 not provided with a Permit or Pass by the Maritime Customs Office. 
 
 6. — When Chinese merchandise or products brought from the interior of 
 China into the German territory of Kiaochow are shipped from Tsingtao to 
 other places, they will pay the export duty according to existing Treaties. Pro- 
 duce raised in, and merchandise manufactured from produce raised in or im- 
 ported by sea. into the German territory of Kiaochow shall pay no export duty. 
 The duty to be paid by articles manufactured in the German territory from 
 materials brought there from the interior of China will be settled later. 
 
 * Texts as printed in Customs, Vol. II, pp. 215, 219, 221, 225, 237. 
 
 In connection with these agreements, see the Convention for the lease of Kiaochow, 
 March 6. 1898 (No. 1898/4, ante), and the Agreement between Japan and China concerning 
 the reopening of the Maritime Customs office at Tsingtao, August 6, 1915 (No. 1915/12, post). 
 
 The Tsingtao customs-house was opened on July 1, 1899.
 
 190 CHINA TREATIES AND AGREEMENTS 
 
 7. — Chinese merchandise or products brought from Chinese treaty ports 
 to Tsingtao shall pay no duty as long as they remain inside German territory; 
 but if these Chinese merchandise or products pass the German frontier into 
 the interior of China, they shall pay according to existing treaties. 
 
 8 — Chinese merchandise shipped from Tsingtao, and having paid accord- 
 ingly export duty, shall be provided with a receipt, on the producing of which 
 it shall pay, on being landed at a Chinese treaty port, a coast trade duty 
 according to existing treaties. 
 
 9. — For European and other non-Chinese merchandise, on being shipped 
 to Tsingtao from a Chinese treaty port, the import duty paid at the latter port shall 
 be refunded by drawback according to Article 26 of the German-Chinese Treaty 
 of 1861. On being imported to Tsingtao such merchandise shall pay no duty, 
 so long as it does not pass the German frontier into the interior of China. On 
 being re-exported from Tsingtao to other places outside China, such merchandise 
 shall pay no export duty. 
 
 10. — Chinese merchandise or products having been shipped from a Chinese 
 treaty port to Tsingtao and re-shipped from there to places outside China, shall 
 on this occasion pay no export duty, in case that documentary evidence is pro- 
 duced of their having paid export duty at the treaty port from which they came. 
 
 11. — The Maritime Customs Office at Tsingtao shall take no part m the col- 
 lection or administration of tonnage dues, lighthouse dues, or port dues, 
 the same duties and taxes (likin) which are levied on opium in Chinese treaty 
 
 13. — The Maritime Customs agrees to levy on all opium brought to Tsingtao 
 
 12. — The Customs tariff in vigour in the Chinese treaty ports shall be applied 
 likewise by the Maritime Customs Office at Tsingtao. 
 
 ports. The duties and taxes collected on opium which enters into consump- 
 tion inside the German territory shall be collected by the Maritime Customs for 
 account of the German Government, and be paid over to the latter at certain in- 
 tervals, to be fixed at convenience. 
 
 14. — The Government of Kiaochow agrees to set apart for the Maritime 
 Customs Office sufficient space at Tsingtao for building offices, lodgings for the 
 staff, with suitable room for garden, stables, and servants quarters. The amount 
 to be paid for the sale or lease of such ground is to be settled locally by mutual 
 agreement. 
 
 15. — The Chief of the Customs Office and the members of the staff shall be 
 free from any obligation to act as jurors or assessors or from any other personal 
 services. 
 
 16. — The Maritime Customs Office at Tsingtao, as designated in the above 
 Articles, shall take charge of the collection of duties, taxes, or likin on all 
 Chinese-built vessels (junks) coming to Tsingtao or to other places in the bay 
 of Kiaochow and on all merchandise brought in such vessels. The duties, taxes, 
 and other charges collected from Chinese-built vessels or from merchandise 
 brought by them to Tsingtao shall not exceed the charges which have hitherto 
 been levied from such vessels and such merchandise at Tsingtao or in other places 
 of the bay of Kiaochow. Should at any time the charges levied on Chinese-built 
 vessels and on merchandise brought by them at other ports in the province of
 
 NUMBER 1899/2: APRIL 17, 1899 191 
 
 Shantung be less in amount than such charges in the bay of Kiaochow, the latter 
 shall be reduced to the amount levied in those other ports. 
 
 17. — The aforesaid Maritime Customs Office at Tsingtao shall be charged 
 likewise exclusively with the granting and issuing of transit passes for mer- 
 chandise going into the interior of China, as well as for merchandise coming from 
 the interior of China to Tsingtao ; and this office will be charged as well with all 
 and every function, right, or capacity which appertain in the treaty ports to the 
 so-called Chinese Customs Taotai. 
 
 18. — For the transit passes mentioned in Article 17 the duty according 
 to existing treaties — i.e., half of the amount of export or import duty — 
 shall be collected by the Maritime Customs Office at Tsingtao. 
 
 19. — The procedure to be observed in case of frauds or contraventions com- 
 mitted by merchants against the Maritime Customs rules shall be settled here- 
 after by a separate Agreement, but it is understood in principle that all judicial 
 procedure rests with the German tribunals at Tsingtao. 
 
 20. — In view of the possibility that with the development of commercial 
 activity at Kiaochow new requirements may arise which are not to be foreseen, 
 it is understood that the present Agreement bears a provisional character, and 
 that both parties to it agree to introduce amendments as soon as required for the 
 purpose of remedying inconveniences which may arise in the practical execu- 
 tion of this Agreement. 
 
 Signed at Peking the 17th April 1899. 
 
 (Signed) Heyking, 
 
 Minister of Germany- 
 (Signed) Robert Hart, 
 
 Inspector General of Customs. 
 
 (A) — Agreement about the establishment of a maritime citstoms office at 
 Tsingtao: inland zvaters steam navigation. — Anne.v A. 
 
 April 17th, 1904. 
 
 1. — The Kiaochow Customs having been formally authorised to function in 
 Tsingtao are now empowered to issue inland steam navigation papers : steamers 
 thus permitted to ply on the inland waters are to be guided generally by the 
 rules and regulations of July and September 1898 f and the additional rules of 
 September 1902,| but more especially by the regulations herebelow set forth. 
 
 2. — Steamers about to ply in the inland waters are required to deposit their 
 national papers, Foreign or Native, with the Customs, and will receive in ex- 
 change, on written application, the Inland Waters Certificate ; such Certificates 
 are valid for one year, and a fee of Tls. 10 is payable on first issue and Tls. 2 
 for each annual renewal. Tonnage Dues are payable once every four months. 
 
 3. — Such certificated steamers may ply either (a) freely in the Tsingtao 
 waters, or (b) according to regulations (1) from Tsingtao to a place or places 
 inland and back, and (2) from Tsingtao to a place inland, thence to a Treaty 
 port, thence to a place inland, and thence back to Tsingtao. On making due 
 
 t No. 1898/17, ante. 
 
 $ Annex C to British Commercial Treaty of September 5, 1902 (No. 1902/7, post).
 
 192 CHINA TREATIES AND AGREEMENTS 
 
 report to the local Customs or Tax Office, and paying local Dues or Duties, they 
 may land or ship cargo or passengers at any recognised places of trade passed 
 on the voyage, but they may not ply between inland places exclusively without 
 special authority. If visiting another Treaty port on any such inland voyage, 
 the Customs at such port are to be duly reported to and all port regulations, 
 national and native, complied with. 
 
 4. — Whenever certificated steamers quit or return to Tsingtao, they are to 
 clear from and report to the Kiaochow Customs, handing in Outward and In- 
 ward Manifests of cargo, reporting places to be called at or called at, and pay- 
 ing the prescribed Duties. Opium and contraband goods are not to be carried 
 inwards or outwards: if carried, the goods are confiscable and the vessel subject 
 to a fine of $500, a second offence entailing withdrawal of Inland Waters Cer- 
 tificate and privileges. 
 
 5. — Certificated steamers are required to carry the Imperial Chinese Post 
 Office mails free of charge, and the Postal Department of the Kiaochow Customs 
 is empowered to transact all required postal business in this connexion inde- 
 pendently and/or in communication with the Colonial Post Office. 
 
 6. — The Colonial Government will assist the Kiaochow Customs to suppress 
 smuggling— more especially the smuggling of Opium and contraband, — and 
 accord special facilities to develop the legitimate business of the Postal Depart- 
 ment. 
 
 Signed at Peking the 17th April 1904. 
 
 (Signed) A. v. Mumm, 
 
 Minister of Germany. 
 (Signed) Robert Hart, 
 
 Inspector General of Customs. 
 
 (B) — Amendment to the agreement re the establishment of a custom house in 
 
 Tsingtau. 
 
 December 1st, 1905. 
 
 Preamble. — The Chinese and German Governments being anxious to amend 
 the Agreement of the 17th April 1899, with a view to putting the relations between 
 the Colony of Kiaochow and the Chinese Customs on a still better basis, have 
 agreed to the amendments represented in the following Articles. 
 
 The basis of this arrangement is that the Chinese Government on its part 
 (1) agrees to pay to the German Government a certain proportion of the 
 Jmport Duties on goods, Opium included, landed in the German territory, and (2) 
 consents to the modifications of Treaty-port Customs practice and principles 
 which said Articles establish ; and that the German Government on its part, in 
 consideration of the Chinese payment and consent, undertakes to facilitate the 
 working of the Imperial Chinese Customs establishment established and operat- 
 ing in the Germa/i territory and to aid in safeguarding the Revenue legitimately 
 payable. 
 
 With the object of carrying out the necessary amendments, the under- 
 mentioned Articles, duly agreed to by both parties, have been made.
 
 NUMBER 1899/2: APRIL 17, 1899 193 
 
 Art. I. — After the delimitation of the Tsingtau free area by the German 
 officials, the Chinese Maritime Customs established in the German territory will 
 levy all the Duties payable on goods passing outside the free area, and the 
 Chinese Government will hand over annually to the German officials at Tsingtau 20 
 per cent, of the net Import Duties collected, as shown by the statistics of Kiao- 
 chow Customs, as its contribution to the expenses of the territory. This per- 
 centage will be fixed for the present provisionally for five years, and payment will 
 be made in quarterly instalments after the end of each quarter. If this arrange- 
 ment, fixing the contribution at 20 per cent., should at any time seem to either 
 party to require amendment, notice is to be given to the other before the begin- 
 ning of the fifth year, in order to afiford time for reconsideration. 
 
 Art. II. — The limitation of the free area, which is to be established at the 
 Great Harbour, and its probable extension later, on account of the progressing 
 harbour works, will be made as convenient as possible for carrying on Customs 
 work. 
 
 Art. III. — On articles which are Duty free by existing Customs Tariff no 
 Duty will be levied. 
 
 The following are Duty free : — 
 
 FOR THE GERMAN TROOPS. 
 
 (a) Articles for arming and outfitting the troops, including Uniforms, if 
 directly ordered by the military or naval authorities and if accompanied by 
 Certificate of the Colonial Government. 
 
 (b) Stores and Provisions ordered by the military or naval authorities in 
 anticipation of future requirements, if accompanied by Certificate of the Colonial 
 Government. 
 
 FOR THE GENERAL PUBLIC. 
 
 (c) Machinery, Plant, as well as Parts of Machinery, Implements and 
 Tools required for manufacturing, industrial, and agricultural purposes ; also all 
 Building Materials, Fittings, and other articles for public and official works. A 
 written Bond for the value of the goods must in each case be handed to the Cus- 
 toms certifying that the articles are solely for use in the German territory. If, 
 later, they are to be conveyed into China, they must be declared to the Customs 
 and pay Import Duty. Failure to do so will involve enforcement of the Bond 
 for recovery of double the amount of Duty on the value specified in it. 
 
 (d) Articles (Vehicles and such-like) passing to and fro between the free 
 area and outside, solely for ordinary repairs ; but they are to be reported to the 
 Customs officers, that their passing may be noted. 
 
 (e) All postal parcels imported and destined for private use in the German 
 territory, if the Duty which has to be taxed in accordance with the attached 
 declaration does not exceed $1 (value $20). The Customs are at liberty to 
 examine such parcels and verify declarations as occasion demands. 
 
 (/) The personal luggage of passengers, declared as not containing dutiable 
 or contraband goods ; it will only be examined in cases where the Customs con- 
 sider it specially necessary.
 
 194 CHINA TREATIES AND AGREEMENTS 
 
 Art. IV. — The regulations laid down in Arts. 5, 7, and 9 of the Agreement 
 o£ 17th April 1899 as to levying of Import Duty are hereby modified, in so 
 far that the free Duty area is limited to the free area. Payment of Duty there- 
 fore will be made according to circumstances, either when leaving the free area 
 or, if to be landed elsewhere, before landing. By the payment of the Duty the 
 goods pass into free circulation, and out of Customs control. Provision having 
 been thus made for effective collection of Duty in Tsingtau, Customs Stations 
 on or near the frontier will, under the provided conditions, be unnecessary, and 
 the question of establishing such can for the time being be postponed; such 
 Stations as are required for the control of junk traffic are excepted. 
 
 Art. V. — For manufactories which are erected outside the free area, 
 arrangements are to be made according to which manufactures will not be treated 
 less favourably than if they came from the free area. Labour in the German 
 territory is free of tax ; consequently manufactures made in the German terri- 
 tory from raw materials which have been imported from the hinterland or by sea 
 into the German territory are, at reshipment, only subject to such Duty payment 
 as China has by Treaty claim for on the raw material. A list of articles entitled 
 to be treated as raw material will, if needed, be drawn up by the Customs and 
 
 Art. VI. — All trading and shipping facilities and privileges which are 
 granted in Chinese coast ports are to be extended to the German territory, with 
 such modifications as local conditions may require. 
 
 Art. VII. — In cases of fraud and offences against the Customs regulations, 
 the procedure will be conducted in accordance with the spirit of the " Joint In- 
 vestigation Rules of 31st May 1868" — a Colonial officer specially named by 
 Colonial authorities and revised annually at the end of each year. 
 
 Art. VIII. — It is understood that this Agreement is an amendment of the 
 the Government to take the place of the Consul. 
 
 original Agreement of 17th April 1899, made in accordance with Art. 20 of the 
 latter, which, unless where modified hereby, remains in full force. 
 
 Signed and sealed at Peking this first day of December nineteen hundred 
 and five by Baron Mumm von Schwarzenstein, His Imperial German 
 Majesty's Minister, on behalf of the German Government, and by Sir Robert 
 Hart, Bart., G.C.M.G., Inspector General of Imperial Chinese Customs, on behalf 
 of the Chinese Government. 
 
 [seal.] {Signed) A. v. Mumm. 
 
 [seal.] (Signed) Robert Hart. 
 
 (C) — Ordinance regulating procedure in customs matters in the Kiaochow 
 
 territory.^ 
 
 December 2nd, 1905. 
 
 I. — General Rules. 
 
 § 1. — All goods imported by sea into or exported from the German territory, 
 
 with only such exceptions as are specified below, are subject to Duties on im- 
 
 § Translation from German text. As printed in Customs, this Ordinance is headed 
 Annex A, and bears a notation that it was " Issued by the Colonial Government on 2nd De- 
 cember 1905, and accepted by the Inspectorate General of Customs."
 
 NUMBER 1899/2: APRIL 17, 1899 195 
 
 portation or exportation at the rates specified in the Chinese Tariff for Foreign 
 trade for the time being in force. Goods forwarded to or coming from the 
 interior under Transit Pass must pay the Treaty Transit Dues in addition to the 
 Import or Export Tariff Duty. 
 
 § 2. — The Customs procedure is guided by the principles and follows the 
 practice which are in force at the Chinese Maritime Custom Houses at the 
 various Treaty ports, and Customs control wherever necessary is exercised by 
 its officers. 
 
 § 3. — Import and Export Manifests of all vessels made out in accordance 
 with the provisions of the Treaties must be handed to the Customs. The Mani- 
 fests to be signed either by the master of the vessel, who in that case is held 
 responsible, or by the agent of the vessel, in which case he will be responsible. 
 
 § 4. — Junks repairing to the special points they frequent excepted, no ves- 
 sel is allowed to work cargo until Import Manifest has been handed in to the 
 Customs, nor to allow it to leave the ship outside the free area until Customs 
 Permit has been issued. Applications for goods to be landed or shipped outside 
 the free area must specify the locality — what jetty, etc. — they are to be landed at 
 or shipped from. 
 
 II. — Free Area. 
 
 § 5. — The free area comprises the Great Harbour including the Moles, the 
 wharf territory and the enclosing embankment, and the territory in front of the 
 harbour as far as the chief railway embankment. It is limited in the south- 
 west by a line between Inner Harbour and railway embankment near the 
 junction of Rechternstrasse and Grosse Hafenweg, and in the east by a line 
 between railway and enclosing dam near the block station. An extension of the 
 free area is reserved for later use at any time according to requirement. The 
 following are the boundaries of the area kept for possibly required extension in 
 the future, viz., the railway embankment to the block station, including territory 
 to be filled in on the one side to the extent of 200 metres east of the enclosing 
 dam; on the other side (west), to the railway viaduct off the Shansistrasse along 
 the road to Oster's Slip, including small and large harbours. 
 
 § 6. — The free area shall not be made use of for dwellings, with the excep- 
 tion of those which are necessary for warehouse and wharf controllers, harbour. 
 Customs, and police officers, nor for petty trade, with the temporary exception 
 of a fixed number of Chinese street cookeries for the use of coolies. Factories 
 are, in principle, allowed. 
 
 § 7. — The Customs control within the free area, as well as at the exits, is 
 exercised by the Chinese Custom House. 
 
 § 8. — The Customs Duty account of all vessels must be settled within ten 
 days of the ship's clearance, and Duty on all Imports passing beyond the free area 
 paid. 
 
 § 9. — Goods arriving by sea or from the hinterland, which are intended to be 
 stored, sorted, and worked up in the free area, shall be notified to the Customs, 
 who will then take them under supervision. At the time of the notification the 
 following details have to be supplied: mode of conveyance by which the goods
 
 196 CHINA TREATIES AND AGREEMENTS 
 
 arrived, and, if by sea, name of ship, name and address of consignee, date of 
 arrival, number of packages, kind of packing, marks and numbers, and general 
 description of the goods. 
 
 §10. — Goods which are destined to be exported by sea from the free area 
 have to pass the Customs. Goods without Customs papers are not allowed to be 
 received on board- 
 
 § 11. — Traffic of every kind (carriages, carts, railway, junks, sampans, tugs, 
 steamers, etc.) by sea and land frontier of the free area is subject to the super- 
 vision of the Customs. 
 
 III. — Duty-free Goods. 
 § 12. — On articles which are Duty free by Treaty no Duty will be levied. 
 The following are Duty free : — 
 
 For the German Troops. 
 
 (a.) Articles for arming and outfitting the troops, including Uniforms, 
 if directly ordered by the military or naval authorities and if 
 accompanied by Certificate of the Government. 
 
 (&.) Stores and Provisions ordered by the military and naval authorities 
 in anticipation of future requirements, if accompanied by Cer- 
 tificate of the Government. 
 
 For the General Public. 
 (c.) Machinery, Plant, as well as Parts of Machinery, Implements and 
 Tools required for manufacturing, industrial, and agricultural 
 purposes ; also all Building Materials, Fittings, and other articles 
 for public and official works. A written Bond for the value 
 of the goods must in each case be handed to the Customs certify- 
 ing that the articles are solely for use in the German territory. 
 If, later, they are to be conveyed into China, they must be 
 declared to the Customs and pay Import Duty. Failure to do 
 so will involve enforcement of the Bond for recovery of double 
 the amount of Duty on the value specified in it. 
 {d.) Articles (Vehicles and such-like) passing to and fro between the 
 free area and outside, for ordinary repairs ; but they are to be re- 
 ported to the Customs officer, that their passing may be noted. 
 {e.) All postal parcels imported and destined for private use in the Ger- 
 man territory, if the Duty, which has to be taxed in accordance 
 with the attached declaration, does not exceed $1 (value $20). 
 The Customs are at liberty to examine such parcels and verify 
 the declarations as occasion demands. 
 § 13. — The personal luggage of passengers, declared as not containing either 
 dutiable or contraband goods, is passed free of Duty and, as a rule, without 
 examination; but the right of examination is reserved to the Customs in cases 
 where it may be considered specially necessary. 
 
 Duty is leviable on articles carried in excess of those reasonably necessary 
 for personal use or if expected to be sold.
 
 NUMBER 1899/2: APRIL 17, 1899 197 
 
 IV. — Manufactures in the German Territory. || 
 § 14. — Manufactures in the German territory are only subject to Duty in 
 so far as China is entitled to Duty on the raw material. 
 
 (a.) Chinese raw material landed in German territory from the hinter- 
 land or non-Treaty ports and intended for use in a manufactory 
 may be declared to the Customs and a Bond for any Duty pay- 
 able on same deposited. 
 
 When the articles manufactured from this raw material 
 come to be exported, they will pay Export Duty on the material 
 used, and the Duty guaranteed by the Bond shall be cancelled 
 to that extent. 
 
 Duty guaranteed by the Bond must be paid or accounted 
 for before the expiration of three years from its date. 
 
 It will be optional for the exporter to pay full Tariff Duty 
 on the exported article instead of on the raw material used in its 
 manufacture. 
 
 (&.) Any Import or Coast Trade Duty levied on raw material arriving 
 from Foreign countries or from the Treaty ports of China will 
 be refunded at the time of exportation by sea of the manu- 
 factured articles made therefrom, provided that at the time of 
 importation such material was duly declared at the Custom 
 House as for use in a manufactory. 
 
 (c.) An arrangement will be made by agreement of Colonial and Cus- 
 toms authorities that when the various classes of manufactured 
 articles are exported, the amount of raw material used will be 
 fixed as a definite proportion and the Export Duty will be 
 diminished accordingly. 
 
 (d.) The factories entitled to claim the treatment as specified above 
 will be registered, and a list of them, revised as required and 
 if needed, furnished to the Customs. 
 
 V. — Opium. 
 
 § 15. — Opium can only be imported by vessels in original chests. The im- 
 portation of smaller quantities than one chest is forbidden. All Opium on board 
 of ships, including that intended for consumption during the journey, must, on 
 arrival of the ship, be reported without delay to the Customs, who will supervise 
 the transportation to the Customs godown of so much as is to be landed. 
 
 § 16. — Opium from the German territory to China or from China to the 
 German territory can only be conveyed by rail, on special Bill of Lading and as 
 " Eilgut." It is forbidden to carry it as passenger's luggage. All Bills of Lading, 
 etc., for arriving Opium are handed by the railway to the Customs in the Ger- 
 man territory, who will notify the addressees. 
 
 § 17. — The consumption of Opium in the German territory is subject to 
 
 special regulations. 
 
 II Section IV (§ 14) rescinded and replaced by the Ordinance of April 17, 1907, printed 
 below under (D).
 
 198 CHINA TREATIES AND AGREEMENTS 
 
 VI. — Arms, Powder, Explosives^ etc. 
 
 § 18. — Arms, Powder, Explosives, and the like, as well as materials used 
 in the manufacture of the same, must be declared on arrival and discharged and 
 stored in accordance with the regulations of the Colonial Government. 
 
 § 19. — The export of Arms and Munitions of War of all kinds, as well as 
 materials used in the manufacture of the same, from the German into Chinese 
 territory is prohibited ; exception is only made in the case of articles covered by 
 Special Permit issued by the Commissioner of Customs in accordance with 
 Chinese regulations. 
 
 § 20. — The storage of Arms and Explosives in the German territory, as well 
 as the trade in the same, is subject to special regulations. 
 
 VII. — Mail Matter. 
 
 § 21. — Mail matter may be landed or shipped by the Post Office at any time, 
 
 § 22. — Postal parcels will be received by the Post Office only if accom- 
 panied by a declaration form vised by the Customs. 
 
 § 23. — Parcels destined for Tsingtau will be handed, immediately after ar- 
 rival, by the Post Office to the Customs for assessment of Duty. The declara- 
 tion form will be delivered to the addressee in the same way as other mail matter. 
 The addressee will produce the declaration form at the Customs, and on payment 
 of duty, if any (vide § 12, {e) ), the parcel will be delivered by the Customs. 
 For such parcels as are destined for other places in the German territory where 
 German Post Offices operate, the Duty payment of such parcels will be made, 
 on application of the addressee, by the German Post Office, who will collect the 
 Duty and a fee of 20 cents at the time of delivering the parcel. 
 
 § 24. — The importation of Opium, Arms, Powder, Explosives and the like, 
 as well as materials used in the manufacture of the same, by Post is forbidden. 
 In special cases the Government can grant an exception. 
 
 VIII. — Tank Kerosene Oil. 
 
 § 25. — The Customs procedure for despatching tank ships, storage, and valu- 
 ation of Kerosene Oil will be in accordance with the procedure in force at the 
 Maritime Custom Houses at the Treaty ports. 
 
 IX. — Office Hours of the Custom House. 
 
 § 26. — The Custom House is open for the receipt and issue of all Customs 
 papers from 10 a.m. to 4 p.m. on all days, Sundays and holidays excepted. The 
 Customs Bank is open on all weekdays from 9-12 a.m. and 2-4 p.m. 
 
 § 27. — Vessels wishing to load or discharge on Sundays or holidays, as well 
 as during night hours, must take out a Special Permit from the Customs: this 
 Permit must be applied for during office hours. 
 
 § 28. — The transport of goods over land and sea boundary of the free area 
 during night hours is only allowed in case a Special Permit has been obtained 
 from the Customs. This does not apply to mail matter and passengers luggage.
 
 NUMBER 1899/2: APRIL 17, 1899 199 
 
 § 29- — Night hours are : — 
 
 From 1st March to 31st October: from 8 p.m. to 5 a.m. 
 From 1st November to 28/29 February: from 6 p.m. to 6 a.m. 
 
 X. — Fines. 
 
 § 30. — Confiscation and fines will be imposed according to the principles 
 which are laid down by the Treaties and which are in force at the Maritime 
 Custom Houses. In cases of appeal against confiscation and fine imposed by the 
 Commissioner of Customs, the procedure will be conducted in accordance with 
 the spirit of the " Rules for Joint Investigation in Cases of Confiscation and 
 Fine by the Custom House Authorities. Peking, 31st May 1868." 
 
 XI. — Abrogation of former Regulations. 
 
 § 31. — This Ordinance, issued to carry out the terms of the Agreement made 
 on 17th April 1899 and of the Amendment to same made under its 20th Para- 
 graph on the 1st December 1905, and accepted by the Chinese Customs authori- 
 ties,^ will come into force on 1st January 1906, and will take the place of the 
 following Regulations, which are hereby rescinded : — 
 
 (a.) The Provisional Customs Regulations for the German Territory 
 
 of Kiaochow, of 23rd May 1899. 
 (b-) The Special Regulations for the Importation and Control of 
 
 Opium, etc., of 23rd May 1899. 
 (c.) The Special Regulations re the Execution of the Customs Control, 
 
 of 23rd May 1899. 
 (d.) The Provisional Additional Regulation to the Provisional Cus- 
 toms Regulations concerning Goods loaded by the Shantung 
 Railway, of 20th April 1901. 
 (e.) The Customs Notification No. 24 regarding the Goods loaded by 
 the Railway, of 31st March 1902. 
 TsiNGTAU, 2nd December 1905. 
 
 The Colonial Governor p. t., 
 
 {Signed) Van Semmern. 
 
 {D) — Manufactures in German territory. 
 April 17th, 1907. 
 
 Whereas necessity has arisen for more clearly stating the procedure to be 
 followed in the treatment of manufactures by the Kiaochow Customs, the under- 
 signed agree to accept the rules and explanations embodied in the document hereto 
 attached, to be substituted for Section IV, " Manufactures in the German Ter- 
 ritory," § 14 in the Tsingtau Ordinance of the 2nd December 1905 regulating 
 
 1[ The acceptance of this ordinance by the Inspectorate General of Maritime Customs 
 was notified by it to the Commissioners of customs by Circular No. 1306 (2nd Series), 
 December 23, 1905.
 
 200 CHINA TREATIES AND AGREEMENTS 
 
 procedure in Customs matters, and append their signatures herebelow to record 
 acceptance of the same. Graf Rex, 
 
 Minister of Germany. 
 Robert Hart, 
 
 Inspector General of Customs. 
 Signed at Peking the 17th April 1907. 
 
 Ordinance. 
 § 14 of the Ordinance regulating procedure in Customs matters in the Kiao- 
 chow territory of 2nd December 1905 is hereby rescinded and the following para- 
 graph will take its place : — 
 
 Manufactures in the German Territory. 
 A. — General Rules. 
 
 1. — Payment of Import Duty on goods of all kinds is to be made accord- 
 ing to circumstances, either when leaving the free area or, if to be landed else- 
 where, before landing. By the payment of Duty the goods pass into free cir- 
 culation and out of Maritime Customs control (Amendment, Art. IV). Export 
 Duty is paid on goods when shipped from Tsingtau to other places (Agreement, 
 Art. VI). Goods between the hinterland and the territory outside the free area 
 pass free of Maritime Customs control and Duty payment. 
 
 Produce raised in and merchandise manufactured from produce raised in or 
 imported by sea into the German territory pays no Export Duty (Agreement, 
 Art. VI). Articles made from raw materials are treated like ordinary goods 
 unless the materials are declared to the Customs, when they will be accorded 
 special treatment. As to Duty to be paid, manufactories inside or outside the 
 free area are treated alike. 
 
 2. — Articles made in the German territory may, when forwarded into the 
 interior, at the option of the manufacturer, be sent under Transit Pass and Pay 
 Transit Dues on the fabricated article {vide Explanatory Notes). 
 
 3. — Chinese raw material landed in German territory from the hinterland 
 or non-Treaty ports and intended for use in a manufactory may be declared to 
 the Customs and a Bond for any Duty payable on same deposited. 
 
 When the articles manufactured from this declared material come to be 
 exported, they will pay Export Duty on the material used and the Duty guaran- 
 teed by the Bond shall be cancelled to that extent. 
 
 Duty guaranteed by the Bond must be paid or accounted for before the 
 expiration of three years from its date. 
 
 It will be optional for the exporter to pay full Tariff Duty on the exported 
 article instead of on the raw material used in its manufacture. 
 
 Articles manufactured from material which has not been declared to the Cus- 
 toms and for which no Bond has been signed, pay full Export Duty at exporta- 
 tion when passing the Customs station. 
 
 4. — Any Import or Coast Trade Duty levied on raw material arriving from
 
 NUMBER 1899/2: APRIL 17, 1899 201 
 
 Foreign countries or from the Treaty ports of China will be refunded at the time 
 of exportation by sea of the manufactured articles made therefrom, provided 
 that at the time of importation such material was duly declared at the Custom 
 House as for use in manufactory. 
 
 5. — Manufactures made in the German territory when forwarded by sea into 
 China are at importation subject to full Tariff Duty and may obtain Transit 
 privileges by paying Transit Dues if taken inland. 
 
 6. — An arrangement will be made by agreement of Colonial and Customs 
 Authorities that when the various classes of manufactured articles are exported 
 the amount of raw material used will be fixed as a definite proportion and the 
 Export Duty will be diminished accordingly. 
 
 7. — The factories entitled to claim the treatment as specified above will be 
 registered, and a list of them, revised as required and if needed, forwarded to 
 the Customs. 
 
 B. — Explanatory Notes. 
 
 The following notes refer only to such materials as have at the time of their 
 arrival in German territory been duly declared at the Kiaochow Custom House 
 as for use in a manufactory and, where needed, deposited Bonds for Duty 
 payable. 
 
 1. — Foreign Material arrived from Abroad either direct or through Treaty Port, 
 (a.) If the manufactured article departs to go abroad — 
 
 1. The Duty paid will be refunded. 
 
 (b.) If the manufactured article is shipped to a Chinese Treaty port, the 
 Duty paid at importation is refunded and the article pays — 
 
 2. At the port where landed the same Duty as the Tariff pre- 
 
 scribes for similar merchandise arriving direct from For- 
 eign countries, and 
 
 3. By paying a Transit Due afterwards becomes entitled to 
 
 Transit privileges if going inland. 
 (c.) If the manufactured article is sent away under Inland Waters Naviga- 
 tion Rules, the article is liable to — 
 
 4. Whatever Duties, charges, or taxes similar merchandise has 
 
 to pay on departure or en route and inland when simi- 
 larly carried. Such article may, however, 
 
 5. Free itself from such inland liability, and enjoy Transit 
 
 privileges instead, by paying a 2^ per cent. Transit Due on 
 the manufactured article and carrying Transit documents. 
 (d.) If the manufactured article is sent away to the hinterland by a land 
 route, it is treated — 
 
 6. Like similar merchandise despatched under Inland Waters 
 
 Navigation Rules. 
 
 2. — Native Material arrived from Chinese Treaty Ports, 
 (e.) If the manufactured article departs to go abroad — 
 
 7. The Coast Trade Duty paid will be refunded.
 
 202 CHINA TREATIES AND AGREEMENTS 
 
 (/.) If the manufactured article departs to go to a Chinese Treaty port — 
 
 8. A Coast Trade Duty-paid Certificate on the raw material 
 
 contained in it will be given to free the article from Duty 
 on arrival at the Treaty port landed at ; afterwards it is 
 treated as Chinese merchandise and not entitled to Transit 
 privileges, or, at the option of the exporter, 
 
 9. The Coast Trade Duty will be refunded and it pays a full Im- 
 
 port Duty on the manufactured article at the Treaty port 
 landed at, and, if thence going inland, may obtain Transit 
 privileges 
 
 10. On payment of a 2^/2 per cent. Transit Due and while accom- 
 
 panied by Transit documents. 
 (g-) If the manufactured article leaves Tsingtau under Inland Waters Navi- 
 gation Rules, it is liable to — 
 
 11. Whatever Duties, charges, or taxes similar merchandise has 
 
 to pay on departure or en route and inland when similarly 
 carried. Such article may, however, 
 
 12. Free itself from such inland liability and enjoy Transit 
 
 privileges on the payment of 2^^ per cent. Transit Due 
 at Tsingtau on the manufactured article. 
 (h) If the manufactured article leaves Tsingtau by the land route and goes 
 to the hinterland, it is treated — 
 
 13. In the same way as if leaving under Inland Waters Naviga- 
 
 tion Rules. 
 
 3. — Native Material arrived under Inland Waters Navigation Rules. 
 
 (i.) If the manufactured article goes abroad, it pays at Tsingtau full Export 
 Duty on either — 
 
 14. The material used or, at the option of the exporter, on 
 
 15. The article itself, and the quantity is written off on the Bond. 
 (;*.) If the manufactured article goes to a Chinese Treaty port, it pays at 
 
 Tsingtau full Tariff Duty on the — 
 
 16. Material used, Coast Trade Duty at the port landed at, and 
 
 is thereafter treated as Chinese merchandise, or, at the 
 option of the exporter, on the 
 
 17. Manufactured article, in which case it is given an Exemp- 
 
 tion Certificate, which entitles it to free entry as Foreign 
 merchandise at the port arrived at, and, on subsequent pay- 
 ment 
 
 18. Of 2^2 per cent. Dues, to Transit privileges if going inland. 
 (k.) If the manufactured article goes away under Inland Navigation 
 
 Rules, it pays Coast Trade Duty on — 
 
 19. Material used or, at the option of the manufacturer, on 
 
 20. The manufactured article, and is liable to 
 
 21. Whatever Duties, charges, or taxes similar merchandise has 
 
 to pay en route and inland when similarly carried. Such
 
 NUMBER 1899/2: APRIL 17, 1899 203 
 
 article after such payment of Duty on material or manu- 
 factured article may, however, 
 
 22. Free itself from such inland liability and enjoy Transit 
 
 privileges on the payment of 2^/2 per cent. Transit Due at 
 Tsingtau on the manufactured article. 
 (/.) If the manufactured article leaves Tsingtau for the hinterland by the 
 land route, it is treated — 
 
 23. In the same way as if leaving under Inland Navigation 
 
 Rules. 
 
 4. — Native Material arrived by Land Route from the Hinterland. 
 
 (m.) If the manufactured article goes abroad, the material is written off 
 on the Bond and the exporter pays at Tsingtau full Export Duty 
 either — 
 
 24. On the material used or, at the option of the exporter, on 
 
 25. The manufactured article. 
 
 (n.) If the manufactured article goes to a Chinese Treaty port, it pays at 
 Tsingtau full Tariff Duty on the — 
 
 26. Material used. Coast Trade Duty at the port landed at, and 
 
 is thereafter treated as Chinese merchandise, or 
 
 27. On the manufactured article, in which case it is given an 
 
 Exemption Certificate, which entitles it to free entry as 
 Foreign merchandise at the port arrived at, and, on sub- 
 sequent payment 
 
 28. Of 2% per cent. Dues, to Transit privileges if going inland, 
 (o.) If the manufactured article goes away under Inland Waters Naviga- 
 tion Rules, it pays at Tsingtau Coast Trade Duty at the option of 
 exporter either on — 
 
 29. Material used or on 
 
 30. Manufactured article, and will afterwards be liable, like 
 
 similar merchandise similarly carried, to Inland Duties, 
 charges, and taxes unless protected by Transit documents, 
 which will entitle it to Transit privileges and may be ob- 
 tained at Tsingtau from the Kiaochow Customs 
 
 31. On the additional payment of 2^ per cent. Transit Duty 
 
 on the manufactured article. 
 (p.) If any such declared material leaves German territory by the land route 
 for the hinterland, either in original condition or as manufactured 
 article, it re-enters Chinese territory as Chinese merchandise and 
 will be subject to the same Duties, charges, and taxes as similar 
 merchandise similarly travelling. 
 
 Graf Rex, 
 
 Minister of Germany. 
 Robert Hart, 
 
 Inspector General of Customs. 
 Signed at Peking the 17th April 1907.
 
 204 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1899/3. 
 
 GREAT BRITAIN AND RUSSIA. 
 
 Identic notes exchanged with regard to railway interests in China* — April 
 
 28, 1899. 
 
 Sir C. Scott to Count Mouravieff. 
 
 The Undersigned, British Ambassador, duly authorized to that effect, has 
 the honour to make the following declaration to His Excellency Count Moura- 
 vieff, Russian Minister for Foreign Affairs. 
 
 Great Britain and Russia, animated by a sincere desire to avoid in China 
 all cause of conflict on questions where their interests meet, and taking into 
 consideration the economic and geographical gravitation of certain parts of that 
 Empire, have agreed as follows : — 
 
 1. Great Britain engages not to seek for her own account, or on behalf 
 of British subjects or of others, any railway Concessions to the north of the Great 
 Wall of China, and not to obstruct, directly or indirectly, applications for railway 
 Concessions in that region supported by the Russian Government. 
 
 2. Russia, on her part, engages not to seek for her own account, or on behalf 
 of Russian subjects or of others, any railway concessions in the basin of the 
 Yangtze, and not to obstruct, directly or indirectly, applications for railway con- 
 cessions in that region supported by the British Government. 
 
 The two Contracting Parties, having nowise in view to infringe in any way 
 the sovereign rights of China or existing Treaties, will not fail to communicate 
 to the Chinese Government the present arrangement, which, by averting all cause 
 of complications between them, is of a nature to consolidate peace in the Far 
 East, and to serve the primordial interests of China herself. 
 
 Charles S. Scott. f 
 
 St. Petersburg, April 28, 1899. 
 
 Sir C. Scott to Count Mouravieff. 
 
 In order to complete the notes exchanged this day respecting the partition 
 of spheres for Concessions for the construction and working of railways in 
 
 * Text as reprinted in Rockhill, p. 183, from B. & F. State Papers, vol. 91, p. 91. 
 Printed also in British Treaty Series, 1899, No. 11; Am. Int. Law Journal, Suppleni'ent, 1910, 
 p. 298; Hertslet, p. 586: Kent, p. 220; Recueil, p. 358. 
 
 In connection with this exchange of notes see also the note of the Tsung-li Yamen to the 
 Russian Minister, June 1, 1899 (No. 1899/5, post) ; Agreement between Russia and China 
 concerning Manchuria, April 8, 1902 (No. 1902/3, post) ; Agreement for the transfer of the 
 Peking- Shanhaikuan Railway to the Chinese Civil Administration, and the Additional 
 Agreement respecting the management of the northern railways, April 29, 1902 (No. 1902/4. 
 post), and the note of the Wai-wu Pu to the Russian Minister, June 10, 1902, attached 
 thereto. 
 
 t The same, mutatis mutandis, was sent the same day by Count Mouravieff, Minister of 
 Foreign Aflfairs of Russia, to Sir Charles Scott.
 
 NUMBER 1899/4 : MAY 2, 1899 205 
 
 China, it has been agreed to record in the present additional note the agreement 
 arrived at with regard to the line Shanhai-kuan-Newchwang, for the construc- 
 tion of which a loan has been already contracted by the Chinese Government with 
 the Shanghai-Hongkong Bank, acting on behalf of the British and Chinese 
 Corporation. 
 
 The general arrangement established by the above-mentioned notes is not to 
 infringe in any way the rights acquired under the said Loan Contract, and 
 the Chinese Government may appoint both an English engineer and an European 
 accountant to supervise the construction of the line in question, and the expendi- 
 ture of the money appropriated to it. 
 
 But it remains understood that this fact cannot be taken as constituting a 
 right of property or foreign control, and that the line in question is to remain 
 a Chinese line, under the control of the Chinese Government, and cannot be 
 mortgaged or alienated to a non-Chinese Company. 
 
 As regards the branch line from Siaoheishan to Sinminting, in addition to 
 the aforesaid restrictions, it has been agreed that it is to be constructed by China 
 herself, who may permit European — not necessarily British — engineers to peri- 
 odically inspect it, and to verify and certify that the work is being properly 
 executed. 
 
 The present special Agreement is naturally not to interfere in any way with 
 the right of the Russian Government to support, if it thinks fit, applications of 
 Russian subjects or establishments for Concessions for railways, which, start- 
 ing from the main Manchurian line in a southwesterly direction, would traverse 
 the region in which the Chinese line terminating at Sinminting and Newchwang 
 is to be constructed. 
 
 Charles S. ScoTT.f 
 St. Petersburg, April 28, 1899. 
 
 NUMBER 1899/4. 
 
 CHINA. 
 
 Proclamation in regard to the extension of the international settlement at Shang- 
 hais—May 2, 1899. 
 
 Proclamation of Li, Wearer of the Button of Second Grade by Imperial 
 Grace, Commissioner of Kiangnan Customs, Taotai of Shanghai, concurrently in 
 charge of copper mines. Hereditary Baron of the Third Class. 
 
 After rules and regulations were made for the first section of a foreign set- 
 tlement north of the Yang King Pang by former Taotai Kung and former British 
 
 * Translation from the Chinese text. 
 
 t The same, mutatis mutandis, was sent the same day by Count Mouravieff, Minister of 
 Foreign Affairs of Russia, to Sir Charles Scott.
 
 206 CHINA TREATIES AND AGREEMENTS 
 
 Consul Parker on the fifth day of the eighth moon, in the twenty-sixth year of 
 Tao Kuang (September 24, 1846), commerce was improved, the laboring classes 
 were benefited and the prosperity of the place increased. 
 
 So that on the second day of the eleventh moon, in the twenty-eighth year 
 of Tao Kuang (November 27, 1848), former Taotai Lin and former British 
 Consul Allen had a consultation concerning extension, and agreed upon bound- 
 aries, mapped out the place and set up boundary stones. 
 
 Later on, on the thirteenth day of the fifth moon of the nineteenth year 
 of Kuang Hsii (June 26, 1893), outside of the first district of the settlement 
 the Hongkew district was set aside for a settlement by former Taotai Nieh, who 
 deputed former Shanghai Magistrate Huang to consult with Mr. Emens, Vice 
 Consul General of the United States acting in behalf of the consuls of the 
 various countries. Boundaries were surveyed and fixed and stones set up. 
 
 Still later, on the tenth day of the second moon, in the twenty-fourth year 
 of Kuang Hsii (March 2, 1898), during the incumbency of former Taotai Ts'ai, 
 an application was received from the Senior Consul, Mr. Stubel, Consul General 
 of Germany, for the extension of the settlement. Instructions were also received 
 from His Excellency Liu, Superintendent of Southern Trade, stating that com- 
 munication had been received from Mr. Brenan, British Consul General at Shang- 
 hai, and Mr. E. T. Williams, Acting Consul General of the United States, point- 
 ing out that the present settlement was not large enough for the increasing busi- 
 ness of Shanghai and asking for an extension, not with any idea of interfer- 
 ing with the authority of Chinese officials, as all rules and regulations concerning 
 Chinese must have the previous approval of the local authorities before they can 
 be enforced. As to the extension of the limits of the settlement a satisfactory 
 arrangement should be made with the local authorities. In obedience to this order, 
 former Taotai Ts'ai proposed boundaries for the extension of the international 
 settlement and communicated them to the Senior Consul, Mr. Valdez, consul Gen- 
 eral of Portugal. But before a satisfactory arrangement was arrrived at, former 
 Taotai Ts'ai was removed. 
 
 I have now assumed office. His Excellency Liu, Superintendent of South- 
 ern Trade, has appointed Deputies Ferguson and Yii to come to Shanghai, to be 
 associated with me in the settlement of the question. Realizing that business in 
 Shanghai is daily increasing and that the place is not large enough, it was 
 plainly my duty to have a discussion concerning the extension of the International 
 Settlement. A conference was held between Deputies Ferguson and Yii, the 
 consuls of the various countries and myself, when a satisfactory arrangement 
 was concluded. 
 
 In the rules and regulations for the former settlement, which were from 
 time to time agreed on, and in the new regulations for the Hongkew settle- 
 ment, the rights of the Chinese people with regard to houses and land, graves, 
 and waterways are all plainly stated and will be protected. These regulations 
 were sometime ago printed and placed at the gate of the Municipal Council as 
 well as in other public places, for the information and compliance of everyone. 
 
 The Shanghai district magistrate is now ordered to carry into effect our 
 decision regarding the international extension, make a map, and set up boundary
 
 NUMBER 1899/5 : JUNE 1, 1899 207 
 
 Stones in conjunction with Deputies Ferguson and Yii and with the chairman 
 of the Municipal Council. 
 
 Having sent despatches to the consuls of the various countries on the sub- 
 ject, I feel in duty bound to issue this proclamation that all classes of people 
 may be informed about the matter; and hereafter all matters within the settle- 
 ment will be governed by the rules and regulations, excepting temples and 
 Chinese Government property, which are not under the control of the Munic- 
 ipal Council. 
 
 Let all obey this special proclamation ! 
 Boundaries of the international settlement extension. 
 East, from Yangtzepoo Bridge in the American settlement to Chou Chia Chui. 
 West, from Ni Ch'eng Bridge (Mud City Bridge) to Cheng An Ssu Chen 
 (Bubbling Well Temple), and from a straight line drawn from 
 Bubbling Well Temple to the south bank of Soochow Creek at Sinza. 
 South, from Pa Hsien Bridge (Bridge of the Eight Fairies) in the French Set- 
 tlement to Cheng An Ssu Chen (Bubbling Well Temple). 
 North, from the fifth boundary stone in the Hongkew settlement to the north 
 boundary of Shanghai district ; that is, from the boundary line be- 
 tween Shanghai and Paoshan districts in a straight line to Chow 
 Chia Chui. 
 The (23) day of the fourth moon, in the twenty-fifth year of Kuang Hsii 
 (May 2, 1899). 
 
 NUMBER 1899/5. 
 
 RUSSIA AND CHINA. 
 
 Note of the Tsitng-li Yamcn to the Russian Minister at Peking in regard to the 
 construction of railways northzvard and northeastward front Peking* — 
 June 1, 1899. 
 
 Your Excellency : 
 
 We discussed with Your Excellency a few days ago the subject of a 
 railway connecting the Manchurian Railway with Peking, and explained the 
 difficulty felt by the Chinese Government in acceding to the proposal. But we 
 stated clearly that no other Government would be allowed to construct such a 
 railway. 
 
 We now wish to reiterate in the plainest terms that China agrees that if 
 railways are in future built from Peking to the north or to the northeast 
 towards the Russian border, China reserves the right to construct such roads 
 with Chinese capital and under Chinese supervision, but if it is proposed to 
 have such construction undertaken by any other nation, the proposal shall be 
 first made to the Russian Government or to the Russian syndicate to construct 
 
 * Translation from the Chinese text. See Note to this document, post. p. 208.
 
 208 CHINA TREATIES AND AGREEMENTS 
 
 the railway, and on no consideration will any other Government or a syndicate 
 of any other nationality be allowed to construct the railway. 
 
 We ask Your Excellency to communicate this message to the Foreign Office 
 of Your Excellency's Government. 
 
 Note 
 
 The following is a translation from the Chinese version of the acknowledgment ad- 
 dressed to the Tsung-li Yamen by the Russian Minister (Mr. de Giers) under date of 
 June 17, 1899:— 
 
 Reply of Russian Mirkister in regard to Railways Northward and Northeastward from 
 
 Peking. — June 17, 1899. 
 
 " Receipt is acknowledged of Your Excellencies' note of the twenty-third day of the 
 fourth moon of this year (June 1, 1899), stating that the Chinese Government would not 
 allow any other Government to construct a railway to Peking, and furthermore agreeing 
 that if railways are in future built from Peking to the north or to the northeast towards 
 the Russian border, no matter in what direction, China reserves the right to construct such 
 roads with Chinese capital and under Chinese supervision, but if it is proposed to have such 
 construction undertaken by any other nation, the proposal shall first be made to the Russian 
 Government or to the Russian syndicate to construct the railway, and on no consideration 
 will any other Government or a syndicate of any other nationality be allowed to construct 
 the railway. 
 
 "The statements above set forth were communicated, in accordance with your request,- 
 to my Government, and I have now received a reply from Count Mouravieflf, as follows: 
 
 '* ' The assurances of the Chinese Government have been respectfully noted. While 
 the Russian Government will not at once ask for the construction of a road con- 
 necting the main line of the Manchurian Railway with Peking, the demand of Russia 
 for the construction of this road was based on the responsibility assumed by the 
 Chinese Government in its note of the thirteenth day of the sixth moon of last year 
 (July 31, 1898), which is direct and incontrovertible, the failure to fulfil which involves 
 an indemnity. This responsibility cannot therefore be allowed to lapse.' " 
 
 In connection with this note, see the Anglo-Russian exchange of notes of April 28, 1899 
 (No. 3, 1899/3, ante) ; Agreement between Russia and China concerning Manchuria, April 
 8, 1902 (No. 1902/3, post) ; Agreement for the transfer of the Peking-Shanhaikuan Railway 
 to the Chinese Civil Administration, and the Additional Agreement respecting the manage- 
 ment of the northern railways, April 29, 1902 (No. 1902/4, post), and note of the Wai-wu Pu 
 to the Russian Minister, June 10, 1902, attached thereto. 
 
 NUMBER 1899/6. 
 
 KOREA AND CHINA. 
 Treaty of amity and commerce* — September 11, 1899. 
 
 His Majesty the Emperor of Korea and His Majesty the Emperor of 
 China, being sincerely desirous of establishing permanent relations of har- 
 mony and friendship between their respective subjects, have resolved to con- 
 
 * Translation from the Chinese text, as printed in Rockhill. p. 424. Printed also in 
 English translation in Hcrtslct, p. 241; Customs, Vol. II, p. 864. 
 
 Hertslet (p. 241) notes that by Article 2 of the convention between Japan and Korea
 
 NUMBER 1899/6: SEPTEMBER 11, 1899 209 
 
 dude a treaty for that purpose, and have therefore named as their plenipoten- 
 tiaries, that is to say : 
 
 His Majesty the Emperor of Korea, Pak Chai Sun, Korean Minister of 
 Foreign Affairs, Minister of the Council of State, etc., His Majesty's Minister 
 Plenipotentiary ; 
 
 His Majesty the Emperor of China, Hsii Shou Peng, an official of the 
 second grade, Director of the Imperial Stud, His Majesty's Minister Plenipoten- 
 tiary ; 
 
 Who, after having communicated to each other their respective full powers, 
 found in due and good form, have agreed upon and concluded the following 
 commercial treaty : 
 
 Article I. — Peace, friendship, good offices. — There shall be perpetual 
 peace and friendship between the Empire of Korea and the Empire of China, 
 and between their respective subjects, who shall enjoy equally in the respective 
 countries of the High Contracting Parties full protection and the advantages 
 of favorable treatment. 
 
 H other powers should deal unjustly or oppressively with either Government, 
 the other, on being informed of the case, will exert their good offices to bring 
 about an amicable arrangement, thus showing their friendly feelings. 
 
 Article H. — Diplomatic representatives. — After the conclusion of this 
 treaty of amity and commerce, the High Contracting Parties may each appoint 
 diplomatic representatives to reside at the court of the other, and may each 
 appoint consular representatives at the ports of the other which are open to 
 foreign commerce, at their own convenience. 
 
 These officials shall have relations with the corresponding local authorities 
 of equal rank upon a basis of mutual equality. 
 
 The diplomatic and consular representatives of the two Governments shall 
 enjoy mutually all the privileges, rights, and immunities, without discrimination, 
 which are accorded to the same class of representatives from the most favored 
 nation. 
 
 Consular representatives. — Consuls shall exercise their functions only 
 on receipt of an exequatur from the Government to which they are accredited. 
 
 No restrictions or difficulties shall be imposed upon the movement of the 
 members of the official establishments of either country or upon messengers 
 carrying official dispatches. 
 
 Consular authorities shall be bona fide officials. No merchant shall be per- 
 mitted to exercise the duties of the office, nor shall consular officers be allowed 
 to engage in trade. 
 
 At ports to which no consular representatives have been appointed the con- 
 suls of the other powers may be invited to act, provided that no merchant shall 
 be allowed to assume consular functions." 
 
 of November 17, 1905, providing for the control of Korean foreign relations by Japan, 
 it is stipulated that "The Government of Japan undertake to see to the execution of the 
 Treaties actually existing between Korea and other Pov^^ers ". The proclamation of the 
 Japanese Government in connection with the Treaty of annexation of Korea, concluded 
 August 22, 1910, made the announcement that " Treaties hitherto concluded by Korea with 
 foreign Powers ceasing to be operative, Japan's existing Treaties will, so far as practicable, 
 be applied to Korea."
 
 210 CHINA TREATIES AND AGREEMENTS 
 
 If the consular representatives of either country conduct their business in 
 an improper manner, they shall be withdrawn on notice being given to the 
 diplomatic representatives of the country concerned. 
 
 Article III. — Merchants, merchant vessels. — Merchants and merchant 
 vessels of Korea visiting Chinese treaty ports for purposes of trade shall pay 
 import and export duties and tonnage dues and all other charges according to 
 the Chinese customs regulations and on the same terms as the similar duties levied 
 on the subjects of the most favored nation. 
 
 Chinese merchants and merchant vessels visiting Korean treaty ports for 
 purposes of trade shall pay import and export duties and tonnage dues and 
 all other charges according to the Korean customs regulations and upon the 
 same terms as the duties levied upon the subjects of the most favored 
 nation. 
 
 The subjects of both powers shall be allowed to resort for purposes of 
 trade to all the open ports in the dominion of the other. 
 
 Regulations for the conduct of trade and the customs tariff shall be those 
 enjoyed by the most favored nation. 
 
 Article IV. — Rights at open ports. — 1. Subjects of Korea who may 
 proceed to the Chinese open ports may reside and rent premises or lease land 
 and erect warehouses as they please within the limits .of the settlements. They 
 shall be at liberty to traffic in all kinds of native produce, in all manufactured 
 goods, and in all articles that are not declared contraband. 
 
 Subjects of China who may proceed to the Korean open ports may reside 
 and rent premises or lease land and erect warehouses as they please within the 
 limits of the settlements. They shall be at liberty to traffic in all kinds of 
 native produce, in all manufactured goods, and in all articles that are not 
 declared contraband. 
 
 2. All questions affecting the renting of land, the building of houses, the 
 laying out of cemeteries, the payment of rent and taxes, and other matters of 
 a similar nature at the treaty ports of either country are to be determined in 
 accordance with the settlement and municipal council regulations of the ports, 
 which must not be infringed. 
 
 If there is, in addition to a general foreign settlement at a treaty port in 
 either country, a settlement under the separate control of a foreign power, 
 questions affecting the renting of land and similar matters shall be governed by 
 the regulations of the settlement, which must not be infringed. 
 
 Leasing and purchasing land. — 3. Chinese subjects shall enjoy all bene- 
 fits and advantages granted to foreigners with reference to the leasing or pur- 
 chase of land or houses beyond the limits of the foreign settlements at the 
 treaty ports of Korea. But all lands so occupied shall be subject to such con- 
 ditions as to the observance of Korean local regulations and payment of land tax 
 as the Korean authorities may see fit to impose. 
 
 Korean subjects shall enjoy all benefits and advantages granted to foreigners 
 with reference to the leasing or purchase of land or houses beyond the limits 
 of the foreign settlements at the treaty ports of China. But all lands so oc- 
 cupied shall be subject to such conditions as to the observance of Chinese local
 
 NUMBER 1899/6: SEPTEMBER 11, 1899 211 
 
 regulations and the payment of land tax as the Chinese authorities may see 
 fit to impose. 
 
 4. The subjects of neither country shall be permitted to rent land or 
 houses or open warehouses beyond the limits of the area open to foreign trade 
 at the treaty ports of the High Contracting Parties. The penalty for a breach 
 of this stipulation shall be the confiscation of the land and a fine of twice their 
 original value. 
 
 5. No coercion or intimidation in the acquisition or lease of land shall be 
 permitted and the land so occupied shall remain an integral part of the State. 
 
 6. If merchandise is sent by the subjects of one of the High Contracting 
 Parties from one treaty port in the other country to another treaty port in 
 the same country it shall be subject to the same dues and duties, prohibitions 
 and regulations as obtain in the case of the subjects of the most favored nation. 
 
 Article V. — Punishment of crimes. — 1. A Chinese subject who com- 
 mits any offense in Korea shall be tried and punished by the Chinese consular 
 authorities according to the laws of China. 
 
 A Korean subject who commits any offense in China shall be tried and 
 punished by the Korean consular ofificials according to the laws of Korea. 
 
 A Chinese subject who commits any offense against the life or property of 
 a Korean in China shall be tried and punished by the Chinese authorities ac- 
 cording to the laws of China. 
 
 A Korean subject who commits any offense against the life or property 
 of a Chinese in Korea shall be tried and punished by the Korean authorities 
 according to the laws of Korea. 
 
 Mixed cases. — When controversies arise between the subjects of the two 
 countries they shall be decided by the proper official of nationality of tlie 
 defendant according to the laws of that country. 
 
 The properly authorized official of the plaintiff's nationality shall be per- 
 mitted to attend the trial and watch the proceedings, and shall be treated with 
 the courtesy due to his position. If he so desires, he shall have the right to call 
 and examine witnesses, and if he is dissatisfied with the proceedings he shall 
 be permitted to protest against them in detail. 
 
 Refuge. — 2. If a subject of one of the High Contracting Parties who has 
 committed an offense against the laws of his country takes refuge on the 
 premises or on board a ship owned by a subject of the other the local officials, 
 after having notified the consular authorities, shall send police to assist in 
 having the offender arrested and brought to justice. The authorities of the 
 nationality of the offender shall try the case. No protection or concealment of 
 any such person shall be permitted. 
 
 Extradition. — 3. If a subject of one of the High Contracting Parties who 
 has committed an offense against the laws of his country takes refuge in the 
 dominions of the other the authorities of the latter country, on receiving an 
 application, shall discover and hand over such person to his country for trial. 
 No concealment or protection of any such person shall be permitted. 
 
 Extraterritoriality. — 4. When in the judgment of either of the High Con- 
 tracting Parties the laws and legal procedure of the other shall have been so
 
 212 CHINA TREATIES AND AGREEMENTS 
 
 far modified and reformed as to remove the present existing objections, the right 
 of extraterritorial jurisdiction shall be relinquished. 
 
 Article VI. — Export of rice and grain. — In China the export of rice 
 and grain to foreign countries has always been prohibited. There is no prohi- 
 tion of this kind in Korea, but it is agreed that whenever there is reason to 
 apprehend a scarcity of food within the limits of the Empire a prohibition 
 against the export of rice and grain may be enforced, and shall be binding upon 
 Chinese subjects when it shall have been officially communicated by the Korean 
 local authorities to the Chinese authorities concerned. 
 
 Article VII. — Fraudulent sales, debts. — If the subjects of either of the 
 High Contracting Parties in their commercial dealings with each other are 
 guilty of fraud or make fictitious sales, or do not pay their debts, the authori- 
 ties of both Powers shall use stringent measures to arrest the offenders and 
 obtafn payment of the debts. 
 
 The Governments of the High Contracting Powers shall not be responsible 
 for debts of this nature. 
 
 Article VIII. — Passports. — Chinese subjects shall have the right to travel 
 under passports in the interior of Korea for purposes of pleasure or trade. 
 They are, however, forbidden to reside or to open establishments for trade 
 there. The penalties for a breach of this stipulation are the confiscation of the 
 goods and a fine of twice their original value. 
 
 Korean subjects shall have the right to travel under passports in the in- 
 terior of China for purposes of pleasure or trade, and shall receive most favored 
 nation treatment in this respect. 
 
 Article IX. — Arms, munitions. — The purchase of arms, munitions, and im- 
 plements of war, as ordnance or cannon, shot and shell, firearms of all kinds, 
 cartridges, sidearms, spears or pikes, saltpeter, gunpowder, gun cotton, dynamite, 
 and other explosive substances is permitted only to the officials of the two Con- 
 tracting Powers, and they may be imported by the subjects of either only under 
 a written permit issued by the officials of the country into which they are 
 imported. 
 
 If these articles are clandestinely imported or sold they shall be confiscated 
 and the offending party fined twice their original value. 
 
 Import of opium into Korea, export of red ginseng from. — The import 
 of opium into Korea is prohibited, and if either foreign or Chinese grown opium 
 is imported by Chinese subjects it shall be confiscated and the offending party 
 fined twice its original value. 
 
 The export of red ginseng from Korea has always been prohibited. If 
 Chinese subjects clandestinely buy and export it without the special permission 
 of the Korean Government, it shall be seized and confiscated and the offenders 
 punished as circumstances may require. 
 
 Article X. — Ports of refuge. — Whenever vessels of either of the two 
 Contracting States are detained on the coast of other through stress of weather 
 or want of fuel or provisions they may enter any port or harbor either to take 
 refuge therein or to get supplies, or to make repair; the expenses incurred 
 thereby being defrayed by the ship's master. In such event the officers and
 
 NUMBER 1899/6: SEPTEMBER 11, 1899 213 
 
 people of the locality shall render all the assistance in their power and furnish 
 the necessaries required. 
 
 Clandestine trade. — If a vessel trades clandestinely at a port not open 
 to commerce, or at any place where she is forbidden to proceed, the vessel, 
 with her cargo, whether any trade has actually taken place or not, shall be 
 seized and confiscated by the local authorities and the nearest customs offi- 
 cials, and the offenders shall incur a fine of twice their original value. 
 
 Wrecks, their cargoes and crews. — Should a vessel of either Power be 
 wrecked on the coast of the other, the local authorities, on being informed of the 
 occurrence, shall immediately render assistance to the crew, provide for their 
 immediate necessities, and take requisite measures for the salvage of the ship 
 and the preservation of her cargo. They shall also bring the matter to the 
 knowledge of the nearest consular representative, in order that steps may be taken 
 to send the crew home and to save the ship and her cargo. The necessary ex- 
 penses shall be defrayed either by the ship's master or by the authorities of the 
 nationality of the vessel concerned. 
 
 Article XI. — Employment of natives. — The officers and people of either 
 Power residing at trading places in the dominions of the other shall have the 
 right to employ natives in any lawful capacity. 
 
 Article XII. — Tariff and frontier trade rules. — After the present treaty 
 has been concluded, a tariff and rules shall be drawn up to regulate the frontier 
 trade which has hitherto been carried on between the two Empires. All persons 
 who have already crossed the frontier and reclaimed ground shall be allowed 
 to pursue their avocations in peace and enjoy protection for their lives and 
 property. 
 
 Migration. — From this time forward migration across the frontier shall 
 be prohibited on both sides in order to avoid complications. 
 
 Frontier mart. — The question of the determination of the site of a trade 
 mart is reserved for discussion and settlement when the frontier rules come 
 to be drawn up. 
 
 Article XIII. — Ships of war. — The ships of war of each country shall 
 be at liberty to visit all the ports of the other whether open to foreign trade 
 or not. 
 
 They shall not be permitted to clandestinely import merchandise. 
 
 Supplies of all kinds for ships of war of either country shall not be liable 
 to the payment of duties. 
 
 Officers and men of the ships of war of either country may land anywhere 
 in the territories of the other, but shall not proceed into the interior unless they 
 are provided with passports. 
 
 If articles used on board ship are for any reason sold, the purchaser shall 
 pay the proper duty. 
 
 Article XIV. — The present treaty shall be ratified by His Majesty the 
 Emperor of Korea and His Majesty the Emperor of China under their hands and 
 seals, and the ratifications shall be exchanged at Seoul within one year at the 
 latest from the date of signature, and immediately thereafter this treaty shall 
 be in all its provisions publicly proclaimed and made known by both Govern-
 
 214 CHINA TREATIES AND AGREEMENTS 
 
 ments in their respective countries, in order that it may be obeyed by their sub- 
 jects, respectively, t 
 
 Article XV. — The Chinese written character being common to both Korea 
 and China, this treaty and future official correspondence shall be made in Chinese 
 for the sake of clearness. 
 
 Hsu Shou Peng, 
 Envoy Extraordinary and Minister Plenipotentiary 2'"^ Rank. 
 Director of the Imperial Stud. For His Majesty the Em- 
 peror of China, 7th day, 8th moon, 25th year of Kuang Su. 
 
 Pak Chai Sun, 
 
 Envoy Extraordinary and Minister Plenipotentiary. Minis- 
 ter for Foreign Affairs and Councillor of State. llth Sep- 
 tember, 1899. 3d year of Kwang Mu. 
 
 NUMBER 1899/7. 
 
 MEXICO AND CHINA. 
 
 Treaty of amity and commerce.* — December 14, 1899. 
 
 The President of the United Mexican States and His Majesty the Em- 
 peror of China, being equally animated by the desire to establish friendly rela- 
 tions between the two countries and their citizens and subjects, have resolved 
 to conclude a Treaty of friendship, commerce and navigation, and for that pur- 
 pose have named their respective Plenipotentiaries, that is to say : 
 
 The President of the United Mexican States, Manuel de Azpiroz. Ambas- 
 sador Extraordinary and Plenipotentiary of the United Mexican States in Wash- 
 ington, and 
 
 His Majesty the Emperor of China, Wu Ting-fang, an Official of the Sec- 
 ond Rank, Minister of State of the Fourth Class by brevet, and Envoy Extraor- 
 dinary and Minister Plenipotentiary to the United States of America, Spain 
 and Peru ; 
 
 And we, the said Plenipotentiaries, after having exhibited our respective 
 full powers, and finding them in due and good form, have agreed upon the 
 following articles : 
 
 Article I. — Friendship. Free intercourse. Most favored nation treat- 
 ment. — There shall be perpetual, firm and sincere friendship between the 
 United Mexican States and the Chinese Empire, as also between their re- 
 spective citizens and subjects. They shall be at liberty to freely go to the 
 respective countries of the High Contracting Parties and reside therein. They 
 shall there have complete protection in their persons, families and property, 
 
 * Text as reprinted in Rockhill, p. 468. from Diario Oficial, July 24, 1900. Printed also 
 in Customs. Vol. II, p. 833 : Hertslet. p. 399. 
 
 t Ratifications exchanged December 14, 1899.
 
 NUMBER 1899/7: DECEMBER 14, 1899 215 
 
 and they shall enjoy all the rights and advantages which are granted to the 
 subjects of the most favored nation. 
 
 Article II. — Diplomatic agents. Rights. Immunities. — In order to 
 facilitate friendly relations between the two countries, the President of the 
 United Mexican States may appoint a Diplomatic Agent to the Court of Peking 
 and His Majesty the Emperor of China may, likewise, appoint a Diplomatic 
 Agent near the Mexican Government. 
 
 The Diplomatic Agents of each of the High Contracting Parties may re- 
 side permanently or temporarily in the Capital of the other, with their families 
 and members of their suite, and enjoy, in the countries of their respective resi- 
 dence, the same prerogatives, exemptions, immunities and privileges granted to 
 the Agents of the same rank of the most favored nation. 
 
 Article III. — Consular officers. Rights. Immunities. — Each of the 
 High Contracting Parties may appoint, at the ports or cities of the other, 
 open to foreign commerce. Consuls General, Consuls, Vice-Consuls and Consular 
 Agents. These shall not enter in the discharge of their duties until they receive 
 the Exequatur of the Government of the Country where they are to reside. 
 The Exequatur shall be issued free of charge. At the ports or cities where no 
 Consul is appointed, his functions may be performed by a Consul of a friendly 
 nation. Where there is no Consul, the local authorities shall see that the citizens 
 or subjects of the other Contracting Party enjoy the benefits of the present 
 Treaty. 
 
 The Consular Officers of the High Contracting Parties shall perform all 
 the functions and enjoy all the immunities and privileges which, in either of 
 the two countries, are granted to the Consular Officers of the most favored 
 nation. 
 
 The Consular Officers shall not support the demands of their citizens or 
 subjects if provocative or offensive to the authorities or inhabitants of their place 
 of residence. 
 
 Should a Consular Officer adopt ofifensive conduct towards the laws of the 
 country of his residence, the Exequatur may be withdrawn from him. 
 
 Article IV. — Passports for Mexicans in China. — Mexican citizens shall 
 be permitted to go into the interior of China and travel therein, provided they 
 are furnished with a passport issued, at the request of the Mexican Consul, 
 by the Customs Taotai. This passport, written in the two languages, Spanish and 
 Chinese, must be shown when the authorities of the place of transit ask it, and 
 returned at the end of the journey. No obstacle shall be placed in the way 
 of travelers engaging men, vehicles or vessels for the transportation of their 
 
 In case the traveler is not provided with the proper passport, or he com- 
 mits an unlawful act, he shall be delivered for trial to the nearest Consul of 
 Mexico or of a friendly nation previously designated by the Mexican Govern- 
 ment. In this case the local authorities can only arrest the traveler without in- 
 sulting him or permitting any violence to him. 
 
 Mexican citizens shall be at liberty to make excursions without the necessity 
 of providing themselves with a passport, in the neighborhood of the open ports,
 
 216 CHINA TREATIES AND AGREEMENTS 
 
 for a distance not exceeding one hundred li, and for a time not exceeding five 
 days. 
 
 These stipulations are not appHcable to the crews of vessels, who shall be 
 subject, during their stay on land, to the regulations established by the Consuls 
 and the authorities. 
 
 Chinese travelers in Mexico. — Chinese subjects shall be at liberty to travel 
 through all the territory of Mexico, as long as they conduct themselves peace- 
 ably and do not violate the laws and regulations of the country. 
 
 Article V. — Free emigration only allowed. — It is agreed between the 
 two High Contracting Parties that the emigration of their respective subjects, 
 whether accompanied by their families or not, shall be in future free and volun- 
 tary ; consequently they disapprove of every act of violence or trickery which 
 might be committed in the ports of China or anywhere else for the purpose 
 of. expatriating Chinese subjects, against their will. 
 
 Prosecution for forcing emigration. — The two Governments engage 
 themselves to prosecute with all the rigor of the laws any contravention of 
 the preceding stipulation and to impose penalties established by their respective 
 legislations upon the persons and ships who may violate this stipulation. 
 
 Article VI. — Trade. — Mexican citizens shall be at liberty to travel with their 
 merchandise and engage in commercial pursuits in all the ports of China where 
 the subjects of other nations are permitted to engage in commerce. 
 
 Chinese subjects shall, likewise, be at liberty to travel and engage in com- 
 merce in all places of the Mexican Republic, under the same conditions as the 
 subjects of all other nations. 
 
 Limitation of most-favored-nation provision. — It is to be understood 
 that, in case either of the High Contracting Parties should hereafter 
 grant, of its own accord, to any other nation, advantages subject to special con- 
 ditions, the other Contracting Party shall enjoy said advantages, only provided 
 it complies with the conditions imposed therein or their equivalent, to be mutually 
 agreed upon. 
 
 Article VII. — Citizens and merchant vessels. — The citizens or sub- 
 jects and merchant vessels of each of the High Contracting Parties shall be 
 subject, at the ports of the other open to foreign commerce, to the legal pro- 
 visions which now regulate commerce with all other nations or which may be 
 issued hereafter. 
 
 Article VIII. — Import and export duties. — The import duties imposed 
 in the United Mexican States on the produce of the soil and industry of China^ 
 and in the Empire of China on the produce of the soil and industry of Mexico, 
 shall be no other nor higher than those to which the same produce of the most 
 favored nation are or may be subject. 
 
 The same principle shall be observed in regard to exportation. 
 
 Prohibition or restriction of trade. — No prohibition nor restriction of 
 importation or exportation shall take place in the reciprocal commerce of both 
 countries, unless it be likewise applied to all other nations, except for sanitary 
 motives or for the purpose of preventing the propagation of epizootics or the 
 loss of crops, or also in view of events of war.
 
 NUMBER 1899/7: DECEMBER 14, 1899 217 
 
 Article IX. — Ships of war. Their privileges. — The ships of war of 
 each of the Contracting Parties shall be admitted into the ports of the other, 
 where those vessels of all other nations are allowed to enter, and to be treated 
 as those of the most favored nation. 
 
 They shall have entire liberty to purchase provisions, coal and the neces- 
 sary articles for a voyage, as also to get water and have all necessary repairs 
 made. 
 
 The ships of war shall be exempt from the payment of all duties, both on 
 their arrival and departure. 
 
 The Commanders of Mexican ships of war in China and the local principal 
 authorities shall mutually treat each other on the basis of equality. 
 
 Article X. — Exemption from military service, forced loans, etc. — The 
 citizens or subjects of each of the Contracting Parties, in the dominions and 
 possessions of the other, shall be exempt from all compulsory military service 
 whatever, whether in the army, navy or national guard, or militia. They shall 
 likewise be exempt from all contributions, whether pecuniary or in kind, im- 
 posed as a compensation for personal service, and, finally, from forced loans and 
 from charges, requisitions, and war contributions, unless imposed on real property 
 when they shall pay them equally with nationals. 
 
 The vessels, cargoes, merchandise or effects of citizens or subjects of neither 
 Contracting Party shall be detained for any military expeditions or for any 
 public purpose whatever without corresponding compensation first being agreed 
 upon and settled. 
 
 Article XL — Merchant vessels. — The merchant vessels of each of the 
 Contracting Parties shall be at liberty to frequent the ports of the other open 
 to foreign commerce or that may hereafter be opened. 
 
 It is, however, agreed that this concession does not extend to the coasting 
 trade, granted only to the national vessels in the territory of each of the 
 Contracting Parties. But, if one of them should permit it wholly or in part 
 to any nation or nations, the other Party shall have the right to claim the same 
 concessions or favors for its citizens or subjects, provided said Contract- 
 ing Party is willing, on its part, to grant reciprocity in all its claims on this 
 point. 
 
 Most-favored-nation treatment for merchant vessels. — The vessels of 
 each of the Contracting Parties shall not be subject, in the territory or ports 
 of the other, on their entrance, departure or stay, to other or higher duties, 
 charges or fees of public officials on account of tonnage, lighthouse, port, pilot- 
 age, quarantine, salvage, assistance in case of damage or shipwreck, nor to 
 other charges or duties, local or federal of whatever kind or denomina- 
 tion, than are paid or which may hereafter be paid by vessels of any other 
 nation. 
 
 For the application of this and other articles of the present Treaty, those 
 are to be understood as ports of each of the Contracting Parties, which are 
 opened or that may hereafter be opened to the import and export trade by 
 the respective Governments. 
 
 Limit of territorial waters. — The two Contracting Parties agree upon
 
 218 CHINA TREATIES AND AGREEMENTS 
 
 considering a distance of three marine leagues, measured from the line of low 
 tide, as the limit of their territorial waters, for everything relating to the 
 vigilance and enforcement of the Custom-House regulations and the necessary 
 measures for the prevention of smuggling. 
 
 Refuge. — The vessels of each of the High Contracting Parties which 
 may have been disabled near the coasts of the other and may have to seek 
 shelter in a port, shall receive from the local authorities all the assistance which 
 they can render. 
 
 The merchandise saved shall not be subject to the payment of duties, unless 
 it shall be landed for the purpose of sale. 
 
 Such vessels shall be treated on the same terms as are granted under 
 similar circumstances to those of other countries. 
 
 Article XH. — Contract laborers. — The engagement by contract of 
 citizens or subjects of one country as laborers, servants or the like in planta- 
 tions, mills, shops, business establishments or private families in the other country, 
 shall be subject to rules to be established by mutual agreement between both 
 High Contracting Parties. 
 
 Article XHI. — Jurisdiction over Mexicans in China. — Mexicans in 
 China who may have occasion of complaint against Chinese, shall lay their 
 complaint before the Mexican Consul, who shall investigate the facts of the case 
 and exert himself to bring about an amicable settlement. 
 
 If a Chinese should likewise, have any occasion of complaint against a 
 Mexican in China, the Mexican Consul shall listen to his complaint, and try 
 to obtain a friendly settlement. Should the Consul be unable to reconcile the 
 parties, the case is then to be submitted, in all equity, whether the plaintiff 
 be a Mexican or a Chinese, only to the Court to which the accused is sub- 
 ject. 
 
 Article XIV. — Criminal cases. — Mexican citizens in China who may 
 commit any crime against Chinese subjects, shall be arrested by the Mexican 
 Consular authorities and punished in accordance with the laws of Mexico. 
 
 Chinese subjects guilty of criminal acts against Mexican citizens in China, 
 shall be arrested and punished by the Chinese authorities in conformity with the 
 laws of China. 
 
 As a general rule, every civil or criminal suit instituted in China, between 
 the citizens or subjects of the two Contracting Parties, shall be tried only ac- 
 cording to the laws and by the authorities of the country to which the defendant 
 or accused belongs. 
 
 Fraud, robbery. — The High Contracting Parties shall not be bound to 
 reimburse any money that has been stolen or obtained by fraud, or owing 
 by a citizen or subject of one of the two countries to a subject or citizen 
 of the other country. In case of robbery or fraud the proceedings to be instituted 
 shall be in accordance with the laws of the country to which the accused be- 
 longs, and in case of debt, the authorities of the country of the debtor shall do 
 all they can to make the debtor comply with his obligation. 
 
 Chinese criminals to be surrendered. — Should Chinese subjects in 
 China, who are principal actors or accomplices of a crime, take refuge in the
 
 NUMBER 1899/7: DECEMBER 14, 1899 219 
 
 houses, warehouses or on board the merchant vessels of Mexican citizens, the 
 Chinese authorities shall lay the facts in this case before the Mexican Consular 
 Officers, and they shall conjointly appoint agents for the apprehension of the 
 criminals, who shall not be protected nor hidden. 
 
 Article XV. — Jurisdiction over Mexicans in China, — All legal ques- 
 tions that may arise in China between Mexican citizens concerning their persons 
 or property shall be subject to the exclusive jurisdiction of the Mexican au- 
 thorities. Suits instituted in China between Mexican citizens and foreigners 
 shall be decided only by the authorities of their respective countries. 
 
 When Chinese shall be concerned in suits, the proceedings shall be in ac- 
 cordance with the provisions of the two preceding articles. 
 
 Should the Chinese Government think proper, hereafter, to establish, in 
 accord with foreign powers, a code for the purpose of settling the matter of 
 jurisdiction over foreign subjects in China, Mexico shall have an equal share in 
 said agreement. 
 
 Article XVI. — Punishment of disturbers of peace. — Persons, of whatever 
 condition they may be, who may land from vessels of one of the High Contract- 
 ing Parties, at an open port of the other, and cause any disturbance on shore, 
 within twenty four hours of their landing, shall be punished by the proper local 
 authorities, but only with fine or imprisonment in accordance with the usages 
 established at said port. 
 
 Collisions in Chinese waters. — The questions arising from collisions in 
 Chinese waters between vessels of the two countries, shall be decided by the 
 authorities of the accused in accordance with the legal regulations in force in 
 all countries respecting collisions. 
 
 Should the complainant not be satisfied with the decision, the agents of 
 the country to which he belongs shall be authorized to apply officially to the 
 authorities that have tried the offender, and they shall retry the case and give a 
 final and equitable decision on the same. 
 
 Article XVII. — Legal rights of Chinese in Mexico. — Chinese subjects in 
 Mexico shall have free access to the judicial tribunals of the country for the 
 defense of their legitimate rights. They shall enjoy, in this respect, the same 
 rights and concessions enjoyed by Mexicans or by subjects of the most favored 
 nation. 
 
 Article XVIII. — English text authoritative. — This Treaty shall be en- 
 grossed in the three languages Spanish, Chinese and English ; the Spanish text 
 shall be observed in Mexico, the Chinese text in China, and, in case of dis- 
 agreement, the English version shall be decisive. 
 
 Article XIX. — Revision. — This Treaty shall remain in force for ten 
 years reckoned from the day of the exchange of ratications. The High Con- 
 tracting Parties can, at the expiration of that time, propose modifications by 
 means of a notice to be given six months in advance ; and if neither of them 
 should do so, the Treaty shall continue to remain in force in all its provisions 
 until the expiration of one year after one of the Parties has expressed to the 
 other its intention of terminating it. 
 
 Article XX. — This Treaty shall be ratified by the two High Contracting
 
 220 CHINA TREATIES AND AGREEMENTS 
 
 Parties and the ratifications shall be exchanged at Washington, as soon as 
 possible. t 
 
 In witness whereof, we, the respective Plenipotentiaries, have signed this 
 Treaty and have hereunto affixed our respective seals. 
 
 Done at Washington, in two originals in three languages Spanish, Chinese 
 and English, this fourteenth day of December of the year One thousand eight 
 hundred and ninety nine of the Christian era, corresponding to the twelfth 
 day of the eleventh moon of the twenty-fifth year of Kwang-Hsu. 
 
 [seal] Manuel de Azpiroz. 
 [seal] Wu Ting-fang. 
 
 NUMBER 1900/1. 
 
 FRANCE AND GREAT BRITAIN. 
 
 Exchange of notes respecting regulations to be applied in any future extension of 
 the British or French concession at Hankow.* — January 15, 1900. 
 
 (1). — Note Verhale communicated to M. Canibon. 
 
 It is understood on the part of Her Majesty's Government that, in the 
 event of any extension of the French Concession at Hankow being obtained 
 subsequently to this date, the following conditions as regards British property 
 therein will be strictly observed : — 
 
 1. All deeds applying to British property to be registered in the British 
 Consulate. 
 
 2. All Municipal Regulations to be submitted to Her Majesty's Minister at 
 Peking before they can be enforced on British subjects. 
 
 3. All titles to British property which are declared in order by the British 
 Consul-General are to be so considered by the French authorities. 
 
 With respect to the British claims to land situated in the present French 
 Concession, which are believed to be four in number, and all of which are 
 represented by Mr. Greaves, of Hankow, as it is understood that the validity of 
 the titles is questioned by the French authorities, Her Majesty's Government 
 consent to the question being referred to the British and French Consuls-General 
 at Shanghai, and failing an agreement being arrived at by them, to an Arbitra- 
 tor, by whom the matter would be decided in accordance with precedent and local 
 usage. 
 
 Foreign Office, London, December 22, 1899. 
 
 * Text, and translation from the French text, as printed in Hertslet, p. 589. 
 t Ratifications exchanged at Washington, July 19, 1900.
 
 NUMBER 1900/2: MARCH 20, 1900 221" 
 
 (2). — M. Cambon to the Marquess of Salisbury. f 
 
 Embassy of France, London, January 15, 1900. 
 M. LE Marquis, 
 
 I have the honor to acknowledge the receipt from Your Lordship of the 
 memorandum that you were so good as to send me, on December 22 last, on 
 the subject of the Regulations to be applied in the French Concession at Han- 
 kow, in the event of its being extended. 
 
 My Government, to which I have not failed to refer it, instructs me to 
 make known to you that it gives its adherence to the four points embodied in 
 that document. It is, on the other hand, clearly understood between the two 
 Governments that, in case the British Concession should hereafter be extended, 
 the conditions hereinafter set forth would be applied, insofar as concerns such 
 lands belonging to Frenchmen as might be found situated in the area to be in- 
 cluded in the British Concession : — 
 
 1. All documents relative to French properties must be registered at the 
 French Consulate. 
 
 2. All Municipal Regulations must be submitted to the Minister of France at 
 Peking, before they may be applied to French citizens. 
 
 3. All the title-deeds of properties belonging to Frenchmen which are recog- 
 nized as valid by the French Consul are to be accepted as such by the British 
 authorities. 
 
 Accept, etc. Paul Cambon. 
 
 NUMBER 1900/2. 
 
 UNITED STATES AND FRANCE, GERMANY, GREAT BRITAIN, 
 ITALY, JAPAN AND RUSSIA. 
 
 Declarations accepting the commercial policy of the " Open Door." * — 
 
 March 20, 1900'x 
 
 (I.)— FRANCE. 
 
 Mr. Hay to Mr. Vignaud. 
 
 No. 664.] Department of State, 
 
 Washington, September 6, 1899. 
 Sir : I have to enclose, for your confidential information, copies of instruc- 
 tions I have sent under this date to the United States Ambassadors at London., 
 
 *Text and translations as printed in Rockhill, p. 185. Printed also in For. Rel, 1899; 
 Malloy, p. 244; H. Doc, 547, 56th Congress, 1st session. In further reference to the "open 
 door " agreement, consult Moore's International Law Digest, vol. 5, pp. 534-549, and 
 China, igoo, No. 5. 
 
 In connection with this agreement see also Secretary Hay's Circular to the Powers, 
 July 3. 1900, setting forth the policy of seeking a solution of the Boxer disturbances 
 " which may bring about permanent safety and peace to China, preserve Chinese territorial 
 and administrative entity, protect all rights guaranteed to friendly Powers by Treaty and 
 international law, and safeguard for the world the principle of equal and impartial trade 
 with all parts of the Chinese Empire." (For. Rel., 1900, pp. 299 et seq.) 
 
 t Translation. 
 
 t The date is that of Secretary Hay's instruction to American diplomatic representatives,
 
 222 CHINA TREATIES AND AGREEMENTS 
 
 Berlin, and St. Petersburg in reference to the desire of this Government that 
 the Governments of Great Britain, Germany, and Russia make formal declara- 
 tion of an " open-door " policy in the territories held by them in China. 
 
 I am, etc., John Hay. 
 
 (Enclosures: To London, No. 205, September 6, 1899. To Berlin, No. 927, September 
 6, 1899. To St. Petersburg, No. 82, September 6, 1899.) 
 
 Mr. Hay to Mr. Porter. 
 [Telegram.] 
 
 Department of State, 
 Washington, November 21, 1899. 
 Porter, Ambassador, Paris. 
 
 Informally submit to French Government form of declaration outlined in 
 enclosures with instruction No. 664 of September 6 and ask whether France 
 will join. 
 
 Hay. 
 
 Mr. Delcasse to Mr. Porter. 
 
 [Translation.] 
 
 Foreign Affairs. 
 (Received at United States Embassy at Paris, December 16, 1899.) 
 My Dear Ambassador : I find your note awaiting me on my return. The 
 declarations which I made in the Chamber on the 24th of November last, and 
 which I have had occasion to recall to you since then, show clearly the senti- 
 ments of the Government of the Republic. It desires throughout the whole of 
 China and, with the quite natural reservation that all the Powers interested give 
 an assurance of their willingness to act likewise, is ready to apply in the terri- 
 tories which are leased to it, equal treatment to the citizens and subjects of all 
 nations, especially in the matter of customs duties and navigation dues, as well 
 as transportation tarifiFs on railways. 
 
 I beg you, my dear Ambassador, to accept, etc. 
 
 Delcasse. 
 
 embodying the notification of the acceptance of the American proposal by all the Govern- 
 ments concerned.
 
 NUMBER 1900/2 : MARCH 20, 1900 223 
 
 (II.)— GERMANY. 
 
 Mr. Hay to Mr. White. 
 
 No. 927.] Department of State, 
 
 Washington, September 6, 1899. 
 
 Sir: At the time when the Government of the United States was informed 
 by that of Germany that it had leased from His Majesty the Emperor of China 
 the port of Kiao-chao and the adjacent territory in the province of Shantung, 
 assurances were given to the Ambassador of the United States at BerHn by 
 the Imperial German Minister for Foreign Afifairs that the rights and privileges 
 insured by treaties with China to citizens of the United States would not 
 thereby suffer or be in anywise impaired within the area over which Germany 
 had thus obtained control. 
 
 More recently, however, the British Government recognized by a formal 
 agreement with Germany the exclusive right of the latter country to enjoy 
 in said leased area and the contiguous " sphere of influence or interest " certain 
 privileges, more especially those relating to railroads and mining enterprises ; but, 
 as the exact nature and extent of the rights thus recognized have not been clearly 
 defined, it is possible that serious conflicts of interests may at any time arise, 
 not only between British and German subjects within said area, but that the 
 interests of our citizens may also be jeopardized thereby. 
 
 Earnestly desirous to remove any cause of irritation and to insure at the 
 same time to the commerce of all nations in China the undoubted benefits which 
 should accrue from a formal recognition by the various Powers claiming 
 "spheres of interest" that they shall enjoy perfect equality of treatment for 
 their commerce and navigation within such " spheres," the Government of the 
 United States would be pleased to see His German Majesty's Government give 
 formal assurances, and lend its cooperation in securing like assurances from the 
 other interested Powers, that each within its respective sphere of whatever 
 influence — 
 
 First. Will in no way interfere with any treaty port or any vested interest 
 within any so-called " sphere of interest " or leased territory it may have in 
 China. 
 
 Second. That the Chinese treaty tariff of the time being shall apply to all 
 merchandise landed or shipped to all such ports as are within said " sphere of 
 interest" (unless they be "free ports"), no matter to what nationality it may 
 belong, and that duties so leviable shall be collected by the Chinese Govern- 
 ment. 
 
 Third. That it will levy no higher harbor dues on vessels of another na- 
 tionality frequenting any port in such " sphere " than shall be levied on vessels 
 of its own nationality, and no higher railroad charges over lines built, con- 
 trolled, or operated within its " sphere " on merchandise belonging to citizens or 
 subjects of other nationalities transported through such " sphere " than shall 
 be levied on similar merchandise belonging to its own nationals transported over 
 equal distances.
 
 224 CHINA TREATIES AND AGREEMENTS 
 
 The liberal policy pursued by His Imperial German Majesty in declaring 
 Kiao-chao a free port and in aiding the Chinese Government in the establish- 
 ment there of a custom-house are so clearly in line with the proposition which 
 this Government is anxious to see recognized that it entertains the strongest 
 hope that Germany will give its acceptance and hearty support. 
 
 The recent Ukase of His Majesty the Emperor of Russia declaring the 
 port of Ta-lien-wan open during the whole of the lease under which it is 
 held from China to the merchant ships of all nations, coupled with the categorical 
 assurances made to this Government by His Imperial Majesty's representative 
 at this capital at the time, and since repeated to me by the present Russian 
 Ambassador, seem to insure the support of the Emperor to the proposed measure. 
 Our Ambassador at the Court of St. Petersburg has in consequence been in- 
 structed to submit it to the Russian Government and to request their early con- 
 sideration of it. A copy of my instruction on the subject to Mr. Tower is 
 herewith enclosed for your confidential information. 
 
 The commercial interests of Great Britain and Japan will be so clearly 
 served by the desired declaration of intentions, and the views of the Governments 
 of these countries as to the desirability of the adoption of measures insuring the 
 benefits of equality of treatment of all foreign trade throughout China are so 
 similar to those entertained by the United States, that their acceptance of the 
 propositions herein outlined and their cooperation in advocating their adoption 
 by the other Powers can be confidently expected. I enclose herewith copy of 
 the instruction which I have sent to Mr. Choate on the subject. 
 
 In view of the present favorable conditions, you are instructed to submit 
 the above considerations to His Imperial German Majesty's Minister for Foreign 
 Affairs, and to request his early consideration of the subject. 
 
 Copy of this instruction is sent to our Ambassadors at London and at 
 St. Petersburg for their information, 
 
 I have, etc., John Hay. 
 
 (Enclosures: To London, September 6, 1899, No. 205. To St. Petersburg, September 
 6, 1899, No. 82.) 
 
 Count von Bulow to Mr. White. 
 
 [Translation.] 
 
 Foreign Office, 
 Berlin, February 19, 1900. 
 
 Mr. Ambassador : Your Excellency informed me, in a memorandum pres- 
 ented on the 24th of last month, that the Government of the United States 
 of America had received satisfactory written replies from all the Powers to 
 which an inquiry had been addressed similar to that contained in Your Ex- 
 cellency's note of September 26 last, in regard to the policy of the open door 
 in China. While referring to this, Your Excellency thereupon expressed the 
 wish that the Imperial Government would now also give its answer in writing. 
 
 Gladly complying with this wish, I have the honor to inform Your Excel- 
 lency, repeating the statements already made verbally, as follows: As recog-
 
 NUMBER 1900/2 : MARCH 20, 1900 225 
 
 nized by the Government of the United States of America, according to Your 
 Excellency's note referred to above, the Imperial Government has, from the 
 beginning, not only asserted, but also practically carried out to the fullest extent, 
 in its Chinese possessions absolute equality of treatment of all nations with re- 
 gard to trade, navigation, and commerce. The Imperial Government enter- 
 tains no thought of departing in the future from this principle, which at once 
 excludes any prejudicial or disadvantageous commercial treatment of the citizens 
 of the United States of America, so long as it is not forced to do so, on ac- 
 count of considerations of reciprocity, by a divergence from it by other govern- 
 ments. If, therefore, the other Powers interested in the industrial development 
 of the Chinese Empire are willing to recognize the same principles, this can 
 only be desired by the Imperial Government, which in this case upon being 
 requested will gladly be ready to participate with the United States of America 
 and the other Powers in an agreement made upon these lines, by which the 
 same rights are reciprocally secured. 
 
 I avail myself, etc. Bulow. 
 
 (III.)— GREx\T BRITAIN. 
 
 Mr. Choate to Lord Salisbury. 
 
 Embassy of the United States, 
 
 London, September 22, 1899. 
 
 My Lord : I am instructed by the Secretary of State to present to Your 
 Lordship a matter which the President regards as of great and equal importance 
 to Great Britain and the United States — in the maintenance of trade and com- 
 merce in the East, in which the interest of the two nations differs, not in 
 character, but in degree only — and to ask for action on the part of Her Majesty's 
 Government which the President conceives to be in exact accord with its uni- 
 formly declared policy and traditions, and which will greatly promote the wel- 
 fare of commerce. 
 
 He understands it to be the settled policy and purpose of Great Britain 
 not to use any privileges which may be granted to it in China as a means of ex- 
 cluding any commercial rivals, and that freedom of trade for it in that Empire 
 means freedom of trade for all the world alike. Her Majesty's Government, 
 while conceding by formal agreements with Germany and Russia the possession 
 of " spheres of influence or interest " in China, in which they are to enjoy 
 especial rights and privileges, particularly in respect to railroads and mining 
 enterprises, has at the same time sought to maintain what is commonly called 
 the " open-door " policy, to secure to the commerce and navigation of all na- 
 tions equality of treatment within such " spheres." The maintenance of this 
 policy is alike urgently demanded by the commercial communities of our two 
 nations, as it is justly held by them to be the only one which will improve
 
 226 CHINA TREATIES AND AGREEMENTS 
 
 existing conditions, enable them to maintain their positions in the markets of 
 China, and extend their future operations. 
 
 While the Government of the United States will in no way commit itself 
 to any recognition of the exclusive rights of any power within or control over 
 any portion of the Chinese Empire, under such agreements as have been recently 
 made, it can not conceal its apprehensions that there is danger of complications 
 arising between the treaty powers which may imperil the rights insured to the 
 United States by its treaties with China. 
 
 It is the sincere desire of my Government that the interests of its citizens 
 may not be prejudiced through exclusive treatment by any of the controlling 
 powers within their respective " spheres of interests " in China, and it hopes to 
 retain there an open market for all the world's commerce, remove dangerous 
 sources of international irritation, and thereby hasten united action of the 
 powers at Pekin to promote administrative reforms so greatly needed for 
 strengthening the Imperial Government and maintaining the integrity of China, 
 in which it believes the whole western world is alike concerned. It believes that 
 such a result may be greatly aided and advanced by declarations by the various 
 Powers claiming " spheres of interest " in China as to their intentions in regard 
 to the treatment of foreign trade and commerce therein, and that the present is a 
 very favorable moment for informing Her Majesty's Government of the desire 
 of the United States to have it make on its own part and to lend its powerful 
 support in the effort to obtain from each of the various Powers claiming 
 " spheres of interest " in China a declaration substantially to the following 
 effect : 
 
 (1) That it will in no wise interfere with any treaty port or any vested 
 interest within any so-called " sphere of interest " or leased territory it may 
 have in China. 
 
 (2) That the Chinese treaty tariff of the time being shall apply to all 
 merchandise landed or shipped to all such ports as are within such " spheres of 
 interest" (unless they be "free ports"), no matter to what nationality it may 
 belong, and that duties so leviable shall be collected by the Chinese Govern- 
 ment. 
 
 (3) That it will levy no higher harbor dues on vessels of another nationality 
 frequenting any port in such " sphere " than shall be levied on vessels of its own 
 nationality, and no higher railroad charges over lines built, controlled, or operated 
 within its " sphere " on merchandise belonging to citizens or subjects of other 
 nationalities transported through such " sphere " than shall be levied on similar 
 merchandise belonging to its own nationals transported over equal distances. 
 
 The President has strong reason to believe that the Governments of both 
 Russia and Germany will cooperate in such an understanding as is here pro- 
 posed. The recent Ukase of His Majesty the Emperor of Russia declaring the 
 port of Ta-lien-wan open to the merchant ships of all nations during the whole 
 term of the lease under which it is to be held by Russia removes all uncer- 
 tainty as to the liberal and conciliatory policy of that Power, and justifies the 
 expectation that His Majesty would accede to the similar request of the United 
 States now being presented to him and make the desired declaration.
 
 NUMBER 1900/2: MARCH 20, 1900 227 
 
 The recent action of Germany in declaring the port of Kiao-chao a " free 
 port " and the aid which its Government has given China in establishing there 
 a Chinese custom-house, coupled with oral assurances given the United States 
 by Germany that the interests of the United States and its citizens within its 
 " sphere " would in no wise be affected by its occupation of this portion of the 
 province of Shantung, encourage the belief that little opposition is to be antici- 
 pated to the President's request for a similar declaration from that Power. 
 
 It is needless also to add that Japan, the Power next most largely interested 
 in the trade of China, must be in entire sympathy with the views here ex- 
 pressed, and that its interests will be largely served by the proposed arrange- 
 ment ; and the declarations of its statesmen within the last year are so entirely 
 in line with it that the cooperation of that Power is confidently relied upon. 
 
 It is therefore with the greatest pleasure that I present this matter to Your 
 Lordship's attention and urge its prompt consideration by Her Majesty's Govern- 
 ment, believing that the action is in entire harmony with its consistent theory 
 and purpose, and that it will greatly redound to the benefit and advantage of all 
 commercial nations alike. The prompt and sympathetic cooperation of Her 
 Majesty's Government with the United States in this important matter will be 
 very potent in promoting its adoption by all the Powers concerned. 
 
 I have, etc., 
 
 Joseph H. Choate. 
 
 Lord Salisbury to Mr. Choate, 
 
 . Foreign Office, 
 
 London, September 29, 1899. 
 
 Your Excellency: I have read with great interest the communication 
 which you handed to me on the 23d instant, in which you inform me of the 
 desire of the United States Government to obtain from the various Powers 
 claiming spheres of interest in China declarations as to their intentions in regard 
 to the treatment of foreign trade and commerce therein. 
 
 I have the honor to inform Your Excellency that I will lose no time in 
 consulting my colleagues in regard to a declaration by Her Majesty's Govern- 
 ment and on the proposal that they should cooperate with the Government of the 
 United States in obtaining similar declarations by the other Powers concerned. 
 
 In the meantime, I may assure Your Excellency that the policy consistently 
 advocated by this country is one of securing equal opportunity for the subjects 
 and citizens of all nations in regard to commercial enterprise in China, and from 
 this policy Her Majesty's Government have no intention or desire to depart. 
 
 I have, etc., 
 
 Salisbury.
 
 228 CHINA TREATIES AND AGREEMENTS 
 
 Lord Salisbury to Mr. Choate. 
 
 Foreign Office, 
 London, November 30, 1899. 
 
 Your Excellency: With reference to my note of September 29 last, I 
 have the honor to state that I have carefully considered, in communication with 
 my colleagues, the proposal contained in Your Excellency's note of September 
 22 that a declaration should be made by foreign Powers claiming " spheres of 
 interest " in China as to their intentions in regard to the treatment of foreign 
 trade and interest therein. 
 
 I have much pleasure in informing Your Excellency that Her Majesty's 
 Government will be prepared to make a declaration in the sense desired by your 
 Government in regard to the leased territory of Wei-hai Wei and all territory in 
 China which may hereafter be acquired by Great Britain by lease or otherwise, 
 and all spheres of interest now held or that may hereafter be held by her in 
 China, provided that a similar declaration is made by other Powers concerned. 
 
 I have, etc., 
 
 Salisbury. 
 
 Mr. Choate to Lord Salisbury. 
 
 Embassy of the United States, 
 
 London, December 6, 1899. 
 
 My Lord: I have the honor to acknowledge the receipt of Your Lordship's 
 note of November 30, in which you inform me that, after having carefully con- 
 sidered, in connection with your colleagues, the proposals contained in my note 
 of September 22 last, Her Majesty's Government is prepared to make a de- 
 claration in the sense desired by my Government in regard to the leased territory 
 of Wei-hai Wei and^all territory in China which may hereafter be acquired by 
 Great Britain by lease or otherwise, and all " spheres of interest " now held, or 
 which may hereafter be held, by her in China, provided that a similar declara- 
 tion is made by other Powers. 
 
 In acknowledging Your Lordship's note, I have also, under instructions 
 from the Secretary of State, to express to Your Lordship the gratification he 
 feels at the cordial acceptance by Her Britannic Majesty's Government of the 
 proposals of the United States. 
 
 I have, etc., Joseph H. Choate.
 
 NUMBER 1900/2 : MARCH 20, 1900 229 
 
 (IV.)— ITALY. 
 
 Mr. Hay to Mr. Draper. 
 
 No. 434.] Department of State, 
 
 Washington, November 17, 1899. 
 
 Sir: This Government, animated with a sincere desire to insure to the 
 commerce and industry of the United States and of all other nations perfect 
 equality of treatment within the limits of the Chinese Empire for their trade 
 and navigation, especially within the so-called " spheres of influence or interest " 
 claimed by certain European Powers in China, has deemed the present an op- 
 portune moment to make representations in this direction to Germany, Great 
 Britain, Japan, and Russia. 
 
 To attain the object it has in view and to remove possible causes of inter- 
 national irritation and reestablish confidence so essential to commerce, it has 
 seemed to this Government highly desirable that the various Powers claiming 
 " spheres of interest or influence " in China should give formal assurances that — 
 
 First. They will in no way interfere with any treaty port or any vested 
 interest within any so-called " sphere of interest " or leased territory they may 
 have in China. 
 
 Second. The Chinese treaty tariff of the time being shall apply to all mer- 
 chandise landed or shipped to all such ports as are within said " sphere of inter- 
 est " (unless they be " free ports "), no matter to what nationality it may belong, 
 and that duties so leviable shall be collected by the Chinese Government. 
 
 Third. They will levy no higher harbor dues on vessels of another na- 
 tionality frequenting any port in such " sphere " than shall be levied on vessels 
 of their own nationality, and no higher railroad charges over lines built, con- 
 trolled, or operated within its " sphere " on merchandise belonging to citizens or 
 subjects of other nationalities transported through such " sphere " than shall be 
 levied on similar merchandise belonging to their own nationals transported over 
 equal distances. 
 
 The policy pursued by His Imperial German Majesty in declaring Tsing-tao 
 (Kiao-chao) a free port and in aiding the Chinese Government in establishing 
 there a custom-house and the Ukase of His Imperial Russian Majesty of August 
 11 last erecting a free port at Dalny (Ta-lien-wan) are thought to be proof that 
 these Powers are not disposed to view unfavorably the proposition to recognize 
 that they contemplate nothing which will interfere in any way with the enjoyment 
 by the commerce of all nations of the rights and privileges guaranteed to them 
 by existing treaties with China. 
 
 Repeated assurances from the British Government of its fixed policy to 
 maintain throughout China freedom of trade for the whole world insure, it is 
 believed, the ready assent of that Power to our proposals. The commercial inter- 
 ests of Japan will also be greatly served by the above-mentioned declaration, 
 which harmonizes with the assurances conveyed to this Government at various 
 times by His Imperial Japanese Majesty's diplomatic representative at this 
 capital.
 
 230 CHINA TREATIES AND AGREEMENTS 
 
 In view of the important and growing commercial interests of Italy in 
 eastern Asia, it would seem desirable that His Majesty's Government should also 
 be informed of the steps taken by the United States to insure freedom of trade 
 in China, in which it would find equal advantages to those which the other 
 nations of Europe expect. 
 
 You are therefore instructed to submit to His Majesty's Minister for Foreign 
 Affairs the above considerations and to invite his early attention to them, ex- 
 pressing, in the name of your Government, the hope that they will prove accept- 
 able, and that His Majesty's Government will lend its aid and valuable assistance 
 in securing their acceptance by the other interested Powers. 
 
 I enclose, for your personal and confidential information, copies of the in- 
 structions sent to our Ambassadors at Berlin, London, St. Petersburg, and to our 
 Minister at Tokyo. 
 
 I am, etc., John Hay. 
 
 (Enclosures: To Great Britain, to Russia, to Germany, September 6, 1899. To Japan, 
 November 13, 1899.) 
 
 The Marquis Visconti Venosta to Mr. Draper. 
 
 [Translation.] 
 
 Rome, January 7, 1900. 
 
 Mr. Ambassador : Supplementary to what you had already done me the 
 honor of communicating to me in your note of December 9, 1899, Your Excel- 
 lency informed me yesterday of the telegraphic note received from your Govern- 
 ment that all the Powers consulted by the Cabinet of Washington concerning 
 the suitability of adopting a line of policy which would insure to the trade of the 
 whole world equality of treatment in China have given a favorable reply. 
 
 Referring to your communications and to the statements in my note of 
 December 23 last, I take pleasure in saying that the Government of the King 
 adheres willingly to the proposals set forth in said note of December 9. 
 
 I beg Your Excellency to kindly convey the notice of our adhesion to the 
 Cabinet of Washington, and I avail niyself of the occasion to renew to you, etc. 
 
 Visconti Venosta. 
 
 (V.)— JAPAN. 
 
 Mr. Hay to Mr. Buck. 
 
 No. 263.] Department of State, 
 
 Washington, November 13, 1899. 
 Sir: This Government, animated with a sincere desire to insure to the 
 commerce and industry of the United States and of all other nations perfect 
 equality of treatment within the limits of the Chinese Empire for their trade
 
 NUMBER 1900/2: MARCH 20, 1900 231 
 
 and navigation, especially within the so-called " spheres of influence or interest " 
 claimed by certain European Powers in China, has deemed the present an oppor- 
 tune moment to make representations in this direction to Germany, Great Britain, 
 and Russia. 
 
 To obtain the object it has m view and to remove possible causes of interna- 
 tional irritation and reestablish confidence so essential to commerce, it has seemed 
 to this Government highly desirable that the various Powers claiming " spheres of 
 interest or influence " in China should give formal assurances that — 
 
 First. They will in no way interfere with any treaty port or any vested 
 interest within any so-called " sphere of interest " or leased territory they may 
 have in China. 
 
 Second. The Chinese treaty tariff of the time being shall apply to all mer- 
 chandise landed or shipped to all such ports as are within said " sphere of 
 interest" (unless they be " free ports"), no matter to what nationality it may 
 belong, and that duties so leviable shall be collected by the Chinese Government, 
 
 Third. They will levy no higher harbor dues on vessels of another na- 
 tionality frequenting any port in such " sphere " than shall be levied on vessels 
 of their own nationality, and no higher railroad charges over lines built, con- 
 trolled, or operated within such " sphere " on merchandise belonging to citi- 
 zens or subjects of other nationalities transported through such " sphere " than 
 shall be levied on similar merchandise belonging to their own nationals trans- 
 ported over equal distances. 
 
 The policy pursued by His Imperial German Majesty in declaring Tsing- 
 tao (Kiao-chao) a free port and in aiding the Chinese Government in establishing 
 there a custom-house, and the Ukase of His Imperial Russian Majesty of August 
 11 last erecting a free port at Dalny (Ta-lien-wan) are thought to be proof that 
 these Powers are not disposed to view unfavorably the proposition to recognize 
 that they contemplate nothing which will interfere in any way with the enjoyment 
 by the commerce of all nations of the rights and privileges guaranteed to them 
 by existing treaties with China. 
 
 Repeated assurances from the Brititsh Government of its fixed policy to 
 maintain throughout China freedom of trade for the whole world insure, it is 
 believed, the ready assent of that Power to our proposals. It is no less con- 
 fidently believed that the commercial interests of Japan would be greatly served 
 by the above-mentioned declaration, which harmonizes with the assurances con- 
 veyed to this Government at various times by His Imperial Japanese Majesty's 
 diplomatic representative at this capital. 
 
 You are therefore instructed to submit to His Imperial Japanese Majesty's 
 Government the above considerations, and to invite their early attention to them, 
 and express the earnest hope of your Government that they will accept them and 
 aid in securing their acceptance by the other interested Powers. 
 I am, etc., 
 
 John Hay.
 
 232 CHINA TREATIES AND AGREEMENTS 
 
 Viscount Aoki to Mr. Buck. 
 
 [Translation.] 
 
 Department of Foreign Affairs, 
 Tokyo, the 26th day, the 12th month of the 32d year of Meiji. 
 
 (December 26, 1899.) 
 Mr. Minister : I have the honor to acknowledge the receipt of the note No. 
 176 of the 20th instant, in which, pursuing the instructions of the United States 
 Government, Your Excellency was so good as to communicate to the Imperial 
 Government the representations of the United States as presented in notes to 
 Russia, Germany, and Great Britain on the subject of commercial interests of 
 the United States in China. 
 
 I have the happy duty of assuring Your Excellency that the Imperial Gov- 
 ernment will have no hesitation to give their assent to so just and fair a pro- 
 posal of the United States, provided that all the other Powers concerned shall 
 accept the same. 
 
 I avail myself, etc., 
 
 Viscount Aoki Siuzo, 
 
 Minister for Foreign Affairs. 
 
 (VI.)— RUSSIA. 
 
 Mr. Hay to Mr. Tower. 
 
 No. 82.] Department of State, 
 
 Washington, September 6, 1899. 
 
 Sir: In 1898, when his Imperial Majesty had, through his diplomatic repre- 
 sentative at this capital, notified this Government that Russia had leased from 
 His Imperial Chinese Majesty the ports of Port Arthur, Ta-lien-wan, and the 
 adjacent territory in the Liao-tung Peninsula in northeastern China for a period 
 of twenty-five years, your predecessor received categorical assurances from the 
 Imperial Minister for Foreign Affairs that American interests in that part of the 
 Chinese Empire would in no way be afifected thereby, neither was it the desire 
 of Russia to interfere with the trade of other nations, and that our citizens would 
 continue to enjoy within said leased territory all the rights and privileges guar- 
 anteed them under existing treaties with China. Assurances of a similar pur- 
 port were conveyed to me by the Emperor's Ambassador at this capital ; while 
 fresh proof of this is ailforded by the Imperial Ukase of July 30/August 11 last, 
 creating the free port of Dalny, near Ta-lien-wan, and establishing free trade for 
 the adjacent territory. 
 
 However gratifying and reassuring such assurances may be in regard to the 
 territory actually occupied and administered, it can not but be admitted that a 
 further, clearer, and more formal definition of the conditions which are hence-
 
 NUMBER 1900/2: MARCH 20, 1900 233 
 
 forth to hold within the so-called Russian " sphere of interest " in China as 
 regards the commercial rights therein of our citizens is much desired by the 
 business world of the United States, inasmuch as such a declaration would 
 relieve it from the apprehensions which have exercised a disturbing influence dur- 
 ing the last four years on its operations in China. 
 
 The present moment seems particularly opportune for ascertaining whether 
 His Imperial Russian Majesty would not be disposed to give permanent form to 
 the assurances heretofore given to this Government on this subject. 
 
 The Ukase of the Emperor of August 11 of this year, declaring the port 
 of Ta-lien-wan open to the merchant ships of all nations during the remainder of 
 the lease under which it is held by Russia, removes the slightest uncertainty 
 as to the liberal and conciliatory commercial policy His Majesty proposes carry- 
 ing out in northeastern China, and would seem to insure us the sympathetic 
 and, it is hoped, favorable consideration of the propositions hereinafter specified. 
 
 The principles which this Government is particularly desirous of seeing 
 formally declared by His Imperial Majesty and by all the great Powers interested 
 in China, and which will be eminently beneficial to the commercial interests of 
 the whole world, are : 
 
 First. The recognition that no Power will in any way interfere with any 
 treaty port or any vested interest within any leased territory or within any so- 
 called " sphere of interest " it may have in China. 
 
 Second. That the Chinese treaty tariff of the time being shall apply to all 
 merchandise landed or shipped to all such ports as are within said " sphere of 
 interest" (unless they be "free ports"), no matter to what nationality it may 
 belong, and that duties so leviable shall be collected by the Chinese Government. 
 
 Third. That it will levy no higher harbor dues on vessels of another na- 
 tionality frequenting any port in such " sphere " than shall be levied on vessels 
 of its own nationality, and no higher railroad charges over lines built, controlled, 
 or operated within its " sphere " on merchandise belonging to citizens or sub- 
 jects of other nationalities transported through such " sphere " than shall be 
 levied on similar merchandise belonging to its own nationals transported over 
 equal distances. 
 
 The declaration of such principles by His Imperial Majesty would not 
 only be of great benefit to foreign commerce in China, but would powerfully 
 tend to remove dangerous sources of irritation and possible conflict between the 
 various Powers ; it would reestablish confidence and security ; and would give 
 great additional weight to the concerted representations which the treaty Powers 
 may hereafter make to His Imperial Chinese Majesty in the interest of reform 
 in Chinese administration so essential to the consolidation and integrity of that 
 Empire, and which, it is believed, is a fundamental principle of the policy of His 
 Majesty in Asia. 
 
 Germany has declared the port of Kiao-chao. which she holds in Shantung 
 under a lease from China, a free port and has aided in the establishment there 
 of a branch of the Imperial Chinese Maritime Customs. The Imperial German 
 Minister for Foreign Affairs has also given assurances that American trade 
 would not in any way be discriminated against or interfered with, as there is
 
 234 CHINA TREATIES AND AGREEMENTS 
 
 no intention to close the leased territory to foreign commerce within the area 
 which Germany claims. These facts lead this Government to believe that the 
 Imperial German Government will lend its cooperation and give its acceptance 
 to the proposition above outlined, and which our Ambassador at Berlin is now 
 instructed to submit to it. 
 
 That such a declaration will be favorably considered by Great Britain and 
 Japan, the two other Powers most interested in the subject, there can be no 
 doubt ; the formal and oft-repeated declarations of the British and Japanese 
 Governments in favor of the maintenance throughout China of freedom of 
 trade for the whole world insure us, it is believed, the ready assent of these 
 Powers to the declaration desired. 
 
 The acceptance by His Imperial Majesty of these principles must therefore 
 inevitably lead to their recognition by all the other Powers interested, and you 
 are instructed to submit them to the Emperor's Minister for Foreign Affairs and 
 urge their immediate consideration. 
 
 A copy of this instruction is sent to our Ambassadors at London and Berlin 
 for their confidential information, and copies of the instructions sent to them 
 on this subject are enclosed herewith. 
 
 I have, etc., John Hay. 
 
 (Enclosures: To London, September 6, 1899, No. 205. To Berlin, September 6, 1899, 
 No. 927.) 
 
 Count Mouravieff to Mr. Tower. 
 [Translation.] 
 
 Ministry of Foreign Affairs, 
 
 December 18-30, 1899. 
 
 Mr. Ambassador: I had the honor to receive Your Excellency's note dated 
 the 8th-20th of September last, relating to the principles which the Government 
 of the United States would like to see adopted in commercial matters by the 
 Powers which have interests in China. 
 
 In so far as the territory leased by China to Russia is concerned, the Imperial 
 Government has already demonstrated its firm intention to follow the policy of 
 "the open door" by creating Dalny (Ta-lien-wan) a free port; and if at some 
 future time that port, although remaining free itself, should be separated by a 
 customs limit from other portions of the territory in question, the customs duties 
 would be levied, in the zone subject to the tariff, upon all foreign merchandise 
 without distinction as to nationality. 
 
 As to the ports now opened or hereafter to be opened to foreign commerce 
 by the Chinese Government, and which lie beyond the territory leased to Russia, 
 the settlement of the question of customs duties belongs to China herself, and 
 the Imperial Government has no intention whatever of claiming any privileges for 
 its own subjects to the exclusion of other foreigners. It is to be understood, 
 however, that this assurance of the Imperial Government is given upon condition
 
 NUMBER 1900/2: MARCH 20, 1900 235 
 
 that a similar declaration shall be made by other Powers having interests in 
 China. 
 
 With the conviction that this reply is such as to satisfy the inquiry made 
 in the aforementioned note, the Imperial Government is happy to have com- 
 plied with the wishes of the American Government, especially as it attaches the 
 highest value to anything that may strengthen and consolidate the traditional 
 relations of friendship existing between the two countries. 
 I beg you to accept, etc., 
 
 Count Mouravieff. 
 
 INSTRUCTIONS SENT MUTATIS MUTANDIS TO THE UNITED 
 STATES AMBASSADORS AT LONDON, PARIS, BERLIN, ST. 
 PETERSBURG, AND ROME, AND TO THE UNITED STATES 
 MINISTER AT TOKYO. 
 
 Department of State, 
 
 Washington, March 20, 1900. 
 
 Sir : The Government having accepted the declaration suggested 
 
 by the United States concerning foreign trade in China, the terms of which I 
 
 transmitted to you in my instruction No. — of , and like action having 
 
 been taken by all the various Powers having leased territory or so-called " spheres 
 of interest " in the Chinese Empire, as shown by the notes which I herewith 
 transmit to you,:j: you will please inform the Government to which you are ac- 
 credited that the condition originally attached to its acceptance — that all other 
 Powers concerned should likewise accept the proposals of the United States — 
 having been complied with, this Government will therefore consider the assent 
 given to it by as final and definitive. 
 
 You will also transmit to the Minister for Foreign Afifairs copies of the 
 present enclosures, and by the same occasion convey to him the expression of the 
 sincere gratification which the President feels at the successful termination of 
 these negotiations, in which he sees proof of the friendly spirit which animates 
 the various Powers interested in the untrammeled development of commerce and 
 industry in the Chinese Empire, and a source of vast benefit to the whole com- 
 mercial world. 
 
 I am, etc., John Hay. 
 
 t All printed ante.
 
 236 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1900/3. 
 
 GERMANY (Schantung Eisenbahn Gesellschaft) AND CHINA. 
 Regulations for the Kiaochozu-Tsmanfu Railway* — March 21, 1900. 
 
 His Excellency the Governor of the Province of Shantung Yuan Shih Kai, 
 and His Excellency the Lieutenant General Yin Chang, upon petition of the 
 Governor of Shantung especially delegated by Imperial decree to these negotia- 
 tions, on the one side, and the Managing Board of the Shantung Railway Com- 
 pany at Tsingtau, represented by Mr. H. Hildebrand, a Royal Inspector of Prus- 
 sian Railways, on the other side, have in order to prevent excitements and 
 disturbances of any kind in Shantung during the period of building the railway 
 and to maintain friendly relations between the population of this province and 
 the Company agreed upon the following Railway Regulations with regard to the 
 line of railway between the boundaries of the German Leased Territory and 
 Tsinanfu, subject to the approval of the Board of Directors of the Shantung 
 Railway Company in Berlin and reduced to writing in Chinese and German 
 texts of like tenour. 
 
 Art. L — In accordance with Art. 4, section 2, of the aforesaid Kiauchou 
 Convention a German-Chinese Railway Company shall be formed, issuing shares 
 to German and Chinese subjects. This Company shall for the present be ex- 
 clusively under German management. It shall half-yearly notify the Chiao Se 
 Chue at Tsinanfu of the number of shares purchased by Chinese. As soon as 
 the amount of such shares has reached Taels 100,000, the Governor of the 
 Province of Shantung shall delegate a Chinese official for co-operation at the 
 Company's siege. 
 
 Art. 2. — Should in future branches of the Administration of the Company 
 be established in Shantung, one Chinese official shall be delegated to each one 
 of them. 
 
 Art. 3. — Officials or respectable citizens shall be consulted upon the location 
 of the railway, in order to take as far as possible into consideration the interests 
 of the population. To avoid difficulties in negotiations, these shall be conducted 
 on the Chinese side by Chinese officials delegated by the Governor of Shantung. 
 The technical determinations of the location of line shall be left to the Com- 
 pany's engineers. A sketch plan of the line's location, done in a scale of 1 : 25000 
 shall be submitted to the Governor of Shantung for information and only there- 
 after land may be purchased. The construction of the railway cannot be begun 
 before the land has actually been purchased. 
 
 The purchase of land shall be done peacefully and quickly as hitherto, so 
 that the construction of the railway be not delayed by purchasing land or by 
 difficulties arising from disputes with individual owners. To avoid all such 
 difficulties the above mentioned Chinese official shall act as mediator when land 
 
 * Translation from the German text. See Note to this document, post, p. 240.
 
 NLMBER 1900/3: MARCH 21, 1900 237 
 
 is purchased and shall settle all disputes eventually arising. The land shall 
 be purchased in an honest way according to the locally customary ruling price. 
 
 The Company shall not be allowed to buy more land than necessary for the 
 railway enterprise, and future extensions thereof. 
 
 Meanwhile the following minima may be purchased : 
 
 for stopping points a plot of land 630 m. long & 70 m. wide 
 
 " country stations " " " " 730 m. " & 100 m. " 
 
 " small town stations " " " " 850 m. " & 130 m. " 
 
 " stations of larger towns the plots of land have to be larger, corre- 
 sponding to the actual importance of the 
 place in question. 
 
 The land necessary for the supply of earth to construct embankments is not 
 included in the foregoing areas. 1 m. is equal to 2 feet 9.6 inches, 1 foot is 
 equal to 0.338 m. 
 
 Art. 4. — Wherever water-courses are met, sufficient flow has to be provided 
 for by building bridges and culverts so that agriculture may suffer no damage. 
 
 Art. 5. — The railroad is to be located in such a way as not to damage or 
 cut through city walls, fortifications, public edifices and important inhabited 
 places. 
 
 Art. 6. — Houses, farmsteads and villages, temples, graves and above all high 
 class graveyards belonging to the gentry which are fenced in and planted with 
 trees shall be avoided by the railway as far as possible. So far as this is impos- 
 sible the local authorities shall give notice to the owners two months beforehand 
 and settle with them a compensation of an amount enabling to erect graveyards, 
 etc., of the same condition at another place without sustaining any loss of 
 money. 
 
 Art. 7. — In surveying the land to be purchased the "" kiing " shall be used as 
 unit. One kimg is equal to 5 official feet, one foot is equal to 0.338 m. One 
 Mu is counted to be 360 kiing or equal to 9000 square feet. 
 
 As to the land tax to be paid by the Shantung Railway Company the same 
 regulations shall be applied as in force for the most favoured Railway Company in 
 any other place of China, 
 
 Art. 8. — Injuries done to crops during preparatory or construction work are 
 to be made good by the Company according to prices to be settled with the local 
 authorities. 
 
 Art. 9. — The salaries of the assistants placed by the local authorities at the 
 disposition of the Railway at its wish shall be paid by the latter. These salaries 
 shall not be included in the price of land purchased. 
 
 The money for the land is to be paid into the hands of the District Magistrate, 
 who is responsible for the proper payment to the different owners entitled to 
 receive the money. 
 
 The District Magistrate also has to hand over the title deeds to the Railway 
 Company. 
 
 Art. 10. — The Railway Administration intending to rent houses for offices 
 and residences near the work-places shall apply to the District Magistrate who
 
 238 CHINA TREATIES AND AGREEMENTS 
 
 will make the necessary arrangements with the owners and will on its behalf 
 conclude the contracts. 
 
 Art. 11. — The purchase of material necessary for the construction of the 
 railway shall be transacted in a fair manner and the usual market price shall 
 be paid for same. If necessary the intervention of the District Magistrate shall 
 be applied for. 
 
 Art. 12. — The exchange of different kinds of money shall always be done 
 at the rate ruling on the day. 
 
 Art. 13. — The Railway Company is not permitted to construct without 
 special permission of the Governor of Shantung other railroads than those men- 
 tioned in the Kiauchou Convention, including the Dranch line to Poshanhsien. 
 
 Branch lines connecting coal and other mines and places where building or 
 ballasting materials are to be taken, connecting with the main line, may be built 
 without special authorization. It is, however, understood that previous notice 
 of the construction of such lines has to be given to the Governor of Shan- 
 tung. 
 
 Art. 14. — Foreigners, travelling or doing business in the interior of the 
 Province of Shantung, in order to enjoy better protection, must be provided 
 with passports duly sealed by the proper Chinese and German authorities. Chi- 
 nese local authorities cannot assume responsibility if such a passport is not 
 produced. 
 
 Art. 15. — German and Chinese employees of the Railway Company are to 
 be provided with certificates attested by the seals of the Railway Administration 
 and of the Local Authorities, in order, when necessary, to prove their official 
 capacity. 
 
 The engineers, when surveying, shall be accompanied by an official, delegated 
 by the District Magistrate. This official shall, if necessary by police force, render 
 assistance in protecting the property of the Railway Company and the survey 
 poles. 
 
 Persons fraudulently pretending to be employees of the Railway Company 
 shall be arrested and punished by the Local Authorities. 
 
 Art. 16. — Troops, eventually necessary for the protection of the railway 
 will be stationed by the Governor of the Province of Shantung. Therefore 
 outside the \0O-li zone no foreign troops shall be employed for this purpose. 
 
 The Governor of the Province of Shantung binds himself to take effective 
 measures during the period of surveying as well as when the railway is under 
 construction or opened for traffic to prevent any damage being done to it by 
 the mob or by rebels. 
 
 Art. 17. — Development of trade and communications being the only purpose 
 of the railway, no transport of foreign troops and their war materials shall be 
 allowed on it. 
 
 The Railway Administration however is not to be held responsible for such 
 transport when brought into a position of constraint by war or similar circum- 
 stances. On the other hand the Governor of the Province of Shantung will 
 not be responsible for the protection of sections of the railway being in the hands 
 of the enemy.
 
 NUMBER 1900/3 : MARCH 21, 1900 239 
 
 The conditions of this article are not be applied to the section of the railway 
 within the 100-// zone. 
 
 Art. 18. — Freightage for foodstuffs and clothing to be distributed amongst 
 the distressed during famines and floods, shall be reduced according to the 
 rules adopted by the railways of Germany and when troops are dispatched to 
 suppress rebellions the same is to be applied to the fares for soldiers and to the 
 freightages for their war materials. 
 
 Art. 19. — At railway stations, where custom-houses are established the 
 Railway Administration shall make such arrangements as to assist the Imperial 
 Chinese Customs in collecting the legal dues. 
 
 The expenses for the necessary buildings, to be erected upon application of the 
 Customs Administration are to be refunded by the latter to the Railway Admin- 
 istration according to agreements always to be made beforehand. 
 
 Art. 20. — The natives of towns and villages near the railway shall be 
 as far as possible engaged as workmen and as contractors for the supply of 
 materials. 
 
 Art. 21. — Chinese subjects employed outside the leased territory by the 
 Railway Company in case of contravention of Chinese law are subject to the 
 jurisdiction of the competent District Magistrate. 
 
 The competent District Magistrate having officially notified the necessity 
 of legal steps against such employees, the Railway Company shall not do anything 
 by which he may evade justice. 
 
 Complaints against foreigners are to be dealt with according to the proper 
 laws. In such cases, the Railway Company on its part shall make an investiga- 
 tion and take disciplinary proceedings against the offender. 
 
 Art 22. — The natives of districts, where the railway passes through shall 
 as far as possible be employed at the work and shall be paid for as customary 
 there. 
 
 If fights should occur between railway men and natives the local official will 
 have the right to arrest and punish the guilty. 
 
 The workmen of the railway are absolutely prohibited unwarrantably to 
 enter houses of natives. In case of contravention they will be severely punished. 
 
 Art. 23. — The construction of the railway being completed, foremen and 
 workmen necessary for maintenance and safekeeping of the line are as far as 
 practicable to be engaged from amongst the inhabitants of villages and towns 
 near the line in conformity with suggestions made by the elders of these places. 
 These elders will be responsible for the good behaviour of those engaged and 
 will furnish them with certificates issued by the District Magistrate. 
 
 Art. 24. — The railway being opened to public traffic, its administration 
 assumes the responsibility for any loss of life or goods caused by accidents and 
 is liable to pay compensation to wounded or killed persons according to the local 
 custom, and to cover any loss of goods according to detailed regulations to be 
 drawn up by and published by the Company. 
 
 Likewise the Railway will be held responsible for damage to persons and 
 property by construction trains through its neglect. 
 
 Art. 25. — The safety on the line being endangered by floods, slips of em-
 
 240 CHINA TREATIES AND AGREEMENTS 
 
 bankments or breakages of bridges, etc., public traffic shall not be reopened before 
 all these difficulties have been removed. 
 
 Art. 26. — Should the Railway Company apply for soldiers to protect the pre- 
 paratory work, the construction or the traffic of the railway, the Governor of 
 the Province of Shantung shall at once and effectually comply with such applica- 
 tion. The amount to be contributed by the Company for the troops dispatched 
 shall be the subject of a further understanding. 
 
 Art. 27. — In the German leased territory the rights of sovereignty are safe- 
 guarded by the Governor of Tsingtau. In the districts of the remaining part of 
 the Province of Shantung through which the railway is running, the rights 
 of sovereignty are safeguarded by the Governor of the Province of Shantung. 
 
 Art. 28. — It shall be the subject of further agreements when and under 
 what conditions the Chinese Government may in future take over the railway. 
 
 The foregoing regulations after being approved shall be notified to the 
 Authorities of the Shantung Province and to the officials of the railway. There- 
 upon they shall be duly observed. 
 
 Should it in future be deemed necessary to have alterations made of some 
 of the above regulations or to have drawn up supplementary rules, this can only 
 be done by mutual agreement between the then Governor of the Province of 
 Shantung and the Shantung Railway Company. 
 
 This agreement is executed in two exemplars each of which contains a 
 Chinese as well as a German version of like tenour. Each of the contracting 
 parties has received one exemplar. 
 
 TSINANFU, the 21st of March 1900. 
 
 The Governor of the Province of Shantung 
 [Seal and signature of Governor Yuan Shih Kai] 
 H. I. M.'s Special Delegate, Lieut. General, 
 [sig.] Yin Chang. 
 Die Betriebsdirection der Schantung-Eisenbahn-Gesellschaft, 
 
 [sig.] H. HiLDEBRAND. 
 
 Note. 
 
 In connection with these regulations, see the Convention for the lease of Kiaochow, 
 March 6, 1898 (No. 1898/4, ante) : and the Exchange of notes between Germany and China 
 in regard to the extension of the Shantung Railway, December 31, 1913 (No. 1913/16, post). 
 
 The Schantung Eisenbahn Gesellschaft was a joint German and Chinese enterprise 
 operating under a German charter or " concession " dated June 1, 1899, of which the fol- 
 lowing translation is given in Rockhill, p. 363 : — 
 
 Charter of Schantung Eisenbahn Gesellschaft. — June i, 1899. 
 
 "In response to a request made by the Deutsch-Asiatische Bank (German- Asiatic 
 Bank), representing the Syndicate, formed for the establishment of a German-Chinese 
 Company with the title of ' Schantung-Eisenbahn-Gessellschaft ' (Shantung Railway Com- 
 pany), the Imperial Government agrees to grant to said company a concession for the 
 construction and operation of a railway in the Chinese Province of Shantung, from Tsin-tao 
 via Weihsien to Tsinan Fu with a branch line, starting from a point on the main line, to 
 Poshan, according to the provisions of the German-Chinese Treaty of March 6, 1898, and 
 under the following conditions :
 
 NUMBER 1900/3: MARCH 21, 1900: NOTE 241 
 
 " § 1. — The construction and maintenance of the railway shall be proceeded with by a 
 German-Chinese Company, to be organized by the Syndicate upon the basis of the contract 
 hereto attached. 
 
 " This company will have its domicile at first in Berlin but will nevertheless remove 
 the same to Tsin-tao within six months from the date of the granting of the concession. 
 
 "§2. — The capital for the construction and operation of the railway is fixed at 54 Mil- 
 lion Marks. 
 
 " Care is to be taken that Germans as well as Chinese may participate in the public 
 subscription to the stock of the Company. More especially, shall subscriptions be opened in 
 the suitable commercial centers of East Asia, and the amounts there subscribed shall receive 
 proper consideration. 
 
 " § 3. — The management of the railway shall be domiciled at Tsin-tao. The election 
 of the President of the Board of Directors as well as the Chief Operating Official must 
 be approved by the Imperial Government. 
 
 " § 4. — The following regulations govern the construction of the railway: 
 
 " I. — In the building of the railway lines the special preparatory work shall determine 
 the best possible connection with the most important coal fields, more especially with those 
 of Weihsien and Tzechuan as well as the chief cities and towns between Tsin-tao and 
 Tsinan Fu, which, on account of their population or other significance, must be considered in 
 their relation to railway traffic. 
 
 " In the construction of the railway station at Tsinan Fu consideration is to be given 
 to the connection with the Hoang ho and the continuation of the railway on the one side 
 to the southern boundary of the Province of Shantung in the direction of Kua-chou 
 (Chinkiang), on the other side following the North Boundary of the same Province in the 
 direction of Tientsin and Cheng-ting. 
 
 " The Company must obtain from the Imperial Government permission to carry out 
 the raihvay line, in accordance herewith, in the territory of Kiau-chou, outside this territory 
 the permission of the Imperial Minister in Peking is to be obtained. 
 
 " The lines may be built for single track ; however sufficient land for the construction 
 of a double track must be provided. 
 
 " The gauge shall measure 1.435 meter. 
 
 " II. — German material shall be used, as far as possible, in the construction of the 
 railways. 
 
 "III. — The completion and opening of the main line from Tsin-tao to Tsinan Fu, 
 and of the branch line to Poshan must follow within a period of 5 years, dating from 
 the grant of the concession, and that of the railway section from Tsin-tao to Wei-hsien 
 within a period of 3 years. Should the Company be prevented from the fulfilment of 
 these obligations by force major, the fixed periods shall be respectively extended. 
 
 " § 5. The following stipulations shall obtain for the operation of the railways: 
 
 " I. — The Governor of Kiau-chou is to be notified of the proposed opening of the 
 railway on any one section at least three days in advance of the time set. 
 
 " II. — The railway is to be equipped in due time with rolling stock according to the 
 requirements of traffic. The material used shall be, as far as possible, of German origin. 
 
 " The Company binds itself to permanently maintain the railways, buildings, workshops 
 and rolling stock, including the telegraph plants, in good order and condition, in order 
 that transportation may be made with security and according to the stipulations of the 
 present contract. The company shall be held responsible therefor by the Imperial Govern- 
 ment, but no stricter regulations shall be issued for railways outside of the Protectorate 
 than those in force on the majority of the railways in China, built and operated under 
 similar circumstances. The railway police regulations applicable within the Protectorate 
 shall be in force along the line of railroad operation. 
 
 " III. — The number of trains to be despatched is left to the discretion of the company, 
 but it must meet the necessities of traffic as far as possible. The establishment of a 
 schedule and changes therein are subject to the approval of the Governor of Kiau-chou, 
 with the understanding that no greater obligations shall be required of the company than 
 in the case of the majority of other railways built and operated under similar circumstances 
 in China. 
 
 " The time table is to be made public in due time. 
 
 " IV. — The fixing of the tariff for transporting passengers and freight on every railway 
 section is left to the discretion of the company for the first ten years, beginning on 
 January 1st following the opening of the railway, but the maximum rates for the transporta- 
 tion of coal, to be fixed by the Imperial Government after consultation with the com- 
 pany, may not be exceeded. Subsequent to this time, that is after the expiration of the 
 ten years specified above, it is optional with the Imperial Government to fix the maximum 
 rates for the various classes of passengers and goods every five years ; within these 
 limits the company shall be at liberty to fix the charges of transportation. All maximum 
 rates to be fixed by the Imperial Government shall, however, not be lower than the 
 maximum rates of the majority of railways built and operated under similar circumstances 
 in China.
 
 242 CHINA TREATIES AND AGREEMENTS 
 
 ■' Rates for transportation as well as changes therein must be made known to the 
 Governor before adoption, and shall be published in due course. Increased rates, should 
 they not be approved by the Governor, shall come into force three months after publication 
 only. 
 
 " V. — Use of the railway is to be granted to everybody under similar conditions. 
 Especially the rates fixed for transportation are to apply equally to all persons or goods of 
 the same class. Facilities of transportation which under fulfillment of the same conditions 
 do not benefit everybody are inadmissible. Exceptional tariffs require the approval of the 
 Governor of Kiau-chou. 
 
 " Upon demand of the Imperial Government the Company is obliged to allow other 
 contractors to connect with the railway by means of private connecting tracks or junction 
 railways, upon refunding to the Company the expenses incurred thereby, should the Com- 
 pany itself not build connecting tracks or junction railways within a reasonable time. The 
 Company is further obliged to undertake the operation of the private connecting tracks 
 and furnish the necessary means of transportation, for which it is to receive suitable com- 
 pensation, and further, for a likewise reasonable compensation, to allow the passage of 
 the necessary transportation material of the junction railways. 
 
 " § 6. — Should the Company culpably offend against one of the obligations imposed 
 upon it by this document and not comply m due time with the injunction given by the 
 Imperial Government to make good the offense, the Imperial Government may hold the 
 company responsible for the losses accruing to the traffic through its fault, in an adequate 
 sum of money. 
 
 " Whether there has been a culpable offense on the part of the company, and whether 
 in consequence of such offense the order of the Imperial Government has not been properly 
 complied with, and what amount shall be paid for accrued damages, shall be finally 
 determined by a Court of Arbitration to be formed as provided for in Section 7. 
 
 "All moneys hereafter to be paid by the Company shall be paid into the Treasury 
 of the Imperial Government of Kiau-chou. 
 
 "Should a culpable action of the Company relative to one of the imposed obligations 
 contained in this document result in the railway section not being constructed or operated 
 in due course, the Imperial Government is authorized to take over itself, or to cause to 
 be taken over by a third party, the construction or extension of the railway and the organiza- 
 tion or continuation of the traffic, all at the expense of the Company. The question as to 
 whether such a culpable action on the part of the Company exists is also to be finally 
 decided by the Court of Arbitration to be formed according to paragraph 7 of this 
 document. 
 
 " § 7. — The Court of Arbitration, provided for in Article 6, shall be formed in 
 such manner that each party appoints two arbitrators and these shall elect an umpire. 
 The Imperial Government will name its arbitrators to the Company and, at the same time, 
 request the Company to appoint their arbitrators within four weeks, counting from the 
 day of the handing in of the summons, and to name them to the Imperial Government. 
 If the Company does not comply with this summons in due time, the Imperial Government 
 will also elect the necessary arbitrators. The umpire is elected by a majority vote. In the 
 case of a tie the umpire will be appointed by the President of the Hanseatic Upper District 
 Court. The regulations of the Tenth Book of the Civil Process, unless otherwise stated in 
 this document, shall hold good for the arbitration proceedings. 
 
 " § 8. — During the life of the concession, conveyed in this document, the Imperial 
 Government will not grant to any other contractor the right to construct a railway section, 
 running parallel in the same direction with the concessionary lines to the same points, 
 or touching at several of their principal places. 
 
 " § 9. — The Imperial Government of Kiau-chou shall cede to the Company such land 
 in the Protectorate necessary for the construction of the railway, provided it is property 
 of the Government and, according to the declaration of the Governor, not indispensable 
 for Government purposes, upon payment of the price prevailing in the locality, but which 
 shall not exceed 125,000 marks. The Imperial Authorities will, as far as possible, assist 
 the Company at their request to acquire more land if necessary, should it lie in the Pro- 
 tectorate or in the Province of Shantung. 
 
 " § 10. — The Imperial Government will grant to the Company, upon their request, the 
 concession for the construction and operation of the railways from Tsinan Fu to I-chou Fu 
 and from Tsin-tao to I-chou Fu, under conditions corresponding to those contained in this 
 document. 
 
 " As regards these railways, the company is free to await the end of the year 1908 
 before presenting this request. The concessions not solicited in due time can be other- 
 wise granted by the Imperial Government. 
 
 " § 11. — The Company shall pay a contribution from the yearly net profits of the railway 
 to be applied to the expenditures of the Government for the harbor works in the Bay of 
 Kiau-chou and also to the general running expenses of the Protectorate, which con- 
 tribution is to be estimated as follows: 
 
 "If after the opening of the traffic of the railway from Tsin-tao to Tsinanfu, the
 
 NUMBER 1900/3: MARCH 21, 1900: NOTE 243 
 
 net earnings of the railway would permit the payment of a yearly dividend of more 
 than 5 per cent of the paid up capital which is used in operating the railway, there shall 
 be paid into the Government funds of Kiau-chou the twentieth part of any surplus over 5 
 to 7 per cent, the tenth part of any surplus over 7 to 8 per cent, the fifth part of any 
 surplus over 8 to 10 per cent, the third part of any surplus over 10 to 12 per cent, and 
 the half of any surplus over 12 per cent. 
 
 " § 12. — The Imperial Government reserves the right to purchase the railways to be 
 constructed by the Company in accordance with this concession, after the end of sixty years, 
 calculated from the date of the grant of the concession. The Imperial Government 
 further reserves the right to buy at the end of every five years, including a one year's 
 previous notice, all establishments, rolling stock, appurtenances, inclusive of the reserve 
 and renewal funds earned by the railway enterprise, upon payment of twenty-five times the 
 amount of the average dividends paid during the last five years from its earnings, or, at 
 least, however, the commercial value of the actual existing railway plants, workshops and 
 rolling stock. In case there should be any doubt in ascertaining the value, a Court of 
 Arbitration, formed according to Article 7, shall decide. Should no sum obtain the 
 majority of the votes cast the one nearest the average of sums named by the individual 
 arbitrators shall be accepted. The decision of the Court is final. 
 
 " § 13. — The transfer, in whole or in part of the concession granted to the Company, 
 according to this document, the rights and obligations appertaining to it in exercise of 
 the same, under maintenance of its concessionary character, as well as any alteration in 
 the contract, must, to become valid, have the approval of the Imperial Government. 
 
 " The transfer of the concession itself or parts thereof to another Company, not Ger- 
 man or German-Chinese, is prohibited. 
 
 " § 14. — The Imperial Government reserves the right of appointing a commissioner ac- 
 cording to Article II of the second part of the German-Chinese Treaty of March 6, 1898. 
 
 " § 15. — A copy of this concession document will be delivered to the Company as 
 soon as the Company is regularly formed by the Syndicate. 
 
 " § 16. — The charges for all expenses incurred in this document, especially the stamp 
 duties, shall be borne by the Company. 
 
 "Baden-Baden June 1, 1899. 
 
 " (Signed) Imperial Chancellor." 
 " Prince zu nohenlohe-Schillingsfilrst." 
 
 By a Decree of the German Imperial Chancellor, dated March 13, 1913, the scope of 
 the railway enterprise was extended to include the exploitation of the mines of the 
 Schantung Bergbau Gesellschaft (No. 1900/4, post) ; the increase of the share capital to 
 60,000,000 Marks was approved; and the adoption of the following Rules (dated February 
 12, 1913) was sanctioned: — 
 
 Rules of the Shantung Railway Company, 
 
 " I. General Stipulations. 
 
 " Par. 1. — By virtue of the preceding Concession of the 1st June, 1899, granted by the 
 Imperial German Government an ' Actiengesellschaft ' has been formed under the style 
 of ' Schantung Eisenbahn Gesellschaft ' which has its siege in Tsingtau ; the Company shall 
 be under the laws and jurisdiction of the Court of Tsingtau for all affairs except those 
 between the Company and its shareholders and/or the Company and its executive bodies 
 arising from their Company-relations. For such cases the Company shall be subject to the 
 jurisdiction of the competent Courts in Berlin. 
 
 " The duration of the Company is not limited to a fixed time. 
 
 " Par. 2. — The object of the enterprise is the exploitation of the concession mentioned 
 in Par. 1 by constructing and operating a railway from Tsingtau to Tsinanfu including a 
 branch line from Changtien to Poshanhsien as well as the exploitation of the concession 
 dated 1st June, 1899, for mining in the Chinese Province of Shantung granted to the 
 Schantung Bergbau Gesellschaft and transferred to the Shantung Eisenbahn Gesellschaft. 
 
 " Par. 3. — With sanction of the Imperial German Government this Company shall be 
 authorised : 
 
 1) to build equip and run other railways in China, 
 
 2) to undertake the running of other railways established in East Asia and to acquire 
 such as property. 
 
 3) to intrust a third party with the running of its own railways. 
 
 4) to enter into agreements with the administrations of other connecting lines of rail- 
 roads operating or in course of construction, about mutual utilization of their lines 
 or to participate in any other way in other railway enterprises of East Asia. 
 
 5) to erect on its stations or in connection therewith the necessary warehouses for 
 storage of goods and to issue warrants for the goods taken in charge as well as to 
 provide for the forwarding of persons and of goods to and from the stations, 
 
 6) to produce and turn to profit also outside the district covered by the concession of
 
 244 CHINA TREATIES AND AGREEMENTS 
 
 the Schantung Bergbau Gesellschaft, both within and without the Province of Shan- 
 tung, products of the country and minerals, to establish and to acquire whatever 
 plants may be necessary for this purpose and to operate these and other establish- 
 ments which may promote the interests of the Company, or to participate therein, 
 
 7) to set up branch establishments. 
 
 " Par. 4. — The notices of the Company appear with legal validity by publishing them in 
 the 'Deutscher Reichsanzeiger.' 
 
 " II. Original Capital, Shares, Debentures. 
 
 " Par. 5. — The original capital of the Company amounts to 60 million Marks divided into 
 60,000 bearer shares of a nominal value of AI. 1000 each. [Note: (not in translated text) 
 Amended to read : 70 million and 70,000, respectively, by resolution of 5th June, 1914.] 
 
 " Annexed to each of these shares are dividend-coupons covering ten years and renewal 
 slips. The renewal slips empower a new issue of dividend-coupons for ten years and a new 
 renewal slip to the same effect. 
 
 " Shares or interim certificates, if any, shall be executed by signatures, or facsimiles, of 
 the Board of Directors and of the president of the Supervisory Committee or his substitute 
 (vice-president). For the rest the forms of shares, interim certificates, dividend-coupons 
 and renewal slips are to be decided on by the Supervisory Committee. 
 
 " The original subscribers who have floated the railway enterprise with a foundation 
 capital of 54 millions of Marks have received a bonus share on each share subscribed by 
 them, the privileges of these bonus shares are laid down in Par. 20, 26 & 30. 
 
 " The General Meeting may with the consent of the Imperial German Government 
 resolve on an increase of the share capital and on issuing the new shares at an agio above 
 their nominal value. New shares shall be issued to bearer provided not otherwise resolved. 
 The nominal value of shares and the minimum value below which the issue of shares shall 
 not take place are to be stipulated by the General Meeting. 
 
 " Par. 6. — In case shares, interim certificates, dividend-coupons and renewal slips have by 
 damage or defacement become unsuitable for circulation but their essential content and dis- 
 tinctive marks are still recognisable with certainty, the entitled holder may demand of the 
 Company to execute and deliver to him in exchange for the damaged or defaced document 
 a new one. He has to pay in advance all expenses incurred thereby. 
 
 " In case shares, debentures, bonus shares or interim certificates are lost or have been 
 destroyed they may be declared invalid by the legal proceeding of public notice. The costs 
 of such proceedings as well as the cost of executing new documents and all expenses in- 
 curred thereby are not to be borne by the Company but by the concerned, who has to 
 advance the costs. 
 
 " Dividend-coupons and renewal slips need not be declared invalid. Dividend-coupons 
 belonging to shares or interim certificates declared invalid, and not yet due at the time of 
 such declaration, are also invalid. 
 
 " Matured dividend-coupons become invalid in favor of the Company's accounts unless 
 collected within 4 years, counted from the 31st December following the date on which 
 they have become due. 
 
 " To anyone, however, who gives notice to the Board of Directors of the loss of coupons 
 before expiry of said term, proving their former possession by production of the shares or 
 interim certificates or otherwise in a reliable manner the amounts due on such coupons, 
 given notice of and not yet presented up to the expiration of the said term, shall be paid 
 against receipt. 
 
 "When the owner of a share or interim certificate, before issue of new coupons has 
 taken place has filed a protest against their delivery to the owner of the renewal slip such 
 coupons shall not be handed to the renewal slipholder but to the owner of the principal 
 document on production of such document by him. 
 
 " Par. 7. — By subscription for or purchase of shares, bonus shares or interim certificates 
 the shareholder subjects himself to the competent Courts of Berlin in respect of all con- 
 troversies with the Company arising out of Company relations. 
 
 " Par. 8. — With the consent of the Imperial German Government the Company shall be 
 authorised to issue debentures. 
 
 " III. Administration. 
 " a) Board of Directors. 
 
 " Par. 9. — The Board consists of two or more Directors appointed by the Supervisory 
 Committee, this Committee is also authorised to appoint Acting-Directors (substitutes for 
 the Directors'). These appointments shall be recorded notarially or judicially and must be 
 published. The Chairman of the Board must be approved by the Imperial German Govern- 
 ment. 
 
 " The Board may appoint procurists only with the approval of the Supervisory Commit- 
 tee. The Supervisory Committee divides the business among the members of the Board, and
 
 NUMBER 1900/3: MARCH 21, 1900: NOTE 245 
 
 fixes their mutual relations as welt as the rules for their consultations in common and 
 their resolutions. 
 
 " Par. 10. — All documents and declarations of the Board are binding on the Company 
 if they are signed with the written, stamped or printed name of the Company and counter- 
 signed by at least two members of the Board or by one member of the Board and one pro- 
 curist with an addition showing that he signs as such. 
 
 "b) Supervisory Committee. 
 
 " Par. 11. — The Supervisory Committee consists of at least 12, at most 30 members to be 
 elected by the General Meeting. At least 5 members shall reside in Berlin and including these 
 at least three quarters of all the members at the time shall be German subjects, residing 
 in the German Empire. 
 
 " The election holds good up to the end of that General Meeting which passes upon the 
 Balance Sheet of the fourth business year after the election, not counting the business year 
 during which the election takes place. 
 
 " At each ordinary General Meeting at least 5 and besides so many members of the 
 Supervisory Committee shall retire as that the term of office for each individual member 
 will be finished at latest by the end of the fifth ordinary Meeting after his election. The 
 succession of resignations is decided by the seniority of the members and in case of doubt 
 by lots. 
 
 " As long as the number of the members of the Supervisory Committee still remains 12 
 or more, a new election or by-election may be omitted. 
 
 "All declarations of the Supervisory Committee are legally executed if they are done 
 under the style ' Der Aufsichtsrat der Schantung Eisenbahn Gesellschaft ' with the signa- 
 ture of the president or his substitute (vice-president) and of a member of the Committee. 
 
 " Par. 12. — The members of the Committee draw no salaries but they receive reimburse- 
 ment of the outlays arising out of the execution of their duties and a compensation accord- 
 ing to Par. 26 of these rules. The distribution thereof shall follow the detailed regulations 
 of a standing-order to be established by the Supervisory Committee. 
 
 " Par. 13. — ^The Supervisory Committee elects a president and a vice-president (sub- 
 stitute) immediately after each ordinary General Meeting in a session at which the members 
 present meet without being specially called. The president shall be a German subject residing 
 in Berlin. 
 
 "Par. 14. — The president or his substitute (vice-president) shall convene the Committee 
 as often as business requires or when moved by at least three of its members or by the 
 Board of Directors. In convening the meeting the agenda are as far as possible to be 
 stated. Five members form a quorum. On matters not enumerated in the agenda the 
 Committee can only give a valid decision if at least half of its members are present and none 
 of them objects. In urgent cases valid resolutions may be passed by the medium of writing, 
 telegraph or telephone. 
 
 " All members of the Supervisory Committee have equal votes. Resolutions shall be 
 passed by majority of votes, votes being equal the president to have a casting vote. 
 
 "If at an election by the Supervisory Committee no majority of votes is obtained in 
 the first ballot, a second ballot shall take place for those two persons who have received the 
 highest number of votes. If each then obtains an even number of votes, lots will be drawn 
 for decision. 
 
 " Par. 15. — The Supervisory Committee resolves its own standing orders regulating 
 therein as well, whether and how votes have to be taken of Committee members residing 
 outside Germany. 
 
 " Par. 16. — Beyond the powers given to the Supervisory Committee by law and else- 
 where in these rules the Committee shall especially be authorised : 
 
 1) to engage and dismiss Directors, 
 
 2) to approve of the annual budget of salaries to be submitted by the Board of Directors 
 and to confirm the selection of officials receiving annual salaries of M 10,000 and 
 more or to be engaged for a longer term than three years, as well as to grant ex- 
 traordinary remunerations, bonuses and pensions to the members of the Board of 
 Directors and the Company's officials, 
 
 3) to determine the instructions for the management, 
 
 4) to appoint attorneys for a special business or for a class of business affairs (man- 
 agers, &c.) as well as to appoint either members from their midst or third persons 
 to substitute Directors, 
 
 5) to resolve on the acquisition and the sale of land properties destined for the Com- 
 pany's own business use, 
 
 6) to decide on the annual general condition of income and expenditure to be sub- 
 mitted by the Board of Directors and to fix the principles according to which the 
 money of the Company is to be handled, 
 
 7) to approve contracts, if their object exceeds M 30,000 or if the Company is bound 
 thereby for a longer term than three years,
 
 246 CHINA TREATIES AND AGREEMENTS 
 
 8) to deliberate on matters provided for in Par. 2, sections 1 — 7, and to decide thereon 
 in so far as an increase of original capital or the taking up of loans is not required, 
 
 9) to establish the Balance Sheet and the Profit and Loss Account for the purpose of 
 being submitted to the General Meeting, 
 
 10) to submit to the General Meeting the iinancial statements in order to be discharged 
 and to propose the amounts to go out of the profits to Special Reserve Fund as well 
 as those for division of profits, 
 
 11) to resolve upon payments to be called for on shares, 
 
 12) to dispose of the Special Reserve Fund according to Par. 28, 
 
 13) to appoint one or more special committees from among the members of the Com- 
 mittee and to transfer special business affairs or classes of such to these special 
 committees. 
 
 " The election of the Chief Technical Managers as w^ell for the Railway as for the Mines 
 requires the confirmation of the Imperial German Government. 
 
 "c) General Meeting. 
 
 " Par, 17. — Every shareholder may take part in the General Meetings. In order to be 
 authorised to vote at these Meetings the shareholders must at least three days before the 
 General Meeting and, should that day be a Sunday or a public holiday on the preceding 
 working day, at the office of the Company's cashier or at such other places as may be indi- 
 cated and advertised publicly : 
 
 a) hand in a list in duplicate, showing the numbers arithmetically arranged of the 
 shares intended for participation. 
 
 b) deposit such shares or warrants therefor issued by the ' Reichsbank ' or by the ' Bank 
 des Berliner Kassenvereins ' and leave them there up to the end of the General 
 Meeting. 
 
 " The obligation b) can as well be complied with by a deposit with a German notary. 
 
 " Each share entitles to one vote. Saving legal representation, a proxy in writing is 
 necessary and to be handed in to represent shareholders at a General Meeting. Partner- 
 ships, commandite companies and companies limited by shares, syndicates and companies 
 limited by subscription as well as associations and juristic persons by public law may be 
 represented by a member of their legal representative bodies or by an agent authorised to 
 sign per procuration, even if otherwise for the binding of the represented body the joint 
 action of several is required. 
 
 " Par. 18. — General Meetings shall be held in Berlin and be convened without prejudice 
 to the regulations contained in Par. 254 of the Commercial Code by the Board of Directors 
 or the Supervisory Committee through a notice given so that there are at least thirty days 
 between the date of issue of the ' Reichsanzeiger ' containing the publication and the date 
 the meeting is to be convened, both dates not included. 
 
 " Within the first six months of every business year an ordinary General Meeting shall be 
 held, an extraordinary Meeting is to be convened whenever there is a special cause therefor. 
 
 " The agenda to be before the Meeting shall be published at the time the notice appears 
 convening the Meeting. The General Meeting may however pass valid resolutions if the 
 motion thereto has been published at least one week before the end of the term set for the 
 deposit of shares. Should however the resolution require a larger than a simple majority of 
 votes, publication of such motion must have taken place at least two weeks before the 
 expiration of the date set for deposit of shares. 
 
 " Par. 19. — Except in cases, in which the Company must liquidate by order of law, the 
 liquidation or dissolution of the Company, furthermore the reorganisation of the Com- 
 pany by expansion or alteration of the object of its enterprise or its amalgamation with 
 another ' Aktiengesellschaft ' can only be decided on in an extraordinary General Meeting 
 convened solely for the purpose of passing such resolutions. 
 
 " To make such resolutions legally valid, it is necessary that at least three quarters of 
 the original share capital is represented in the Meeting. If this is not the case, another 
 extraordinary General Meeting can be called for the same purpose within the next six weeks, 
 in which the resolution can be passed with legal validity even if less than three quarters of 
 original share capital are represented. 
 
 " In both cases it is further necessary for the validity of the resolution that such is passed 
 by a majority of at least three quarters of the votes represented in the Meeting and that 
 it is approved of by the Imperial German Government. 
 
 " Par. 20.— Alterations and additions to the rules, excepting the cases mentioned in Par. 
 19 and those cases in which a three quarters majority is prescribed by law can only be passed 
 by a majority of at least two thirds of the votes represented in the voting and with the 
 consent of the Imperial German Government. 
 
 " The redeeming of bonus shares (Par. 5) requires an alteration of the rules. All holders 
 of bonus shares are subject to an agreement as to their redemption, if such agreement is 
 approved by at least two thirds of the votes represented in the voting at a meeting of bonus- 
 share-holders, to be convened by a notice (Par. 4) stating the business before the meeting.
 
 NUMBER 1900/3: MARCH 21, 1900: NOTE 247 
 
 In this meeting each bonus share shall entitle to one vote, the further proceedings at the 
 meeting are to be decided on by the Supervisory Committee. 
 
 '■ Par. 21. — At the General Meeting the president of the Supervisory Committee or his 
 substitute (vice-president) or in their absence a member of the Supervisory Committee 
 appointed thereto by the Committee shall take the chair. In case of none of the Committee 
 members being appointed the Chairman shall be elected by the General Meeting under the 
 presidency of the shareholder having registered the largest number of shares. The 
 Chairman conducts the discussion, fixes the succession of the items on the agenda as well as 
 the modus of taking votes and appoints the scrutineers when necessary. 
 
 " The minutes of the General Meeting shall be written by a notary and shall be signed 
 by the Chairman. A statement of the individual shareholders present in the meeting shall 
 not be embodied into the text of the minutes, but a separate list, signed by the Chairman, 
 giving names of shareholders present and/or represented shall be attached to the minutes, 
 this list to be present for general inspection before the first voting of the Meeting takes 
 place. Proxies handed in need not be attached to the minutes. 
 
 " Par. 22. — Resolutions of the General Meeting shall be passed, provided the law or 
 these rules (Par. 19 & 20) do not compulsorily order otherwise, by simple majority of votes 
 taken at the voting, in case of votes being even the resolution shall be considered lost. 
 
 " If at elections objection is raised against any other modus proposed, the voting has to 
 be effected by handing in ballot-papers and by simple majority. Such majority not being 
 attained at the first voting, a ballot limited to those who have received the two highest 
 numbers of votes shall take place. When votes are even at the limited ballot, decision shall 
 be by lot. 
 
 " Par. 23. — As a rule the General Meeting only votes on such proposals as are laid 
 before it by the Board of Directors or by the Supervisory Committee. 
 
 " Motions brought forward by individual shareholders shall be dealt with according to 
 the regulations fixed by law. 
 
 " IV. Balance Sheet, Ascertaining Profits. 
 " Reserve Fund. 
 
 " Par. 24. — The business year begins with the 1st of January and ends with the 31st 
 December of every year. 
 
 " Par. 25. — The annual financial statement shall be drawn as for the 31st December in 
 accordance with legal regulations and sound commercial principles, it shall be presented to 
 the General Meeting within the first six months of the following year. 
 
 " Net profits shall be understood as profits in hand after deducting such amounts as the 
 Supervisory Committee annually resolves on as contribution towards the Renovation Fund. 
 This Fund is to bear mainly the costs incurred in renewing locomotives, tenders and roUing 
 stock respectively single parts thereof as fireboxes, boilers, cylinders, boilertubes, springs, 
 axles, wheels, steel tyres, brakes, watertanks, bodies of carriages and compartments as well 
 as in renewing rails, sleepers, siding, crossings and small iron parts of the permanent way. 
 On the other hand this Fund is to be credited, in addition to the annual contribution, with 
 the proceeds of sale of the corresponding old material as well as the interest of the Fund 
 itself. 
 
 " Par. 26. — Out of the net profit thus resulting is : 
 
 1) 5% to be transferred to the Reserve Fund (Par. 27) required by law, so long as 
 this Fund does not exceed the tenth part of the original capital, 
 
 2) an amount not exceeding 5% according to the proposal of the Supervisory Commit- 
 tee to be transferred to the Special Reserve Fund to be formed, 
 
 3) a dividend up to 5% on the share capital paid up to be granted. 
 Of the balance remaining: 
 
 33y3% shall go to bonus-share-holders, 
 
 66%9c shall go as superdividend on the share capital paid up, after however having first 
 deducted : 
 
 5% for the Supervisory Committee and 
 
 the contribution to the Government as provided for in Par. 11 of the instrument of 
 concession, dated 1st June, 1899. 
 
 " The compensation due to the Supervisory Committee is guaranteed at M 2000 annually 
 for each member and with any possible deficit shall be reckoned in the costs of administra- 
 tion. 
 
 " All dividends as well as the contribution to the Government are to be paid at latest 
 in the course of July of the year following the business year accounted for. 
 
 " Par, 27. — Agio profits, i. e. what shareholders in case of increase of share capital will 
 have to pay for shares above the nominal value of such new shares, after having deducted 
 thereof all costs of issue shall be placed to the Reserve Fund. (Cf. Par. 26, section 1). 
 This Reserve Fund is solely intended for the purpose of covering a saldo of loss shown by 
 the balance sheet. 
 
 " Par. 28. — From the Special Reserve Fund formed according to Par. 26, section 2,
 
 248 CHINA TREATIES AND AGREEMENTS 
 
 extraordinary losses and expenses, especially for renovations may be met by resolution of 
 the Supervisory Committee. 
 
 "V. Nomination of Chancellor's Commissioners. 
 
 " Par. 29. — The Imperial Chancellor may nominate one or more Commissioners entitled 
 to take part in the meetings of the Supervisory Committee and in the General Meetings 
 and to demand at any time a report from the Supervisory Committee on the affairs of the 
 Company also to inspect the books and documents of the Company. 
 
 " VI. Liquidation. 
 
 " Par. 30. — The regulations provided by law in case of liquidation shall only apply in 
 so far as the General Meeting deciding on the liquidation does not resolve otherwise. This 
 Meeting shall particularly be authorised to alter for the time of liquidation the powers of 
 the Supervisory Committee, to resolve that during liquidation no regular retiring of members 
 of the Committee shall take place and to stipulate the bonus to be paid to the Supervisory 
 Committee as well as the authority to be given to the liquidators. The holders of bonus 
 shares shall be entitled to 33y3% of the surplus remaining after paying off all liabilities 
 including the original capital." 
 
 NUMBER 1900/4. 
 
 GERMANY (Schantung Bergbau Gesellschaft) AND CHINA. 
 Regulations for Mining in Shantung* — March 21, 1900. 
 
 His Excellency the Governor of the Province of Shantung Yuan Shih-kai 
 and His Excellency the Lieutenant General Yin Chang, upon petition of the 
 Governor of Shantung especially delegated by Imperial decree to these negotia- 
 tions, on the one side, and the managing Board of the Shantung Mining Company 
 at Tsingtau, represented by Messrs. H. Michaelis and K. Schmidt, on the other 
 side, have, in order to prevent excitements and disturbances of any kind, which 
 may arise through the commencement of mining operations by the Schantung 
 Bergbau Gesellschaft in the Province of Shantung and in order to maintain 
 friendly relations between its population and the Company, agreed upon the 
 following Mining Regulations with regard to the mining concession reserved 
 and granted to German subjects by the Imperial Chinese Government within a 
 zone of 30 li on both sides of the railway lines to be built in conformity with 
 Article 4 of the Kiauchow Convention, subject to the approval of the Supervisory 
 
 * Translation from German text. 
 
 A Japanese version of the Regulations is printed in Shina Kankei Tokiishii Joyaku 
 Isan, p. 423. 
 
 In connection with these Regulations, see the Convention for the Lease of Kiaochow, 
 March 6th, 1898 (No. 1898/4, ante), particularly Section II, Art. IV; also Regulations 
 for the Kiaochow-Tsinan Railway, Alarch 21st, 1900 (No. 1900/3, ante), and particularly 
 the Rules of February 12th, 1913, annexed thereto at p. 243. 
 
 Another translation of this agreement is printed (at p. 37) in the Claim of China for 
 direct Rcstiiution to herself of the Leased Territory of Kiaochow, the Tsingtao-Chinan 
 Raihvay and other German Rights in respect of Shantung Province, as presented by the 
 Chinese Delegation to the Preliminary Peace Conference at Paris in February, 1919. 
 
 See Note to this document, post, p. 252.
 
 NUMBER 1900/4: MARCH 21, 1900 249 
 
 Committeee of the Schantung Bergbau Gesellschaft, and reduced to writing in 
 Chinese and German texts of like tenour. 
 
 Art. 1. — By virtue of Article 4, section 2, of the aforesaid Kiauchow Con- 
 vention a German-Chinese Company shall be formed, according to the rules of 
 this Company shares shall be issued which may be purchased by German as well 
 as by Chinese subjects. This Company shall for the present be exclusively under 
 German management, it shall half-yearly notify the Chiao Se Chue at Tsinanfu 
 how many shares have been purchased by Chinese. As soon as the amount of 
 such shares has reached Taels 100.000 the Governor of the Province of Shantung 
 shall to look after the interest of the Chinese shareholders, appoint a Chinese 
 official to co-operate at the Company's siege. 
 
 Art. 2. — Should in future branches of the Administration of the Company 
 be established in Shantung one Chinese official shall be delegated to each of 
 them. 
 
 Art. 3. — Land used for preliminary examinations with regard to the mining 
 enterprises, for boreholes and prospecting shafts, etc., shall be rented by the 
 Company at an adequate compensation provided the Company should not prefer 
 to buy such land. Spoiled crops or other damages shall be fully paid for accord- 
 ing to local market prices. The beginning of such operations has to be notified 
 to the local authorities fifteen days in advance in order to enable them to issue 
 instructions to the population. 
 
 Art. 4. — Officials or respectable citizens shall be consulted upon the lots 
 of lands to be selected for digging shafts, or erecting workshops, depots, houses 
 for workmen, etc., in order to prevent, as far as possible, injury being done 
 to the interest of the people. To avoid difficulties in negotiations, these shall 
 be conducted on the Chinese side by Chinese officials, delegated by the Governor 
 of Shantung. 
 
 The technical determination and selection of the mining fields and of the 
 surface plots needed to erect the buildings of the mining establishments shall be 
 left to the engineers of the Mining Company. 
 
 A ground-plan of these establishments done on a scale of 1 : 25,000 has to 
 be submitted to the Governor of Shantung for information and only thereafter 
 land may be purchased. The construction itself shall not begin before the title 
 deed to such land is duly made out. 
 
 Landowners shall not be permitted to protest against subterranean mining 
 works necessary for production of coal or other minerals except at places men- 
 tioned in Art. 7. 
 
 The purchase of land has to be proceeded with peacefully and quickly, there 
 shall be no detention of mining work through land purchase or through difficulties 
 raised by individual owners. In order to prevent all such difficulties the above- 
 mentioned Chinese official shall act as mediator when land is to be purchased 
 and he shall settle all disputes arising. The land shall be purchased in an honest 
 way according to the locally customary ruling price. The Company shall not be 
 allowed to buy more land than necessary for erection of the surface plants 
 including depots, railroads and roads leading to the mines and possible future 
 extensions.
 
 250 CHINA TREATIES AND AGREEMENTS 
 
 The surface land above subterranean works need not be purchased by the 
 Company. 
 
 No compensation shall be paid to the landowner for coal and other minerals 
 raised by the Mining Company. 
 
 Art. 5. — Houses, farmsteads and villages, temples, graves and above all high 
 class graveyards belonging to the gentry, which are fenced in and planted with 
 trees shall as far as possible not be used for the erection of buildings on the 
 surface for mining purposes. 
 
 If it should be impossible to prevent the above-mentioned properties from 
 being used the local official shall two months in advance notify the owners and 
 settle with them a compensation of an amount enabling owners to erect grave- 
 yards, etc., of the same condition at another place without sustaining any loss of 
 money. 
 
 Art. 6. — Houses, sheds, shafthouses and depots belonging to the mines shall 
 be so placed as not to disturb city walls, fortifications, public edifices and im- 
 portant inhabited places on the surface. 
 
 Art. 7. — The Company is not permitted to mine underneath graveyards, 
 temples, parks and palaces belonging to the Imperial Family. 
 
 Art. 8. — In surveying the land to be purchased the " kung " shall be used as 
 unit. 1 kung is equal to 5 official feet, 1 foot is equal to 0.338 m. 1 Mu is 
 counted to be 360 kung or equal to 9,000 square feet. As to the land tax to be 
 paid by the Mining Company the same regulations shall be applied as in force 
 for the most-favoured Mining Company in any other place of China. 
 
 Art. 9. — The salaries of the assistants placed by the local authorities at the 
 disposition of the Mining Company at its wish shall be paid by the latter. They 
 shall not be included in the price of land purchased. The money for the land 
 is to be paid into the hands of the District Magistrate, who is responsible for 
 the proper payment to the different owners entitled to receive the money. The 
 District Magistrate also has to hand over the title deeds to the Mining Ad- 
 ministration. 
 
 Art. 10. — Should the Mining Administration apply for soldiers to protect 
 the preparatory works and the property of the Company when the mines are in 
 operation, the Governor of the Province of Shantung shall at once and effectually 
 comply with such application. Therefore no foreign troops shall be employed 
 for the protection of mines outside the 100-// zone. The amount to be contributed 
 by the Mining Company for troops dispatched for the protection of its property 
 shall be the subject of a further understanding. 
 
 Art. 11. — The purchase of material necessary for mining purposes shall 
 be transacted in a fair manner and the usual market price shall be paid for 
 game. If necessary the assistance of the District Magistrate shall be applied 
 for. 
 
 Art. 12. — The Mining Administration intending to rent houses for offices 
 and residences near the workplaces, shall apply to the District Magistrate who 
 will make the necessary arrangements with the owners and will on its behalf 
 conclude the contracts. 
 
 Art. 13. — The natives of districts where mines are established shall as far
 
 NUMBER 1900/4: MARCH 21, 1900 251 
 
 as possible be engaged as workmen and as contractors for the supply of mate- 
 rials, they shall be paid as customary in these districts. 
 
 If fights should occur between miners and natives the local official will 
 have the right to arrest and punish the guilty. Miners are absolutely forbidden 
 unwarrantably to enter the houses of natives. In case of contravention they will 
 be severely punished. 
 
 Art. 14. — The Mining Company assumes the responsibility for any loss of 
 life or goods caused by accidents in the mines and has to pay compensation to 
 wounded or killed persons according to the local custom and to cover any loss 
 of goods according to detailed regulations to be made and published by the 
 Company. 
 
 Likewise the Company, when prospecting, will be held responsible for all 
 damages done by neglect of the Company to persons and property. 
 
 Art. 15. — The Mining Company assumes the full responsibility for damage 
 done to wells, fields, houses and other buildings by operating mines. It has to 
 pay for such damages, if caused by the Company's neglect compensation accord- 
 ing to local prices. 
 
 Draining off water pumped out from mines is to be done under such pre- 
 cautions, that neighbours and their fields will not suffer any loss. Any such loss 
 has to be made good by the Company. 
 
 Art. 16. — Foreigners who wish to travel in the interior of the Province of 
 Shantung, in order to enjoy better protection must be provided with passports 
 duly sealed by the proper Chinese and German Authorities. The Chinese local 
 authorities cannot assume any responsibility if such a passport is not produced. 
 
 German and Chinese employees of the Mining Company are to be provided 
 with certificates attested by the seals of the Mining Administration and of the 
 Local Authorities, in order, when necessary to prove their official capacity. 
 
 When prospecting the engineers shall be accompanied by an official dele- 
 gated by the District Magistrate. This official shall, if necessary by police-forces, 
 render assistance in protecting the progress of the work. His salary is to be 
 paid by the Mining Company. 
 
 Persons fraudulently pretending to be employees of the Mining Company 
 shall be arrested and punished by the Local Authorities. 
 
 Art. 17. — Outside of the 30-li zone mines cannot be operated without special 
 permission of the Governor of Shantung. Inside of the 30-/i zone, excepting 
 the existing Chinese mines, the Shantung Mining Company has the right to work 
 mines and raise coal and other minerals. The Chinese mines now in operation 
 are entitled to continue work under the hitherto existing conditions, but they 
 must so proceed that the works of the Shantung Mining Company are not injured 
 thereby. 
 
 In order to prevent the mines of the Shantung Mining Company lying 
 below these Chinese mines from being kept in constant danger, the Company 
 shall be at liberty to conclude an agreement for the purchase of these mines with 
 the owners. If necessary the Company shall appeal to the District Magistrate 
 for intervention. 
 
 Regarding the purchase of larger Chinese mines already existing within
 
 252 CHINA TREATIES AND AGREEMENTS 
 
 the 30-// zone, their owners, instead of receiving payment in cash, shall be at 
 liberty to ask for shares of the Shantung Mining Company amounting to the 
 sum agreed upon as price of the mine sold. Should owners of such mines be 
 unwilling to sell them, the working of such mines is not to be interfered with. 
 Art. 18. — Inhabitants of places near the mines shall get coal to be used for 
 their households at reduced prices as soon as the working of the mines is estab- 
 lished favorably and successfully. 
 
 Art. 19. — In the Province of Shantung outside the leased territory of 
 Kiauchow the Governor in Tsinanfu safeguards all the rights of sovereignty. 
 Therefore Chinese officials and workmen employed by the Shantung Mining 
 Company within this province shall in case of contravention of Chinese law 
 be under the jurisdiction of the competent Chinese Local Authorities. 
 
 In case of complaints against foreigners employed by the Company proceed- 
 ings shall be taken according to the proper laws. 
 
 Art 20. — It shall be the subject of further agreements, when and under 
 what conditions the Chinese Government may in future take over the mines. 
 
 The foregoing regulations, after being approved, shall be notified to the 
 Authorities of the Province of Shantung and to the officials of the mines. There- 
 upon they shall be duly observed. 
 
 Should it be necessary in future to have alterations made of some of the 
 above regulations or to have drawn up supplementary rules, this can only be done 
 by mutual agreement between the Governor of the Province of Shantung and 
 the Shantung Mining Company. 
 
 Tsinanfu, 21st March 1900. 
 
 The Governor of the Province of Shantung: 
 
 [signed and sealed] 
 
 H. M's. Delegate: 
 
 \sig.] Yin Chang, Lieut. -General. 
 
 Die Direction der Schantung Bergbau Gesellschaft. 
 
 Note. 
 
 The Schantung Bergbau Gesellschaft was a joint German and Qiinese enterprise operat- 
 ing under a German charter or " concession " dated June 1, 1899, of which the following 
 is a translation from the German text : — 
 
 Charter of Schantung Bergbau Gesellschaft. — June i, 1899. 
 
 " The Deutsch-Asiatische Bank — representing the Syndicate formed for the establish- 
 ment of ' German Chinese-Mining Companies ' — having applied for a mining concession 
 within the Chinese Province of Shantung in favour of said Syndicate, the Imperial Gov- 
 ernment is ready to grant same in accordance with the agreement contained in the German- 
 Chinese Treaty of 6 March 1898 under conditions as follows : 
 
 " Par. 1. — Beginning with the day of granting the concession the concessionary shall 
 for a period of five years have the exclusive right to prospect for coal and other minerals 
 as well as Petroleum and to claim mining fields by reason of finds made within an area 
 extending 30 li to either side of the railway lines to be constructed 
 
 a) from Tsingtau via Weihsien to Tsinanfu including a branch to Poshan. _ 
 
 b) from Tsinanfu through the Province of Shantung as a part line of projected rail- 
 way from Tientsin to Kuachou (Chingkiang). 
 
 c) from Tsingtau via Ichoufu towards the railway mentioned under b.
 
 NUMBER 1900/4: MARCH 21, 1900: NOTE 253 
 
 " The concessionary is to hand over to the Imperial Government as soon as possible a 
 trace of the probable line of Railways to be built. 
 
 " Par. 2. — For every find which is made within the districts covered by Par. 1 and 
 which must be proved in its natural deposit, the concessionary shall be granted a field 
 limited by perpendicular planes the demarcations for which are to be indicated on the 
 one hand by the railway-line and a line parallel to it at a distance of 30 /(' and on the 
 other hand by two lines six kilometers apart from each other running rectangularly to the 
 railway line. 
 
 " After expiration of the time provided for by Par. 1 the monopoly of the conces- 
 sionary to prospect and locate shall cease and the Imperial Government may grant such 
 rights to other persons or corporations as well. 
 
 " Par. 3. — Within ten years after expiration of the time provided for in Par. 1 
 methodical working of mines must have been started and shall thenceforth be continued 
 by the concessionary his successors or assigns upon the field granted to them or if three 
 or more fields should have been granted at least upon one field in every three. 
 
 "Should they fail to comply with this obligation and should the omission of or inter- 
 ruption to such work be contrary to prevailuig reasons of public mterest the Imperial 
 Government may withdraw the grant of mining rights for such fields. No claim for 
 compensation of any kind shall be admitted in such case. 
 
 "The grant of mining rights can however not be withdrawn on account of not having 
 maintained proper operating of mines unless notice to maintain such operating has been 
 ineffectively given twice whereof the second notice cannot be handed in before at least 
 half a year has elapsed after the first notice having been given. 
 
 " Should the concessionary his successors or assigns with reference to a mining field 
 show special cause which made it impossibI«e to begin the proper operating of mines 
 within the stipulated time then the limit of time may be extended once for a reasonable 
 period. If the concessionary his successors or assigns prove to the satisfaction of the 
 Imperial Government that the observance of this limit of time or the continuation of 
 proper operating of the mines has been rendered impossible by force majeure then in 
 the first case the limit of time shall be extended for a reasonable period and in the second 
 case the grant of mining rights shall not be withdrawn provided the concessionary his 
 successors or assigns resume, after removal of the hindrance caused by force majeure, 
 the proper operating of mines within such reasonable time as may be fixed by the Imperial 
 Government. 
 
 '■ Par. 4. — If at the expiration of twenty years counted from the day of granting the 
 concession the extent of the mining fields granted to the concessionary should prove to 
 exceed half of the total area of the 'Thirty-/; Zone' the Imperial Government is entitled 
 to revoke the mining rights in as much as they are granted in excess of the area men- 
 tioned. No claim for compensation of any kind shall be admitted based on such revoca- 
 tion. It is however left to the concessionary to point out the fields for which his mining 
 rights or the mining rights of the Companies (Par. 5) formed by him shall cease. If 
 the concessionary does not comply with the request transmitted to him by the Imperial 
 Government to point out such fields, within six months after the day the request has been 
 delivered to him, the Imperial Government shall decide upon such fields. 
 
 " Par. 5. — The concessionary shall form one or more German-Chinese Companies (one 
 at least within three months after the earliest date law will permit) having the status of 
 a 'Colonial Company' (Kolonial Gesellschaft) in the meaning of the law with reference 
 to the legal affairs of Protectorates dated 15 March 1888 and he shall transfer to such 
 Companies the rights and obligations granted to him by the concession. The rules of 
 these Companies shall be submitted to the Imperial Government for approval. 
 
 " Every Company formed in accordance herewith shall establish its siege in Tsingtau 
 within six months after the resolution of the Federal Council concerning the juristic quality 
 to be granted thereto. In case the dates set as above are not adhered to, the Imperial 
 Government may if unwilling to extend the terms declare that the rights and obligations 
 granted to the concessionary or to the Company by virtue of the concession shall be null 
 and void, and no claim for compensation based on such an action shall be admitted. 
 
 " Par. 6. — Proper steps have to be taken that both Germans and Chinese may be able 
 to participate in the public subscription of shares for each of the Companies formed. 
 Especially for this purpose subscription of shares shall also be opened at suitable trading 
 places of Eastern Asia and the amount subscribed there shall receive adequate consideration. 
 
 " Par. 7. — The concessionary his successors or assigns are bound when called iipon by 
 the Imperial Government, to satisfy out of the coal produced by them in the first instance 
 the requirements of the Imperial Navy and to allow for all coal thus purchased a preference 
 price being 5% below market price ruling at Tsingtau for coals of same quality. 
 
 " Par. 8. — As a contribution to the expenses of the Imperial Government for harbour 
 works in Kiauchou Bay and to the General Administration of the Protectorate the con- 
 cessionary his successors or assigns shall pay a tax on the annual net income of the 
 mining enterprises to be calculated as follows : 
 
 "If the net income available for distribution resulting out of the proceeds of a mining
 
 254 CHINA TREATIES AND AGREEMENTS 
 
 enterprise would allow for a yearly dividend of more than 5% figured on the share capital 
 paid up and expended for such enterprise the tax to be paid for that year to the treasury 
 of the Government of Kiauchou shall be: 
 
 from the amount exceeding 5% up to 7% the twentieth part 
 from the amount exceeding 7% up to 8% the tenth part 
 from the amount exceeding 8% up to 10% the fifth part 
 from the amount exceeding 10% up to 12% the third part and 
 from the amount exceeding 12% one half. 
 
 " Par. 9. — The total or partial transfer of the concession to be granted by this instru- 
 ment, and also every alteration of the Rules of Companies established in accordance with 
 Par. 5 require the approval of the Imperial Government to be valid. A transfer of the 
 concession itself or any part of it to a Company other than a German or German-Chinese 
 shall not be allowed. 
 
 " Par. 10. — One copy of this instrument of concession will be handed to the conces- 
 sionary as soon as the Shantung Railway Company has been properly formed. 
 
 " Par. 11. — All costs of this instrument if any, especially any stamp duty, shall be borne 
 by the concessionary. 
 
 '• Baden-Baden, 1st June 1899. 
 
 " The hnperial Chancellor, 
 " [sig.] FuRST zu Hohenlohe-Schillingsfurst." 
 
 The following is a translation (from the German text) of the Rules, dated October 
 10th, 1899, applicable to the Company: — 
 
 Rules of Schantung Bergbau Gesellschaft. — October lo, 1899. 
 
 " I. — ^General Stipulations. 
 
 " Art. 1. — Under the style of Schantung Bergbau Gesellschaft a Kolonial Gesellschaft 
 (Colonial Company), having established its siege in Tsingtau, has been formed by virtue of 
 the law of the German Empire, dated 15th March 1888 and 2nd July 1899. This Company, 
 though working under the laws and under the jurisdiction of its siege shall be subject 
 to the jurisdiction of Courts competent for such matters in Berlin for all actions between 
 the Company and its individual members and/or the Company and its executive bodies 
 arising from their company relations. 
 
 " Art. 2. — The object of the enterprise is the acquisition and the exploitation of the con- 
 cession of 1st June 1899, preceding these rules, and in pursuance thereof the establish- 
 ment of mining enterprises of every kind in the assigned area of the Province of Shantung 
 particularly : 
 
 1 ) the prospecting for Coal and other Minerals, also for Petroleum, 
 
 2) the acquisition of mine properties by reason of the finds made, 
 
 3) the establishment and the operation of mines, foundries and smelting works, dress- 
 ing works and all installations appurtenant thereto, also the purchase of raw mate- 
 rial for the business within and without the area of concession, 
 
 4) the purchase and rent as well as sale and lease of rights to prospect and to locate 
 as well as of mines and of metal works, 
 
 5) the acquisition and rent of land, rights to land and to water, as well as sale and 
 lease of the above things and rights, 
 
 6) the building of branch railway lines for the purpose of forwarding the products 
 of mines and metal works, 
 
 7) the sale of the products gained from the mines and metal works and also of other 
 products of the country, also the establishment of sales offices within or without 
 the Province of Shantung, for the purpose of such sale, 
 
 8) the participation in mines and metal works existing or to be established in the 
 area of concession, 
 
 9) the establishment of other mining companies, to which part of the privileges granted 
 by the concession of 1st June 1899 are to be transferred in accordance with Par. 
 5 of the conditions of the concession. 
 
 With the approval of the Imperial German Government the Company is entitled : 
 
 1) to extend its mining enterprises and operations connected therewith or its participa- 
 tion in such enterprises and works outside the area of concession in the Province 
 of Shantung or outside of this Province, 
 
 2) to found branch establishments. 
 
 " Art. 3. — The duration of the Company is not limited to a fixed time. 
 " Art. 4. — The executive bodies of the Company are : 
 
 The Board of Directors (Direction) 
 
 The Supervisory Committee (Verwaltungsrat) 
 
 The General Meeting (Generalversammlung).
 
 NUMBER 1900/4: MARCH 21, 1900: NOTE 255 
 
 " Art. 5. — The notices of the Company appear with legal validity by publishing them 
 once in the ' Deutscher Reichs-Anzeiger,' unless other forms or more frequent publica- 
 tion are stipulated by these rules. The Company, however, reserves to itself the right 
 to publish them in addition in other papers at the decision of the Supervisory Committee, 
 the validity however of the notices not being dependent on this publication. When time 
 limits are published the day of the issue of the paper is not included. 
 
 " II. — Capital. 
 
 " Art. 6. — The capital of the Company amounts to Marks 12,000,000. — equal to Francs 
 15,000,000.— equal to Pounds Sterling 600,000.— divided into 60,000 shares of the value of 
 Marks 200. each — equal to Francs 250. — equal to Pounds Sterling 10. On each share 25% 
 are paid up in Marks. 
 
 "Further payments or full payment of the shares in Marks shall, with approval of the 
 Supervisory Committee, be called in by the Board of Directors giving four weeks notice 
 of such calls. The Supervisory Committee is authorised to lay down the conditions, under 
 which the full payment of shares before due date wil'i be allowed. 
 
 " An increase of the capital can only be decided upon by a General Meeting. The reso- 
 lution shall also contain the conditions, under which the new shares will be issued. 
 
 " Art. 7. — The original subscribers of the shares to be issued and thereafter their suc- 
 cessors or assigns form the Company. The shares are indivisible ; they possess the quaHty 
 of movable property. Individual members may not sue for divisions of property. 
 
 " Art. 8. — For the obligations of the Company, the Company's assets will only be liable 
 to the creditors. 
 
 " Art. 9. — The original subscriber of a share is responsible for the payment of the full 
 face value thereof. 
 
 " Beyond the full payment no further responsibility rests on the members of the 
 Company. 
 
 "Art. 10. — The share certificates are made out to bearer; they will be issued in 
 denominations of one, five or ten shares, according to the decision of the Supervisory 
 Committee. 
 
 " The share certificates will be issued only after payment of the full face value. For 
 the instalment-payments receipts will be given on an interim certificate bearing the name of 
 the holder. 
 
 " The interim certificates are transferable by endorsement, without prejudice to the 
 responsibility laid on the subscriber of the share by virtue of Art. 9; by a resolution of 
 the Supervisory Committee however interim certificates for the first instalment of 25% 
 may be transfered in such a way that the new owners take the place of the original sub- 
 scribers. Wherever in these rules shares of the Company are mentioned, interim certifi- 
 cates take their place until the share certificates have been issued. 
 
 "Art. 11. — Dividend coupons for ten years with renewal slips shall be attached to the 
 shares. 
 
 " At the end of the last year new dividend coupons for ten years will be issued against 
 delivery of the renewal slips. If a profit is divided before issue of the shares, the interim 
 certificates will be stamped accordingly upon payment of such dividends. 
 
 " Art. 12. — Those liable, but failing to render part payments due, shall be requested by 
 the Board of Directors by notice stating the numbers of the shares on which payment is 
 overdue, to pay same together with interest at 5% within a time to be fixed at not less 
 than four weeks. 
 
 " Whoever allows this time to elapse without making payment as aforesaid, forfeits a 
 fine of 10% of the amount due besides the interest, and the Board of Directors may force 
 him by legal proceedings to pay the instalment due together with interest, fine and costs. 
 
 " Instead of this procedure the Board of Directors, after having given once more a 
 notice to the defaulting subscribers to complete the overdue payments within a further 
 delay of four weeks and after having warned them at the same time that they will be 
 excluded, if they do not comply with the request, may pass, after this period has ineffectually 
 elapsed, a resolution that the subscribers shall lose in favour of the Company the privileges 
 arising from the subscription as well as all payments made. Such declaration shall be 
 advertised publicly, and new scripts will be issued in place of that which is declared to 
 be cancelled, such scripts to include the part payments made already and the instalment 
 last asked for. The defaulter shall remain responsible for any loss suffered by the Com- 
 pany in the sale of such shares. 
 
 " Art. 13. — The original subscribers of the share capital described in Art. 6, Section 1, 
 who have floated the enterprise, shall receive one bonus share on every one share sub- 
 scribed, i. e., 60.000 bonus shares in all. They shall be issued in the name of the owner 
 in denominations of one, five or ten bonus shares. The privileges of the bonus shares are 
 laid down in Art. 18. Art. 39 and Art. 40. 
 
 " At the formation of other mining companies in accordance with Par. 5 of the Con- 
 cession dated 1st June 1899 and Article 2, ad. 9 of these Rules, the aforesaid original sub-
 
 256 CHINA TREATIES AND AGREEMENTS 
 
 scribers are entitled to participate, proportionately to their share of capital in the Schantung 
 Bergbau Gesellschaft, as original subscribers in raising of the share capital of each of 
 those companies up to one half, by taking over the shares at par, plus the proportionate 
 foundation costs. The original subscribers of the share capital of those companies shall 
 receive one bonus share on every one share subscribed. On these bonus shares a share of 
 the profits shall be distributed in the same ratio in vv^hich the proprietors of the bonus 
 shares of the Schantung Bergbau Gesellschaft participate according to Art. 18. 
 
 " Art. 14. — By resolution of the General Meeting and with approval of the controlling 
 authorities, the Company is authorised to issue debentures payable to bearer. 
 
 " The nominal value of the debentures, the rate of interest, the conditions of recall and 
 repayment shall be fixed and made public in every instance by the Supervisory Committee 
 with approval of the controlling authorities. The recall of the debenture requires the 
 approval of the Supervisory Committee. 
 
 "Art. 15. — ^^'hen shares or other documents issued in accordance with the regulations 
 of Art. 10, 11, 13 and 14 have become damaged or otherwise unserviceable, but preserved 
 in their essential parts to such an extent as to admit no doubts as to their genuineness, 
 then the Board of Directors is authorised to draw up and hand out new equivalent docu- 
 ments in exchange for the damaged documents, costs to be borne by the owner. 
 
 ■' Excepting this contingency, new documents may be prepared and delivered in place 
 of those damaged or lost only after judicial invalidation of the latter. 
 
 "Dividend coupons are not cancelled judicially: they become invalid, unless collected 
 within four years, counted from the 31st ^larch of that year in which they have become 
 due, the respective dividends revert to the Company. To such one, however, who gives 
 notice to the Board of Directors of the loss of dividend coupons before expiry of the 
 said term of four years, and who proves their former possession by production of the 
 share certificates or otherwise in a reliable way, the amount due on such coupons (given 
 notice of and not yet presented) shall be paid against receipt after lapse of the said term. 
 
 " No judicial declaration of invalidity shall take place as well for damaged or lost 
 renewal slips. 
 
 " When the owner of a share before the issue of new dividend coupons protests against 
 the delivery thereof to the presenter of the renewal slips and this presenter however insists 
 upon delivery the dispute shall be carried to Court for a decision, the new series of divi- 
 dend coupons shall be withheld until the case has been decided. 
 
 " When a renewal slip has been lost, the dividend coupons shall be delivered against 
 receipt to the owner of the respective share after expiry of the date set for payment of 
 the third of those dividend coupons which should have been received against delivery of 
 the renewal slip. The possession of the respective renewal slip does in this case not entitle 
 to the receipt of the dividend coupons. 
 
 " Art. 16. — By subscription or purchase of shares, interim certificates and bonus shares. 
 the members submit to the jurisdiction of the competent lower Court for commercial mat- 
 ters in Berlin for all disputes arising betw^een the Company and themselves in consequence 
 of their business relation. (Par. 1). 
 
 "III. — FiN.'\NciAL St.atemext, Ascert.\ining and Disposal of the Proceeds, Reserve Fund. 
 
 "Art. 17. — The business year begins on 1st April and ends on 31st IMarch of the fol- 
 lowing year. The first business vear in accordance with these rules ends on 31st March 
 1900. 
 
 "The financial statement shall be drawn up by the Board of Directors as for 31st March 
 for the business year last passed. It shall be presented to the General Meeting annually 
 not later than 36th September together with the Profit and Loss Account and with a 
 report of the Board of Directors showing the property and the situation of the Company, 
 and also with the audit to be brought in by the Supervisory Committee. 
 
 " It is understood that net profits mean, profits in hand after the writing ofif on the 
 property has taken place to such an extent as the case may require. 
 
 " Five per centum per annum interest may be debited to Development Account during 
 the development period, but not beyond the business year 1903/4; possible working profits 
 during the development period shall however in this case be credited to Development 
 Account. The Development Account shall also be debited by the remuneration due to the 
 Supervisory Committee in accordance with the conditions of Art. 46. 
 
 " The approval of the financial statement is reserved to the General Meeting. By 
 giving the approval, the executive bodies of the Company are discharged regarding their 
 management during the respective }-ear. 
 
 " Art. 18. — On proposal of the Supervisory Committee the General Meeting decides on 
 the amount of net profit resulting from the financial statement. 
 
 " Of the sum to be calculcated on not less than 5% and no more than 15% have to go 
 to the Reserve Fund. 
 
 " Of the remaining sum a dividend of 5% on the paid-up share capital shall be allowed 
 to the members of the Company.
 
 NUMBER 1900/4: MARCH 21, 1900: NOTE . 257 
 
 " The balance shall be distributed as follows : 
 SiVs per centum to the bonus shares 
 
 66% per centum on the paid-up share capital as super-dividend, 
 after having deducted as well 109o for the Supervisory Committee and the contribution 
 to the Government provided for in Par. 8 of the instrument of Concession of 1st June 1899. 
 
 " The General Meeting may not pass a higher amount as net profit to the members of 
 the Company nor a lower contribution to the Reserve Fund than proposed by the Super- 
 visory Committee. Within four weeks after the resolution of the General Meeting the 
 members of the Company will receive the dividend due to them, and the owners of the 
 bonus shares their share of profit, and also the contribution to the Government provided 
 for in Par. 8 of the instrument of Concession of 1st June 1899 has to be paid. 
 
 ■' In the event of the dividend to the members and the share of profit to the owners of the 
 bonus shares being paid in Francs or Pounds Sterling, the amount of the dividend or of 
 the share of profit due in IMarks shall be calculated at the rate of 81. — Marks = 100 
 Francs and 20.40 Marks = 1 Pound Sterling. 
 
 " Art. 19. — The Reserve Fund serves to cover extraordinary expenses or losses. Its dis- 
 position is decided on by the Supervisory Committee. 
 
 " After the Reserve Fund will have reached 15% of the share capital, further contribu- 
 tions thereto shall cease. Upon proposal of the Supervisory Committee, however, the 
 General Meeting may resolve a further increase of the Reserve Fund, if extraordinary cir- 
 cumstances occur. In the event of payments out of the Reserve Fund, further contributions 
 have to be made thereto until it reaches again the amount fixed. 
 
 " IV. — Administration. 
 "a) Board of Directors. 
 
 " Art. 20. — The Board represents the Company and acts on its behalf in all legal and 
 other aftairs including those requiring a special power of attorney by law. The Board is 
 independent in question of administration, save in those for which by these rules cooperation 
 of the General Meeting or Supervisory Committee is required. In transacting affairs the 
 Board is bound to follow the instruction given by the Supervisory Committee or such of its 
 members as have been delegated by it. This restriction, however, has no legal effect toward 
 third parties. 
 
 " Art. 21. — The Board of Directors consists of two or more Directors, appointed upon 
 conditions settled by the Supervisory Committee. 
 
 " The Supervisory Committee regulates the distribution of business amongst the Di- 
 rectors, their relations to each other, as well as the rules for their joint deliberations and 
 resolutions. It nominates substitutes if required and may appoint from its midst a member 
 as substitute. Such substitute shall not act on the Supervisory Committee while cooperating 
 with the Board of Directors. 
 
 " Art. 22. — By resolution of the Supervisory Committee Directors may temporarily be 
 ordered to China for inspection of the administration there and other purposes. 
 
 " Art. 23. — Documents and declarations of the Board are binding on the Company, if 
 they are signed under the name of ' Schantung Bergbau Gesellschaft ' by two Directors 
 or by one Director and one Acting Director (substitute) or by two Acting Directors (sub- 
 stitutes) or by one Director or Acting Director (substitute) and by one officer of the 
 Company authorised by the Supervisory Committee to sign conjointly. 
 
 " Art. 24. — The nomination of Directors, of their substitutes (Acting Directors) and the 
 officers of the Company authorised to sign documents conjointly, shall be recorded notarially 
 and made public. The record serves as legitimation. 
 
 " b) Supervisory Committee. 
 
 " Art. 25. — The Supervisory Committee consists of not less than 12 but not more than 
 25 members to be elected by the General Meeting from the number of the shareholders. 
 At least five members of this Committee shall reside in Berlin and including those at least 
 three quarters of all members at the time shall be German subjects residing in the Ger- 
 man Empire. 
 
 " As a rule the election shall take place at the ordinary General Meeting for a term up 
 to the fourth ordinary meeting following. 
 
 " Every year at least three members resign in as regular succession as possible and 
 are replaced by new elections. Until a rotation has been formed for the resignations, they 
 shall be decided by lots. The resigning members are re-eligible. If a member retires in 
 the meantime, the remaining members are authorised to elect a substitute with validity till 
 the next ordinary General Meeting. The final election of a substitute will be done by the 
 General Meeting holding good for the unexpired term of the resigning members. 
 
 "If an election of members to the Committee should have taken place in an extraor- 
 dinary General Meeting, the time from the date of the latter to the next ordinary General 
 Meeting shall count as a full year, as far as the term of office of those elected is concerned.
 
 258 CHINA TREATIES AND AGREEMENTS 
 
 "As long as the number of the members of the Supervisory Committee remains twelve 
 or more both a new election and a replacement may be dispensed with. 
 
 " The elections for the Supervisory Committee shall be recorded before a notary. 
 
 " Art. 26. — The Supervisory Committee elects a president and a vice-president immedi- 
 ately after every General Meeting in a session, at which the members present meet without 
 being specially called. The president shall be a German subject residing in Berlin. 
 
 " The president shall convene the Committee as often as business requires, stating at 
 the same time the agenda for the meeting. A meeting has to be called in within a fort- 
 night if applied for in writing by at least three members of the Committee or by the 
 Board of Directors. 
 
 ■' The Supervisory Committee forms a quorum when not less than half of its members 
 are present. All its members have equal votes. Resolutions are passed by a majority of 
 votes. Votes being equal the president shall have a casting vote. 
 
 " The Committee may give a valid decision on a matter not enumierated in the agenda, 
 if the decision is approved by every member present.^ At the request of the president the 
 Supervisory Committee may pass resolutions by written voting without a meeting being 
 called; such resolutions only to be valid however if passed unanimously by all its members. 
 
 " In this case the taking of the votes of single members may be omitted, when and 
 as long as they are living outside the German Empire. 
 
 "If at an election by the Supervisory Committee, no absolute majority of votes is 
 obtained for one of the candidates in the first ballot, then a second ballot shall take place 
 among those two persons, who have received the highest number of votes. If each then 
 obtains an even number of votes, lots will be drawn for a decision. 
 
 " Art. 27. — The Supervisory Committee decides on its order of business. 
 
 " Art. 28. — The members of the Supervisory Committee draw no salaries, but they receive 
 reimbursement of the outlays resulting from the execution of their duty and a share of 
 profit or a bonus according to Par. 18 of these rules. The distribution of the share of 
 profit or of the bonus to the members takes place in accordance with regulations to be 
 decided upon by the Supervisory Committee. 
 
 " Art 29. — All declarations of the Supervisory Committee are legally executed if they 
 are done under the style * Der Verwaltungsrat der Schantung-Bergbau-Gesellschaft ' with the 
 signature of the names of the president — or the vice-president as the case may be — and 
 one of the members of the Committee. The Supervisory Committee is legitimated by a 
 notarial certificate of election giving the names of its members at the time and also of 
 its president and vice-president. 
 
 " Art. 30. — Besides the general supervision of the management through the Board of 
 Directors and other powers given to the Supervisory Committee by these rules this Com- 
 mittee may particularly decide : 
 
 1) on the principles according to which landed property shall be acquired, made use 
 of, and realised, 
 
 2) on the principles according to which mining and other industrial enterprises shall 
 be carried on, 
 
 3) on the establishment of branch undertakings, 
 
 4) on the appointment of the higher officers of the Company in China, and also of 
 those officers receiving an annual salary of more than 5000 Marks or taken on for 
 more than three years and on the contracts to be closed with them and also on 
 their dismissal, 
 
 5) on the administration in China, more particularly on the regulations made with 
 respect to financial matters and accounting, 
 
 6) on the budget of income and expenditure of the Company to be drawn up annually, 
 
 7) on contracts, if the object exceeds 30,000 Marks or if obligations are imposed on 
 the Company, for a term exceeding three years, 
 
 8) pn the principles for the drawing up of the annual financial statement, as well as 
 its presentation to the General Meeting and proposals regarding the use and dis- 
 tribution of profit balances, 
 
 9) on other matters to be brought before the General Meeting, 
 
 10) on the discharge to be granted annually to the administration in China, 
 
 11) on the delegation of one or more members of the Committee for certain commis- 
 sions, more particularly for examination of the books and of cash in hand kept 
 by the Board of Directors and for examination of the annual financial statement, 
 
 12) on the appointment of one or more special committees from among the members 
 of the Committee and the transfer of special business affairs or classes of such to 
 these special committees by special powers of attorney. 
 
 "Art. 31. — Of the transactions and resolutions of the Supervisory Committee minutes 
 shall be written and signed by the participating members. 
 
 " c) General Meeting. 
 " Art. 32. — The General Meeting, properly constituted, represents the total of the Com- 
 pany's members.
 
 NUMBER 1900/4: MARCH 21, 1900: NOTE 259 
 
 " Its resolutions and elections are binding on all members. 
 
 " Art. 33. — The General Meetings are to be held in Berlin. To these the Board of Di- 
 rectors or the Supervisory Committee shall call the members at least fourteen days before 
 the fixed date, the latter not included, by notice stating the busmess to be transacted. 
 
 " There may be represented : commercial firms by employees authorised by legal notifica- 
 tion to sign per procuration; wives by their husbands; widows by their sons, if of 
 age ; minors or the persons otherwise under guardianship by their guardians or curators ; 
 corporations, institutes, limited liability companies by one of the Directors or a person 
 authorised to sign per procuration. In all other cases a member may only be represented 
 by another member taking part in the General Meeting by virtue of a written proxy. 
 Proxies are to be submitted to the examination of the Board of Directors at latest on 
 the day before the meeting and the Board may require an official or other satisfactory 
 authentication of signatures. 
 
 " Art. 34. — At the General Meeting each share entitles to one vote. Voting can be 
 exercised only by those members who have deposited their shares against receipts not less 
 than five days before the date of the General Meeting with the Board of Directors or at 
 such place as the Board may have designated in the notice, and leave them there till the 
 end of the General Meeting. 
 
 " Art. 35. — At the General Meeting the chair shall be taken by the president of the 
 Supervisory Committee or, in case of his being prevented, by the vice-president, or if he 
 also either can not or will not do so, by another one of the members present of the Com- 
 mittee, of whom always the senior in age shall have precedence to take the chair. The 
 chairman conducts the discussion, fixes the succession of the items on the agenda as well 
 as the modus of voting, and appoints the scrutineers, when necessary. 
 
 " Without prejudice to the regulation in Art. 37, positions 3 and 4, the General Meeting 
 shall only discuss and pass resolutions on items, which have been placed on the agenda at 
 the time of calling it. 
 
 " Members, entitled to hold between them at least the tenth part of the total votes pos- 
 sible at a General Meeting may apply in a request, signed by them, that matters, being 
 within the competency of General Meetings, be announced for resolution at the next meet- 
 ing. The convener is then bound to place such matters on the agenda of the next General 
 Meeting. 
 
 "If the request is however made after the General Meeting has already been called such 
 suggestions to amplify the agenda must be in the hands of the Board of Directors not 
 less than ten days prior to the day of the meeting. 
 
 " When this is the case, these matters are to be appointed on the agenda of the Gen- 
 eral Meeting convened, and this shall be notified not less than six days before the day 
 of the meeting. 
 
 " Art. 36. — An ordinary General Meeting shall annually take place before the end of the 
 month of September. 
 
 " An extraordinary General Meeting shall be convened : 
 
 1) if a resolution to that effect has been passed by a General Meeting (Art. 38), 
 
 2) if members, who are entitled to hold between them the fourth part of the total 
 number of votes, require the convening and hand to the Board of Directors in 
 writing a motion the object of which lies within the competency of the General 
 Meeting. 
 
 3) if a resolution has to be passed with reference to the dissolution of the Company 
 or its amalgamation with another Company or the alteration of its legal form, 
 
 4) if the Supervisory Committee decided on its convening for any other special cause. 
 " Art. 37. — At the ordinary General Meeting the financial statement with the profit and 
 
 loss account for the past business year as well as the reports rendered by the Board of 
 Directors and the Supervisory Committee shall be brought forward for information and 
 discussion, and the resolution as to the approval of the financial statement and also as to 
 the discharge of the administration, shall be passed. Afterwards the necessary elections 
 (Art. 25) shall take place. 
 
 " The financial statement with the profit and loss account and the reports of the Board 
 of Directors and of the Supervisory Committee shall be open for inspection of every mem- 
 ber during two weeks preceding the meeting on such business premises in Berlin as are 
 announced at the time of convening the meeting. 
 
 " The General Meeting is authorised to appoint a committee of revision, if the accounts 
 are not passed forthwith. 
 
 " It is authorized to pass resolution on the enforcement of the responsibility to the Com- 
 pany of the members of the Board of Directors and of the Supervisory Committee and 
 on the measures to be taken for this purpose, and to appoint attorneys for the execu- 
 tion of same. 
 
 " In addition the ordinary General Meeting is entitled to pass resolutions on every pro- 
 posal, which is not assigned to the extraordinary General Meeting in conformity with Art. 
 36, No. 3, more particularly : 
 
 a) on the issue of further shares,
 
 260 CHINA TREATIES AND AGREEMENTS 
 
 b) on the raising of loans, 
 
 c) on alterations and additions to the rules, more particularly alterations and ampli- 
 fications of the objects of the Company. 
 
 "Art. 38. — Resolutions on matters denoted in Art. 36 under No. 3 are only binding, if 
 at least three quarters of the shares are represented at the meeting. If this is not the 
 case, an extraordinary General Meeting may be convened for the same purpose within the 
 following six weeks, at which meeting a binding resolution may be passed, even if less than 
 three quarters of the shares are represented. Besides, it is necessary for the validity of 
 such a resolution that it be passed by a majority of not less than two thirds of the votes 
 represented at the meeting. 
 
 " Alterations and additions to these rules (Art. 2>7, c) may be passed only by a majority 
 of not less than two thirds of the votes represented at the meeting. 
 
 ■■ Excepting these regulations, resolutions of the General Meeting are to be passed by 
 absolute majority. With even votes the resolution shall be considered lost. 
 
 " If at elections, objection is raised against any other modus proposed, the voting has to 
 be done by handing in ballot-papers and an absolute majority is necessary for election. 
 If an absolute majority is not attained at the first voting, the further voting is limited to 
 those two members who have received most of the votes. When votes are even, lots will 
 be drawn. 
 
 " The minutes of the General Meeting shall be written by a notary, and shall be signed 
 by the chairman and the scrutineers, if such have been appointed. The results only of the 
 discussions shall be embodied therein. The naming of every individual member present 
 is not required, but a list, signed by the chairman, of the members present or represented 
 with a statement of the number of their votes shall be attached to the minutes of the 
 meeting. 
 
 " A certificate of the elections by the notary writing the minutes serves as legitimation to 
 those elected. 
 
 "Art. 39. — The redemption of the bonus shares (Art, 13) requires an alteration of the 
 rules. All proprietors of bonus shares are subject to an agreement as to their redemption, 
 if at a meeting of the proprietors, to be convened by advertisement (Art. 5) stating the 
 object of the agenda, the agreement is approved by them with not less than two thirds of 
 the votes represented in the voting. At this meeting each bonus share shall be allowed 
 one vote. The Supervisory Committee shall decide on the manner of the further proceed- 
 ings at the meeting. 
 
 " V. — Dissolution. 
 
 " Art. 40. — In case of the dissolution of the Company, after payment of all debts, the 
 property, calculated in Marks, shall be divided among the members in proportion to the 
 instalments paid on the shares up to the amount of such instalments, and the surplus if 
 any, shall be divided at the rate of 50% among the members in the same proportions and 
 50% among the proprietors of the bonus shares. 
 
 " The distribution shall not take place before the expiry of one year, counted from the 
 day, on which the dissolution of the Company has been published in the ' Deutscher Reichs- 
 Anzeiger ' with an invitation to the creditors to hand in their claims. 
 
 " Until conclusion of the distribution proceedings the constitution of the Company and 
 its jurisdiction remains as heretofore. 
 
 "A partial return of the share capital to the members is subject to the same conditions 
 as the dissolution of the Company. 
 
 " VI. — Court of CoJttrol. 
 
 " Art 41. — The control of the Company is exercised by the Imperial Chancellor, who 
 may appoint one or more Commissioners for this purpose. These Commissioners are 
 entitled to take part in the meetings of the Supervisory Committee and in the General 
 Meetings and to demand at any time a report from the Supervisory Committee on the 
 business of the Company, also to inspect the books and documents of the same, and to 
 convene at the expense of the Company an extraordinary General Meeting, if a request 
 for such by members of the Company entitled thereto (Art. 36, No. 2) is not followed out 
 or if other important reasons should exist. 
 
 " Art. 42. — Subject to the approval of the controlling authorities are: 
 
 1) the raising of loans and the issue of further shares, 
 
 2) the resolutions of the Company according to which an alteration of or additions 
 to the rules shall result, or according to which the Company shall be dissolved, 
 amalgamated with another or its legal form altered. 
 
 " VII. — Transitionarv Regulations. 
 
 " Art. 43. — The total of the 60,000 shares are taken over by the founders of the Com- 
 pany as named hereafter, viz :
 
 NUMBER 1900/4: MARCH 21, 1900: NOTE 261 
 
 shares 
 
 1) by the Direction der Disconto-Gesellschaft 4000 
 
 2) by the Deutsch-Asiatische Bank 4000 
 
 3) by the Deutsche Bank 4000 
 
 4) by the Bank fiir Handel und Industrie 4000 
 
 5) by the Berhner Handelsgesellschaft 4000 
 
 6) by the Dresdener Bank 4000 
 
 7) by the Nationalbank fiir Deutschland 4000 
 
 8) by the Schaf fhausen'scher Bankverein 4000 
 
 9) by S. Bleichroeder 4000 
 
 10) by Robert Warschauer & Co 4000 
 
 11) by Born & Busse 4000 
 
 12) by Jacob S. H. Stern 4000 
 
 13) by L. Behrens & Soehne 4000 
 
 14) by the Xorddeutsche Bank in Hamburg 4000 
 
 15) by Messrs. Sal. Oppenheim jr. & Co 4000 
 
 " On the above mentioned 60,000 shares taken over by the founders 25% have been 
 paid up by them namely 50 IMarks on each share. 
 
 " Art. 44. — The first Supervisory Committee is to be elected at the constitutive General 
 Meeting in the year 1900. 
 
 " The regulations of Art. 25 of the rules shall apply to the Supervisory Committee to 
 be elected at this meeting. 
 
 " The first Supervisory Committee appoints immediately after the constitutive General 
 Meeting its president and vice-president and resolves on the constitution of the Board of 
 Directors and elects the Directors. 
 
 " All this shall be valid by the votes of members present in the foregoing General 
 Meeting, even if less than half of the members of the -Supervisory Committee have been 
 present. Absent members need not to be called or asked for a declaration as to the accept- 
 ance of their election. 
 
 "Art. 45. — The president of the Supervisory Committee and the vice-president shall be 
 authorised to petition the Imperial Chancellor for the approval of these rules and for 
 the bestowal of the privileges of incorporation provided for in Par. 9 of the Law of 15th 
 March, 1888, also to order any additions to and alterations of these rules, required by the 
 Imperial authorities with binding power upon the Company and upon all the founders 
 and original shareholders thereof. 
 
 " Art. 46. — The first ordinary General Meeting assembling in the year 1900 shall decide 
 on the remuneration which shall be granted to the Supervisory Committee up to the business 
 year 1903/1904 provided no share of profit in accordance with Art. 18 is payable before 
 that year." 
 
 The foregoing Rules of the Schantung Berghau Gesellschaft, dated October 10th, 1899, 
 remained in force until February 12th, 1913, when the General Meeting resolved to accept 
 the offer made by the Schantung Eisenbahn Gesellschaft to take over the entire mining 
 property against an issue of 5400 new Railway shares (at par), and to go into liquidation 
 forthwith, — which resolution received the sanction of the German Imperial Chancellor on 
 March 13th, 1913. 
 
 By a Decree of the German Imperial Chancellor, dated March 13th, 1913, and by virtue 
 of § 9 of the foregoing "Concession" of June 1st, 1899, approval was given to the liquida- 
 tion of the Schantung Bergbau Gesellschaft, and to the transfer of the concession for 
 mining in Shantung to the Schantung Eisenbahn Gessellschaft, on the condition that the 
 tax payable by the latter Company for dividends exceeding 5% on the capital of the Rail- 
 way Company — in accordance with § 11 of the Railway Concession granted to that Company, 
 June 1st, 1899 (annexed to No. 1900/3, ante, at page 240) — should be calculated upon the 
 entire net profits of the Railway Company, regardless whether such profits result from the 
 working of the railway and/or mines and/or from other operations undertaken by the Rail- 
 way by virtue of the Rules dated February 12th, 1913 (annexed to No. 1900/3, p. 243. ante). 
 
 In the meanwhile, the Schantung Bergbau GeseHschaft had arranged with the Chinese 
 authorities to liquidate its claim to a general privilege in respect to mining within a zone of 
 30 li along the railways in Shantung, in exchange for a concession of specific mining 
 areas, by an Agreement under date of July 24th, 1911, of which the following is a trans- 
 lation from the Chinese text : — 
 
 Agreement for Delimitation of Mining Areas in Province of Shantung. — July 24, 191 1. 
 
 " The Government of Shantung being now in accord regarding the readjustment of the 
 mining rights along the line of the railway, the substance of the agreement with the Shan- 
 tung Mining Corporation (Schantung Bergbau Gesellschaft) is embodied in the following 
 Articles :
 
 262 CHINA TREATIES AND AGREEMENTS 
 
 " Section I. 
 
 " Article I. — The Shantung Government and the Schantung Bergbau Gessellschaft con- 
 firm, as originally agreed, that the mines of Fangtzu and Tzu-ch'uan together with those 
 of Chinling-chen and Chang-tien for the space of 30 li wide shall be exclusively operated by 
 the Schantung Bergbau GeseHschaft. 
 
 '■ Article II. — The above specified mining territory of the Schantung Bergbau GeseHschaft 
 is defined on a separate map which constitutes an important integral part of this Agree- 
 ment. All mining rights within this area belong to the Schantung Bergbau GeseHschaft. 
 Chinese Mining Companies have no rights there. 
 
 "Article III. — Outside of the special rights reserved by the Schantung Bergbau GeseH- 
 schaft as specified above, the rights to mines within 30 li of the finished Shantung Railway 
 and of the unfinished Tientsin-Pukow Railway and of the recently surveyed Kiaochow- 
 Ichow Railway which were originally granted by China to the Schantung Bergbau GeseH- 
 schaft are hereby cancelled. 
 
 " Article IV. — The original purpose of the Schantung Bergbau GeseHschaft was to pre- 
 serve the right to operate mines in Po-Shan and Tzu-ch'uan within the 30-Ii belt. Now in 
 order to display a friendly spirit it is agreed that the rights in Po-Shan Hsien are re- 
 linquished ; also in Tzu-ch'uan from Ta-k'uei-shan, through Lung-K'ou-Chen towards the 
 northwest south of the oblique line through the eastern part of Tzu-ch'uan Hsien the mining 
 rights are relinquished, and restored to China. 
 
 " Article V. — The mines of Fang-tzu within the jurisdiction of Wei Hsien were formerly 
 included in the 3Q-li belt as well as Ch'ang Lo and An Ch'in Hsiens. Now the Schantung 
 Bergbau GeseHschaft, in order to show friendship, returns to China its rights to the mines 
 of Po-Shan Hsien. Also the mining rights are returned to China in Tzu-Chow south of 
 the diagonal line from Ta K'uei Shan through Lung K'ou Chen toward the north-west 
 through Tzu-Chow Hsien. 
 
 " Article VI. — The mining area map agreed upon between the Shantung Government 
 and the Schantung Bergbau GeseHschaft is issued in four sheets as follows : 
 
 (a) Mining areas in Tzu-Chow, Chin-ling Chen and Chang Tien. 
 
 (b) Mining areas on the southern boundary of Tzu-Chow. 
 
 (c) Mining areas in Wei Hsien and Ch'ang Lo Hsien. 
 
 (d) General map. 
 
 Ch'iu Hsiens which were included within the 30-/i belt, although the GeseHschaft in order 
 to show friendship has turned back to China its rights in the north-west part of An Ch'iu 
 " Article VII. — In Fang-Tzu, under the jurisdiction of Wei Hsien and in Lo-an and An 
 Hsien yet it retains its rights in Ch'ang Lo Hsien and Ta Ching Shan to a distance of 10 
 Chinese li from Fang-Tzu. 
 
 " Section II. 
 
 " Article I. — Along the line of the Shantung Railway in the regions of Chang-Ch'iu, Tzu- 
 Chow and Po-Shan Hsien, which have been relinquished by the GeseHschaft, Chinese are 
 forbidden to open mines on a large scale before the year 1920. After that date Chinese 
 officials and merchants may decide for themselves. 
 
 " .-XTticIe II. — W^ithin one month of the exchange of ratifications of this Agreement be- 
 tween the Chinese and German Governments the native mines within the railway zone shall 
 be closed. 
 
 " .Article III. — According to the Mining Regulations of the 26th Year of Kuanghsu, i.e., 
 A. D. 1900, the mining operations of the Schantung Bergbau GeseHschaft shall be specially 
 protected. 
 
 " Article IV. — If the Chinese Government or Chinese merchants wish to carry on mining 
 operations in the areas relinquished by the GeseHschaft according to this Agreement, when- 
 ever the capital is insufficient they must borrow German capital. If they require supplies 
 of machinery they must purchase German materials and if they wish to engage foreign 
 experts, they must engage Germans. 
 
 " Section HI. 
 
 " China undertakes to pay Mex. $210,000 to be expended by the Schantung Bergbau 
 GeseHschaft in surveying, in purchasing land and in meeting other necessary expenses. 
 Within one year after the signing of this Agreement this shall be paid in two instalments. 
 As soon as possible after the signing of this Agreement the Schantung Bergbau GeseHschaft 
 shall make a full report to China regarding its surveys and purchase of land, with maps 
 and observations. 
 
 " Section IV. 
 
 " In operating iron mines near Ching-ling-chen the Mining Regulations of the 26th 
 year of Kuanghsu (A. D. 1900) must be conformed to without evasion. It is, further,
 
 NUMBER 1900/5: OCTOBER 16, 1900 263 
 
 the expectation of the Chinese officials that an iron-works shall be opened near these mines, 
 the capital of which shall be subscribed by China and Germany jointly. It is stipulated 
 that the call on Chniese for capital shall be limited to about $500,000. The detailed regu- 
 lations will be drawn up when the iron works are to be opened. 
 
 " This Agreement is drawn up in both the Chinese and the German languages, both ver- 
 sions to agree in meaning, in four copies. To each are attached four sheets of mining ter- 
 ritory maps. The deputies of the two nations will mutually exchange the original copies 
 with the Supplement and sheets as proofs of the Agreement which both are to observe. 
 
 " Dated at Tsinan Fu 
 
 "July 24, 1911 (Hsuant'ung, 3rd Year, 6th Moon, 29th day). 
 
 " Signed: "Hsiao Ying-p'eng (Ch'ux?), Industrial Taotai cf Fengtien. 
 
 " Yu TsE-TA, Financial Commissioner of Shantung. 
 " * Ai-MEi-LO-Liu-HAi-ERH,' Managing Director of the Schantiing 
 
 Bergbau Gesellschaft. 
 " ' P'ei Chih-chih,' German Consul at Tsinan Fu." 
 
 NUMBER 1900/5. 
 
 GERMANY AND GREAT BRITAIN. 
 Agreement relative to China.^ — October 16, 1900. 
 
 Her Britannic Majesty's Government and the Imperial German Govern- 
 ment, being desirous to maintain their interests in China and their rights under 
 existing Treaties, have agreed to observe the following principles in regard to 
 their mutual policy in China: — 
 
 1. It is a matter of joint and permanent international interest that the 
 ports on the rivers and littoral of China should remain free and open to trade 
 and to every other legitimate form of economic activity for the nationals of all 
 countries without distinction; and the two Governments agree on their part to 
 uphold the same for all Chinese territory as far as they can exercise influence. 
 
 2. Her Britannic Majesty's Government and the Imperial German Govern- 
 ment will not, on their part, make use of the present complication to obtain for 
 themselves any territorial advantages in Chinese dominions, and will direct their 
 policy towards maintaining undiminished the territorial condition of the Chinese 
 Empire. 
 
 3. In case of another Power making use of the complications in China in 
 order to obtain under any form whatever such territorial advantages, the two 
 Contracting Parties reserve to themselves to come to a preliminary understand- 
 ing as to the eventual steps to be taken for the protection of their own interests 
 in China. 
 
 4. The two Governments will communicate this Agreement to the other 
 Powers interested, and especially to Austria-Hungary, France, Italy, Japan, 
 Russia, and the United States of America, and will invite them to accept the 
 principles recorded in it. 
 
 Ch 
 
 * Text as printed in British Treaty Scrips, 1901, No. 1. Printed also in Rockhill, p. 62 ; 
 ina, 1900, No. 5; Hertslef, p. 591 ; Recueil, p. 408. See Note to this document, post, p. 264.
 
 254 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 The replies of the several Governments to the communications provided in Article 5, 
 are herewith quoted (or translated) from Chma, 1900, No. 5:— 
 
 AUSTRIA-HUNGARY. 
 " Sir F. Plunkett to the Marquess of Salisbury. 
 
 " My Lord Vienna, October 25, 190C. 
 
 " On receipt of your Lordship's telegram of the 20th instant, I at once called upon 
 the German Ambassador in order to concert with his Excellency for communicating to the 
 Austro-Hungarian Government the Agreement respecting China which your Lordship had 
 signed with the German Ambassador in London on the 16th instant. 
 
 " Prince Eulenberg expressed much satisfaction at your Lordship having desired me 
 to concert with him for the communication of this Agreement, and my telegrams of the 
 21st and 23rd instant will have shown that, in view of the absence from Vienna of Count 
 Goluchowski, and in view of the fact of Prince Eulenberg being confined to his house 
 with a cold, we decided to communicate the Agreement to Count Szecsen through our 
 respective Secretaries of Embassy, _ 
 
 " Mr. Milbanke and Baron Romberg, therefore, went to the Foreign Department next 
 morning and made communication separately of the Agreement. 
 
 " Count Szecsen called at this Embassy and at the German Embassy the day before 
 yesterday to say that, he had informed the Emperor and Count Goluchowski of this com- 
 munication, and was authorized to state that the Austro-Hungarian Government had heard 
 with pleasure that Great Britain had come to this understanding with Germany, and ac- 
 cepted willingly the principles recorded in the Agreement which had been signed by your 
 Lordship and the German Ambassador in London. 
 
 "I have, &c. 
 
 " F. R. Pluxkett." 
 
 FRANCE. 
 Memorandum communicated by M. Canihon, Oct. 31st 1900. 
 
 " (Translation.) 
 
 " The Government of the Republic has taken note of the arrangement of October 16th, 
 between the German and English Governments, which was communicated to it by the Am- 
 bassadors of Germany and England at Paris. 
 
 " The Government of the Republic has long manifested its desire to see China opened 
 to the economic activity of the whole world : hence the emphatic adherence that it gave, 
 in the month of December last, to a proposal of the Government of the United States 
 prompted by the same preoccupation. Its feeling in that regard has not been changed. 
 
 " As to the integrity of China, the Government of the Republic is the more ready to as- 
 sert that principle, having made it, and having on several occasions declared it, the 
 basis of its policy in the crisis for which the joint efforts of the Powers are seeking to 
 find a satisfactory solution. 
 
 " The universal assent to this principle seems to the Government of the Republic a sure 
 guarantee for its being respected ; and if, contrary to all expectation, it should suffer any 
 derogation, France would take the circumstances into consideration, with a view to the 
 safeguarding of its interests and of the rights which it possesses under the Treaties. 
 
 "October 31st, 1900." 
 
 ITALY. 
 
 " M. Visconti-Venosta to Lord Currie. 
 
 " (Translation.) 
 
 "Ministry of Foreign Affairs, 
 " M. l'Ambassadeur, " Rome, October 22, 1900. 
 
 " In your note of yesterday your Excellency communicated to me, in accordance with 
 instructions received from your Government, the Agreement arrived at on the 16th instant 
 between Lord Salisbury and Count Hatzfeldt with regard to China. 
 
 " The two Contracting Governments having pledged themselves to give notice of their 
 Agreement to the Powers interested, especially to France, Italy, Japan, Austria-Hungary, 
 Russia, and the United States with an invitation to agree to the principles enunciated 
 therein, your Excellency asked me whether these principles were accepted by the Italian 
 Government.
 
 NUAIBER 1900/5: OCTOBER 16,1900: NOTE 265 
 
 ■■ Having taken His Majesty's orders, I am to-day in a position to inform your Excel- 
 lency that the Italian Government, recognizing in the Anglo-German Agreement those 
 same principles which rule their own policy in China, do not hesitate to give their adhesion 
 thereto. 
 
 " I beg you Excellency to be so good as to bring the above to the knowledge of 
 Her Majesty's Government. 
 
 " I have, &c. 
 
 " Viscounti-Venosta." 
 JAPAN. 
 "Mr. Kato to Mr. Whitehead. 
 " (Translation.) 
 
 "Department of Foreign Affairs, 
 "Sir, "Tokio, October 29, 1900. 
 
 " I have the honour to acknowledge the receipt of your note of the 24th instant, 
 in which, in obedience to instructions from the Marquess of Salisbury, Her Britannic 
 Majesty's Principal Secretary of State for Foreign Affairs, you communicated to me the 
 text of an Agreement, signed on the 16th instant by his Lordship and the German Am- 
 bassador, which reads as follows: — [See text of principal document.] 
 
 " At the same time, in further compliance with Lord Salisbury's instructions, you 
 requested me to inform you whether the Imperial Japanese Government are inclined to ac- 
 cept the principles recorded in said Agreement. 
 
 "The Imperial Government, having received assurances from the contracting Powers 
 to the effect that, in adhering to the Agreement in question, they will be placed in relation 
 to such Agreement in the same position they would have occupied if they had been a 
 signatory instead of an adhering State, do not hesitate to formally declare that they 
 adhere to the said Agreement, and accept the principles embodied therein. 
 
 " Accept, &c. 
 
 " Kato Takaaki." 
 
 RUSSIA. 
 
 " (Translation.) 
 
 " Memorandum. 
 
 " The Arrangement concluded between Germany and England does not, from our 
 viewpoint, appreciably modify the situation in China. , 
 
 " The first point of this agreement, stipulating that the ports situated on the rivers 
 and on the seacoast of China, wherever the two Governments exercise their influence, 
 remain free and open to commerce, may be favorably received by Russia, inasmuch as this 
 stipulation in no way derogates from the status quo established in China by the existing 
 Treaties. 
 
 "The second point is even more responsive to the intentions of Russia, since, from the 
 beginning of the present complications, it has been the first to set up the maintenance of 
 the integrity of the Celestial Empire as the fundamental principle of its policy in China. 
 
 " As to the third point, relative to the eventuality of any derogation from this 
 fundamental principle, the Imperial Government, referring to its Circular of August 12/25th, 
 can only renew the declaration that such an event would compel Russia to modify its atti- 
 tude in accordance with the circumstances. 
 
 " The fourth point requires no comment. 
 
 " St. Petersburg, 
 
 "October 15/28th, 1900." 
 
 UNITED STATES. 
 
 "Mr. Hay to Lord Pauncefoie. 
 
 "Department of State, Washington, 
 "Excellency, _ "October 29, 1900. 
 
 " I have the honour to acknowledge the receipt of your note of the 2.^rd October, in- 
 closing the text of an Agreement between Great Britain and Germany relating to affairs in 
 China, which was signed in London on the 16th instant by the Marquess of Salisbury and 
 the German Ambassador, on behalf of their respective Governments, and inviting the accept- 
 ance by the United States of the principles recorded in that Agreement. 
 
 " These principles are — 
 
 " * 1. It is a matter of joint and permanent international interest that the ports on the 
 rivers and littoral of China should remain free and open to trade, and to every other
 
 266 CHINA TREATIES AND AGREEMENTS 
 
 legitimate form of economic activity for the nationals of all countries without distinction, 
 and the two Governments agree on their part to uphold the same for all Chinese territory 
 so far as they can exercise influence. 
 
 "'2. Her Britannic Majesty's Government and the Imperial German Government will 
 not on their part make use of the present complication to obtain for themselves any ter- 
 ritorial advantages in Chinese dominions, and will direct their policy towards maintaining 
 undiminished the territorial condition of the Chinese Empire.' 
 
 " The United States have heretofore made known their adoption of both these prin- 
 ciples. During the last year this Government invited the Powers interested in China to join 
 in an expression of views and purposes in the direction of impartial trade with that 
 country, and received satisfactory assurances to that effect from all of them. [See No. 
 1900/2, atite. Ci. also China, No. 2 {1900): "Correspondence with the United States Gov- 
 ernment respecting Foreign Trade in China (the Policy of the 'Open Door.') "] When the 
 recent troubles were at their height, this Government, on the 3rd July, once more made an 
 announcement of its policy regarding impartial trade and the integrity of the Chinese 
 Empire, and had the gratification of learning that all the Powers held similar views. And 
 since that time the most gratifying harmony has existed among all the nations concerned 
 as to the ends to be pursued, and there has been little divergence of opinion as to the 
 details of the course to be followed. 
 
 " It is therefore with much satisfaction that the President directs me to inform you 
 of the full sympathy of this Government with those of Her Britannic Majesty and the 
 German Emperor in the principles set forth in the clauses of the Agreement above cited. 
 
 " The third clause of the Agreement provides — 
 
 "'3. In case of another Power making use of the complications in China in order to 
 obtain, under any form whatever, such territorial advantages, the two Contracting Parties 
 reserve to themselves to come to a preliminary understanding as to the eventual steps to be 
 taken for the protection of their own interests in China.' 
 
 " As this clause refers to a reciprocal arrangement between the two High Contracting 
 Powers, the Government of the United States does not regard itself as called upon to ex- 
 press an opinion in respect to it. 
 
 " I have, &c., 
 
 "John Hay." 
 
 In connection with this agreement, see also the understanding between the British 
 and German banking groups in regard to railway interests in China, as set forth in the 
 following transcript from China, 1899, No. i, p. 211 : 
 
 Anglo-German Bankers' Arrangement regarding Spheres of Interest in Railway Con- 
 struction. — September 2, 1898. 
 
 "Hongkong and Shanghai Banking Corporation to Foreign Office. — (Received September j.) 
 
 ■■ 31, Lombard Street, London, 
 " September 3, 1898. 
 "Dear :\Ir. Bertie, 
 
 " As requested I now beg to hand you a copy of the Alinutes of the meetings held be- 
 tween M. von Hansemann and ourselves. 
 
 " In case it may interest you, I also enclose copy of the telegram I have sent to our 
 people in the East regarding our arrangement with Germany. 
 " I remain, &c. 
 
 : s : EwEN Cameron. 
 
 " Inclosure 1 
 
 "Minutes of IMeetings held at New Court, St. Swithen's Lane, London, on the 1st and 2nd 
 
 September, 1898. 
 
 " Present : 
 
 "Representing the German Syndicate — 
 
 " M. A. von Hansemann. 
 "Representing the British and Chinese Corporation (Limited) — 
 
 " Mr. \V. Keswick. 
 " Representing the Hongkong and Shanghai Banking Corporation — 
 
 " Mr. Ewen Cameron. 
 
 " Mr. Julius Brussel. 
 
 " M. yoN Hansemann proposed the following, viz.: — 
 
 " ' It is desirable for the British and German Governments to agree about the sphere of 
 mterest of the two countries regarding the railway constructions in China, and to mutually 
 support the interest of either country.'
 
 NUMBER 1900/6: OCTOBER 26, 1900 267 
 
 " This proposal was agreed to. 
 
 "The following proposal of M. von Hansemann regarding the British and German 
 spheres of interest for applications for Railway Concessions in China, viz. : 
 
 "'1. British sphere of interest, viz.: 
 
 " ' The Yangtsze Valley subject to the connection of the Shantung lines to the Yang- 
 tsze at Chinkiang; the provinces south of the Yangtsze; the Province of Shansi with 
 connection to the Peking-Hankow line at a point south of Chengting and a connecting line 
 to the Yangtsze Valley, crossing the Hoangho Valley. 
 
 "'2. German sphere of interest, viz.: 
 
 " ' The Province of Shantung and the Hoangho Valley with connection to Tien-tsin 
 and Chengting, or other point of the Peking-Hankow line, in the south with connection to 
 the Yangtzse at Chinkiang or Nanking. The Hoangho Valley is understood to be subject 
 to the connecting lines in Shansi forming part of the British sphere of interest, and to the 
 connecting line to the Yangtsze Valley, also belonging to the said sphere of interest.' 
 
 " Was agreed to, with the following alterations, viz. : — 
 
 " ' The line from Tien-tsin to Tsinan, or to another point on the northern frontier of 
 the Province of Shantung, and the line from the southern point of the Province of Shantung 
 to Chinkiang to be constructed by the Anglo-German Syndicate (meaning the German 
 Syndicate on the one part, and the Hongkong and Shanghai Banking Corporation and the 
 British and Chinese Corporation (Limited) on the other part), in the following manner, 
 viz. : — 
 
 "'1. The capital for both lines to be raised jointly. 
 
 "'2. The line from Tien-tsin to Tsinan, or to another point on the northern frontier 
 of the Province of Shantung, to be built and equipped and worked by the German group. 
 
 " ' 3. The line from the southern point of the Province of Shantung to Chinkiang to 
 be built and equipped and worked by the English group. 
 
 "'4. On completion, the lines to be worked for joint account.' 
 
 " So far the Minutes of the proceedings of the meetings, and it is further agreed upon 
 that neither the German group nor the English group will be bound to construct the lines 
 assigned to their sphere unless the Shantung lines be constructed simultaneously. 
 
 " London, September 2, 1898. 
 
 " Approved and signed by— 
 
 " A. VON H.\NSEMANN, 
 
 " W. Keswick, 
 " EwEN Cameron, 
 " Julius Brussel. 
 
 " P.S. — Wherever the term 'Valley' is used it means ' Flussgebiet,' the signification of which 
 is the districts through which streams flow into the Yangtsze or Hoangho. 
 
 " (initialed) A. von H. 
 W. K. 
 E. C. 
 J. B." 
 
 NUMBER 1900/6. 
 
 DENMARK (Great Northern Telegraph Company), GREAT BRITAIN (East- 
 ern Extension, Australasia and China Telegraph Company) AND CHIN/\. 
 
 Agreement in regard to the land telegraph lines between Taku and Peking* — 
 
 October 26, 1900. 
 
 Whereas the Administration is desirous of restoring their telegraph lines 
 between Taku and Peking, and of reopening their stations of Tien-tsin and 
 
 * Text as printed in Recueil, p. 412. 
 
 In connection with this agreement see the telegraph convention among the same parties, 
 July 11, 1896 (No. 1896/3, ante) ; see also the agreements of the Chinese Telegraph Adminis- 
 tration with the Great Northern, and with the Eastern Extension, October 22, 1902 (No. 
 1902/10, post).
 
 268 CHINA TREATIES AND AGREEMENTS 
 
 Peking, and whereas the Companies are wilHng to assist the Administration in 
 this matter, the following stipulations have been agreed on, and under date 
 below given, signed by the Administration represented by its Director-General 
 Sheng-hsuen-huai, and by the Great Northern Telegraph Company, Limited, 
 of Copenhagen represented by its acting co-managers in China, Mr. Julius V. 
 Petersen and Mr. K. Suenson, and by the Eastern Extension, Australasia 
 and China Telegraph Company Limited, represented by Mr. William Bul- 
 lard, all three parties duly furnished with full and special powers for this 
 purpose. 
 
 Article L — The Companies undertake to use their influence with their re- 
 spective Governments to obtain from the allies permission for the Administra- 
 tion to reerect the landlines between Taku and Peking, and to reopen public 
 stations at Tien-tsin and Peking, on condition that the Companies shall have 
 the absolute control of the working of the above-named landlines, and of the 
 stations at Taku, Tien-tsin and Peking. 
 
 Article IL — For the purpose, stated in Article I, the Companies shall have 
 the right to appoint an agent at Tien-tsin and at Peking who shall have com- 
 plete control of the entire Chinese stafif, the working of the lines, and the 
 management of the stations. 
 
 The Companies shall further have the right to appoint such other foreigners 
 as they deem necessary to ensure efficient control. 
 
 At Taku the above-named lines shall be worked from the present cable 
 station. 
 
 Article IIL — The Administration shall provide accountants at Tien-tsin 
 and Peking who shall be responsible to the Administration for all monies received 
 for telegrams. 
 
 At the Taku station the Companies will receive all monies for all telegrams 
 and will pay the same to the Administration. 
 
 Article IV. — The Administration undertakes to pay all expenses incurred 
 in connection with the establishment and working of the said lines and stations, 
 and further to reimburse to the Companies all expenses in connection with the 
 Europeans stationed at the afore-named places by the Companies. 
 
 Article V. — This Agreement shall continue in force until the majority of 
 the foreign troops shall have been withdrawn, and peace and the normal state 
 of afifairs in the North of China shall have been reestablished, when the Peking 
 and Tien-tsin stations will be handed over to the Administration for their own 
 management. 
 
 In witness whereof the undersigned, duly authorized, have signed the 
 present Agreement. 
 
 Done at Shang-hai in the Chinese language and in the English language. 
 Three expeditions duly compared and found to be in agreement have been 
 signed in both languages on the twenty-sixth day of the month of October, 
 nineteen hundred, corresponding with the fourth day of the ninth moon of the 
 twenty-sixth year of the reign of Kwang-hsu. 
 
 (L. S.) For the Imperial Chinese Administration — the Director-General 
 (Signed) : Sheng-hsuen-huai.
 
 NUMBER 1901/1 : APRIL 23, 1901 269 
 
 (L. S.) For the Great Northern Telegraph Company Limited of Copen- 
 hagen — the acting co-managers in China, Kay Suenson, Julius V. Petersen. 
 
 (L. S.) For the Eastern Extension, Australasia and China Telegraph Com- 
 pany Limited — (Signed) : W. Bullard. 
 
 NUMBER 1901/1. 
 
 GREAT BRITAIN (The British Government, and the Eastern Extension, 
 Australasia and China Telegraph Company) 
 
 Agreement for the Provision of a Submarine Cable between Chefoo and Wei- 
 
 haiwei.*— April 23, 1901. 
 
 Agreement made the 23rd day of April, 1901, between Henry Torrens An- 
 struther, Esq., and Ailwyn Edward Fellowes, Esq. (commonly called the 
 Honourable Ailwyn Edward Fellowes), two of the Lords Commissioners of 
 His Majesty's Treasury, for and on behalf of His Majesty's Government 
 of the one part, and the Eastern Extension Australasia and China Tele- 
 graph Company, Limited (hereinafter called "the Company "), of the other 
 part. 
 
 1. — Whereas His Majesty's Government, being desirous that a telegraph 
 cable should be laid with all possible dispatch connecting Shanghai with Wei- 
 haiwei and Taku, applied to the Company to lay such cable for the account and 
 at the cost of His Majesty's Government, and negotiations have been proceed- 
 ing as to the terms upon which such cable should be laid ; 
 
 2. — And whereas since the said negotiations were entered on the Imperial 
 Chinese Telegraph Administration (hereinafter called "the Administration") 
 applied to the Company and to the Great Northern Telegraph Company of 
 Copenhagen (a Danish Company working in connection with the Company here- 
 inafter called the Great Northern Company) to lay a cable for the Administration 
 from Shanghai to Chefoo and Taku ; and the Company, with the approval of 
 His Majesty's Government, entered into negotiations with the Administration with 
 regard to the laying of such a cable ; 
 
 3. — And whereas the said negotiations with the Administration resulted in 
 the following basis of Agreement, the terms of which have since been embodied 
 in two formal Agreements duly executed between the Administration of the 
 one part and the Great Northern Company and the Company of the other 
 part, which Agreements bear date respectively the 4th day of August and the 
 27th day of October, 1900:— 
 
 (a) The Company and the Great Northern Company are to provide and 
 
 ♦Text as printed in Hertslet, p. 1174. See Note to this document, post, p. 273.
 
 270 CHINA TREATIES AND AGREEMENTS 
 
 lay, for Chinese account, a cable between Taku and Shanghai, connecting Chefoo 
 en route; with the right to lay branch cables from Chefoo to Weihaiwei, Port 
 Arthur, and Kiao-chau to meet the requirements of the British, Russian, and 
 German Governments. 
 
 (b) For the Taku-Chefoo-Shanghai Cable the Administration is to pay the 
 Companies 210,000/. by instalments spread over thirty years, together with inter- 
 est on the outstanding balance at the rate of 5 per cent, per annum ; with power 
 to the Administration at the end of twenty-five years, but not before, to 
 pay off the balance then remaining due. Until the whole of the money is 
 paid the cables are to be mortgaged to the Companies ; and as additional 
 security, the Companies are to have a lien on the balances payable by the 
 Companies to the Administration under the Joint Purse Agreement of July, 
 1896.t 
 
 (c) The Companies are to work and maintain at the expense of the 
 Administration the Taku-Chefoo-Shanghai Cable, and to provide a steamer at a 
 fixed daily cost when required for repairs or renewals together with cable 
 required. 
 
 (d) All existing Agreements and Concessions between the Administration 
 and the Companies, or either of them, are to be extended, and shall continue in 
 force until the 31st day of December, 1930; 
 
 4, — And whereas the Joint Purse Agreement of July, 1896, referred to in 
 the said basis of Agreement, is an Agreement, dated the 11th day of July, 1896, 
 made between the Administration of the one part and the Great Northern Com- 
 pany and the Company of the other part, whereby certain arrangements were 
 come to as to the transmission of telegraphic trafific to and from China, and 
 to and from certain places in China, and as to sharing the profits arising from 
 such traffic, and as to matters connected therewith ; 
 
 5. — And whereas an Agreement, dated the 13th day of May, 1897, % was 
 entered into between the Administration on the one part and the Great Northern 
 Company on the other part relating to telegraphic traffic in and to and from 
 China, and by a further Agreement, dated the 6th day of March, 1899, made 
 between the same parties, which Agreement and further Agreement were duly 
 confirmed by the Governments of China, Russia, and Denmark, there was added 
 to the said Agreement of the 13th day of May, 1897, the following additional 
 Article : — 
 
 " That in the interest of both parties to the Agreement, dated the 13th May, 
 1897, and for the same term of years, that is till the 31st December, 1910, no 
 other party will be allowed without the consent of both the said parties to land 
 telegraph cables on the coast of China and islands belonging thereto, or to work 
 such cables in connection with the Chinese lines, or otherwise to establish tele- 
 graph connections which might create competition with or injure the interests 
 of the existing lines belonging to China or to the Great Northern Telegraph 
 Company of Copenhagen. This shall, however, not prevent the Chinese Gov- 
 ernment from establishing local internal cables where no competition can arise, 
 nor from consenting to the junction by cable of Port Arthur with the Russian 
 
 t No. 1896/3, ante. t No. 1897/3, ante.
 
 NUMBER 1901/1 : APRIL 23, 1901 271 
 
 telegraph system for the exchange of Hmitrophe local traffic, neither shall it pre- 
 vent the transmission of terminal Formosa traffic over the Foochow-Formosa 
 Cable now belonging to Japan, whilst other traffic must not be exchanged by this 
 line except with the consent of China and of the Great Northern Telegraph 
 Company of Copenhagen " ; 
 
 6.— And whereas the said Agreements of the 11th July, 1896, 13th May, 
 1897, and 6th March, 1899, are the principal Agreements referred to in the 
 said basis of Agreement as " all existing Agreements and Concessions," thereby 
 agreed to be extended until the 31st day of December, 1930, and such Agree- 
 ments and Concessions by virtue of the Joint Purse Arrangements subsisting 
 between the Company and the Great Northern Company enure for the benefit 
 of both the said Companies ; 
 
 7. — And whereas the Company has already laid an efficient telegraph cable 
 (hereinafter called " The Chefoo-Weihaiwei Cable ") from Chefoo to a point 
 on the Island of Liu-kung-tau, selected by the military authorities at Weihaiwei, 
 and has at such last-mentioned point constructed and established a station for 
 the purpose of working such cable, and has provided such station with a sufficient 
 British staff and all needful instruments and appliances, and has connected the 
 same with the station at Chefoo from which the Taku-Chefoo-Shanghai Cable 
 will be worked. 
 
 8. — And whereas the Company has also laid the Taku-Chefoo-Shanghai 
 Cable : 
 
 Now it is hereby mutually agreed and declared as follows : — 
 
 1. — The Company will carry out, or will procure to be carried out, the afore- 
 said Agreements of the 4th August, 1900, and 27th October, 1900, with the 
 Administration as to the working and maintenance of the Taku-Chefoo-Shanghai 
 Cable. 
 
 2. — The Company will provide and keep at the station at Chefoo from which 
 the Taku-Chefoo-Shanghai Cable will be worked, and will also provide and 
 keep at the station at the Island of Liu-kung-tau a sufficient British staff to trans- 
 mit all traffic between Weihaiwei, Chefoo, Shanghai, and Hong Kong, and 
 between Hong Kong, Shanghai, Chefoo, and Weihaiwei, and the Company under- 
 takes that all such traffic shall, as far as practicable, be transmitted throughout 
 exclusively by British staff. Any case in which such transmission by British staff 
 has been found impracticable shall at once be reported to His Majesty's Govern- 
 ment with the reason thereof. 
 
 3. — The Company will maintain the connection between the Taku-Chefoo- 
 Shanghai Cable and the Chefoo-Weihaiwei Cable and will work the Chefoo- 
 Weihaiwei Cable for account of His Majesty's Government on the terms herein- 
 after expressed so long as it may be required by His Majesty's Government 
 to do so. But the Company shall be entitled, subject to the priority and free 
 transmission of all messages on the service of His Majesty's Government, in- 
 cluding the local administration of Weihaiwei, to use such cable and the said 
 station on Liu-kung-tau for the transmission of any other messages, and all 
 receipts in respect of such last-mentioned messages, during the period that the 
 cable is worked by the Company for account of His Majesty's Government,
 
 272 CHINA TREATIES AND AGREEMENTS 
 
 shall as between His Majesty's Government and the Company belong to the 
 Company but subject to the rights of the Administration: 
 
 Provided that His Majesty's Government may at any time by three months' 
 notice to the Company under the hand of the Secretary or Assistant Secretary 
 to the Treasury, determine the working of the cable by the Company for account 
 of His Majesty's Government. 
 
 4. — If and whenever while the Chefoo-Weihaiwei Cable shall be worked by 
 the Company for account of His Majesty's Government, such cable shall require 
 to be repaired or renewed, the Company will, upon the request of Mis Majesty's 
 Government, supply a cable steamer to effect, and will therewith use its best 
 endeavours to effect, with all dispatch reasonably possible, the necessary repairs 
 or renewals, at the price of 150/. for each day or part of a day such steamer 
 shall be employed plus the cost of any cable used for such repairs or renewals, the 
 period of employment of such cable steamer to be computed from the day of her 
 leaving her port or station to the day of her return thither both inclusive, with the 
 addition of the days occupied in coaling and taking cable on board preparatory to 
 the expedition, and in discharging cable after her return to her station, provided 
 that the said daily rate of 150/. shall not be chargeable in going or returning for 
 any greater distance than from or to Hong Kong. 
 
 Provided that if the Chefoo-Weihaiwei Cable shall at any time remain out 
 of working order for a continuous period of three months His Majesty's Gov- 
 ernment may, on the expiration of such period of three months, by notice to the 
 Company under the hand of the Secretary or Assistant Secretary of the Treasury, 
 determine the working of the said cable by the Company for account of His 
 Majesty's Government immediately or on the date specified in such notice. 
 
 5. — His Majesty's Government will, out of moneys provided by Parlia- 
 ment, pay to the Company in London within three calendar months from the 
 approval of this Agreement by the House of Commons the sum of 16,000/. 
 His Majesty's Government will also pay to the Company by equal quarterly 
 payments out of moneys provided by Parliament the annual sum of 4,000/. for 
 the working of the Chefoo-Weihaiwei Cable, while the same shall be worked by 
 the Company for account of His Majesty's Government as aforesaid, and the 
 connection at Chefoo between the Chefoo-Weihaiwei Cable and the Taku- 
 Chefoo-Shanghai Cable is maintained, and for the transmission of Government 
 messages over the Chefoo-Weihaiwei Cable. 
 
 6. — In case of war, rebellion, or other emergency, His Majesty's Government 
 may take possession of the Chefoo-Weihaiwei Cable, and of the stations, offices, 
 and apparatus on such telegraph line, and may keep possession thereof for so 
 long as His Majesty's Government may think requisite, and may work such 
 telegraph line by Government servants ; and the Company shall do all in its 
 power to enable His Majesty's Government to have and enjoy the benefit and 
 advantage thereof, but no compensation shall be payable to the Company by His 
 Majesty's Government for taking and keeping possession as aforesaid. 
 
 7. — His Majesty's Government will give to the Company all needful protec- 
 tion from enemies, rebels, pirates, or other assailants during the working of the 
 Taku-Chefoo-Shanghai Cable and of the Chefoo-Weihaiwei Cable.
 
 NUMBER 1901/1 : APRIL 23, 1901 : NOTE 273 
 
 8. — His Majesty's Government shall use their best endeavours to secure 
 from the Administration the due fulfilment on their part of the hereinbefore 
 recited Agreements of the 4th August, 1900, and the 27th October, 1900, and 
 also the due observance and fulfilment by the Administration until the 31st day 
 of December, 1930, of the terms and conditions of the recited Agreements of 
 the 11th July, 1896, 13th May, 1897, and 6th March, 1899, stipulated and con- 
 firmed in manner aforesaid, so far as the same relate to the working of the 
 Taku-Chefoo-Shanghai Cable or to matters arising out of this Agreement. 
 
 9. — In the event of any difference arising between His Majesty's Govern- 
 ment and the Company regarding this Agreement or any matter or thing therein 
 contained or relating thereto, such difference shall be determined in manner 
 provided by " The Arbitration Act, 1889," or any then existing statutory modi- 
 fication thereof. 
 
 10. — This Agreement shall not be binding on His Majesty's Government 
 or the Company until it has been approved by the House of Commons. 
 
 In witness whereof the said Henry Torrens Anstruther and the said Ailwyn 
 Edward Fellowes, two of the Lords Commissioners of His Majesty's Treasury 
 acting for and on behalf of His Majesty's Government, have hereunto set their 
 hands and seals, and the Eastern Extension Australasia and China Telegraph 
 Company, Limited, have hereunto, caused their common seal to be affixed the day 
 and year first above written. 
 
 (L.S.) Ailwyn E. Fellowes. 
 (L.S.) H. T. Anstruther. 
 
 Signed, sealed, and delivered by the above-named Henry Torrens Anstruther 
 and Ailwyn Edward Fellowes in the presence of — 
 George Bull, Treasury Messenger. 
 
 (L.S.) 
 
 The Common Seal of the Eastern Extension Australasia and China Tele- 
 graph Company, Limited, was hereunto affixed in the presence of — 
 J. Denison Pender, Director. 
 F. E. Hesse, Manager and Secretary, 
 
 Note. 
 
 The following Treasury Minute, dated April 24, 1901, is appended to this document as 
 printed in Hcrtslet, loc. cit. 
 
 British Treasury Minute regarding Chefoo-Weihaiwei Telegraph Agreement. — 
 
 April 24, 1901. 
 
 " My Lords have before them an Agreement dated the 23rd .April, 1901, with the Eastern 
 Extension Telegraph Company for the construction, laying, maintenance, and working on 
 behalf of his Majesty's Government of a submarine cable between Chefoo and Weihaiwei. 
 
 " The need for telegraphic communication with Weihaiwei became apparent soon after 
 its occupation by Her IMajesty's Government, and the events of last year rendered this need 
 so urgent, that my Lords approached the Eastern Extension Telegraph Company with the 
 view of ascertaining the terms upon which they would be prepared to connect the place with 
 their system in China. 
 
 " At the time these negotiations were entered into, the cables of the Eastern Exten- 
 sion Company (and of the (Danish) Great Northern Company, who work in connection 
 with them in China), went no further north than Woosung, near Shanghai, communication 
 northwards with Peking, being carried on over the Chinese land lines. But while the nego-
 
 274 CHINA TREATIES AND AGREEMENTS 
 
 tiations were in progress the Company intimated that they had been requested by the local 
 Chinese Telegraph administration to extend their system to Chefoo and Taku, at the mouth 
 of the Pei-ho River, and that, if this extension should be effected, communication with 
 Weihaiwei could be afforded by the laying of a comparatively short cable from that place 
 to Chefoo. The Company were prepared to lay such a line for a payment of 16,000/., and to 
 work it on behalf of His Majesty's Government, for a subsidy of 4,000/. per annum. They 
 asked for the promise of the support of His Majesty's Government in connection with the 
 negotiations which they and the Great Northern Company were carrying on with the Chinese 
 Telegraph Administration. 
 
 " These negotiations resulted in the conclusion between the Chinese Administration and 
 the Great Northern and Eastern Extension Companies of an arrangement (subsequently 
 embodied in Agreements dated the 4th August and 27th October, 1900), [for the] establish- 
 ment of cable communication under the complete control of the Companies between Shanghai, 
 Chefoo, and Taku, with the right to lay branch lines from Chefoo to Weihaiwei, Port Arthur 
 and Kiao-chau to meet the requirements of the British, Russian, and German Governments re- 
 spectively. The Chinese Administration further agreed to extend up to the 31st December, 
 1930, all existing Agreements and Concessions between it and the Companies. On learning 
 of the conclusion of this arrangement, my Lords accepted the terms quoted by the Com- 
 pany for the Chefoo-Weihaiwei connection, and requested them to lay the line as quickly as 
 possible. It was opened for traffic on the 5th September last. 
 
 " The present Agreement recites the arrangements explained above, and provides for 
 the payment to the Company of the sum of 16,000/. for the construction and laying of the 
 cable within three months of the approval of this contract by the House of Commons. It 
 also provides for an annual payment of 4,000/. to the Company for working the cables on 
 behalf of His Majesty's Government so long as they may so work it, and maintain the 
 connection between it and the Taku-Chefoo-Shanghai Cable. His Majesty's Government 
 will pay for any repairs required to the cable. The Agreement further stipulates for the 
 employment of British staff at Chefoo and Weihaiwei, and for the transmission of all 
 traffic between these places, Shanghai and Hong Kong, as far as possible by British staff. 
 His Majesty's Government undertakes to protect the Company during the working of the 
 cables, and to use its best endeavours to secure from the Chinese Administration the due 
 fulfilment of its engagements with the Company so far as they relate to the Taku-Chefoo- 
 Shanghai Cable, or to matters arising out of this Agreement. 
 
 " My Lords approve of the terms of this Agreement. 
 
 "April 24, 1901." 
 
 In connection with this agreement see also the Convention for the lease of Weihaiwei, 
 July 1, 1898 (No. 1898/14, ante). 
 
 NUMBER 1901/2. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Provincial 
 
 Government of Kirin). 
 
 Agreement regarding jurisdiction over Chinese subjects in the raikcav cone* — 
 
 July 5/18, 1901. 
 
 Under instructions from the Engineer-in-Chief of the Chinese Eastern Rail- 
 way, his duly authorized representative, Mr. Daniel, has concluded with the Chiang 
 Chun of Kirin at the present time, that is on July 5/18, 1901, and according 
 to the Chinese calendar the 3rd day of the 6th month of the 27th year of the 
 reign of Kuang Hsii, the following agreement, supplementing and amend- 
 
 * Translation from the Russian version printed in Soglashenia, p. 23. See Note to 
 this document, post. p. 277.
 
 NUMBER 1901/2: JULY 5/18, 1901 275 
 
 ing the agreement concluded on May 19/31, 1899, with Chiang-Chun Yang of 
 Kirin for the estabHshment in Harbin of a Principal Department for Foreign 
 and Railway Affairs : 
 
 1. — In Harbin, Kirin Province, there is established a Principal Depart- 
 ment of Foreign and Railway Affairs. For this purpose, there shall be appointed 
 a special staff of Chinese officials, of whom some shall be stationed permanently 
 in Harbin, while others shall be distributed along the line, so that there shall be 
 one official with each district superintendent, it being provided that these latter 
 officials shall be directly subordinate to and at the disposition of the Harbin 
 Department. 
 
 2. — The said Department is established for the final settlement of all cases 
 arising in Kirin Province, if these affairs directly or indirectly touch the inter- 
 ests of the Chinese Eastern Railway Company, and also directly or indirectly 
 touch the interests of Chinese subjects, not only those working on the railway, 
 such as employees of various kinds, artisans, laborers, contractors and persons 
 supplying goods to the railway, but also and in the same measure all other 
 Chinese subjects, whether merchants, artisans, domestic servants and other Chi- 
 nese, temporarily or permanently residing in the leased zone of the railway, even 
 if the nature of their occupation does not have any direct relation to the rail- 
 way. The Harbin Department, having its officials along the line with the district 
 superintendents, shall entrust to these officials the settlement on the spot with 
 the knowledge of and by agreement with the district superintendent of cases 
 which do not constitute serious violations of Chinese laws and railway regula- 
 tions ; the consideration, however, and decision of the more important cases, 
 such as cases of murder, open and collective disobedience of the authorities, 
 Russian or Chinese, adultery, theft of over three hundred Kirin tiao, usury 
 and the like, even if these cases shall arise in the section of the line furthest 
 removed from Harbin, shall be transferred for examination and final decision 
 to the Harbin Department. In doubtful cases, the Chinese official briefly setting 
 forth the case in conjunction with the district superintendent, shall inquire of the 
 Harbin Department whether the case is to be settled on the spot or whether 
 it is to be transferred with the accused persons to Harbin, In case of need such 
 communications shall be made by telegram through the district superintendent. 
 A telegraphic report shall also be made immediately regarding all cases coming 
 outside the competence of the local official in the district. All this second article 
 refers equally to Chinese and to Manchus and Mongols living in Kirin 
 Province. 
 
 3. — Regarding each case coming within one of the definitions set forth in 
 Article 2, and in w^hich proceedings have previously been begun in any office 
 or by any particular official, a report must immediately be sent to the said Harbin 
 Principal Department, which in its turn shall notify the Engineer-in-Chief, in 
 order to determine whether the case should be referred to the said Department 
 for continuation and decision, or whether it is to be left for examination and 
 decision to the official of the Department who is nearest to the place on the line 
 where the case arose. 
 
 4. — Hereafter all officials and offices shall refer to the Harbin Principal
 
 276 CHINA TREATIES AND AGREEMENTS 
 
 Department for settlement all new complaints and claims coming before them, 
 which refer to the cases set forth in Article 2. 
 
 5. — All complaints and claims, and also all cases in general mentioned in 
 the second article shall be examined and investigated by members of the Harbin 
 Principal Department, in conjunction with the Engineer-in-Chief of the Chinese 
 Eastern Railway or his authorized representative. Also all decisions in all cases 
 shall be arrived at by mutual agreement with the Engineer-in-Chief or his 
 authorized representative. 
 
 6. — The Chinese subjects mentioned in Article 2 shall be subject to punish- 
 ment only in accordance with a decision of the Principal Department at Harbin 
 arrived at by due process of law, provided that the Department shall decide 
 whether to execute the sentence in Harbin or at the place where the case 
 originated. In cases of sentence of criminals to banishment to places not so 
 remote (not further than 3000 li), the Harbin Department may give orders for 
 the execution of such sentences to the nearest local Chinese authorities. For 
 preliminary detention of Chinese who are arrested and for the serving of 
 terms of imprisonment by sentences of the Harbin Department, a jail shall be 
 built in connection with this office. 
 
 7. — All crimes for the commission of which the convicted persons shall be 
 sentenced to the death penalty or to banishment to remote places (more than 
 3,000 //), and also in all cases when the opinions of the members of the Harbin 
 Department are not in harmony with the opinion of the Engineer-in-Chief, are 
 subject to the final judgment of the Chiang-Chun of Kirin, which shall be based 
 on the reports of the members of the Department and on communications of 
 the Engineer-in-Chief. All other cases, regardless of the degree of their im- 
 portance, shall be finally settled and carried into execution by order of the Presi- 
 dent and Vice-President of the Department by mutual agreement with the 
 Engineer-in-Chief or his authorized representative. The President and Vice- 
 President of the Department shall on the one hand report their decisions by 
 memorial to the Chiang-Chun of Kirin for his information, and on the other 
 hand shall send a communication to the Principal Department for Foreign Re- 
 lations of Kirin Province for preservation in the archives. 
 
 8. — All the members of the Harbin Principal Department and the soldiers 
 shall be appointed by the Chiang-Chun of Kirin; the President and Vice-Presi- 
 dent of the Department shall also be appointed and removed by the Chiang- 
 Chun, but after preliminary consultation with the Engineer-in-Chief, in order 
 that for such important posts may be chosen persons known to the Chiang- 
 Chun and to the Engineer-in-Chief as worthy men, enlightened and acquainted 
 with railway afifairs and regulations. Persons chosen in this way by mutual 
 agreement shall be confirmed in their appointments by the Chiang-Chun. 
 
 9. — In order to meet all the expenses for maintenance of the President, 
 Vice-President, all officials and soldiers of the said Principal Department, the 
 Engineer-in-Chief shall place at the disposition of the President of the Depart- 
 ment annually 60,000 taels according to the Kirin market weight. This sum 
 shall be placed by the Engineer-in-Chief at the disposition of the President of 
 the Department in instalments for every three months in advance. 
 
 10. — Apart from this the sum necessary for the construction of the build-
 
 NUMBER 1901/2: JULY 5/18, 1901: NOTE 277 
 
 ings of the Department and houses for the employees (of inferior position), and 
 also for the furnishing and equipping of the buildings of the Department, shall be 
 fixed by agreement between the President of the Department and the Engineer- 
 in-Chief. The President of the Department shall receive this sum from the 
 Engineer-in-Chief in instalments according as it shall be required. 
 
 11. — The present agreement written in Chinese and in Russian in duplicate, 
 after its signature by the Kirin Chiang-Chun Chang and by the authorized 
 representatives of the Engineer-in-Chief, Mr. Daniel, shall be submitted for 
 the signatures of the Engineer-in-Chief of the Chinese Eastern Railway, Yugo- 
 vitch, and his substitute. Engineer Ignatius. One copy of this agreement must 
 be preserved in the office of the Chiang-Chun of Kirin, and the other in the 
 office of the Engineer-in-Chief. 
 
 The Russian text is a true rendering of the Chinese text. 
 
 Note. 
 
 In connection with this agreement see Chinese Eastern Railway Contract of September 
 8, 1896 (No. 1896/5, ante) ; also similar agreement of January 1/14, 1902, with the pro- 
 vincial authorities of Heilungkiang (No. 1902/1, post). 
 
 The following is a translation (from the Russian version printed in Soglashenia, p. 21) 
 of the agreement of May 19/31, 1899, which the present document supplements and amends : 
 
 Agreement regarding Jurisdiction over Chinese Subjects in Railway Zone. — May 31, 
 
 1899. 
 
 " 1. — In Harbin, Kirin Province, there is established a Principal Department of Foreign 
 and Railway Affairs. 
 
 " 2. — The above-mentioned Department is established to settle all cases arising in 
 Kirin Province if these cases directly or indirectly touch the interests of the Chinese 
 Eastern Railway Company, and also directly or indirectly touch the interests of persons 
 working on the Chinese Eastern Railway, and also the interests of contractors of every 
 sort for the supply of labor and work, and of artisans. As regards cases concerning 
 unskilled laborers, such matters are subject to examination and decision by the Chinese 
 authorities of the place where the cases arise, or according to the place where the laborer 
 is, according to the Chinese laws, if any murder, theft, adultery or similar crime, is com- 
 mitted by them (unskilled laborers). However, in regard to exceptional cases, each dis- 
 trict superintendent of the railway on the one hand shall make a report to the Principal 
 Department in Harbin, and on the other hand shall inform the local official, and the 
 proceedings in the case shall be suspended until the receipt of a decision from the Harbin 
 Principal Department as to whether the case will be removed to the Principal Department for 
 settlement or whether it will be left in the hands of the local official, after which the case 
 shall be conducted in accordance with such instructions. 
 
 "3. — In regard to any case coming within one of the definitions in the second article 
 in which proceedings have been begun in any government establishment, or by any particular 
 official whatsoever, information must be given to the above-mentioned Principal Department 
 at Harbin, which in its turn shall inform the Engineer-in-Chief in order to determine 
 whether the case should be brought to the said Department for continuation and decision, 
 or whether the consideration and decision is to be placed in the hands of the local 
 authorities. 
 
 " 4. — In the future all officials and offices should turn over to the Principal Depart- 
 ment in Harbin for decision all new complaints and claims filed with them coming within the 
 definition of cases referred to in the second paragraph : but the execution of the judgments 
 of the Principal Department at Harbin shall be carried out by the Chinese authorities in 
 the place where the case originated. 
 
 " 5. — All complaints and claims, and also all cases in general mentioned in the second 
 paragraph, shall be examined and investigated by members of the Principal Department at 
 Harbin, in conjunction with the Engineer-in-Chief of the Chinese Eastern Railway, or his 
 authorised representative. Also all decisions in all cases shall be arrived at by mutual 
 agreement with the Engineer-in-Chief or his authorized representative.
 
 278 CHINA TREATIES AND AGREEMENTS 
 
 "6. — The Chinese subjects referred to in the second paragraph, who shall be working 
 on the railway, shall be subjected to punishment only according to a judgment of the said 
 Principal Department at Harbin arrived at by due process of law. 
 
 " 7. — All the most important matters and also cases when the opinion of the members 
 of the Principal Department in Harbin shall not be in harmony with the opinion of the 
 Engineer-in-Chief, shall be subject to decision by the Chiang-Chun of Kirin, which 
 decision shall be based upon the reports of the members of the Department and upon the 
 communications of the Engineer-in-Chief. All other affairs shall be settled by the Presi- 
 dent and Vice-President by mutual agreement with the Engineer-in-Chief or his authorized 
 representative. But the President and Vice-President should report their decisions on the 
 one hand by a memorial to the Chiang-Chun to be reviewed by him, and on the other 
 hand should send a communication to the Principal Department for Foreign Relations of 
 Kirin Province for preservation in its archives. 
 
 " 8. — All members of the Principal Department at Harbin and the soldiers shall be 
 appointed by the Chiang-Chun of Kirin ; the President and Vice-President of the Department 
 shall also be appointed by the Chiang-Chun, but after preliminary notice to the Engineer-in- 
 Chief, in order to give weight to this appointment. Thereafter, when these persons are to 
 be replaced, the Engineer-in-Chief may recommend for appointment as President and 
 Vice-President officials of Kirin Province actually known to the Engineer-in-Chief who are 
 talented and have an intimate knowledge of railway affairs : such recommendations shall be 
 considered by the Chiang-Chun, who shall make his decision in accordance with them. 
 
 " 9. — To meet all expenses for the maintenance of the President, Vice-President, all 
 officials and soldiers of the said Principal Department, the Engineer-in-Chief shall each 
 year place at the disposition of the President of the Department 60,000 taels according to the 
 Kirin market weight. This sum shall be placed by the Engineer-in-Chief at the disposition 
 of the President of the Department in instalments for each three months in advance. 
 
 " 10. — Apart from this, the sum necessary for the construction of the buildings of the 
 Department and houses for the employees (of inferior position), and also for the furnish- 
 ing and equipping of the buildings of the Department, shall be determined by agreement 
 between the President of the Department and the Engineer-in-Chief. The President of 
 the Department shall receive it from the Engineer-in-Chief in instalments according as it 
 shall be required. 
 
 " The Russian text is a true rendering of the Chinese text. 
 
 " The agreement was signed by 
 
 " YuGOviTCH, Engineer-in-Chief of tlie Chinese 
 
 Eastern Railway: his assistant, 
 "Ignatius: and 
 " Yang, Chiang-Chun of Kirin Province." 
 
 NUMBER 1901/3. 
 
 AUSTRIA-HUNGARY, BELGIUM, FRANCE, GERMANY, GREAT 
 
 BRITAIN, ITALY, JAPAN. THE NETHERLANDS, RUSSIA, 
 
 SPAIN, THE UNITED STATES AND CHINA. 
 
 Final Protocol for the settlement of the disturbances of 1900* — September 
 
 7, 1901. 
 
 The plenipotentiaries of Germany, His Excellency M. A. Mumm von 
 Schwarzenstein ; of Austria-Hungary, His Excellency M. M. Czikann von Wahl- 
 born; of Belgium, His Excellency M. Joostens ; of Spain, M. B. J. de Cologan ; 
 of the United States, His Excellency M. W. W. Rockhill ; of France, His Excel- 
 
 * Translation from the French text, as printed in U. S. Treaty Series, No. 397. 
 
 Printed also in Rockhill, p. 63; British Treaty Series, No. i? (1902); China No. i 
 {1902) ; Customs, Vol. I, p. 303; Traitcs et Conventions, p. 217; Hertslet, p. 123; Malloy, 
 p. 2006; Am. Int. Law Journal, Supplement, 1907, p. 388. See Note 1 to this document, 
 post, p. 308.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901 279 
 
 lency M. Paul Beau; of Great Britain, His Excellency Sir Ernest Satow ; of 
 Italy, Marquis Salvago Raggi ; of Japan, His Excellency M. Jutaro Komura; of 
 the Netherlands, His Excellency M. F. M. Knobel ; of Russia, His Excellency 
 M. M. de Giers; and of China, His Highness Yi-K'uang Prince Ching of the 
 first rank. President of the Ministry of Foreign Affairs, and His Excellency 
 Li Hung-chang, Earl of Su-i of the first rank, Tutor of the Heir Apparent, 
 Grand Secretary of the Wen-hua Throne Hall, Minister of commerce, Superin- 
 tendent of the northern trade, Governor-General of Chihli, have met for the pur- 
 pose of declaring that China has complied to the satisfaction of the Powers with 
 the conditions laid down in the note of the 22d of December, 1900 f and which 
 were accepted in their entirety by His Majesty the Emperor of China in a decree 
 dated the 27th of December. (Annex No. 1.) 
 
 Article P. — By an Imperial Edict of the 9th of June last (Annex No. 2), 
 Tsai Feng, Prince of Ch'iin, was appointed Ambassador of His Majesty the 
 Emperor of China, and directed in that capacity to convey to His Majesty the 
 German Emperor the expression of the regrets of His Majesty the Emperor of 
 China and of the Chinese Government for the assassination of His Excellency 
 the late Baron von Ketteler, German minister. 
 
 Prince Ch'iin left Peking the 12th of July last to carry out the orders which 
 had been given him. 
 
 Article P. — The Chinese Government has stated that it will erect on the 
 spot of the assassination of His Excellency the late Baron von Ketteler a com- 
 memorative monument, worthy of the rank of the deceased, and bearing an 
 inscription in the Latin, German, and Chinese languages, which shall express the 
 regrets of His Majesty the Emperor of China for the murder committed. 
 
 Their Excellencies the Chinese Plenipotentiaries have informed His Excel- 
 lency the German Plenipotentiary, in a letter dated the 22nd of July last (Annex 
 No. 3) that an arch of the whole width of the street would be erected on the 
 said spot, and that work on it was begun the 25th of June last. 
 
 Article IP. — Imperial Edicts of the 13th and 21st of February, 1901 (An- 
 nexes Nos. 4, 5, and 6), inflicted the following punishments on the principal 
 authors of the outrages and crimes committed against the foreign Governments 
 and their nationals : 
 
 Tsai-I Prince Tuan and Tsai Lan Duke Fu-kuo were sentenced to be 
 brought before the autumnal court of assize for execution, and it was agreed that 
 if the Emperor saw fit to grant them their lives, they should be exiled to Turke- 
 stan and there imprisoned for life, without the possibility of commutation of 
 these punishments. 
 
 Tsai Hsiin Prince Chuang, Ying Nien, President of the Court of censors, 
 and Chao Shu-Chiao, President of the Board of punishments, were condemned to 
 commit suicide. 
 
 Yii Hsien, Governor of Shanhsi, Chi Hsiu, President of the Board of rites, 
 and Hsii Cheng-yu, formerly senior vice-President of the Board of punishments, 
 were condemned to death. 
 
 Posthumous degradation was inflicted on Kang Yi, assistant Grand Secre- 
 t See Note 2 to this document, post, p. 309.
 
 280 CHINA TREATIES AND AGREEMENTS 
 
 tary, President of the Board of Works, Hsii Tung, Grand Secretary, and Li 
 Ping-heng, formerly Governor-General of Szu-ch'uan. 
 
 An Imperial Edict of February 13th, 1901 (Annex No. 7), rehabilitated 
 the memories of Hsii Yung-yi, President of the Board of war, Li Shan, Presi- 
 dent of the Board of works, Hsii Ching-cheng, senior vice-President of the 
 Board of works, Lien Yuan, vice-Chancellor of the Grand Council, and Yuan 
 Chang, vice-President of the Court of sacrifices, who had been put to death for 
 having protested against the outrageous breaches of international law of last 
 year. 
 
 Prince Chuang committed suicide the 21st of February, 1901, Ying Nien and 
 Chao Shii-chiao the 24th, Yii Hsien was executed the 22nd, Chi Hsiu and 
 Hsu Cheng-yu on the 26th. Tung Fu-hsiang, General in Kan-su, has been 
 deprived of his office by Imperial Edict of the 13th of February, 1901, pending 
 the determination of the final punishment to be inflicted on him. 
 
 Imperial Edicts dated the 29th of April and 19th of August, 1901, have 
 inflicted various punishments on the provincial officials convicted of the crimes 
 and outrages of last summer. 
 
 Article IP. — An Imperial Edict promulgated the 19th of August, 1901 
 (Annex No. 8), ordered the suspension of official examinations for five years 
 in all cities where foreigners were massacred or submitted to cruel treatment. 
 
 Article III. — So as to make honorable reparation for the assassination of 
 Mr. Sugiyama, chancellor of the Japanese legation. His Majesty the Emperor of 
 China by an Imperial Edict of the 18th of June, 1901 (Annex No. 9), appointed 
 Na Tung, vice-President of the Board of revenue, to be his Envoy Extraordinary, 
 and specially directed him to convey to His Majesty the Emperor of Japan the 
 expression of the regrets of His Majesty the Emperor of China and of his Gov- 
 ernment at the assassination of the late Mr. Sugiyama. 
 
 Article IV. — The Chinese Government has agreed to erect an expiatory 
 monument in each of the foreign or international cemeteries which were dese- 
 crated and in which the tombs were destroyed. 
 
 It has been agreed with the Representatives of the Powers that the legations 
 interested shall settle the details for the erection of these monuments, China 
 bearing all the expenses thereof, estimated at ten thousand taels for the ceme- 
 teries at Peking and within its neighborhood, and at five thousand taels for the 
 cemeteries in the provinces. The amounts have been paid and the list of these 
 cemeteries is enclosed herewith. (Annex No. 10.) 
 
 Article V. — China has agreed to prohibit the importation into its territory 
 of arms and ammunition, as well as of materials exclusively used for the 
 manufacture of arms and ammunition. 
 
 An Imperial Edict has been issued on the 25th of August, 1901 (Annex 
 No. 11), forbidding said importation for a term of two years. New Edicts 
 may be issued subsequently extending this by other successive terms of two 
 years in case of necessity recognized by the Powers. 
 
 Article VI.— By an Imperial Edict dated the 29th of May, 1901 (Annex No. 
 12), His Majesty the Emperor of China agreed to pay the Powers an indemnity 
 of four hundred and fifty millions of Haikwan Taels. This sum represents
 
 NUMBER 1901/3: SEPTEMBER 7, 1901 281 
 
 the total amount of the indemnities for States, companies or societies, private 
 individuals, and Chinese referred to in Article VI of the note of December 22nd, 
 19004 
 
 (a) These four hundred and fifty millions constitute a gold debt cal- 
 culated at the rate of the Haikwan tael to the gold currency of each country, 
 as indicated below. 
 
 Haikwan tael=marks 3.055 
 
 =Austro-Hungary crown 3.595 
 
 =go\d dollar 0.742 
 
 =f rancs 3.750 
 
 ==pound sterling 3s.0d. 
 
 =yen 1.407 
 
 ^Netherlands florin 1.796 
 
 =gold rouble (17.424 doHas fine) 1.412 
 
 This sum in gold shall bear interest at 4 per cent per annum, and the 
 capital shall be reimbursed by China in thirty-nine years in the manner indicated 
 in the annexed plan of amortization. (Annex No. 13.) 
 
 Capital and interest shall be payable in gold or at the rates of exchange 
 corresponding to the dates at which the different payments fall due. 
 
 The amortization shall commence the 1st of January, 1902, and shall finish 
 at the end of the year 1940. The amortizations are payable annually, the first 
 payment being fixed on the 1st of January, 1903. 
 
 Interest shall run from the 1st of July, 1901, but the Chinese Government 
 shall have the right to pay ofif within a term of three years, beginning January, 
 1902, the arrears of the first six months, ending the 31st of December, 1901, on 
 condition, however, that it pays compound interest at the rate of 4 per cent per 
 annum on the sums the payments of which shall have thus been deferred. In- 
 terest shall be payable semiannually, the first payment being fixed on the 1st 
 of July, 1902. 
 
 (b) The service of the debt shall take place in Shanghai, in the following 
 manner : § 
 
 Each Power shall be represented by a delegate on a commission of bankers' 
 authorized to receive the amount of interest and amortization which shall be 
 paid to it by the Chinese authorities designated for that purpose, to divide it 
 among the interested parties, and to give a receipt for the same. 
 
 (c) The Chinese Government shall deliver to the Doyen of the Diplomatic 
 Corps at Peking a bond for the lump sum, which shall subsequently be con- 
 verted into fractional bonds bearing the signatures of the delegates of the 
 Chinese Government designated for that purpose. This operation and all those 
 relating to issuing of the bonds shall be performed by the above-mentioned 
 Commission, in accordance with the instructions which the Powers shall send 
 their delegates. 
 
 (d) The proceeds of the revenues assigned to the payment of the bonds 
 
 shall be paid monthly to the Commission. 
 
 t See Note 3 to this document, post, p. 311. 
 
 § For final settlement of the question of indemnity, as embodied in the collective note 
 of the Powers, July 2, 1905, see Note 6 to this document, (post, p. 319).
 
 282 CHINA TREATIES AND AGREEMENTS 
 
 (e) The revenues assigned as security for the bonds are the following: 
 
 1. The balance of the revenues of the Imperial maritime Customs after 
 payment of the interest and amortization of preceding loans secured on these 
 revenues, plus the proceeds of the raising to five per cent effective of the 
 present tariff on maritime imports, including articles until now on the free list, 
 but exempting foreign rice, cereals, and flour, gold and silver bullion and 
 coin. 
 
 2. The revenues of the native customs, administered in the open ports by the 
 Imperial maritime Customs. 
 
 3. The total revenues of the salt gabelle, exclusive of the fraction previously 
 set aside for other foreign loans. 
 
 The raising of the present tariff on imports to five per cent effective is 
 agreed to on the conditions mentioned below. 
 
 It shall be put in force two months after the signing of the present protocol, 
 and no exceptions shall be made except for merchandise shipped not more than 
 ten days after the said signing. 
 
 1 °. All duties levied on imports " ad valorem " shall be converted as far as 
 possible and as soon as may be into specific duties. This conversion shall be 
 made in the following manner : The average value of merchandise at the time 
 of their landing during the three years 1897, 1898, and 1899, that is to say, 
 the market price less the amount of import duties and incidental expenses, shall 
 be taken as the basis for the valuation of merchandise. Pending the result of 
 the work of conversion, duties shall be levied "ad valorem." 
 
 2°. The beds of the rivers Peiho and Whangpu shall be improved with the 
 financial participation of China. 
 
 Article VII. — The Chinese Government has agreed that the quarter oc- 
 cupied by the legations shall be considered as one specially reserved for their 
 use and placed under their exclusive control, in which Chinese shall not have 
 the right to reside and which may be made defensible. || 
 
 The limits of this quarter have been fixed as follows on the annexed plan 
 (Annex No. 14) : ^ 
 
 On the west, the line 1, 2, 3, 4, 5. 
 
 On the north, the line 5, 6, 7, 8, 9, 10. 
 
 On the east, Ketteler street (10, 11, 12). 
 
 Drawn along the exterior base of the Tartar wall and following the line 
 of the bastions, on the south of the line 12,1. 
 
 In the protocol annexed to the letter of the 16th of January, 1901, China 
 recognized the right of each Power to maintain a permanent guard in the said 
 quarter for the defense of its legation. 
 
 Article VIII. — The Chinese Government has consented to raze the forts 
 of Taku and those which might impede free communication between Peking and 
 the sea ; steps have been taken for carrying this out.* 
 
 Article IX. — The Chinese Government has conceded the right to the 
 
 Powers in the protocol annexed to the letter of the 16th of January, 1901. to 
 
 * See Note 5 to this document, post, p. 316. 
 II See Note 4 to this document, post. p. 315. 
 it See plane-table survey facing p. 298.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901 283 
 
 occupy certain points, to be determined by an agreement between them, for the 
 maintenance of open communication between the capital and the sea. The 
 points occupied by the powers are : 
 
 Huang-tsun, Lang-fang, Yang-tsun, Tientsin, Chun-hang Ch'eng, Tang-ku, 
 Lu-tai, Tang-shan, Lan-chou, Chang-h, Ch'in-wang tao, Shan-hai kuan.f 
 
 Article X. — The Chinese Government has agreed to post and to have pub- 
 Hshed during two years in all district cities the following Imperial edicts : 
 
 (a) Edict of the 1st of February (Annex No. 15), prohibiting forever, 
 under pain of death, membership in any antiforeign society. 
 
 {b) Edicts of the 13th and 21st February, 29th April, and 19th August, 
 enumerating the punishments inflicted on the guilty. 
 
 (c) Edict of the 19th August, 1901, prohibiting examinations in all cities 
 where foreigners were massacred or subjected to cruel treatment. 
 
 (d) Edict of the 1st of February, 1901 (Annex No. 16), declaring all 
 governors-general, governors, and provincial or local officials responsible for 
 order in their respective districts, and that in case of new antiforeign troubles 
 or other infractions of the treaties which shall not be immediately repressed 
 and the authors of which shall not have been punished, these officials shall 
 be immediately dismissed, without possibility of being given new functions or 
 new honors. 
 
 The posting of these edicts is being carried on throughout the Empire. 
 
 Article XI. — The Chinese Government has agreed to negotiate the amend- 
 ments deemed necessary by the foreign Governments to the treaties of com- 
 merce and navigation and the other subjects concerning commercial relations, with 
 the object of facilitating them.lj: 
 
 At present, and as a result of the stipulation contained in Article VI con- 
 cerning the indemnity, the Chinese Government agrees to assist in the improve- 
 ment of the courses of the rivers Peiho and Whangpu, as stated below. 
 
 (a) The works for the improvement of the navigability of the Peiho, begun 
 in 1898 with the cooperation of the Chinese Government, have been resumed 
 under the direction of an international Commission. As soon as the administra- 
 tion of Tientsin shall have been handed back to the Chinese Government, it 
 will be in a position to be represented on this commission, and will pay each year 
 a sum of sixty thousand Haikwan taels for maintaining the works. 
 
 (b) A conservancy Board, charged with the management and control of the 
 works for straightening the Whangpu and the improvement of the course of that 
 river, is hereby created. 
 
 This Board shall consist of members representing the interests of the 
 Chinese Government and those of foreigners in the shipping trade of Shanghai. 
 The expenses incurred for the works and the general management of the under- 
 taking are estimated at the annual sum of four hundred and sixty thousand 
 Haikwan taels for the first twenty years. This sum shall be supplied in equal 
 portions by the Chinese Government and the foreign interests concerned. De- 
 
 t See Note 5 to this document, post, p. 316. 
 
 i See commercial treaties concluded by Great Britain, September 5, 1902 (No. 1902/7, 
 post), the United States, October 8, 1903 (No. 1903/5, post), and Japan, October 8, 1903 
 (No. 1903/4, post).
 
 284 CHINA TREATIES AND AGREEMENTS 
 
 tailed stipulations concerning the composition, duties, and revenues of the con- 
 servancy board are embodied in annex No. 17. § 
 
 Article XII. — An Imperial Edict of the 24th of July, 1901 (Annex No. 
 18), reformed the Office of foreign affairs (Tsungli Yamen), on the lines indi- 
 cated by the Powers, that is to say, transformed it into a Ministry of foreign 
 affairs (Wai-wu Pu), which takes precedence over the six other Ministries of 
 State. The same edict appointed the principal members of this Ministry. 
 
 An agreement has also been reached concerning the modification of Court 
 ceremonial as regards the reception of foreign Representatives and has been the 
 subject of several notes from the Chinese Plenipotentiaries, the substance of which 
 is embodied in a memorandum herewith annexed (Annex No. 19). 
 
 Finally, it is expressly understood that as regards the declarations specified 
 above and the annexed documents originating with the foreign Plenipotentiaries, 
 the French text only is authoritative. 
 
 The Chinese Government having thus complied to the satisfaction of the 
 Powers with the conditions laid down in the above-mentioned note of Decem- 
 ber 22nd, 1900, the Powers have agreed to accede to the wish of China to termi- 
 nate the situation created by the disorders of the summer of 1900. In con- 
 sequence thereof the foreign Plenipotentiaries are authorized to declare in the 
 names of their Governments that, with the exception of the legation guards 
 mentioned in Article VII, the international troops will completely evacuate the 
 city of Peking on the 17th September, 1901, and, with the exception of the 
 localities mentioned in Article IX, will withdraw from the province of Chihli on 
 the 22d of September. 
 
 The present final Protocol has been drawn up in twelve identic copies and 
 signed by all the Plenipotentiaries of the Contracting Countries. One copy shall 
 be given to each of the foreign Plenipotentiaries, and one copy shall be given to 
 the Chinese Plenipotentiaries. 
 
 Peking, 7th September, 1901. 
 
 A. V, MUMM. 
 
 m. czikann. 
 
 joostens. 
 
 b, j. de cologan. 
 
 w. w. rockhill. 
 
 Beau. 
 
 Ernest Satow. 
 
 Salvago Raggi. 
 
 Jutaro Komura. 
 
 F. M. Knobel. 
 
 M. DE GlERS. 
 
 Signatures 
 
 and 
 
 seals 
 
 of 
 
 Chinese 
 
 plenipotentiaries. 
 
 § Annex No. 17 was replaced by the stipulations of the Huangpu Conservancy Agree- 
 ment of September 27, 1905 (No. 1905/10, post).
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 285 
 
 [Translation.] 
 ANNEXES TO THE FINAL PROTOCOL. 
 
 No. 1. Imperial Edict of 27 December, 1900. 
 
 2. Imperial Edict of 9 June, 1901. 
 
 3. Letter of the Chinese plenipotentiaries of 22 July, 1901. 
 
 4. Imperial Edict of 13 Feburary, 1901. 
 
 5. Imperial Edict of 13 February, 1901. 
 
 6. Imperial Edict of 21 February, 1901. 
 
 7. Imperial Edict of 13 February, 1901. 
 
 8. Imperial Edict of 19 August, 1901. 
 
 9. Imperial Edict of 18 June, 1901. 
 
 10. List of desecrated cemeteries. 
 
 11. Imperial Edict of 25 August, 1901. 
 
 12. Imperial Edict of 29 May, 1901. 
 
 13. Table of amortization. 
 
 14. Plan of the diplomatic quarter and notice. 
 
 15. Imperial Edict of 1st February, 1901. 
 
 16. Imperial Edict of 1st February, 1901. 
 
 17. Regulations for the improvement of the Whangpu. 
 
 18. Imperial Edict of 24 July, 1901. 
 
 19. Memorandum concerning court ceremonial. 
 
 Annex No. 1. 
 
 IMPERIAL EDICT of the 27th December, 1900 (Translation). 
 
 [Seal of the Emperor.] 
 
 The 6th day of the Uth moon of the 26th year of Kuang-hsti (27 December, 
 1900), the following Edict was rendered: 
 
 " We have taken cognizance of the whole telegram of Yi-K'uang and Li 
 Hung-chang. It is proper that We accept in their entirety the twelve articles 
 which they have submitted to us." 
 Respect this ! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 2. 
 
 IMPERIAL EDICT of the 9th of June, 1901 (Translation). 
 
 " We confer on Tsai Feng, Prince Ch'iin of the first rank, the title of 
 Ambassador extraordinary, and We direct him to proceed to Germany to 
 respectfully discharge the mission which We confide to him. 
 
 " Chang Yi, reader of the Grand Chancellery, and Yin Ch'ang, military 
 Lieutenant-Governor, shall accompany him as secretaries. 
 " Respect this ! " 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halb.ach.
 
 286 CHINA TREATIES AND AGREEMENTS 
 
 Annex No. 3. 
 
 Despatch of Prince Ching and of Li Hung-chang of the 22 July, 1901, to His 
 Excellency M. de Mumm, German Plenipotentiary {Translation). 
 
 Official reply. 
 
 On the 3rd day of the 5th moon of the present year (18th of June, 1901), 
 We have received from Your Excellency the following official communication: 
 
 " Messrs. Jui-liang, secretary, and Lien-fang, expectant taotai, delegates 
 entrusted with carrying out Article I of the Joint Note providing for the erec- 
 tion of a commemorative monument on the place of the assassination of Baron 
 von Ketteler, former Minister of Germany, commenced some time ago the dis- 
 cussion of the subject with my Legation, and have taken up the question of the 
 plan of this monument. 
 
 " During frequent conversations they have stated that if it were necessary 
 that a commemorative arch in marble, from Ta-li and extending the whole 
 width of the avenue of Ch'ung-wen-men, should be erected on the spot of the 
 assassination, the work would require a great deal of time, in view of the diffi- 
 culty in transporting the materials ; but as to adopting some other means, either 
 of transferring to the place of the assassination an archway erected at the present 
 time in some other spot, or of putting up a new arch, or of using an old archway 
 to be transported to the place, they left this to the determination of my Govern- 
 ment. 
 
 " I at once telegraphed my Government to inform me of its views. 
 
 " The reply which I have just received informs me that His Majesty 
 the Emperor of Germany has himself decided that a new archway extending 
 across the whole width of the street should be put up. 
 
 " I have consequently to urgently request you to take immediate steps, 
 so that the work may begin at once." 
 
 We, Prince and Minister, have at once directed the said secretary and 
 taotai to act in conformity. According to the report which they have sent us, 
 " the work was begun on the 10th day of the 5th moon (25th of June) by the 
 foundations. But a certain length of time is necessary for getting out the stone, 
 cutting it and for the transportation of materials; and the only thing that can 
 be done is to watch that the workmen use their best endeavors to carry on 
 promptly the work." 
 
 Besides having directed that We should be kept informed of the execution 
 of the work. We deem it necessary to send the present official reply to Your 
 Excellency, requesting you to take note of it. 
 
 Correct copy. A. d'Anthouard. 
 
 B, Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 287 
 
 Annex No. 4. 
 IMPERIAL EDICT of the 13th of February, 1901 (Translation). 
 
 Since the 5th moon (end of May) the Boxers have created trouble in 
 the capital and have begun hostilities against friendly countries. Yi-K'ung 
 and Li Hung-chang are negotiating for peace at Peking with Representatives of 
 the Powers, and a whole preliminary arrangement has already been signed. 
 
 (If) We consider the commencement of these events, we find that they are 
 attributable to several stupid Princes and Ministers, insane, absolutely ignorant, 
 turbulent, and who have ignored the laws. They had most absolute confidence 
 in pernicious methods and have led on the Court. Not only did they refuse to 
 obey Our orders to exterminate the Boxers, but they have been so far as to 
 believe in them, and, stupidly, they began to attack (the Legations). So it was 
 that this evil fire spread abroad, and circumstances did not permit of its being 
 stopped, several tens of thousands of evil-doers having assembled at the elbow 
 and the armpit (that is to say, at the most important points). Furthermore, 
 the leaders forced generals and ignorant soldiers to attack the Legations, and 
 so it befell that inconceivable evils persisted for several months. 
 
 The tutelary deities of the Empire have been in danger, the Imperial 
 tombs and the temples of Ancestors have trembled, the country has been 
 devastated; the inhabitants are plunged in misery. No words can express the 
 dangers which We and H. M. the Empress Dowager have been exposed to. 
 Our heart and Our head are still painful; Our tears and Our resentment are 
 confounded. It is to you. Princes and Ministers, who, by believing in evil 
 words and allowing evil-doers free hand, have put in danger in Heaven our 
 Ancestors and Our gods, and who here below have caused the people to endure 
 these calamities. Do you ask what punishments you deserve? 
 
 We have already issued two decrees. But, considering that such light 
 punishments for such grievous faults could not be sufficient to make you expiate 
 your crimes, We must impose upon you new and more severe punishments 
 according to your degree of guilt. 
 
 TsAi-i HsiJN, Prince Chuang, already degraded, allowed the Boxers to 
 attack the Legations. He, on his own authority, published proclamations con- 
 trary to the treaties ; he lightly believed the statements of evil-doers ; he unlaw- 
 fully caused to be decapitated a great number of persons; he has shown him- 
 self, of a truth, vulgar and stupid. We invite him, as a favor, to commit suicide. 
 We direct Ko-pao-hua, acting president of the Court of Censors, to go and see 
 (that the suicide has taken place). 
 
 TsAi-i, Prince Tuan, already degraded, led away with him several Princes 
 and Peilo (Princes of the 3d class). He foolishly gave heed to the Boxers and 
 stupidly advised fighting. So all these troubles broke out ; his faults, of a truth, 
 can not be ignored. Tsai-lan, Duke Fu-kuo, reduced in rank, in concert with 
 TsAi-HsiJN, foolishly published proclamations contrary to the treaties. He 
 should also be punished for his faults. We deprive them of their nobiliary 
 titles, but, considering that they belong to our family, we order, by special act
 
 288 CHINA TREATIES AND AGREEMENTS 
 
 of grace, that they be sent to Hsin-chiang (Hi) where they shall be condemned 
 to prison for life. Deputies shall be at first sent to watch them. 
 
 Yu-HSiEN, degraded governor, foolishly believed, when formerly discharg- 
 ing the duties of governor in Shantung, in the charms of the Boxers. Arriving 
 in Peking, he extolled them so highly that several Princes and Ministers fell 
 under his evil influence. Being governor of Shansi, he massacred a great 
 number of missionaries and Christians. He is worse than an imbecile, than a 
 fool, than a murderer; he is the chief culprit and the author of all these 
 calamities. He has already been sent to Hsin-chiang, and, believing that he has 
 arrived in Kan-su, We order that, on the receipt of the order which We send, 
 he shall be at once beheaded. We direct the Provincial Judge Ho Fu-kun to 
 see that the penalty is carried out. 
 
 Kang-yi, Assistant Grand Secretary of State, President of the Board of 
 Works, having lent his aid to the Boxers, serious disturbances broke out. He 
 aided in publishing proclamations contrary to the treaties. A severe punish- 
 ment was to have been inflicted on him at first, but he has died of disease. We 
 order that the honors which he previously held shall be withdrawn from him 
 and that he be at once degraded. 
 
 Tung Fu-hsiang, general in Kan-su, degraded but retained in office, entered 
 (Peking) to defend (the city) with the troops under his orders; he was unable 
 to maintain strict discipline. Ignorant, furthermore, of international questions, 
 he followed his ideas and acted in an inconsiderate manner. Although the attacks 
 on the Legations were ordered him by the above degraded Princes, it is never- 
 theless difficult to absolve him of all faults. We intended in the first instance to 
 have punished him severely, but, considering the signal services he has rendered in 
 Kan-su and the sympathy felt for him by Mussulman and Chinese, as an act 
 of extraordinary grace. We order that he shall be immediately degraded. 
 
 YiNG-xiEN, President of the Court of Censors, reduced in rank and dis- 
 placed, opposed TsAi-HsiJN publishing on his own authority proclamations con- 
 trary to the treaties. We may make due allowance for this circumstance, but as 
 he was not able to overcome (this resistance) by force, it is, after all, difficult 
 to absolve him. We order, as a mark of great benevolence, that he be degraded. 
 We condemn him to death, and he shall await in prison that his case be passed on. 
 
 Chao Shu-chiao, President of the Board of Punishments, degraded and 
 retained in office, had never shown till then any unfriendly feeling in relations 
 with the Foreign Powers. Having made a report on the Boxers, he said 
 nothing in their favor, but through his negligence faults were made. We order, 
 as a special act of grace, that he be degraded. We condemn him to death, and 
 he will await in prison that his case be passed on. 
 
 We command that Ying-nien and Chad Shu-chiao be in the first place 
 confined in the prison of the capital of Shensi. 
 
 Hsu Tung, Grand Secretary of State, and Li Ping-heng, former Governor- 
 General of Sze-chuan, reduced in rank and displaced, died for their country, but 
 everyone knows their faults. We order that they be degraded, and We deprive 
 them of the posthumous honors which We had conferred on them. 
 
 After the promulgation of this decree all our friendly nations should
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 
 
 289 
 
 recognize that the events caused by the Boxers are in truth only attributable to 
 the principal authors of trouble and in no wise to the wishes of the Court. 
 
 We, the Emperor, not lightly punishing several of the principal authors of 
 trouble, the officials and the people of the Empire will understand at once that 
 the consequences of such acts are most serious. 
 Respect this ! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 5. 
 
 IMPERIAL EDICT of the 13 February, 1901 {Translation.) 
 
 Ch'i-hsiu, president of the Board of Rites, and Hsu Cheng-yu, formerly 
 senior Vice-President of the Board of Punishments, are in the first place to be 
 degraded. 
 
 We order Yi K'uang and Li Hung-chang to obtain exact proof of their 
 guilt and to send Us at once a report. They shall be punished with the greatest 
 severity. 
 
 Respect this ! , 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 6. 
 IMPERIAL EDICT of the 21 February, 1901 (Translation.) 
 
 Edict published and sent telegraphically the 3rd day of the 1st moon (21 
 February, 1901), and received on the 4th by the Grand Chancellery. 
 
 " By a former Edict We had already severely punished, according to the 
 several cases, all the high officials, the principal authors of the present misfor- 
 tunes. But We received some time ago a telegraphic report from Yi-K'uang and 
 Li Hung-chang telling Us that, according to an official despatch from the Minis- 
 ters Plenipotentiary of the various Powers, new and severer punishments were 
 necessary, and begging Us to take action. 
 
 " Besides Tsai-hsun, who has been ordered to commit suicide, and Yu- 
 hsien, against whom has been pronounced the penalty of immediate decapitation, 
 and for each of whom deputies have been ordered to go see that (the sentences 
 have been carried out). We decide that the penalty to be inflicted on Tsai-yi 
 (Prince Tuan) and Tsai-lan (Duke Lan) is decapitation with reprieve; neverthe- 
 less, in view of the relationship in which they stand to Us, We show them the
 
 290 CHINA TREATIES AND AGREEMENTS 
 
 Special act of grace of sending them to the frontier of the Empire, in Turkestan, 
 where they shall be imprisoned for life. A deputy to take them under escort shall 
 be designated, and shall leave at once. 
 
 " As to Kang-yi, whose crimes were greater, the penalty should have been 
 immediate decapitation, but as he has already died of disease, as an act of grace, 
 he shall be spared further inquiry into his case. 
 
 " As regards Ying-nien and Chad Shu-chiao, whose punishments, accord- 
 ing to Our former decisions, were to have been decapitation with reprieve, We 
 command that they be requested to commit suicide, and We direct Ch'en Ch'un- 
 huan, Governor of Shan-si, to go and verify (their deaths). 
 
 " As to Ch'i-hsiu and Hsu Cheng-yu, whom the Powers designate as the 
 most ardent protectors of the Boxer bandits, and as having most particularly 
 done harm to foreigners. We had previously ordered their degradation; We 
 (now) order Yi-K'uang and Li Hung-chang to ask the Powers, by despatch, for 
 their surrender, and to have them executed at once. One of the Presidents of 
 the Board of Punishments shall be directed to verify (their execution). 
 
 " As to Hsu Tung, who compromised the great general interests by putting 
 his confidence in the Boxers, and Li Ping-heng, whose bragging ways directly 
 brought about these misfortunes, the punishment which should have been theirs 
 was decapitation with reprieve; but taking into consideration the fact that they 
 committed suicide when they saw the disaster coming, and that they have already 
 been degraded, and that the posthumous honors which had been granted them 
 have been annulled and withdrawn, it is needless to take up their cases. 
 
 " The nature of the crimes committed by all the principal authors of the 
 wrong has been set forth in a clear and detailed way in previous decrees. 
 
 Respect this ! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 7. 
 IMPERIAL EDICT of the 13th February, 1901 {Translation). 
 
 The trouble brought about by the Boxers during the 5th moon (May- 
 June) having spread from day to day, the Court had two difficult methods to 
 adopt — to take coercitive measures or to pacify them. In the hope that a line of 
 conduct would be shown Us the Ministers were several times called in audience. 
 
 We have repeatedly questioned Hsu Yung-Yi, President of the Board of 
 War, Li-shan, President of the Board of Finance, Hsu Ching-cheng, senior 
 vice-President of the Board of Works, Lien-Yuan, vice Chancellor of the Grand 
 Council, Yuan-chang, vice-President of the Court of Sacrificial Worship. 
 
 In their speech and in their mind all admitted that the two methods were 
 possible. Several Ministers, instigators of trouble, availing themselves of this
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 291 
 
 fact, unjustly accused them, handed in memorials in which they denounced them. 
 So it came about that they were severely punished in their persons. 
 
 But considering that Hsii Yung-yi and the others showed great zeal for 
 many years and have always had charge of international questions, that they 
 may have been faithful, and that they had shown themselves industrious, We 
 should grant them a favor. 
 
 We command that Li-shan, Hsu Yung-yi, Hsii Ching-cheng, Lien- 
 Yuan, and YuAN-CHANG be restored to their former honors. 
 Let the ministry concerned be informed. 
 Respect this ! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tov^er. 
 G. Bohlen-Halbach. 
 
 Annex No. 8. 
 IMPERIAL EDICT of the 19th August, 1901 {Translation). 
 
 Edict received by the Grand Chancellery the 6th day of the 7th moon of 
 the 27th year of Kuang-hsii (19 August, 1901). 
 
 " Considering the report of this day by which Yi-K'uang and Li Hung- 
 chang inform Us that the foreign Powers have decided on the suspension during 
 five years of civil and military examinations in the localities where troubles have 
 taken place ; 
 
 " Considering that it is declared that this suspension shall remain applicable 
 to the local examinations for licentiates of Shun-t'ien and of T'ai-yuan; 
 
 " Considering the list comprising the localities of — 
 
 " Province of Shan-si : T'ai-yuan Fu, Hsin-chou, Tai-ku Hsien, Ta-t'ung 
 Fu, Fen-chou Fu, Hsiao-i Hsien, Ch'u-wo Hsien, Ta-ning Hsien, Ho-ching 
 Hsien, Yueh-yang Hsien, So-p'ing Fu, Wen-shui Hsien, Shuo-yang Hsien, 
 P'ing-yang Fu, Ch'ang-tzu Hsien, Kao-p'ing Hsien, Tse-chou Fu, Hsi Chou, 
 P'u Hsien, Chiang-chou, Kuei-hua Ch'eng, Sui-yuan ch'eng; 
 
 " Province of Ho-nan : Nan-yang Fu, Kuang-chou; 
 
 " Province of Che-chiang : Ch'iJ-chou Fu ; 
 
 " Province of Chih-li : Pei-ching, Shun-t'ien Fu, Pao-ting Fu, Yung-ching 
 Hsien, T'ien-ching Fu, Shun-te Fu, Wang-tu Hsien, Huai-lu Hsien, Hsin-ngan 
 Hsien, T'ung-chou, Wu-i Hsien, Ching-chou, Luan-ping Hsien ; 
 
 "Three provinces of Manchuria: Sheng-ching (—Mukden), Chia-tzii- 
 ch'ang, Lien-shan, Yu-ch'ing-chieh, Pei-lin-tzii, Hu-lan Ch'eng; 
 
 " Province of Shen-si : Ning-chiang Chou ; 
 
 " Province of Hu-nan : Heng-chou Fu ; 
 
 " We command that in all these localities civil and military examinations 
 shall be suspended during a period of five years, and We order all governors-
 
 292 CHINA TREATIES AND AGREEMENTS 
 
 general, governors, and examiners of the aforesaid provinces to act in con- 
 iormity and to publish proclamations. 
 " Respect this ! " 
 
 Correct copy. A. d'Anthouard. 
 
 B, Kroupensky, 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 9. 
 
 IMPERIAL EDICT of 18th of June, 1901 {Translation). 
 
 Edict received by telegraph from Hsi-an-Fu the 3d day of the 5tl. moon 
 (18th of June, 1901): 
 
 We confer on Na-tung, second Vice-President of the Board of Finances, 
 the official button of the first rank, and we designate him as special Envoy to go 
 to Japan and to there respectfully discharge the mission We entrust to him. 
 Respect this! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 10. 
 
 List of cemeteries situated in the neighborhood of Peking and zvhich have been 
 
 desecrated. 
 
 British cemetery One 
 
 French cemeteries Five 
 
 Russian cemetery One 
 
 Total Seven 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 11. 
 
 IMPERIAL EDICT of the 25th of August, 1901 {Translation). 
 
 We command all Tartar Generals, Governors general, and Governors of 
 provinces, as well as the Customs taotais, to forbid, in the first place for a period
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 293 
 
 of two years, the importation of implements of war as well as of material serving 
 exclusively in their manufacture and of foreign origin. 
 Inform the ministry concerned. 
 Respect this ! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 12. 
 
 Despatch of Prince Ch'ing and Li Hung-chang to M. de Cologan, Minister of 
 Spain, Doyen of the Diplomatic Body {29 May, 1901) (Translation). 
 
 The 12th day of the 4th moon of the 27th year of Kuang-hsu (29th May, 
 1901). 
 
 Official Reply. 
 
 The 7th day of the 4th moon of the present year (24 May, 1901), we re- 
 ceived from Your Excellency the following official despatch : 
 
 " I have the honor to acknowledge to Your Highness and Your Excellency 
 receipt of the letter which you were pleased to send me in reply to my com- 
 munication dated May 7th concerning the indemnities. In the letter to which 
 Your Highness and Your Excellency have just replied we informed you that 
 the approximate figure of the expenses incurred and of the losses sustained by 
 the Powers amounted to the sum of 450 millions of taels, calculated to the 1st 
 of July of the current year. 
 
 " In reply to this communication Your Highness and Your Excellency have 
 informed me that the Chinese Government proposed to pay off this sum to the 
 powers by monthly payments of 1,250,000 taels during 30 years. 
 
 " The Representatives of the Powers have not failed to transmit this pro- 
 posal to their Governments. But they must call the attenion of Your Highness 
 and Your Excellency to the fact that the total of the payments proposed by the 
 Chinese Government only represents the capital of the sum mentioned, without 
 the question of interest having been taken account of. 
 
 " I consquently beg Your Highness and Your Excellency to be so kind as to 
 inform us as soon as possible of the intention of the Chinese Government in this 
 respect." 
 
 In considering in a previous despatch the question of indemnities, we ex- 
 plained to your Excellency the penury of the Chinese treasury. 
 
 In your last communication Your Excellency is pleased to call our attention 
 to the fact that the annual payments of fifteen millions of taels which we pro- 
 posed only represent the capital, and you now call our attention to the question 
 of interest. 
 
 As we, on our side, had already considered that besides the capital there also 
 had to be taken into consideration the question of annual interest at 4 per cent, 
 we had already, by telegram, submitted to the Throne proposals on this subject,
 
 294 
 
 CHINA TREATIES AND AGREEMENTS 
 
 and in reply we have received an Imperial Edict, stating that " the figure of 
 four hundred and fifty millions of indemnities to be paid the Powers, with inter- 
 est at 4 per cent, is approved," and we are commanded to take the necessary 
 measures to carry out this decision. 
 
 We have, therefore, only to comply with the orders of the Throne. 
 
 Nevertheless this obliges us to recall to Your Excellency that the financial 
 resources of China are so restricted that nothing more can be taken from them 
 possibly beyond the fifteen millions of taels which we have already proposed to 
 Your Excellency to devote specially to the payment of indemnities, but as this 
 sum must not only furnish payment of the capital, but also that of interest, we 
 have no other alternative to propose than to prolong the terms of payments, 
 which we had in the first place fixed at 30 years, in such a way that the instal- 
 ments paid during the first period of this term thus extended shall be considered 
 as destined to extinguish the capital, while those made during the second period 
 shall be applied to liquidating the interest account, after which all payments 
 would cease through the extinction of the debt. The Imperial Maritime Cus- 
 toms, already entrusted as we suggested, with the payments of the capital, 
 would likewise be entrusted with the payments on account of interest. As to the 
 amount of the annual interest, it would be understood that it would decrease 
 proportionately every year, according to the progressive reduction of the capital. 
 
 We have the honor to request Your Excellency to kindly inform us what 
 you think of the plan we suggest above to pay off both capital and interest, or 
 if in your opinion it would not be better to consider a portion of the fifteen mil- 
 lions paid annually as an instalment on the capital to be paid off, and the balance 
 as an instalment on the interest. These details require a careful examination, 
 and demand a previous and full understanding between the parties. || 
 
 China having thus shown its good will in assenting to the demands of the 
 Powers on the question of the indemnity, and in taking all the necessary steps 
 to insure an integral payment of it, we hope to have soon the satisfaction of 
 learning that the Powers are in a position to fix an early date for the evacuation. 
 
 We have the honor to request Your Excellency to kindly communicate the 
 above to the Representatives of the Powers. 
 
 Correct copy. 
 
 A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 
 G. Bohlen-Halbach. 
 
 II See Note 6 to this document, post, p. 319.
 
 296 
 
 CHINA TREATIES AND AGREEMENTS 
 
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 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 
 
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 298 CHINA TREATIES AND AGREEMENTS 
 
 Annex No. 14. 
 Description of the boundaries of the Legation quarter at Peking.^ 
 
 Point 1 is situated on the south wall of the Tartar City an hundred feet to 
 the east of the east side of the superstructure of the Ch'ien Men. From this 
 point the boundary runs for a distance of two hundred and sixteen feet, fol- 
 lowing a line nearly due north, as far as 
 
 Point 2, southeast corner of the balustrade in white stone which encloses 
 the open paved space before the principal entrance of the Imperial City. 
 
 From this point the boundary runs for a length of three hundred and ten 
 feet along the east side of this balustrade, nearly directly north until 
 
 Point 3, situated on the north side of the road which forms a continua- 
 tion of Legation street, and is at the intersection of the boundary line coming 
 from 2 and of a line drawn along the continuation of the north side of the 
 Legation street. 
 
 From this point the line runs for a length of six hundred and forty-one 
 feet and a half (measured around and in the angles of the wall) along the 
 north side of Legation street as far as 
 
 Point 4, at one hundred and forty-six to the west of the corner (south- 
 west) of Gaselee road, measured along the north of Legation street. 
 
 From this point the boundary runs for a length of two thousand one hun- 
 dred and fifty-two feet (measured around and in the angles of the buildings) 
 in a general northerly direction, but following the line of the buildings now 
 existing and, in the open spaces between the buildings, a line parallel to the 
 general line of the buildings on the left side of Gaselee road and at one hundred 
 and fifty-seven feet on the west side of the west side of the gate which leads 
 from Gaselee road to the exterior court of the Imperial City, as far as 
 
 Point 5, on the south side of the south wall of the interior court of the 
 Imperial City, and at one hundred and fifty-seven feet from the west side of 
 the gate at the end of Gaselee road. 
 
 From this point the line runs for a distance of one thousand two hundred 
 and eighty-eight feet nearly directly toward the east, along the wall as far as 
 
 Point 6, southeast corner of the exterior court of the Imperial City. 
 
 From there the line runs nearly directly north along the wall for a distance 
 of two hundred and eighteen feet measured in a straight line to 
 
 Point 7, northeast corner of the exterior court. 
 
 From there the line runs nearly due east for a distance of six hundred and 
 eighty-one feet to 
 
 Point 8, southeast corner of the wall of the Imperial City. 
 
 From there the boundary runs nearly due north for a distance of sixty-five 
 feet along the wall to 
 
 Point 9, at sixty-five feet from the southeast corner of the wall of the 
 Imperial City. 
 
 H See Plane-table Survey, opposite.
 
 PEKING LEGA 
 
 PLANE T 
 
 1 00 
 
 l""l' 
 
 Scale 
 
 100 200 
 
 BOUNDARY LINE 
 ROADS
 
 3N BOUNDARIES 
 
 LE SURVEY 
 
 JK 
 
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 HATA 
 MEN
 
 NUMBER 1901/3 : SEPTEMBER 7, 1901 : ANNEXES 299 
 
 From there the boundary runs direct due east for a distance of three 
 thousand and ten feet to 
 
 Point 10, on the west side of Ketteler Strasse and at three hundred feet 
 from the angle of intersection of Ketteler Strasse and the Viale Italia. 
 
 From this point the boundary runs nearly due south along the west side 
 of Ketteler Strasse to 
 
 Point 11, northwest corner of the archway of the Hatamen, on the south 
 wall of the Tartar City. 
 
 From there the boundary runs along the wall and includes the west ramp of 
 the Hatamen to 
 
 Point 12, on the wall at one hundred feet to the west of the superstructure 
 of the Hatamen. 
 
 From Point 12, the boundary follows the south side of the wall, as shown 
 in the plan, including in it the bastions and joins 1. 
 
 The points of the plan which have been fixed are the following: 
 
 A. Point at one hundred and seven feet from the superstructure of the 
 Chien-Men, measured to the east along the north side of the crest of the wall 
 of the Tartar City. 
 
 B. Point on the top of the north edge of the wall of the Tartar City, 
 exactly above the middle of the canal for the drainage of water. 
 
 C. Northwest corner of the superstructure of the Hatamen. 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky, 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 15. 
 IMPERIAL EDICT of February 1, 1901. 
 
 In all the provinces bandits called for followers and established antiforeign 
 societies. Various edicts were issued formally forbidding this. We repeated 
 this many times, but, nevertheless, in late years there have been in all the Shan- 
 tung districts sects under the name of Ta-tao-huei (Great Knives Society) and 
 I-ho-chuan (Boxers), which spread everywhere, with the object of willful 
 murder and theft. Little by little they reached the Chi-li territory and suddenly 
 entered the capital, where they set fire to the foreign establishments and attacked 
 the Legations. Crimes were also committed against neighboring countries and 
 offenses against the general interest. For not having assured protection we 
 have incurred heavy responsibilities. 
 
 You people who in ordinary times nourish yourselves and live from the 
 products of this land, and who have all been loaded with the Empire's favors 
 — you have, however, dared to incite these bandits with the desire to fight, to 
 teach methods for casting spells, and to devote themselves to false practices. 
 You have rashly resisted your officials, whom you have massacred ; you have
 
 300 CHINA TREATIES AND AGREEMENTS 
 
 assassinated foreigners, and then you have been the cause of unprecedented 
 calamities, which above all else have plunged your Sovereign and your fathers 
 in grief. 
 
 We can not think of what has been done without feeling a still deeper 
 resentment. We have already formally ordered the Commanders in chief of all 
 the regions to use their most strenuous efforts to destroy these societies. It is 
 incumbent that the root of the evil be suppressed, and the Princes and Ministers 
 who have lent their support to the Boxers shall suffer the heaviest penalties 
 according to their crimes, and in order to inspire fear, all civil and military 
 examinations shall be suspended during five years in all cities where foreigners 
 were massacred or suffered cruel treatment. 
 
 Fearing lest the ignorant rural populations may not hear (of these punish- 
 ments), new and severe prohibitions shall be specially made in order to avoid 
 the execution of people who have not been notified. 
 
 You, soldiers and people, should know that it is formally forbidden by law 
 to organize or belong to secret societies. Our ancestors have never shown the 
 slightest indulgence in the repression of societies of malefactors. 
 
 Moreover, the foreign Powers are all friendly countries, the Christians are 
 children of our blood w'hom the Court regards with a same kindness, and It 
 could not allow different sentiments to be displayed towards them. All Chinese, 
 whether Christians or not, who may be illtreated, should complain to the 
 authorities and wait until a fair and equitable judgment is rendered. How can 
 you lightly believe all the rumors which have been spread? How can you dis- 
 regard the penal laws? 
 
 Then, when all is lost, the clever ones save themselves by flight and the 
 innocent are put to death. The law is slow to pardon, and all that has hap- 
 pened is really very regrettable. From the publication of this present edict, 
 each one must reform and repent him of the teaching he has received. 
 
 If hardened and incorrigible malefactors should again secretly organize 
 antiforeign societies, they shall be punished by death, as well as those belonging 
 to these societies. They shall not be shown the slightest mercy. 
 
 The Tartar Generals, Governors-general, Governors, and High provincial 
 Authorities whose duty it is to direct the population, should give explicit instruc- 
 tions to their subordinates to publish severe proclamations and to have the 
 present edict printed on yellow paper, which shall be posted in all parts of 
 the Empire. It is important that all families be notified, and urged to good 
 conduct, and that all be informed that the will of the Court is that everyone 
 should thoroughly understand that punishments will be meted out, in order 
 to avoid the necessity of inflicting other punishments. 
 
 Let this edict be made known to all in the Empire. 
 
 Respect this ! 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 301 
 
 Annex No. 16. 
 IMPERIAL EDICT of December 24, 1901 (Translation). 
 
 It has been stipulated in the treaties concluded between China and the 
 Foreign Powers that the citizens of these Powers shall be allowed to penetrate 
 into the interior. 
 
 The Court, in order to assure and maintain relations with other countries, 
 has already published decrees ordering that most sincere efforts be made in 
 the provinces to assure protection. Nevertheless, the local authorities having 
 gradually grown lax (in the exercise of their duties), malefactors have caused 
 trouble, and attacks have been directed against foreigners. Similar incidents 
 have repeatedly occurred. 
 
 We realize that our ability was too limited to reform the ignorant people, 
 and consequently we have made very grievous mistakes. In ordinary times, not 
 one of the local officials has been able to make understood European affairs, 
 and none have comprehended the importance of foreign relations. Consequently 
 the conflagration spread everywhere, threatening the Empire, and, if they reflect, 
 they will find they have cause for uneasiness. 
 
 Henceforth each one of you must strive to overcome his resentment and 
 to lay aside his prejudices. You should know that the maintenance of friendly 
 relations with foreign countries has in all times been a fundamental law. 
 People coming to China from afar, whether as merchants to exchange their 
 products, or as travelers to increase their scientific knowledge, or yet as mis- 
 sionaries to preach religion with the object of exhorting the people to do good, 
 have crossed mountains and seas at the risk of great fatigue. 
 
 Since China passes for a civilized country, it should practice the duties 
 of a host toward its guests. Moreover, the Chinese whp have gone abroad in 
 recent years number at least several hundreds of thousands. The safety of 
 their persons and property depends upon the guaranty assured them by the 
 Powers, who have given them their protection. How could we continue to 
 treat their citizens differently? 
 
 We again command all the responsible High civil and military Authorities 
 of all the provinces to order their subordinates to protect, in the most efficacious 
 manner, the agents and nationals of the foreign Powers who may enter within 
 their districts. In case daring malefactors should urge to illtreat and massacre 
 foreigners, order must be restored immediately and the guilty parties arrested 
 and punished without delay. No delay should occur. If, owing to Indifference, 
 or rather of voluntary tolerance, great calamities take place, or if treaties should 
 be violated and no immediate steps taken to make reparation or inflict punish- 
 ment, the Governors-general, Governors, and the provincial or local Officials 
 responsible will be removed and shall not be reappointed to other offices in other 
 provinces, or hope to be reinstated or receive any further honors.
 
 302 CHINA TREATIES AND AGREEMENTS 
 
 The present decree must be printed and published to warn the officials 
 and put an end to all shameful customs. 
 Respect this ! 
 Correct copy. A. d'Anthouard, 
 
 B. Kroupensky. 
 
 Reginald Tower. 
 
 G. Bohlen-Halbach. 
 
 Annex No. 17. 
 Regulations for the improvement of the course of the IVhangpu* 
 
 I. A River Conservancy Board is established at Shanghai for the Whangpu 
 river. 
 
 II. The Board shall have the twofold duty of acting as agent for the 
 straightening and improvement of the river, and as controlling agent. 
 
 III. The jurisdiction of the Board shall extend from a line drawn from 
 the lower limit of the Kiang-nan Arsenal towards the mouth of Arsenal Creek, 
 to the red buoy in the Yangtze. 
 
 IV. The Board shall consist of: (a) The Taotai ; (b) the Commissioner of 
 Customs; (c) two members elected by the Consular Body; (d) two members 
 of the General Chamber of Commerce of Shanghai, elected by the committee 
 of the said Chamber; (e) two members representing shipping interests, elected 
 by shipping companies, commercial firms, and the merchants the total of whose 
 entrances and clearances at Shanghai, Woosung, and other ports on the 
 Whangpu exceeds 50,000 tons per annum ; (/) a member of the municipal 
 Council of the International Settlement ; (g) a member of the municipal 
 Council of the French Concession, and (h) a representative of each country 
 the total tonnage of whose ships entering and clearing at Shanghai and any 
 other port of the Whangpu exceeds two hundred thousand tons a year. 
 
 V. The ex officio members shall hold office as long as they fill the position 
 by virtue of which they sit on the Board. 
 
 VI. The representatives of the muncipal Councils and of the Chamber of 
 Commerce shall be elected for a period of one year. They may be immediately 
 reelected. 
 
 The term of office of the members to be designated by the Governments 
 (provided under paragraph h) shall also be one year. 
 
 The term of the other members is for three years. They may be immedi- 
 ately reelected. 
 
 VII. In case of a vacancy during a term, the successor of the out-going 
 member shall be designated for one year or for three years, according to the 
 class to which he belongs. 
 
 VIII. The Board shall elect its Chairman and Vice-Chairman from 
 
 * These Regulations have been replaced by the Huangpu Conservancy Agreement of 
 September 27, 1905 (No. 1905/10, post).
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 303 
 
 amongst its members for a term of one year. If there is no majority at the 
 election of Chairman, the Senior Consul shall be requested to give a casting 
 vote. 
 
 IX. In case of the absence of the Chairman the Vice-Chairman shall take 
 his place. If both of them are absent the members shall choose amongst them- 
 selves a President for the occasion. 
 
 X. In all meetings of the Board, if votes are equally divided, the Chair- 
 man shall have a casting vote. 
 
 XI. Four members form a quorum. 
 
 XII. The Board shall appoint the officials and employees deemed neces- 
 sary for carrying out the works and enforcing its regulations ; it shall fix their 
 salaries, wages, and gratuities, and shall pay them out of the funds placed at 
 its disposal, and it may make regulations and take every measure necessary 
 concerning its staff, which it can dismiss at pleasure. 
 
 XIII. The Board shall decide on the necessary steps for the regulation 
 of traffic, including the placing of moorings in the river and the berthing 61 
 vessels within the limits indicated in Article III, and on all water courses 
 (such as the Soochow Creek and others) passing through the French Conces- 
 sion or the International Settlement at Shanghai and the foreign quarter at 
 Woosung, as well as on all the other creeks emptying into the river, for a 
 distance of 2 English miles above their mouths. 
 
 XIV. The Board shall have power to expropriate the private moorings 
 and to establish a system of public moorings in the river. 
 
 XV. The authorization of the Board shall be necessary to carry out any 
 dredging, to build bunds, to construct jetties, or to place pontoons and hulks in 
 the section of the river mentioned in Article XIII. The Board may, at its 
 discretion, refuse ^uch authorization. 
 
 XVI. The Board shall have full power to remove all obstacles in the 
 river, or the above-mentioned creeks, and to recover, if necessary, the cost 
 of so doing from those responsible. 
 
 XVII. The Board shall have control of all floating lights, buoys, beacons, 
 landmarks, and light signals within the section of the river and within the 
 creeks mentioned in Article XIII, as well as over such marks on the shore as 
 may be necessary for the safe navigation of the river, with the exception of 
 light-houses, which shall remain subject to Article XXXII of the treaty of 1858 
 between Great Britain and China. 
 
 XVIII. The improvement and conservancy works of the Whangpu shall 
 be entirely under the the technical control of the Board, even should the carry- 
 ing out of them necessitate works beyond the limits of its jurisdiction. In 
 this case the necessary orders will be transmitted by and the work will be done 
 with the consent of the Chinese authorities. 
 
 XIX. The Board shall receive and disburse all the funds collected for the 
 works and take, in conjunction with the competent authorities, all proper 
 and efficacious measures to ensure the collection of the taxes and the enforce- 
 ment of the regulations. 
 
 XX. The Board shall appoint the Harbour Master and his staff. This
 
 304 CHINA TREATIES AND AGREEMENTS 
 
 department shall act, within the limits of the powers assigned to the board, in 
 the section of the river indicated in Article XIII. 
 
 XXI. The Board shall have authority to organize a police and watch 
 service to ensure the execution of its regulations and orders. 
 
 XXII. The Board shall have the direction and control of the Shanghai 
 (Lower Yangtze) pilot service. Licenses for pilots for ships bound for 
 Shanghai shall only be issued by the Board and at its discretion. 
 
 XXIII. In case of infractions of its regulations, the Board shall sue 
 oflFenders in the following way: Foreigners, before their respective consuls or 
 competent judicial authority ; Chinese or foreigners whose Governments are 
 not represented in China, in the mixed Court, in the presence of a foreign 
 assessor. 
 
 XXIV. All suits against the Board shall be brought before the Court of 
 Consuls at Shanghai. The Board shall be represented in suits by its secretary. 
 
 XXV. Members of the Board and persons employed by it shall not incur 
 any personal responsibility for the votes and acts of the Board, for contracts 
 made or expenses incurred by the said body, when the said votes, acts, con- 
 tracts, and expenses concern the carrying out or the enforcement, under the 
 authority or by order of the Board or of one of its branches, of the regulations 
 enacted by said body. 
 
 XXVI. Besides the provisions mentioned in Article XIII of the present 
 annex, the Board shall have power to enact, within the limits of its competency, 
 all necessary ordinances and regulations, and to fix fines for the violation 
 thereof. 
 
 XXVII. The ordinances and regulations mentioned in Article XXVI shall 
 be submitted for the approbation of the Consular Body. If two months after 
 presenting the draft of the proposed ordinances and regulations the Consular 
 Body has made no objection or suggested no modification, it shall be con- 
 sidered as approved and shall come into force. 
 
 XXVIII. The Board shall have power to acquire by purchase the lands 
 necessary for carrying out the works of improvement and conservancy of 
 the Whangpu and to dispose of them. 
 
 If, for this purpose, it shall be deemed necessary to expropriate land, the 
 rules laid down in Article VI (a) of " The Land Regulations for the Foreign 
 Settlement of Shanghai North of the Yang-king-pang " shall be followed. 
 The price shall be fixed by a Committee consisting of, first, a person chosen 
 by the authority to whose jurisdiction the owner is subject; second, one chosen 
 by the Board, and, third, one chosen by the Dean of the Consular Corps. 
 
 XXIX. Riparian owners shall have the refusal of all land made in front 
 of their properties by the reclamation carried out for the improvement of the 
 waterways in question. The purchase price of these lands shall be fixed by 
 a Committee composed in the same manner as provided for in Article XXVIII. 
 
 XXX. The revenues of the Board are to be derived from — 
 
 (a) An annual tax of one-tenth of 1 per cent (0.1 per cent) on the 
 assessed value of all lands and houses in the French Concession and the 
 International Settlement.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 305 
 
 (b) A tax of equal amount on all property with water frontage on the 
 Whangpu, from a line drawn from the lower limit of the Kiang-nan Arsenal 
 toward the mouth of Arsenal Creek to the place where the Whangpu empties 
 into the Yangtze. The assessed value of this property shall be fixed by the 
 Committee mentioned in Article XXVIII. 
 
 (c) A tax of five candereens per ton on all ships of non-Chinese type 
 and of a tonnage superior to 150 tons entering or leaving the port of Shanghai, 
 Woosung, or any other port on the Whangpu. 
 
 Ships of non-Chinese type of 150 tons and under shall pay a quarter of 
 the above-mentioned tax. These taxes shall only be leviable on each ship once 
 every four months, irrespective of the number of its entrances and clearances. 
 
 Foreign-built ships navigating the Yangtze and only stopping at Woosung 
 to take their river papers shall be exempted from the taxes above mentioned, 
 on condition that on their way up or down they shall not carry on any com- 
 mercial transactions at Woosung. They shall, however, be allowed to take on 
 water and supplies at Woosung. 
 
 (d) A tax of one-tenth of 1 per centum (0.1 per cent) on all merchandise 
 passing through the customs at Shanghai, Woosung, or any other port on the 
 Whangpu. 
 
 (e) An annual contribution from the Chinese Government equal to that 
 supplied by the various foreign interests. 
 
 XXXI. The collection of the taxes enumerated in Article XXX shall be 
 made through the medium of the following authorities : 
 
 Tax a, by the respective Municipalities. 
 
 Tax b, to be collected from persons under the jurisdiction of Governments 
 represented in China by their respective Consuls ; the taxes to be collected from 
 Chinese or from persons whose Governments are not represented in China by 
 the Taotai. 
 
 Taxes c and d, by the Imperial Maritime Customs. 
 
 XXXII. Should the total annual revenues of the Board not be sufficient 
 for the payment of interests and the amortization of the capital to be borrowed 
 for carrying out the works, for keeping up the completed works, and for the 
 service in general, the Board shall have the power to increase in the same pro- 
 portion the various taxes on shipping, on land and houses, and on trade, to a 
 figure sufficient to supply its recognized needs. This eventual increase would 
 apply in the same proportion to the contribution of the Chinese Government 
 mentioned in paragraph e of Article XXX. 
 
 XXXIII. The Board shall give notice to the Superintendent of Southern 
 Trade and to the Consular Body of the necessity for the increase referred to 
 in Article XXXII. Such increase shall only come into force after its approval 
 
 by the Consular Body at Shanghai. 
 
 XXXIV. The Board shall submit to the Superintendent of Southern 
 Trade and to the Consular Body at Shanghai, within six months after the 
 closing of each financial year, its annual accounts, accompanied by a detailed 
 report on the general management and the receipts and expenditures during 
 the preceding twelve months. This report shall be published.
 
 306 CHINA TREATIES AND AGREEMENTS 
 
 XXXV. If the exact and published accounts of receipts and expenditures 
 show a balance of receipts over expenses, the taxes mentioned in Article XXX 
 shall be proportionately reduced by the Board and the Consular Body at 
 Shanghai acting conjointly. The eventual reduction shall apply in the same 
 proportion to the contribution of the Chinese Government referred to in 
 paragraph e of Article XXX. 
 
 XXXVI. At the expiration of the first term of three years the signatories 
 shall examine conjointly whether the provisions contained in the present annex 
 require revision. A new revision can take place every three years under the 
 same conditions. 
 
 XXXVII. The regulations of the Board within the limits provided for in 
 Article XIII, and subject to the approbation of the Consular Body at Shanghai, 
 shall be binding on all foreigners. 
 
 Done at Peking September 7th, 1901. 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 
 Reginald Tower. 
 
 G. Bohlen-Halbach. 
 
 Annex No. 18. 
 IMPERIAL EDICT of the 24th July, 1901 {Translation). 
 
 The 9th day of the 6th moon the Grand Chancellery received the following 
 Edict : 
 
 " The creation of offices and the determination of their duties has until 
 now been regulated by the requirements of the times. Now, at the present time, 
 when a new treaty of peace is concluded, international affairs take the first 
 place among important business, and it is more than ever necessary to have 
 recourse to competent men to devote themselves to all that relates to estab- 
 lishing friendly relations and confidence in speech. 
 
 " The Office of Foreign Affairs, formerly created to treat international 
 questions, has been in existence, it is true, for years, but, in view of the 
 Princes and Ministers composing it only discharging for the most part their 
 functions accessorily with others, they could not devote themselves to them 
 exclusively. It is naturally, therefore, proper to create special functions, so 
 that each one may have his particular attributions. 
 
 " We command, in consequence, that the Office of Foreign Affairs (Tsung- 
 li-ko kuo shih-wu ya-men) be changed into a Ministry of Foreign Affairs 
 (Wai-wu Pu) and take rank before the six Ministries. And we designate 
 Yi-K'uang, Prince Ch'ing of the first rank, as President of the Ministry of 
 Foreign Affairs. 
 
 " Wang Wen-shao, Grand Secretary of State of the Ti-jen Ko, is 
 appointed Assistant-President of the Ministry of Foreign Aft'airs. Ch'u 
 Hung-chi, President of the Board of Works, is transferred with the same 
 rank to the Ministry of Foreign Affairs, in which he is appointed Assistant-
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: ANNEXES 307 
 
 President. Hsu Shou-p'eng, Director of the Imperial Stud, and Lien-fang, 
 Expectant Metropolitan Subdirector of the third or fourth rank, are appointed 
 first and second Directors (or Assistant Secretaries). 
 
 " As regards the fixing of the personnel, the rules to be followed in its 
 choice, the salaries to be given the Ministers, Directors, and other Agents, We 
 command the Councilors of State to come to an agreement with the Board of 
 Civil Office and to promptly submit to Us their conclusions in a report. 
 " Respect this." 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Annex No. 19. 
 MEMORANDUM on the ceremonial to be followed in solemn audiences. 
 
 1°. Solemn audiences to be given by His Majesty the Emperor of China 
 to the Diplomatic Body or to Representatives of the Powers separately shall 
 take place in the palace hall called " Ch'ien-ch'ing Kung." 
 
 2°. In going to or coming back from these solemn audiences the Repre- 
 sentatives of the Powers shall be carried in their sedan chairs as far as outside 
 of the Ching-yun gate. At the Ching-yun gate they will get out of the sedan 
 chair in which they have come and will be carried in a little chair (i chiao) as 
 far as the foot of the steps of the Ch'ien-ch'ing gate. 
 
 On arriving at the Ch'ien-ch'ing gate the Representatives of the Powers 
 shall get out of their chairs, and shall proceed on foot into the presence of 
 His Majesty in the Ch'ien-ch'ing Kung hall. 
 
 When departing the Representatives of the Powers shall return to their 
 residences in the same manner as that in which they arrived. 
 
 3°. When a Representative of a Power shall have occasion to present to 
 His Majesty the Emperor his letters of credence or a communication from the 
 Head of the State by whom he is accredited, the Emperor shall cause to be 
 sent to the residence of said Representative, to bear him to the Palace, a sedan 
 chair with yellow trimmings and tassels, such as are used by the Princes of 
 the Imperial family. The said Representative shall be taken back to his resi- 
 dence in the same manner. An escort of troops shall likewise be sent to the 
 residence of said Representative to accompany him going and returning. 
 
 4°. When presenting his letters of credence or communication from the 
 Head of the State by whom he is accredited, the Diplomatic Agent, while bear- 
 ing said letters or communications, shall pass by the central openings of the 
 Palace doors until he has arrived in the presence of His Majesty. On returning 
 from these audiences he will comply, as regards the doors by which he may 
 have to pass, with the usages already established at the Court of Peking for 
 audiences given to Foreign Representatives. 
 
 5°. The Emperor shall receive directly into his hands the letters and com-
 
 308 CHINA TREATIES AND AGREEMENTS 
 
 munications above mentioned which the Foreign Representatives may have to 
 hand to him. 
 
 6°. If His Majesty should decide upon inviting to a banquet the Rep- 
 resentatives of the Powers it is well understood that this banquet shall be given 
 in one of the halls of the Imperial Palace and that His Majesty shall be 
 present in person. 
 
 7°. In brief, the ceremonial adopted by China as regards Foreign Rep- 
 resentatives shall, in no case, be different from that which results from perfect 
 equality between the Countries concerned and China, and without any loss 
 of prestige on one side or the other. 
 
 Correct copy. A. d'Anthouard. 
 
 B. Kroupensky. 
 Reginald Tower. 
 G. Bohlen-Halbach. 
 
 Note 1. 
 
 In connection with this Protocol, see Russo-Chinese Convention in regard to Manchuria, 
 April 8 1902 (No. 1902/3) and Anglo-Chinese Agreement for the restoration of the Pe- 
 king-Shanhaikuan Railway, April 29, 1902 (No. 1902/4, post). Consult also For. Rel. of 
 the U. S.. 1900, and 1901 (Appendix) ; Moore's Digest of International Law, vol. 5, pp. 
 476-534; China, Nos. 3 and 4 (1900) and Nos. i to 7 iiQOi). 
 
 During the so-called Boxer disturbances. Secretary Hay defined the attitude of the 
 American Government in the following telegraphic circular to American diplomatic 
 representatives for communication to the Governments concerned, under date of July 3, 
 1900: 
 
 Secretary Hay's Circular concerning the Boxer Crisis. — ^July 3, 1900. 
 
 " Department of State, 
 "Washington, July 3, igoo. 
 
 " In this critical posture of affairs in China it is deemed appropriate to define the 
 attitude of the United States as far as present circumstances permit this to be done. 
 We adhere to the policy initiated by us in 1857 of peace with the Chinese nation, of fur- 
 therance of lawful commerce, and of protection of lives and property of our citizens by 
 all means guaranteed under extraterritorial treaty rights and by the law of nations. If 
 wrong be done to our citizens we propose to hold the responsible authors to the uttermost 
 accountability. We regard the condition at Peking as one of virtual anarchy, whereby 
 power and responsibility are practically devolved upon the local provincial authorities. So 
 long as they are not in overt collusion with rebellion and use their power to protect foreign 
 life and property, we regard them as representing the Chinese people, with whom we seek 
 to remain in peace and friendship. The purpose of the President is, as it has been hereto- 
 fore, to act concurrently with the other Powers ; first, in opening up communication with 
 Peking and rescuing the American officials, missionaries, and other Americans who are 
 in danger ; secondly, in affording all possible protection everywhere in China to American 
 life and property ; thirdly, in guarding and protecting all legitimate American interests ; 
 and fourthly, in aiding to prevent a spread of the disorders to the other provinces of the 
 Empire and a recurrence of such disasters. It is of course too early to forecast the means 
 of attaining this last result; but the policy of the Government of the United States is to 
 seek a solution which may bring about permanent safety and peace to China, preserve 
 Chinese territorial and administrative entity, protect all rights guaranteed to friendly 
 Powers by treaty and international law, and safeguard for the world the principle of equal 
 and impartial trade with all parts of the Chinese Empire. 
 
 " You will communicate the purport of this instruction to the Minister for Foreign 
 Affairs. " Hay." 
 
 (For. Rel. of the U. S., 1901, Appendix re "Affairs in China," p. 12.) For the replies 
 of the several Powers thus addressed, see Moore's Digest of International Law, vol. 5, 
 p. 482, or Am. Journal of Int. Law, Sxipplemcnt, 1907, p. 386.
 
 NUMBER 1901/3: SEPTEAIBER 7, 1901: NOTES 309 
 
 Note 2. 
 
 The following are translations (as printed in Rockhill, 63-66) of the Joint Note 
 referred to in the preamble to the Protocol (p. 279), and of the reply thereto: 
 
 Joint Note regarding Conditions for Re-establishment of normal relations between 
 China and the Powers. — December 22, 1900, and January 16, 1901. 
 
 " (1) Joint note signed by the diplomatic representatives at Peking of Germany, Austria- 
 Hungary, Belgium, Spain, the United States, France, Great Britain. Italy, Japan, the 
 Netherlands, and Russia, embodying conditions for reestablishment of normal rela- 
 tions with China: Signed at Peking December 22, 1900; handed to the Chinese 
 Plenipotentiaries, Yi K'uang (Prince Ch'ing) and Li Hung-chang, on December 24, 1900. 
 
 " [Translation from French.] 
 
 " During the months of May, June, July, and August of the present year serious 
 disturbances broke out in the northern provinces of China and crimes unprecedented in 
 human history — crimes against the law of nations, against the laws of humanity, and 
 against civilization — were committed under peculiarly odious circumstances. The principal 
 of these crimes were the following : 
 
 " 1. On the 20th of June His Excellency Baron von Ketteler, German ]\Iinister, 
 proceeding to the Tsungli Yamen, was murdered while in the exercise of his official 
 duties by soldiers of the regular army, acting under orders of their chiefs. 
 
 " 2. The same day the foreign legations were attacked and besieged. These attacks 
 continued without intermission until the 14th of August, on which date the arrival of 
 foreign troops put an end to them. These attacks were made by regular troops, who 
 joined the Boxers, and who obeyed orders of the Court, emanating from the Imperial 
 Palace. At the same time the Chinese Government officially declared by its representatives 
 abroad that it guaranteed the security of the legations. 
 
 "3. The 11th of June Mr. Sugiyama, Chancellor of the Legation of Japan, in the dis- 
 charge of an official mission, was killed by regulars at the gates of the city. At Peking 
 and in several provinces foreigners were murdered, tortured, or attacked by Boxers and 
 regular troops, and only owed their safety to their determined resistance. Their establish- 
 ments were pillaged and destroyed. 
 
 " 4. Foreign cemeteries, at Peking, especially, were desecrated, the graves opened, the 
 remains scattered abroad. These events led the foreign Powers to send their troops to 
 China in order to protect the lives of their Representatives and their nationals, and to 
 restore order. During their march to Peking the Allied Forces met with the resistance 
 of the Chinese armies and had to overcome it by force. China having recognized her 
 responsibility, expressed her regrets, and manifested the desire to see an end put to 
 the situation created by the disturbances referred to, the Powers have decided to accede 
 to her request on the irrevocable conditions enumerated below, which they deem indis- 
 pensable to expiate the crimes committed and to prevent their recurrence : 
 
 " 1. (a) Dispatch to Berlin of an extraordinary mission, headed by an Imperial 
 Prince, to express the regrets of His Majesty the Emperor of China, and of the Chinese 
 Government, for the murder of His Excellency the late Baron von Ketteler, German 
 Minister. 
 
 " (&) Erection on the place where the murder was committed of a commemora- 
 tive monument suitable to the rank of the deceased, bearing an inscription in the Latin, 
 German, and Chinese languages, expressing the regrets of the Emperor of China for 
 the murder. 
 
 "2. (a) The severest punishment in proportion to their crimes for the persons 
 designated in the Imperial decree of September 25, 1900, and for those whom the Represen- 
 tatives of the Powers shall subsequently designate. 
 
 " (&) Suspension of all official examinations for five years in all the towns where 
 foreigners have been massacred, or have been subjected to cruel treatment. 
 
 " 3. Honorable reparation shall be made by the Chinese Government to the Japanese 
 Government for the murder of Mr. Sugiyama, Chancellor of the Japanese Legation. 
 
 " 4. An expiatory monument shall be erected by the Imperial Chinese Government in 
 each of the foreign or international cemeteries which have been desecrated and in which 
 the graves have been destroyed. 
 
 " 5. Maintenance, under conditions to be settled between the Powers, of the prohibition 
 of the importation of arms as well as of material used exclusively for the manufacturing 
 of arms and ammunition. 
 
 " 6. Equitable indemnities for governments, societies, companies, and private individuals, 
 as well as for Chinese who have suffered during the late events in person or in property 
 in consequence of their being in the service of foreigners. China shall adopt financial 
 measures acceptable to the Powers for the purpose of guaranteeing the payment of said 
 indemnities and the interest and amortization of the loans. 
 
 "7. Right for each Power to maintain a permanent guard for its legation and to
 
 310 CHINA TREATIES AND AGREEMENTS 
 
 put the legation quarter in a defensible condition. Chinese shall not have the right 
 to reside in this quarter. 
 
 " 8. The Taku and other forts, which might impede free communication between 
 Peking and the sea, shall be razed. 
 
 " 9. Right of military occupation of certain points, to be determined by an under- 
 standing between the Powers, for keeping open communication between the capital and the 
 sea. 
 
 " 10. (a) The Chinese Government shall cause to be published during two years 
 in all subprefectures an Imperial decree embodying: 
 
 " Perpetual prohibition, under pain of death, of membership in any antiforeign 
 society ; 
 
 " Enumeration of the punishments which shall have been inflicted on the guilty, together 
 with the suspension of all official examinations in the towns where foreigners have 
 been murdered or have been subjected to cruel treatment. 
 
 " lb) An Imperial decree shall be issued and published everywhere in the Empire 
 declaring that all Governors-General, Governors, and Provincial or local officials shall be 
 responsible for order in their respective jurisdictions, and that whenever fresh antiforeign 
 disturbances or any other treaty infractions occur, which are not forthwith suppressed 
 and the guilty persons punished, they, the said officials, shall be immediately removed and 
 forever prohibited from holding any office or honors. 
 
 " 11. The Chinese Government will undertake to negotiate the amendments to the 
 treaties of commerce and navigation considered useful by the Powers, and upon other sub- 
 jects connected with commercial relations, with the object of facilitating them. 
 
 " 12. The Chinese Government shall undertake to reform the Office of Foreign 
 Affairs and to modify the court ceremonial relative to the reception of foreign Represen- 
 tatives in the manner which the Powers shall indicate. 
 
 " Until the Chinese Government have complied with the above to the satisfaction of the 
 Powers, the Undersigned can hold out no expectation that the occupation of Peking and the 
 province of Chihli by the general forces can be brought to a conclusion. 
 
 " Peking, December 22, 1900. 
 
 " For Germany, A. Mumm. 
 
 " For Austria-Hungary, M. Czikann, 
 
 " For Belgium, Joostens. 
 
 " For Spain, B. J. de Cologan, 
 
 " For United States of America, E. H. Conger. 
 
 " For France, S. Pichon. 
 
 " For Great Britain, Ernest Satow. 
 
 " For Italy, Salvago Raggi. 
 
 " For Japan, T. Nissr. 
 
 " For Netherlands, F. M. Knobel. 
 
 " For Russia, Michel de Giers." 
 
 " (2) Reply of the Chinese Plenipotentiaries to the joint note of December 22, 1900; Peking, 
 January 16, 1901. 
 
 " [Translation.] 
 
 " Under date of December 24, 1900, the Plenipotentiaries of Germany, Austria- 
 Hungary, Belgium, Spain, the United States, France, Great Britain, Italy, Japan, the 
 Netherlands, and Russia, have sent Us the following Note: 
 
 " [The Joint Note is here quoted textually and in its entirety] : 
 
 "We hastened to transmit the full text of this note to His Majesty the Emperor 
 who, having taken cognizance of it, rendered the following decree: 
 
 " ' We have taken cognizance of the whole of the telegram of Yi K'uang and Li 
 Hung-chang. It behooves Us to accept, in their entirety, the twelve articles which they have 
 submitted to Us.' 
 
 " Consequently, we, Ch'ing, Prince of the first rank. Plenipotentiary, President of the 
 Council of Foreign Affairs, and Li, Earl of the first rank, Su-yi, Plenipotentiary, Tutor 
 to the Heir Apparent, Grand Secretary of the Wen-hua tien Throne Hall, Minister of 
 Commerce, Superintendent of trade for the northern ports, Governor General of Chih-li, 
 
 " Declare that we accept in their entirety the twelve articles which we have been 
 requested to insure the transmission of to His Majesty the Emperor. 
 
 " In witness of which we have signed the present protocol and we transmit to the 
 foreign Plenipotentiaries a copy of the Edict of His Majesty the Emperor, bearing the 
 Imperial Seal. 
 
 " It is understood that in case of disagreement, the French text shall be authoritative. 
 
 " Peking, i6 January, igoi. (Signed) " Yi K'uang 
 
 (Prince Ch'ing). 
 
 [l. s.] "Li."
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: NOTES 
 
 311 
 
 Note 3. 
 
 The apportionment of this indemnity among the several Powers was fixed by a 
 protocol of June 14, 1902, of which the translation (from the French text as printed 
 in Negotiations de Pekin, igoo-1902: lime Partie, p. LVII) is as follows: 
 
 Protocol regarding Apportionment of the Boxer Indemnity.— June 14, 1902. 
 
 " The representatives of the Foreign Powers signatory to the Final Protocol, assembled 
 at a meeting on June 14, 1902, have declared that they accept, each in so far as concerns 
 his own Government, the division of the indemnity of 450,000,000 taels in accordance with 
 the following list : 
 
 " Percentage 
 
 Amount in Taels 
 
 Germany 
 
 Austria-Hungary 
 
 Belgium 
 
 Spain 
 
 United States 
 
 France 
 
 Great Britain \ 
 
 Portugal .... ) 
 
 Italy 
 
 Japan 
 
 The Netherlands 
 
 Russia 
 
 International Claims . ) 
 Sweden and Norway j 
 
 20.01567 
 
 .88976 
 
 1.88541 
 
 .03007 
 
 7.31979 
 
 15.75072 
 
 11.24901 I 
 
 .02050 \ 
 
 5.91489 
 
 7.73180 
 
 .17380 
 
 28.97136 
 
 .03326 
 
 .01396 
 
 j .03326 I 
 I .01396 1 
 
 11.26951 
 
 .04722 
 
 90,070,515 
 
 4,003.920 
 
 8,484,345 
 
 135,315 
 
 32.939,055 
 
 70,878,240 
 
 50,620,545 1 ^„^,^^„^ 
 
 92,250 \ 50.712,795 
 
 26,617,005 
 
 34793,100 
 
 782,100 
 
 130,371,120 
 
 •«gOi 2,2,490 
 
 Grand Total 
 
 iSgd.) 
 
 100.00000 
 
 450,000,000 
 
 " For Germany 
 
 Austria-Hungary 
 
 Belgium 
 
 Spain 
 
 United States 
 
 France 
 
 Great Britain 
 
 Italy 
 
 Japan 
 
 Netherlands 
 
 Russia 
 
 Peking, June 14, 1902. 
 
 A. V. MUMM. 
 M. C.ZIKANN. 
 
 E. DE Cartier. 
 
 Manuel de Carcer. 
 
 E. H. Conger. 
 
 Beau. 
 
 Ernest Satow. 
 
 G. Gallina. 
 
 Y. UCHIDA. 
 
 J. Loudon. 
 P. Lessar." 
 
 As, upon final adjudication by the American authorities, it was found that the claims 
 in behalf of American nationals totaled less than the amount of the indemnity apportioned 
 to the United States, a Joint Resolution (Public Resolution No. 29) to provide for the 
 remission of a portion of the Chinese indemnity was passed by the Congress of the 
 United States, and approved by the President on May 25, 1908, in the following terms : 
 
 Joint Resolution providing for Remission of a Portion of American Share of Boxer 
 
 Indemnity. — May 25, 1908. 
 
 "Resolved by the Senate and Plouse of Representatives of the United States of 
 America in Congress assembled. That the President is hereby authorized to consent to a 
 modification of the bond for twenty-four million four hundred and forty thousand seven 
 hundred and seventy-eight dollars and eighty-one cents, dated December fifteenth, nine- 
 teen hundred and six, received from China pursuant to the protocol of September seventh, 
 nineteen hundred and one. for indemnity against losses and expenses incurred by reason 
 of the so-called Boxer disturbances in China during the year nineteen hundred, so that 
 the total payment to be made by China under the said bond shall be limited to the sum 
 of thirteen million six hundred and fifty-five thousand four hundred and ninety-two 
 dollars and sixty-nine cents and interest at the stipulated rate of four per centum per an- 
 num, and that the remainder of the indemnity to which the United States is entitled under 
 the said protocol and bond may be remitted as an act of friendship, such payments and 
 remission to be at such times and in such manner as the President shall deem just : 
 Provided, That within one year from the passage of this resolution any person whose 
 claim upon the Chinese indemnity, nineteen hundred, was presented to the United States
 
 312 CHINA TREATIES AND AGREEMENTS 
 
 commissioners or to the Department of State and disallowed in whole or in part may present 
 the same by petition to the Court of Claims, which court is hereby invested with jurisdic- 
 tion to hear and adjudicate such claim, without appeal, and to render such judgments 
 de novo, or in addition to any allowance or allowances heretofore made, as, in each 
 case shall be fully and substantially compensatory for actual losses and expenses of the 
 claimant caused by the antiforeign disturbances in China during the year nineteen hundred, 
 excluding merely speculative claims or elements of damage : And provided also. That the 
 sum of two million dollars be reserved from the Chinese indemnity, nineteen hundred, 
 for the payment of such judgments, the same to be paid by the Treasurer of the United 
 States as and when they shall be certified to the Secretary of the Treasury by the said 
 court, and any balance remaining after all such claims have been adjudicated and paid 
 shall be returned to the Chinese Government in such manner as the Secretary of State 
 shall decide, and the Secretary of the Treasury is hereby authorized and directed to so return 
 the same : And provided further, That all evidence furnished by the claimants, and statements 
 made by them to the said commissioners or to the Department of State, shall be trans- 
 mitted by the said Department to the said Court of Claims and considered together with 
 such other additional testimony as may be presented by either side, and the Government 
 of the United States shall defend the said claim.s in the said court by such attorney 
 or attorneys as may be designated for such service by the Attorney-General of the 
 United States : Provided further, That in no case shall the Court of Claims award a 
 principal sum to any claimant which, together with the principal sums said claimant may 
 have already received by decision of the United States commissioners and the Department 
 of State, shall exceed the amount originally claimed by said claimant. 
 
 '• Approved, May 25, 1908." 
 
 (For. Rel. of the U. S., 1908, p. 65.) 
 
 In pursuance of this Resolution, the President on December 28th, 1908, issued the 
 following Executive Order : 
 
 Executive Order in regard to Remission of a Portion of American Share of Boxer 
 
 Indemnity. — December 28, 1908. 
 
 " Pursuant to the authority of the joint resolution of Congress to provide for the re- 
 mission of a portion of the Chinese indemnity, approved May 25, 1908, I hereby consent 
 to a modification of the bond for $24,440,778.81, dated December 15, 1906, received from 
 China pursuant to the protocol of September 7, 1901, for indemnity against losses and 
 expenses incurred by reason of the so-called Boxer disturbances in China during the year 
 1900, so that the total payment to be made by China under the said bond shall be limited 
 to the sum of $13,655,492.69 and interest at the stipulated rate of 4 per cent per annum, 
 and that the remainder of the indemnity to which the United States is entitled under the 
 said protocol and bond be remitted as an act of friendship, such payment and remission 
 to be made at the time and in the manner hereinafter provided, which I deem to be just, 
 that is to say : 
 
 " In accordance with the plan of amortization annexed to the original indemnity bond, 
 the amounts payable hereafter by China to the United States would be as set forth in the 
 schedule annexed hereto marked ' Schedule A,' and identified by the signature of the 
 Secretary of State. 
 
 " I have caused an account to be made by the Treasury Department in which the pay- 
 ments already made under the original bond are credited as against a debt of $13,655,492.69 
 with interest at 4 per cent per annum beginning July 1, 1901, in lieu of the original sum 
 specified in the bond and I find that after such credits, and including in such credits the 
 sum of $85,223.04, which it is assumed will be paid on the 1st day of January, 1909, there 
 will remain on that day to be paid and retained by the United States in satisfaction of 
 the sum of $13,655,492.69 and interest thereon, the sum of $9,644,367.60. 
 
 " It also appears by the said new account that the payment to and retention by the 
 United States of the sums specified in the paper hereto attached, marked ' Schedule B ' 
 and identified by the signature of the Secretary of State, will satisfy the principal and 
 interest of the said sum of $9,644,367.60 by the end of the period contemplated in the 
 original plan of amortization. And I direct that after the said 1st day of January, 1909, 
 from the several payments made under the said bond of December 15, 1906, in accordance 
 with Schedule A, there be retained and paid into the Treasury of the United States only 
 the sums specified in Schedule B ; and that the remainder of the said several payments 
 so made by China in accordance with Schedule A over and above the sums specified by 
 Schedule B be returned by indorsing back the drafts therefor, or otherwise, and thus 
 remitted to the Government of China. The sums to be so returned in each year will be 
 as stated in the paper hereto attached marked ' Schedule C,' identified by the signature 
 of the Secretary of State. 
 
 "The provision contained in the original bond for an adjustment of interest because 
 payments are made monthly instead of semiannually will continue to be applicable to the 
 payments of the sums specified in Schedule B.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: NOTES 
 
 313 
 
 " In witness whereof, I have caused the seal of the United States to be hereunto affixed. 
 " Done at Washington, this twenty-eighth day of December, one thousand nine hundred 
 and eight. 
 
 [seal] "Theodore Roosevelt. 
 
 " By the President : 
 " Elihu Root, 
 
 " .Secretary of State." 
 
 "SCHEDULE A 
 
 Years. 
 
 Amount due 
 
 yearly, payable 
 
 half yearly. 
 
 Monthly 
 install- 
 ments. 
 
 Years. 
 
 Amount due 
 
 yearly, payable 
 
 half yearly. 
 
 Monthly 
 install- 
 ments. 
 
 1909 
 
 $1,022,683.66 
 1,022,683.66 
 1,080,787.54 
 1,080,787.54 
 1,080,787.53 
 1.080,787.53 
 1,264,582.18 
 1,329,784.76 
 1,329,784.76 
 1,329,784.76 
 1,329,784.75 
 1,329,784.76 
 1,329,784.75 
 1,329,784.75 
 1,329.784.75 
 1,329,784.76 
 1,329,784.75 
 
 $85,223.64 
 
 85,223.64 
 
 90,065.63 
 
 90,065.63 
 
 90,065.63 
 
 90,065.63 
 
 105,381.85 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 110,815.40 
 
 1926 
 
 $1,329,784.76 
 1,329,784.75 
 1,329,784.76 
 1,329,784.75 
 1,329,784.76 
 1,329,784.75 
 1,919,967.11 
 1,919,967.10 
 1,919,967.10 
 1,919,967.11 
 1,919,967.09 
 1,919,967.09 
 1,919,967.11 
 1.919.967.10 
 1,923,374.12 
 3,407.02 
 
 $110,815.40 
 110,815.40 
 110,815.40 
 110,815.40 
 110,815.40 
 110,815.40 
 159,997.26 
 159,997.26 
 159,997.26 
 159,997.26 
 159,997.26 
 159,997.26 
 159,997.26 
 159 997 26 
 
 1910 
 
 1927 
 
 1911 
 
 1928 
 
 1912 
 
 1929 
 
 1913 
 
 1930 
 
 1914 
 
 1931 
 
 1915 
 
 1932 
 
 1916 
 
 1933 
 
 1917 
 
 1934 
 
 1918 
 
 1935 
 
 1919 
 
 1936 
 
 1920 
 
 1937 
 
 1921 
 
 1938 
 
 1922 
 
 1939 
 
 1923 
 
 1940 
 
 160 281 18 
 
 1924 
 
 Deficit 
 
 
 1925 
 
 
 
 
 
 " Schedule A referred to in the Executive order of the President, dated December 
 28, 1908. 
 
 " Elihu Root. 
 "Secretary of State." 
 
 " SCHEDULE B. 
 
 
 Principal 
 
 Interest to 
 
 Total pay- 
 
 
 Principal 
 
 Interest to 
 
 Total pay- 
 
 Years. 
 
 to be re- 
 
 be re- 
 
 ment to be 
 
 Years. 
 
 to be re- 
 
 be re- 
 
 ment to be 
 
 
 tained. 
 
 tained. 
 
 retained. 
 
 
 tained. 
 
 retained. 
 
 retained. 
 
 1909 
 
 $153,814.06 
 
 $385,774.70 
 
 $539,588.76 
 
 1925 
 
 $288,090.85 
 
 $251,497.91 
 
 $539,588.76 
 
 1910 
 
 159,966.62 
 
 379,622.14 
 
 539,588.76 
 
 1926 
 
 299,614,49 
 
 239,974.27 
 
 539.588.76 
 
 1911 
 
 166,365.29 
 
 2,7Z,2ZZ.A7 
 
 539,588.76 
 
 1927 
 
 311,599.07 
 
 227,989.69 
 
 539.588.76 
 
 1912 
 
 173,019.90 
 
 366,568.86 
 
 539.588.76 
 
 1928 
 
 324,063.03 
 
 215,525.73 
 
 539.588.76 
 
 1913 
 
 179,940.70 
 
 359,648.06 
 
 539.588.76 
 
 1929 
 
 337.025.56 
 
 202,563.20 
 
 539.588.76 
 
 1914 
 
 187,138.32 
 
 352,450.44 
 
 539.588.76 
 
 1930 
 
 350,506.57 
 
 189,082.19 
 
 539,588.76 
 
 1915 
 
 194,623.86 
 
 344,964.90 
 
 539.588.76 
 
 1931 
 
 364,526.84 
 
 175,061.92 
 
 539,588.76 
 
 1916 
 
 202,408.81 
 
 337,179.95 
 
 539,588.76 
 
 1932 
 
 379,107.92 
 
 160,480.84 
 
 539,588.76 
 
 1917 
 
 210,505.16 
 
 329,083.60 
 
 539.588.76 
 
 1933 
 
 394,272.22 
 
 145,316.54 
 
 539,588.76 
 
 1918 
 
 218,925.37 
 
 320.663.39 
 
 539,588.76 
 
 1934 
 
 410,043.11 
 
 129,545.65 
 
 539.588.76 
 
 1919 
 
 227,682.38 
 
 311,906,38 
 
 539.588.76 
 
 1935 
 
 426,444.84 
 
 113,143.92 
 
 539,588.76 
 
 1920 
 
 236,789.68 
 
 302,799.08 
 
 539.588.76 
 
 1936 
 
 443.502.64 
 
 96,086.12 
 
 539,588.76 
 
 1921 
 
 246,261.27 
 
 293,327.49 
 
 539.588.76 
 
 1937 
 
 461,242.74 
 
 78.346.02 
 
 539,588.76 
 
 1922 
 
 256,111.72 
 
 283,477.04 
 
 539.588.76 
 
 1938 
 
 479,692.45 
 
 59,896.31 
 
 539.588.76 
 
 1923 
 
 266,356.19 
 
 273,232.57 
 
 539,588.76 
 
 1939 
 
 498,880.14 
 
 40.708.62 
 
 539,588.76 
 
 1924 
 
 277,010.44 
 
 262,578.32 
 
 539,588.76 
 
 1940 
 
 518,835 36 
 
 20,753.40 
 
 539,588.76 
 
 " Schedule B referred to in the Executive order of the President, dated December 
 28, 1908. 
 
 " Elihu Root, 
 " Secretary of State."
 
 314 
 
 CHINA TREATIES AND AGREEMENTS 
 
 SCHEDULE C. 
 
 Years. 
 
 Amount 
 remitted 
 yearly. 
 
 Years. 
 
 Amount 
 remitted 
 yearly. 
 
 Years. 
 
 Amount 
 remitted 
 yearly. 
 
 1909 
 
 $483,094.90 
 483,094.90 
 541,198.78 
 541,198.78 
 541,198.78 
 541,198.78 
 724.993.42 
 790,196.00 
 790,196.00 
 790,196.00 
 790,195.99 
 
 1920 
 
 $790,196.00 
 790,195.99 
 790,195.99 
 790,195.99 
 790,196.00 
 790,195.99 
 790,196.00 
 790,195.99 
 790,196.00 
 790,195.99 
 790,196.00 
 
 1931 
 
 1932 
 
 $790,195.99 
 
 1910 
 
 1921 
 
 1,380,378 35 
 
 1911 
 
 1922 
 
 1933 
 
 1934 
 
 1935 
 
 1936 
 
 1,380,378.34 
 
 1912 
 
 1923 
 
 1,380,378.34 
 
 1913 , 
 
 1924 
 
 1,380,378.35 
 
 1914 
 
 1925 
 
 1926 
 
 1,380,378.43 
 
 1915 
 
 1937 
 
 1938 
 
 1939 
 
 1940 
 
 1,380,378.43 
 
 1916 
 
 1927 
 
 1,380,378.35 
 
 1917 
 
 1928 
 
 1,380,378 34 
 
 1918 
 
 1929 
 
 1,380,378.36 
 
 1919 
 
 1930 
 
 
 
 
 
 1908. 
 
 " Schedule C referred to in Executive order of the President dated December 28, 
 
 (For. Rel. of the U. S., 1908, p. 72.) 
 
 " Elihu Root, Secretary of State. 
 
 Exchange of Notes regarding American share of Boxer Indemnity. 
 
 The note of the American Minister, communicating the purport of the Resolution to the 
 Wai-wu Pu, under date of July 11, 1908, and the replies thereto, under date of July 
 14, 1908, are herewith quoted from For. Rel. of the U. S., 1908, p. 67: 
 
 " Minister Rockhill to the Prince of Ch'ing. 
 
 " American Legation, 
 "Peking, July 11, 1908. 
 
 "Your Highness: It is with great satisfaction that I have the honor to inform 
 your highness, under direction of the Secretary of State of the United States, that a bill 
 has passed the Congress of the United States authorizing the President to modify the 
 indemnity bond given the United States by China under the provisions of Article VI of the 
 final protocol of September 7, 1901, from $24,440,000 United States gold currency to $13,- 
 655,492.29, with interest at 4 per cent per annum. Of this amount $2,000,000 are held 
 pending the result of hearings on private claims presented to the Court of Claims of the 
 United States within one year. Any balance remaining after such adjudication is also 
 to be returned to the Chinese Government in such manner as the Secretary of State shall 
 decide. 
 
 " The President is further authorized under the bill to remit to China the remainder 
 of the indemnity as an act of friendship, such payments and remissions to be made at 
 such times and in such a manner as he may deem just. 
 
 " I am also directed by the Secretary of State to request the Imperial Government 
 kindly to favor him with its views as to the time and manner of the remissions. 
 
 ' Trusting that your imperial highness will favor me with an early reply to com- 
 municate to my Government, I avail, etc. 
 
 " W. W. Rockhill." 
 
 " The Prince of Ch'ing to Minister Rockhill. 
 
 " (Translation.) 
 
 " Foreign Office, 
 " Peking, July 14, 1908. 
 "Your Excellency: I have the honor to acknowledge the receipt of your dispatch of 
 July 11, informing me that you had been directed by the Secretary of State to notify 
 me that a bill has passed the Congress of the United States authorizing the President to 
 modify the indemnity bond given the United States by China under the provision of 
 Article VI of the final protocol of September 7, 1901, from $24,440,000 United States 
 gold currency, to $13,665,492.29, with interest at 4 per cent per annum. Of this amount 
 $2,000,000 are held pending the result of hearings on private claims presented to the Court 
 of Claims of the United States within one year. Any balance remaining after such 
 adjudication is also to be returned to the Chinese Government in such manner as the 
 Secretary of State shall decide. The President is further authorized under the bill to 
 remit to China the remainder of the indemnity as an act of friendship, such payments to
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: NOTES 315 
 
 be made at such times and in such a manner as he may deem just. As directed by the 
 Secretary of State, your excellency requests the Imperial Government kindly to favor him 
 with its views as to the time and manner of the remissions, and asks an early reply to com- 
 municate to your excellency's Government. 
 
 "On reading this dispatch I was profoundly impressed with the justice and great 
 friendliness of the American Government, and wish to express our sincerest thanks. 
 
 " Concerning the time and manner of the return to China of the amounts to be re- 
 mitted, the Imperial Government has no wishes to express in the matter. It relies im- 
 plicitly on the friendly intentions of the United States Government, and is convinced 
 that it will adopt such measures as are best calculated to attain the end it has in view. 
 
 " The Imperial Government, wishing to give expression to the high value it places on the 
 friendship of the United States, finds in its present action a favorable opportunity for 
 doing so. Mindful of the desire recently expressed by the President of the L^nited States 
 to promote the coming of Chinese students to the' United States to take courses in the 
 schools and higher educational institutions of the country, and convinced by the happy re- 
 sults of past experience of the great value to China of education in American schools, 
 the Imperial Government has the honor to state that it is its intention to send henceforth 
 yearly to the United States a considerable number of students there to receive their educa- 
 tion. The board of foreign affairs will confer with the American minister in Peking 
 concerning the elaboration of plans for the carrying out of the intention of the Imperial 
 Government. 
 
 " A necessary dispatch. 
 
 " [Seal of the Wai Wu Pu.]" 
 
 " The Foreign OfUce to Minister Rockhill. 
 
 " (Translation.) 
 
 " Foreign Office, 
 " Peking, July 14, 1908. 
 " Referring to the dispatch just sent to your excellency regarding sending students 
 to America, it has now been determined that from the year when the return of the indemnity 
 begins 100 students shall be sent to America every year for four years, so that 400 students 
 may be in America by the fourth year. From the fifth year and throughout the period 
 of the indemnity payments a minimum of 50 students will be sent each year. 
 
 " As the number of students will be very great there will be difficulty in making 
 suitable arrangements for them. Therefore in the matter of choosing them, as well as in 
 the matter of providing suitable homes for them in America and selecting the schools 
 which they are to enter we hope to have your advice and assistance. The details of 
 our scheme will have to be elaborated later, but we take this occasion to state the general 
 features of our plan and ask you to inform the American Government of it. We sincerely 
 hope that the American Government will render us assistance in the matter. 
 " Wishing you all prosperity, 
 
 " Prin'ce of Ch'ing. 
 
 " N.\ T'UNG. 
 
 " Yuan Shih-k'ai. 
 
 " Lien Fang. 
 
 " Liang Tun-yen." 
 
 Note 4. 
 
 The administration of the Diplomatic Quarter thus reserved was provided for by the 
 Diplomatic Body by a Protocol, under date of June 13, 1904, of which the translation (as 
 communicated by the American Legation to the Department of State for approval) is as 
 follows : 
 
 Protocol regarding Legation Quarter at Peking, — June 13, 1904. 
 
 " The undersigned representatives of the Powers signers of the Final Protocol of the 
 7th of September, 1901, in view of Article VII of the said Protocol, by which the 
 Chinese Government has admitted that the quarter occupied by the Legations should be 
 considered as a quarter specially reserved for their usage, placed under their exclusive 
 police where Chinese would not have the right to live, and which might be put into 
 a state of defense, and in view of the plan fixing the limits of this quarter in accordance 
 with the Protocol, have agreed on what follows : 
 
 " 1. — The possession of the land indicated by having their name inscribed on the 
 map made for that purpose, and annexed to this Protocol, is conceded to each Legation, 
 also to the Imperial Maritime Customs, to each foreign association, and to all private 
 individuals. 
 
 " 2. — All land included between the limits of the quarter and the defensive walls marked
 
 316 CHINA TREATIES AND AGREEMENTS 
 
 on the map, land which is reserved as a glacis for the defense of the quarter, also the 
 roads, sidewalks, gutters, bridges, drains, trees, and constructions of whatever nature, 
 are conceded to belong to the Diplomat. Quarter as a common possession. 
 
 ■' 3. — Are excepted, parcels of land situated on the glacis, which are conceded to 
 have belonged to private individuals before the 20th of June, 1900, the date of the 
 beginning of the siege of the Legations, which are also indicated on this map. 
 
 '■ These parcels remain the property of their former proprietors, or of those deriving 
 their rights from them. To avoid all misunderstanding a list of such parcels is added, as 
 follows : 
 
 " On the glacis, in front of the German Legation, the land belonging to the Russo- 
 Chinese Bank, and the land in front of the German Legation which formerly belonged 
 to Air. Coltman. 
 
 " On the glacis in front of the Austro-Hungarian Legation, the land belonging to 
 Mr. Splingaerd. 
 
 " 4. — No construction, permanent or temporary, with the exception of those now 
 existing, shall be made upon any part whatever of the glacis, without the unanimous con- 
 sent of the Representatives of the Powers signers of the Final Protocol of the 7th of 
 September, 1901. 
 
 ■' 5. — The glacis being recognized as common property, each Legation is provisionally 
 charged with the control of that part of which it has at present assumed the defence, and 
 the Commandants of the Guards shall be invited to consult together on all matters relat- 
 ing to its military organization. 
 
 " 6. — The Legations, the Imperial Customs, Associations, and private individuals, shall 
 not make any encroachments on the glacis, the roads, sidewalks, bridges, or canals, as they 
 are indicated on the map. 
 
 " 7. — The Representatives of the Powers signers of the Final Protocol of September 
 7th, 1901, agree to proceed forthwith to the drawing up of a plan of general Government 
 of the police and control of the roads, and to submit this to the approbation of their 
 respective Governments. JMoreover they shall take such steps as they shall deem advisable 
 to obtain the necessary authority to enforce these regulations upon their nationals, and 
 to oblige them to pay the taxes intended to insure the service of the police and the 
 maintenance of the roads. 
 
 " 8. — The Korean Legation, having taken the place of a citizen of the United States 
 as proprietor of the land at present occupied by it, is looked upon as succeeding only 
 to his individual rights, but by courtesy it shall be invited to take part, in the name 
 of the Government, in the drawing up of the general plan of Government. 
 
 " 9. — Works already executed at the expense of certain Legations, to rebuild roads, 
 sidewalks, canals, bridges, or, in fact, any other work of public utility, are entitled to no 
 compensation from the community. 
 
 ■' 10. — Three copies of this Protocol, with the annexed plan, shall be printed for each 
 Legation. 
 
 " Done at Peking, June 13, 1904. 
 
 (Signed) A. von Mumm; 
 m. czikann ; 
 De Gaiffier ; 
 De Carcer ; 
 Dubail; 
 Satow ; 
 Gallina ; 
 
 UCHIDA ; 
 
 Van Citters ; 
 Lessar." 
 
 Note 5. 
 
 In connection with the handing back to the Chinese authorities of the administration 
 of Tientsin (as to which see For. Rel. of the U. S., 1902, pp. 184-201), the representatives 
 of the five Powers maintaining the provisional government of that port (namely, France, 
 Germany, Great Britain, Italy and Japan) addressed to the Chinese Government, under 
 date of July 15, 1902, identical notes of the following tenor: 
 
 Conditions for Dissolution of Provisional Government of Tientsin. — July 15, 1902. 
 
 " I have the honor to acknowledge the receipt of Your Highness's note of the 5th 
 instant, inclosing copy of a letter from his excellency the viceroy Yuan, urging reasons 
 why the administration of the city of Tientsin should be handed back to his excellency at 
 an early date.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: NOTES 317 
 
 " In reply I have the honor to state to Your Highness that, in accord with my col- 
 leagues representing powers that still have delegates on the council of the Tientsin pro- 
 visional government, I am authorized by my Government to consent to the dissolution of 
 that body, provided that the Chinese Government signifies its adherence to the following 
 propositions : 
 
 •' By Article VIII of the final protocol of September 7, 1901, it was declared that 
 the Chinese Government agreed to have the forts at Taku, and others which might interfere 
 with free communication between Peking and the sea, demolished; and it was added that 
 arrangements had been made for this purpose. 
 
 " The Chinese plenipotentiaries having expressed to the diplomatic body their desire 
 to be relieved of the direct responsibility for carrying out this article, the representatives 
 of the signatory powers intrusted the work to the Tientsin provisional government. It is 
 not yet entirely completed. In order therefore to insure the fulfillment of this article, 
 I have the honor to propose to Your Highness that the work of demolition shall, from 
 the moment of the dissolution of the Tientsin provisional government, be placed in the 
 hands of the G. O. C.'s at Tientsin, the necessary funds being provided out of the moneys 
 then remaining in the treasury of the Tientsin provisional government. 
 
 " By Article IX of the same protocol it is provided that the powers shall have the 
 right of occupying certain points between Peking and the sea, of which the whole town 
 of Tientsin is one. Consequently, after the dissolution of the Tientsin provisional gov- 
 ernment, foreign troops will continue as hitherto to be stationed there, in the places ac- 
 tually occupied by them, and their supplies of all sorts continuing, as at present, to be 
 exempt from all taxes or dues whatsoever. They will have the right of carrying on 
 field exercises and rifle practice, etc., without informing the Chinese authorities, except in 
 the case of feu.v de guerre. 
 
 " It is desirable, however to avoid as far as possible occasions of collision between 
 the foreign troops and those of China. I propose, therefore, that with this object the 
 Chinese Government shall undertake not to station or march any troops within 20 Chinese 
 li (6 2/3 English miles) of the city or of the troops stationed at Tientsin; further, in cor- 
 respondence exchanged between the foreign representatives and the Chinese plenipotentiaries, 
 of whom Your Highness was one, previous to the signature of the protocol, it was agreed 
 that the jurisdiction of the commanders of the posts to be established along the line of com- 
 munications should extend to a distance of 2 miles on either side of the railway, and this 
 arrangement ought to be maintained as long as the line of posts specified in Article IX of 
 the protocol continue to be occupied. 
 
 " I am willing, however, in concert with my colleagues, to consent that the viceroy 
 should have the right of maintaining a personal bodyguard in the city of Tientsin not 
 exceeding in number 300 men; and also that his excellency may maintain an efficient body 
 of river police along the line of the river, even where it runs within the 2-mile limit above 
 mentioned. 
 
 " The demolition of the forts implies an obligation upon China not to reconstruct them, 
 and the same obligation applies to the walls of Tientsin city, which, during the troubles of 
 1900, were made use of as a fortification directed against the security of the foreign settle- 
 ments. We can not, however, consent that the Chinese Government establish maritime 
 defenses at the mouth of the Peiho at Chingwangtao or at Shanhaikuan. 
 
 " We propose that the accounts of revenue and expenditure of the Tientsin provisional 
 government be audited by two competent persons, one to be chosen by the G. O. C.'s at 
 Tientsin, the other by the viceroy, and the balance, after deduction of the sum required to 
 complete the demolition of the forts, be handed over to the provincial treasury. 
 
 "Your Highness will no doubt think it right to agree that no Chinese subject who has 
 been in the service of the Tientsin provisional government or of the foreign contingent 
 shall be in any way molested on the ground of such service. 
 
 " Chinese subjects in the employ of the foreign forces on the lines of communication 
 will be provided with certificates of identity. It appears to me necessary that the Chinese 
 Government should admit that in case any such Chinese person commits an oflfense the 
 commandant in whose service he is should have the right of punishing him or of handing 
 him over to the Chinese authoritites as may, in his opinion, be best calculated to secure the 
 ends of justice. 
 
 " The right of foreign troops to occupy summer quarters when necessary ought, in my 
 opinion, to be recognized. 
 
 " A list of unexpired punishments imposed by the Tientsin provisional government will 
 be furnished when that body is dissolved to the provincial government, which ought to 
 undertake to carry them out. No action, either criminal or civil, adjudicated by the pro- 
 visional government can ever be opened anew. 
 
 " The archives of the Tientsin provisional government I consider should be intrusted 
 to the senior consul, and application can be made to him by any person entitled to consult 
 them. 
 
 " As regards taxation. I consider that the inhabitants of the city and district should 
 be regarded as having discharged their duty to the Chinese Government during the period of
 
 318 CHINA TREATIES AND AGREEMENTS 
 
 the continuance of the administration of the Tientsin provisional government and that no 
 arrears ought to be demanded of them under this heading. 
 
 " Such are the proposals which 1 consider it my duty to place before Your Highness 
 for the acceptation of the Chinese Government, and I have the honor to declare that I am 
 ready to consent to the dissolution of the Tientsin provisional government four weeks after 
 I receive from Your Highness an intimation that they are accepted. I have only further 
 to request that Your Highness will be so good as to designate the official to whom formal 
 delivery of the city and district can be made by the council of the Tientsin provisional 
 government. 
 
 " I have, etc." 
 
 The understanding upon which the terms of this note were accepted by the Chinese 
 Government was communicated to the American Minister in a note from Prince Ch'ing 
 under date of July 18, 1902, of which the substance is (in translation) as follows: 
 
 "On the 10th of the sixth moon, twenty-eighth year of Kuang-hsu (July 14, 1902), I 
 received a dispatch from certain ministers of the treaty powers, stating that in regard to 
 the transfer of the city of Tientsin and the country adjacent to the jurisdiction of the 
 viceroy of Chihli, these foreign ministers were agreed (of the same opniion). They also 
 had had the honor of receiving the sanction of their respective governments for the abroga- 
 tion of the provisional government, provided only that the Chinese Government should, first 
 of all, distinctly consent to the conditions proposed, when they, on their part, would promise that 
 in four weeks from the day on which consent was given, the provisional goyernment of 
 Tientsin should be abrogated. They therefore request that it be clearly pointed out to 
 whom, when the time arrives, and into whose hands the provisional government should 
 transfer Tientsin city and the country adjacent. 
 
 " I have carefully perused the dispatch with regard to the point that military posts 
 should be established along the highway or line of communication from Pekin to the sea, 
 with powers to control and punish, the distance to extend as far as two English miles on 
 each side of the railroad. 
 
 " I would remark that according to the doyen, His Excellency Cologan's dispatch of the 
 sixth moon, twenty-seventh year of Kuang-hsu (July, 1901), military control would only 
 refer to offenses against the railroad, the telegraph lines, or against the allies or their 
 property. 
 
 " As to the remaining articles I have no objection to make. 
 
 " On the 13th of the current moon (July 17) I memorialized the Throne on the subject 
 and had the honor of receiving the sanction of the Throne by imperial decree. 
 
 "Whereupon. I at once sent replies to the ministers of the treaty powers, in order that 
 they might transmit the same to the provisional government of Tientsin, that the provisional 
 government be abolished within four weeks, and the city of Tientsin and its adjacent 
 country be returned to Chinese administration and handed over to the superintendent of the 
 northern ports, who, at the head of the local officials, civil and military, will be there to 
 receive it. 
 
 " Hereafter, whenever there is need for consultation, the foreign^ civil and military 
 authorities can, from time to time, consult with his excellency the superintendent of north- 
 ern ports, which, I hope, will be for the good of the place." 
 
 {For. Rel. of the U. S., 1902, p. 201.) 
 
 During the Revolution of 1911-12, the representatives of the Powers found it advisable 
 to exercise the right of military control over the Peking-Mukden Railway from the capital 
 to Shanhaikuan ; and American, British, French, German, Italian and Japanese troops 
 accordingly occupied allotted sections of the railway, between the points specified, in 
 accordance with the following resolutions adopted by the Diplomatic Body at Peking and 
 embodied in its circular No. 13A of January 26, 1912: 
 
 Resolutions of Diplomatic Body regarding Military Occupation of the Railway from 
 Peking to Shanhaikwan. — ^January 26, 191 2. 
 
 " 1, — That troops should be placed at important stations, bridges, etc., along the line of the 
 railway. 
 
 "2. — Both Chinese Imperial and Revolutionist troops are at liberty to utilize the rail- 
 way line and adjoining piers and wharfage for the purposes of transportation, landing or 
 embarkation and will not be interfered with. 
 
 '• 3. — Both parties will be notified to avoid any interference with the railway and to 
 refrain from damaging it in any way. The Board of the Imperial Railways of North China 
 will be requested to maintain at both Shanhaikuan and Tientsin a repair train loaded with 
 suitable materials for repairing damages. 
 
 "4. — Any attempts to permanently damage important parts of the line, such as sta- 
 tions, depots, machinery, bridges, etc., will be resisted by the combined forces of the six 
 Powers cooperating in the defense of the railway.
 
 NUMBER 1901/3: SEPTEMBER 7, 1901: NOTES 319 
 
 "5. — The Board of the Imperial Railways of North China will be requested to always 
 keep ready at Shanhaikuan and Tientsin sufficient rolling stock to transport 250 infantry 
 in order that reenforcements can rapidly be dispatched. 
 
 " 6. — The telegraph offices are to be protected and telegraphic communication main- 
 tained. Chinese troops of either side may make use of the line. 
 
 " 7.— Officers commanding posts and patrols should be informed of the conditions 
 laid down in paragraphs 2, 3, 4, and 6 and told to do their best, with the forces at their 
 disposal, to carry them out." 
 
 Note 6. 
 
 The final settlement of the question of the Indemnity is embodied in the following 
 joint note addressed to the Prince of Ch'ing by the diplomatic representatives of Germany, 
 Austria-Hungary, Belgium, Spain, France, Great Britain, Italy, Japan, the Netherlands and 
 Russia, under date of July 2, 1905 : 
 
 Exchange of Notes regarding Final Settlement of the Question of the Boxer 
 
 Indemnity. — ^July 2, 1905. 
 
 ■' Peking, July 2, 1905. 
 " Your Highness : 
 
 " We have the honour to acknowledge the receipt of the letter which Your Highness 
 was so good as to address to us on July 2, 1905, in answer to the Collective Note of the 
 Representatives of the Powers, dated July 26, 1904, regarding the payment of the indemnity. 
 
 " It is therein stated as follows : ' On July 26th last we had the honour to receive the 
 Collective Note by which the Representatives of Germany, Austria-Hungary, Great Britain, 
 Italy, Japan, the Netherlands and Russia made certain proposals to us for the regulating the 
 payment of the indemnity. 
 
 "'We have examined these proposals with the greatest care. After having discussed 
 them several times both verbally and in writing with the Belgian and other Ministers, we 
 are now in a position to submit to the Powers concerned and to ask them to be so good 
 as to accept, a definitive arrangement respecting both the liquidation of the arrears and the 
 payments to be made in future. 
 
 " ' Recognizing that the sum of 450,000,000 Taels constitutes a debt in gold, that is to say 
 for each Haikwan Tael due to each of the Powers China must pay in gold the amount which 
 is shown in Article VI of the Final Protocol as the equivalent of one Tael, we undertake: 
 
 "' 1. To extinguish by means of a lump sum of 8,000,000 Protocol Taels, the whole of 
 the debt incurred towards all the Powers collectively on account of the payment in silver 
 during the years up to January 1, 1905. This lump sum shall be divided among the Powers 
 in proportion to the amount of the sums which remained due to each of them on January 
 1, 1905. With regard to these sums, which are determined by converting the balance of each 
 half year into gold and carrying it forward in Protocol Haikwan Taels we beg the Minis- 
 ters to be so good as to let us know what they are, in order that they may be paid by 
 telegraphic transfers to each Power direct, a fortnight after the present proposals have 
 been accepted. These 8,000,000 Taels will bear interest at 4 per cent per annum from January 
 1, 1905, to the day of payment. 
 
 "'2. To sign the national bonds as soon as the Powers have given their assent to our 
 proposals. 
 
 " ' 3. In future on the last day of each month, to pay equal monthly instalments of the 
 whole of the sum payable each year for interest and sinking-fund, which is fixed by the 
 sinking-fund tables attached to the respective national bonds, the Powers agreeing that 
 China at the end of each half year may deduct interest at the rate of 4 per cent per annum 
 on these instalments from the date on which they have been made to the last day of the half 
 year. 
 
 " ' China will make these payments, calculated on the basis set forth above, which 
 fixes the value of the Haikwan Protocol Tael in relation to the money of each country, 
 either in silver, according to the price of silver on the London market, or in gold bills, or 
 in telegraphic transfers, at the choice of each Power. China may obtain bills and telegraphic 
 transfers as best suits her interests at any place and at any bank at the lowest price or by 
 public tender, provided that the payments in gold be made to each Power direct on the 
 due date. It is understood that China is responsible for the exact payment of the trans- 
 fers and the bills. Each Power in accepting the present proposals must inform^ the Chinese 
 Government which of the three methods cited above is the one it chooses 'till the debt 
 is extinguished. 
 
 " ' 4. As to the sums in silver which have been paid over to the Bankers' Commission 
 between January 1, 1905, and the coming into force of the new arrangement regarding the 
 indemnity, we propose that they should be repaid to the Shanghai Taotai. He will then
 
 320 
 
 CHINA TREATIES AND AGREEMENTS 
 
 meet the instalments that have then fallen due, in accordance with the methods set forth 
 above, with deduction of interest at 4 per cent per annum from the day the payment shall 
 have been re-effected, up to the date of the next half yearly payment. 
 
 " ' We beg Their Excellencies the Ministers of the Powers to inform us as soon as 
 possible whether their Governments accept our proposals.' 
 
 " We have submitted these proposals to our respective Governments, who after examin- 
 ing them in a conciliatory spirit, have assented to them. 
 
 " We therefore have the honor to inform Your Highness that we all accept the definite 
 arrangement of the question of the indemnity proposed in your letter of today. 
 
 " It is understood that Article 4 of the present agreement shall be applied in an 
 equitable manner. • 
 
 " Your Highness will find attached a table setting forth the division of the 8,000,000 
 taels which you have expressed the desire to receive. 
 
 A. V. MUMM. 
 A. ROSTHORN. 
 
 E. DE Gaiffier. 
 Manuel de Carcer. 
 M. Dubail. 
 Ernest Satow. 
 
 C. Baroli. 
 Y. Uchida. 
 
 A. J. CiTTERS. 
 
 D. POKOTILOW." 
 
 "Amount du-e each power from the sum of 8,000,000 protocol taels. 
 
 Country. 
 
 Germany 
 
 Austria-Hungary . . . . 
 
 Belgium 
 
 Spain 
 
 United States 
 
 France 
 
 Great Britain 
 
 Portugal 
 
 Italy 
 
 Japan 
 
 Netherlands 
 
 Russia 
 
 International claims . 
 Sweden and Norway 
 
 Marks 
 
 Crowns 
 
 Francs 
 
 ...do 
 
 Gold dollars 
 
 Francs 
 
 Pounds 
 
 ...do 
 
 Francs 
 
 Yen 
 
 Florins 
 
 Rubles 
 
 Pounds 
 
 ...do 
 
 Foreign cur- 
 rency. 
 
 4,971,917.95 
 
 263,700.83 
 
 560,776.83 
 
 8,943.75 
 
 490,435.44 
 
 4,684,727.62 
 
 138,114.91 
 
 250.16.4 
 
 1,759,261.46 
 
 724,487.16 
 
 24,169.69 
 
 3,266,264.32 
 
 408.73 
 
 171.73 
 
 Protocol 
 taels. 
 
 ,627,469.05 
 
 73,352.11 
 
 149,540.44 
 
 2,385.00 
 660,964.20 
 ,249.260.70 
 920,763.04 
 
 1,672.11 
 
 469,136.39 
 
 514,916.25 
 
 13,457.51 
 
 ,313,218.36 
 
 2,722.42 
 
 1,142.42 
 
 8,000,000.00 " 
 
 (Translation, as printed in For. Rel. of the U. S., 1905, p. 156, from French original.) 
 
 In reply to a request, by the signatories of this collective note, to be informed whether 
 the Government of the United States would accept the proposals of the Chinese Gov- 
 ernment as embodied therein, the American Minister replied under date of July 2, 1905, 
 as follows : 
 
 " Messieurs les Ministres et 
 
 Monsiei'r le Charge d'affaires : 
 " I have the honor to acknowledge the receipt of your joint letter which you have been 
 pleased to address me under date of today, and in which you communicate to me the notes 
 exchanged by you and the Chinese Government with the object of a final settlement of the 
 question of the indemnity in the Final Protocol of 7th September, 1901. 
 
 " I am pleased to inform you that I accept in the name of my Government the pro- 
 posals of the Chinese Government as stated in these two notes. 
 
 " Please accept, Excellencies and Monsieur, the assurance of my highest consideration. 
 
 {Sgd.) "W. W. RocKHiLL. 
 
 "A LL. EE. mm. les Ministres 
 
 d'Allemagne, de Grande Bretagne, de Jafon, 
 
 DE France, des Pays-Bas, de Belgique, d'Italie, 
 d'Espagne et de Russie ; et M. le Charge 
 d'affaires d'Autriche-Hongrie."
 
 NUMBER 1902/1 : JANUARY 1/14, 1902 321 
 
 NUMBER 1902/1. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Provincial 
 
 Government of Heilungkiang). 
 
 Agreement regarding Jurisdiction over Chinese Subjects in the Raihi'ay 
 Zone.*— January 1/14, 1902. 
 
 In view of the fact that the conditions of the old agreement for the Prin- 
 cipal Heilungkiang Bureau in Fulierdi for conducting the affairs of the province 
 in relation to the Chinese Eastern Railway, concluded between His Excellency 
 En, former Chiang-Chun of Heilungkiang, and Messrs. Yugovitch, Engineer- 
 in-Chief, and Ignatius, his assistant, signed November 20/December 2, 1899, 
 and according to the Chinese calendar the 1st day of the 9th month of the 25th 
 year of Kuang Hsii, are not in harmony with the present state of affairs, His 
 Excellency Sah, acting Chiang-Chun of Heilungkiang, appointed on September 
 28/November 11, 1901, the Expectant Taotai of Hunan Province, Mr. 
 Djoumyan, his authorized representative for negotiations with the Engineer-in- 
 Chief, Mr. Yugovitch, his Assistant, Mr. Ignatius, and his representative, Mr. 
 Daniel, regarding necessary additions to and changes in the said agreement. 
 They have arrived at an agreement upon the following articles : 
 
 Article 1. — The Principal Heilungkiang Bureau for the conduct of affairs 
 in relations between the Province and the Chinese Eastern Railway, shall be 
 established in the immediate neighborhood of the Central Station. It is neces- 
 sary to appoint officials to the Principal Bureau, each of whom shall perform his 
 special functions and shall live mainly in Harbin, and for all important sections 
 special officials who shall be subject to the orders of the Principal Bureau. 
 
 Article 2. — The purpose of the founding of this Bureau is the examina- 
 tion and final decision of all cases arising in Heilungkiang Province which 
 directly or indirectly touch the interests of the Chinese Eastern Railway Com- 
 pany, of interpreters, servants, artisans and ordinary laborers in the railway 
 service, persons supplying materials, contractors for work of various kinds, and 
 finally of all Chinese residing in the territory of the railway. In cases of impor- 
 tant violation of Chinese laws, or of the provisions of the present agreement, as 
 for example in cases of murder, robbery, resistance to authorities, illegal 
 assembly, adultery, concealment of criminals, arson, usury, freeing of criminals, 
 larceny, or the theft of money exceeding three hundred tiao, regardless of how 
 far the place, where the offense was committed, may be from the Principal 
 Bureau, all such cases shall be examined and finally decided by the Principal 
 
 * Translation from the Russian version printed in Soglashenia, p. 29. 
 
 In connection with this Agreement see also the similar Agreement of July 5/18, 1901, 
 with the Provincial Authorities of Kirin (No. 1901/2, ante). 
 
 The agreement of November 20/December 2, 1899, which the present agreement sup- 
 plements and amends, is printed (in Russian version) m Soglashenia, p. 26. It is of the 
 same tenor as the agreement of May 19/31, 1899, printed in a footnote to the Kirin Agree- 
 ment cited above, with the substitution of Tsitsihar (Heilungkiang) for Kirin, and (in 
 §§9, 10 and 11) somewhat different financial provisions, among them one for 40,000 Tsitsihar 
 taels, instead of 60,000 Kirin taels, for expenses of maintenance.
 
 322 CHINA TREATIES AND AGREEMENTS 
 
 Bureau. In the above-mentioned cases, or in any other important and urgent 
 question arising on any section of the railway, the special official of the local 
 branch of the Bureau, and the district engineer shall immediately make a report 
 each to his own central office. All unimportant and ordinary affairs, however, 
 which do not constitute such a serious infringement of the Chinese laws or of the 
 present agreement, may be investigated and settled on the spot by the special 
 official of the branch of the Bureau by agreement with the district engineer ; if 
 the two sides on account of diflference of opinion cannot arrive at a decision, each 
 of them shall immediately report to this effect to his central office by letter or by 
 telegram, and shall request instructions or suggestions for the settlement of the 
 case. 
 
 In case of matters arising in the territory of Heilungkiang Province directly 
 or indirectly affecting the interests of the Chinese Eastern Railway Company, all 
 persons, whether Chinese, Manchus or Mongols, are required to submit to the 
 provisions of this agreement. 
 
 Article 3. — All cases coming within the definition in Article 2, the examina- 
 tion of which has already been begun but has not been completed by different 
 yamens or officials, must as soon as possible be turned over with all the docu- 
 ments to the Principal Bureau, which shall determine by agreement with the 
 Engineer-in-Chief of the Chinese Eastern Railway the manner in which the 
 case is to be conducted. 
 
 Article 4. — In the future all questions arising in connection with com- 
 plaints and petitions coming before different yamens or officials and falling 
 within the definition in Article 2, must be turned over to the Principal Bureau for 
 proper settlement. All yamens or bureaus having any official business requiring 
 official relations with the railway company are required to report regarding it to 
 the Principal Bureau, in order that it may communicate it to the company. 
 There is no need for them to send their communications directly to the company, 
 in order that confusion may be avoided, and in order that unity of policy may 
 be maintained. 
 
 Article 5. — Since each question connected with claims and petitions falling 
 within the definition in paragraph 2 must be examined or investigated by the 
 President of the Principal Bureau, in conjunction with the Engineer-in-Chief 
 or his representative, the decision also shall be arrived at in the same manner. 
 
 Article 6. — In cases in which there have been committed by Chinese sub- 
 jects the crimes mentioned in paragraph 2, as soon as the Principal Bureau has 
 legally imposed a penalty for the same, the said penalty shall be carried into 
 execution either by the Principal Bureau itself or by the authority of that 
 locality where the crime was committed, and to which the Bureau shall deliver 
 the criminals. This question shall be settled according to the circumstances by 
 the Principal Bureau itself. A jail must be built in the Principal Bureau for 
 the imprisonment of Chinese criminals. 
 
 Article 7. — In cases of offenses of great importance committed by Chi- 
 nese and subject to more severe punishment than banishment, or in case of 
 difference of opinion between the President of the Principal Bureau and the 
 Engineer-in-Chief, their decision shall be undertaken by the Chiang-Chun in
 
 NUMBER 1902/1: JANUARY 1/14, 1902 323 
 
 accordance with the reports of the President and the communications of the 
 Engineer-in-Chief. Other afifairs more or less important shall be examined and 
 finally settled by the President of the Bureau in conjunction with the Engineer- 
 in-Chief or his representative ; the former shall from time to time impose sentence 
 in these cases, and shall forward reports regarding them monthly to the Chiang- 
 Chun, who shall preserve them in his archives. 
 
 Article 8. — Officials and soldiers of the Principal Bureau and its branches 
 shall be appointed by the Chiang-Chun. But the President and Vice-President 
 occupying most important offices, must be worthily selected, and in case of their 
 appointment or removal, it is necessary that the Chiang-Chun should previously 
 take deliberate steps in conjunction with the Engineer-in-Chief, and should 
 suggest to him for appointment officials whose intelligence, capability and ac- 
 quaintance with railway affairs, is known to both parties. After the choice has 
 been made, it is necessary to request the Chiang-Chun to confirm them. 
 
 Besides the President and the Vice-President, who shall reside at the Prin- 
 cipal Bureau, there shall be appointed another Vice-President in the branch 
 bureau at Fulierdi. The choice of the other officials of the Principal Bureau 
 and its branches, who are to carry heavy and important responsibilities, shall be 
 made by the President of the Principal Bureau from among upright, just, honest 
 and intelligent men, who have ability in affairs of mutual relations. Having 
 come to a decision with the general consent of the Engineer-in-Chief, he shall 
 petition the Chiang-Chun to issue to each of them a document certifying this 
 appointment. 
 
 Article 9. — To meet all necessary expenses of the President, Vice-President, 
 officials and soldiers of the Principal Bureau and its branches, the Engineer-in- 
 Chief shall annually pay to the President of the Bureau Tsitsihar taels 40,000. 
 Payment shall be made four times a year, beginning with January 1, 1902 (the 
 5th day of the 12th month of the 27th year of Kuang Hsu), at the beginning of 
 each three months. 
 
 Article 10. — Besides the sum above mentioned, the President with the 
 consent of the Engineer-in-Chief has fixed a second sum of Tsitsihar taels 8,000 
 for the construction of the buildings of the Principal Bureau and quarters for 
 the officials, employees and soldiers, and a third sum of Tsitsihar taels 2,000 for 
 the purchase of furniture and utensils necessary for the Principal Bureau and its 
 branches ; the houses and apartments for the branches of the Bureau shall be pre- 
 pared by the railway with a sufficient number of rooms for the needs of the em- 
 ployees and soldiers. 
 
 Article 11. — All protocols or documents for lots of land leased for the 
 requirements of the railway must, in accordance with paragraph 6 of the railway 
 agreement signed on the 20th day of the 7th month of the 22nd year of Kuang 
 Hsii, 16/28 of August, 1896, be presented to the Principal Heilungkiang Bureau 
 for verification and affixing of the seal. This rule shall be general for all lots of 
 land, Manchu, Mongol and Chinese, without distinction, whether they are owned 
 by communities, by the Government or by private individuals. 
 
 Article 12. — The present agreement is made in duplicate, and has been 
 drawn up in three languages : Chinese, Russian and French. It shall be sent to
 
 324 CHINA TREATIES AND AGREEMENTS 
 
 His Excellency Sah, acting Chiang-Chun of Heilungkiang, for signature after it 
 has been signed by Taotai Djoumyan, fully authorized President f appointed by 
 His Excellency Chiang-Chun Sah, by Mr. Yugovitch, Engineer-in-Chief of the 
 Chinese Eastern Railway, by Mr. Ignatius, his assistant, and Mr. Daniel, his 
 representative. After this, His Excellency the acting Chiang-Chun and the 
 Engineer-in-Chief shall each retain one copy of the present agreement. In case 
 of dispute, we shall take as a basis the French version. The French text is a 
 true rendering of the Chinese text. 
 
 Signed the 5th day of the 12th month of the 27th year of Kuang Hsii, 
 (January 1, 1902, Russian style.) 
 
 NUMBER 1902/2. 
 
 GREAT BRITAIN AND JAPAN. 
 Agreement relative to China and Corea* — January 30, 1902. 
 
 The Governments of Great Britain and Japan, actuated solely by a desire 
 to maintain iho. status quo and general peace in the Extreme East, being more- 
 over specially interested in maintaining the independence and territorial integrity 
 of the Empire of China and the Empire of Corea, and in securing equal oppor- 
 tunities in those countries for the commerce and industry of all nations, hereby 
 agree as follows : — 
 
 Article I. — The High Contracting Parties having mutually recognized the 
 independence of China and of Corea, declare themselves to be entirely uninflu- 
 enced by any aggressive tendencies in either country. Having in view, however, 
 their special interests, of which those of Great Britain relate principally to China, 
 while Japan, in addition to the interests which she possesses in China, is interested 
 in a peculiar degree politically as well as commercially and industrially in Corea, 
 the High Contracting Parties recognize that it will be admissible for either of 
 them to take such measures as may be indispensable in order to safeguard those 
 interests if threatened either by the aggressive action of any other Power, or by 
 disturbances arising in China or Corea, and necessitating the intervention of either 
 of the High Contracting Parties for the protection of the lives and property of 
 its subjects. 
 
 Article II. — If either Great Britain or Japan, in the defence of their re- 
 spective interests as above described, should become involved in war with another 
 Power, the other High Contracting Party will maintain a strict neutrality, and use 
 its efforts to prevent other Powers from joining in hostilities against its ally. 
 
 Article III. — If, in the above event, any other Power or Powers should 
 
 * Text as printed in the British Treaty Series, No. 3 (1902). Printed also in Rockhill, 
 p. 97 ; Hertslct, p. 597. See Note to this document, post. p. 325. 
 
 t Sic. Probably the word " representative " was intended. — Editor.
 
 NUMBER 1902/2 : JANUARY 30, 1902 : NOTE 325 
 
 join in hostilities against that ally, the other High Contracting Party will come to 
 its assistance, and will conduct the war in common, and make peace in mutual 
 agreement with it. 
 
 Article IV. — The High Contracting Parties agree that neither of them will, 
 without consulting the other, enter into separate arrangements with another 
 Power to the prejudice of the interests above described. 
 
 Article V. — Whenever, in the opinion of either Great Britain or Japan, the 
 above-mentioned interests are in jeopardy, the two Governments will communi- 
 cate with one another fully and frankly. 
 
 Article VI. — The present Agreement shall come into effect immediately 
 after the date of its signature, and remain in force for five years from that date. 
 In case neither of the High Contracting Parties should have notified twelve 
 months before the expiration of the said five years the intention of terminating 
 it, it shall remain binding until the expiration of one year from the day on which 
 either of the High Contracting Parties shall have denounced it. But if, when 
 the date fixed for its expiration arrives, either ally is actually engaged in war, 
 the alliance shall, ipso facto, continue until peace is concluded. 
 
 In faith whereof the Undersigned, duly authorized by their respective Gov- 
 ernments, have signed this Agreement and have affixed thereto their seals. 
 Done in duplicate at London, the 30th day of January, 1902. 
 (L.S.) (Signed) Lansdowne, 
 
 His Britannic Majesty's Principal 
 Secretary of State for Foreign 
 Affairs. 
 (L.S.) (Signed) Hayashi, 
 
 Envoy Extraordinary and Minister 
 Plenipotentiary of His Majesty 
 the Emperor of Japan at the 
 Court of St. James. 
 
 Note. 
 
 This agreement was replaced by that of August 12, 1905 (No. 1905/6, post), which was 
 in turn replaced by that of July 13, 1911 (No. 1911/7, post).^ ,.,,,. 
 
 In connection with this agreement, see the Franco-Russian declaration of March 3/16, 
 1902 (China, No. 2 (1904), p. 37; Recueil, p. 527; Hertskt, p. 598) of which the translation, 
 as printed in Rockhill, 203, is as follows : 
 
 Franco-Russian Declaration regarding the Anglo-Japanese Alliance.— March i6, 1902. 
 
 "The allied Governments of Russia and France have received a copy of the Anglo- 
 Japanese Agreement of the 30th January 1902, concluded with the object of maintammg the 
 status quo and the general peace in the Far East, and preserving the independence of Chma 
 and Korea, which are to remain open to the commerce and industry of all nations, and 
 have been fully satisfied to find therein affirmed the fundamental principles which they have 
 themselves, on several occasions, declared to form the basis of their policy, and which still 
 remain so. • , • 1. 
 
 " The two Governments consider that the observance of these principles is at the same 
 time a guarantee of their special interests in the Far East. Nevertheless, being obliged them- 
 selves also to take into consideration the case in which cither the aggressive action of third 
 Powers, or the recurrence of disturbances in China, jeopardizing the integrity and free
 
 326 CHINA TREATIES AND AGREEMENTS 
 
 development of that Power, might become a menace to their own interests, the two allied 
 Governments reserve to themselves the right to consult in that contingency as to the means to 
 be adopted for securing those interests. 
 "St. Petersburg, March 3 {16), 1902." 
 
 As printed in Recueil, this declaration is followed by a communique oMciel, dated St. 
 Petersburg, March 7/20, 1902, of which the following is a translation : 
 
 " The Convention concluded in the month of January last between England and Japan 
 has given rise to the most contradictory interpretations and the most varied surmises, 
 principally by reason of the fact that, by that act, two of the eleven Powers which had only 
 just signed the Peking Protocol, after the accomplishment of their collective action in 
 China, seemed to separate themselves from the other Cabinets, and to place themselves in a 
 special situation in reference to the Celestial Empire where, thanks to the joint efforts, the 
 traditional order of affairs had been reestablished, and the legitimate central authority 
 restored. 
 
 " The Imperial Government, appreciating the friendly communications made in this 
 regard to Russia by the Japanese and English Governments, has received the conclusion of 
 that convention with the utmost calm. The principles that have guided Russian policy have 
 remained and still remain invariable ; Russia insists on the independence and integrity 
 of China — a friendly neighboring country — as well as on that of Korea ; Russia desires 
 the maintenance of the sfatits quo and the general pacification of the Far East. By the 
 construction of the great Siberian Railway, with a branch running through Manchuria 
 to a port always free of ice, Russia is favoring the extension, in those regions, of the 
 commerce and industry of the whole world. Would it be in her interests actually to set up 
 obstacles to that ? 
 
 " The intention, expressed by England and Japan, to contribute to the attainment of the 
 same aims which are invariably pursued by the Russian Government, can only appeal to 
 the sympathy of Russia, in spite of comments emanating from certain political spheres 
 and from various organs of the foreign press, which have made an effort to present under 
 quite a different aspect the impassive attitude of the Imperial Government in regard to a 
 diplomatic act which, in its view, does not at all change the general situation of the 
 political horizon. 
 
 " Indeed, in view of the constantly persistent agitation on the subject of the Anglo- 
 Japanese arrangement, the allied Governments of Russia and of France have deemed it 
 necessary to formulate precisely their point of view on this subject in an identic declaration 
 addressed to the Powers whose representatives, jointly with the plenipotentiaries of Russia 
 and of France, signed the Peking Protocol of August 25/September 7, 1901." 
 
 NUMBER 1902/3. 
 
 RUSSIA AND CHINA. 
 Convention with regard to Manchuria* — April 8, 1902. 
 
 His Majesty the Emperor and Autocrat of All the Russias, and His 
 Majesty the Emperor of China, with the object of re-establishing and confirming 
 the relations of good neighborhood, which were disturbed by the rising in the 
 Celestial Empire of the year 1900, have appointed their Plenipotentiaries to come 
 to an agreement on certain questions relating to Manchuria. These Pleni- 
 
 * Translation from the French text, as reprinted in RockhUl, p. 99, from China. No. 2 
 {1904), p. 36. Printed also in Hertslef, p. 509; Am. Int. Law Journal, Supplement. 1910, 
 p. 304; French text in Customs, Vol. I, p. 239; Recueil, p. 538 (where also are printed a 
 Russian Communication Officielle en date du 3/16 Dcccmhre, 1900, concernant Ic Chemin de 
 Fer Chinois de Vang-tsoun-Chang-hai Kouan, at p. 416; and a Communique Officiel: St.- 
 Pctersbourg, 30 Mars/ 12 Avril, 1902, at p. 535). See Note 1 to this document, post, p. 329.
 
 NUMBER 1902/3 : APRIL 8, 1902 327 
 
 potentiaries, furnished with full powers which were found to be in order, agreed 
 as follows : — 
 
 Article I. — Chinese authority in Manchuria to be re-established. — His 
 Imperial Majesty the Emperor of Russia, desirous of giving fresh proof of his 
 peaceable and friendly disposition towards His Majesty the Emperor of China, 
 and overlooking the fact that attacks were first made from frontier posts in 
 Manchuria on peaceable Russian Settlements, agrees to the re-establishment of 
 the authority of the Chinese Government in that region, which remains an 
 integral part of the Chinese Empire, and restores to the Chinese Government the 
 right to exercise therein governmental and administrative authority, as it existed 
 previous to the occupation by Russian troops of that region. 
 
 Article H. — China to protect railway and all Russian subjects and their 
 undertakings. — In taking possession of the governmental and administrative 
 authority in Manchuria, the Chinese Government confirms, both with regard to 
 the period and with regard to all other Articles, the obligation to observe strictly 
 the stipulations of the Contract concluded with the Russo-Chinese Bank on the 
 27th August, 1896,t and in virtue of paragraph 5 of the above-mentioned Contract, 
 takes upon itself the obligation to use all means to protect the railway and the 
 persons in its employ, and binds itself also to secure within the boundaries of 
 Manchuria the safety of all Russian subjects in general and the undertakings 
 established by them. 
 
 Evacuation of Manchuria by Russia. — The Russian Government, in view 
 of these obligations accepted by the Government of His Majesty the Emperor of 
 China, agrees on its side, provided that no disturbances arise and that the action 
 of other Powers should not prevent it, to withdraw gradually all its forces from 
 within the limits of Manchuria in the following manner : — 
 
 (o) Within six months from the signature of the Agreement, to clear the 
 southwestern portion of the Province of Mukden up to the River Liao ho of 
 Russian troops, and to hand the railways over to China. 
 
 (b) Within further six months to clear the remainder of the Province o! 
 Mukden and the Province of Kirin of Imperial troops. 
 
 (r) Within the six months following to remove the remaining Imperial 
 Russian troops from the Province of Hei-lung-chiang. 
 
 Article III. — Chinese forces pending evacuation. — In view of the neces- 
 sity of preventing in the future any recurrence of the disorders of last year. 
 In which Chinese troops stationed on the Manchurian frontier also took part, 
 the Imperial Russian and Chinese Governments shall undertake to instruct the 
 Russian military authorities and the Tsiang-Tsungs, mutually to come to an agree- 
 ment respecting the numbers and the disposition of the Chinese forces until the 
 Russian forces shall have been withdrawn. At the same time the Chinese Govern- 
 ment binds itself to organize no other forces over and above those decided upon 
 by the Russian military authorities and the Tsiang-Tsungs as sufficient to sup- 
 press brigandage and pacify the country. 
 
 Chinese forces after evacuation. — After the complete evacuation of Man- 
 churia by Russian troops, the Chinese Government shall have the right to 
 ii.e., Contract for the Chinese Eastern Railway, September 8th, 1896 (No. 1896/5, ante).
 
 328 CHINA TREATIES AND AGREEMENTS 
 
 increase or diminish the number of its troops in Manchuria, but of this must 
 duly notify the Russian Government, as it is natural that the maintenance in the 
 above-mentioned district of an over large number of troops must necessarily lead 
 to a reinforcement of the Russian military force in the neighbouring districts, 
 and thus would bring about an increase of expenditure on military requirements 
 undesirable for both States. 
 
 Chinese police guard in Manchuria. — For police service and the mainten- 
 ance of internal order in the districts outside those parts allotted to the Eastern 
 Chinese Railway Company, a police guard, under the local Governors (" Tsiang- 
 Tsungs"), consisting of cavalry and infantry, shall be organized exclusively 
 of subjects of his Majesty the Emperor of China. 
 
 Article IV. — Shanhaikwan-Sinminting railw^ay to be restored. — The Rus- 
 sian Government agrees to restore to the owners the railway Shanhaikwan-New- 
 chwang-Sinminting, which, since the end of September, 1900, has been occupied 
 and guarded by Russian troops.:]: In view of this, the Government of His 
 Majesty the Emperor of China binds itself : — 
 
 1. China alone to protect this line. — In case protection of the above-men- 
 tioned line should be necessary, that obligation shall fall exclusively on the Chi- 
 nese Government, which shall not invite other Powers to participate in its pro- 
 tection, construction, or working, nor allow other Powers to occupy the terri- 
 tory evacuated by the Russians. 
 
 2. Completion and working of this line. — The completion and working of 
 the above-mentioned line shall be conducted in strict accordance with the Agree- 
 ment between Russia and England of the 16th April, 1899,§ and the Agreement 
 with the private Corporation respecting the loan for the construction of the line.|| 
 And furthermore, the Corporation shall observe its obligations not to enter into 
 possession of or in any way to administer the Shanhaikwan-Newchwang- 
 Sinminting line. 
 
 3. Extension of line in South Manchuria. — Should, in the course of time, 
 extensions of the line in Southern Manchuria, or construction of branch lines in 
 connection with it, or the erection of a bridge in Newchwang, or the moving of 
 the terminus there, be undertaken, these questions shall first form the subject 
 of mutual discussion between the Russian and Chinese Governments. 
 
 4. China to pay Russia for repair and keep of line, — In view of the fact 
 that the expenses incurred by the Russian Government for the repair and work- 
 ing of the Shanhaikwan-Newchwang-Sinminting line were not included in the 
 sum total of damages, the Chinese Government shall be bound to pay back the 
 sum which, after examination with the Russian Government, shall be found to 
 be due. 
 
 The stipulations of all former Treaties between Russia and China which are 
 not affected by the present Agreement shall remain in force. 
 
 The Agreement shall have legal force from the day of its signature by the 
 Plenipotentiaries of both States. 
 
 t See Note 2 to this document, post, p. 330. 
 §/.^., Agreement of April 16/28, 1899 (No. 1899/3, ante). 
 
 II I.e., Shanhaikuan-Newchwang Railway Loan Agreement of October 10, 1898 (No. 
 1898/20, ante).
 
 NUMBER 1902/3 : APRIL 8, 1902 : NOTES 329 
 
 The exchange of ratifications shall take place in St. Petersburg within three 
 months from the date of the signature of the Agreement. 
 
 For the confirmation of the above, the Plenipotentiaries of the two Con- 
 tracting Powers have signed and sealed two copies of the Agreement in the 
 Russian, French, and Chinese languages. Of the three texts, which, after com- 
 parison, have been found to correspond with each other, that in the French 
 language shall be considered as authoritative for the interpretation of the 
 Agreement. 
 
 Done in Peking in duplicate, the 26th March (8th April), 1902.^ 
 
 Note 1. 
 
 In connection with this convention see also the Agreement for the transfer of the 
 Peking-Shanhaikvvan Railway from the British mihtary authorities to the Chinese civil 
 authorities, and Additional Agreement respecting the management of the northern railways, 
 April 29th, 1902 (No. 1902/4, post). See also the following arrangement between Tseng Chi, 
 Tartar General of Mukden, and Admiral Alexeieff, Commander in Chief of Kuantung 
 Peninsula and of the Russian naval and military forces in the Pacific, as printed (in trans- 
 lation) in Rockhill, p. 201, under the heading " Signed at Port Arthur, January 30, 1901," 
 and with a footnote stating that "the original convention bears date November 11, 1900": 
 
 Preliminary Russo-Chinese Arrangement regarding Manchuria. — January 30, 1901. 
 
 " 1. — All official residences in Mukden to be handed back to the Chinese officials who 
 will act in accordance with the terms arranged. 
 
 " 2. — Chinese officials to be allowed to go to their posts in all those towns taken by the 
 Russians. They may establish police forces ; in large places to the number of 500 men, in 
 medium sized places 300 men, in others 200. These police may carry arms but must be 
 provided with distinguishing badges stamped by the Russian and Chinese authorities. 
 
 " 3. — Robbers and rebels taken by Russian police to be handed over to the local officials 
 to be dealt with by Russian and Chinese law {sic). 
 
 " 4. — The Xewchwang customs duties and likin to be collected temporarily by Rus- 
 sians and the Imperial commands awaited as to the application of such funds after a treaty 
 has been signed between Russia and China. All other sources of revenue are to be under 
 the control of the Tartar General. 
 
 " 5. — The western roads of the province are at present disturbed and unsafe. Rus- 
 sian troops to be withdrawn from those parts so that traffic may be resumed. Newchwang 
 being now closed by ice, the products of the southern roads, tobacco, hemp, beans and grain 
 have no exit. The rail by Port Arthur can be used for their transport. 
 
 " 6. — Russia may establish a Resident at Mukden and two Deputies for international 
 business, who will transact such business in conjunction with the Chinese Deputies. 
 
 " 7. — The duty of the Taotai of Newchwang is to control the customs. The Russian 
 authorities are at present collecting the revenue of the Foreign Customs House. The 
 Tartar General may order the Taotai to return and act in cooperation with them. 
 
 " 8. — The disbanded Chinese troops for the most part took their weapons with them in 
 their flight. The Russian military authorities need not send to search them out. The Tartar 
 General will despatch officials in all directions to find them and so obviate any alarm to the 
 populace. 
 
 " 9. — The Tartar General has no plenipotentiary powers. The result of the negotiations 
 of Prince Ch'ing and Grand Secretary Li Hung-chang must be awaited. Russia is desirous 
 of a lasting peace. 
 
 " 10.— The Tartar General Tseng Chi is to rernain for four years in office in this 
 province to reorganize public affairs after the late disturbances. 
 
 " korostovetz. 
 " Chou Mien." 
 
 In Shina Kankei Tokushu Joyaki Isatt, p. 109, is printed a Japanese version of what 
 purports to be a " Secret Treaty between Russia and China," concluded in February, 1901. 
 
 H This treaty was signed by M. Paul Lessar, Envoy Extraordinary and Minister Pleni- 
 potentiary of Russia to China, on the part of Russia, and by Prince Ch'ing and Wang 
 Wen-shao, on the part of China.
 
 330 ' CHINA TREATIES AND AGREEMENTS 
 
 This document appears to be a translation from a Chinese original, and is somewhat obscure 
 in its phraseology. The following translation is therefore offered with all reserves : 
 
 Alleged Secret Russo-Chinese Treaty regarding Manchuria. — February, igoi. 
 
 " 1. — In accordance with the desire of His Majesty the Emperor of Russia to express 
 his friendly feelings to China, acts of hostility in Manchuria will be forgotten ; and when 
 Manchuria is completely restored, the Chinese Administration will be conducted as formerly. 
 
 "2. — In accordance with Article 6 [?5] of the Manchurian Railway Treaty [? Russo- 
 Chinese Bank Contract for the Construction and Operation of the Chinese Eastern Railway, 
 September 8, 1896], the railway guard which has been established will restore order, and 
 will be maintained until China has fulfilled the conditions mentioned in the four articles of 
 the last paragraph [? four paragraphs of the last article] of that treaty. 
 
 "3. — In case an emergency should arise, the Russian troops stationed (in this region) 
 will assist China with all their force, and repress it. 
 
 " 4. — Until the Manchurian Railway shall have been completed, China shall not quarter 
 any troops (there). If she is to place troops there in future, it shall be decided in con- 
 sultation with Russia. Moreover, the importation of arms and munitions into Manchuria 
 shall be prohibited. 
 
 " 5. — The Tartar General at Mukden, or the local officials, shall at the request of Russia 
 dismiss anyone who obstructs the relations between Russia and China. If China establishes 
 infantry patrols in Manchuria, the personnel shall be decided in consultation with Russia. 
 
 " 6. — China shall not employ foreigners other than Russians as military or naval in- 
 structors in the various Provinces of northern China. 
 
 " 7. — In order to assure the tranquility of districts, the disposal of unoccupied land, 
 mentioned in Article 5 [? 6 ] of the Lease Agreement [? Contract of September 8, 1896] 
 shall be determined by a special agreement by the local officials. The rights of self- 
 government of Shengking Province shall be abolished. 
 
 " 8. — China shall not, without the consent of Russia, transfer to other nations, or to 
 the subjects of other nations, mines or other interests in Manchuria, Mongolia or Sinkiang. 
 Moreover, she shall not construct railways in those regions. 
 
 "Except in Newchwang, there shall be no leases or grants made to the subjects of other 
 nations. 
 
 "9. — Russia shall be indemnified for her military expenditures in the present situation, 
 as speedily as in the case of the indemnities to the various Powers. Security for the 
 amount of the indemnity shall be given within the period for payment. It shall be under 
 the joint management of the Powers. 
 
 " 10. — Indemnity for damage to the railway and for damages to the engineers of the 
 railway shall be paid after consultation between China and the Company. 
 
 " 11. — The said indemnity shall be agreed upon with the Company. Compensation for 
 all or part of the amount may be made by the grant of other privileges. 
 
 " 12. — One railway may be constructed to Peking from the railway already agreed upon, 
 and it may be extended to the Great Wall [ ?] . This shall be managed in accordance with 
 the railway agreement now in force." 
 
 Note 2. 
 
 The restoration of this railway — the section of the Imperial Railways of North China 
 byond the Great Wall — was the subject of a further agreement signed at Peking on Septem- 
 ber 9/22, 1902, of which the following is the translation from the Chinese text : 
 
 Agreement for Rendition by Russia of Shanhaikwan-Hsinmintun-Yingk'ou Railway. — 
 
 September 22, 1902. 
 
 "Whereas the Treaty of March 26 (Apr. 8), 1902, provides for the rendition of the 
 said railway to China on or before September 26 (Oct 9), 1902, 
 
 " And Whereas the said limit is about to expire, 
 
 " Now, therefore, Paul Lessar, Envoy Extraordinary and Minister Plenipotentiary for 
 Russia in China, and Prince Ch'ing, President of the Board of Foreign Affairs, etc., etc., 
 etc., and Wang, Associate President of the Board of Foreign Affairs, etc., etc., etc.. Pleni- 
 potentiaries for China, have agreed upon the following Articles. 
 
 " Article I. — The Governments of Russia and China, for the purpose of turning over, 
 and receiving, the railway, respectively, shall each appoint Plenipotentiaries, who may ap- 
 point such assistants as are necessary, and who shall agree upon the procedure to be fol- 
 lowed, and the regulations to be observed, in the rendition of the railway. 
 
 " Article II. — The Imperial Chinese Railway Administration for North China shall 
 take over at their market value all works made by the Russian Military Authorities with a
 
 NUMBER 1902/4: APRIL 29, 1902 331 
 
 view toward the upkeep and protection of the railway line, and all utensils and materials 
 provided by the said Russian Military Authorities. 
 
 " Article 111. — Russian troops shall enjoy the same privileges on the Shanhaikuan- 
 Yingk'ou line as the troops of other nations enjoy, or may hereafter enjoy, on the Peking- 
 Shaiihaikuan line, for such time as Legation guards are stationed in Peking and troops in 
 Chihli for the protection of communication between Peking and the sea, as provided m the 
 Protocol of August 25 (Sept. 7), 1901; and to facilitate the transfer of time expired 
 men from such detachments, and their replacement by others, vessels transporting Rus- 
 sian troops and military supplies shall enjoy the special privilege of priority over other ship- 
 ping at the railway wharves at Yingk'ou. 
 
 " Article IV. — Russian troops and military supplies transported between Shanhaikuan 
 and Yingk'ou shall be charged for at the same schedule of prices as that in force at the 
 time on the Peking-Shanhaikuan line. 
 
 " Article V. — The offices used by the Russian Post and Telegraph Administrations at 
 Shanhaikuan shall be turned over to the Imperial Chinese Railway Administration at the 
 same time as the offices of the Imperial Chinese Railway Administration used by the 
 British Military Administration at Tientsin and Shanhaikuan are turned over. 
 
 "Article VI. — During the time stated in Article III of this Convention, Russia shall 
 enjoy the same privileges in regard to the Yingk'ou-Shanhaikuan-Peking telegraph line 
 strung on the poles erected by the Railway as the other powers enjoy between Peking and 
 Shanhaikuan under Article VIII of the British-Chinese Convention of April 16 (29) of the 
 present year in regard to the rendition to China of the Railway. 
 
 "Article VII. — The Russian Government shall enjoy the same privileges in regard 
 to the despatch of mails from Peking to Yingk'ou as other powers enjoy on the railway 
 between Peking and Shanhaikuan. Hereafter as the Russian mails increase in bulk, if 
 special cars should be necessary for their despatch, the Imperial Chinese Railway Adminis- 
 tration shall provide a car on one day's notice ; as a matter of convenience the cars 
 supplied from Peking to the Chinese Eastern Railway for the transport (of mails) 
 to Russia shall be paid for each Sunday, and the charges for such cars shall not exceed 
 the rate charged for the transport of military supplies. 
 
 " (Signed) " Paul Lessar. 
 
 " " Ch'ing. 
 
 "Wang Wen-shag." 
 
 A French translation from the Russian text of this agreement is printed in Recueil, p. 
 633. 
 
 In regard to restoration by the British military authorities of the section of the Imperial 
 railways of North China within the Wall, see the agreements of April 29, 1902 (No. 1902/4, 
 post.) 
 
 NUMBER 1902/4. 
 
 GREAT BRITAIN AND CHINA. 
 
 Agreement for the restoration of the Peking-Shanhaikuan Raihvay to the 
 Chinese civil authorities by the British military authorities, and Additional 
 Agreement respecting the management of the nortJiern raihvays and the 
 building of new branch lines * — April 29, 1902. 
 
 Agreement for Transfer of Peking-Shanhaikuan Railway to Chinese Civil 
 
 Administration. 
 
 The British MiHtary Authorities are prepared to hand over to the Admin- 
 istrators-General of the Northern Railways the railway from Peking to Shan- 
 haikuan, including the'^xtensions to Tungchow, Chien Men and Temple of 
 Heaven, on the following conditions : 
 
 * Texts as printed, in Wang, pp. 117, 123. Printed also in Recueil, pp. 546, 551. See 
 Note 1 to this document, post, p. 335.
 
 332 CHINA TREATIES AND AGREEMENTS 
 
 1. Whereas by Article 9 of the Protocol of September 7 f the Chinese Gov- 
 ernment accorded to the Powers the right of occupying certain points to be 
 determined by agreement among themselves, for the purpose of maintaining 
 free communication between Peking and the sea, and the railway is essentially 
 the principal line of communications, the Chinese Government undertakes to 
 give precedence to the transport of troops occupying these points and Legation 
 guards, horses, artillery, stores and all military impedimenta, in accordance 
 with the annexed regulations for military traffic on the line from Shanhaikuan 
 to Peking4 
 
 2. — The Administrators-General agree, as long as the military posts referred 
 to in Article 1 are maintained, that a Military Co-director and two Military 
 deputy Co-directors shall be retained, to attend to the requirements of military 
 traffic. All such requirements, whether in transport or works, shall be arranged 
 by the Military Co-director with the Chinese Administration, who will give 
 orders for their fulfilment. 
 
 The position of Co-director will be held by a British officer while the 
 German and Japanese Military Authorities will each have the power to appoint 
 one of the deputy Co-directors. 
 
 3. — To facilitate communication between the various contingents and the 
 railway administration the commanding officers may as long as the military 
 posts are maintained appoint station officers at all the stations which appear to 
 them to be of special importance, and every facility will be afforded to them to 
 guard the interests of their contingents. For this purpose they will correspond 
 direct with the British Military Co-director. 
 
 4. — The Administrators-General of the Northern Railways agree to appoint 
 an officer to take over, after verification, and fulfil all engagements and agree- 
 ments whatsoever entered into by the British Railway Administration previous 
 to the date of handing over. The same course shall be adopted with regard to 
 the buildings occupied at Tientsin by the British Railway Authorities, whether 
 as offices or quarters, should the Chinese Administration be called upon to take 
 them over. 
 
 5. — Subject to the conditions of Article 2, the fixing of rates for the con- 
 veyance of civil passengers and goods, the repairs and construction, time tables, 
 contracts, indents for material and rolling-stock, the keeping of accounts, in 
 short every matter, except the requisitioning of trains for the conveyance of 
 foreign troops, horses, artillery, stores and other military impedimenta, will be 
 entirely in the hands of the Chinese Administration, as it was previous to the 
 line being taken possession of by the Allied Military Authorities in 1900. 
 
 6. — The accounts of the British Railway Administration from the date on 
 which it took over charge from the German Military Head-quarters up to the 
 date of the handing back to the Chinese Administration shall be examined and 
 audited by two auditors, one appointed by the Officer Commanding the British 
 Contingent in North China and the other by the Chinese Administration. 
 
 7. — No part of the lines or stations existing at the date of the signature of 
 
 t No. 1901/3, ante. 
 
 t See Note 2 to this document, post, p. 336.
 
 NUMBER 1902/4: APRIL 29, 1902 333 
 
 this agreement shall be removed without communications or accommodation 
 being first provided in lieu thereof. All such changes shall, before being carried 
 out, be referred by the Chinese Administration to the Military Commanders 
 through the Military Co-director and their concurrence obtained. 
 
 8. — The railway telegraph lines shall be handed over concurrently with the 
 railways, but the military authorities shall have the right to establish a line for 
 military purposes on the railway telegraph poles. Until this line is in working 
 order military telegrams shall be treated in accordance with rule 12 in the 
 annexed regulations for military traffic, precedence being given over all other 
 messages to telegrams marked " urgent " or " clear the line " despatched by the 
 various military commanders and the officers commanding posts and officers 
 commanding Legation Guards. 
 
 9. — The transfer to the Chinese Administration shall take place on the 
 same day as the Russian Military Authorities surrender the portion of the 
 Shanhaikuan Railway Station and buildings including the bridge works and the 
 portion of line from Shanhaikuan up to and including the bridge at the Great 
 Wall near Shanhaikuan now held by them, and not before, or on the 1st of June, 
 whichever is the later date. 
 
 10. — The full consent in writing of the military commanders having troops 
 posted on the line of communications in accordance with the 9th Article of 
 the Protocol of September 7, 1901, as well as that of the Representatives of 
 Foreign Powers maintaining guards for their Legations at Peking shall be 
 obtained by the Chinese Government to the transfer from the British Military 
 Authorities to the Chinese Administration before this agreement comes into 
 force. 
 
 Signed at Peking, this twenty-ninth day of April one thousand nine hundred 
 and two. 
 
 (Sgd.) Ernest Satow. 
 
 (Sgd. in Chinese) Yuan Shih-kai. 
 
 (Sgd. in Chinese) Hu Yu-fen. 
 
 Additional Agreement. 
 
 For the better management of the railways after the British Military 
 Authorities have handed them over to the Chinese Administration, in the 
 interests of the Chinese public revenue and of the British bondholders, the 
 following Regulations have been agreed to by the Administrators-General 
 Yuan and Hu in consultation with Sir Ernest Satow, His Britannic Majesty's 
 Minister : 
 
 1. — Under the authority of Their Excellencies Yuan and Hu, the Admin- 
 istrators-General of the Northern Railways, the Board of Administration of the 
 Peking-Shanhaikuan Railway shall be constituted as follows: 
 
 Managing Director; 
 
 Foreign Director;
 
 334 CHINA TREATIES AND AGREEMENTS 
 
 General Manager (British) specially to control the works, foreign and 
 native workmen, the inspection of materials, etc. ; 
 
 Representative of the British and Chinese Corporation (unsalaried) specially 
 to deliberate in important railway matters. 
 
 To assist in the transaction of international business, there shall be an 
 English Secretary and a Chinese Translator. There shall also be a competent 
 European storekeeper. 
 
 All appointments whatsoever of officials or employes on the railway or 
 in the departments thereof shall be subject to the approval of the Board and 
 of the Administrators-General. 
 
 2. — All rolling-stock, materials, etc., obtained from foreign countries for 
 the use of the railways shall as far as possible be purchased by means of public 
 tenders. 
 
 3. — The books shall be audited annually by a qualified accountant not con- 
 nected with the railways, selected by the Representative of the British and 
 Chinese Corporation. The results of the annual working of the railways shall 
 be published in the same manner as the Imperial Maritime Customs Reports. 
 
 4. — It is agreed that the lines from the Chien Men at Peking to Fengtai 
 and from Peking to Tungchow, constructed by the British Military Administra- 
 tion, shall be added to and form part of the railways of North China pledged 
 as security for the loan of £2,300,000 by paragraph 3 of the Agreement between 
 His Excellency Hu and the British and Chinese Corporation dated October 
 10th 1898.§ 
 
 5. — Under Clause 3 of the Agreement dated October 10th 1898 it is stipu- 
 lated that the construction of branch lines or extensions shall be undertaken by 
 the Northern Railways Administration, and the intent of this stipulation is 
 hereby confirmed in order to secure the existing interests of the railways. It is 
 therefore agreed that the construction of any new railway within a distance of 
 eighty miles of any portion of the existing lines, for which concessions have not 
 been signed previous to the date of this Agreement, shall be undertaken by the 
 Administrators-General of the Imperial Northern Railways. 
 
 Such lines as the following: 
 
 A northern line from Peking or Fengtai to the Great Wall ; a chord line 
 from Tungchow to Kuyeh or Tongshan ; a line from Tientsin to Paotingfu ; 
 shall not, in view of the interests of the Imperial Northern Railways, be allowed 
 to fall into other hands. 
 
 Signed at Peking this twenty-ninth day of April one thousand nine hun- 
 dred and two. 
 
 (Signed) Ernest Satow. 
 
 {Signed in Chinese) Yuan Shih-kai. Hu Yu-fen. 
 
 § No. 1898/20, ante.
 
 NUMBER 1902/4: APRIL 29, 1902: NOTES 335 
 
 Note 1. 
 
 In connection with these agreements, see the Russo-Chinese Convention with regard 
 to Manchuria, April 8, 1902 (No. 1902/3, ante), and Agreement for the restoration of the 
 Shanhaikuan-Hsinmintun-Yink'ou Railway, September 22, 1902, printed at p. 330. 
 
 In special reference to Articles 2 and 3 of the principal agreement and Article 5 of 
 the additional agreement, consult the following exchange of despatches between the 
 Wai-wu Pu and the Russian Legation at Peking, as translated from the Russian versions 
 printed in Soglashenia, p. 1 : 
 
 Exchange of Notes between China and Russia regarding Pledging of Peking-Kalgan 
 and other Railways north of Peking. — June 23, 1902. 
 
 " Despatch of Prince Ch'ing to Mr. Lessor, June 10/23, igo2. 
 
 " Some time ago we had the honor to receive a communication from Your Excellency 
 in which you staled that Articles 2 and 3 of the original agreement concluded by the 
 dignitaries Yuan and Hu with the English Minister regarding the turning over of the 
 Peking-Tientsin-Shanhaikuan railroad lines, which Articles relate to the establishment of 
 the office of railroad co-director, as well as Article 5, which relates to branch lines, pre- 
 sented various and numerous obstacles. 
 
 " Our ministry immediately solicited a supreme order directing the aforementioned 
 dignitaries to revise (the articles in question), and we had the honor to preliminarily 
 advise Your Excellency to that effect. 
 
 " Yesterday we received the report of the aforesaid dignitaries, as follows : 
 
 " ' Articles 2 and 3 of the agreement regarding the turning over of the Peking-Tientsin- 
 Shanhaikuan railroad lines relate to the necessity of having foreign military co-directors in 
 questions concerning the transportation of military baggage. We dignitaries desire that, in 
 all questions relating to the transportation of foreign baggage and articles necessary to 
 the detachments, the heads of the Guard detachments of the Foreign Missions at Peking, 
 as well as the higher military authorities looking after the unobstructed communication 
 between the capital and the sea, should confer in due time and directly with the main rail- 
 road administration. As regards Article 5 of the agreement concluded on the same date 
 in regard to the privileges of the railroad lines, which article provides that all branch 
 lines must be constructed by the dignitaries having chief supervision over the northern 
 railroads, we dignitaries desire to stipulate that the branches to the north of Peking, as 
 well as the line from Peking to Chang-chia-k'ou (Kalgan), must be constructed by the 
 Chinese Government without interference by foreigners and with Chinese capital, without 
 the application of foreign capital for this purpose; and these lines, or the revenues derived 
 therefrom, must never serve as security for loans placed in foreign nations. In accordance 
 with what is set forth in the report, we request you to refer the matter to the English 
 Minister for examination and reply.' 
 
 " Our ministry did not delay in officially communicating the circumstances of the case 
 to the English Government. 
 
 " On June 6 last the ministry received the reply of the English Government, as follows : 
 
 " ' After analysing all the points set forth in the communication of the Honorable 
 Ministry on the basis of the deliberations of the dignitaries Yuan and Hu, I deem it my 
 duty to remark that they are in accordance with my views and that, as a matter of course, 
 I can give my consent to their being carried into execution.' 
 
 " Upon the receipt of the reply, our Ministry assured itself that the aforesaid digni- 
 taries and the English Minister had revised the articles in the way desired by Your 
 Excellency, and, upon re-examination, we amended points 2 and 3 of the Chinese-English 
 agreement so as to provide that foreign military co-directors shall not be admitted into 
 the railroad administration ; at the same time point 5 of the supplementary agreement was 
 amended as stated before. 
 
 " We hope that Your Excellency, having long worked for the strengthening of friendly 
 (international) relations, will sincerely welcome the turning over by England of the Peking- 
 Tientsin-Shanhaikuan railroad lines and that you will gladly lend your cooperation in order 
 to confirm the sincerity of the friendly relations between China and Russia. 
 
 " As regards the communication of the Tsung-li-yamen to former Minister de Giers 
 of May 20/June 1, 1899 [No. 1899/5, ante], reading as follows: 'The Chinese Government 
 agrees that, if any additional railroads are built in future to the north of Peking or to the 
 northeast in the direction of the Russian frontier, and unless they are built with Chinese 
 capital by Chinese officials, if the intention is manifested of holding conferences in view of 
 turning over the construction to a foreign nation, such intention shall be primarily discussed 
 with the Russian Government or a Russian syndicate for the purpose of granting the con- 
 cession (for the work) ; and the concesssion shall by no means be granted to any other
 
 336 CHINA TREATIES AND AGREEMENTS 
 
 nation or to a syndicate of any other nation,' our Ministry still adheres to its original deci- 
 sion, in which it makes no change. 
 
 " While communicating the foregoing to Your Excellency for your examination, we 
 have the honor to request you to answer and give your consent to carrying it into execution." 
 
 "Dispatch of Mr. Lessor to Prince Ch'ing, June 11/24, 1902. 
 
 " I had the honor to receive your communication. Honorable Prince and Dignitaries, 
 under date of June 10/23 instant, in regard to the amendment of certain articles of the 
 Chinese-English agreement of April 16/29 last, which articles relate to the northern rail- 
 roads, and against which I deemed it my duty to protest on April 29 (May 12) on behalf 
 of my Government. 
 
 "I very highly appreciate the feelings of genuine justice of the Honorable Ministry, 
 which hastened to solicit a supreme order for the restoration of the rights of Russia 
 which were violated by these articles. You inform me that, pursuant to the supreme decree 
 issued, the dignitaries Yuan and Hu prepared the necessary amendments, which were 
 communicated by you, Honorable Prince and Dignitaries, to the English Minister, who 
 expressed his consent thereto. 
 
 " From the note to the English Minister as quoted in your communication as well as 
 from the remainder of your communication itself, I am gratified to see that foreign military 
 and civil co-directors will not be admitted in the administration of the northern railroads. 
 I am sincerely glad of this, for if there were foreign military or civil co-directors I could 
 only give my consent to the turning over of the road from Peking to Shanhaikuan on 
 condition that a Russian military and civil co-director be also appointed. 
 
 " The amendment to Article 5 of the special agreement concluded on the same date, 
 as set forth in your communication, very correctly places the question of the railroad 
 lines to the north of the latitude of Peking and especially the line from Peking to Kalgan. 
 You also recognize as being in full force the communication of the Tsung-li-yamen 
 addressed to the former Minister Kammerherr de Giers on May 20/June 1st, 1899, regarding 
 the roads north of Peking to the Russian frontier. 
 
 " In view hereof I shall not fail to report at once to my Government in regard to the 
 happy termination of the misunderstandings which had arisen. The possibility now presents 
 itself again of continuing unlrammeled the cultivation of our friendly relations, and I on 
 my part am ready to cooperate in the earliest possible turning over to the Chinese admin- 
 istration of the railroads now occupied." 
 
 Note 2. 
 
 The regulations mentioned in Article 1 are given as follows in Wang, p. 177. 
 Regulations for Military Traffic on Peking-Shanhaikwan Railway. 
 
 " 1. — All kinds of railway traffic for the military purposes of all contingents will be 
 accepted at the prices given in paragraph 8, in so far as the traffic capacity of the line 
 permits, regard being had to the numerical strength of each contingent, including fol- 
 lowers, in proportion to the total number of the allied troops in the Province of Chihh, 
 
 " 2. — The Railway Administration is not responsible for any damage or hurt to military 
 persons or military goods while these are being transported on the railway. 
 
 " 3. — Military persons in uniform do not require to purchase tickets. With a view to 
 the settlement of accounts between the Railway Administration and the various con- 
 tingents, officers and military officials will inform the guard on duty of their destination, 
 the number of soldiers and horses accompanying them and the number of articles of lug- 
 gage, while non-commissioned officers and men must be provided with an order signed by 
 an officer or a military official, which will serve as a pass for the journey and will be 
 given up at the end of it to the guards on duty. 
 
 " 4. — 'For civilians who are travelling on military duty, and who are not required to 
 purchase tickets, a pass must be made out as above by some military authority, and pro- 
 vided with his Office stamp, giving the destination and the amount of the goods. 
 
 " 5. — In the transport of goods, their loading, unloading, and guarding during the 
 journey must be arranged for by the military authority despatching them. 
 
 " With every waggon-load two men, and with every living animal one man will be 
 forwarded free on the goods trucks. 
 
 " 6. — In the case of troops and goods which are to be transported as a body or in 
 one load in the trains laid down in the timetables, at least twenty-four hours' notice must 
 be given to the railway direction at Tientsin or at the station of despatch. Demands for
 
 NUMBER 1902/4: APRIL 29, 1902: NOTES 
 
 337 
 
 special trains are to be restricted as much as possible. Passenger special trains can only 
 be supplied for the Commanders and Generals of the various contingents. 
 
 " 7. — Everybody is bound to obey the orders of the railway officials. To facilitate com- 
 munication between the railway officials and the Military persons belonging to other 
 nations who are travelling, station officers belonging to the various contingents who rep- 
 resent the interests of the latter are to be found at all the larger stations. 
 
 " 8.— Tariff : 
 
 -( 
 
 A waggon-load of 
 
 do 
 
 do 
 
 do 
 
 For each kilometre 
 or part of one 
 
 . . . . .... 2 cents 
 
 1 cent 
 
 0.5 cent 
 
 5 cents 
 3 cents 
 2 cents 
 
 " (A) Persons:— 
 
 Officers, military officials and first class passengers .... 
 Non-commissioned officers and men and 2nd class 'passengers 
 3rd class passengers (carried in open or closed waggons) 
 
 "(B) Living Animals: — 
 
 A horse, a cow ( If a whole waggon- 
 
 An ass or pony -| load is not cheap- 
 
 A pig, calf, sheep or goat ( er 
 
 " (C) Passenger Luggage: — 
 
 Hand baggage, the bulk and weight of which permit its 
 being allowed in the passenger carriage, is carried free. 
 Passenger baggage of the usual bulk and weight, which 
 must be carried in the luggage van is charged 5 cents for 
 each travelling zone or part of a zone, i.e. Peking to 
 Tientsin, Tientsin to Tongshan, Tongshan to Shanhaikuan. 
 
 "(D) Goods:— 
 
 30 tons 
 
 20 tons 
 
 15 tons .... .... .... .... 
 
 10 tons 
 
 Single articles the weight of which is attested by a rnilitary 
 authority on a certificate provided with his office stamp for 
 
 every 100 kilog. or part of the same 
 
 For goods packages not so attested after these have been 
 weighed or judged by the railway authorities, the starting on 
 Goods waggon of 10 tons .... .... . •••• •.••• 
 
 For special trains the above prices are the journey being 
 accepted as confirming this weighing, for every 10 kilog. 
 or part of same .... .... .... .... . . . ■ 
 
 [It would appear that several lines have been transposed in 
 this and the preceding clause as printed in Wang, the true 
 reading probably being as follows : 
 For goods packages not so attested after these have been 
 weighed or judged by the railway authorities, the starting 
 on the journey being accepted as confirming this weighing, 
 for every 10 kilog. or part of same .... .... • • • • 
 
 For special trains the above prices are Goods waggons of 
 10 tons 
 
 "(E) Military carriages: — 
 
 Four wheeled carriage or field-gun and limber either whole 
 or taken to pieces .... .... _ . . • • • • • • • • • • 
 
 Two wheeled carts field-guns or limbers 
 
 " (F) Special waggons and special trains: — 
 
 Passenger carriages 1st and 2nd class 
 
 Luggage or guard vans 
 
 Goods waggon of 30 tons .... 
 
 do 20 tons .... . . • ■ 
 
 do 15 tons ;• ■ 
 
 to be charged, and further for the loan of a locomotive 
 and tender 60 dollars for each day or part of a day, but 
 at least 2 dollars for each kilometre of run and not less than 
 75 dollars in all. 
 
 "9. — Hiring of locomotives and waggons: .... 
 
 "For the loan of the rolling-stock of the line to other Administrations, counting 
 from the time of its transfer to their line until its return, the following prices are to be 
 charged for each vehicle and for each twenty- four hours or part of the same:— 
 
 .36 cents 
 .24 cents 
 .18 cents 
 .12 cents 
 
 .0.5 cent 
 
 .12 cents 
 
 .0.1 cent 
 
 , 0.1 cent 
 12 cents] 
 
 . .10 cents 
 . . 5 cents 
 
 . .30 cents 
 . .15 cents 
 . . .36 cents 
 . .24 cents 
 . .18 cents
 
 
 
 20 
 
 
 
 15 
 
 
 
 10 
 
 
 
 iy2 
 
 
 
 1 
 
 
 
 11/2 
 
 
 
 1 
 
 338 CHINA TREATIES AND AGREEMENTS 
 
 Mcx. Dollars. 
 Locomotive with three or more couples of 
 
 driving wheels .... .... .... .... 
 
 Locomotive with two couples of driving wheels 
 Lighter Locomotives .... .... .... .... 
 
 Passenger carriages of all classes .... .... 
 
 Luggage vans .... .... .... .... .... 
 
 Large goods waggons of 20 or nore tons capacity 
 Small goods waggons of less than 20 tons capacity 
 "10. Delays in loading and unloading: 
 
 " For loading and unloading of goods waggons which last longer than twent\'-four 
 hours after notice of the arrival of the waggon has been given, the following rates will 
 be charged for each waggon and part of twenty-four hours : — 
 
 Dollars. 
 Goods waggons of 30 tons .... .... .... .... .... .... 9 
 
 " 20 " 6 
 
 " 15 " 4.5 
 
 " 10 " 3 
 
 " No change is hereby made in the rights of the Railway Administration to use for 
 other purposes waggons which have been detained more than twenty-four hours for loading 
 or unloading, or to cause the goods which have been loaded in them to be imloaded at 
 the cost of the sender, and without the railway being responsible for their safe keeping. 
 
 "11. Postal arrangements; 
 
 " The military postal packages of all the allied contingents will be carried free. 
 
 " 12. Utilization of the railway telegraph : 
 
 " Military telegrams will be sent along the whole line at an unit word price of 40 cents 
 for ordinary service messages (to be marked S), and of 60 cents for urgent service mes- 
 sages (to be marked XS), provided that the necessity for the use of the railway's telegraph 
 is attested by military authority with his office stamp, and that the service of the railway 
 permits of the telegraph line being so used. Urgent service messages rank behind train 
 reports and before line service telegrams ; ordinary service messages after line service 
 telegrams." 
 
 NUMBER 1902/5. 
 
 INTERNATIONAL AND CHINA. 
 
 Provisional Rules for defining the respective jurisdictions of the mixed courts 
 of the International and French Settlements at Shanghai.^ — June 10, 1902. 
 
 In all civil cases between Chinese the plaintiff will follow the defendant, 
 and will sue him before the Mixed Court of his, the defendant's, residence. 
 
 2. — In all criminal cases where foreigners are not concerned and in all 
 police cases against Chinese residents in the Settlements, the Mixed Court of the 
 Settlement in which the crime or contravention has been committed, is alone 
 competent. 
 
 [N. B. — The above two clauses include cases where the defendant or accused 
 is in the employ of a foreigner, the countersignature of the Consular represen- 
 tative of the national concerned being as heretofore to be obtained.] 
 
 * Text as referred by Senior Consul at Shanghai to Dean of Diplomatic Body at 
 Peking. A somewhat defective text is printed in China, No. 2 (1903). These provisional 
 rules were adopted by the Consular Body at Shanghai on June 10, 1902, and agreed to 
 by the Shanghai Taotai on the following day : having been referred to the Diplomatic 
 Body at Peking, they received its approval at the meeting of June 28, 1902 (Negociations 
 de Pekin, etc., p. LXIl).
 
 NUMBER 1902/6: AUGUST 29, 1902 339 
 
 3. — In mixed civil cases, 
 
 (a.) If the plaintiff is a foreigner — not of French nationality — and the 
 Chinese defendant is a resident of the International Settlement, he is to be sued 
 before the Mixed Court of the International Settlement. 
 
 (b.) If the plaintiff is French and the Chinese defendant is a resident of 
 the French Settlement he is to be sued before the Mixed Court of the French 
 Settlement. 
 
 (c.) If the plaintiff is a foreigner — not of French nationality — and the 
 Chinese defendant is a resident of the French Settlement, the latter shall be 
 sued before the Mixed Court of the International Settlement whose warrant or 
 summons for his appearance after counter-signature by the French Consul- 
 General will be executed or served by the runners of the International Mixed 
 Court with the assistance of the police of the French Settlement, without pre- 
 vious hearing in the Mixed Court of the French Settlement. 
 
 (d.) If the plaintiff is French and the Chinese defendant is a resident of 
 the International Settlement the latter shall be sued before the Mixed Court of 
 the French Settlement whose warrant or summons for his appearance after 
 counter-signature by the Senior Consul will be executed or served by the 
 runners of the French Mixed Court with the assistance of the police of the 
 International Settlement, without previous hearing in the Mixed Court of the 
 International Settlement. 
 
 4. — In criminal cases where a foreigner — not of French nationality — is 
 complainant, the Mixed Court of the International Settlement is competent ; if 
 a Frenchman is complainant the Mixed Court of the French Settlement is 
 competent. 
 
 The provisions under clause 3, (c) and (d) as to executing warrants also 
 apply under this clause. 
 
 NUMBER 1902/6. 
 
 AUSTRIA-HUNGARY, BELGIUM, DENMARK, FRANCE, GERMANY, 
 GREAT BRITAIN, ITALY, JAPAN, THE NETHERLANDS, NOR- 
 WAY, PORTUGAL, RUSSIA, SPAIN, SWEDEN, THE UNITED 
 STATES AND CHINA. 
 
 Tariff Agreement relating to the revised import tariff, 1902* — August 29, 
 
 1902.J 
 
 Whereas it was provided by the Final Protocol signed at Peking on the 7th 
 of September 1901 (Article VI) that the existing Tariff on goods imported into 
 
 * Text as printed in Customs, Vol. I, p. 953, omitting the Tariff and attached Rules, 
 which are herein printed as an Annex to the American Commercial Treaty of October 8, 
 1903 (No. 1903/5), at pp. 433, 449, post. For Tarifif and Rules now in force, however, see 
 Revised Import Tarifif of 1918 (Xo. 1918/18, post). 
 
 Printed also in Hertslet, p. 148 ; Soglashenia, p. 80 ; Traites et Conventions, p. 163. 
 
 See Note 1 to this document, post, p. 340. 
 
 t In regard to date, see Note 2 to this document, post, p. 341,
 
 340 CHINA TREATIES AND AGREEMENTS 
 
 China should be increased to an effective five per cent. ; and whereas it was fur- 
 ther provided that all Duties levied on Imports ad valorem should be converted 
 as far as feasible and with the least possible delay into specific Duties, this con- 
 version to be effected in the following manner : The average value of merchandise 
 at the time of landing during the three years 1897, 1898, and 1899, that is to say, 
 the market price less the amount of Import Duty and incidental expenses to be 
 taken as the basis for the valuation of such merchandise : 
 
 The Special Commissioners of China : 
 
 and of : 
 
 have agreed and determined, on the basis aforesaid, upon the Tariff hereto 
 appended together with certain Rules for the application thereof ; and do hereby 
 agree that the said Tariff and Rules shall be binding on the Governments and 
 subjects of their respective countries. 
 
 The Tariff and Rules aforesaid shall be binding on and after the 
 
 Should it be ascertained hereafter that any articles have been omitted from 
 this Tariff which it is found can be conveniently provided for on a specific basis 
 in terms of the Final Protocol of 1901, it is understood that the necessary addi- 
 tions shall be made at rates to be mutually agreed upon by Representatives of 
 the various Powers by whom this Tariff has been signed. 
 
 It is understood that, in the event of there being any difference of mean- 
 ing between the English and Chinese texts of the Tariff and Rules, the sense 
 as expressed in the English text shall be held to be the correct sense. 
 
 The present Agreement has been drawn up in two identical copies and signed 
 by the Special Commissioners of the countries aforesaid. One copy shall be 
 given to the Special Commissioners of China and one copy shall be given to 
 the Special Commissioners of 
 
 Done at Shanghai, in the Empire of China, this day of 
 
 in the year of Our Lord one thousand nine hundred and , corresponding 
 
 with the Chinese date, the day of the moon of the 
 
 year of Kuang Hsu. 
 
 Note 1. 
 
 In connection with this agreement see also the British commercial treaty of September 5, 
 1902 (No. 1902/7), and the American and Japanese commercial treaties of October 8, 1903 
 (Nos. 1903/4 and 1903/5, post) ; also the Revised Tariflf approved by the International 
 Tariff Commission, December 19, 1918 (No. 1918/18, post). 
 
 For the duty-free list, see the following copy of a despatch addressed by the foreign 
 members of the Import Tariff Revision Commission to the Chinese Commissioners, as 
 printed in Customs: 
 
 Despatch of Import Tariff Commission regarding Duty Free List. — August 29, 1902. 
 
 "SH.A.NGHAI, 29th August 1902. 
 " Your Excellencies, 
 
 " With reference to the new Tariff which has just been signed, this note puts on record 
 that the following words have been erased from Rule II of the Rules at the end of the 
 Tariff: — 'Samples in reasonable quantities, and certified to be for show and not for sale; 
 Government Stationery for Consulates in China ; Passengers Baggage for bona fide private 
 use; Circulars, etc., distributed gratis, of mercantile houses; and Private Effects (not 
 including Wines, Stores, and Tobacco) of individual foreigners imported by themselves 
 for their own personal use and not for sale, provided that the Customs Authorities are satis-
 
 NUMBER 1902/6: AUGUST 29, 1902: NOTES 
 
 341 
 
 fied that the articles in question fulfil these conditions ; ' and also ' Personal Baggage of 
 less than twenty passengers and.' 
 
 " It is understood between the Foreign and Chinese Commissioners that, though the 
 above words have been eliminated from the Rules, the matter therein referred to \yill be 
 dealt with by the Inspector General of the Imperial Maritime Customs at his discretion, in 
 accordance with the instructions issued by him subsequent to the Final Protocol of the 7th 
 September 1901. 
 
 " We have the honour to be, 
 
 " Your Excellencies obedient Servants, 
 "(Signed) " HIRSCH. 
 
 "JAS. L. MACKAY. 
 
 "J. YAMAOKA. 
 
 "E. HIOKI. 
 
 "D. SIFFERT. 
 
 " ADVOCAAT " F. B. s'JACOB. 
 
 " Dr. BOYE. 
 
 "D. SIFFERT. 
 
 "JOHN GOODNOW." 
 
 "DUTY FREE LIST. 
 
 "(Vide I. G. Circulars Nos. 979, 984, 1,016, 1,020, 1,022, 1,025, 1,026, instructions 
 received.) 
 
 12th October 1901 
 
 12th October 1901 
 7th November 1901 
 19th April 1902 
 
 •1st Mav 1902 
 "31st May 1902 
 
 "10th May 1902 
 
 " 3rd June 1902 
 
 " 12th October 1901 
 '•3rd June 1902 
 
 "3rd June 1902 
 
 Foreign Rice, Cereals, and Flour ; Gold and Silver, coined 
 and uncoined. 
 
 Legations Supplies from abroad. 
 
 Suplies for the use of Foreign Forces, military and naval. 
 
 Official Stationery actually transmitted by Foreign Govern- 
 ment Departments for Foreign Consulates. 
 
 Supplies under Government Stores Certificates. 
 
 Materials for Railways the import of which ' free ' is pro- 
 vided for by agreements antedating the Peace Protocol. 
 
 Samples, in reasonable quantities, certified for show and 
 not for sale. 
 
 Circulars, etc., distributed gratis by mercantile houses. 
 
 The bond fide baggage of travellers, i.e.. Passengers Lug- 
 gage arriving either with the owner or by a vessel other 
 than that by which the passenger travels. 
 
 Clothing, Books, Pictures, and Furniture already in use 
 when brought in by residents and not for sale. 
 \'_B. — Ships Coal and Provisions are entitled to Drawbacks." 
 
 9. 
 
 10 
 
 "31st May 1902 
 
 For the export tariff, see the Anglo-Chinese Agreement containing rules of trade, 
 November 8. 1858 {Hertslet, p. 45). 
 
 Note 2. 
 
 The date is that of the original conclusion of the agreement: in Customs, loc. cit., it is 
 noted that the Tariff Agreement was signed by the representatives of the several Powers 
 on the following dates : 
 
 "1902, August 29th (Kuang Hsu, 28th year, 7th moon, 26th day), to come into effect 
 October 31st (10th moon, 1st day) : 
 
 " Austria-Hungary 
 " Belgium .... 
 
 " Germany .... 
 " Great Britain 
 " Japan *. . . . 
 
 " The Netherlands .... 
 
 " Spain .... .... 
 
 " United States of America 
 
 Signed by E. VON HIRSCH {ad referendum). 
 " D. SIFFERT {ad referendum). 
 
 A. B0Y6. 
 
 Sir JAMES L. AIACKAY. 
 E. HIOKI. 
 M. ODAGIRI. 
 J. YAMAOKA. 
 
 D. SIFFERT. 
 J. GOODNOW.
 
 342 CHINA TREATIES AND AGREEMENTS 
 
 " The Representatives of China signing on the above date were — 
 
 "LU HAI-HUAN. 
 "WU TTNG-FANG. 
 "1903, March 28th (Kuang Hsii, 29th year, 2nd moon, 30th day), to come into effect April 
 27th (4th moon, 1st day) : 
 
 " Italy Signed by Major C. NERAZZINI. 
 
 " Russia " D. M. POSDNEEFF. 
 
 " 1904, March 23rd (Kuang Hsu, 30th year, 2nd moon, 7th day), to come into effect May 
 5th (3rd moon, 20th day) : 
 
 "Denmark Signed by F. HAGBERG. 
 
 "1904, March 30th (Kuang Hsu, 30th year, 2nd moon, 14th day), to come into effect on 
 signature : 
 " France Signed by L. RATARD. 
 
 "^ri'^r \ " F. HAGBERG. 
 
 "1904, November 11th (Kuang Hsu; 30th year, 10th moon, 5th day), to come into effect on 
 signature : 
 
 '■ Portugal Signed by J. D'A. CASTELLO BRANCO. 
 
 " The Representatives of China signing on the above datfj were — 
 
 " LU , HAI-HUAN. 
 " SHENG HSUAN-HUAI." 
 
 NUMBER 1902/7. 
 
 GREAT BRITAIN AND CHINA. 
 
 Treaty respecting commercial relations, etc. {with Annexes.)* — September 
 
 5, 1902. 
 
 His Majesty the King of the United Kingdom of Great Britain and Ireland 
 and of the British Dominions beyond the Seas, Emperor of India, and His 
 Majesty the Emperor of China, having resolved to enter into negotiations with 
 a view to carrying out the provision contained in Article 11 of the Final Protocol 
 signed at Peking on the 7th September, 1901, mider which the Chinese Govern- 
 ment agreed to negotiate the amendments deemed useful by the foreign Govern- 
 ments to the Treaties of Commerce and Navigation and other subjects concern- 
 ing commercial relations with the object of facilitating them, have for that 
 purpose named as their Plenipotentiaries, that is to say : 
 
 His Majesty the King of Great Britain and Ireland, His Majesty's Special 
 Commissioner, Sir James Lyle Mackay, Knight Commander of the Most Emi- 
 nent Order of the Indian Empire, a member of the Council of the Secretary of 
 State for India, &c. 
 
 And His Majesty the Emperor of China, the Imperial Commissioners Lii 
 Hai-huan, President of the Board of Public Works, &c., and Sheng Hsiian-huai, 
 Junior Guardian of the Heir-Apparent, Senior Vice-President of the Board of 
 Public Works, &c. 
 
 * Text as printed in British Treaty Series, No. 17 (1903). Printed also in Rockhill, p. 
 102; Customs, Vol. I, p. 543; Hertslet, p. 171; Recueil, p. 594. 
 
 In connection with this treaty see the Tariff Agreement of August 29, 1902 (No. 1902/6, 
 ante) ; see also Japanese and American commercial treaties of October 8, 1903 (Nos. 1903/4 
 and 1903/5, post).
 
 NUMBER 1902/7 : SEPTEMBER 5, 1902 343 
 
 Who having communicated to each other their respective full powers, and 
 found them to be in good and due form have agreed upon and concluded 
 the following Articles: — 
 
 Article I.f — Delay having occurred in the past in the issue of Drawback 
 Certificates owing to the fact that those documents have to be dealt with by the 
 Superintendent of Customs at a distance from the Customs Office, it is now 
 ac^reed that Drawback Certificates shall hereafter in all cases be issued by 
 the Imperial Maritime Customs within three weeks of the presentation to the 
 Customs of the papers entitling the applicant to receive such Drawback 
 Certificates. 
 
 These Certificates shall be valid tender to the Customs authorities in pay- 
 ment of any duty upon goods imported or exported (transit dues excepted), 
 or shall, in the case of Drawbacks on foreign goods re-exported abroad within 
 three years from the date of importation, be payable in cash without deduction 
 by the Customs Bank at the place where the import duty was paid. 
 
 But if, in connection with any application for a Drawback Certificate, the 
 Customs authorities discover an attempt to defraud the revenue, the applicant 
 shall be liable to a fine not exceeding five times the amount of the duty whereof 
 he attempted to defraud the Customs, or to a confiscation of the goods. 
 
 Article II. $ — China agrees to take the necessary steps to provide for a uni- 
 form national coinage which shall be legal tender in payment of all duties, taxes 
 and other obligations throughout the Empire by British as well as Chinese 
 subjects. 
 
 Article III. — China agrees that the duties and likin combined levied on 
 goods carried by junks from Hong Kong to the Treaty ports in the Canton 
 Province and vice versa, shall together not be less than the duties charged by 
 the Imperial Maritime Customs on similar goods carried by steamer. 
 
 Article IV.§ — Whereas questions have arisen in the past concerning the 
 right of Chinese subjects to invest money in non-Chinese enterprises and com- 
 panies, and whereas it is a matter of common knowledge that large sums of 
 Chinese capital are so invested, China hereby agrees to recognise the legality of 
 all such investments past, present and future. 
 
 It being, moreover, of the utmost importance that all shareholders in a Joint- 
 Stock Company should stand on a footing of perfect equality as far as mutual 
 obligations are concerned, China further agrees that Chinese subjects who have 
 or may become shareholders in any British Joint-Stock Company shall be held 
 to have accepted, by the very act of becoming shareholders, the Charter of In- 
 corporation or Memorandum and Articles of Association of such Company and 
 regulations framed thereunder as interpreted by British Courts, and that Chinese 
 Courts shall enforce compliance therewith by such Chinese shareholders, if a 
 suit to that effect be entered, provided always that their liability shall not be other 
 or greater than that of British shareholders in the same Company. 
 
 Similarly the British Government agree that British subjects investing in 
 
 t See American treaty of 1903, Article 8. 
 
 t See American treaty of 1903, Article 13, and Japanese treaty of 1903, Article 13. 
 
 § See Japanese treaty of 1903, Article 4.
 
 344 CHINA TREATIES AND AGREEMENTS 
 
 Chinese Companies shall be under the same obligations as the Chinese share- 
 holders in such Companies. 
 
 The foregoing shall not apply to cases which have already been before the 
 Courts and been dismissed. 
 
 Article V. — The Chinese Government undertake to remove within the next 
 two years the artificial obstructions to navigation in the Canton River. The 
 Chinese Government also agree to improve the accommodation for shipping 
 in the harbour of Canton and to take the necessary steps to maintain that im- 
 provement, such work to be carried out by the Imperial Maritime Customs and 
 the cost thereof to be defrayed by a tax on goods landed and shipped by British 
 and Chinese alike according to a scale to be arranged between the merchants and 
 Customs. 
 
 The Chinese Government are aware of the desirability of improving the 
 navigability by steamer of the waterway between Ichang and Chungking, but 
 are also fully aware that such improvement might involve heavy expense and 
 would affect the interests of the population of the Provinces of Szechuen, Hunan, 
 and Hupeh. It is, therefore, mutually agreed that until improvements can be 
 carried out steam-ship owners shall be allowed, subject to approval by the Imperial 
 Maritime Customs, to erect, at their own expense, appliances for hauling through 
 the rapids. Such appliances shall be at the disposal of all vessels, both steamers 
 and junks, subject to regulations to be drawn up by the Imperial Maritime Cus- 
 toms. These appliances shall not obstruct the waterway or interfere with the 
 free passage of junks. Signal stations and channel marks where and when neces- 
 sary shall be erected by the Imperial Maritime Customs. Should any practical 
 scheme be presented for improving the waterway and assisting navigation without 
 injury to the local population or cost to the Chinese Government, it shall be con- 
 sidered by the latter in a friendly spirit. || 
 
 Article VI. f[ — The Chinese Government agree to make arrangements to give 
 increased facilities at the open ports for bonding and for repacking merchandise 
 in bond, and, on official representation being made by the British authorities, to 
 grant the privileges of a bonded warehouse to any warehouse which it is estab- 
 lished to the satisfaction of the Customs authorities affords the necessary security 
 to the revenue. 
 
 Such warehouses will be subject to regulations, including a scale of fees 
 according to commodities, distance from custom-house and hours of working, 
 to be drawn up by the Customs' authorities who will meet the convenience of 
 merchants so far as is compatible with the protection of revenue. 
 
 Article VII.* — Inasmuch as the British Government afford protection to 
 Chinese trade-marks against infringement, imitation, or colourable imitation by 
 British subjects, the Chinese Government undertake to afford protection to 
 British trade-marks against infringement, imitation, or colourable imitation by 
 Chinese subjects. 
 
 The Chinese Government further undertake that the Superintendents of 
 
 Northern and of Southern Trade shall establish offices within their respective 
 
 * See American treaty of 1903, Article 9, and Japanese treaty of 1903, Article 5, 
 II See Japanese treaty of 1903, Article 2. 
 K See American treaty of 1903, Article 6.
 
 NUMBER 1902/7: SEPTEMBER 5, 1902 345 
 
 jurisdictions under control of the Imperial Maritime Customs where foreign trade- 
 marks may be registered on payment of a reasonable fee. 
 
 Article VIII. f — Preamble. — The Chinese Government, recognizing that 
 the system of levying likin and other dues on goods at the place of production, 
 in transit, and at destination, impedes the free circulation of commodities and 
 injures the interests of trade, hereby undertake to discard completely those 
 means of raising revenue with the limitations mentioned in section 8. 
 
 The British Government, in return, consent to allow a surtax, in excess 
 of the Tariff rates for the time being in force to be imposed on foreign goods 
 imported by British subjects and a surtax in addition to the export duty on 
 Chinese produce destined for export abroad or coastwise. 
 
 It is clearly understood that, after likin barriers and other stations for tax- 
 ing goods in transit have been removed, no attempt shall be made to revive them 
 in any form or under any pretext whatsoever; that in no case shall the surtax 
 on foreign imports exceed the equivalent of one and a half times the import 
 duty leviable in terms of the Final Protocol signed by China and the Powers on 
 the 7th day of September, 1901 ; that payment of the import duty and surtax 
 shall secure for foreign imports, whether in the hands of Chinese or non-Chinese 
 subjects, in original packages or otherwise, complete immunity from all other 
 taxation, examination or delay ; that the total amount of taxation leviable on 
 native produce for export abroad shall, under no circumstances, exceed 7^/4 per 
 cent, ad valorem. 
 
 Keeping these fundamental principles steadily in view, the High Contracting 
 Parties have agreed upon the following methods of procedure. 
 
 Section 1. — The Chinese Government undertake that all barriers of what- 
 soever kind, collecting likin or such like dues or duties, shall be permanently 
 abolished on all roads, railways, and waterways in the Eighteen Provinces of 
 China and the Three Eastern Provinces. This provision does not apply to the 
 Native Custom-Houses at present in existence on the seaboard or waterways, 
 at open ports, on land routes, and on land frontiers of China. 
 
 Sec. 2. — The British Government agree that foreign goods on importation, 
 in addition to the effective 5% import duty as provided for in the Protocol of 
 1901, shall pay a special surtax equivalent to one and a half times the said duty 
 to compensate for the abolition of likin, of transit dues in lieu of likin, and of 
 all other taxation on foreign goods, and in consideration of the other reforms 
 provided for in this Article ; but this provision shall not impair the right of 
 China to tax salt, native opium, and native produce as provided for in sections 
 3, 5, 6, and 8. 
 
 The same amount of surtax shall be levied on goods imported into the 
 Eighteen Provinces of China and the Three Eastern Provinces across the land 
 frontiers as on goods entering China by sea. 
 
 Sec. 3. — All Native Custom-Houses now existing, whether at the Open 
 
 t See American treaty of 1903, Article 4, and Japanese treaty of 1903, Article 1. 
 
 To the text of this article, as printed in British Treaty Series, No. i? (JQOS), is ap- 
 pended the following note : 
 
 " Article VTII does not come into force until other Powers have signified their acceptance 
 of the engagements set forth therein with regard to the payment of surtaxes, etc."
 
 346 CHINA TREATIES AND AGREEMENTS 
 
 Ports, on the seaboard, on rivers, inland waterways, land routes or land frontiers, 
 as enumerated in the Hu Pu and Kung Pu Tse Li (Regulations of the Boards 
 of Revenue and Works) and Ta Ch'ing Hid Tien (Dynastic Institutes), may 
 remain ; a list of the same, with their location, shall be furnished to the British 
 Government for purposes of record. 
 
 Wherever there are Imperial Maritime Custom-Houses, or wherever such 
 may be hereafter placed, Native Custom-Houses may be also established ; as well 
 as at any points either on the seaboard or land frontiers. 
 
 The location of Native Custom-Houses in the Interior may be changed as 
 the circumstances of trade seem to require, but any change must be communicated 
 to the British Government, so that the list may be corrected ; the originally stated 
 number of them shall not, however, be exceeded. 
 
 Goods carried by junks or sailing-vessels trading to or from Open Ports 
 shall not pay lower duties than the combined duties and surtax on similar cargo 
 carried by steamers. 
 
 Native produce, when transported from one place to another in the Interior, 
 shall, on arrival at the first Native Custom-House after leaving the place of 
 production, pay duty equivalent to the export surtax mentioned in Section 7. 
 
 When this duty has been paid, a certificate shall be given which shall describe 
 the nature of the goods, weight, number of packages, &c., amount of duty 
 paid, and intended destination. This certificate, which shall be valid for a fixed 
 period of not less than one year from the date of payment of duty, shall free the 
 goods from all taxation, examination, delay, or stoppage at any other Native 
 Custom-Houses passed en route. 
 
 If the goods are taken to a place not in the foreign settlements or conces- 
 sions of an Open Port, for local use, they become there liable to the Consumption 
 Tax described in Section 8. 
 
 If the goods are shipped from an Open Port, the certificate is to be accepted 
 by the Custom-House concerned, in lieu of the export surtax mentioned in Sec- 
 tion 7. 
 
 Junks, boats, or carts shall not be subjected to any taxation beyond a small 
 and reasonable charge, paid periodically at a fixed annual rate. This does not 
 exclude the right to levy, as at present, tonnage (Chuan Chao) and port dues 
 (Chuan Liao) on junks. 
 
 Sec. 4. — Foreign opium duty and present likin — which latter will now 
 become a surtax in lieu of likin — shall remain as provided for by existing 
 Treaties. 
 
 Sec. 5. — The British Government have no intention whatever of interfering 
 with China's right to tax native opium, but it is essential to declare that, in her 
 arrangements for levying such taxation, China will not subject other goods to 
 taxation, delay, or stoppage. 
 
 China is free to retain at important points on the borders of each province — 
 either on land or water — offices for collecting duty on native opium, where duties 
 or contributions leviable shall be paid in one lump sum ; which payment shall cover 
 taxation of all kinds within that province. Each cake of opium will have a stamp 
 affixed as evidence of duty payment. Excise officers and police may be employed
 
 NUMBER 1902/7: SEPTEMBER 5, 1902 347 
 
 in connection with these offices ; but no barriers or other obstructions are to be 
 erected, and the Excise officers or poHce of these offices shall not stop or molest 
 any other kind of goods, or collect taxes thereon. 
 
 A list of these offices shall be drawn up and communicated to the British 
 Government for record. 
 
 Sec. 6. — Likin on salt is hereby abolished and the amount of said likin and of 
 other taxes and contributions shall be added to the salt duty, which shall be col- 
 lected at place of production or at first station after entering the province where 
 it is to be consumed. 
 
 The Chinese Government shall be at liberty to establish salt reporting offices 
 at which boats conveying salt which is being moved under salt passes or certifi- 
 cates may be required to stop for purposes of examination and to have their 
 certificates vise'd, but at such offices no likin or transit taxation shall be levied 
 and no barriers or obstructions of any kind shall be erected. 
 
 Sec. 7. — The Chinese Government may recast the Export Tariff with specific 
 duties as far as practicable, on a scale not exceeding 5 per cent, ad valorem; but 
 existing export duties shall not be raised until at least six months' notice has been 
 given. 
 
 In cases where existing export duties are above 5 per cent, they shall be 
 reduced to not more than that rate. 
 
 An additional special surtax of one half the export duty payable for the 
 time being, in lieu of internal taxation and likin, may be levied at time of export 
 on goods exported either to foreign countries or coastwise. 
 
 In the case of silk, whether hand or filature reeled, the total export duty 
 shall not exceed a specific rate equivalent to not more than 5 per cent, ad valorem. 
 Half of this specific duty may be levied at the first Native Custom-House in the 
 interior which the silk may pass and in such case a certificate shall be given as 
 provided for in Section 3, and will be accepted by the Custom-House concerned 
 at place of export in lieu of half the export duty. Cocoons passing Native 
 Custom-Houses shall be liable to no taxation whatever. Silk not exported but 
 consumed in China is liable to the Consumption Tax mentioned and under 
 conditions mentioned in Section 8. 
 
 Sec. 8. — The abolition of the likin system in China and the abandonment 
 of all other kinds of internal taxation on foreign imports and on exports will 
 diminish the revenue materially. The surtax on foreign imports and exports 
 and on coastwise exports is intended to compensate in a measure for this loss of 
 revenue, but there remains the loss of likin revenue on internal trade to be met, 
 and it is therefore agreed that the Chinese Government are at liberty to impose a 
 Consumption Tax on articles of Chinese origin not intended for export. 
 
 This tax shall be levied only at places of consumption and not on goods 
 while in transit, and the Chinese Government solemnly undertake that the ar- 
 rangements which they may make for its collection shall in no way interfere 
 with foreign goods or with native goods for export. The fact of goods being of 
 foreign origin shall of itself free them from all taxation, delay, or stoppage, after 
 having passed the Custom-House. 
 
 Foreign goods which bear a similarity to native goods shall be furnished
 
 348 CHINA TREATIES AND AGREEMENTS 
 
 by the Custom-House, if required by the owner, with a protective certificate for 
 each package, on payment of import duty and surtax, to prevent the risk of any 
 dispute in the interior. 
 
 Native goods brought by junks to Open Ports, if intended for local con- 
 sumption — irrespective of the nationality of the owner of the goods — shall be 
 reported at the Native Custom-House only, where the Consumption Tax may be 
 levied. 
 
 China is at liberty to fix the amount of this (Consumption) tax, which may 
 vary according to the nature of the merchandise concerned, that is to say, accord- 
 ing as the articles are necessaries of life or luxuries ; but it shall be levied at a 
 uniform rate on goods of the same description, no matter whether carried by 
 junk, sailing-vessel, or steamer. As mentioned in Section 3, the Consumption 
 Tax is not to be levied within foreign settlements or concessions. 
 
 Sec. 9. — An excise equivalent to double the import duty as laid down in the 
 Protocol of 1901 is to be charged on all machine-made yarn and cloth manu- 
 factured in China, whether by foreigners at the Open Ports or by Chinese any- 
 where in China. 
 
 A rebate of the import duty and two-thirds of the Import Surtax is to be 
 given on raw cotton imported from foreign countries, and of all duties, including 
 Consumption Tax, paid on Chinese raw cotton used in mills in China. 
 
 Chinese machine-made yarn or cloth having paid excise is to be free of 
 Export Duty, Export Surtax, Coast-Trade Duty, and Consumption Tax. This 
 Excise is to be collected through the Imperial Maritime Customs. 
 
 The same principle and procedure are to be applied to all other products 
 of foreign type turned out by machinery, whether by foreigners at the Open 
 Ports or by Chinese anywhere in China. 
 
 This stipulation is not to apply to the out-turn of the Hanyang and Ta Yeh 
 Iron Works in Hupeh and other similar existing Government works at present 
 exempt from taxation ; or to that of Arsenals, Government Dockyards, or estab- 
 lishments of that nature for Government purposes which may hereafter be 
 erected. 
 
 Sec. 10. — A member or members of the Imperial Maritime Customs Foreign 
 Stafif shall be selected by each of the Governors-General and Governors, and 
 appointed, in consultation with the Inspector-General of Imperial Maritime Cus- 
 toms to each province for duty in connection with Native Customs Aflfairs, Con- 
 sumption Tax, Salt and Native Opium Taxes. These officers shall exercise an 
 efficient supervision of the working of these departments, and in the event of 
 their reporting any case of abuse, illegal exaction, obstruction to the movement of 
 goods, or other cause of complaint, the Governor-General or Governor con- 
 cerned will take immediate steps to put an end to same. 
 
 Sec. 11. — Cases where illegal action as described in this Article is com- 
 plained of shall be promptly investigated by an officer of the Chinese Govern- 
 ment of sufficiently high rank, in conjunction with a British officer and an officer 
 of the Imperial Maritime Customs, each of sufficient standing; and in the event 
 of its being found by a majority of the investigating officers that the complaint 
 is well founded and loss has been incurred, due compensation is to be at once
 
 NUMBER 1902/7: SEPTEMBER 5, 1902 349 
 
 paid from the Surtax funds, through the Imperial Maritime Customs at the 
 nearest open port. The High Provincial Officials are to be held responsible that 
 the officer guilty of the illegal action shall be severely punished and removed 
 from his post. 
 
 If the complaint turns out to be vi^ithout foundation complainant shall be 
 held responsible for the expenses of the investigation. 
 
 His Britannic Majesty's Minister will have the right to demand investiga- 
 tion where from the evidence before him he is satisfied that illegal exactions or 
 obstructions have occurred. 
 
 Sec. 12 — The Chinese Governent agree to open to foreign trade, on the 
 same footing as the places opened to foreign trade by the Treaties of Nanking 
 and Tientsin, the following places namely : — 
 Ch'angsha in Hunan ; $ 
 Wanhsien in Szechuen; 
 Nganking in Anhui; 
 
 Waichow (Hui-chow) in Kuangtung; and 
 Kongmoon (Chiang-men) in Kuangtung. § 
 
 Foreigners residing in these Open Ports are to observe the Municipal and 
 Police Regulations on the same footing as Chinese residents, and they are not 
 to be entitled to establish Municipalities and Police of their own within the limits 
 of these Treaty ports except with the consent of the Chinese authorities. 
 
 If this Article does not come into operation the right to demand under it 
 the opening of these ports, with the exception of Kongmoon, which is provided 
 for in Article X, shall lapse. 
 
 Sec. 13. — Subject to the provisions of Section 14, the arrangements pro- 
 vided for in this Article are to come into force on the 1st January, 1904. 
 
 By that date all likin barriers should be removed and officials employed in the 
 collection of taxes and dues prohibited by this Article shall be removed from 
 their posts. 
 
 Sec. 14. — The condition on which the Chinese Government enter into the 
 present engagement is that all Powers entitled to most-favoured-nation treat- 
 ment in China enter into the same engagements as Great Britain with regard to 
 the payment of surtaxes and other obligations imposed by this Article on His 
 Britannic Majesty's Government and subjects. 
 
 The conditions on which His Britannic Majesty's Government enter into the 
 present engagement are : — 
 
 (1.) That all Powers who are now or who may hereafter become entitled 
 to most-favoured-nation treatment in China enter into the same engagements ; 
 
 (2.) And that their assent is neither directly nor indirectly made dependent 
 on the granting by China of any political concession, or of any exclusive com- 
 mercial concession. 
 
 Sec. 15. — Should the Powers entitled to most-favoured-nation treatment by 
 China have failed to agree to enter into the engagements undertaken by Great 
 Britain under this Article by the 1st January, 1904, then the provisions of the 
 
 t See Japanese treaty of 1903, Article 10. § 2. 
 
 § See Kongmoon Customs Regulations of March 25, 1904.
 
 350 CHINA TREATIES AND AGREEMENTS 
 
 Article shall only come into force when all the Powers have signified their 
 acceptance of these engagements. 
 
 Sec. 16. — When the abolition of likin and other forms of internal taxation 
 on goods as provided for in this Article has been decided upon and sanctioned, 
 an Imperial Edict shall be published in due form on yellow paper and circulated, 
 setting forth the abolition of all likin taxation, likin barriers and all descriptions 
 of internal taxation on goods, except as provided for in this Article. 
 
 The Edict shall state that the Provincial High Officials are responsible that 
 any official disregarding the letter or spirit of its injunction shall be severely 
 punished and removed from his post. 
 
 Article IX. || — The Chinese Government, recognizing that it is advantageous 
 for the country to develop its mineral resources, and that it is desirable to attract 
 foreign as well as Chinese capital to embark in mining enterprises, agree within 
 one year from the signing of this Treaty to initiate and conclude the revision of 
 the existing Mining Regulations. China will, with all expedition and earnestness, 
 go into the whole question of Mining Rules and, selecting from the Rules of 
 Great Britain, India, and other countries, regulations which seem applicable to the 
 condition of China, she will recast her present Mining Rules in such a way as, 
 while promoting the interests of Chinese subjects and not injuring in any way 
 the sovereign rights of China, shall oflFer no impediment to the attraction of 
 foreign capital or place foreign capitalists at a greater disadvantage that they 
 would be under generally accepted foreign Regulations. 
 
 Any mining concession granted after the publication of these new Rules 
 shall be subject to their provisions. 
 
 Article X.jf — Whereas in the year 1898 the Inland Waters of China were 
 opened to all such steam-vessels, native or foreign, as might be especially regis- 
 tered for that trade at the Treaty ports, and whereas the Regulations dated the 
 28th July, 1898, and Supplementary Rules dated September, 1898, have been 
 found in some respects inconvenient in working, it is now mutually agreed to 
 amend them and to annex such new Rules to this Treaty. These Rules shall 
 remain in force until altered by mutual consent. 
 
 It is further agreed that Kongmoon shall be opened as a Treaty port, and 
 that, in addition to the places named in the special Article of the Burmah Con- 
 vention of the 4th February, 1897, British steamers shall be allowed to land or 
 ship cargo and passengers, under the same regulations as apply to the " Ports of 
 Call " on the Yang-tsze River, at the following " Ports of Call " : Pak Tau Hau 
 (Pai-t'u k'ou), Lo Ting Hau (Lo-ting k'ou), and Do Sing (Tou-ch'eng) ; and 
 to land or discharge passengers at the following ten passenger landing stages on 
 the West River: — Yung Ki (Jung-chi), Mah Ning (Ma-ning), Kau Kong (Chiu- 
 chiang), Kulow (Ku-lao), Wing On (Yung-ah), How Lik (Hou-li), Luk Pu 
 (Lu-pu), Yuet Sing (Yiieh-ch'eng), Luk To (Lu-tu), and Fung Chuen (Feng- 
 ch'uan). 
 
 II See American treaty of 1903, Article 7. 
 
 I See American treaty of 1903, Article 12, and Japanese treaty of 1903, Article 3. For 
 Regulations and Supplementary Rules, see No. 1898/17, ante. For Kongmoon Customs 
 Regulations, March 25, 1904, see No. 1904/1, post. For West River Regulations, July 30, 
 1904, see No. 1904/3, post.
 
 NUMBER 1902/7: SEPTEMBER 5, 1902 351 
 
 Article XL* — His Britannic Majesty's Government agree to the prohibition 
 of the general importation of morphia into China, on condition, however, that 
 the Chinese Government will allow of its importation, on payment of the Tariff 
 import duty and under special permit, by duly qualified British medical prac- 
 titioners and for the use of hospitals, or by British chemists and druggists who 
 shall only be permitted to sell it in small quantities and on receipt of a requisition 
 signed by a duly qualified foreign medical practitioner. 
 
 The special permits above referred to will be granted to an intending im- 
 porter on his signing a bond before a British Consul guaranteeing the fulfilment 
 of these conditions. Should an importer be found guilty before a British Consul 
 of a breach of his bond, he will not be entitled to take out another permit. Any 
 British subject importing morphia without a permit shall be liable to have such 
 morphia confiscated. 
 
 This Article will come into operation on all other Treaty Powers agreeing 
 to its conditions, but any morphia actually shipped before that date will not be 
 affected by this prohibition. 
 
 The Chinese Government, on their side, undertake to adopt measures at 
 once, to prevent the manufacture of morphia in China. 
 
 Article XII. f — China having expressed a strong desire to reform her 
 judicial system and to bring it into accord with that of Western nations, Great 
 Britain agrees to give every assistance to such reform, and she will also be pre- 
 pared to relinquish her extra-territorial rights when she is satisfied that the state 
 of the Chinese laws, the arrangement for their administration, and other con- 
 siderations warrant her in so doing. 
 
 Article XIII. — The missionary question in China being, in the opinion of 
 the Chinese Government, one requiring careful consideration, so that, if possible, 
 troubles such as have occurred in the past may be averted in the future. Great 
 Britain agrees to join in a Commission to investigate this question, and, if 
 possible, to devise means for securing permanent peace between converts and 
 non-converts, should such a Commission be formed by China and the Treaty 
 Powers interested. 
 
 Article XIV. — Whereas under Rule V appended to the Treaty of Tientsin 
 of 1858, British merchants are permitted to export rice and all other grain from 
 one port of China to another under the same conditions in respect of security as 
 copper " cash," it is now agreed that in cases of expected scarcity or famine 
 from whatsoever cause in any district, the Chinese Government shall, on giving 
 twenty-one days' notice, be at liberty to prohibit the shipment of rice and other 
 grain from such district. 
 
 Should any vessel specially chartered to load rice or grain previously con- 
 tracted for, have arrived at her loading port prior to or on the day when a notice 
 of prohibition to export comes into force she shall be allowed an extra week in 
 which to ship her cargo. 
 
 If, during the existence of this prohibition, any shipment of rice or grain is 
 allowed by the authorities, the prohibition shall, ipso facto, be considered can- 
 celled and shall not be reimposed until six weeks' notice has been given. 
 
 * See American treaty of 1903, Article 14. 
 
 t See American treaty of 1903, Article 15, and Japanese treaty of 1903, Article 11.
 
 352 CHINA TREATIES AND AGREEMENTS 
 
 When a prohibition is notified, it will be stated whether the Government 
 have any Tribute or Army Rice which they intend to ship during the time of 
 prohibition, and if so, the quantity shall be named. 
 
 Such rice shall not be included in the prohibition, and the Customs shall 
 keep a record of any Tribute or Army Rice so shipped or landed. 
 
 The Chinese Government undertake that no rice, other than Tribute or 
 Army Rice belonging to the Government, shall be shipped during the period of 
 prohibition. 
 
 Notifications of prohibitions, and of the quantities of Army or Tribute Rice 
 for shipment shall be made by the Governors of the provinces concerned. 
 
 Similarly, notifications of the removals of prohibitions shall be made by 
 the same authorities. 
 
 The export of rice and other grain to foreign countries remains prohibited. 
 
 Article XV.$ — It is agreed that either of the High Contracting Parties to 
 this Treaty may demand a revision of the Tariflf at the end of ten years ; but if 
 no demand be made on either side within six months after the end of the first 
 ten years, then the Tariff shall remain in force for ten years more, reckoned 
 from the end of the preceding ten years; and so it shall be at the end of each 
 successive ten years. 
 
 Any Tariff concession which China may hereafter accord to articles of the 
 produce or manufacture of any other State shall immediately be extended to 
 similar articles of the produce or manufacture of His Britannic Majesty's Do- 
 minions by whomsoever imported. 
 
 Treaties already existing between the United Kingdom and China shall 
 continue in force in so far as they are not abrogated or modified by stipulations 
 of the present Treaty. 
 
 Article XVI. — The English and Chinese texts of the present Treaty have 
 been carefully compared, but in the event of there being any difference of mean- 
 ing between them, the sense as expressed in the English text shall be held to be the 
 correct sense. 
 
 The ratifications of this Treaty, under the hand of his Majesty the King 
 of Great Britain and Ireland, and of His Majesty the Emperor of China re- 
 spectively, shall be exchanged at Peking within a year from this day of signature. § 
 
 In token whereof the respective Plenipotentiaries have signed and sealed 
 this Treaty, two copies in English and two in Chinese. 
 
 Done at Shanghai this 5th day of September in the year of our Lord 1902; 
 corresponding with the Chinese date, the 4th day of the 8th moon of the 28th 
 year of Kwang Hsii. 
 
 (L.S.) Jas. L. Mackay. 
 
 (Signature of his Excellency Lii Hai-huan.) 
 (Signature of his Excellency Sheng Hsiian-huai.) 
 
 (Seal of the Chinese Plenipotentiaries.) 
 
 t See American treaty of 1903, Articles 5 and 17, and Japanese treaty of 1903, Articles 
 1 and 9. 
 
 § Ratifications exchanged at Peking, July 28, 1903.
 
 NUMBER 1902/7: SEPTEMBER 5, 1902: ANNEXES 353 
 
 Annex A (1). 
 
 (Translation.) 
 
 Lii, President of the Board of Works : 
 
 Sheng, Junior Guardian of the Heir-Apparent, Vice-President of the Board of Works; 
 Imperial Chinese Commissioners, for dealing with questions connected with the 
 Commercial Treaties, to 
 Sir James Alackay, His Britannic IMajesty's Special Commissioner for the discussion of 
 ' Treaty matters. 
 
 Shanghai: K. H. xxviii, 7th moon, Wth day. {received 
 August 15, 1902). 
 
 We have the honour to inform you that we have received the following telegram from 
 his Excellency Liu, Governor-General of the Liang Chiang, on the subject of clause 2, 
 mutually agreed upon by us : • 
 
 " As regards this clause, it is necessary to insert therein a clear stipulation, to the 
 effect that, no matter what changes may take place in the future, all customs duties must 
 continue to be calculated on the basis of the existing higher rate of the Haikwan Tael 
 over the Treasury Tael, and that the ' touch ' and weight of the former must be made good." 
 
 As we have already arranged with j^ou that a declaration of this kind should be em- 
 bodied in an official Note, and form an Annex to the present Treaty, for purposes of record, 
 we hereby do ourselves the honour to make this communication. 
 
 (Seal of the Imperial Commissioners for dealing with 
 questions connected with Treaty Revision.) 
 
 Annex A (2). 
 Gentlemen, Shanghai, August 18, 1902. 
 
 I have the honour to acknowledge the receipt of your despatch of the 14th instant for- 
 warding copy of a telegram from his Excellency Liu, Governor-General of the Liang Chiang, 
 on the subject of Article II. of the new Treaty, and in reply I have the honour to state that 
 his Excellency's understanding of the Article is perfectly correct. 
 
 I presume the Chinese Government will make arrangements for the coinage of a 
 national silver coin of such weight and touch as may be decided upon by them. These 
 coins will be made available to the public in return for a quantity of silver bullion of equiva- 
 lent weight and fineness plus the usual mintage charge. 
 
 The coins which will become the national coinage of China will be declared by the 
 Chinese Government to be legal tender in payment of Customs duty and in discharge of 
 obligations contracted in Haikwan taels, but only at their proportionate value to the Haikwan 
 tael, whatever that may be. 
 
 I have, Src. 
 (Signed) Jas. L. Mackay. 
 
 Their Excellencies 
 
 Lii Hai-huan and Sheng Hsiian-huai, 
 &c. &c. &c. 
 
 Annex B (1). 
 
 (Translation.) 
 
 Lii, President of the Board of Works; 
 
 Sheng, Junior Guardian of the Heir-Apparent, Vice-President of the Board of Works; 
 Imperial Chinese Commissioners for dealing with questions connected with 
 the Commercial Treaties, to 
 Sir James L. Mackay, His Britannic Majesty's Special Commissioner. 
 
 Shanghai, September 2, 1902. 
 We have the honour to inform you that on the 22nd August, we, in conjunction with 
 the Governors-General of the Liang Chiang and the Hti-kuang Provinces, their Excellencies 
 Liu and Chang, addressed the following telegraphic Memorial to the Throne : —
 
 354 CHINA TREATIES AND AGREEMENTS 
 
 " Of the revenue of the different Provinces derived from likin of all kinds, a portion 
 is appropriated for the service of the foreign loans, a portion for the Peking Government, 
 and the balance is reserved for the local expenditure of the Provinces concerned. 
 
 " In the negotiations now being conducted with Great Britain for the amendment of 
 the Commercial Treaties, a mutual arrangement has been come to providing for the impo- 
 sition of additional taxes, in compensation for the abolition of all kinds of likin and other 
 imposts on goods, prohibited by Article VIII. After payment of interest and sinking fund 
 on the existing foreign loan, to the extent to which likin is thereto pledged, these addi- 
 tional taxes shall be allocated to the various Provinces to make up deficiences and replace 
 revenue, in order that no hardships may be entailed on them. With a view to preserving 
 the original intention underlying the proposal to increase the duties in compensation for 
 the loss of revenue derived from likin and other imposts on goods, it is further stipulated 
 that the surtaxes shall not be appropriated for other purposes, shall not form part of the 
 Imperial Maritime Customs revenue proper, and shall in no case be pledged as security for 
 any new foreign loan. 
 
 " It is therefore necessary to memoralize for the issue of an Edict, giving effect to the 
 above stipulations and directing the Board of Revenue to find out what proportion of 
 the provincial revenues derived from likin of all kinds, now about to be abolished, each 
 Province has hitherto had to remit, and what proportion it has been entitled to retain, so 
 that, when the Article comes into operation, due apportionment may be made accordingly, 
 thus providing the Provinces with funds available for local expenditure, and displaying 
 equitable and just treatment towards all." 
 
 On the 1st instant an Imperial Decree " Let action, as requested, be taken " was issued, 
 and we now do ourselves the honour reverently to transcribe the same for your information. 
 
 (Seal of the Imperial Commissioners for dealing with 
 questions connected with Treaty Revision.) 
 
 Annex B (2). 
 
 Gentlemen, Shanghai, September 5th, 1902. 
 
 I have the honour to acknowledge the receipt of your despatch of the 2nd instant for- 
 warding the text of the Memorial and Decree dealing with the disposal of the surtaxes. 
 
 I understand that the surtaxes in addition to not being pledged for any new foreign 
 loan are not to be pledged to, or held to be security for, liabilities already contracted by 
 China except in so far as likin revenue has already been pledged to an existing loan. 
 
 I also understand from the Memorial that the whole of the surtaxes provided by Article 
 VIII of the New Treaty goes to the Provinces in proportions to be agreed upon between 
 them and the Board of Revenue, but that out of these surtaxes each Province is obliged to 
 remit to Peking the same contribution as that which it has hitherto remitted out of its 
 likin collections, and that the Provinces also provide as hitherto out of these surtax funds 
 whatever may be necessary for the service of the foreign loan to which likin is partly 
 pledged. 
 
 I hope your Excellencies will send me a reply to this despatch and that you will agree 
 to this correspondence forming part of the Treaty as an Annex. 
 
 I have, &c. 
 (Signed) Jas. L. Mack.w. 
 
 Their Excellencies 
 
 Lil Hai-huan and Sheng Hsiian-huai, 
 &c. &c. &c. 
 
 Annex B (3). 
 
 (Translation.) 
 
 Lii, President of the Board of Works; 
 
 Sheng, Junior Guardian of the Heir-Apparent, Vice-President of the Board of Works; 
 Imperial Chinese Commissioners for dealing with questions connected with the 
 Commercial Treaties, to 
 Sir James L. Mackay, His Britannic IMajesty's Special Commissioner. 
 
 Shanghai, September 5th, 1902. 
 We have the honour to acknowledge the receipt of your communication of to-day's 
 date with regard to the allocation of the surtax funds allotted to the Provinces, and to 
 inform you that the views therein expressed are the same as our own.
 
 NUMBER 1902/7: SEPTEMBER 5, 1902: ANNEXES 355 
 
 We would, however, wish to point out that, were the whole amount of the allocation 
 due paid ov^r to the Provinces, unnecessary expense would be incurred in the retransmis- 
 sion by them of such portions thereof as would have to be remitted to Peking in place of 
 the contributions hitherto payable out of likin revenue. The amount, therefore, of the 
 allocation due to the Provinces, arranged between them and the Board of Revenue, will 
 be retained in the hands of the Maritime Customs, who will await the instructions of the 
 Provinces in regard to the remittance of such portion thereof as may be necessary to fulfil 
 their obligations, and (on receipt of these instructions) will send forward the amount 
 direct. The balance will be held to the order of the Provinces. 
 
 In so far as likin is pledged to the service of the 1898 Loan, a similar method of pro- 
 cedure will be adopted. 
 
 As you request that this correspondence be annexed to the Treaty, we have th honour 
 to state that we see no objection to this being done. 
 
 (Seal of the Imperial Commissioners for dealing with 
 questions connected with Treaty Revision.) 
 
 Annex C. 
 
 Inland Waters Steam Navigation. 
 
 Additional Rules. 
 
 1. — British steam ship owners are at liberty to lease warehouses and jetties on the 
 banks of waterways from Chinese subjects for a term not exceeding twenty-five years, 
 with option of renewal on terms to be mutually arranged. In cases where British mer- 
 chants are unable to secure warehouses and jetties from Chinese subjects on satisfactory 
 terms, the local officials, after consultation with the Minister of Commerce, shall arrange 
 to provide these on renewable lease as above mentioned at current equitable rates. 
 
 2. — Jetties shall only be erected in such positions that they will not obstruct the inland 
 waterway or interfere with navigation, and with the sanction of the nearest Commissioner 
 of Customs; such sanction, however, shall not be arbitrarily withheld. 
 
 3. — British merchants shall pay taxes and contributions on these warehouses and jetties 
 on the same footing as Chinese proprietors of similar properties in the neighbourhood. 
 British merchants may only employ Chinese agents and staff to reside in warehouses so 
 leased at places touched at by steamers engaged in inland traffic to carry on their business ; 
 but British merchants may visit these places from time to time to look after their affairs. 
 The existing rights of Chinese jurisdiction over Chinese subjects shall not by reason of 
 this clause be diminished or interfered with in any way. 
 
 4. — Steam vessels navigating the inland waterways of China shall be responsible for 
 loss caused to riparian proprietors by damage which they may do to the banks or works 
 on them and for the loss which may be caused by such damage. In the event of China 
 desiring to prohibit the use of some particular shallow waterway by launches, because 
 there is reason to fear that the use of it by them would be likely to injure the banks and 
 cause damage to the adjoining country, the British authorities, when appealed to, shall, if 
 satisfied of the validity of the objection, prohibit the use of that waterway by British 
 launches, provided that Chinese launches are also prohibited from using it. 
 
 Both Foreign and Chinese launches are prohibited from crossing dams and weirs at 
 present in existence on inland waterways where they are likely to cause injury to such 
 works, which would be detrimental to the water service of the local people. 
 
 5. — The main object of the British Government in desiring to see the inland water- 
 ways of China opened to steam navigation being to afford facilities for the rapid transport 
 of both foreign and native merchandise, they undertake to offer no impediment to the 
 transfer to a Chinese Company and the Chinese flag of any British Steamer which rnay 
 now or hereafter be employed on the inland waters of China, should the owner be willing 
 to make the transfer. 
 
 In event of a Chinese company registered under Chinese law being formed to run 
 steamers on the inland waters of China the fact of British subjects holding shares in such 
 a company shall not entitle the steamers to fly the British flag. 
 
 6. — Registered steamers and their tows are forbidden, just as junks have always been 
 forbidden, to carry contraband goods. Infraction of this rule will entail the penalties pre- 
 scribed in the Treaties for such an offence, and cancellation of the Inland \Vaters Navi- 
 gation Certificate carried by the vessels, which will be prohibited from thereafter plying 
 on inland waters. 
 
 7. — As it is desirable that the people living inland should be disturbed as little as 
 possible by the advent of steam vessels to which they are not accustomed, inland waters
 
 356 CHINA TREATIES AND AGREEMENTS 
 
 not hitherto frequented by steamers shall be opened as gradually as may be convenient 
 to merchants and only as the owners of steamers may see prospect of remunerative trade. 
 
 In cases where it is intended to run steam vessels on waterways on which such vessels 
 have not hitherto run, intimation shall be made to the Commissioner of Customs at the 
 nearest open port who shall report the matter to the Ministers of Commerce. The latter 
 in conjunction with the Governor-General or Governor of the Province, after careful con- 
 sideration of all the circumstances of the case, shall at once give their approval. 
 
 8. — A registered steamer may ply within the waters of a port, or from one open port 
 or ports to another open port or ports, or from one open port or ports to places inland, 
 and thence back to such port or ports. She may, on making due report to the Customs, 
 land or ship passengers or cargo at any recognized places of trade passed in the course of 
 the voyage ; but may not ply between inland places exclusively except with the consent of 
 the Chinese Government. 
 
 9.— Any cargo and passenger boats may be towed by steamers. The helmsman and 
 crew of any boat towed shall be Chinese. All boats, irrespective of ownership, must be 
 registered before they can proceed inland. 
 
 10. — These Rules are supplementary to the Inland Steam Navigation Regulations of 
 July and September, 1898. The latter, where untouched by the present Rules, remain in 
 full force and effect: but the present Rules hold in the case of such of the former Regula- 
 tions as the present Rules affect. The present Rules, and the Regulations of July and Sep- 
 tember, 1898, to which they are supplementary, are provisional, and may be modified, as 
 circumstances require, by mutual consent. 
 
 Done at Shanghai this 5th day of September in the year of our Lord, 1902; correspond- 
 ing with the Chinese date, the 4th day of the 8th moon of the 28th year of Kwang Hsii. 
 
 (L.S.) Jas. L. Mackay. 
 
 (Signature of his Excellency Lii Hai-huan.) 
 (Signature of his Excellency Sheng Hsiian-huai.) 
 
 (Seal of the Chinese Plenipotentiaries.) 
 
 NUMBER 1902/8. 
 
 RUSSIA (Russo-Chinese Bank) AND CHINA. 
 
 Loan Contract and Operating Contract for the Chengtingfn-Taiyuanfu Railway* 
 
 —October 15, 1902. 
 
 (/) — Loan Contract. 
 
 Between the undersigned : 
 
 (1) The Imperial Chinese Railway Company, represented by H. E. Sheng 
 Hsiian-huai, its Director General, duly empowered by the Chinese Government; 
 
 (2) The Russo-Chinese Bank, represented by Mr. C. R. Wehrung, one of 
 its Directors, with full powers, acting for said Bank; 
 
 It has been agreed and settled as follows: 
 
 Article I. — Under the terms of the Imperial Edict of July 8, 1897, and 
 May 17. 1898, i. e., the 9th day of the 6th moon of the 23d year, and the 24th 
 day of the 3d moon of the 24th year of the reign of Kuang Hsii, the Governor 
 
 ♦Translation from French versions, as printed in Wang, p^. 187, 211, of the Chinese 
 texts. Extracts from the Loan Contract are printed in Rockhill. p. 313. 
 
 The terms of these contracts are, mutatis mutandis, almost identical with those of the 
 Kaifengfu-Honanfu Railway Contracts of November 12, 1903 (No. 1903/7, post). 
 
 The Chengtingfu-Taiyuanfu Railway is generally known, from the first characters of 
 the names, as the Cheng-Tai Railway.
 
 NUMBER 1902/8: OCTOBER 15, 1902 357 
 
 and the Director of the Commercial Bank of Shansi were authorized to sign a 
 loan contract with the Russo-Chinese Bank for the building of a railway from 
 Chengtingfu to Taiyuanfu. 
 
 This line, having a length of about 250 kilometers, forms a natural branch 
 of the Hankow-Peking line ; consequently the Governor of Shansi, in a report 
 dated June 25, 1902, i. e., the 18th day of the 5th moon of the 28th year of the 
 reign of H. M. Kuang Hsii, proposed to the Chinese Government to instruct the 
 Director of the Imperial Chinese Railway Company to personally take up the 
 matter. 
 
 The recommendation was approved, and H. E. Sheng Hsiian-huai, Director 
 General of the Imperial Chinese Railway Company, received instructions from 
 the Chinese Government, in virtue of a Decree of September 7, 1902, i. e., the 
 6th day of the 7th moon of the 28th year of the reign of Kuang Hsii, as a con- 
 sequence of a joint report presented by the Wai-wu Pu and the Central Bureau 
 of Mines and Railways, to negotiate a new loan contract for said railway with 
 the Russo-Chinese Bank. Before signing the present contract, H. E. Sheng 
 Hsiian-huai has submitted it for ratification by the Chinese Government which 
 has ratified it by a decree of October 13, 1902, i. e., the 14th day of the 9th 
 moon of the 26th year of the reign of H. M. Kuang Hsii, of which a copy is 
 annexed to the present contract (Annex No. 1). 
 
 Under the terms of this edict, H. E. Sheng Hsiian-huai has decided to make 
 a Government 5% foreign gold loan of a nominal principal of 40,000,000 
 francs. 
 
 This loan will be known as the Chinese 5% Loan of 1902 (i. e., Emprunt 
 Chinois 5%, 1902). 
 
 It is understood that the present contract, upon its signature, will annul 
 all previous contracts concerning the railway from Chengtingfu to Taiyuanfu, 
 signed by the Governor of Shansi in favor of the Russo-Chinese Bank.f 
 
 Article II. — This Loan will be represented by 80,000 bonds of 500 francs 
 gold. 
 
 These bonds, the text of which is annexed (Annex No. 2) to the present 
 contract, will be signed in the name of the Imperial Chinese Government by the 
 Minister Plenipotentiary of China at Paris, under due instructions of his 
 Government. 
 
 They will be issued in blocks (i.e., conpures) of from 1 to 5 bonds, in 
 such proportions as the Russo-Chinese Bank shall indicate, and will be pre- 
 pared at the latter's expense. 
 
 They will bear 5% interest per annum on the nominal principal, payable in 
 gold. 
 
 Interest will run from the day of payment of instalments (i. e., dit jour des 
 versements), and will be payable September 1st and March 1st, each year. 
 
 Matured and paid coupons will be classified in numerical order by the 
 Russo-Chinese Bank and at its expense. 
 
 Article III. — The Loan will be redeemed in twenty years, counting from 
 the tenth year of issue, by the method of drawing lots, annually, at Paris in the 
 
 t See Note to this document, post, p. 367.
 
 358 CHINA TREATIES AND AGREEMENTS 
 
 offices of the Russo-Chinese Bank, in accordance with the table annexed to the 
 present Contract (Annex No. 3). 
 
 The drawings of lots will take place on the second Tuesday of January, 
 each year; the first drawing will take place on that date, beginning with the tenth 
 year after the issue of the Loan. 
 
 The numbers of the bonds drawn will be published in four newspapers at 
 the expense of the Russo-Chinese Bank. 
 
 Article IV. — The bonds drawn by lot will be paid in gold at their nominal 
 value, on the date of the coupon falling due next after the drawing. 
 
 Bonds presented for repayment must have attached all coupons not yet paid, 
 and the amount of missing coupons will be deducted from the principal to be 
 repaid. 
 
 Interest on bonds will cease to run from the day set for repayment. 
 
 Paid bonds will be classified by the Russo-Chinese Bank and at its 
 expense. 
 
 Article V. — The Imperial Chinese Government denies itself the right to 
 undertake, before September 1, 1911, an increase of the rate of amortization, 
 or a repayment of the whole amount of the Loan, or its conversion. After 
 that date, it will be free to repay the Loan at any time whatsoever, before the 
 due dates, and once the repayment is effected, the Contract will be declared 
 cancelled. 
 
 Article VI. — Coupons and amortized bonds will be payable in francs, in 
 Paris, in the offices of the Russo-Chinese Bank or of the institutions which that 
 Bank may designate. 
 
 Article VII. — The payment of interest and the repayment of bonds pro- 
 vided for in the present Loan are guaranteed by the general revenues of the 
 Imperial Chinese Government. 
 
 Furthermore, in virtue of the authorization already given by the Chinese 
 Government, and by agreement with it, the Imperial Chinese Railway Company 
 declares that it makes a special preferential assignment for the payment of 
 interest and principal of the present Loan, and consequently grants and assigns 
 in favor of the said obligations all the net revenue of the line from Chengtingfu 
 to Taiyuanfu, after the regular payment of all expenses of management and 
 operation, in full, as is elsewhere indicated in an Operating Agreement con- 
 cluded between the Imperial Chinese Railway Company and the Russo-Chinese 
 Bank, which Agreement is annexed hereto and forms an integral part of the 
 Contract. 
 
 This assignment is made exclusively and irrevocably until the complete 
 redemption of the bonds of the present Loan. 
 
 Article VIII. — After having noted the amount of the net receipts, the 
 Imperial Chinese Railway Company will direct the Russo-Chinese Bank to con- 
 vert into gold, to the best advantage of the Imperial Chinese Railway Company, 
 up to the amount necessary to assure the service of the Loan at the next semi- 
 annual due-date, the funds derived from the net revenues from operation. 
 
 Transfers to the branch of the Russo-Chinese Bank in Paris will continue 
 until the amount necessary for the entire service of the Loan at the following
 
 NUMBER 1902/8: OCTOBER 15, 1902 359 
 
 semi-annual due-date has been realized in gold, and in such manner that that 
 service is assured at least three months before that semi-annual due-date. 
 
 The depositaries will make use of these sums in the manner most advan- 
 tageous to the interests of the Imperial Chinese Railway Company. 
 
 The account into which these sums are paid will be debited, twenty days 
 before the semi-annual due-date, with the amount necessary for the service of 
 the Loan, interest, amortization, transfer charges and commissions, as contem- 
 plated by the present Contract. 
 
 Article IX. — The bank which has received the loan funds on deposit will 
 have the right, without further authorization, to draw upon the funds on deposit 
 for the amount of coupons payable during the period of construction. Only, it 
 will have to give notice thereof to the Director General of the Imperial Chinese 
 Railway Company. 
 
 Article X. — To insure the guarantee just given to the bonds of the present 
 Contract, the Imperial Chinese Railway Company grants these bonds a special 
 first mortgage (i. e., iDie garantie speciale de premier rang) on the railway 
 from Chengtingfu to Taiyuanfu, on its fixed and rolling stock and on its 
 receipts. 
 
 This special assignment is accepted in the name of the bondholders by the 
 Russo-Chinese Bank. In case of the non-fulfilment of the obligations assumed 
 by the Imperial Chinese Railways in the present Contract, the Russo-Chinese 
 Bank will have full power to take such action against the said property as may 
 result from this special assignment. 
 
 Article XI. — The foregoing stipulations do not constitute an obstacle to 
 the direct responsibility of the Imperial Chinese Government in relation to the 
 present Loan, as that responsibility is specified in Article VII. 
 
 The Imperial Chinese Government consequently undertakes to make up the 
 sum necessary for the service of the loan, in gold, in case the sums derived from 
 the net revenues of the line from Chengtingfu to Taiyuanfu and paid over by 
 the Imperial Chinese Railway Company, should not have produced, after con- 
 version into gold, at least three months before the next semi-annual due-date, 
 an amount sufficient to assure that service. 
 
 In that case, upon a demand addressed to it, the Imperial Chinese Govern- 
 ment must place at the disposal of the Russo-Chinese Bank, sixty days before 
 the next semi-annual due-date, in gold or in securities deemed sufficient to pro- 
 duce it in gold, the amount that shall have been indicated to it as being neces- 
 sary to make up that service. 
 
 Article XII. — From the sums derived from these deposits by the Imperial 
 Chinese Railway Company, or from the payments by the Imperial Chinese Gov- 
 ernment, the Russo-Chinese Bank will in due season draw for the amounts 
 necessary for the service of the Loan, in accordance with the needs as deter- 
 mined during the preceding half-year. 
 
 Article XIII. — The Imperial Chinese Government will pay to the branch 
 of the Russo-Chinese Bank in Paris, or to the firms or institutions charged with 
 the service of the Loan, a commission of %%, that is, 25 francs per 10,000 
 francs, on the amount of the coupons paid, and a commission of }i% on the
 
 360 CHINA TREATIES AND AGREEMENTS 
 
 amount of the bonds drawn by lot or amortized in consequence of anticipated 
 repayments. The amount of this allowance will be drawn each half-year from 
 the balance of available revenues from operation, and in case of insufficiency it 
 will be paid immediately by the Chinese Government. 
 
 Article XIV. — The Imperial Chinese Government binds itself to respect, 
 and cause to be respected, the privilege stipulated in favor of the bonds by 
 Article IX of the present convention, and to hold free and exempt from all 
 taxation ( i.e., a maintenir quittes, litres et affranchis de tout impot quelconque) 
 the bonds and coupons and all operations whatsoever connected with the service 
 of the Loan. 
 
 Article XV. — Coupons which have not been presented for payment within 
 five years after their due-date will be prescribed in favor of the Imperial Chinese 
 Government : the time-limit shall be thirty years in the case of amortized bonds. 
 
 Upon the death of any bondholder of the present Loan, the bonds shall be 
 transferred and shall belong to his heirs, in conformity with the inheritance laws 
 in force in the country of which the bondholder was a subject. 
 
 The payment of coupons and the repayment of bonds will be made to the 
 holders, in time of war as in time of peace, without distinction whether they be 
 subjects of friendly States or of Enemy States. 
 
 In case of loss, theft or destruction of bonds of the present Loan, the 
 Imperial Chinese Government authorizes the Russo-Chinese Bank to replace the 
 bonds at its own expense, after what is deemed sufficient proof shall have been 
 furnished it of the loss of the bonds and title-deeds of the claimants. 
 
 Article XVI. — The Imperial Chinese Government, through its representa- 
 tives in Europe, will at once take the necessary steps and furnish the documents 
 to obtain the admission of the present Loan to official quotation upon the 
 Bourses of St. Petersburg and Paris. 
 
 Article XVII. — Of the whole amount of the present Loan, amounting to 
 a nominal principal of 40,000,000 francs, the Russo-Chinese Bank buys outright 
 22,000,000 francs of nominal principal, or 44,000 bonds of 500 francs, delivery 
 to date from payment to the Branch of the Russo-Chinese Bank in Paris, at 
 the price of 90%, that is to say, for the total sum of 19,800,000 francs. 
 
 Article XVIII. — The proceeds of this purchase, in conformity with the 
 estimates of expense as calculated by the Russo-Chinese Bank, will, by agree- 
 ment with the Imperial Chinese Railway Company, be either deposited by the 
 said Bank with its Paris branch, or sent to its Shanghai branch, for the require- 
 ments of the Imperial Chinese Railway Company. 
 
 It is understood that the Russo-Chinese Bank will be bound to turn over 
 these amounts only upon the conditions and under the reservations indicated in 
 Article XX hereafter. 
 
 It is furthermore understood that a portion of the proceeds of the bonds — 
 at least one-fifth — will be deposited, after conversion into silver, in the Imperial 
 Bank of China. 
 
 This deposit will serve to meet the requirements of construction at such 
 time as a conversion of the funds might be too prejudicial to the interests of 
 the Company.
 
 NUMBER 1902/8: OCTOBER 15, 1902 361 
 
 This deposit will be made on the conditions and under the reservations pro- 
 vided for in Article XX. 
 
 The balance of the funds, after the completion of construction and after 
 the equipment of the line, will be paid over to the Chinese Government through 
 the Imperial Chinese Railway Company. 
 
 Article XIX. — After the signature of the present contract, the Imperial 
 Chinese Railway Company entrusts to the Russo-Chinese Bank the choosing of 
 an Engineer-in-Chief, experienced in construction work, whose duty it will be 
 to direct the construction of the line and to devise the projects of survey, plans, 
 route, and entire system of the line. This will all be subject to the approval of 
 the Director General of the Imperial Chinese Railway Company. 
 
 This Engineer will be appointed, upon recommendation by the Russo- 
 Chinese Bank, by the Director General of the Imperial Chinese Railway Com- 
 pany, to whom he will be directly subordinate. 
 
 The Director General of the Imperial Chinese Railway Company will fix 
 the amount of the salary of the Engineer-in-Chief, after coming to an agree- 
 ment with the Russo-Chinese Bank. 
 
 The Engineer-in-Chief will prepare a tabulated plan of organization of the 
 European staff required for the construction of the line, and will submit it for 
 the approval of the Director General of the Imperial Chinese Railways. This 
 staff will be engaged by the Russo-Chinese Bank, which will place it under the 
 orders of the Engineer-in-Chief. 
 
 As regards the Chinese staff, technical or other, the Director General of 
 the Imperial Chinese Railway Company reserves the right to choose it and to 
 turn it over to the Engineer-in-Chief. No Chinese employee may be engaged 
 without the consent of the Director General of the Imperial Chinese Railway 
 Company. 
 
 It is understood that Chinese subjects who have made special studies or 
 have acquired sufficient practical knowledge may be employed on the work on 
 the suggestion of the Director General of the Imperial Chinese Railway Company. 
 
 As regards the technical seryice. both the Chinese and the foreign staff 
 shall be under the authority of the Engineer-in-Chief ; but the Director General 
 of the Imperial Chinese Railway Company reserves the right to ask for the dis- 
 missal of any agent who may have been guilty of misconduct, insubordination, or 
 disrespect for the Chinese authorities, whatever his nationality. 
 
 The Director General of the Imperial Chinese Railway Company likewise 
 reserves the right to delegate upon the works a Special Representative with full 
 powers. The salary of this Representative, as also the running expenses of the 
 head office at Shanghai, will devolve upon the Shansi Railway project as in 
 the case of the Peking-Hankow Railway. 
 
 Orders for materials, tools and rolling-stock necessary for the construction 
 of the line and for its regular operation must be presented in advance through 
 the Enginer-in-Chief for the approval of the Director General of the Imperial 
 Chinese Railway Company. Orders and local tests of the work must be arranged 
 jointly by the Engineer-in-Chief and the Special Representative of the Director 
 General of the Imperial Chinese Railway Company.
 
 362 CHINA TREATIES AND AGREEMENTS 
 
 Statements of the amounts paid for the supply of materials and for 
 expenses of all kinds settled in Europe must be sent every three months to the 
 Imperial Chinese Railway Company. 
 
 Every month, the Engineer-in-Chief, in agreement with the Director General 
 of the Imperial Chinese Railway Company, will ask the Russo-Chinese Bank to 
 pay over, through its Peking branch, the amounts necessary for the general 
 expenses of the undertaking for the following month, into the hands of an 
 agent of the Director General of the Imperial Chinese Railway Company. This 
 agent may only surrender the funds against the joint signature of the Engineer- 
 in-Chief and the Representative of the Director General of the Imperial Chinese 
 Railway Company. 
 
 The Russo-Chinese Bank shall not therefore have to meet any of the 
 expenses in connection with construction or operation. 
 
 It will endeavor to complete the work on the line within a period of three 
 years. 
 
 Article XX. — On the various sections between Chengtingfu and Tai- 
 yuanfu, the Russo-Chinese Bank will pay over each month to the Imperial Chinese 
 Railway Company, from the available funds in its hands, the amounts necessary 
 to make the payments for the following month, in conformity with the estimates 
 drawn up by the Engineer-in-Chief. 
 
 The price paid for the above-mentioned bonds being destined exclusively 
 for the construction of the line from Chengtingfu to Taiyuanfu, the Russo- 
 Chinese Bank will have the right not to surrender these funds in the event 
 that any of the payments should not have been applied as provided for, as also 
 in the event that the Russo-Chinese Bank should not have been enabled to 
 continue the direction of the work of construction with which that Bank is 
 exclusively entrusted. 
 
 Article XXI. — The Chinese Government gives the Russo-Chinese Bank 
 an option to December 31st, 1905, to purchase the balance of the loan, or 
 18,000,000 francs, at the price of 90% of par value. 
 
 Said option may be availed of at one or several times, regardless of the 
 amortizations made. Delivery of the bonds taken on the options will be made 
 at the Russo-Chinese Bank in Paris, which will only surrender them under the 
 conditions and terms provided for in the above Article XX. 
 
 Article XXII. — If the Russo-Chinese Bank should avail itself of the 
 right given it to purchase all or a portion of the securities for which it has an 
 option granted it, it shall come to an agreement in each case with the Imperial 
 Chinese Railway Company to determine the sections (of line) to be built with 
 the new funds. 
 
 Article XXIII. — Surveys for the line, dating from the signing of the 
 present contract, are at the expense of the Imperial Chinese Railway Com- 
 pany. The whole line shall be divided into two principal sections : The 
 first from Chengtingfu to Ping-ting on the left bank of the Weishui 
 River, to the north of Ping-ting Chou, and the second from that point to 
 Taiyuanfu. 
 
 It is henceforth to be understood that the section to be built with the funds
 
 NUMBER 1902/8: OCTOBER 15, 1902 363 
 
 derived from the first option, will be that from Chengtingfu to Ping-ting and 
 that surveys for it will begin the first year. 
 
 Within two months from the date of ratification of the present contract, 
 the Russo-Chinese Bank will place at the disposal of the Director General of 
 the Imperial Chinese Railway Company a sum of 1,000,000 francs as an advance 
 on the proceeds of the loan. 
 
 This sum, it is understood, can only be applied to surveys and construction 
 work on the Shansi railway. The rate of interest on this advance is fixed at 
 6% annually, regardless of the price of issue. 
 
 The first option must be taken up within eleven months from the date of 
 signing the present contract. 
 
 The proceeds of said option shall be applied in the first instance to refund- 
 ing the above-mentioned advance. 
 
 Article XXIV. — The Russo-Chinese Bank reserves the right to make one 
 or more issues, by public subscription or otherwise, of the whole or a part of the 
 bonds bought outright, or forming a part of the option ; the expense of such 
 issues to be borne, of course, by the Russo-Chinese Bank. 
 
 Article XXV. — The entire quantity of materials and supplies necessary 
 for the construction and operation of the railway from Chengtingfu to Taiyuanfu 
 will be ordered by the Russo-Chinese Bank, which will execute these orders con- 
 scientiously and on the best terms. 
 
 It is agreed that, upon equal terms, such materials and supplies as can be 
 produced in China will not be ordered abroad. The mines and factories under 
 the control of His Excellency Sheng Hsiian-huai must, more particularly, profit 
 by this preference in case terms and price (including freight and insurance 
 charges) are such as though these materials and supplies had been ordered from 
 abroad. 
 
 Orders given will be freed from all customs and likin dues upon entry and 
 in transit through Chinese territory. 
 
 If proof of the granting of this privilege is not furnished to it before the 
 lapse of the month following the date on which the Russian Government has 
 advised the Russo-Chinese Bank of its having received the notifications pro- 
 vided for in Article XXVIII, the latter reserves the right not to consider itself 
 bound. 
 
 It reserves the same right, within the same time-limit, in the event of the 
 occurrence of extraordinary events, such as a war, or the falling below par of 
 the French rente. 
 
 If the Russo-Chinese Bank should, for its part, not fulfil the obligations 
 which it has assumed under the present Contract, this would be cancelled; the 
 Imperial Chinese Railway Company would be free to contract with whomsoever 
 else it desired, and forego the services of the Russo-Chinese Bank. 
 
 Article XXVI. — In case of conflict or difiference of views between the 
 Russo-Chinese Bank or its delegates, and the Imperial Chinese Government 
 or th£ Imperial Chinese Railway Company, these conflicts or differences of views 
 will be submitted to the judgment of a member of the Ministry for Foreign 
 Affairs of the Chinese Government, and of the Minister of Russia in Peking.
 
 354 CHINA TREATIES AND AGREEMENTS 
 
 In case of disagreement between the latter, the Minister for Foreign 
 Affairs of the Chinese Government and the Minister of Russia will designate 
 an arbitrator who shall make a final decision. 
 
 Article XXVII. — Should the Russo-Chinese Bank so request the Min- 
 istry for Foreign Affairs, the latter would be bound to give cognizance of the 
 title (i. e., notifier le titre) to the Minister of the foreign country that it 
 might designate to him as subscribing to the issue (of Bonds). 
 
 Article XXVIII. — The present Contract is drawn up in duplicate, one 
 copy for the Imperial Chinese Railway Company, and one for the Russo-Chinese 
 Bank. In case of doubt or of disagreement, the French text alone will be authori- 
 tative in interpreting the present Contract. 
 
 The present Contract must be submitted through the proper channel for 
 the Imperial sanction, and when that sanction has been obtained, the Minister 
 for Foreign Affairs of the Chinese Government must give notice thereof by 
 official dispatch to the Minister of Russia in Peking, and in case of necessity, 
 at the latter's request, to the representative in Peking of the foreign country 
 to whom the title is to be notified. 
 
 These formalities will be carried out within a period of one month after 
 the signature of the Contract. 
 
 Done at Shanghai, October 2/15, 1902, that is, the 14th day of the 9th 
 moon of the 28th year of the Reign of H. M. Kuang Hsii. 
 
 The Director General of the Imperial Chinese Railway Company, 
 
 (Sgd.) Sheng Hsuan-Huai. 
 
 The Manager of the Russo-Chinese Bank in China. 
 
 (Sgd.) C. R. Wehrung. 
 
 (//) — Operating Contract. 
 
 Between the undersigned : 
 
 (1) The Imperial Chinese Railway Company, represented by its Director 
 General, His Excellency Sheng Hsiian-huai, duly authorized by the Imperial 
 Government ; 
 
 (2) The Russo-Chinese Bank, represented by Mr. C. R. Wehrung, one of 
 its Directors; 
 
 It has been agreed as follows : 
 
 Article I. — The Imperial Chinese Railway Company, in agreement with 
 the Chinese Government, entrusts the Russo-Chinese Bank, which will appoint 
 delegates for the purpose, with the directing, managing and operating of the 
 line from Chengtingfu to Taiyuanfu, for which the Imperial Chinese Railway 
 Company holds the concession under the Edict of His Majesty the Emperor 
 of China dated October 13, 1902, that is, the 14th day of the 9th moon of the 
 28th year of the Reign of His Majesty Kuang Hsii, a copy of which is annexed 
 to the Loan Contract. 
 
 Article II. — The Russo-Chinese Bank will undertake the operation of the 
 line upon the completion of the several sections, after their definite acceptance 
 by the Director General of the Imperial Chinese Railway Company, each section
 
 NUMBER 1902/8: OCTOBER 15, 1902 365 
 
 having to be completely equipped and supplied in advance with all material neces- 
 sary for its operation, as well as with supplies, tools, and rolling-stock; the 
 Russo-Chinese Bank or the delegates it may have appointed in accordance with 
 the provisions of Article I will organize the service, will engage the staff — over 
 which it will have an absolute right of discharge or dismissal, and whose salaries 
 it will fix according to a tabulated plan of organization previously submitted to 
 the Director General of the Imperial Chinese Railway Company, — will order 
 whatever is necessary for the operation and upkeep or for the repair of the 
 line, will fix the tariffs within the terms of the contracts for the concession, will 
 receive the revenues of all kinds, and will make the payments for the expenses 
 of operation and the management of the Imperial Chinese Railway Company in 
 connection with the Shansi Railway. 
 
 The foregoing steps to be taken in respect to the operation of the line will 
 be submitted by the Russo-Chinese Bank or by the engineers appointed by it to 
 the Imperial Chinese Railway Company, as a matter of consultation (i. e., 
 a titre consultatif). 
 
 The Director General of the Imperial Chinese Railway Company will have 
 the most extensive control over revenues and expenditures. He will appoint a 
 Representative, a cashier, an accountant, and an interpreter, who will be 
 attached to the European staff in order to exercise the effective control con- 
 templated above. The Representative and his assistants, mentioned above, will 
 be paid by the Shansi Railway enterprise. 
 
 This Representative will countersign all documents of account. 
 
 As stipulated in the Loan Contract, the Director General of the Imperial 
 Chinese Railway Company reserves the right of requiring the dismissal of any 
 agent, of whatsoever nationality, who may have been guilty of misconduct, 
 insubordination, or disrespect towards the Chinese authorities. 
 
 The Chinese staff will be chosen by the Representative of the Director 
 General of the Imperial Chinese Railway Company, who will place them under 
 the exclusive orders of the Engineer-in-Chief. 
 
 The acquisition of all new material, and new work of improvement or up- 
 keep of the line or of the stations, which may be necessary after the opening of 
 each section to traffic, will be entirely at the expense of the Shansi Railway enter- 
 prise. In so far as possible, the orders required for the upkeep and repair of 
 the line will be given to the factories and mines of China. It is understood that 
 the mines and factories under the control of His Excellency Sheng Hsiian-huai 
 will enjoy a right of preference over foreign mines and factories in the purchase 
 of all the above-mentioned materials, upon terms and prices (including freight 
 and insurance charges) such as if the materials had been purchased abroad. 
 
 Article III. — In case of war or of revolution in China, the transportation 
 of troops, munitions and provisions for the Chinese Army will have precedence 
 over all commercial traffic. This transportation will be charged for at a reduc- 
 tion of 50% from the tariff ; it will be conducted in accordance with the orders 
 of the Director General of the Imperial Chinese Railway Company ; and it will 
 moreover be forbidden to transport anything which might be of a character to 
 injure the Chinese Government.
 
 366 CHINA TREATIES AND AGREEMENTS 
 
 Special service for the local authorities and for the members of the Imperial 
 Chinese Government will be arranged by the operating management, upon an 
 understanding with the Representative of the Director General of the Imperial 
 Chinese Railway Company. The same will be the case in regard to free tickets, 
 which must be countersigned by the Director General of the Imperial Chinese 
 Railway Company. 
 
 Article IV. — From the operating revenues remaining available after the 
 payment of all expenses, the Russo-Chinese Bank will retain such amounts as 
 are necessary to assure each half-year, at least three months before due-date, 
 the service of the loan of 40,000,000 francs contracted by the Imperial Chinese 
 Government. 
 
 This retention will be made so long as the said loan shall not have been 
 wholly repaid. 
 
 The proceeds of this retention will be paid over each month into the hands 
 of the Russo-Chinese Bank or into the hands of the firm that the latter may 
 have designated. The latter will convert into gold, to the best advantage of the 
 Imperial Chinese Railway Company, the amounts paid over to it, in order to 
 use them for the service of the Loan. 
 
 Whenever the service in gold of the Loan may have been assured through 
 the sums thus paid over, the Russo-Chinese Bank will set aside 10% of the 
 surplus, which will be devoted to the establishment of a reserve fund for extraor- 
 dinary rebuilding or repairs to assure operation. 
 
 It will thereafter pay over to the Imperial Chinese Railway Company such 
 balance as remains available out of the operating revenues. 
 
 In the event of the repayment contemplated in the following article, the 
 Russo-Chinese Bank or its delegates will hand over to the Representative of the 
 Director General of the Imperial Chinese Railway Company the line, its fixed 
 material and rolling-stock, and all its appurtenances, in good state of upkeep 
 and in normal operation. 
 
 Article V. — The term of the present Operating Contract is fixed at thirty 
 years, reckoning from the date of the signature of the Contract. 
 
 This term, however, would be prolonged as of course (i. e., de plein droit) 
 in the event that the loan of 40,000,000 francs should not at that time have 
 been completely amortized : and that prolongation would continue so long as 
 complete amortization had not been efifected. 
 
 But if the repayment of the loan were to be efifected before the due period, 
 the present Operating Contract would be cancelled as from the date of the full 
 repayment of the Loan. 
 
 Article VI. — During the whole period of the operation of the line by the 
 Russo-Chinese Bank, the Imperial Chinese Railway Company grants to it a 
 participation of 20% in the net profits of the railway from Chengtingfu to 
 Taiyuanfu, as determined by mutual agreement after each accounting period, 
 allowing, however, for the amounts necessary to meet the service of interest and 
 amortization of the Loan. 
 
 Article VII. — In case of conflict or difference of views between the Impe- 
 rial Chinese Railway Company, or the Imperial Chinese Government, and the
 
 NUMBER 1902/8: OCTOBER 15, 1902: NOTE 367 
 
 Russo-Chinese Bank, these conflicts or differences of views will be adjusted as 
 provided in Article XXVI of the Loan Contract. 
 
 Article VIII. — If the operating revenues should not be sufficient to cover 
 the costs, the Imperial Chinese Railway Company would have to furnish the 
 funds necessary to insure the regular operating service under normal conditions. 
 
 The funds so furnished will be considered as an advance, repayable to the 
 Imperial Chinese Railway Company so soon as the revenues come to exceed the 
 expenses. 
 
 Article IX. — All materials and all supplies that the Russo-Chinese Bank 
 may need for the operation and for the upkeep and repair of the line will, when 
 they come from abroad, be exempted from all customs or likin dues. 
 
 Article X. — The present Contract is drawn up in duplicate, one copy for 
 the Imperial Chinese Railway Company and one for the Russo-Chinese Bank. 
 
 In case of doubt or difference, the French text alone will be authoritative 
 for the interpretation of the Contract. 
 
 The present Contract will be submitted through the proper channel for the 
 Imperial sanction, and when that sanction has been obtained, the Minister for 
 Foreign Affairs of the Chinese Government must give notice thereof by official 
 despatch to the Minister of Russia in Peking, and in case of necessity, at the 
 latter's request, to the representative in Peking of the foreign country to whom 
 the title is to be notified. 
 
 Done at Shanghai, October 2/15, 1902, that is, the 14th day of the 9th moon 
 of the 28th year of the Reign of His Majesty Kuang Hsii. 
 
 The Director General of the Imperial Chinese Railway Company, 
 
 (Sgd.) H. E. Sheng Kung Pag. 
 
 The Manager of the Russo-Chinese Bank in China, 
 
 (Sgd.) Ch. R. Wehrung. 
 
 Note. 
 
 In Rockhill, p. 309, appears the following translation of a " Draft of Agreement 
 between Fang, Superintendent of the Liu-lin-Tai-yuan Railway Co. (understood to be 
 acting under authority from the Governor of Shansi), and Pokotilow, Director of the 
 Russo-Chinese Bank," dated 1898: 
 
 Preliminary Loan Agreement for Chengtingfu-Taiyuanfu Railway. — 1898. 
 
 " The line is to run from Chengting to the coal mines on the Weishui river to the 
 north of Pingting, and thence to Taiyuan. The cost — including 'official profits' (kuan-li) 
 — is estimated at Tls. 6,800,000. As it is impossible to raise this amount in China, Fang 
 agrees to accept a temporary advance from the Russo-Chinese Bank on the following 
 terms : — 
 
 " 1. — A Company will be formed to construct the railway, and the Company will 
 borrow Tls. 6,800,000 necessary from the Bank. Interest 6 per cent, from the date of 
 advance. 
 
 " 2. — The exact amount required will be determined after the completion of the surveys 
 and estimates. 
 
 " Until the railway is opened to traffic the interest will accrue, and be added to the 
 principal of the loan. Should the traffic receipts during the two years following the open- 
 ing be insufficient to pay the interest the deficiency will also be added to the loan capitaL
 
 368 CHINA TREATIES AND AGREEMENTS 
 
 At the close of these two years, all the moneys owing to the bank by the Company on 
 principal and interest must be reckoned up and interest paid on the full amount at 6 per 
 cent, per annum. All surplus profits, excluding 'official profits' {kuan-li) made within 
 five years from the opening of the railway to be deposited in the Bank, the amount to go 
 to the redemption of the loan at the end of the five years. The Bank to pay 4 per cent, 
 on the amounts so deposited. 
 
 " Dating from the sixth year after the opening of the line the Company agree to pay 
 off the interest and principal due to the Batik by quarterly instalments, extending over 
 25 years : such instalments to be paid in gold at current rates. 
 
 " 3. — The Company may at will redeem the loan before the limit of the time specified. 
 
 " The Company may issue share certificates to the amount of the loan, which are to be 
 deposited with the Bank as security. Within the 25 years' limit certificates to the amounts 
 redeemed from year to year will be handed over to the Company by the Bank. If, before 
 the loan is redeemed, the Chinese public consider these shares a good investment, the Com- 
 pany may purchase them from the Bank and issue them at a premium of 20 per cent. 
 
 " Should the Company redeem the debt due to the Bank in either of the two ways 
 stated above, the Bank will have no further concern with the railway. 
 
 "4. — The Bank will decide in consultation with the Company all questions of route, 
 gauge, position of stations, amount of rolling stock, etc. All the construction and works 
 will be executed under the supervision of the Company. 
 
 " The Bank engages to use local materials and labour as far as possible, and in any 
 case to spend the greater part of the loan on the spot. As little material as possible is to 
 be procured from abroad, but whatever is thus obtained must come from Russian or French 
 territory. All such materials are to be purchased by the Bank at the most reasonable 
 prices, and questions as to the reasonableness of the prices are to be settled by reference 
 by the Company to the Chinese Ministers in Russia and France. 
 
 " 5. — During the whole 30 years and/or while the loan is unredeemed, the high authori- 
 ties of Shansi shall, at the request of the Company, interdict the construction of another 
 railway or other mechanical means of transport between Liu-lin and Taiyuan-fu, as such 
 would be detrimental to the interests of this railway. 
 
 " 6. — The Company will see to the acquisition of the land required for the railway 
 in accordance with the provisions of Chinese law. The regulations for the purchase of the 
 land will be drawn up by the Company and approved by the Governor of Shansi who will 
 be requested to instruct the local authorities to surrender or let whatever Government 
 land is required for the railway line. As to private ground, graves, bridges, rivers, and 
 roads, the regulations of the Tientsin railways will be followed, and reasonable compensa- 
 tion will be awarded. The local officials are to lend every assistance and to check disorder. 
 In other matters the established piecedents ruling in the railways already opened to traffic 
 in Chihli are to be followed. 
 
 " The price of the ground will be arranged by the Company with the owner, and the 
 money handed over in the presence of a representative at the Bank specially appointed for 
 that purpose. This will prevent irregularities. 
 
 " The Bank will prepare detailed plans of the railway and send them to the Company, 
 and the Coinpany are given six months from the date of receipt of the plans within which 
 to secure the land required for the track. 
 
 ''7. — The Governor of Shansi will be moved to exempt from likin charges all railway 
 material. Import and transit dues paid to the Imperial Maritime Customs are not included 
 in this exemption. 
 
 " 8. — The administration of the railway will rest with the Company. Mr. Fang will 
 procure the assistance he needs, and from the date of the approval of this agreement Tls. 
 10,000 a year will be advanced to him to cover the salaries of himself and assistants. 
 
 " Before the opening of the railway and traffic these salaries will be advanced by the 
 Bank and the amounts will be added to the loan accounts. After the opening they will 
 be paid out of receipts by the Company. If there is a surplus after the payment of all 
 expenses out of the receipts, it will rest with the Company to decide whether the remunera- 
 tion above mentioned shall be increased. The Foreign Agent of the Bank will be present 
 at all meetings of the Managing Officers, and will exercise supervision over all matters of 
 accounts, machinery, etc. 
 
 " 9.— The Foreign Agent will be specially appointed by the Bank after the completion 
 of the railway to inspect the accounts, receipts, and expenditure. The accounts will be 
 kept after foreign methods. He will also inspect the permanent way, machinery, stations, 
 etc., and see that they are kept in good working order, and free from dilapidations. He 
 will have foreign assistants, but their number will be kept as low as possible. The salaries 
 of the Agent and his staff, which are not to exceed 100,000 francs or say Tls 30.000 a year 
 will be paid by the Company. With these exceptions the personnel will be Chinese. As 
 a temporary arrangement, however, China not possessing, capable machinists, foreign 
 artificers will be engaged by the Bank to work the machinery, but as soon as Chinese are 
 available for this purpose the foreigners will be sent home. It is fully expected that 
 Chinese will be employed as machinists before many years are over, and to attain this end
 
 NUMBER 1902/8: OCTOBER 15, 1902: NOTE 369 
 
 the Superintendent is at liberty to establish engineering and mining schools near at hand, 
 and to engage foreign instructors to teach 10 to 20 selected Chinese youths of capacity 
 who may also be sent abroad to complete their knowledge. 
 
 " The Board will assist the Company as far as possible in its efforts to dispense with 
 foreign assistance and to secure capable Chinese machinists without delay. 
 
 " 10. — After the completion of the railway the yearly surplus, if any, left after pay- 
 ment of working expenses and 'official profits,' is to be dealt with as follows: — 
 
 " 5-lOths to the Company. Should this 5-lOths amount to 30,000 taels or over, the 
 Superintendent's salary will be paid out of it; if the 5-lOths do not amount to Tls. 30,000 
 the salary will form part of the working expenses. 
 
 "2-lOths to the State. 
 
 " 1-lOth to the Trade Bureau to be used for public purposes, and 
 
 "2-lOths to the Bank — this payment to cease at the end of 30 years from the opening 
 of the line. Should the Company be able to redeem the loan before this limit of time as 
 provided for under Article 3, the Bank's 2-lOths will cease with such redemption. 
 
 " 11. — The Bank will first undertake the construction of the first section to the coal 
 mines of Ping-ting; this to be completed within 3 years from the acquisition of the ground 
 required, according to the plans. Ihis section finished, the Bank engages to begin work on 
 the 2nd section from the coal mines to Taiyuan Fu within two years. If it fails to do 
 so the Company is free to discharge the Bank from the contract and hand the work over 
 to others to undertake. The Bank, in this case, is to hand over the surveys, estimates, 
 and other documents relating to the 2nd section to the Company without payment therefor 
 and without objection to the Company's action. 
 
 " 12. — In case of default in the payment of principal and interest, the administration 
 of the railway will pass temporarily into the hands of the Bank, but the Company will con- 
 tinue its supervision. The Superintendent, etc., will continue to meet and consult as before 
 and the salaries will continue to be advanced in the manner stated in Article 8. The 
 Bank will not under these circumstances be considered as entering into possession of the 
 railway ; it will simply administer on behalf of the Company until the loan and interest 
 are paid in full, when the administration will be returned to the Company. 
 
 " 13. — Superintendent Fang will move the local authorities to permit the Company, 
 through the Trade Bureau, to select a few coal and iron mines in the country adjoining 
 the railways ; places granted to other persons being excluded from the selection. 
 
 ■' Within a year from the approval of this agreement the Bank will indicate a few 
 coal and iron mines which it will be able to work as soon as the necessary authorisation 
 is received from the Governor of Shansi through the Trade Bureau. But the number of 
 mines thus selected must not exceed four or five. 
 
 " Superintendent Fang will also be authorised to choose a convenient site for glass 
 works, the funds for the establishment of which will be provided by the Bank. 
 
 " The financial terms relating to the mines and glass works will follow the same lines 
 as those relating to the railway; 2-lOths of the surplus after payment of working expenses 
 and ' official profits ' will go to the Bank in payment of principal and interest. In case of 
 default the management of all the mines and the glassworks will revert to the Bank who 
 will retain it until the loans and interest are redeemed. 
 
 " 14. — This loan being a commercial arrangement made between Russian and Chinese 
 merchants, it is understood that the Governments of China and Russia are in no way 
 concerned. 
 
 "15. — This instrument is only preliminary. When it has been approved by the Gov- 
 ernor of Shansi and authorised by the Emperor, it will as it stands become definitive." 
 
 In the Memorandum on Railway and IMining Concessions secured by France and 
 French Companies in China, printed in Doc. Dipl., Chine, Jiiin-Octobre, 1900, p. 23, appears 
 the following statement in regard to the concession for the Chengting-Taiyuan Railway : 
 
 "The concession for this line was provided for by a contract between the Bureau of 
 Commerce of the province of Shan-hsi and the Russo-Chinese Bank, said contract being 
 approved by the Chinese Government May 21, 1898. 
 
 " The length of the line is 246 kilometers from Tai-yuan-Fu to Cheng-ting-Fu where 
 it will join the railway from Peking to Hankow. The line will open the very rich coal 
 field of Ping-ting, and its exploitation should be remunerative. The concession contemplates 
 the extension of the Tai-yuan-Fu line to the southwest. The system as above will measure 
 from 500 to 600 kilometers and will be worth about 60 millions. 
 
 " The French group in the Russo-Chinese Bank is entrusted with working this con- 
 cession."
 
 370 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1902/9. 
 
 PORTUGAL AND CHINA. 
 
 Supplementary Commercial Convention* — October 15, 1902. 
 
 His Most Faithful Majesty the King of Portugal and of the Algarves, and 
 His Majesty the Emperor of China, desiring to facilitate the commercial rela- 
 tions between Portugal and China, have decided to introduce certain modifica- 
 tions into the Treaty of friendship and commerce which at present governs the 
 relations between the two countries: for this purpose they have named their 
 plenipotentiaries, to wit : 
 
 His Most Faithful Majesty the King of Portugal and of the Algarves, Jose 
 d'Azevedo Castello Branco, his Envoy Extraordinary and Minister Plenipotenti- 
 ary on Special Mission near His Majesty the Emperor of China, of the Council 
 of His Majesty, Peer of the Realm, Grand Cross of the Military Order of Notre 
 Dame de la Conception de Villa-Vigosa, Commander of the Order of St. -Jacques 
 de I'Epee of Scientific, Artistic and Literary Merit, Grand Cross of the Order of 
 Military Merit in Spain, and Grand Bibliotecaire ; 
 
 His Majesty the Emperor of China, His Highness Ch'ing, Prince of the First 
 Rank, President of the Ministry for Foreign AflFairs, Envoy Extraordinary and 
 Minister Plenipotentiary, etc., etc.; 
 
 Who, having exchanged their full powers, which they have found in good 
 and due form, have come to an agreement upon the following articles : 
 
 Article L — The Treaty of friendship and commerce between Portugal and 
 China, dated December 1, 1887,t continues to be in force with the alterations 
 and additions resulting from the present Treaty. 
 
 Article H. — Portugal accepts the increase of the import tariffs stipulated 
 by Article VI of the Peking Protocol of September 7, 1901 ; ij: and from the time 
 of the ratification of the present Treaty, and so long as the Treaty of friendship 
 and commerce between Portugal and China, now in force, shall not have been 
 revised, Portugal will enjoy the treatment of the most favored nation, and in no 
 case will there be required from Portuguese subjects duties more or less high 
 than those which may be required from the subjects of any nation what- 
 soever. 
 
 This article annuls Article XII of the Treaty of 1887. 
 
 Article HI. — In order to make effectitve the cooperation of Portugal for 
 the control and the levying of duties upon opium imported into Macao and ex- 
 ported from Macao to Chinese ports, there will be, in a location chosen by agree- 
 ment between the Government of the Colony of Macao and the Administration of 
 the Chinese Imperial Maritime Customs, a branch office of those Customs. 
 
 ♦Translation from the French text as printed in Customs, Vol. II, p. 303. See Note 
 to this document, post, p. 371. 
 t See Hertslct, p. 423. 
 t No. 1901/3, ante.
 
 NUMBER 1902/9: OCTOBER 15, 1902: NOTE 371 
 
 Article IV. — The branch office will control the entry and the shipment of 
 opium at Macao, and will collect all the duties due to China. 
 
 Article V. — This branch office will accord to all vessels sailing from Macao 
 the same privileges, and will apply to them the same regulations, as if this 
 branch office were a Maritime Customs office of a treaty port. 
 
 Article VI. — Regulations, established by agreement between the two High 
 Contracting Parties, will govern the working of this branch office of the Chinese 
 Imperial Maritime Customs, in such manner as to safeguard the legitimate 
 interests of the two countries. 
 
 Article VII. — In order to avoid discussions which might result, this Treaty 
 will be written in three languages — Portuguese, Chinese and French — and will 
 be signed in six copies, two in each language. 
 
 All these versions have exactly the same sense ; but if by chance doubts 
 should arise as to the interpretation of the Portuguese and Chinese versions, the 
 French text will serve for the decision of these doubts. 
 
 Article VIII. — The present Treaty will be ratified by His Most Faithful 
 Majesty the King of Portugal and of the Algarves, and by His Majesty the 
 Emperor of China. § Until it shall have been ratified, the Treaty of 1887 and 
 the annexed Conventions will continue in force, and the subjects of the two 
 countries will enjoy the rights and privileges that have been accorded them by 
 the said Treaty. 
 
 Article IX. — After the exchange of ratifications, which will take place as 
 soon as possible, the present Treaty will be published in order that the officials 
 and subjects of the two countries may take note of its stipulations and observe 
 them. In faith of which, the plenipotentiaries have signed the present Treaty 
 and have affixed their seals thereto. 
 
 Done at Peking, October 15, 1902. 
 
 (Sgd.) J. d'Azevedo Castello Branco. 
 (L.S.) 
 
 Note. 
 
 In connection with this convention see, in special reference to Articles 3-6, the Addi- 
 tional Convention regarding the establishment of a Customs House at Macao, January 21, 
 1903 (No. 1903/1, post) : see also the Sino-Portuguese Treaty of commerce, signed Novem- 
 ber 11, 1904, but never ratified, of which the text is as follows: 
 
 (Unratified) Treaty of Commerce between China and Portugal. — November ii, 1904. 
 
 " Article I. — The Treaty of Amity and Commerce between China and Portugal, dated 
 the 1st December, 1887 (17th day, 10th moon, 13th year of Kuang-Hsii), together with the 
 Special Opium Convention attached thereto, continues in force, except in so far as modi- 
 fied by the present Treaty. 
 
 " Article II. — Portugal accepts the increase in the import duties stipulated for in 
 Article VI of the Peking Protocol of 7th September 1901. Portugal will enjoy the privi- 
 leges of the most favoured nation, and in no case shall Portuguese subjects pay higher or 
 lower duties than those paid by the subjects of any other foreign nation. 
 
 § Ratified by China, October 17, 1902.
 
 372 CHINA TREATIES AND AGREEMENTS 
 
 " Article XIII of the Treaty of 1st December 1887 is therefore rendered null and void. 
 
 "Article 111. — The Government of His Most Faithful Majesty agrees to continue as 
 heretofore to cooperate with the Government of his Imperial Chinese IMajesty in the col- 
 lection of the duty and likiii on opium exported from Macao to China, and also to cooperate 
 in the repression of smuggling in accordance with the Treaty and Special Opium Convention 
 of 1st December 1887. 
 
 " In order to render this cooperation effective, it is clearly stipulated that all opium 
 imported into Macao shall on arrival be registered at the special Portuguese Government 
 Bureau provided for this purpose, and the Portuguese Government will take the necessary 
 steps in order to have all this opium stored under its exclusive control in one Depot, from 
 which it will be removed as required by the demands of trade. 
 
 " The quantity of opium required for consumption in the territory of Macao will be 
 fixed annually by the Government of Macao in agreement with the Commissioner of the 
 Imperial Maritime Customs referred to in Article 11 of the above-mentioned Convention, 
 and under no pretext will removal from the Portuguese Government Depot be permitted 
 of any quantity of opium for local consumption in excess of that fixed by the said Agree- 
 ment. 
 
 " Necessary measures will be taken to prevent opium removed from the Depot for re- 
 export to any port other than a port in China being sent fraudulently into Chinese territory. 
 
 " The rules for the carrying out of this Article shall be arranged by the two High Con- 
 tracting Parties. 
 
 " The Portuguese Government will enact without delay a law providing penalties for 
 infraction of the regulations agreed upon between the two High Contracting Parties. 
 
 " Article IV. — Such steps as are necessary for the repression of smuggling in the ter- 
 ritory and waters of Macao shall be taken by the local Portuguese Government in concert 
 with the Commissioner of the Kung Pei Kuan Customs, and similar steps in the Chinese 
 territory and waters near iMacao shall be taken by the said Commissioner of Customs in 
 concert with the Government of Macao. This cooperation is intended to render such 
 steps effective on all points in respect of which cooperation is needed and to avoid at the 
 same time any injury to the sovereign rights of either of the High Contracting Parties. 
 
 " Special delegates from the local Government of Macao and the Imperial Maritime Cus- 
 toms shall proceed to fix the respective spheres of preventive measures, and shall devise prac- 
 tical means for the repression of smuggling. 
 
 " Article V. — With a view to the development of steam traffic between Macao and 
 neighbouring ports in the Kwangtung province, the High Contracting Parties have agreed 
 as follows : — 
 
 " 1. Portuguese steamers desirous of conveying goods or passengers from Macao to any 
 of the Ports of Call and Passenger Stages on the West River enumerated in the Special 
 Article of the Burmah Convention of 1897 and in Article X of the British Treaty of Com- 
 merce of 1902 shall be permitted to do so, provided they comply with the special regulations 
 to be framed for this purpose by the two High Contracting Parties. 
 
 "2. Steamers specially registered for traffic under the Inland Waters Steam Navigation 
 Rules shall be permitted to ply between jMacao and ports in the department of Kwang- 
 chow-fu, other than those mentioned in Section 1, provided they report to the Kung Pei 
 Kuan Customs for examination of cargo and payment of duties in accordance with the 
 special regulations to be framed for this purpose by the two High Contracting Parties. 
 
 " 3. Such vessels may engage in all lawful trade, including the towing of junks and the 
 conveyance of passengers and cargo, subject to the regulations for the time being in force. 
 
 " 4. The privileges hereby granted are granted on the express understanding that special 
 regulations shall be framed defining in detail the conditions under which such traffic may be 
 carried on. Until the said regulations have been agreed upon and published, this Article 
 shall not become operative, and, subsequently, shall remain so only so long as the said regula- 
 tions are complied with. 
 
 " 5. The Portuguese Government will enact without delay a law providing penalties for 
 infraction of the regulations agreed upon between the two High Contracting Parties. 
 
 " Article VI. — Portugal having the right of most favoured nation treatment, it is 
 clearly stipulated that any advantages China may think fit to grant to the products of any 
 other nation shall be extended to similar goods of Portuguese origin on exactly the same 
 conditions. 
 
 " It is also clearly understood that Portuguese wines of all kinds, proved by means of 
 Portuguese certificates of origin, vises by Portuguese Consuls, to have been imported directly 
 or indirectly from Portugal, shall when their alcoholic strength exceeds 14° pay the duty 
 leviable according to the annexed Tariff on wines exceeding 14° of alcoholic strength. 
 Wines passed through the Chinese Customs under the designation * Port Wine ' shall not 
 be entitled to the benefit of this Article unless accompanied by a certificate of origin as above. 
 
 " Conversely, Chinese subjects shall enjoy in respect of their imports into and exports 
 from Portugal all privileges and immunities granted to the subjects of the most favoured 
 nation. 
 
 " Article VII. — Portuguese subjects may frequent, reside at, and carry on trade, in-
 
 NUMBER 1902/9: OCTOBER 15, 1902: XOTE 373 
 
 dustries, and manufactures, and pursue any other lawful avocation in all the ports and 
 localities in China wiiich have already been or may hereafter be opened to foreign resi- 
 dence and trade ; and wherever in any such ports or localities a special area has been or 
 may hereafter be set apart for the use and occupation of foreigners, Portuguese subjects 
 may therein lease land, erect buildings, and in all respects enjoy the same privileges and 
 immunities as are granted to subjects of the most favoured nalion. 
 
 "Article Vlll. — Whereas the Chinese Government has expressed a desire that the pro- 
 visions of the Portuguese Civil Law, which grants Portuguese nationality to sons of aliens 
 born in Portuguese territory, should be modified in the case of Chinese born in the territory 
 of Macao; Portugal agrees to take this matter into careful consideration as soon as possible, 
 and to regulate, by a special law if necessary, the conditions under which Portuguese 
 nationality shall be granted in future to Chinese born in Portuguese territory. 
 
 " The conditions in question shall be so framed as to prevent Chinese to whom Portu- 
 guese nationality has been granted — 
 
 " 1. From improperly arrogating to themselves privileges which are reserved for Chinese 
 subjects, such as the right of residence for purposes of trade in the interior or at ports not 
 open to foreign trade; and 
 
 " 2. From entering, while residing in a Treaty port, into agreements with Chinese while 
 themselves posing as Chinese subjects, and afterwards repudiating their responsibilities by 
 claiming Portuguese nationality and taking advantage of such Portuguese laws as are con- 
 trary to the obligations involved in the said agreements. 
 
 "Article IX. — Whereas China, with the object of reforming its fiscal system, pro- 
 poses to levy a surtax in addition to the Tariff duties on all goods passing through the 
 Custom Houses, whether maritime or inland and frontier, in order to make good the loss 
 incurred by the complete abolition of likin, the Portuguese Government agrees that foreign 
 goods imported into China by Portuguese subjects shall on entry pay an import surtax 
 equivalent to one and a half times the duty fixed by the Import Tariff as now revised, and 
 that Chinese produce exported abroad by Portuguese subjects shall pay export duties, 
 inclusive of the Tariff export duty, not exceeding seven and a half per cent ad valorem, 
 provided always that such import surtax and export duties have been accepted by all the 
 Powers having Treaties with China. With regard to the production tax, consumption tax, 
 and excise, as well as the duties on native opium and salt, leviable by China, Portugal 
 further agrees to accept the same arrangeinent as shall be agreed upon between all the 
 Treaty Powers and China. It is, however, understood that the commerce, rights, and privi- 
 leges of Portugal shall not, in consequence of this undertaking, be placed in any way at a 
 disadvantage as compared with the commerce, rights, and privileges of any other Power, 
 
 " Article X. — Drawback Certificates for the return of duties shall be issued by the 
 Imperial Maritime Customs to Portuguese subjects within twenty-one days from the date 
 of presentation to the Customs of the papers entitling the applicant to receive such Draw- 
 back Certificates. 
 
 " These Certificates will be accepted at their face value by the Customs authorities at 
 the port of issue in payment of duties of all kinds, tonnage dues excepted; or shall, in the 
 case of drawbacks for duty paid on foreign goods re-exported abroad within three years 
 from the date of importation, be redeemable in full in ready money by the Imperial Mari- 
 time Customs at the port of issue, at the option of the holders thereof. 
 
 " But if, in connection with any application for a Drawback Certificate, the Customs 
 authorities discover an attempt on the part of a Portuguese subject to defraud the revenue, 
 he shall be liable to a fine not exceeding five times the amount of the duty whereof he 
 attempted to defraud the Customs, or to a confiscation of the goods. In case the goods 
 have been removed from Chinese territory, then the Consul shall inflict on the guilty 
 party a suitable fine to be paid to the Chinese Government. 
 
 "Article XI. — China agrees to herself establish a system of uniform national coinage 
 and provide for a uniform national currency which shall be freely used as legal tender 
 in payment of all duties, taxes, and other obligations by Portuguese subjects as well as by 
 Chinese subjects in the Chinese Empire. It is understood, however, that all Customs duties 
 shall continue to be calculated and paid on the basis of the Haikwan tael. 
 
 "Article XII. — The Government of His ^lost Faithful Majesty agrees to the pro- 
 hibition by the Chinese Government of the importation into China of morphia and of 
 instruments for its injection, on condition, however, that the Chinese Government will allow 
 the importation of morphia and of instruments for its injection for medical purposes 
 by Portuguese doctors, chemists, and druggists, on payment of the prescribed duty and 
 under special permit which will only be granted to an intending importer upon his signing 
 at the Portuguese Consulate a suitable bond undertaking not to sell morphia except in 
 small quantities and on receipt of a requisition signed by a duly qualified foreign medical 
 practitioner. 
 
 " If fraud in connection with such importation be discovered by the Customs authorities, 
 the morphia and instruments for its injection will be seized and confiscated, and the im- 
 porter will be denied the right to import these articles thereafter. 
 
 " Article XIII. — The Chinese Government, recognizing that it is advantageous for the
 
 374 CHINA TREATIES AND AGREEMENTS 
 
 country to develop its mineral resources and that it is desirable to attract foreign as well as 
 Chinese capital to embark in mining enterprise, agrees to revise its existing mining regula- 
 tions in such manner, by the selection of those rules in force in other nations which seem 
 applicable to conditions in China, that the revision, while promoting the interests of Chinese 
 subjects and in no way prejudicing the sovereign rights of China, will offer no impediment 
 to the employment of foreign capital nor place foreign capitalists at a greater disadvantage 
 than they would be under generally accepted foreign regulations, and will permit Portuguese 
 subjects to carry on in Chinese territory mining operations and other necessary business 
 relating thereto, provided they comply with the new regulations and conditions which will 
 be imposed by China on its subjects and foreigners alike, relating to the opening of mines, 
 the renting of mineral land, and the payment of royalty, and provided they apply for per- 
 mits, the provisions of which in regard to necessary business relating to such operations shall 
 be observed. The residence of Portuguese subjects in connection with such mining opera- 
 tions shall be subject to such regulations as shall be agreed upon between Portugal and 
 China. 
 
 "Any mining concession granted after the publication of such new rules shall be subject 
 to their provisions. 
 
 " Article XIV. — It being only right that the shareholders of any Joint Stock Company 
 or the partners in any commercial undertaking should all be on a footing of equality as 
 regards division of profits and payment of obligations, according to the partnership agree- 
 ment or memorandum and articles of association, the Chinese Government agrees that 
 Chinese subjects joining with Portuguese subjects in the organization of a Portuguese 
 Joint Stock Company or commercial undertaking, legally constituted, shall be liable to the 
 fulfilment of the obligations imposed by the said agreement or memorandum and articles 
 of association, and that Chinese Courts will enforce fulfilment of such obligations in 
 accordance with Chinese commercial law, if a suit to that effect be entered, provided always 
 that their liability shall not be other or greater than that of Portuguese shareholders or 
 partners in the same company or partnership. 
 
 " Similarly, Portuguese subjects who invest their capital in Chinese enterprises shall be 
 bound to fulfil the obligations imposed by the partnership agreement or memorandum and 
 articles of association, and the Portuguese Courts will enforce fulfilment of such obliga- 
 tions in accordance with Portuguese commercial law, if a suit to that effect be entered, 
 provided always that the liability of such Portuguese subjects shall be the same as that of 
 the Chinese subjects engaged in the same undertaking. 
 
 " But as existing Treaty stipulations do not permit foreign merchants to reside in the 
 interior of China for purposes of trade, such Joint Stock Companies and commercial under- 
 takings may not be established in the interior by Portuguese and Chinese subjects conjointly. 
 
 " Article XV. — As Portugal affords protection to trade marks used by subjects of 
 any other nationality provided a like protection is reciprocated for trade marks used by 
 Portuguese subjects, China, in order to obtain this protection for its subjects in Portuguese 
 territory, agrees to grant protection to Portuguese trade marks against unlawful use, 
 falsification, or imitation by Chinese subjects. To this end the Chinese Government will 
 enact the necessary laws and regulations, and will establish Registration Offices at which 
 foreign trade marks may be registered on payment of reasonable fees. 
 
 '■ Further, the Chinese Government agrees that, as soon as a Patent Office has been estab- 
 lished and special laws with regard to inventions have been adopted, it will, after payment 
 of the prescribed fees, issue certificates, valid for a fixed term of years, to Portuguese in- 
 ventors extending to their inventions the same protection as shall be given to Chinese patents 
 in Portugal, provided that such inventions do not infringe on previous inventions by subjects 
 of China. 
 
 " Article XVI. — The Government of China having expressed a strong desire to re- 
 form its judicial system and to bring- it into accord with that of Western nations, Portugal 
 agrees to give every assistance to such reform, and will also be prepared to relinquish 
 extra-territorial rights when satisfied that the state of the Chinese laws, the arrangements 
 for their administration, and other considerations warrant it in so doing. 
 
 " Article XVII. — The missionary question in China demands in the opinion of the 
 Chinese Government careful consideration, so as to avert in the future the troubles which 
 have occurred in the past. Portugal, as a nation especially interested in the protection of its 
 Catholic missions in Chinese territory, agrees to join in a Commission to investigate this 
 question, and, if possible, to devise means for securng permanent peace between converts 
 and non-converts, should such a commission be formed by China and the Treaty Powers 
 interested. 
 
 " No person, whether Portuguese subject or Chinese convert, who, according to the tenets 
 of Christianity, peaceably teaches or practises the principles of that religion, which aims 
 at teaching men to do good, shall be persecuted or harassed on account of his faith. But 
 converts and non-converts, being alike subjects of China, shall conform to her laws, and 
 shall pay due respect to those in authority, living together in peace and amity ; and the 
 fact of his being a convert shall protect no one from the consequences of any offence he 
 may have committed before or may commit after his admission into the church or exempt
 
 NUMBER 1902/10: OCTOBER 22, 1902 375 
 
 him from paying legal taxes levied on Chinese subjects generally, except taxes and con- 
 tributions levied for the support of religious customs and practices contrary to his faith. 
 Missionaries shall not interfere with the exercise by the native authorities of their juris- 
 diction over Chinese subjects, nor shall the native authorities make any distinction between 
 converts and non-converts, but shall administer the law without partiality, so that both 
 classes may live together in peace. 
 
 " Portuguese missions shall be permitted to rent and lease in perpetuity, as the property 
 of the mission, buildings or lands in all parts of the Empire foi mission purposes and, 
 after the title-deeds have been found in order and duly stamped by the local authorities, to 
 erect such suitable buildings as may be required for carrying on their good work. 
 
 " Article XVIII. — The present Treaty shall remain in force for a period of ten years 
 beginning with the date of the exchange of ratifications and until a revision is effected as 
 hereinafter provided. 
 
 " It is further agreed that either of the High Contracting Parties may demand revision 
 of the Tariff and the Articles of this Treaty six months before the end of ten years from 
 the date of the exchange of ratifications thereof. If no revision is demanded before the 
 end of the first term of ten years, then these Articles in their present form shall remain in 
 full force for a further term of ten years reckoned from the end of the first term, and so on 
 for successive periods of ten years. 
 
 " Article XIX. — In order to prevent in the future any discussion, this Treaty is written 
 in Portuguese, Chinese, and English, and signed in six copies, two in each language. 
 
 " All these versions have the same sense and meaning, but if there should happen to be 
 any divergence in the interpretation of the Portuguese and Chinese versions, the English 
 text will be made use of to resolve the doubts that may have arisen. 
 
 "Article XX. — The present treaty shall be ratified by His Most Faithful Majesty the 
 King of Portugal and Algarves and His Imperial Majesty the Emperor of China. 
 
 " The exchange of the ratifications shall be made at Peking within the shortest possible 
 time, and the Treaty will be printed and published in order that the functionaries and 
 subjects of the respective countries may have full knowledge of its stipulations and may 
 fulfil them. 
 
 " In faith whereof the respective Plenipotentiaries have signed the present Treaty and 
 have affixed their seals thereto. 
 
 " (Sgd.) Jose d'Azevedo Castello Branco. 
 
 " (Sgd.) Lu Hai-huan. 
 
 " (Sgd.) Sheng Hsuan-huai." 
 
 NUMBER 1902/10. 
 
 DENMARK (Great Northern Telegraph Company, Ltd.) AND CHINA. 
 Agreement concerning the Taku-Kiakhta Telegraph Line.'* — October 22, 1902. 
 
 Inasmuch as the Administration has constructed at great expense a land- 
 line between Peking and Mai-mai-chen, and inasmuch as the purpose of joining 
 the cable between Shanghai and Taku with the Administration's land-line between 
 Taku and Mai-mai-chen is to provide an efficient route for telegraphic corre- 
 spondence exchanged with Russia and Europe and the countries beyond, the 
 following stipulations have been drawn up between the Administration and the 
 Company, and signed, on the date mentioned below, by the Administration, repre- 
 sented by the Manager and the Assistant Manager of its Head Office at Shang- 
 hai, Mr. Chu-pau-fay and Mr. Chow-wen-peng. jointly, and by the Great North- 
 ern Telegraph Company, Ltd. (i.e., la Grande Compagnie des Telegraphes du 
 
 * Translation from the French text as printed in Recueil, p. 637. See Note to this 
 document, post, p. 379.
 
 376 CHINA TREATIES AND AGREEMENTS 
 
 Nord, societe anonyme), of Copenhagen, represented by its Manager in China, 
 Mr. I. Berner, the two parties having full powers to that effect. 
 
 Article I. — The Administration will place at the exclusive disposal of the 
 Company, free of all payment, a special wire of its line between Taku and Mai- 
 mai-chen or Kiakhta, with intermediate stations at Tientsin and Peking. 
 
 If, according to the Administration's and the Company's judgment, the 
 amount of traffic should require it, the Administration is bound to place at the 
 disposal of the Company, on the conditions provided in the present Arrangement 
 for the above-mentioned wire, one more wire of the same line. 
 
 The wires should be of galvanized iron, and in conformity with the con- 
 ditions laid down in the service regulations of the International Telegraph Con- 
 vention. 
 
 The Company will if necessary have the right to establish at Udde, or an- 
 other station intermediate between Peking and Kiakhta, an automatic trans- 
 former (i.e., translation automatique), and to install its overseer there. 
 
 The Administration undertakes to maintain in good order, and in case 
 of interruption to repair without delay, the wire placed at the disposal of the 
 Company. 
 
 If the repairs should not be effected owing to any negligence or default 
 of the x\dministration, the Company has the right to make representations to 
 the Administration. 
 
 If these representations should not result favorably within a reasonable 
 time, the Company would be entitled to effect the necessary repairs itself 
 at the cost of the Administration. 
 
 In case of interruption of the wire placed at the disposal of the Company, 
 while the Administration's wires on the same poles remain in good order, the 
 Administration will, if possible, allow the Company to make use of its 
 wires until the wire placed at the disposal of the Company shall have been 
 repaired. 
 
 On the other hand, in case of interruption of the Administration's wires, 
 while the wire placed at the disposal of the Company remains in good order, the 
 latter undertakes to transmit by its wire all such messages as may be handed to it 
 by the Administration. 
 
 The Company shall have no direct dealings with the public ; but if any 
 other company or foreign administration should receive that privilege, it would 
 also be granted to the Great Northern Telegraph Company. 
 
 Article II. — The Administration is obliged to furnish to the Company, free 
 of charge, at its stations in Tientsin, Peking, Mai-mai-chen (or Kiakhta) and 
 Taku (if the line is also operated from that point), two rooms devoted to the 
 exclusive use of the Company, separate from those containing the Administra- 
 tion's instruments, and will pay all the expenses in connection with the working 
 of the wire placed at the disposal of the Company by the Administration. The 
 Company, on its part, will pay the European staff employed at the aforenamed 
 stations. 
 
 The Chinese employed for the working of the wire placed at the disposal 
 of the Company will be engaged and paid by the Company, and placed under
 
 NUiMBER 1902/10: OCTOBER 22, 1902 3/7 
 
 the control of the agents of the Company at the respective stations ; the Adminis- 
 tration will reimburse the Company for these expenses. 
 
 The Administration will reimburse the Company for its expenses, under 
 Articles I and II, at the end of each European calendar month. 
 
 Article III. — The Administration will hand over to the Company at the 
 aforenamed stations all international telegrams destined to be transmitted by 
 way of Kiakhta or by the Taku-Shanghai cable. 
 
 The Administration will also hand over to the Company, in all cities in 
 China (including Hongkong) where there may be cables, all international tele- 
 grams destined to be transmitted by the cables and by way of Kiakhta. 
 
 The- Company will have the right to send by the land-lines as service tele- 
 grams, free of charge, messages in connection with its business. 
 
 Article IV. — The wire placed at the disposal of the Company shall never- 
 theless be considered as belonging to the Administration, and this stipulation 
 cannot be abrogated by any other Convention which may be entered into by 
 the Administration with any cable company or administration whatsoever. 
 
 Article V. — The Company has the right to install its controllers at the 
 Chinese control stations along the wire placed at its disposal. The controllers 
 of no other Administration or Company are to be admitted. 
 
 Article VI. — Should it be desired by the Russian Telegraph Administra- 
 tion, the working of the wire placed at the disposal of the Company may be 
 connected with that of the Russian telegraphic system directly, — that is, without 
 the intermediation of 'the Chinese Administration in the transmission of tele- 
 grams by the above-named wire to the Russian system and vice versa. In that 
 case, the accounts resulting from the exchange of all telegrams transmitted over 
 the above-mentioned wire by way of Kiakhta will be drawn up and settled 
 directly between the Russian Telegraph Administration and the Company ; but 
 the Chinese Administration will have the right to install its controllers, of Chi- 
 nese or Danish nationality, at the control offices of the Company along the above- 
 mentioned wire within Chinese territory. The controllers of no other adminis- 
 tration or company are to be admitted. 
 
 Article VII. — The total revenue of the Administration derived from termi- 
 nal exchange, over the wire placed at the disposal of the Company, of all tele- 
 grams between China and Russia, is to be shared in accordance with the Joint 
 Purse Arrangement of May 1/13, 1897.t 
 
 The total revenue of the Administration derived from the terminal exchange, 
 over the same wire, of all telegrams between China (excepting Hongkong) and 
 Europe (excepting Russia) and countries beyond Europe is to be shared in 
 accordance with the Joint Purse Agreement of June 29/July 11, 1896.$ 
 
 The total revenue of the Administration derived from the exchange of termi- 
 nal telegrams from Russia transiting China, whatever be the route followed (in- 
 cluding the wire above mentioned), and the total revenue of the Administration 
 derived from the exchange of all other telegraphic traffic (including telegrams 
 to and from Hongkong) transiting China, whatever be the route followed (includ- 
 
 tNo. 1897/3, ante. 
 t No. 1896/3, ante.
 
 378 CHINA TREATIES AND AGREEMENTS 
 
 ing the wire above mentioned), is to be shared in accordance with the two Ar- 
 rangements cited above. 
 
 Article VIII. — The new Hne from Shanghai to Chefoo, Taku, Peking and 
 Kiakhta, being intended to serve as an alternative route to that of Vladivostok, 
 the total charges will so far as possible be equalized by those two routes. 
 
 Article IX. — The present Arrangement will remain in force until Decem- 
 ber 31, 1925, but the Administration has the right to extend it to December 31st, 
 1930, in which case the Administration should give notice, at least two years in 
 advance, to the Minister of Russia and Denmark at Peking, and to the Company. 
 It is understood that if the Arrangement between the Administration and the 
 Eastern Extension, Australasia and China Telegraph Company, Ltd., dated 
 October 22nd, 1902, and annexed hereto, should be extended, the present Ar- 
 rangement would likewise, with the consent of the Government of Russia, be 
 extended to the same date. 
 
 Article X. — In all that is not contemplated by the present Arrangement, 
 the provisions remain in force of : ( 1 ) the International Telegraph Convention 
 and the Service Regulations pertaining thereto, and (2) the Russo-Chinese Tele- 
 graph Convention concluded August 13/25, 1892, and the Supplementary Declara- 
 tions § pertaining thereto. 
 
 Article XL — Notwithstanding the provisions of Articles III and V, the 
 Administration may place at the disposal of the Eastern Extension, Australasia 
 and China Telegraph Company, Ltd., — but of no other company or administra- 
 tion — a special wire of its line between Peking and Taku for the transmission of 
 international telegrams directed by the senders for transmission by the tele- 
 graph system of that Company, and admit its controllers as provided in the 
 above-mentioned Arrangement concluded between that Company and the 
 Administration. 
 
 Article XII. — The present Arrangement is to be ratified by the Wai-wu Pu 
 and by the Minister of Russia and of Denmark at Peking. 
 
 In faith of which the undersigned, duly authorized to that effect, have signed 
 the present Arrangement. 
 
 Done at Shanghai in the Chinese, French and English languages. Triplicate 
 copies, duly compared and found to agree, have been signed in each of these three 
 languages, the 22nd day of the month of October, 1902, corresponding to the 
 21st day of the 9th moon of the 28th year of the Reign of Kuang Hsii. 
 For the Imperial Telegraph Administration of China : 
 The Manager of the Head Office in Shanghai, 
 
 (Sgd.) Chu Pau-fay, 
 
 The Assistant Manager of the Head Office in Shanghai, 
 
 (Sgd.) Chow Wen-peng. 
 
 For the Great Northern Telegraph Company, Ltd. : 
 Its Manager in China, 
 
 (Sgd.) I. Berner. 
 
 Seen and approved : 
 
 The Minister of Russia and Denmark, 
 (L.S.) Paul Lessar. 
 
 § For the text of Supplementary Declarations, sec No. 1902/11, post.
 
 NUMBER 1902/10: OCTOBER 22, 1902: NOTE 379 
 
 Note. 
 
 The text of an Agreement between the Eastern Extension Telegraph Company and 
 the Chinese Telegraph Administration, of the same date, concerning the Taku-Peking Line, is 
 given in Rccueil, p. 646, as follows : 
 
 Agreement between Eastern Extension Telegraph Company and Chinese Telegraph 
 Administration regarding Taku-Peking Line. — October 22, 1902. 
 
 " Whereas, by an Agreement dated the 26 October 1900 and made between the Ad- 
 ministration, of the one part, and the Great Northern Telegraph Company Limited, of 
 Copenhagen, (hereinafter called 'The Great Northern Company'), of the other part, the 
 Administration agreed to tend to the Great Northern Company a wire on the Adminis- 
 tration's line between Ta-ku and Mai-ma-tchin or Kiachta, and to hand over to the Great 
 Northern Company at the stations at Tien-tsin and Peking and Mai-ma-tchin or Kiachta 
 all international telegrams intended for transmission via Kiachta or via the Ta-ku — Shang- 
 hai cable ; 
 
 " and whereas, the Administration and the Great Northern Company subsequently 
 agreed to make certain modifications in the said Agreement, it has been replaced by 
 another Agreement (hereinafter referred to as Agreement III) made between the said 
 parties on the twenty-second October 1902, which will be submitted for confirmation by 
 the Wai-wu-pu simultaneously with this Agreement ; 
 
 " and whereas it has been arranged for the Administration to place at the disposal 
 of the Eastern Extension Australasia and China Telegraph Company, Limited, a wire 
 on their line between Peking and Ta-ku for transmission of traffic to and from Peking 
 and Tien-tsin, directed via the Eastern Extension Australasia and China Telegraph Com- 
 pany's system, together with office accommodation, on the same terms and conditions 
 as the wire and office accommodation granted to the Great Northern Company, 
 the following stipulations have been agreed on between the Administration and the Com- 
 pany, and, under date below given, signed by the Administration, represented by the 
 manager and the assistant manager of its. head office at Shang-hai, jointly, viz: Mr. 
 Chu-pau-fay and Mr. Chow-wen-peng, and by the Eastern Extension Australasia and China 
 Telegraph Company, Limited, represented by Mr. William Bullard both parties duly fur- 
 nished with full and special powers for this purpose. 
 
 "Article L — The Administration will, as from the confirmation of this Agreement, 
 place at the Company's disposal, free of all payment, a special wire of the Administra- 
 tion's landline between Ta-ku and Peking with an intermediate station at Tien-tsin. If, 
 according to the Company's and the Administration's judgment the amount of traffic should 
 render it necessary, the Administration undertakes to place one more wire at the disposal 
 of the Company, on the said line, on the same conditions as stipulated for the above 
 mentioned wire by the present Agreement. These wires should be of galvanized iron, 
 fulfilling the conditions laid down in the service regulations of the International Telegraph 
 Convention. 
 
 " The Administration undertakes to maintan in good working order, and to repair 
 immediately in case of interruption, the wire or wires placed at the disposal of the Company 
 by the Administration. 
 
 "If the repairs should not be effected owing to any negligence or default of the 
 Administration, the Company will make representations to the Administration. 
 
 "If these should prove of no avail within a reasonable time, the Company shall be en- 
 titled to effect the repairs themselves ; and charge the Administration the actual cost. 
 
 " Should the wire or wires placed at the disposal of the Company by the Administra- 
 tion be interrupted whilst the Administration's wires on the same poles are in working 
 order, the Administration will, if possible, give the Company the use of such wires until 
 the wire or wires placed at the disposal of the Company by the Administration shall have 
 been repaired. 
 
 " Should the Administration's wires be interrupted whilst the wire or wires placed at 
 the disposal of the Company by the Administration be in working order, the Company will 
 transmit, by this wire or wires all traffic handed to them by the Administration. 
 
 " The Company shall have no direct dealings with the public. If however such privi- 
 lege be granted to any other foreign company or administration, it shall also be granted 
 to the Eastern Extension Australasia and China Telegraph Company, Limited. 
 
 " Article II. — The Administration undertakes to furnish the Company with two rooms 
 for office accommodation in each of their stations at Tien-tsin and Peking, which rooms 
 shall be for the exclusive use of the Company, and separate from the Administration's 
 instrument room, and to pay all expenses in connection with the working of the wire or 
 wires placed at the disposal of the Company by the Administration. 
 
 " The Company shall appoint and pay the European staff employed at the aforenamed 
 stations. 
 
 " The Chinese clerks employed for the working of the wire or wires placed at the
 
 380 CHINA TREATIES AND AGREEMENTS 
 
 disposal of the Company by the Administration shall be selected and paid by the Com- 
 pany and shall be under the complete control of the Company's controllers at the re- 
 spective stations, the Administration reimbursing the Company their expenses in this con- 
 nection. 
 
 " All payments due to the Company under this Article I, shall be made by the Adminis- 
 tration at the end of each European calendar month. 
 
 " Article III. — The Administration will hand to the Company at the aforenamed 
 stations all British international telegrams which may be directed by the sender via 
 Eastern Extension, as well as other international telegrams so directed. 
 
 " The Administration shall likewise hand over to the Company in all towns in China 
 where there may be cables, (Hong-kong included) all international telegrams which are 
 directed by the sender to be transmitted by the Company's system. 
 
 " The Company shall have the right to send as service telegrams free of charge over the 
 line messages in connection with the Company's business. 
 
 " Article IV. — The wire or wires placed at the disposal of the Company by the Ad- 
 ministration shall be considered as the Administration's wire or wires, and this stipu- 
 lation cannot be abrogated by any other Convention which may be entered into by the 
 Administration with any submarine cable company or administration whatsoever. 
 
 " Article V. — The Administration's total revenue of all traffic (except Russian termi- 
 nal traffic but including traffic to and from Hong-kong) transiting China, whichever be 
 the route followed, including the above mentioned wire or wires, shall be carried to the 
 joint purse account of the Agreement dated eleventh of July eighteen hundred and ninety 
 six, and shall be divided accordingly. 
 
 " Article VI. — The Agreement shall continue in force until thirty first of December 
 nineteen' hundred and twenty five, the Administration having the option of continuing 
 the same unaltered until thirty first of December nineteen hundred and thirty by giv- 
 ing the British ^linister at Peking at least two years previous notice, provided always 
 that if the Agreement made between the Administration and the Great Northern Tele- 
 graph Company, Limited, of Copenhagen, dated the twenty-second October, 1902, and 
 to which this Agreement is annexed, be continued this Agreement is likewise to be con- 
 tinued to the same date. 
 
 " Article VII. — 'The present Agreement shall be confirmed at Peking by the British 
 and Chinese Governments within six months of this date of signature. 
 
 " In witness whereof the undersigned, duly authorized to this efi'ect, have signed the 
 present Agreement, 
 
 " Done at Shang-hai in the Chinese language and in the English language. Three 
 expeditions duly compared and found to be in agreement have been signed in both lan- 
 guages on the twenty second day of the month of October nineten hundred and two, 
 corresponding with the twenty first day of the ninth moon of the twenty eighth year of 
 the reign of Kwang-hsu. 
 
 " For the Imperial Chinese Telegraph Administration — the manager of its head office 
 at Shang-hai : 
 
 " (Signed) Chu-pau-fay. 
 
 " The assistant manager of its head office at Shang-hai : 
 
 " (Signed) Chow-wen-peng. 
 
 " For the Eastern Extension Australasia and China Telegraph Company, Limited : 
 
 " (Signed) William Bullard." 
 
 In connection with these agreements, see also that of October 26, 1900 (No. 1900/6, ante).
 
 NUMBER 1902/11: NOVEMBER 27, 1902 381 
 
 NUMBER 1902/11. 
 
 RUSSIA AND CHINA. 
 
 Supplementary Declaration in regard to connections betzveen the Russian and 
 Chinese Telegraph Lines* — November 27, 1902. 
 
 The Imperial Government of Russia and the Imperial Government of China, 
 having found it advisable to prolong the term of the Convention concluded 
 August 13/25, 1896 [sic: should be 1892? — Editor], and of the Supplementary 
 Declarations of July 18/30, 1896, and August 25/September 6, 1897, in regard 
 to connections between the Russian and Chinese telegraph lines,f have agreed 
 upon the following. 
 
 I. — The Convention and the two Declarations cited above remain in force 
 during the whole period of the Arrangement concluded between the Imperial 
 Telegraph xA.dministration of China and the Great Northern Telegraph Company 
 (i.e., Grande Compagnie Anonyme des Telegraphes du Nord) of Copenhagen,^ 
 that is, until December 21, 1925, or until December 31, 1930, in case that Ar- 
 rangement is prolonged to that date. 
 
 II. — The rates established by the Declaration of August 25/September 6, 
 1897, remain for the present without change, but will subsequently be modified 
 by an understanding between the two Contracting Parties § in conformity with 
 the provisions which will be drawn up by the International Conference which is 
 to meet at London in 1903. 
 
 III. — The terminal charges levied in Russia and in China for telegrams 
 exchanged exclusively between the two countries will be simultaneously reduced, 
 and the exact amount of this reduction will be determined by the two Contract- 
 ing Parties after the London Conference of 1903. 
 
 IV. — Should it be desired by the Russian Telegraph Administration, the 
 service placed at the disposal of the Great Danish Company may be connected 
 with that of the Russian telegraph system directly, that is, without the intermedia- 
 tion of the Chinese Telegraph Administration in the transmission of telegrams 
 over the above-mentioned wire to the Russian Administration, and vice versa. 
 In that case, the accounts incident to the exchange of all telegrams transmitted 
 over the above-mentioned wire by way of Kiakhta will be drawn up and settled 
 directly between the Russian Administration and the Company ; but the Chinese 
 Administration will have the right to install its controllers at the control offices 
 of the Company along the above-mentioned wire in Chinese territory. The 
 controllers of no other Administration or Company will be allowed there. It 
 
 * Translation from French text as printed in Recueil, p. 654. 
 
 The text of the Convention of August 13/25, 1892, to which this declaration is a sup- 
 plement, is not available. 
 
 t See Note 1 to this document, post, p. 382. 
 
 t See Article 9 of the arrangement of October 9/22, 1902, between the Chinese Imperial 
 Telegraph Administration and the Great Northern Telegraph Company (No. 1902/10, ante). 
 
 § See Note 2 to this document, post, p. 383.
 
 382 CHINA TREATIES AND AGREEMENTS 
 
 is clearly understood that the provisions of the Convention of August 13/25, 
 1892, and of the two Complementary Declarations of July 18/30, 1896, and August 
 25/September 6, 1897, not modified by the present Declaration, remain in full 
 force. 
 
 Done at Peking the 14/27 of November, 1902, and according to the Chinese 
 calendar, the 28th day of the 10th moon of the 28th year of Kuang Hsii. 
 (L. S.) (Sgd.) Paul Lessar. 
 
 Note 1. 
 
 The Supplementary Declaration of July 18/30, 1896, reads (in translation from the 
 French text printed in Rccneil, p. 181) as follows: 
 
 Supplementary Declaration regarding Russo-Chinese Telegraph Connections. — 
 
 July 30, 1896. 
 
 " In view of the fact that the provisions contained in Article IX of the Convention 
 concluded August 13/25, 1892, in regard to the connecting of the Russian and Chinese land 
 telegraph lines, stipulate for the settlement of accounts and the levying of charges at a 
 rate for silver which does not correspond with the present actual value of silver, and for 
 the purpose of avoiding the inconveniences thereby caused to the two contracting Govern- 
 ments in their accounts with the Telegraph Administrations of other Governments for 
 international correspondence exchanged among them, the Imperial Government of Russia 
 and the Imperial Government of China have agreed to replace the provision cited, in Article 
 IX of the Convention referred to above, by the following provision : 
 
 "'The levying of the rates, fixed by Article VII of the present Convention in gold 
 francs, as also the mutual accounting, will be done in silver money in accordance with the 
 actual rate of exchange of silver. 
 
 " ' To that end, the Russian and the Chinese Telegraph Administrations will determine 
 annually, at the end of the year as reckoned by the European calendar, the average value 
 of the Mexican dollar in francs, — which value will be used as the rate of exchange during 
 the following year for the levy of charges at all stations of the Telegraph Administration 
 in China and at Hongkong, as also for the settlement of accounts, which is to be done in 
 Hong-ping taels, reckoning 100 Mexican dollars as equivalent to 70 Hong-ping taels.' 
 
 " The present provision will come into force as from July 20/ August 1, 1896. 
 
 " The two contracting Governments are nevertheless agreed that, until the coming into 
 force of the rates which may be fixed by the International Conference of 1896, meeting at 
 Budapest, the rate for the levy of charges, as well as for the settlement of accounts, will 
 be fixed in the following manner : francs 8.50 are considered as equivalent to 2.75 Mexican 
 dollars. 
 
 " Peking, July 18/30, 1896, or according to the Chinese calendar, the 20th day of the 
 6th moon of the 22nd year of the Reign of Kuang Hsii. 
 
 " (L. S.) (Sgd.) _ Count C.'\ssini. 
 
 " (L. S. of the Tsung-li Yamen.) " 
 
 The following is a translation of the French text (as printed in Rccucil, p. 264) of 
 the Supplementary Declaration of August 25/September 6, 1897 : 
 
 Supplementary Declaration regarding Russo-Chinese Telegraph Connections. — Sep- 
 tember 6, 1897. 
 
 " The Imperial Government of Russia and the Imperial Government of China, having 
 found it advisable to modify certain articles of the Convention, concluded August 13/25, 
 1892, for the connecting of the Russian and Chinese land telegraph lines, have agreed upon 
 the following: 
 
 " I. — The provision of §3 of Article III of the Convention will be replaced by the 
 following provision: 
 
 " ' The junction at Kiakhta must be made whenever the Chinese Telegraph Administra- 
 tion has completed the construction of the line between Peking and Kiakhta, but in any 
 case before the end of the year 1898. The work of construction upon this line must be 
 begun during the summer of the year 1897, and must be finished, between Peking and 
 Kalgan, before the end of the same year.' 
 
 " II.— The first part of Article VI of the Convention will be cancelled as being super- 
 fluous, in view of the fact that the amended version of Article VII embraces and defines
 
 NUMBER 1902/11: XOVEAIBER 11, 1902: XOTES 383 
 
 all charges payable to each of the Contracting Parties for the transmission of all telegrams 
 over their lines up to the frontiers. 
 
 " III. — The first part of Article VII of the Convention, as far as the words, " The 
 general charge for telegrams exchanged between Europe (excepting Russia)," etc., will be 
 replaced by the following provision : 
 
 " 'Russia : 
 
 "'A — Terminal charges. — (l)For telegrams exchanged between any part of China, and 
 Hongkong, on the one hand, and Asiatic Russia east of the meridian of Verkhneudinsk, on 
 the other hand, — francs 0.70 per word; (2) for telegrams exchanged between any part of 
 China, and Hongkong, on the one hand, and Asiatic Russia west of the meridian of 
 Verkhneudinsk, on the other hand, — francs 1.00 per word; (3) for telegrams exchanged 
 between any part of China, and Hongkong, on the one hand, and European Russia (includ- 
 ing the Caucasus), on the other hand, — francs 1.50 per word. 
 
 '" B — Transit charges — (t) For all telegrams, francs 2.25 per word. 
 
 "'China: 
 
 "'A — Terminal charges. — (1) For telegrams exchanged between any part of China, and 
 Hongkong, on the one hand, and any part of Russia (including the Caucasus and Asiatic 
 Russia), on the other hand, francs 1.50; (2) for telegrams exchanged between any part 
 of China, and Hongkong, on the one hand, and Europe (excepting Russia) and countries 
 situated beyond, on the other hand, — francs 4.75; (3) for all other telegrams, francs 1.50. 
 
 "'B — Transit charges. — (1) For telegrams exchanged between Europe (excepting 
 Russia) and countries beyond Europe, on the one hand, and all other countries, on the 
 other hand, francs 4.75; (2) for all other telegrams, including those exchanged with 
 European Russia, the Caucasus and Asiatic Russia, — francs 2.00. 
 
 "'Of the francs 4.75 mentioned above (under headings A and B), China must pay 
 to the several countries of Europe rates in the proportion determined by the International 
 Telegraphic Regulations in force, and by the tariffs. 
 
 " ' The charges established by the present article will come into force from June 
 19/July 1, 1897, and can be modified only by agreement between the two Contracting Parties. 
 The two Governments are agreed, however, that the Chinese charge of francs 1.50 men- 
 tioned above, under heading A, 1 and 3, will come into force only from a date to be fixed 
 hereafter by joint agreement among the two Governments and the Great Northern Tele- 
 graph (Tompany of Copenhagen ; until that date, the Chinese charge for the telegrams above 
 mentioned will remain at francs 2.00.' 
 
 " IV. — The provision of §2 of Article VIII of the Convention will be replaced by the 
 following provision : 
 
 "'The settlement of accounts will take place at the expiration of each month, and the 
 balance will be paid at Shanghai during the twenty-one days following the month to which 
 the balance belongs. The payment must be made in IMexican dollars at the rate fixed for 
 ♦ he year according to the provisions of the Supplementary Declaration of July 18/30, 1896.' 
 
 " It is clearly understood that the provisions of the Convention of August 13/25, 1892, 
 and of the Supplementary Declaration of July 18/30, 1896, not modified by the present 
 Declaration, remain in full force. 
 
 " Peking, August 25/September 6, and according to the Chinese calendar, the 10th day 
 of the 8th moon of the 23rd year of the Reign of Kuang Hsu. 
 
 " (L. 5".) (Sgd.) A. Pavlow, 
 
 Charge d'Affaires of Russia. 
 " (L. 5". of the Tsung-li Yamen.) " 
 
 Note 2. 
 
 The understanding thus contemplated was embodied in the Supplernentary Declaration 
 of January 2/15th, 1905, the translation of which (from the French text as printed in 
 Recueil, 724) is as follows : — 
 
 Supplementary Declaration regarding Russo-Chinese Telegraph Connections. — 
 
 January 15, 1905. 
 
 " Inasmuch as the provisions of Articles II and III of the Supplementary Declaration 
 of November 14/27, 1902, stipulate that the rates established by the Declaration of August 
 25/September 6, 1897, are to be modified upon an understanding between the two Contract- 
 ing Parties in conformity with the provisions which will be drawn up by the London Inter- 
 national Conference of 1903, the Imperial Government of China and the Imperial Govern- 
 ment of Russia have agreed upon the following: 
 
 "I.— Article VII of the Telegraph Convention of August 13/25, 1892, and Article III
 
 384 CHINA TREATIES AND AGREEMENTS 
 
 of the Supplementary Declaration of August 25/September 6, 1897, will be replaced by the 
 following provision : 
 
 "'Telegrams exchanged by the junctions contemplated by Article II of the Convention 
 of August 13/25, 1892, will be subject to the following charges: 
 
 " ' Russia: 
 
 "'A — Terminal Charges. — (1) European Russia, francs 1.00 per word; (2) Asiatic 
 Russia, francs 0.50 per word. 
 
 "'B — Transit Charges. — (1) For telegrams exchanged between America, on the one 
 hand, and China and countries beyond China, on the other hand, francs 2.25 per word; 
 (2) for telegrams exchanged with Bokhara, francs 1.50 per word; (3) for all other tele- 
 grams, francs 1.75 per word. 
 
 '' ' China (including Hongkong) : 
 
 "'A — Terminal Charges. — (l)For telegrams exchanged wiih Europe (excepting Russia) 
 and countries beyond Europe (excepting America), francs 3.75 per word; (2) for telegrams 
 exchanged with America, francs 4.75 per word; (3) for all other telegrams, including those 
 exchanged with Russia, francs 1.00 per word. 
 
 "'B — Transit Charges. — (1) For telegrams exchanged between Europe (excepting Rus- 
 sia) and countries beyond'' Europe (excepting America) on the one hand, and all countries 
 beyond China, on the other hand, francs 3.75 per word ; (2) for telegrams exchanged 
 between America, on the one hand and all countries beyond China, on the other hand, 
 francs 4.75 per word; (3) for telegrams exchanged between European Russia and Japan, 
 francs 2.00 per word; (4) for all other telegrams, francs 1.50 per word. 
 
 " ' Of the charges mentioned above, under the headings China, A, 1 and 2, and B, 
 1 and 2 (francs 3.75 and francs 4.75, respectively), China must pay the quotas due to the 
 several countries of Europe in conformity with the International Telegraph Regulations in 
 force, and the international tariffs. 
 
 " ' China furthermore undertakes to arrange with the Great Northern Telegraph Com- 
 pany so that the total charge per word for telegrams transiting China and forwarded by 
 the Russo-Chinese junctions shall not exceed that of the same telegrams going by way of 
 Vladivostok ; to that end, China must pay, of the charges mentioned under the heading 
 China, B, \, 2, 3 and 4, as the case may be, the quotas reserved to that company for the 
 cables laid between Shanghai and Nagasaki, and between Shanghai and Hongkong, in the 
 proportions fixed by a mutual understanding between China and the Company. 
 
 " ' All the charges mentioned in the present article will come into force from July 1, 
 1904 (New Style), and can be modified only by mutual agreement by the contracting parties. 
 But the two Governments are agreed that the charges indicated above, under the headings 
 Russia, B, 3 (namely, francs 1.75), and China, A, 1, and B, 1 (namely, francs 3.75), less 
 the portion for Europe, arc applicable, so far as concerns telegrams sent by the wires oper- 
 ated by the Great Northern Telegraph Company on the Chinese telegraph line from Mai- 
 mai-chen to Peking and Taku, from the date of the opening of that line to traffic for tele- 
 grams transiting Russia." 
 
 " Article II. — As the establishment of a rate of exchange, for the period of a year, 
 of the Mexican dollar, for the levy of charges and the settlement of accounts, involves 
 great disadvantages in view of the frequent fluctuations in the price of silver. Article IX 
 of the Convention of 1892, and the Supplementary Declaration of 1896, are replaced by the 
 following provision : 
 
 " ' The levying of charges at all the stations of the Telegraph Administration of China 
 (including Hongkong), in accordance with the tariffs established by Article VII of the 
 Convention of August 13/25, 1892, in francs, as also the settlement of mutual accounts, will 
 be done in ^Mexican dollars in conformity with the actual rate of exchange for the con- 
 version of that money into francs. This rate of exchange will be established by mutual 
 agreement between the Telegraph Administrations of the Contracting Governments, during 
 the course of the month preceding each four-month period of the year, on the basis of 
 the average rate of exchange for the three months preceding that of the establishment of 
 the rate.' 
 
 " It is clearly understood that the provisions of the Convention of August 13/25, 1892, 
 and of the Supplementary Declarations of July 18/30, 1896, August 25/September 6, 1897, 
 and November 14/27, 1902, not modified by the present Declaration, remain in full force. 
 
 " Done at Peking, the 10th day of the 12th moon of the 30th year of the Reign of 
 Kuang Hsij, and according to the Russian calendar, January 2, 1905. 
 
 " (L. S.) (Sgd.) Paul Lessar. 
 
 " (L. S.) of the Tsung-li Yanien 
 
 (Sgd.) Prince Ch'ing." 
 
 This arrangement was subsequently modified by a further Supplementary Declaration, 
 under date of December 22, 1905/January 4, 1906, of which the translation (from the 
 French text printed in Recueil, p. 763) is as follows:
 
 NUMBER 1903/1 : JANUARY 27, 1903 385 
 
 Supplementary Declaration regarding Russo-Chinese Telegraph Connections. — Janu- 
 ary 4, 1906. 
 
 " In consequence of the assimilation of Bokhara to Asiatic Russia in respect to tele- 
 graph charges, the Imperial Government of China and the Imperial Government of 
 Russia have agreed to modify as follows the Supplementary Declaration of January 
 2/15.1905: 
 
 "'The words, for telegrams exchanged -with Bokhara, — francs 1.50 per -word, which 
 appear under the heading Russia, B, 2, of Article I of the Supplementary Declaration of 
 January 2/15, 1905, will be considered as struck out from that Declaration as from June 1st 
 of the European calendar.' 
 
 " It is clearly understood that all other provisions of the Supplementary Declaration 
 of January 2/15, not modified by the present Declaration, remain in full force. 
 
 " Done at Peking, the 10th day of the 12th moon of the 31st year of the Reign of 
 Kuang Hsii, according to the Chinese calendar, and the 22nd of December, 1905 (January 
 4, 1906) •". 
 
 NUMBER 1903/1. 
 
 PORTUGAL AND CHINA. 
 
 Additional Convention regarding the establishment of a ciistouis house at 
 Macao* — January 27 , 1903. 
 
 Since, as is contemplated in Article VI of the Convention of 1902 between 
 Portugal and China, there is occasion to draw up regulations for the establish- 
 ment of a Customs House in Macao, the Inspector General of Customs, Sir 
 Robert Hart, and the Charge d'Affaires of Portugal, Gabriel de Almeida Santos, 
 both duly authorized and furnished with the necessary instructions, have agreed 
 upon regulations, in eleven articles, drawn up as follows : 
 
 Article I. — Buildings situated upon the inner port and suitable for use as 
 offices and warehouse for the Customs will be placed at the disposition of the 
 Imperial Customs. 
 
 Article II. — The Customs House will be placed under the control of a 
 Commissioner of Imperial Maritime Customs. 
 
 Article III. — Vessels or commercial junks will be met and visited on arrival 
 by officers of the Customs House. 
 
 Article IV. — On entering and on sailing, every vessel or commercial junk 
 must be reported at the Customs House before crossing certain designated limits 
 of the port, and the loading and unloading of cargo can only take place at 
 designated places and under the supervision of the Customs House. 
 
 A special anchorage will be reserved for loaded commercial junks: they 
 will not leave this anchorage until after having received a permit for unloading 
 or for departure, delivered by the Customs House. 
 
 Article V. — No merchandise may be loaded or unloaded except upon per- 
 mission from the Customs House and upon payment of duties in accordance 
 with the treaty tariff. 
 
 * Translation from the French text as printed in Customs, Vol. II, p. 307. 
 In connection with this convention see also the supplementary commercial convention 
 between Portugal and China, October 15, 1902 (No. 1902/9, ante).
 
 386 CHINA TREATIES AND AGREEMENTS 
 
 Products being exported, originating in Macao, as also those being imported, 
 of foreign origin or destined for the sustenance of Macao and of its inhabitants, 
 will be exempt from duty. Any product of foreign origin, exempted from duty 
 upon importation, will pay duty in case it leaves Macao in order to enter China 
 by land or by sea. 
 
 Article VI. — Opium will invariably pay duty and likin, whether upon 
 entry or upon being taken out from the warehouse, and a certificate of payment 
 will be affixed to each ball of opium, whether or not it is destined for despatch 
 into the interior ; but the duties and the likin levied upon the quantities of opium 
 fixed annually for local consumption will be repaid monthly by means of a 
 drawback certificate. 
 
 Article VII. — Boats belonging to the office of the Captain of the Port of 
 Macao will be placed at the disposal of the Customs House for the service of 
 meeting and visiting boats or junks upon arrival, but it will be optional for the 
 Customs House to make use of its own boats in order to meet the needs of the 
 service. 
 
 Article VIII. — The service of Maritime Police will be governed in accord- 
 ance with an understanding between the Imperial Customs and the Government 
 of the Colony. A portion of the cost of this service will be at the expense of 
 the Customs House, and the amount that it is to pay is to be determined annually. 
 For the purposes of control of the Maritime Service, an officer of the Portuguese 
 Navy, delegated by the Captain of the Port, will be attached to the staff of the 
 Imperial Customs House. 
 
 Article IX. — The repressive measures to be adopted against smuggling in 
 the waters and on the territory of Macao will be taken by the Government of 
 Macao in accord with the Commissioner of Customs, and in the neighboring 
 waters and Chinese territory, by the Customs House in accord with the Govern- 
 ment of Macao, in order that these measures may, on the one hand, be effective 
 at all points where co-operation is necessary, and that, on the other hand, they 
 may in no way infringe upon the sovereign rights of one or the other party. 
 
 Article X. — So soon as the Imperial Customs House is established in 
 Macao, the Customs stations of Ma-liu-chou and Ch'ien-shan will be closed; 
 but the posts established at different points on Chinese waters and territory for 
 the prevention of contraband will be maintained so long as China deems neces- 
 sary for the protection of its revenue. 
 
 Article XI. — The present Convention will remain in force as long as the 
 Treaty of 1887 : the denunciation of the Treaty would carry with it that of this 
 Convention. Regulations for the procedure to be followed in Customs matters 
 in Macao will be drawn up by agreement between the Government of the Colony 
 and the Commissioner of Customs. Those regulations will be experimental and 
 provisional, and may, if necessary, be modified in conformity with the circum- 
 stances and with a view to facility in operation. 
 
 In faith of which, the present agreement, drawn up in Portuguese, Chinese 
 and French, has been signed in duplicate at Peking, the twenty-seventh day of 
 January, 1903. (Sgd.) Robert Hart. 
 
 (Sgd.) Gabriel de Almeida Santos.
 
 NUMBER 1903/2: JULY 9, 1903 387 
 
 NUMBER 1903/2. 
 
 GREAT BRITAIN (British and Chinese Corporation, Ltd.) AND CHINA. 
 
 Agreement for a loan for the construction of a raihvay from Shanghai to 
 
 Nanking.''— July 9, 1903. 
 
 This agreement is made the 15th day of the Intercalary 5th month of the 
 29th year of Kwang-Hsii, corresponding to the 9th day of July 1903, at Shanghai, 
 and the Contracting Parties are : 
 
 The Director-General of the Imperial Railway Administration Sheng Kung- 
 Pao (to be called hereafter Director-General), acting under authority of an Impe- 
 rial Decree, of the one part, and Messrs. Jardine, Matheson & Company, and the 
 Hongkong and Shanghai Banking Corporation, representing as Joint Agents the 
 British and Chinese Corporation Limited (hereinafter called the Corporation), 
 of the other part. 
 
 Whereas, on the twenty-third day of the Intercalary third month of the 
 twenty-fourth year of Kwang-Hsu, being the thirteenth day of May 1898, a 
 preliminary Agreement f was signed at Shanghai between the Director-General 
 of the Chinese Imperial Railway Administration, Sheng, acting under the instruc- 
 tions from the Tsungli Yamen, and the British firm of Jardine, Matheson & 
 Company, for themselves and on behalf of the Hongkong and Shanghai Banking 
 Corporation, representing as Joints Agents a British Syndicate, and 
 
 Whereas, on the 12th day of December 1902, an Imperial Decree was 
 issued in the following terms : " In view of the important considerations con- 
 nected with construction of railways in various parts a decree has already been 
 issued apportioning the responsibility for the duties connected therewith. Here- 
 after the accounts of receipts and disbursements are to be prepared by Sheng 
 Hsuan Huai, and communicated by him for the examination of the High Authori- 
 ties of the Provinces through which the railways pass, and subsequently for 
 submission in a joint memorial to the Throne. When a line of railway has 
 been surveyed, before the work may be begun, plans and specifications must be 
 communicated to the High Authorities above-mentioned, who will depute an 
 official to ascertain that there are no objections. Should Sheng Hsuan Huai 
 enter into an agreement with a foreign syndicate he must before signing such 
 agreement obtain the assent of the High Provincial Authorities, and a copy of 
 such agreement must be submitted to the Throne in a joint memorial " and 
 
 Whereas, on further consideration it has been found necessary to make cer- 
 tain alteration in the aforesaid preliminary agreement, now therefore it is agreed 
 that this final Agreement shall be substituted for the preliminary agreement above 
 referred to. 
 
 Article 1. — The Corporation agrees to issue on behalf of the Railway Ad- 
 ministration, a sterling loan (hereinafter referred to as the loan) for an amount 
 
 * Text as printed in Wang, p. 221. Printed also in RockhiU, p. 286. 
 t Note 1 to this document, post, p. 402.
 
 388 CHINA TREATIES AND AGREEMENTS 
 
 «ot exceeding £3,250,000 sterling on the terms and conditions hereinafter con- 
 tained. Imperial Chinese Government bonds are to be issued for the entire sum, 
 similar to the bonds of the Imperial Railways of North China, with the Railway 
 as first mortgage security therefor. The loan shall be issued in two or more parts, 
 and each series is to be in such amount as the Engineer-in-Chief may determine 
 under direction of the Director-General and the Corporation, in accordance with 
 the extent of the work to be undertaken, so as to prevent the Chinese Govern- 
 ment from suffering undue loss of Interest. The price agreed upon for the 
 loan is 90 per cent, of the nominal value, and any loss or profit in selling these 
 bonds to the public shall be borne by or go to the Corporation. The interest 
 on the bonds shall be at the rate of 5 per cent, per annum on their nominal value, 
 and be payable half-yearly. 
 
 The duration of the loan is fixed at fifty years, commencing from the date 
 of ratification of this Agreement, but no interest will be paid on any bonds which 
 may be redeemed or cancelled under the terms hereinafter mentioned after the 
 redemption or cancellation thereof. 
 
 On the face of each of these bonds shall be expressed the value thereof 
 in the sum of £100, or in such different amounts as the Chinese Minister in 
 London in consultation with the Corporation may sanction. 
 
 If any of the bonds or net profit certificates hereinafter mentioned are lost 
 or destroyed a re-issue of any thereof is to be made in the amounts respectively 
 called for by such lost or destroyed bonds or certificates but proper proof of 
 the loss or destruction must be given in the usual form to the Corporation and 
 the Chinese Minister in London for examination and record, and the requisite 
 guarantee is to be obtained by the Corporation from the respective claimants 
 concerned. 
 
 Article 2. — The proceeds of the loan are to be used in the construction and 
 equipment of the railway, and in paying interest on the loan during the course 
 of construction. 
 
 The Corporation shall build and equip as economically as possible in accord- 
 ance with the best modern system, the line from Shanghai to Nanking, it being 
 hereby agreed that the Chinese Administration shall secure the necessary land 
 for a double line of railway for the whole distance, as well as other facilities for 
 the purposes of the construction and working of the line. 
 
 When the line is completed if there is a surplus from the sale of bonds the 
 said surplus shall be at the disposal of the Chinese Government for redeeming 
 the bonds, or to be placed through the Director-General in a bank on deposit 
 for the purpose of paying interest on the loan or for developing business bene- 
 ficial to the Shanghai-Nanking Railway, all to be arranged at the proper time 
 between the Director-General and the Corporation. Should Chinese themselves 
 build branch lines to act as feeders to this railway, it is understood that the 
 system of construction and equipment thereof shall be adopted by such branch 
 lines in order to facilitate through connection. 
 
 In all matters relating to the construction and administration of the Railway 
 by the officials of the British and Chinese Corporation it is expressly agreed 
 that particular heed shall be paid to the opinions, habits, and ideas of the Chinese
 
 NUMBER 1903/2: JULY 9, 1903 389 
 
 people and that when practicable Chinese shall be employed as far as possible 
 by the Board of Commissioners in positions of trust and responsibility in connec- 
 tion with the railway. 
 
 In regard to the earthwork or such other work as Chinese are competent to 
 perform, contracts shall be entered into for such work with Chinese under the 
 sanction of the Director-General or his deputy, said work itself to be in accord- 
 ance with plans and specifications of the Engineer-in-Chief and under his super- 
 vision. 
 
 In the further and final survey, detailed plans and estimates of cost, whether 
 of the respective sections of the main line or of any extensions, branches, or 
 alterations of the same, are to be submitted to the Board of Commissioners for 
 the approval of the Director-General. 
 
 Article 3. — The loan shall be secured by mortgage now entered into in 
 equity, and shall as soon as possible hereafter be secured by a specific and legal 
 first mortgage in favor of the Corporation upon the railway not completed 
 between Woosung and Shanghai, and also on all lands, materials, rolling-stock, 
 buildings, property, and premises of every description purchased or to be pur- 
 chased by the railways herein referred to, and on the last-mentioned railways 
 themselves as and when constructed and on the revenue of all descriptions deriv- 
 able therefrom. 
 
 The provisions of this article in respect of the mortgage are to be construed 
 and treated as of the same purport and effect as a mortgage customarily executed 
 and delivered in England to a trustee for the purpose of securing loans and bond 
 issues upon railway properties. 
 
 Article 4. — According to Article 1 of this Agreement it is provided that 
 the loan is to be paid in instalments from time to time as the work proceeds. 
 It is hereby agreed that within eight months after this Agreement is officially 
 signed and ratified the Corporation shall pay the first instalment to meet the 
 requirements for the work, whether the proceeds come from the sale or hypothe- 
 cation of the bonds or from advances made, provided the appropriate series of 
 bonds for the required instalment of such loan shall have been executed and 
 delivered. If after the expiration of twelve months from the date of the ratifi- 
 cation hereof the work of construction shall not have been begun on the main 
 line, this Agreement is to become null and void. 
 
 Of the proceeds realised from the sale of the bonds, after deducting so 
 much of them as may be required to be kept in England for the purchase of 
 materials and payments of contracts there, such amounts as may be estimated 
 and certified to by the Engineer-in-Chief to the Board of Commissioners here- 
 after mentioned as being actually required for the construction of any particular 
 section of the main line shall be ordered by the Board of Commissioners after 
 consideration to be transferred to Shanghai to be kept in the Hongkong and 
 Shanghai Bank, or such bank or banks as may be mutually agreed upon, and 
 placed to the credit of the construction account of the Railway Administration 
 for the exclusive purpose of building such section or sections of the railway 
 herein provided for under the supervision of the Board of Commissioners. 
 
 On such occasion of a remittance being made to China the amount realised
 
 390 CHINA TREATIES AND AGREEMENTS 
 
 in sycee will be reported to the Director-General, and any portion which may not 
 be required shall be placed at interest. Similarly the balance in England shall 
 be placed at interest. 
 
 The accounts of the money spent from time to time in England, and of the 
 money transferred to the credit of the construction and other accounts for use 
 in China, are to be submitted quarterly to the Board of Commissioners for 
 examination and for report to the Director-General for the information of the 
 Wai-Wu-Pu, and for his further report to the Board of Revenue and the Bureau 
 of Mines for record therein, after such accounts have been approved and signed 
 by him. 
 
 Article 5. — The dates of the bonds mentioned in Article 1, and of the 
 certificates mentioned in Article 12 of this Agreement shall be of even date 
 with this Agreement. Interest shall begin to run upon the bonds only from the 
 date of their respective sales and deliveries to the public, and due adjustment of 
 such interest will then be made with respective purchasers for any fractional 
 period of time thereafter covered by the coupon next maturing. For the purpose 
 of such adjustment the then correct interest may be reckoned from the nearest 
 first or fifteenth day of the month in which the sale and delivery occur as the 
 case may be. 
 
 Coupons which have theretofore matured are to be cancelled and delivered 
 to the Chinese Minister in London for transmission to the Railway Admin- 
 istration. 
 
 As to the form of bond, it is to be agreed upon by the Director-General 
 or by the Chinese Minister in London and the British and Chinese Corporation 
 at the same time as this Agreement is signed, but if hereafter the money markets 
 in London or other countries require the modification of the form of the bond, 
 except in any thing that affects the amount of the loan, the rate of interest, the 
 period of the loan, and the liability of the Chinese Government, which are not 
 to be touched at all, such slight modifications may be made to meet the views 
 of the money markets by the Corporation in consultation with the Chinese Min- 
 ister in London. 
 
 Any modifications are to be reported at once by the Corporation to the 
 Director-General for the approval of the Wai-Wu-Pu. 
 
 The bonds and the net profit certificates referred to in Article 12 are to be 
 engraved entirely in the English language, and shall bear the fac-simile of the 
 signature of the Director-General and of his seal of office, in order to dispense 
 with the necessity of signing them all in person. But the Chinese Minister 
 in London is to sign each of the bonds and certificates and put his seal thereon 
 as required, as a proof that the issue and sale of these bonds as well as the certifi- 
 cates are duly authorized and binding upon the Chinese Government. 
 
 Such bonds or net profit certificates are to be numbered consecutively, and 
 as many bonds or certificates as may be needed are to be properly engraved 
 under the supervision of the Corporation. 
 
 The loan bonds herein referred to, as soon as they are engraved and signed 
 and sealed by the Chinese Minister in London as hereinbefore provided, are to 
 be countersigned by the Corporation.
 
 NUMBER 1903/2: JULY 9, 1903 391 
 
 The Chinese Minister in London and the Corporation are to agree upon the 
 selection of a proper safe deposit in London to keep these bonds, subject to the 
 needs and requirements of the Corporation, so as to enable it during the progress 
 of the Construction to sell these bonds after having been signed and sealed by 
 the Chinese Minister in London in separate lots from time to time, or hypothe- 
 cate the same in order to raise money to pay for the construction of the rail- 
 way or any of the branch lines as may have been approved by the Director- 
 General. 
 
 When the second and subsequent issues are about to be made, if the Cor- 
 poration receives sufficient notice from the Director-General that subjects of 
 China vi^ish to take up a portion of the issue, the necessary amount of bonds 
 will be set aside for Chinese subscribers, to whom the bonds will be sold at the 
 same price, and on the same conditions as those sold to the public in London. 
 If possible, arrangements will be made for issuing these bonds and paying the 
 interest thereon, in China, at the current rate of the day. 
 
 The amount of the loan is fixed at £3,250,000 for the purpose of constructing 
 and equipping the main line of the Shanghai-Nanking Railway, in accordance 
 with the survey and estimates of the Engineer-in-Chief as approved by the 
 Director-General. 
 
 The first issue of bonds shall be made in London in such amount as may 
 seem necessary for the work to be undertaken, but before the second or subsequent 
 issues are made the Corporation shall give sufficient notice to the Chinese Minister 
 in London, in order that if the Chinese Government has funds at its disposal at 
 the time it may place such funds to the credit of the construction account of the 
 Chinese Railway Administration, to be used in the same manner as the proceeds 
 of the loan, and in that event the total amount of the loan of £3,250,000 shall 
 be reduced by the amount thus supplied by the Chinese Government. 
 
 It is also agreed that the moderate charge for the safe deposit of the bonds 
 is to be paid from the general accounts of the railway. Beyond this all expense 
 for the engraving and the sale of the bonds and such like are to be borne by 
 the Corporation. On withdrawal or deliveries of bonds the Safe Deposit Com- 
 pany shall notify the Chinese Minister in London. 
 
 Article 6.$ — When the work of construction is ready to begin the Director- 
 General shall appoint a Board for supervising the construction and operation of 
 the railway, to be called the Board of Commissioners, whose head office shall 
 be at Shanghai. The members thereof shall be five, of whom two are to be 
 Chinese, one to be appointed by the Director-General and one by the Director- 
 General in consultation with the High Authorities of the Province through which 
 the line passes, and besides the Engineer-in-Chief there shall be two British 
 members selected and appointed by the Corporation. The salaries of these five 
 members are to be fixed by the Director-General and the Corporation, and to 
 be paid from the general accounts of the railway. The regulations for the guid- 
 ance of the Board of Commissioners shall be subsequently drawn up by the 
 Director-General in consultation with the Agent of the British and Chinese 
 Corporation. In case of disagreement between the Chinese and the British 
 
 t See Note 2 to this document, post, p. 404.
 
 392 CHINA TREATIES AND AGREEMENTS 
 
 members the matter shall be referred to the Director-General and the Agent of 
 the Corporation resident in China for adjustment in an amicable way. 
 
 The appointments and functions of all the employees of the railway, Chinese 
 and foreigners, with the exception of the Engineer-in-Chief, who shall be nom- 
 inated by the Corporation and approved by the Director-General, as well as 
 their salaries, including those of the officials of high rank referred to in the 
 following paragraphs, are to be made and fixed by the Board of Commissioners 
 and reported to the Director-General. In the case of important appointments 
 the same shall be first reported to the Director-General by the Chinese members 
 of the Board. 
 
 In addition to the Board of Commissioners, the Viceroy (the Superintendent 
 of Southern Trade) may also appoint an official of equal rank with the above- 
 mentioned two Chinese officials, whose duty will be to make report for the in- 
 formation of the High Provincial Authorities on the state of the railway ac- 
 counts, the progress of the work, and the management of the railway. To this 
 end he will be granted every facility by the Board of Commissioners, who will 
 always give him access to the records of the head office at Shanghai. But this 
 official shall not in any way interfere with the Board in the performance of its 
 duties. The salary of this officer shall be the same as that of the two Chinese 
 members of the Board, and be paid out of the railway account. 
 
 The functions of the Engineer-in-Chief, who will at all times give courteous 
 consideration to the wishes of the High Provincial Authorities and the Director- 
 General, shall be limited to the construction and operation of the line, and the 
 management of affairs connected with the railway. No foreigners employed 
 in the railway shall be allowed to treat Chinese officials with disrespect, or inter- 
 fere in local affairs, or usurp the authority of local officials ; and should any such 
 be guilty of riotous conduct, or of wounding and maiming Chinese, the same shall 
 be dismissed on complaint being made by the Director-General. 
 
 As the progress of construction reaches any particular province the appoint- 
 ment, under the Imperial sanction, of a Chinese official of high rank shall be 
 made in such province by the Director-General for facilitating the settlement of 
 any local matter with the Provincial Government concerned. 
 
 For the service of the railway any Chinese of official rank and competent 
 for the work may be recommended by the Board of Commissioners to the 
 Director-General for employment, under the formality of a letter of appoint- 
 ment. 
 
 For the important offices of the railway foreigners of ability and experience 
 shall be employed. In the engineering and traffic departments competent Chinese 
 may also be employed and all employees, whether Chinese or foreigners, if 
 incompetent in their work or unsatisfactory in their behaviour, may be dismissed 
 at any time by the Board of Commissioners, and the dismissal shall be reported 
 to the Director-General. The Chinese and British members of the Board when 
 ill or absent may be represented at the Board by available substitutes. In the case 
 of the Chinese members the substitutes must be approved by the Director-General, 
 and in case of the British members by the Corporation. 
 
 When deemed necessary a school for the education of Chinese in the con-
 
 NUMBER 1903/2 : JULY 9, 1903 393 
 
 struction and working of railways shall be undertaken by the Board of Commis- 
 sioners, subject to report to and approval by the Director-General. 
 
 The accounts of the receipts and disbursements of the railway are to be 
 kept by a Chief Accountant, whose records and books are at all times open to 
 the inspection and examination of the Board of Commissioners. All the accounts 
 of the railway construction and operation are to be kept in Shanghai currency 
 in the English and Chinese languages, with the combined signature of a Chinese 
 and British official. The staff of the Chief Accountant's department shall be 
 composed of Chinese and foreigners, who must be satisfactory and reliable 
 men. 
 
 Article 7.§ — Under the provisions of Article 3 of this Agreement the prop- 
 erties covered by the first mortgage security hereby created include the railway, 
 its property and equipment, said mortgage to be executed by a deed in the usual 
 form as contemplated by the said Article. But subject to the guarantee and 
 mortgage thus given by the Chinese Government, it is hereby declared that this 
 railway is in fact a Chinese property. 
 
 All the lands that may be required for a double line of railway from Shanghai 
 to Nanking and for the double track-sidings, stations, repairing shops and car- 
 sheds to be provided for in accordance with the detailed plans now made or 
 hereafter to be made by the Engineer-in-Chief, and approved by the Director- 
 General, shall be acquired by the Railway Administration, whether in whole or 
 in part, according to the means at its disposal at the actual cost price of the land. 
 The cost of such land is not to exceed £150,000. 
 
 The titles to the land for the line and of all other lands shall be free from 
 all encumbrances or entanglements, and shall from time to time as soon as secured 
 be registered in the name of the railway. 
 
 For such money as may be provided by the Railway Administration for 
 the purchase of land there shall be allowed yearly interest at the rate of 6 per 
 cent., to be paid by the railway after the fixed charges and maintenance and 
 interest of 5 per cent, on the bonds shall have been met. 
 
 Notices of such purchases (together with corresponding title-deeds) are to 
 be transmitted by the Railway Administration under the direction of the Director- 
 General to the local agent of the Corporation for record and preservation in 
 its office in Shanghai, and for the purpose of establishing the first mortgage 
 security (and thereafter for the return to the Railway Administration) as herein- 
 after in this article provided in respect of railway lands and properties. When 
 the term of this Agreement expires all the title-deeds shall be surrendered and 
 returned to the Railway Administration. 
 
 The amount to be advanced to the Chinese Railway Administration for any 
 land within the survey limits shall altogether not exceed the sum of £150,000, 
 for which yearly interest at the rate of 6 per cent, shall be allowed from the 
 receipts of the railway. It is understood that any land bought by the Chinese 
 Railway Administration with their own money outside of the survey limits, 
 but needed for future requirements, shall be on the Chinese Administration's 
 own account, and no interest shall be allowed on the price thereof. 
 
 § See Note 3 to this document, post, p. 408.
 
 394 CHINA TREATIES AND AGREEMENTS 
 
 It is further agreed that if the British and Chinese Corporation is called 
 upon to provide means for the acquisition of the lands, whether by the sale of 
 bonds or by advances from other sources, the Chinese Government guarantees 
 to procure and protect all the lands that are required for the line of railway. 
 
 All lands the title-deeds of which are lodged with the Corporation as part 
 of the first mortgage security of the loan shall not be disposed of in any way 
 by hire, lease, or sale to any party for any purpose whatever without the written 
 consent of the Chinese Administration. 
 
 It is also agreed that the lands thus bought, whether from Chinese or British 
 advances, shall be free from all entanglements arising from the removal of 
 graves or from prejudices of " fengshui," and shall be conveyed by full and 
 sufficient deeds of assignment according to Chinese law, all of which are to 
 be kept and recorded in the Shanghai office of the British and Chinese Corpora- 
 tion, and to be held by it as a first mortgage security for the bonds under the 
 provisions of this Agreement until such time as principal and interest of the bonds, 
 together with all indebtedness, shall have been paid off, when the same shall 
 then be returned to the Chinese Railway Administration. 
 
 For the proper protection of the first mortgage security the Chinese Government 
 undertakes that until the bonds shall have been redeemed, and the net profits 
 on the net profit certificates shall have been paid, no part of the lands comprised 
 in the mortgage security or the railway with its appurtenances shall be transferred 
 or given to another party, or shall be injured, or that the rights of the first mort- 
 gage shall be in any way impaired. 
 
 It is likewise agreed that until the interest and principal of the loan and 
 all indebtedness shall have been paid off, or unless with the express consent in 
 writing of the Corporation, the Chinese Government or the Chinese Railway 
 Administration shall not again mortgage the above properties to another party, 
 whether Chinese or foreign. 
 
 During the period of this agreement no special taxes shall be levied by the 
 Chinese Government on the railway, its appurtenances or earnings ; but all taxes 
 at present payable, such as land tax, as well as any taxes which the Chinese 
 Government may hereafter institute, such as stamp duty, etc., and which may 
 be applicable generally to all commercial transactions in China, shall also apply 
 in the case of the railway and its operations. 
 
 The first expense in railway construction being the purchase of land it is 
 agreed that as soon as the survey is made the Corporation shall advance to the 
 Railway Administration sums as required to pay for the land purchased. For 
 such advance the Woosung railway, with all its property, shall be given as first 
 mortgage security, and interest at the rate of 6 per cent, per annum shall be 
 allowed until the first portion of the loan has been floated, when such advances 
 shall be repaid from the first proceeds of the loan. 
 
 As owing to the unwillingness of owners to sever their land it may become 
 necessary for the Railway Administration to acquire more land than is actually 
 necessary for railway purposes, the Railway Administration may do so in view 
 of future requirements, but it is understood that any land bought from funds 
 so advanced, out of the survey limits, shall be on the Chinese Administration's
 
 NUMBER 1903/2: JULY 9, 1903 395 
 
 own account. When the purchase of all the land is completed, and the total 
 amount thus expended is ascertained, an additional issue of bonds for an amount 
 not exceeding £250,000, including the £150,000 referred to in this article, shall 
 be made in order to repay the sums spent in the purchase of land. 
 
 Such bonds shall be similar to the bonds mentioned in Article 1 of this 
 Agreement, and shall have the same guarantee and same mortgage security and 
 same treatment, with, however, this difference, that they shall be redeemable 
 at par at any time on giving six months' notice, and that the rate of interest 
 shall be 6 per cent, per annum. The interest on such portions of this loan as is 
 applied to the purchase of land outside of the Engineer-in-Chief's survey shall 
 in the first place be paid ovit of the Chinese share of the net profits of the 
 railway, and failing this then out of the earnings of the railway. 
 
 As the object which the Railway Administration has in view is that all 
 railway lands should be Chinese property, the additional loan of £250.000 shall 
 be paid off as soon as practicable. Nevertheless, although such bonds may be 
 redeemed, the land occupied by the railway within the survey limits shall continue 
 as mortgage security under the terms of this Agreement. 
 
 Article 8. — It is agreed that if the half-yearly interest of the bonds is not 
 paid on any due date thereof, or if the principal of the loan remains unpaid at 
 maturity of the same, the whole railway with all its appurtenances herein mort- 
 gaged to the British and Chinese Corporation for the bondholders shall be 
 handed over to the Corporation to be dealt with by it according to law, in such 
 manner as will insure the proper protection of the interests of the bondholders. 
 When the whole loan and the interest due thereon and all indebtedness shall have 
 been paid off, the railway, with all its appurtenances, in good working condition 
 shall revert to the possession and management of the Chinese, according to the 
 provisions of this Agreement. 
 
 Article 9. — As remuneration for superintendence and services the Corpora- 
 tion shall receive 5 per cent., on the entire cost of all materials purchased for 
 the Railway. 
 
 It is agreed that all materials required for the railway shall be purchased 
 in the open market at the lowest price obtainable, but it is understood that all 
 such materials shall be of good and satisfactory quality. Invoice and inspector's 
 certificates are to be submitted to the Chinese Administration. 
 
 With a view to encouraging Chinese industries Chinese materials are to be 
 preferred, as also the products of the Han-yang Iron Works, provided price and 
 quality are suitable. 
 
 No commission will be allowed to the Corporation on the purchase of mate- 
 rials except as herein provided. All trade discounts or rebates, if any, are to 
 go to the construction account. 
 
 Article 10. — In the construction of the line, in the working of the railway, 
 and in the performance of the different kinds of business connected with the 
 railway, no interference or obstruction by Chinese or foreigners wnll be permitted. 
 The Chinese Government will provide protection for the line while in construc- 
 tion or when in operation, and all the properties of the railway, the combined 
 enterprise of the Chinese Administration and British and Chinese Corporation,
 
 396 CHINA TREATIES AND AGREEMENTS 
 
 as well as all foreigners and Chinese employed therein, are to enjoy the utmost 
 protection from the local officials, civil and military, in the provinces through 
 which the railway passes, particularly on occasions of local disturbance or of 
 obstruction by natives. 
 
 The Board of Commissioners are authorised to maintain a railway police 
 of Chinese with Chinese officers for the protection of the line. Their wages 
 and maintenance are to be wholly defrayed by the railway. In the event of 
 the railway requiring further protection by the military forces of the Imperial 
 or Provincial Government the same will be duly applied for by the Director- 
 General and promptly afforded, it being understood that such military forces, 
 although transported free by the railway, are to be maintained at the expense of 
 the Government or the Provinces, as the case may be. 
 
 The railway police may not interfere with matters outside the railway. 
 
 Article 11. — In connection with the railway there shall be established and 
 maintained a proper signaling service, which shall include.. such telephone and 
 telegraph conveniences as may be found necessary to use along the line of the 
 railway and its branches for the exclusive purpose of regulating the movement 
 of trains and other incidental business of the railway, and such telephones and 
 telegraphs shall not be used in or interfere with the rights and privileges of 
 the Telegraph Administration. 
 
 It is further agreed that the Corporation may, in consultation with the 
 Director-General, also establish and maintain in connection with such railway 
 or its branches such other necessary adjuncts of modern railway operation 
 as it may find expedient for the support of the railway, such as repair and manu- 
 facturing shops, docks, steamers, ferries, storage warehouses, etc. 
 
 Article 12. — It is agreed that after deducting from the income of the 
 railway the working and other expenses as described below, the Corporation shall 
 receive 20 per cent, of the net profits, to be represented by and in form of 
 certificates to an amount equal to one-fifth of the cost of the line. These certifi- 
 cates carrying no interest, they are to have a term of fifty years and declared 
 face value of ilOO each, and are to be issued to the Corporation at the same time 
 as the loan bonds, and in amount proportionate to the respective series of such 
 bonds to the amount of one-fifth of the aggregate thereof. And it is understood 
 that if there is an issue of the loan bonds in excess of the requirements of the 
 railway, and such excess is retired or cancelled, a like proportion of these certifi- 
 cates shall likewise be subject to retirement. 
 
 Before the expiration of the term of fifty years the Chinese Administration 
 shall have the right at any time to redeem these certificates at their face value. 
 After the expiration of fifty years the certificates shall be null and void and 
 need not be redeeemed, but if any net profits shall have accrued on such certifi- 
 cates prior to their redemption or maturity, said accrued net profits must be 
 paid before the same are cancelled. 
 
 The Chinese Railway Administration is entitled to issue and receive like 
 net profit certificates (to be in form appropriate for use in China and unlimited 
 in their term, as also without redemption features) to an amount equal to the 
 remaining four-fifths of the loan. These Chinese certificates may be issued in
 
 NUMBER 1903/2: JULY 9, 1903 397 
 
 whole or in part whenever desired by the Director-General, but the net profits 
 will be retained and used by the Railway Administration for the purpose of 
 accumulating a fund to be derived from such share of net profits as may accrue 
 thereon wherewith to pay off any loan bonds which may from time to time be 
 redeemed under the provisions of this Agreement, or for generally reducing or 
 ultimately discharging railway loan obligations whenever or wherever desirable 
 by means of the profits of the railway. But such Chinese certificates may, how- 
 ever, be used in part by the Railway Administration if necessary in payment of 
 lands which- are essential to the railway, and which cannot otherwise be con- 
 veniently acquired by it. 
 
 The yearly income of the railway shall be subject to a deduction of all 
 working expenses, cost of maintaining and repairing the railway, renovating or 
 replenishment of engines and rolling-stock, and all expenditure connected with 
 the business of the railway, and subject to the payment of interest on the bonds 
 at 5 per cent, per annum (and of interest of 6 per cent, per annum on the cost 
 of the land provided by the Chinese Administration, or provided by an advance 
 from the British and Chinese Corporation), whatever is left of the gross income 
 is considered to be net profits, of which one-fifth is to be given to the Corpora- 
 tion for disposal as it may see fit. If the loan bonds shall have been all redeemed 
 according to the provisions of this Agreement before the net profit certificates 
 issued to the Corporation have been redeemed, or shall have lapsed by effluxion 
 of time, the Corporation shall be permitted to have a representative in the railway 
 office (whose salary is to be paid by the Railway Administration) to inspect the 
 accounts of the railway. 
 
 The duties of this officer are those of an accountant who is to protect the 
 interests of the foreign holders of net profit certificates until such time as these 
 certificates shall have all been redeemed or lapsed by effluxion of time, when 
 the services of such accountant shall be dispensed with. 
 
 Article 13. — The British and Chinese Corporation are hereby appointed 
 trustees for the bondholders and holders of net profit certificates, and in any 
 future negotiations respecting these loans or matters arising in connection 
 therewith, which may take place between the Railway Administration and the 
 Corporation, the latter Corporation shall be taken as representing the bond- 
 holders and holders of the net profit certificates, and as empowered to act on 
 their behalf. 
 
 Article 14. — All materials of any kind that are required for the construc- 
 tion of the main line or branch lines, whether imported from abroad or from 
 the provinces to the scene of the work, shall (following the precedent of the 
 Northern Railway) be exempted from Customs duty and likin. The bonds of 
 this loan together with their coupons, the net profit certificates and the income 
 of the railway, shall be free from imposts of any kind by the Government of 
 China. 
 
 As to the likin for goods or passengers which. may be transported over the 
 lines from to or through the different provinces, the Director-General will confer 
 with the Government Bureau of Mines and Railways and the Board of Revenue 
 with a view to devising means to protect the traffic of the railway, and those
 
 398 CHINA TREATIES AND AGREEMENTS 
 
 who may use the railway for the transport of their goods, from illegal impositions 
 and other abuses. 
 
 If the arrangements for the levy of likin over other railway lines is found 
 to be more advantageous than that of the railways mentioned in this Agreement, 
 the same advantages shall be extended to and enjoyed by the Shanghai-Nanking 
 Railway, and by those who make use of the same. 
 
 Article 15. — It is agreed that during the time of the construction of the 
 line the yearly 5 per cent, interest on the bonds and 6 per cent, interest on the 
 amount spent in the purchase of the land are to be paid from the proceeds of 
 the loan. The accruing interest from any proceeds of the loan not used during 
 the period of construction, and the earnings from the working of any sections 
 as they are built, are to be used to make up the amount required for the payment 
 of the said interest, and if any deficiency remains it is to be met from the proceeds 
 of the loan. 
 
 When the construction of the line is wholly completed the interest on 
 the bonds and on moneys spent in purchasing the land are to be paid from the 
 earnings of the line every half-year on the first day of June and first day of 
 December. 
 
 It is hereby agreed that the amount required for the payment of interest and 
 repayment of principal, together with a sum of one-quarter of 1 per cent, on 
 such amounts to cover commission to the Hongkong and Shanghai Banking Cor- 
 poration, who are hereby appointed agents for the service of repaying the loan, 
 shall be paid to them in Shanghai fourteen days before the due dates, in 
 Shanghai sycee sufficient to meet such payments in sterling in London, 
 exchange for which shall be settled with the Hongkong and Shanghai Banking 
 Corporation on the said date of payment at the rate fixed at the time of 
 settlement. 
 
 The Chinese Government undertakes and hereby promises to pay the principal 
 of the loans and the interest on the loans on the due date fixed therefor. If at 
 any time the earnings of the railway and proceeds of the loan are not sufficient 
 to pay the interest of the bonds the Railway Administration is to devise means 
 for supplying the deficiency ; and should its inability to do so appear probable 
 the Director-General will memorialize the Government to take measures to make 
 up the deficiency from other sources, and thus be ready to pay off the indebted- 
 ness, so that the required amount may be placed in each case at least fourteen 
 days previous to the due date of such interest in the hands of the Hongkong and 
 Shanghai Banking Corporation in Shanghai. 
 
 Article 16. — In places along the line of railway where the Hongkong and 
 Shanghai Banking Corporation has no agencies, and where it does not intend 
 to establish any agencies, business relations are to be cultivated with the Chinese 
 Imperial Bank and its local agencies, it being the intention of the British and 
 Chinese Corporation to utilise the Imperial Bank as much as practicable for 
 facilitating the movement of funds. 
 
 Article 17. — The Corporation may, subject to all its obligations, transfer 
 or delegate all or any of its rights, powers, and discretions to their successors
 
 NUMBER 1903/2: JULY 9, 1903 399 
 
 or assigns, but the Corporation, which is a Corporation formed under English 
 law, shall not transfer its rights under this Agreement or the management of 
 the railway to other nations or people of any nationality except British or 
 Chinese. Similarly the Railway Administration shall not transfer any of its 
 rights under this Agreement to persons of other nationality. 
 
 It is further agreed that without the express consent in writing of the 
 Director-General and the British and Chinese Corporation no other rival railway 
 detrimental to the business of the same is to be permitted, and no parallel line 
 to the Shanghai-Nanking Railway is to be allowed to the injury of the latter's 
 interest within the area served by the Shanghai-Nanking main line or branch 
 lines. 
 
 Article 18. — If on account of contingencies beyond the control of the 
 Corporation, such as war or very great political changes in China or elsewhere, 
 occurring before the publication of the prospectus of the issue of an important 
 series of bonds of the loan hereby concerned, the foreign money markets are 
 affected, or the construction of the railway is so obstructed that work cannot 
 be carried on, the Corporation will be allowed a reasonable extension of time for 
 floating such loan or the bond issues thereof, or for the commencement or com- 
 pletion of the construction of the railway. But if bonds have already been issued 
 and interest already become payable thereon, then the work cannot be suspended 
 or postponed unless subject to the exceptions mentioned in the preceding para- 
 graphs. 
 
 When the Agreement has been ratified the work shall be begun as soon 
 as possible, and if the Chinese Railway Administration desire, each section 
 will be pushed on as rapidly as practicable. From the date of ratification a 
 limit of five years shall be allowed for the completion of the whole line, subject 
 to the preceding exceptions mentioned in this Article, and if this period is ex- 
 ceeded, unless with the consent of the Chinese Administration, the Corporation 
 shall forfeit its one-fifth share of net profits already earned during the previous 
 five years, and shall not begin to participate in such net profits until the line has 
 been completed. 
 
 Article 19. — In the working of the railway the tariff for fares and freights 
 is to be prepared by the General Traffic Manager, and submitted to the Board 
 of Commissioners, who shall, after due consideration of existing tariffs of other 
 railways in China, approve an economical rate. 
 
 The General Traffic Manager is likewise authorized to make arrangements, 
 subject to the approval of the Board of Commissioners, with connecting railways 
 of other companies for through rates of fare and freight. 
 
 In case of military operations, whether on account of foreign war or internal 
 insurrection, the movement of troops, ammunition, and stores by the Chinese 
 Government, and in case of famine or other great public calamity the dispatch 
 of relief, shall, on the requisition of the Director-General, have preference over 
 the line at half of the tariff rates. 
 
 Nothing to the injury of China shall be allowed to be carried over the line, 
 neither shall the line be used to the detriment of China.
 
 400 CHINA TREATIES AND AGREEMENTS 
 
 Article 20. — In the Preliminary Agreement, dated 13th May, 1898 (23rd 
 day of intercalary third month of the twenty-fourth year of Kwang-Hsii), it is 
 stipulated that the Railway Administration has the right to redeem the loan at 
 102% per cent, after twelve and a half years, and at par after twenty-five years. 
 It is now agreed that if at any time after the laose of twelve and a half years 
 from the date of the issue of the bonds the Chinese Railwav Administration re- 
 ceives instructions from the Chinese Government to cancel any of the bonds or 
 any of the net profit certificates, the Director-General shall, not less than six 
 months previous to the proposed redemption, notify in writing the Agent of the 
 Corporation in Shanghai declaring the number of bonds or the number of net 
 profit certificates so required to be redeemed and cancelled. 
 
 The Agent of the Corporation shall immediately on the receipt of such 
 notice in writing, proceed to make arrangements for the desired redemption by 
 drawing lots, and taking other proper steps in the way customary in London, 
 of the number of bonds or net profit certificates in such quantity as may be 
 required. And as soon as the Railway Administration, under instructions from 
 the Chinese Government, shall remit the proper amount according to the redemp- 
 tion price of the bonds or the redemption price of the net profit certificates, 
 together with the interest due on the bonds, or the net profits due on the certifi- 
 cates, a notice shall be published in two of the most prominent papers in London, 
 and in such other financial centres as may be agreed upon with the Chinese 
 Minister for four weeks. At the expi/ation of the four weeks, and on the day 
 fixed for the redemption, the Corporation shall cause the usual lots to be drawn 
 for the redemption of the bonds or certificates, and shall pay over the respective 
 prices of the same to their respective holders, and shall thus redeem the bonds 
 or net profit certificates and cancel them, and thereupon the same are to be deliv- 
 ered to the Director-General, or the Chinese Minister in London, for return to 
 the Director-General. 
 
 All the loan bonds, and the net. profit certificates shall express that they 
 are redeemable at any time on the conditions mentioned in the preceding para- 
 graph, and shall state that the payment of any interest for the bonds, and the 
 participation of any of the net profits by the certificates so drawn by lot, entirely 
 cease from the date mentioned by the published notice of the Corporation. The 
 amount required for the redemption shall, however, have to be got ready and 
 placed in the hands of the Hongkong and Shanghai Banking Corporation before 
 such redemption is carried out. 
 
 The loan bonds, if redeemed before twenty-five years from the date they 
 were originally issued, shall be paid for with a premium of 2^^ per cent, over 
 their face value {i.e., £102, 10s. will be required to pay for £100), but after 
 twenty-five years from the date of issue to the expiry of the term of the loan 
 the bonds may be redeemed without payment of any premium. If any interest 
 is still due on any of the bonds at the time of redemption, such interest shall 
 have thereupon to be paid in full. As to the net profit certificates, if they are 
 redeemed within the term of their duration they are to be paid for according to 
 their face value, and if such certificates run to the end of their term they become
 
 NUiMBER 1903/2 : JULY 9, 1903 401 
 
 null and void and no price need be paid on them, nor need they be redeemed, 
 but any net profits still due on them shall have to be fully paid up according to 
 their amounts before the same are cancelled. 
 
 Article 21. — If any proceeds of the sale of bonds are lying unused and 
 bearing interest on their deposit whilst the construction of the railway is going 
 on, such interest is to go to the general account of the Chhiese Railway Admin- 
 istration, in order that the Railway Administration may enjoy the full advantage 
 thereof. 
 
 It is also agreed that if the Corporation shall find it necessary, before the 
 sale of any of the bonds, to advance any money for the work, the expense of 
 effecting such advances, together with the interest thereon, not exceeding a charge 
 of 6 per cent, per annum shall be deducted from the interest derived from the 
 above-mentioned unused proceeds of the sale of the bonds, or otherwise to be 
 provided for in the construction accounts. It is further agreed that the proceeds 
 of the first sale of the bonds immediately following any such advance shall be 
 used to pay off the said advances, so as to save the cost of the aforesaid 
 charge. 
 
 Article 22. — If any of the bonds still remain unredeemed, when the fifty 
 years of the term of the loan are about to expire, the Director-General will, 
 within two years preceding the expiry of the said term, negotiate by writing 
 with the Corporation for an extension of the term of the loan; and if six 
 months shall have expired after such negotiations in writing and no definite 
 arrangements shall have been come to, the Chinese Government shall be at liberty 
 to take steps to devise means for procuring elsewhere funds to pay off the loan. 
 and to redeem the bonds and cancel the mortgage. 
 
 Article 23. — The existing Shanghai-Woosung Line (as soon as the price 
 agreed upon is ready to be handed over to the Railway Administration) shall 
 be taken over as part of the Shanghai-Nanking system, and the earnings and 
 administration of this section shall be treated in like manner as the Shanghai- 
 Nanking line. The price of the Shanghai-Woosung Line shall be taken at taels 
 1,000,000 and this amount shall be paid to the Chinese Railway Administration 
 out of the proceeds of the loan. 
 
 Article 24. — Immediately after the signature of the Agreement, and before 
 the issue of any prospectus of the loan to the public, the Director-General shall 
 memorialize the Throne and obtain an Imperial Edict confirming and sanctioning 
 the provisions of this Agreement. The Imperial Edict so received shall then be 
 officially communicated without delay to the British Minister in Peking by the 
 Wai-Wu-Pu. 
 
 Article 25. — This Agreement is executed in quintuplicate in English and 
 Chinese, one copy to be retained by the Railway Administration, one by the 
 Wai-Wu-Pu, one by the Bureau of Railways and Mines at Peking, one by the 
 British Minister in Peking, and one by the Corporation, and should any doubt 
 arise as to the interpretation of the Agreement the English text shall be accepted 
 as the standard. 
 
 Signed at Shanghai by the Contracting Parties this fifteenth day of the
 
 402 CHINA TREATIES AND AGREEMENTS 
 
 intercalary fifth month of the twenty-ninth year of the Emperor Kwang-Hsu, 
 being the ninth day of July nineteen hundred and three of the Western Calendar. 
 
 JARDINE, MATHESON & CO., 
 
 (Signed) David Landale. 
 
 For the HONGKONG & SHANGHAI BANK, 
 
 (Signed) H. M. Bevis, Manager. 
 
 The British & Chinese Corporation, Ltd. 
 Witness to the Signatures of David Landale and H. M. Bevis 
 
 Byron Brenan. 
 
 Note L 
 
 The text of the Preliminary Agreement of May, 1898, is thus given in Rockhill, p. 281 : 
 
 Preliminary Agreement for Shanghai-Nanking Railway. — May 13, 1898. 
 
 "This preliminary agreement is made between Sheng Tajen Director General of the 
 Chinese Imperial Railway Administration acting under authority of the Imperial Chinese 
 Government' of the one part and the British Firm of Jardine, Matheson & Company for 
 themselves and on behalf of the Hongkong and Shanghai Banking Corporation represent- 
 ing as joint Agents a British Syndicate hereinafter called The Syndicate. 
 
 " It is agreed as follows : 
 
 " 1. — The said Director General of the Chinese Railway Administration authorises the 
 Syndicate to issue a sterling loan for an amount not exceeding three million sterling in 
 such manner and on such terms as the -Syndicate may decide, but on terms and condi- 
 tions as between the Syndicate and the said Director General of the Chinese Railway 
 Administration as are hereinafter detailed. 
 
 " The loan shall be issued as soon as possible after the signing of a final agreement 
 and is designed to raise the capital for building [? the railway. — Editor.] which the said 
 Sheng Tajen is authorised by Chinese Imperial Edict to construct from Shanghai to Nanking. 
 
 "2. — The building capital thus provided for is to include interest on itself during the 
 period of construction and the said Chinese Railway Administration undertakes to buy 
 and pay for the land required for the sections now referred to i. e. Shanghai to Nanking 
 in accordance with plans and surveys to be approved by the Agents of the aforesaid 
 Syndicate and the said Director General. 
 
 "3. — The rate of interest for the loan shall be 414% (four and one-half per cent) on 
 the nominal principal issued by the Syndicate and shall be paid by the Syndicate out of 
 the monies so raised for three years from date of issue or up to such nearer date as that 
 on which the lines referred to are completed. After the said three years the said interest 
 shall be provided by the said Railway Administration in Shanghai in accordance with the 
 amounts and dates of a schedule to be. drawn up. 
 
 " 4. — The terms of loan shall be fifty years and commencing two years after com- 
 pletion of the lines referred to or in any case five years after payment of loan in whole 
 or in part repayment of principal shall be made by a sinking fund which shall be paid 
 by the said Chinese Railway Administration in half yearly instalments in accordance with 
 the amounts and dates of the said schedule and the amortization shall not be increased 
 nor reduced nor shall the loan be converted or redeemed by the Chinese Railway Admin- 
 istration or in any other manner without the assent of the said Syndicate provided always 
 that on twelve months notice being given by the said Railway Administration they have 
 the right to redeem the whole loan still outstanding at par at the end of twenty five years 
 from date of the Final Agreement or at 102J/2 after 12yo years. 
 
 " 5. — The total half yearly payment due for amortization and interest shall be paid as 
 aforesaid to the Agents of the said Syndicate in Shanghai fourteen days before the due 
 dates mentioned in the aforesaid schedule in Shanghai Sycee sufficient to meet such pay- 
 ments in sterling in London the rate of exchange for which shall be settled with the 
 Hongkong and Shanghai Bank on the said date of payment. 
 
 " 6. — To provide for the possibility of the revenue of the aforesaid railway at any 
 time being insufficient to cover the sums so due for interest and amortization a clause is 
 to be mutually agreed to as to satisfactory security before signature of the Final 
 Agreement. 
 
 " 7.— The Syndicate shall issue and is hereby authorised to issue to subscribers to the 
 loan now contracted Bonds for the total amount of the loan in pounds sterling in such 
 and for such respective amounts as may appear advisable to the Syndicate which shall
 
 NUMBER 1903/2: JULY 9, 1903: NOTES 403 
 
 arrange the wording in agreement with the Director General of the Chinese Imperial 
 Railway Administration and these Bonds shall be sealed or signed by the Minister for 
 China in London and the Director General of Chinese Railway Administration sybject to 
 Final Agreement. 
 
 " 8. — This loan shall be secured by mortgage now entered into in equity and to be here- 
 after entered into specifically on the railway now being completed between Woosung and 
 Shanghai and also on all lands material rolling stock buildings and property and premises 
 of every description purchased and to be purchased by the said Railway Administration 
 for the railways herein referred to and on the revenue of all descriptions derivable there- 
 from and the Chinese Imperial Railway Administration hereby order and guarantee that 
 no further mortgage or loan shall_ be created or permitted on the said lines and other 
 securities without the written sanction of the aforesaid Syndicate. 
 
 " 9.— The Deed of Agreement shall be executed in quadruplicate and confirmed by 
 Chinese Imperial Edict ; one copy to be retained by the Railway Administration one by 
 the Tsungli yamen one by the British Minister in Peking and one by the Syndicate and 
 should any doubt arise as to the interpretation of this agreement the English text is to 
 be accepted. 
 
 " 10. — All Bonds and Coupons and payments made and received with the service of this 
 loan shall be exempt from Chinese taxes and imposts of all or every description for ever 
 and all material of every kind or description also to be imported into China or to be 
 brought from the Provinces of China to the scene of work free from taxation of every 
 nature whether Imperial Provincial or Municipal during the currency of this loan, and 
 further it is agreed by the Imperial Chinese Government that no tax or impost of any 
 kind shall be enacted or levied on the revenue of the said Railway Administration or on 
 passenger tickets or freight notes thereby. 
 
 " All details necessary for the prospectus and connected with the service of the Bond- 
 holders anent interest or amortization of this loan not herein explicitly provided for shall 
 be left for arrangement by the Syndicate who at its own expense shall issue and are hereby 
 authorised to issue a prospectus of the loan as soon as possible after the signing of a 
 Final Agreement. The Tsungli yamen will instruct the Minister for China in London to 
 give the Syndicate all assistance in any matters where his cooperation may be deemed 
 helpful. 
 
 " 11. — In order to provide for final authority in matters of construction or administra- 
 tion it is agreed that before the Final Agreement is made a clause is to be drafted mutually 
 acceptable to the Agents of the Syndicate and to the Director General of the Chinese 
 Imperial Railway Administration providing for a ' Board of Control ' to be composed of 
 the Director General of the Chinese Imperial Railway Administration as Chairman and 
 a nominee of his together with the representative of the Agents of the Syndicate and 
 the chief Engineer and Secretary hereinafter mentioned. 
 
 " 12. — The Railway Administration shall during the continuance of the loan maintain 
 the railway buildings works rolling stocks and dependencies in good order and condition 
 and shall increase the rolling stock to such extent as the Board of Control during the 
 period of the aforesaid sterling loan may find necessary for the requirements of the 
 traffic. 
 
 " 13. — The residue of the net profits in each year after paying the sum annually due 
 for interest and redemption of the loan and all other sums which may for whatsoever 
 cause be due to the Syndicate shall be divided into five shares one to be paid to or retained 
 by the said Syndicate and the others to be paid or retained by the Railway Administration 
 but after completion of the lines now provided for and on their revenue proving sufficient 
 to meet the interest and redemption of loan, there is to be deducted before division of 
 profits interest at the rate of 6% per annum on the value of land purchased by the Chinese 
 Railway Administration and entered in a Land Register Book and in consideration of this 
 the earnings and administration of the Woosung and Shanghai line are to be treated in 
 like manner as the Nanking section and thus go to the general profit and loss account and 
 the Syndicate are to participate therein as in the Nanking section, subject however to a 
 charge of 6% interest on about Taels 500,000 being cost of the Woosung line. The 
 title deeds for land already or subsequently acquired and hypothecated to this Syndicate 
 shall be delivered to the Agents after entry in the Land Register Book which is to be kept 
 by the account ; the book shall also contain exact entries of the sums paid for such land 
 thus showing the aggregate sum so expended. 
 
 " 14. — The accounts of the Railway Administration shall be kept in Shanghai currency. 
 
 " 15. — The Chief Engineer taking charge of the construction and the working of the 
 railway shall be nominated by the Agents for the Syndicate with the concurrence of the 
 said Director General and shall be paid by the Railway Administration. In like manner a 
 European Secretary and Accountant shall also be appointed and paid ; and the Chief 
 Engineer will subject to the assent of the Board of the Control nominate the entire staff 
 of Railway Officials. 
 
 " 16. — The Syndicate will on completion of a survey report map and estimate (to be 
 approved by the said Director General) now to be commenced by Engineers nominated
 
 404 CHINA TREATIES AND AGREEMENTS 
 
 by them name a definite price at which they engage to take the said loan ; it will be based 
 on a current quotation of 82 dated 24th April but it is necessarily subject to the state of 
 London money market at date of final agreement; due advantage also being given to the 
 Railway Administration in case of improvement. In the event of the price named not being 
 acceptable to the Railway Administration the cost of the survey will be borne by the Syndi- 
 cate but otherwise will form part of the rail construction charges. 
 
 " 17. — The books of the Administration shall be kept both in English and Chinese and 
 all monies provided by the Syndicate shall be dealt with through an account to be kept in 
 Shanghai with the Hongkong & Shanghai Bank; this account will be disbursed for the 
 construction of the lines and for expenses consequent thereon upon the Chief Engineer's 
 certificate. The whole accounts of the Railway Administration shall be subject to the inspec- 
 tion of the Syndicate and it is further agreed that the revenue or earnings of the railway 
 shall be paid into the said account with the Hongkong & Shanghai Bank for final treat- 
 ment but at places where the Hongkong & Shanghai Bank has no Agency and the Imperial 
 Bank of China is established disbursements and receipts will be dealt with through the 
 latter in accordance with the final agreement. 
 
 " 18. — The Agents for the Syndicate will during the currency of this loan be entitled 
 to deduct a commission at the rate of J4% on all remittances for interest or redemption 
 of the aforesaid loan. 
 
 " 19. — To provide for the possibility of the whole amount of the instalments of the 
 loan with accrued interest paid by the Syndicate not being sufficient for the complete con- 
 struction of the lines now undertaken by the Railway Administration, a clause giving satis- 
 factory security is to be mutually agreed to before signature of the final agreement. 
 
 "20. — The provisions of a final agreement shall immediately after signature and before 
 the issue of any prospectus of the loan be confirmed and sanctioned by an Imperial noti- 
 fication which shall be officially communicated to the British Minister by the Tsungli yamen. 
 
 "21. — It is further agreed between the parties to this agreement and accepted by the 
 said Railway Administration that material from Hupeh Works when certified by the Chief 
 Engineer to be equally suitable shall have preference, defects in samples rendered being 
 pointed out by the Chief Engineer in order that suitable material may on the next occa- 
 sion be produced ; and with regard to material to be imported either for the construction 
 of the line or in rolling stock that where specified by the Chief Engineer the name of 
 maker so specified is to be accepted provided the Board of Control concur as to prices, that 
 in cases where no maker is specified one half is at the option of the Syndicate and the 
 other to be by tender; this clause is subject to redrafting for final agreement. 
 
 "22. — It is agreed that if at any time the Chinese Imperial Railway Administration 
 wish to extend their lines that the Syndicate shall have the option of undertaking exten- 
 sions on like terms for Railways designed to run in connection with those herein mentioned 
 subject to Imperial Edict being obtained for such extensions or branches by Memorial 
 of the said Railway Administration and the respective Viceroys and Governors. 
 
 " 23. — Pending completion of the aforesaid survey and the subsequent naming of a 
 definite price of loan the said Imperial Chinese Railway Administration undertake to com- 
 mence or continue no negotiations with other parties for the purposes referred to in this 
 agreement and the Syndicate by their Agents undertake to use promptitude and every 
 exertion to carry out the terms of this preliminary arrangement. 
 
 "24. — The Syndicate being desirous to take up the extension of the said Railways (as 
 mentioned in the above clause) and it being intended to run a line starting from Poo- 
 Kow on the shore opposite to Nanking and ending near Sin Yang Chow where the exten- 
 sion would join the trunk line from Hankow to Peking the Imperial Chinese Railway 
 Administration agrees to memorialize the Throne for permission to allow the Syndicate 
 to carry out the extension. The Syndicate will at once send an Engineer to make the 
 necessary survey and on the estimate being given will make the loan in accordance with 
 the conditions as agreed upon in the above agreement. 
 
 "25. — This preliminary agreement is signed by the Director General of the Imperial 
 Chinese Railway Administration who will in case there should arise local difficulties con- 
 sult with the Viceroy of Nanking and the Governors will in conjunction with the Director 
 General Memorialize the Throne before the Final Agreement is signed. 
 
 " Signed by the contracting parties this twenty third day of the intercalary third 
 month of the twenty fourth vear of the Emperor Kuang Hsu being the thirteenth day of 
 May, 1898 of the Western Calendar." 
 
 Note 2. 
 
 See, in connection with the system of control provided by Article 6, the Working 
 Agreement of April 13, 1908, and the arrangement in connection with the modification of 
 the system of control, of the same date, thus given in Wang, pp. 263 and 271:
 
 NUMBER 1903/2: JULY 9, 1903: NOTES 405 
 
 " IVorking Agreement. 
 
 " Whereas it has been agreed between the parties to the Loan Agreement that for 
 more convenient carrying out of the duties imposed on the Board of Commissioners of 
 supervising the matters referred to in article 6 of the said Agreement the Board of Com- 
 munications shall from time to time nominate a Chinese official of suitable rank and quali- 
 fications as a Chinese member of the Board of Commissioners to be elected (after accept- 
 ance by the Corporation) as the Chairman of the last mentioned Board and under the 
 same Board to supervise the construction and operation of the Railway with the title of 
 Managing Director and Whereas it is expedient that the position of such Managing 
 Director both in relation to the Board of Commissioners and to the Engineer-in-Chief and 
 the Departmental Heads of the Railway Staff should be clearly defined so that questions 
 may not arise in future. 
 
 "Resolved. 
 
 " 1. — That Mr. Chung Mun Yew who has been duly nominated by the Board of Com- 
 munications and accepted by the Corporation be elected Chairman of this Board with the 
 title of Managing Director. 
 
 " 2. — The Managing Director shall on behalf of the Board of Commissioners exercise 
 the authority of the Board in the matter of general supervision of the working of the Rail- 
 way and general control of all employees and otherwise discharge the duties and functions 
 of the said Board in accordance with the terms of the Loan Agreement. 
 
 " 3. — ^The Engineer-in-Chief shall be the General Manager of the Railway and shall 
 be responsible to the Managing Director, as the representative of the Board's authority, 
 for the details of the Railway Management including general control of the various 
 Departments and the appointment of subordinate employees of the rank of foremen and 
 under. With regard to the performance of his duties the General Manager shall in all 
 respects regard the Managing Director as the Representative of the Board's authority and 
 consult him in all matters pertaining to the appointment and dismissal of all employees 
 excepting those below the rank of foreman and/or Assistant Station ]Master. 
 
 " With the written sanction first obtained of the Board the General Manager may 
 delegate to any Head of a Department such powers as may be reasonably necessary for 
 the effective control of his Department. 
 
 " 4. — The following shall rank as Heads of Departments : — 
 
 The Traffic Manager (Mr. Pope) 
 
 The Secretary and Assistant General Manager 
 
 The Senior Engineer of the Engineering Department 
 
 The Chief Accountant 
 
 The Locomotive Superintendent 
 
 The Chief Storekeeper 
 
 The Medical Officer 
 
 " All Heads of Departments shall furnish monthly reports to the Managing Director 
 and in particular the Chief Accountant shall furnish a monthly report and statement of 
 accounts in which Capital and Revenue Accounts shall be clearly distinguished and in 
 which all items of income and expenditure shall be properly allocated under various head- 
 ings. Heads of Departments shall furnish to the Managing Director, through the General 
 Manager, whenever required, such special information as he may call for in regard to the 
 condition and working of the various offices or Departments, it being understood that 
 the Accountant's Department reports direct to the Managing Director. 
 
 " 5. — The Managing Director shall cause the monthly reports of the Heads of Depart- 
 ments to be circulated with as little delay as possible by the Secretary to all the members 
 of the Board of Commissioners. 
 
 " 6. — All indents for materials and goods of foreign origin whether purchased locally 
 or from abroad shall be signed by the Managing Director and countersigned by the Chief 
 Accountant. In case of special emergency where goods or materials are required to be 
 purchased locally, such purchase shall immediately be reported for the information and 
 approval of the Managing Director. The Managing Director shall cause a monthly state- 
 ment of such indents to be circulated to all the members of the Board of Commissioners. 
 It is understood that Commission is chargeable by the Corporation as Agents of the Rail- 
 way on all purchases of materials of foreign origin except urgent local purchases involv- 
 ing an expenditure of not more than $2,500 for any one order, it being understood that 
 such local purchases shall always be economically advantageous to the Railway and that 
 for amounts exceeding $2,500 tenders shall always be called for through the Agency of 
 the Corporation. 
 
 "7. — All cheques shall be signed by the Managing Director and countersigned by the 
 Chief Accountant. 
 
 " 8. — All transfers of Loan funds from London shall be made in accordance with exist- 
 ing procedures, that is to say, that the requisition for transfer shall be signed by the
 
 406 CHINA TREATIES AND AGREEMENTS 
 
 Managing Director or in his absence by the other Chinese member of the Board of Com- 
 missioners, and by one foreign member. 
 
 " 9. — The Managing Director shall whenever necessary consult the general Manager 
 with regard to the affairs of the Railway and the Heads of Departments with regard to 
 matters concerning their Departments ; and the General Manager shall keep the Manag- 
 ing Director fully posted regarding the working of the Railway, supplying him with dupli- 
 cate copies, if required by him, of all reports sent in to him [the General Manager] from 
 all the Stations, shops, or offices, excepting such reports as relate purely to the technical 
 working of the several Departments. 
 
 " 10. — The General Manager shall at such time or times as may be mutually agreed 
 submit to the Managing Director a budget showing proposed expenditure (for new work, 
 alteration, repairs, etc.^. Such budget shall ordinarily cover a period of 6 months or 
 one year whichever period shall be found to be most convenient. The Managing Director 
 shall as soon as possible after receipt of the Budget consider and approve the same with 
 such alterations as he shall think proper. No item shall be added to or omitted from the 
 Budget by the Managing Director except after full discussion with the General Manager. 
 It will be the duty of the General Manager to see that the Budget as approved by the 
 Managing Director is strictly adhered to and that no additional expenditure is made or 
 liability incurred without the authority of the Managing Director. 
 
 " 11. — The Board of Commissioners shall ordinarily meet once in each calendar year. 
 Such meeting shall take place as soon as possible after the conclusion of each financial year 
 and the Board shall then receive and consider the Report and accounts for such year. 
 Any member may call a special meeting of the Board Provided that the object of such 
 meeting is notified to the members of the Board at least one week in advance and the 
 consent of two members obtained for calling such meeting. The Board may at any time 
 call upon the Managing Director to report to them on the affairs of the Railway. 
 
 " 12. — Accounts to be annually audited and report and accounts to be published in 
 English and Chinese. 
 
 " 13. — These provisions are to be construed with Article 6 of the Loan Agreement and 
 are only effective so far as they are consistent therewith. Should they not prove satis- 
 factory in securing the efficient control of the Railway, they shall be subject to revision 
 and amendment hereafter. 
 
 " April 13th, 1908." 
 
 " Arrangement in connection with the modification of the system of control as agreed 
 upon in consultation between the Deputy Director General (Mr. Chung Mun Yew) 
 and Mr. J. O. Bland, Representative of the British and Chinese Corporation. 
 
 " In pursuance of the Resolutions adopted by the Board of Commissioners at their 
 meeting held on April 13th, 1908, whereby the control and supervision of the working of 
 the Railway becomes delegated by the Board to its Chairman, Mr. Chung Mun Yew, with 
 the title of Managing Director, it has been agreed that Mr. ,A. W. U. Pope, as Engineer- 
 in-Chief and General Manager shall be immediately responsible to the Managing Director 
 (as representative of the Board's authority) for the details of the Railway's technical and 
 General management ; as the principal officer of the Railway Staff, he shall be responsible 
 for the efficiency and general working of the Railway administration, and shall perform 
 his duties under the direction of the Managing Director, in accordance with the arrange- 
 ments hereby laid down and approved by the Board of Commissioners. For the purpose 
 of effective management of the Railway, certain powers and discretions are delegated to 
 the General Manager, and thereafter in turn to Heads of Departments, as hereunder speci- 
 fied, subject to modification or rescindment hereafter in case of need, by the Managing 
 Director and/or the Board of Corqmissioners. 
 
 "The Heads of Departments of Railway Administration are as follows: — 
 
 The Secretary and Assistant General Manager. 
 
 The Engineer in Charge of Maintenance. 
 
 The Chief Accountant. 
 
 The Locomotive Superintendent. 
 
 The Traffic Superintendent. 
 
 The Medical Officer. 
 
 The Chief Storekeeper. 
 
 " The Heads of Departments shall prepare monthly Reports on the Working of their 
 respective offices. These Reports, with the exception of the Chief Accountant's shall be 
 forwarded to the General Manager for transmission to the Managing Director, who will 
 cause copies to be forwarded without delay by the Secretary to the members of the Board 
 of Commissioners. 
 
 " In addition to these regular monthly Reports, Heads of Departments shall furnish 
 special reports or information on the working of their offices whenever called for by the 
 Managing Director.
 
 NUMBER 1903/2 : JULY 9, 1903 : NOTES 407 
 
 " The Chief Accountant's monthly Report shall contain a clear and complete statement 
 of the Railway's accounts, in which Capital and Revenue accounts shall be clearly distin- 
 guished and in which all items of income and expenditure shall be properly allocated under 
 their various headings; this report shall be transmitted through the Secretary for the 
 information of the Managing Director, the Board of Commissioners, and the General 
 Manager. 
 
 " As a matter of general practice the instructions of the Managing Director (as rep- 
 resentative of the Board of Commissioners) will be transmitted to the Heads of Depart- 
 ments (excepting the Chief Accountant) through the General Manager, who will forward 
 all important orders to be recorded and circulated by the Secretary in a general Order 
 book. 
 
 " The General Rules of the Railway Administration in regard to leave of absence, medi- 
 cal assistance, free passes etc., will be determined by the Managing Director and General 
 Manager in consultation, and subject to modification in case of need. Whenever employees 
 of the Railway have any complaint or other official communication to make, they shall 
 submit the same in writing to the Head of the Department concerned, by whom it shall 
 be forwarded, with all necessary information to the General Manager, for reference to 
 the Managing Director and (in case of need) to the Board of Commissioners. 
 
 "No Head of Department shall incur any expenditure on Railway account except such 
 as is warranted by a standing authority, it will be the duty of the General Manager to see 
 that all details of work sanctioned in the Annual Estimates are carried out by the various 
 executive Department in a proper and efficient manner, and that the Estimates are not ex- 
 ceeded, under their general headings, without the authority of the Managing Director. 
 
 " Heads of Departments are authorised to appoint, promote, dismiss and reduce subordi- 
 nates of the staff of their respective offices whose salaries do not exceed $50 per mensem, 
 subject always to the financial exigencies of che Estimates, and the standing Rules of the 
 Railway, as from time to time authorised. All appointments, promotions, dismissals, and 
 reductions of employees drawing over $25 per mensem must be recorded in the Depart- 
 ment's monthly Report. In the case of important Stations, the appointment, promotion, 
 reduction or transfer of Station Master are to be made after consultation with the Managing 
 Director and in accordance with the latter portion of Article 9 of the Board's Resolutions 
 of April 13th, 1908. 
 
 " Heads of Departments are authorised to grant short leave of .absence to aM subordinate 
 employees in their respective Departments subject to the leave regulations of the Railway, 
 recording in the monthly Report all leave granted to employees drawing over $25 per 
 mensem. 
 
 " Heads of Departments are authorised to issue cheque passes to all employees of their 
 respective Departments and to their families in accordance with the Free Pass Regulations 
 actually in force. 
 
 " Heads of Departments may draw stores required for the use of their offices etc., 
 up to limits sanctioned in working Estimates, but no stores may be ordered or purchased 
 by any Department unless specially authorised. 
 
 "The special duties of Heads of Departments as at present approved and subject to 
 modification hereafter by the Managing Director and/or Board of Commissioners are as 
 follows : — 
 
 " 1. Duties of Secretary and Assistant General Manager. 
 
 " He shall conduct the general correspondence of the Railway Head Office, keep minutes 
 and records of the official meeting of the Railway Administration : transmit the Chief Ac- 
 countant's monthly Report and other Statements to the Managing Director and Board of 
 Commissioners and General Manager. 
 
 " He shall keep in constant communication with the General Manager and shall assist 
 him in promoting the mutual dependence inter-communication and harmonious working of 
 the various Departments of the Railway. He shall act for the General Manager in his 
 absence. 
 
 "Duties of Engineer in Charge of Maintenance. 
 
 " In matters of general administration and policy, the Engineer in Charge of IMain- 
 tenance will receive the instructions of the Managing Director through the General Manager. 
 He shall report through the General Manager in writing whenever necessary, on all matters 
 affecting the proper maintenance of the Railway and shall be responsible for the same 
 and for the discip^ne and eff^ective organisation of the work of his Department. He shall 
 certify annually in the Railway's Published Statement of Accounts as to the upkeep and 
 condition of the line. 
 
 "Duties of Chief Accountant. 
 " The Chief Accountant's duties involving dual responsibility to the Chinese Govern- 
 ment and to the holders of the Railway's bonds and profit certificates, it shall be open to him, 
 while showing all due deference to the wishes of the Managing Director and giving effect 
 to the latter's financial policy as laid down in the Annual Estimates, to report officially to
 
 408 CHINA TREATIES AND AGREEMENTS 
 
 the ^Managing Director and to the Board of Commissioners in all cases where he considers 
 that the action taken or policy contemplated may prejudice the rights and the interests of the 
 holders of bonds and profit certificates. 
 
 " He shall countersign all cheques for expenditure on Railway account, as well as all 
 indents for materials of foreign origin, whether purchased locally or from abroad, and shall 
 be responsible for the monthly statement of such indents, to be circulated by the Secre- 
 tary to the Board of Commissioners. 
 
 " He shall prepare for audit and publication the Annual Report of the Railway's receipts 
 and expenditure, and be responsible for the accuracy of the same. 
 
 " The Duties of Medical Officer, Traffic Superintendent and Chief Storekeeper 
 " Will be decided upon in due course by the Managing Director in consultation with 
 the General Manager, and submitted for the information of the Board of Commissioners." 
 
 Note 3. 
 
 In connection with the purchase of lands under the provisions of this Article, see the 
 following letter of agreement, addressed by the British and Chinese Corporation to the 
 Minister of Communications, and accepted by the latter, October 30, 1913, as printed in 
 Wang, p. 279 : 
 
 Letter of Agreement regarding Purchase of Lands for Shanghai-Nanking Railway, — 
 
 October 30, 1913. 
 
 " Peking, 30th October, 1913. 
 " The Honourable, 
 
 " Mr. Chou Tzu Chi, 
 
 " Minister of Communications, 
 " Peking. 
 •' Sir, 
 
 " Whereas, by the Shanghai-Nanking Railway Loan Agreement of July 9th 1903 it 
 was provided, in respect to the purchase of land, under Article 7, that the cost of the land 
 required in accordance with the plans of the Engineer-in-Chief and approved by the 
 Director-General, should not exceed £150,000; 
 
 " and whereas it was further provided that an additional issue of bonds should be 
 made in order to repay the sums spent in the purchase of land and that such bonds should 
 be similar to the bonds of the Shanghai-Nanking Railway and have the same guarantee and 
 same mortgage security and same treatment ; 
 
 " and whereas the land purchased within the Engineer-in-Chief's survey was paid for 
 from construction account, and it is now desired to refund to construction account the sum 
 thus expended by the issue of land bonds ; 
 
 " I now have the honour to state the arrangements and conditions which have been 
 agreed upon as follows : — 
 
 " 1. — The Ministry of Communications (hereinafter called 'the Ministry') acting on 
 behalf of the Chinese Government, authorises the British and Chinese Corporation Limited 
 (hereinafter called 'the Corporation') to prepare Shanghai-Nanking Railway Land Bonds 
 to a total nominal value of £150,000 in such form and for such amounts as the Corporation 
 may decide in consultation with the Chinese Minister in London, by whom the bonds shall be 
 signed and sealed in the usual manner as a proof that their sale is duly authorised by and 
 binding upon the Chinese Government. 
 
 '■ 2. — The Corporation undertakes to purchase the aforesaid Land Bonds at the price 
 of £92 for each £100 bond. 
 
 " 3. — The security for the land bonds shall in every respect be the same as for the 
 Shanghai-Nanking Railway Loan Bonds, as provided in the Loan Agreement of July 9th 1903. 
 
 "4. — Interest on the land bonds shall be at the rate of six per cent (6%) per annum 
 payable half yearly on the dates on which the service of the Shanghai-Nanking Railway Loan 
 is met, and in the same manner. 
 
 " 5. — The bonds shall be redeemable at par at any time on giving six months notice, as 
 provided in the Shanghai-Nanking Railway Loan Agreement, and subject to this provision 
 shall at the latest be redeemed at par by the Ministry in five equal annual instalments com- 
 mencing at the end of the sixth annual period, namely December 1st 1919, the amount re- 
 quired to be provided 14 days before the due date in accordance with Article 15 of the said 
 Loan Agreement. 
 
 "6. — In the event of any bond or bonds being lost stolen or destroyed the procedure 
 as laid down in the final paragraph of Article 1 of the Shanghai-Nanking Railway Loan 
 Agreement shall be followed. 
 
 " 7. — The funds furnished by the Corporation against these bonds shall be placed to the
 
 NUMBER 1903/3: AUGUST 7, 1903 409 
 
 credit of ' the Shanghai-Nanking Railway Improvements Account ' at the Hongkong and 
 Shanghai Banking Corporation London and shall thereupon be available to be drawn upon as 
 required by the administration of the railway for the purchase of additional rolling-stock and 
 for defraying the cost of such other improvements to the railway as may be decided upon 
 by the Administration, under the approval of the Ministry, in order to increase the earning 
 capacity of the line. Interest at the rate of three per cent (3%) per annum will be allowed 
 by the Hongkong and Shanghai Banking Corporation London on the credit balance of the 
 said account. 
 
 " 8. — The Ministry undertakes to make all necessary arrangements for authorizing the 
 Chinese Minister in London to seal the bonds without delay, and will transmit a copy of this 
 letter of agreement to the Ministry of Foreign Affairs for communication to the Minister for 
 Great Britain in Peking. 
 
 " 9.— This Letter of Agreement is in duplicate in English and Chinese and it is under- 
 stood that in case of any doubt arising regarding the interpretation of its terms the English 
 text shall rule. 
 
 " I have the honour to request that you will be good enough to signify your accept- 
 ance and confirmation of the arrangements and conditions herein contained by affixing 
 your signature to the statement to this effect below, retaining one copy of the letter so 
 executed for your files and returning the other to the undersigned. 
 
 " I have the honour to be, 
 " Sir, 
 " Your obedient servant, 
 
 " (Signed) S. F. IMavers, 
 " For the British and Chinese Corporation Limited. 
 "I hereby accept and confirm on behalf of the Chinese Government the arrangements 
 and conditions herein contained. 
 
 " (Signed) Chou Tzu Chi, 
 
 "Minister of Communications." 
 
 NUMBER 1903/3. 
 
 GREAT BRITAIN AND ITALY. 
 
 Exchange of Notes respecting the Reciprocal Protection of Trademarks in 
 
 China^— August 7, 1903. 
 
 (1). — M. Carignani to the Marquess of Lansdowne. 
 
 (Translation.) 
 
 , , T Italian Embassy, London, July 30, 1903. 
 
 My Lord, - > .^ ' 
 
 The Government of His Majesty the King, my august Sovereign, being 
 
 desirous of coming to an arrangement with the other Governments, with a view 
 
 to secure the reciprocal protection of trade-marks in China, have now instructed 
 
 me to bring the following to the knowledge of your Lordship : — 
 
 1. In virtue of the civil and penal jurisdiction which is intrusted to the Con- 
 suls and Consular Tribunals of His Majesty the King of Italy, and which they 
 exercise in China, they are competent to take cognizance of all claims which may 
 be presented to them respecting the counterfeiting of trade-marks by Italian 
 subjects. 
 
 2. So any claim which English manufacturers may have to present to them 
 
 * Translation and text, as printed in Hertslet, p. 599.
 
 410 CHINA TREATIES AND AGREEMENTS 
 
 in order to obtain protection for trade-marks, duly registered in the Kingdom 
 of Italy, as against Italian subjects, shall henceforward be adjudicated, in the 
 first instance, by the Consular Tribunal, and, in the last instance, by the Court 
 of Appeal at Ancona. 
 
 3. The right of property in trade-marks is regulated in Italy by the Law of 
 the 30th August, 1868. 
 
 I have the honour to request your Lordship to be good enough to take note 
 of this declaration, and to inform me whether Italian subjects will be able to in- 
 voke the same legal protection in China, on the part of the English Consular 
 authorities, in all that concerns their property in trade-marks duly registered in 
 Great Britain. 
 
 I have, &c., 
 
 Carignani. 
 
 (2). — The Marquess of Lansdowne to M. Carignani. 
 
 Foreign Office, August 7, 1903. 
 oIR, 
 
 I have the honour to acknowledge the receipt of your note of the 30th 
 ultimo, informing me of the desire of the Italian Government to come to an 
 arrangement with His Majesty's Government for the mutual protection of 
 British and Italian trade-marks in China, and stating that any claim which Eng- 
 lish manufacturers may have to present to His Italian Majesty's Consuls and 
 Consular Tribunals in China, in order to obtain protection for trade-marks, 
 duly registered in the Kingdom of Italy, as against Italian subjects, will hence- 
 forward be adjudicated, in the first instance, by the Consular Tribunals, and, in 
 the last instance, by the Court of Appeal at Ancona. 
 
 In reply to your inquiry whether Italian subjects will be able to invoke 
 the same legal protection in China, on the part of the English Consular authori- 
 ties, in all that concerns their property in trade-marks duly registered in Great 
 Britain, I have the honour to state that under the Order in Council of the 2nd 
 February, 1899,t it is open to an Italian whose trade-mark has been infringed 
 by a British subject in China to take proceedings against the latter in the British 
 Court, provided that the consent in writing of His Majesty's Minister or the 
 Charge d'Affaires be obtained to the prosecution. Such consent, however, may 
 be withheld if His Majesty's Minister or Charge d'Affaires is not satisfied that 
 effectual provision exists for the punishment in the Italian Consular Court of 
 Italian subjects infringing British trade-marks. 
 
 A copy of your note will be sent to His Majesty's Charge d'Affaires at 
 Peking, and Mr. Townley's attention will be called to the statements contained 
 in it as to the competence in such matters of the Italian Consular Courts. 
 
 I have, &c., 
 Lansdowne. 
 
 fFor the relevant articles of the Order in Council of February 11, 1907, replacing the 
 provisions of the Order in Council here cited, see note to the Anglo-American Arrangement 
 concerning trade-marks in China (No. 1905/4), at page 505, post.
 
 NUMBER 1903/4: OCTOBER 8, 1903 411 
 
 NUMBER 1903/4. 
 
 JAPAN AND CHINA. 
 
 Supplementary Treaty of commerce and navigation (ztith annexes).'^ — 
 
 October 8, 1903. 
 
 His Majesty the Emperor of Japan and His Majesty the Emperor of China, 
 in order to give full effect to the provisions of Article XI of the Final Protocol 
 signed at Peking on the seventh day of the ninth month of the thirty-fourth year 
 of Meiji, corresponding to the twenty-fifth day of the seventh moon of the 
 twenty-seventh year of Kuang-hsu, have resolved to conclude a Supplementary 
 Treaty of Commerce and Navigation, designed to facilitate and promote the com- 
 mercial relations between Japan and China, and have for that purpose named as 
 Their Plenipotentiaries, that is to say: 
 
 His Majesty the Emperor of Japan, Hioki Eki, Jugoi, Fifth Class of the 
 Imperial Order of the Rising Sun, First Secretary of Legation, and Odagiri 
 Masnoske, Shorokui, Fifth Class of the Imperial Order of the Rising Sun, 
 Consul-General ; 
 
 And His Majesty the Emperor of China, Lii Hai-huan, President of the 
 Board of Public Works, Sheng Hsuan-huai, Junior Guardian of the Heir Appar- 
 ent, formerly Senior Vice-President of the Board of Public Works, and Wu T'ing- 
 fang. Senior Vice-President of the Board of Commerce: 
 
 Who, after having communicated to each other their Full Powers found to be 
 in good and due form, have agreed upon and concluded the following Articles : — 
 
 Article I.f — Japan agrees to surtax on tariff duties, production, consump- 
 tion, and excise taxes, when accepted by all other Powers. — Whereas China, 
 with the object of reforming its fiscal system, proposes to levy a surtax in excess 
 of the tariff rates on all goods passing through the Custom Houses, whether 
 maritime or inland and frontier, in order to compensate in a measure for the 
 loss incurred by the complete abolition of likin, Japan consents to pay the same 
 surtax as is agreed upon between China and all the Treaty Powers. With regard 
 to the production tax, consumption tax and excise, and the taxes on native opium 
 and salt, leviable by China, Japan also consents to accept the same arrangements 
 as are agreed upon between all the Treaty Powers and China. It is understood 
 however that the commerce, rights and privileges of Japan shall not, on account 
 of the above, be placed at any disadvantage as compared with the commerce, rights 
 and privileges of other Powers. 
 
 Article 11.% — Improvement of navigation on upper Yang-tze River. — The 
 
 *Text as printed in Rockhill, p. 121. Printed also in Customs, Vol. II, p. 617; Traites 
 et Conventions, p. 147; Hertslct, p. 383; Recueil, p. 683. 
 
 In connection with this treaty, see Japanese treaty of July 21, 1896 (No. 1896/4, ante), 
 and protocol of October 19, 1896 (No. 1896/6, ante) : see also British commercial treaty 
 of September 5, 1902 (No. 1902/7, ante), and American commercial treaty of October 8, 
 1903 (No. 1903/5, post). 
 
 t See British Treaty of 1902, Art. VIII, and U. S. Treaty of 1903, Art. IV. 
 
 t See British Treaty of 1902, Art. V, par. 2.
 
 412 CHINA TREATIES AND AGREEMENTS 
 
 Chinese Government agree to permit Japanese steamship-owners to erect, at 
 their own expense, apphances for hauling through the rapids of that part of the 
 Yang-tze-kiang between Ichang and Chungking. But as the interests of the 
 population of the provinces of Szechuen, Hunan and Hupeh are involved, it is 
 therefore necessary that the approval of the Imperial Maritime Customs be 
 obtained before such appliances may be so erected. 
 
 These appliances, which shall be at the disposal of all vessels both steamers 
 and junks, shall not obstruct the waterway nor interfere with the free passage of 
 junks or of persons on the banks of the river. Such appliances shall be subject 
 to special regulations to be drawn up by the Imperial Maritime Customs. 
 
 Article III.§ — Navigation of inland waters. — The Chinese Government 
 agree that any Japanese steamer capable of navigating the inland waterways, upon 
 reporting at the Imperial Maritime Customs, may proceed for the purpose of 
 trade from a treaty port to places inland, so reported, on complying with the 
 Original and Supplementary Regulations for Steam Navigation Inland. 
 
 Article IV. || — Partnerships of Chinese and Japanese. Liabilities. — In 
 case Chinese subjects conjointly with Japanese subjects organize a partnership 
 or company for a legitimate purpose, they shall equitably share the profits and 
 losses with all the members according to the termb of the agreement or memo- 
 randum and articles of association and the regulations framed thereunder, and they 
 shall be liable to the fulfilment of the obligations imposed by the said agreement or 
 memorandum and articles of association and the regulations framed thereunder 
 as accepted by them and as interpreted by Japanese Courts. Should they fail to 
 fulfil the obligations so imposed and legal action be taken against them in conse- 
 quence, Chinese Courts shall at once enforce fulfilment of such obligations. 
 
 It is understood that in case Japanese subjects conjointly with Chinese 
 subjects organize a partnership or company, they shall also equitably share the 
 profits and losses with all the members ^iccording to the terms of the agreement 
 or memorandum and articles of association and the regulations framed there- 
 under. Should such Japanese subjects fail to fulfil any of the obligations imposed 
 by the said agreement or memorandum and articles of association or by the regu- 
 lations framed thereunder, Japanese Courts shall in like manner at once enforce 
 fulfilment of such obligations by them. 
 
 Article V.^ — Protection of trade-marks. — The Chinese Government agree 
 to make and faithfully enforce such regulations as are necessary for preventing 
 Chinese subjects from infringing registered trade-marks held by Japanese subjects. 
 
 Protection of copyrights. — The Chinese Government likewise agree to make 
 such regulations as are necessary for affording protection to registered copyrights 
 held by Japanese subjects in the books, pamphlets, maps and charts written in 
 the Chinese language and specially prepared for the use of Chinese people. 
 
 Registration of trade-marks and copyrights. — It is further agreed that the 
 Chinese Government shall establish registration offices where foreign trade-marks 
 and copyrights, upon application for the protection of the Chinese Government, 
 
 § See British Treaty of 1902, Art. X, par. 1. 
 
 II See British Treaty of 1902, Art. IV. 
 
 If See British Treaty of 1902, Art. VII, and U. S. Treaty of 1903, Art. IX, and Art. XI.
 
 NUMBER 1903/4: OCTOBER 8, 1903 413 
 
 shall be registered in accordance with the provisions of the regulations to be 
 hereafter framed by the Chinese Government for the purpose of protecting trade- 
 marks and copyrights. 
 
 It is understood that Chinese trade-marks and copyrights properly registered 
 according to the provisions of the laws and regulations of Japan will receive 
 similar protection against infringement in Japan. 
 
 This Article shall not be held to protect against due process of law any 
 Japanese or Chinese subject who may be the author, proprietor or seller of any 
 publication calculated to injure the well-being of China. 
 
 Article VI.* — National coinage in China. — China agrees to establish itself, 
 as soon as possible, a system of uniform national coinage and provide for a uni- 
 form national currency which shall be freely used as legal tender in payment of 
 all duties, taxes and other obligations by Japanese subjects as well as by Chinese 
 subjects in the Chinese Empire. It is understood, however, that all Customs 
 duties shall continue to be calculated and paid on the basis of the Haikwan tael. 
 
 Article VII.— Uniform standard of weights and measures in China. — As 
 the weights and measures used by the mercantile and other classes for general 
 and commercial purposes in the different provinces of China vary and do not 
 accord with the standards fixed by the Imperial Government Boards, thus result- 
 ing in detriment to the trade of Chinese and foreigners, the Governors General 
 and Governors of all the provinces, after careful inquiry into existing conditions, 
 shall consult together and fix upon uniform standards which, after a Memorial 
 to the Throne for sanction, shall be adopted and used in all transactions by officials 
 and people throughout all the Empire. These standards shall be first used in the 
 places opened to foreign trade and gradually extended to inland places. Any 
 differences resulting from divergence between the new weights and measures 
 and those now in vogue shall be equitably settled, whether by way of increase 
 or decrease, according to the amount of such difference. 
 
 Article VIILf — Regulations for steam navigation inland amended. — The 
 Regulations for Steam Navigation Inland of the fifth moon of the twenty-fourth 
 year of Kuang-hsii and the Supplementary Rules of the seventh moon of the 
 same year having been found in some respects inconvenient in working, the 
 Chinese Government hereby agree to amend them and to annex such new Rules 
 to this Treaty. 
 
 These Rules shall remain in force until altered by mutual consent. 
 
 Article IX. — Confirming all treaties not hereby modified. Most-favored- 
 nation treatment. — The provisions of all treaties and engagements now subsisting 
 between Japan and China, in so far as they are not modified or repealed by this 
 Act, are hereby confirmed ; and it is hereby expressly stipulated in addition that 
 the Japanese Government, Officers. Subjects. Commerce, Navigation, Shipping, 
 Industries and Property of all kinds shall be allowed free and full participation 
 in all privileges, immunities and advantages which have been or may hereafter be 
 granted by His Majesty the Emperor of China or by the Chinese Government or 
 by the Provincial or Local Administrations of China to the Government, Officers, 
 
 * See British Treaty of 1902, Art. II, and U. S. Treaty of 1903, Art. XIII. 
 t See British Treaty of 1902, Art. X, and U. S. Treaty of 1903, Art XII.
 
 414 CHINA TREATIES AND AGREEMENTS 
 
 Subjects, Commerce, Navigation, Shipping, Industries or Property of any other 
 nation. 
 
 The Japanese Government will do its utmost to secure to Chinese Officers 
 and Subjects resident in Japan the most favourable treatment compatible with the 
 laws and regulations of the Empire. 
 
 Article X4 — Peking to be opened to international residence and trade. — 
 The High Contracting Parties hereto agree that, in case of and after the complete 
 withdrawal of the foreign troops stationed in the province of Chihli and of the 
 Legation guards, a place of international residence and trade in Peking will be 
 forthwith opened by China itself. The detailed regulations relating thereto shall 
 be settled in due time after consultation. 
 
 Ch'ang-sha to be opened to foreign trade. — The Chinese Government agree 
 to open to foreign trade, within six months from the exchange of the Ratifications 
 of this Treaty, Ch'angsha-fu in the province of Hunan on the same footing as the 
 ports already opened to foreign trade. Foreigners residing in this open port are 
 to observe the Municipal and Police Regulations on the same footing as Chinese 
 residents, and they are not to be entitled to establish a Municipality and Police 
 of their own within the limits of this treaty port, except with the consent of the 
 Chinese authorities. 
 
 Mukden and Tatungkow opened to foreign trade. — The Chinese Govern- 
 ment agree that, upon the exchange of the Ratifications of this Treaty, Mukden 
 and Tatungkow, both in the province of Shengking, will be opened by China 
 itself as places of international residence and trade. The selection of suitable 
 localities to be set apart for international use and occupation and the regulations 
 for these places set apart for foreign residence and trade shall be agreed upon 
 by the Governments of Japan and China after consultation together. 
 
 Article XI. § — Reform of judicial system of China. Exterritoriality to 
 terminate. — The Government of China having expressed a strong desire to reform 
 its judicial system and to bring it into accord with that of Japan and Western 
 nations, Japan agrees to give every assistance to such reform, and will also be 
 prepared to relinquish its extra-territorial rights when satisfied that the state 
 of the Chinese laws, the arrangements for their administration and other con- 
 siderations warrant it in so doing. 
 
 Article XII. — English text authoritative. — The present Treaty is signed 
 in the Japanese, Chinese and English languages. In order, however, to prevent 
 future discussions, the Plenipotentiaries of the High Contracting Parties have 
 agreed that in case of any divergence in the interpretation between the Japanese 
 and Chinese Texts of the Treaty, the difference shall be settled by reference to 
 the English Text. 
 
 Article XIII. — The present Treaty shall be ratified by His Majesty the 
 
 Emperor of Japan and His Majesty the Emperor of China, and the Ratifications 
 
 thereof shall be exchanged at Peking as soon as possible and not later than six 
 
 months from the present date.|| 
 
 i See British Treaty of 1902, Art. VIII, sec. 12, and U. S. Treaty of 1903, Art. XII, 
 par. 3. On first paragraph, see Annex 6 of present treaty. 
 
 § See British Treaty of 1902, Art. XII, and U. S. Treaty of 1903, Art. XV. 
 II Ratifications were exchanged on January 11, 1904.
 
 NUMBER 1903/4: OCTOBER 8, 1903: ANNEXES 415 
 
 In witness whereof the respective Plenipotentiaries have signed the same and 
 have affixed thereto the seals of their arms. 
 
 Done at Shanghai this eighth day of the tenth month of the thirty-six year 
 of Meiji, corresponding to the eighteenth day of the eighth moon of the twenty- 
 ninth year of Kuang-hsii. [l. s.] Hioki Eki. 
 
 [l. s.] Odagiri Masnoske. 
 (Signature of His Excellency Lii Hai-huan.) 
 (Signature of His Excellency Sheng Hsuan-huai.) 
 (Signature of His Excellency Wu T'ing-fang.) 
 
 Annex 1 
 
 INLAND WATERS STEAM NAVIGATION. 
 
 Additional Rules. 
 
 1. — Japanese steamship-owners are at liberty to lease warehouses and jetties 
 on the banks of waterways from Chinese subjects for a term not exceeding 
 twenty-five years, with option of renewal on terms to be mutually arranged. 
 In cases where Japanese merchants are unable to secure warehouses and jetties 
 from Chinese subjects on satisfactory terms, the local officials, after consultation 
 with the Governor or Governor General or Minister of Commerce, shall arrange 
 to provide these on renewable lease, as above mentioned, at current equitable 
 rates. 
 
 2. — Jetties shall only be erected in such positions that they will not obstruct 
 the inland waterway or interfere with navigation, and with the sanction of the 
 nearest Commissioner of Customs ; such sanction, however, shall not be arbitrarily 
 withheld. 
 
 3. — Japanese merchants shall pay taxes and contributions on these ware- 
 houses and jetties on the same footing as Chinese proprietors of similar properties 
 in the neighbourhood. Japanese merchants may only employ Chinese agents 
 and staff to reside in warehouses so leased at places touched at by steamers en- 
 gaged in inland traffic to carry on their business ; but Japanese merchants may 
 visit these places from time to time to look after their affairs. The existing 
 rights of Chinese jurisdiction over Chinese subjects shall not by reason of this 
 clause be diminished or interfered with in any way. 
 
 4. — Steam vessels navigating the inland waterways of China shall be re- 
 sponsible for loss caused to riparian proprietors by damage which they may do to 
 the banks or works on them, and for the loss which may be caused by such 
 damage. 
 
 In the event of China desiring to prohibit the use of some particular shallow 
 waterway by launches, because there is reason to fear that the use of it by them 
 would be likely to injure the banks and cause damage to the adjoining country, 
 the Japanese authorities, when appealed to, shall, if satisfied of the validity of the 
 objection, prohibit the use of that waterway by Japanese launches, provided that 
 Chinese launches are also prohibited from using it.
 
 416 CHINA TREATIES AND AGREEMENTS 
 
 Both Foreign and Chinese launches are prohibited from crossing dams and 
 weirs at present in existence on inland waterways where they are likely to cause 
 injury to such works, which would be detrimental to the water service of the 
 local people. 
 
 5. — The main object of the Japanese Government in desiring to see the 
 inland waterways of China opened to steam navigation being to afford facilities 
 for the rapid transport of both foreign and native merchandise, they undertake 
 to offer no impediment to the transfer to a Chinese company and the Chinese 
 flag of any Japanese steamer which may now or hereafter be employed on the 
 inland waters of China, should the owner be willing to make the transfer. 
 
 In the event of a Chinese company registered under Chinese law being 
 formed to run steamers on the inland waters of China, the fact of Japanese 
 subjects holding shares in such a company shall not entitle the steamers to fly 
 the Japanese flag. 
 
 6. — Registered steamers and their tows are forbidden, just as junks have 
 always been forbidden, to carry contraband goods. Infraction of this rule will 
 entail the penalties prescribed in the treaties for such an offence, and cancellation 
 of the Inland Waters Navigation Certificate carried by the vessels, which will 
 be prohibited from thereafter plying on inland waters. 
 
 7. — As it is desirable that the people living inland should be disturbed as 
 little as possible by the advent of steam vessels to which they are not accustomed, 
 inland waters not hitherto frequented by steamers shall be opened as gradually as 
 may be convenient to merchants and only as the owners of steamers may see 
 prospect of remunerative trade. 
 
 In cases where it is intended to run steam vessels on waterways on which 
 such vessels have not hitherto run, intimation shall be made to the Commissioner 
 of Customs at the nearest open port, who shall report the matter to the Ministers 
 of Commerce. The latter, in conjunction with the Governor General or Governor 
 of the province, after careful consideration of all the circumstances of the case, 
 shall at once give their approval. 
 
 8. — A registered steamer may ply within the waters of a port, or from one 
 open port or ports to another open port or ports, or from one open port or ports 
 to places inland, and thence back to such port or ports. She may, on making due 
 report to the Customs, land or ship passengers or cargo at any recognized places 
 of trade passed in the course of the voyage ; but may not ply between inland 
 places exclusively except with the consent of the Chinese Government. 
 
 9. — Any cargo and passenger boats may be towed by steamers. The helms- 
 man and crew of any boat towed shall be Chinese. All boats, irrespective of 
 ownership, must be registered before they can proceed inland. 
 
 10. — The above Rules are supplementary to the Regulations published in 
 the fifth and seventh moons of the twenty-fourth year of Kuang-hsii, which 
 remain in full force and effect in so far as they are not modified by the Rules 
 now agreed upon. 
 
 The present Rules and the Regulations of the fifth and seventh moons of the 
 twenty-fourth year of Kuang-hsii may hereafter be modified, as circumstances 
 require, by mutual consent.
 
 NUMBER 1903/4: OCTOBER 8, 1903: ANNEXES 417 
 
 Done at Shanghai this eighth day of the tenth month of the thirty-sixth 
 year of Meiji, corresponding to the eighteenth day of the eighth moon of the 
 twenty-ninth year of Kuang-hsu. 
 
 [l. s.] Hioki Eki. 
 
 [l. s.] Odagiri Masnoske. 
 
 (Signature of His Excellency Lii Hai-huan.) 
 
 (Signature of His Excellency Sheng Hsuan-huai.> 
 
 (Signature of His Excellency Wu T'ing-fang.) 
 
 Annex 2. 
 
 Imperial Japanese Commissioners for Treaty Revision 
 
 to 
 Imperial Chinese Commissioners for Treaty Revision. 
 
 Shanghai, the 8th Day of the 10th 
 Month of the 36th Year of Meiji. 
 Gentlemen, 
 
 According to Article III of the present Treaty the Chinese Government agree 
 that any Japanese steamer capable of navigating the Inland Waterways, upon 
 reporting at the Imperial Maritime Customs, may proceed for the purpose of 
 trade from a treaty port to places inland, so reported, on complying with the 
 Original and Supplementary Regulations for Steam Navigation Inland. 
 
 It is understood that all classes of Japanese steamers, whatever their size, 
 provided they are capable of navigating the Inland Waterways, may on complying 
 with the Regulations receive an Inland Waters Certificate and carry on trade 
 with inland places, and the Chinese Government will in no case raise difficulties 
 and stop such steamers from plying to and from inland places. 
 
 We have the honour, in order to prevent future misunderstandings, to 
 address this despatch to Your Excellencies and to request that instructions be sent 
 to the Inspector General of Maritime Customs to act in accordance with this 
 understanding. We have further the honour to request a reply from Your 
 Excellencies. 
 
 We have the honour to be, gentlemen, 
 Your obedient Servants, 
 
 (Signed) Hioki Eki. 
 
 (Signed) Odagiri Masnoske. 
 
 Their Excellencies 
 Lu Hai-huan, 
 Sheng Hsuan-huai, 
 
 Wu T'lXG-FANG, 
 
 His Imperial Chinese Majesty's 
 
 Commissioners for Treaty Revision.
 
 418 CHINA TREATIES AND AGREEMENTS 
 
 Annex 3. 
 
 Imperial Chinese Commissioners for Treaty Revision 
 
 to 
 Imperial Japanese Commissioners for Treaty Revision, 
 
 Shanghai, the 18th day of the 8th Moon 
 
 of the 29th Year of Kuang-hsu. 
 Gentlemen, 
 
 We have the honour to acknowledge the receipt of Your Excellencies' 
 despatch of this date, written with a view of preventing future misunderstandings, 
 to the effect that, in accordance with the provisions of Article III of the present 
 Treaty, all classes of Japanese steamers, whatever their size, provided they are 
 capable of navigating the Inland Waterways, may on complying with the Regula- 
 tions receive an Inland Waters Certificate and ply to and from inland places, and 
 that the Chinese Government will in no case raise difficulties and stop them. 
 
 During the negotiations of this Article, we received a list from Your 
 Excellencies of the Japanese steamers — viz. : Sanyo Maru, Setagawa Maru, 
 Hiuga Maru, Urato Maru, Neisei Maru, Heian Maru, Taiko Maru, Yoshino 
 Maru, Meiko Maru, Fukuju Maru, Hijikawa Maru, Nagata Maru, Kyodo Maru, 
 Horai Maru, Kwanko Maru, Keiko Maru, Kinriu Maru, Zensho Maru and 
 Kohei Maru, ranging from one hundred and twenty-one tons to four hundred and 
 ten tons register — plying from Chefoo to inland places in Manchuria, under 
 Inland Waters Certificate and in accordance with the Regulations for Steam 
 Navigation Inland, which vessels have not been prevented from doing so on 
 account of their class. 
 
 At that time we instructed the Deputy Inspector General of Customs to 
 make inquiries into the records of the Custom Houses and he reported that the 
 circumstances were in accordance with Your Excellencies' statement. 
 
 In consequence of the receipt of Your Excellencies' despatch we shall 
 communicate with the Wai-wu Pu and request that instructions be sent to the 
 Inspector General of Customs to take these circumstances into consideration 
 and to act accordingly, and we have the honour to write this despatch for purposes 
 of record. 
 
 We have the honour to be. Gentlemen, 
 Your obedient Servants, 
 
 (Signature of His Excellency Lii Hai-huan.) 
 (Signature of His Excellency Sheng Hsuan-huai.) 
 (Signature of His Excellency Wu T'ing-fang.) 
 Their Excellencies 
 HiOKi Eki, 
 Odagiri Masnoske, 
 
 His Imperial Japanese Majesty's 
 
 Commissioners for Treaty Revision.
 
 NUMBER 1903/4: OCTOBER 8, 1903: ANNEXES 419 
 
 Annex 4. 
 
 Imperial Japanese Commissioners for Treaty Revision 
 
 to 
 Imperial Chinese Commissioners for Treaty Revision. 
 
 Shanghai, the 8th day of the 10th Month 
 of the 36th Year of Meiji. 
 Gentlemen, 
 
 The provision contained in No. 9 of the Supplementary Rules governing 
 steam navigation on Inland Waters published in the seventh moon of the twenty- 
 fourth year of Kuang-hsii, regarding the appointment of an officer to collect 
 dues and duties, not having in all cases been given efTect to, we have the honour 
 to request that Your Excellencies' Government will again issue instructions to 
 all provinces to give strict efifect to this provision, as it is a matter of importance. 
 We trust that Your Excellencies will comply with the request contained in 
 this despatch and that you will favour us with a reply. 
 We have the honour to be. Gentlemen, 
 
 Your obedient Servants, 
 (Signed) Hioki Eki. 
 
 (Signed) Odagiri Masnoske. 
 
 Their Excellencies 
 
 Uj Hai-huan, 
 Sheng Hsuan-huai, 
 Wu T'ing-fang, 
 
 His Imperial Chinese Majesty's 
 
 Commissioners for Treaty Revision. 
 
 Annex 5. 
 
 Imperial Chinese Commissioners for Treaty Revision 
 
 to 
 Imperial Japanese Commissioners for Treaty Revision. 
 
 Shanghai, the 18th Day of the 8th Moon 
 
 of the 29th Year of Kuang-hsii. 
 Gentlemen, 
 
 We have the honour to acknowledge the receipt of Your Excellencies' 
 despatch of this date to the efifect that, the provision contained in No. 9 of the 
 Supplementary Rules governing steam navigation on Inland Waters published 
 in the seventh moon of the twenty-fourth year of Kuang-hsu, regarding the 
 appointment of an officer to collect dues and duties, not having in all cases been 
 given efifect to, you request that instructions be again issued to all provinces to 
 give strict efifect to this provision, as it is a matter of importance.
 
 420 CHINA TREATIES AND AGREEMENTS 
 
 We have noted the above and have communicated with proper authorities in 
 order that action may be taken, and have now the honour to write this reply for 
 Your Excellencies' information. 
 
 We have the honour to be, Gentlemen, 
 Your obedient Servants, 
 
 (Signature of His Excellency Lii Hai-huan.) 
 (Signature of His Excellency Sheng Hsuan-huai.) 
 (Signature of His Excellency Wu T'ing-fang.) 
 Their Excellencies 
 HiOKi Eki, 
 Odagiri Masnoske, 
 
 His Imperial Japanese Majesty's 
 
 Commissioners for Treaty Revision. 
 
 Annex 6. 
 
 Imperial Chinese Commissioners for Treaty Revision 
 
 to 
 Imperial Japanese Commissioners for Treaty Revision. 
 
 Shanghai, the 18th Day of the 8th Moon 
 
 of the 29th Year of Kuang-hsii. 
 Gentlemen, 
 
 According to the provision of Article X of this Treaty, regarding the 
 establishment in Peking of a place of international residence and trade, it is 
 agreed that in case of and after the complete withdrawal of the foreign 
 troops, now guarding the Legations and Communications, a place in Peking 
 outside the Inner City, convenient to both parties and free from objections, shall 
 be selected and set apart as a place where merchants of all nationalities may 
 reside and carry on trade. Within the limits of this place merchants of all 
 nationalities shall be at liberty to lease land, build houses and warehouses, and 
 establish places of business ; but as to the leasing of houses and land belonging to 
 Chinese private individuals, there must be willingness on the part of the owners 
 and the terms thereof must be equitably arranged without any force or com- 
 pulsion. All roads and bridges in this place will be under the jurisdiction and 
 control of China. Foreigners residing in this place are to observe the Municipal 
 and Police Regulations on the same footing as Chinese residents, and they are 
 not to be entitled to establish a Municipality and Police of their own within its 
 limits except with the consent of the Chinese authorities. When such place of 
 international residence and trade shall have been opened and its limits properly 
 defined, the foreigners who have been residing scattered both within and without 
 the city walls, shall all be required to remove their residence thereto and they 
 shall not be allowed to remain in separate places and thereby cause inconvenience 
 in the necessary supervision by the Chinese authorities. The value of the land 
 and buildings held by such foreigners shall be agreed upon equitably and due
 
 NUMBER 1903/4: OCTOBER 8, 1903: ANNEXES 421 
 
 compensation therefor shall be paid. The period for such removal shall be 
 determined in due time, and those who do not remove before the expiry of this 
 period shall not be entitled to compensation. 
 
 We have considered it to be to our mutual advantage to come to the present 
 basis of understanding in order to avoid future unnecessary negotiations, and we 
 beg that Your Excellencies will consider and agree to it and will favour us with a 
 reply. 
 
 We have the honour to be, Gentlemen, 
 Your obedient Servants. 
 
 (Signature of His Excellency Lii Hai-huan.) 
 (Signature of His Excellency Sheng Hsuan-huai.) 
 (Signature of His Excellency Wu T'ing-fang.) 
 Their Excellencies 
 HiOKi Eki, 
 Odagiri Masnoske, 
 
 His Imperial Japanese Majesty's 
 
 Commissioners for Treaty Revision. 
 
 Annex 7. 
 
 Imperial Japanese Commissioners for Treaty Revision 
 
 to 
 Imperial Chinese Commissioners for Treaty Revision 
 
 Shanghai, the 8th Day of the 10th Month of 
 
 the 36th Year of Meiji. 
 Gentlemen, 
 
 We have the honour to acknowledge the receipt of Your Excellencies' 
 despatch of this date in which you state that — 
 
 " According to the provision of Article X of this Treaty, regarding the 
 establishment in Peking of a place of international residence and trade, it 
 is agreed that in case of and after the complete withdrawal of the foreign 
 troops, now guarding the Legations and Communications, a place in Peking 
 outside the Inner City, convenient to both parties and free from objections, 
 shall be selected and set apart as a place where merchants of all nationalities 
 may reside and carry on trade. Within the limits of this place merchants of 
 all nationalities shall be at liberty to lease land, build houses and warehouses, 
 and establish places of business ; but as to the leasing of houses and 
 land belonging to Chinese private individuals, there must be willingness on 
 the part of the owners and the terms thereof must be equitably arranged 
 without any force or compulsion. All roads and bridges in this place will 
 be under the jurisdiction and control of China. Foreigners residing in this 
 place are to observe the Municipal and Police Regulations on the same 
 footing as Chinese residents, and they are not to be entitled to establish a
 
 422 CHINA TREATIES AND AGREEMENTS 
 
 Municipality and Police of their own within its limits except with the 
 consent of the Chinese authorities. When such place of international 
 residence and trade shall have been opened and its limits properly defined, 
 the foreigners who have been residing scattered both within and without 
 the city walls, shall all be required to remove their residence thereto and 
 they shall not be allowed to remain in separate places and thereby cause 
 inconvenience in the necessary supervision by the Chinese authorities. The 
 value of the land and buildings held by such foreigners shall be agreed upon 
 equitably and due compensation therefor shall be paid. The period for 
 such removal shall be determined in due time, and those who do not remove 
 before the expiry of this period shall not be entitled to compensation. 
 
 " We have considered it to be to our mutual advantage to come to the 
 present basis of understanding in order to avoid future unnecessary negotia- 
 tions, and we beg that Your Excellencies will consider and agree to it and 
 will favour us with a reply." 
 
 In reply we beg to inform you that we agree generally to all the terms 
 contained in the despatch under acknowledgement. As to the detailed regulations, 
 these shall in due time be considered and satisfactorily settled in accordance with 
 Article X of this Treaty ; but it is understood that such regulations shall not 
 differ in any respect to our prejudice from those which may be agreed upon 
 between China and other Powers. We have the honour to send Your Excellencies 
 this communication in reply and for your information. 
 We have the honour to be, Gentlemen, 
 Your obedient Servants, 
 
 (Signed) Higki Eki. 
 
 (Signed) Odagiri Masnoske. 
 
 Their Excellencies 
 
 Lu Hai-huan, 
 Sheng Hsuan-huai, 
 
 WU T'iNG-FANG, 
 
 His Imperial Chinese Majesty's 
 
 Commissioners for Treaty Revision.
 
 NUMBER 1903/5 : OCTOBER 8, 1903 423 
 
 NUMBER 1903/5. 
 
 UNITED STATES AND CHINA. 
 
 Treaty for the extension of the commercial relations between them* — October 
 
 8, 1903. 
 
 The United States of America and His Majesty the Emperor of China, 
 being animated by an earnest desire to extend further the commercial relations 
 between them and otherwise to promote the interests of the peoples of the two 
 countries, in view of the provisions of the first paragraph of Article XI of the 
 final Protocol signed at Peking on the seventh day of September, A. D. 1901, 
 whereby the Chinese Government agreed to negotiate the amendments deemed 
 necessary by the foreign Governments to the treaties of commerce and naviga- 
 tion and other subjects concerning commercial relations, with the object of 
 facilitating them, have for that purpose named as their Plenipotentiaries : — 
 The United States of America — 
 
 Edwin H. Conger, Envoy Extraordinary and Minister Plenipotentiary 
 
 of the United States of America to China — 
 John Goodnow, Consul-General of the United States of America at 
 
 Shanghai — 
 John F. Seaman, a Citizen of the United States of America resident at 
 Shanghai — 
 And His Majesty the Emperor of China — 
 
 Lu Hai-huan, President of the Board of Public Works — 
 Sheng HsiJAN-HUAi, Junior Guardian of the Heir Apparent. Formerly 
 Senior Vice-President of the Board of Public Works — 
 who, having met and duly exchanged their full powers which were found to be in 
 proper form, have agreed upon the following amendments to existing treaties of 
 commerce and navigation formerly concluded between the two countries, and upon 
 the subjects hereinafter expressed connected with commercial relations, with the 
 object of facilitating them. 
 
 Article I.f— Diplomatic representatives; rights and privileges. — In ac- 
 cordance with international usage, and as the diplomatic representative of China 
 has the right to reside in the capital of the United States, and to enjoy there the 
 same prerogatives, privileges and immunities as are enjoyed by the similar repre- 
 sentative of the most favored nation, the diplomatic representative of the United 
 
 *Text as printed in U. S. Treafv S^eries (No Number). Printed also in Rockhill. 
 p. 135 ; Customs, Vol. I, p. 475 ; Hertslet, p. 566 ; Malloy, p. 261 ; Recueil. p. 657. 
 
 In connection with this treaty see also the British commercial treaty of September 5, 
 1902 (No. 1902/7, ante), and the Japanese treaty of October 8, 19()3 (No. 1903/4, ante): 
 see also the international agreement relating to the revised import tariff of 1902 (No. 1902/6, 
 ante), and the revised import tariff and rules of December 19, 1918 (No. 1918/18, post). 
 
 t See U. S. Treaty with China of 1858, Art. IV and V, also Final Protocol of Sept. 7, 
 1901, Annex No. 19. (No. 1901/3, ante.)
 
 424 CHINA TREATIES AND AGREEMENTS 
 
 States shall have the right to reside at the capital of His Majesty the Emperor of 
 China. He shall be given audience of His Majesty the Emperor whenever neces- 
 sary to present his letters of credence or any communication from the President of 
 the United States. At all such times he shall be received in a place and in a man- 
 ner befitting his high position, and on all such occasions the ceremonial observed 
 toward him shall be that observed toward the representatives of nations on a 
 footing of equality, with no loss of prestige on the part of either. 
 
 The diplomatic representatives of the United States shall enjoy all the 
 prerogatives, privileges and immunities accorded by international usage to such 
 representatives, and shall in all respects be entitled to the treatment extended to 
 similar representatives of the most favored nation. 
 
 English text authoritative. — The English text of all notes or dispatches from 
 United States officials to Chinese officials, and the Chinese text of all from Chinese 
 officials to United States officials shall be authoritative. 
 
 Article n4 — Consular officers; rights and privileges. — As China may 
 appoint consular officers to reside in the United States and to enjoy there the same 
 attributes, privileges and immunities as are enjoyed by consular officers of other 
 nations, the United States may appoint, as its interests may require, consular 
 officers to reside at the places in the Empire of China that are now or that may 
 hereafter be opened to foreign residence and trade. They shall hold direct official 
 intercourse and correspondence with the local officers of the Chinese Government 
 within their consular districts, either personally or in writing as the case may 
 require, on terms of equality and reciprocal respect. These officers shall be 
 treated with due respect by all Chinese authorities, and they shall enjoy all the 
 attributes, privileges and immunities, and exercise all the jurisdiction over their 
 nationals which are or may hereafter be extended to similar officers of the nation 
 the most favored in these respects. § H the officers of either government are 
 disrespectfully treated or aggrieved in any way by the authorities of the other, 
 they shall have the right to make representation of the same to the superior officers 
 of their own government who shall see that full inquiry and strict justice be had 
 in the premises. And the said consular officers of either nation shall carefully 
 avoid all acts of offense to the officers and people of the other nation. 
 
 On the arrival of a consul duly accredited at any place in China opened to 
 foreign trade it shall be the duty of the Minister of the United States to inform 
 the Board of Foreign Affairs, which shall, in accordance with international usage, 
 forthwith cause the proper recognition of the said consul and grant him authority 
 to act. 
 
 Article ni.|| — American citizens in China; their rights. — Citizens of the 
 United States may frequent, reside and carry on trade, industries and manufac- 
 tures, or pursue any lawful avocation, in all the ports or localities of China which 
 are now open or may hereafter be opened to foreign residence and trade ; and, 
 within the suitable localities at those places which have been or may be set apart for 
 the use and occupation of foreigners, they may rent or purchase houses, places of 
 business and other buildings, and rent or lease in perpetuity land and build there- 
 
 t See U. S. Treaty of 1858, Art. X. 
 
 § See Note 1 to this document, post, p. 450. 
 
 II See U. S. Treaty of 1858, Art. XI.
 
 NUMBER 1903/5 : OCTOBER 8, 1903 425 
 
 on. They shall generally enjoy as to their persons and property all such rights, 
 privileges and immunities as are or may hereafter be granted to the subjects or 
 citizens of the nation the most favored in these respects. 
 
 Article IV.^ — Likin and other transit dues to be totally abolished. — The 
 Chinese Government, recognizing that the existing system of levying dues on 
 goods in transit, and especially the system of taxation known as likin, impedes the 
 free circulation of commodities to the general injury of trade, hereby undertakes 
 to abandon the levy of likin and all other transit dues throughout the Empire and 
 to abolish the offices, stations and barriers maintained for their collection and not 
 to establish other offices for levying dues on goods in transit. It is clearly under- 
 stood that, after the offices, stations and barriers for taxing goods in transit have 
 been abolished, no attempt shall be made to re-establish them in any form or 
 under any pretext whatsoever. 
 
 Surtax on tariff rates granted in compensation. — The Government of the 
 United States, in return, consents to allow a surtax, in excess of the tariff rates 
 for the time being in force, to be imposed on foreign goods imported by citizens 
 of the United States and on Chinese produce destined for export abroad or coast- 
 wise. It is clearly understood that in no case shall the surtax on foreign imports 
 exceed one and one-half times the import duty leviable in terms of the final 
 Protocol signed by China and the Powers on the seventh day of September, A.D. 
 1901 ; that the payment of the import duty and surtax shall secure for foreign 
 imports, whether in the hands of Chinese or foreigners, in original packages or 
 otherwise, complete immunity from all other taxation, examination or delay ; that 
 the total amount of taxation, inclusive of the tariff export duty, leviable on native 
 produce for export abroad shall, under no circumstances, exceed seven and one- 
 half per centum ad valorem. 
 
 China's right to levy taxes. — Nothing in this article is intended to interfere 
 with the inherent right of China to levy such other taxes as are not in conflict with 
 its provisions.* 
 
 Keeping these fundamental principles in view, the High Contracting Parties 
 have agreed upon the following method of procedure. 
 
 Likin barriers to be abolished. Native customs offices to be retained in 
 certain localities. — The Chinese Government undertakes that all offices, stations 
 and barriers of whatsoever kind for collecting likin, duties, or such like dues on 
 goods in transit, shall be permanently abolished on all roads, railways and water- 
 ways in the nineteen Provinces of China and the three Eastern Provinces. This 
 provision does not apply to the native Customs offices at present in existence on 
 the seaboard, at open ports where there are offices of the Imperial IMaritime Cus- 
 toms, and on the land frontiers of China embracing the nineteen Provinces and 
 the three Eastern Provinces. 
 
 Wherever there are offices of the Imperial Maritime Customs, or wherever 
 such may be hereafter placed, native Customs offices may also be established, as 
 well as at any point either on the seaboard or land frontiers. 
 
 Surtax on duties on foreign imports. — The Government of the United States 
 
 * See Note 2 to this document, post, p. 451. 
 
 USee British Treaty of 1902, Art. VIII; also Japanese Treaty of 1903, Art. I.
 
 426 CHINA TREATIES AND AGREEMENTS 
 
 agrees that foreign goods on importation, in addition to the effective five per 
 centum import duty as provided for in the Protocol of 1901, shall pay a special 
 surtax of one and one-half times the amount of the said duty to compensate for 
 the abolition of likin, of other transit dues besides likin, and of all other taxation 
 on foreign goods, and in consideration of the other reforms provided for in this 
 article. 
 
 Revision of foreign export tariff. — The Chinese Government may recast the 
 foreign export tariff with specific duties, as far as practicable, on a scale not 
 exceeding five per centum ad valorem; but existing export duties shall not be 
 raised until at least six months' notice has been given. In cases where existing 
 export duties are above five per centum, they shall be reducd to not more than 
 that rate. 
 
 Surtax on exports; how levied.— An additional special surtax of one- 
 half the export duty payable for the time being, in lieu of internal taxation 
 of all kinds, may be levied at the place of original shipment or at the time of 
 export on goods exported either to foreign countries or coastwise. 
 
 Certificate of origin. — Foreign goods which bear a similarity to native goods 
 shall be furnished by the Customs officers, if required by the owner, with a pro- 
 tective certificate for each package, on the payment of import duty and surtax, to 
 prevent the risk of any dispute in the interior. 
 
 Junk-borne goods. — Native goods brought by junks to open ports, if intended 
 for local consumption, irrespective of the nationality of the owner of the goods, 
 shall be reported at the native Customs offices only, to be dealt with according to 
 the fiscal regulations of the Chinese Government. 
 
 Machine-made goods in China; treatment of. — Machine-made cotton yarn 
 and cloth manufactured in China, whether by foreigners at the open ports or by 
 Chinese anywhere in China, shall as regards taxation be on a footing of perfect 
 equality. Such goods upon payment of the taxes thereon shall be granted a rebate 
 of the import duty and of two-thirds of the import surtax paid on the cotton used 
 in their manufacture, if it has been imported from abroad, and of all duties paid 
 thereon if it be Chinese grown cotton. They shall also be free of export duty, 
 coast-trade duty and export surtax. The same principle and procedure shall 
 be applied to all other products of foreign type turned out by machinery in 
 China. 
 
 Maritime Customs to oversee native customs affairs. — A member or mem- 
 bers of the Imperial Maritime Customs foreign staff shall be selected by the 
 Governors-General and Governors of each of the various provinces of the Empire 
 for their respective provinces, and appointed in consultation with the Inspector 
 General of Imperial Maritime Customs, for duty in connection with native Customs 
 affairs to have a general supervision of their working. 
 
 Complaints ; how investigated. Responsibility for enforcement of provi- 
 sions of treaty. — Cases where illegal action is complained of by citizens of the 
 United States shall be promptly investigated by an offfcer of the Chinese Govern- 
 ment of sufficiently high rank, in conjunction with an officer of the United States 
 Government, and an officer of the Imperial Maritime Customs, each of sufficient 
 standing ; and, in the event of it being found by the investigating officers that the 
 complaint is well founded and loss has been incurred, due compensation shall be
 
 NUMBER 1903/5 : OCTOBER 8, 1903 427 
 
 paid through the Imperial Maritime Customs. The high provincial officials shall 
 be held responsible that the officer guilty of the illegal action shall be severely- 
 punished and removed from his post. If the complaint is shown to be frivolous 
 or malicious, the complainant shall be held responsible for the expenses of the 
 investigation. 
 
 Edict to be published when article becomes operative. — When the ratifica- 
 tions of this Treaty shall have been exchanged by the High Contracting Parties 
 hereto, and the provisions of this Article shall have been accepted by the Powers 
 having treaties with China, then a date shall be agreed upon when the provisions 
 of this Article shall take effect and an Imperial Edict shall be published in due 
 form on yellow paper and circulated throughout the Empire of China setting forth 
 the abolition of all likin taxation, duties on goods in transit, offices, stations and 
 barriers for collecting the same, and of all descriptions of internal taxation on 
 foreign goods, and the imposition of the surtax on the import of foreign goods 
 and on the export of native goods, and the other fiscal changes and reforms pro- 
 vided for in this Article, all of which shall take effect from the said date. The 
 Edict shall state that the provincial high officials are responsible that any official 
 disregarding the letter or the spirit of its injunction shall be severely punished and 
 removed from his post. 
 
 Article V.f — Tariff on American imports. Most favored nation treatment. 
 — The tariff duties to be paid by citizens of the United States on goods imported 
 into China shall be as set forth in the schedule annexed hereto and made part of 
 this Treaty, subject only to such amendments and changes as are authorized by 
 Article IV of the present convention or as may hereafter be agreed upon by the 
 High Contracting Parties hereto. It is expressly agreed, however, that citizens of 
 the United States shall at no time pay other or higher duties than those paid by the 
 citizens or subjects of the most favored nation. 
 
 Conversely, Chinese subjects shall not pay higher duties on their imports into 
 the United States than those paid by the citizens or subjects of the most favored 
 nation. 
 
 Article VI.$ — Bonded warehouses. — The Government of China agrees to 
 the establishment by citizens of the United States of warehouses approved by 
 the proper Chinese authorities as bonded warehouses at the several open Ports 
 of China, for storage, re-packing, or preparation for shipment of lawful goods, 
 subject to such necessary regulations for the protection of the revenue of China, 
 including a reasonable scale of fees according to commodities, distance from the 
 custom house and hours of working, as shall be made from time to time by the 
 proper officers of the Government of China. 
 
 Article VII. § — Mining regulations to be revised and operations 
 encouraged. — The Chinese Government, recognizing that it is advantageous for 
 the country to develop its mineral resources, and that it is desirable to attract for- 
 eign as well as Chinese capital to embark in mining enterprises, agrees, within 
 one year from the signing of this Treaty, to initiate and conclude the revision of 
 the existing mining regulations. To this end China will, with all expedition and 
 
 t See British Treaty of 1902, Art. XV; also Japanese Treaty of 1903. Art. I. 
 t See British Treaty of 1902, Art. VT. 
 § See British Treaty of 1902, Art. IX.
 
 428 CHINA TREATIES AND AGREEMENTS 
 
 earnestness, go into the whole question of mining rules; and, selecting from the 
 rules of the United States and other countries regulations which seem applicable 
 to the condition of China, will recast its present mining rules in such a way as, 
 while promoting the interests of Chinese subjects and not injuring in any way 
 the sovereign rights of China, will offer no impediment to the attraction of 
 foreign capital nor place foreign capitalists at a greater disadvantage than they 
 would be under generally accepted foreign regulations; and will permit citizens 
 of the United States to carry on in Chinese territory mining operations and other 
 necessary business relating thereto provided they comply with the new regulations 
 and conditions which will be imposed by China on its subjects and foreigners 
 alike, relating to the opening of mines, the renting of mineral land, and the pay- 
 ment of royalty, and provided they apply for permits, the provisions of which in 
 regard to necessary business relating to such operations shall be observed. The 
 residence of citizens of the United States in connection with such mining opera- 
 tions shall be subject to such regulations as shall be agreed upon by and between 
 the United States and China. 
 
 Any mining concession granted after the publication of such new rules shall 
 be subject to their provisions. 
 
 Article VIII. || — Drawback certificates. — Drawback certificates for the 
 return of duties shall be issued by the Imperial Maritime Customs to citizens of 
 the United States within three weeks of the presentation to the Customs of the 
 papers entitling the applicant to receive such drawback certificates, and they shall 
 be receivable at their face value in payment of duties of all kinds (tonnage dues 
 excepted) at the port of issue; or shall, in the case of drawbacks on foreign goods 
 re-exported within three years from the date of importation, be redeemable by 
 the Imperial Maritime Customs in full in ready money at the port of issue, at the 
 option of the holders thereof. But if, in connection with any application for a 
 drawback certificate, the Customs authorities discover an attempt to defraud the 
 revenue, the applicant shall be dealt with and punished in accordance with the 
 stipulations provided in the Treaty of Tientsin, Article XXI, in the case of 
 detected frauds on the revenue. In case the goods have been removed from 
 Chinese territory, then the consul shall inflict on the guilty party a suitable fine 
 to be paid to the Chinese Government. 
 
 Article IX. ^ — Protection of trade-marks. — Whereas the United States 
 undertakes to protect the citizens of any country in the exclusive use within the 
 United States of any lawful trade-marks, provided that such country agrees by 
 treaty or convention to give like protection to citizens of the United States : — 
 
 Therefore the Government of China, in order to secure such protection in the 
 United States for its subjects, now agrees to fully protect any citizen, firm or 
 corporation of the United States in the exclusive use in the Empire of China of 
 
 II See British Treaty of 1902, Art, I. 
 
 If See British Treaty of 1902, Art. VII ; also Japanese Treaty of 1903, Art. V. Agree- 
 ments for the reciprocal protection of their trade-marks against infringement by each other's 
 citizens or subjects have been concluded by the United States with other nations as follows: 
 
 Great Britain, June 28, 1905 (No. 1905/4, post) ; France, October 3, 1905 (No. 1905/12,
 
 NUMBER 1903/5 : OCTOBER 8, 1903 429 
 
 any lawful trade-mark to the exclusive use of which in the United States they are 
 entitled, or which they have adopted and used, or intend to adopt and use as soon 
 as registered, for exclusive use within the Empire of China. To this end the 
 Chinese Government agrees to issue by its proper authorities proclamations, 
 having the force of law, forbidding all subjects of China from infringing on, 
 imitating, colorably imitating, or knowingly passing off an imitation of trade- 
 marks belonging to citizens of the United States, which shall have been regis- 
 tered by the proper authorities of the United States at such offices as the Chinese 
 Government will establish for such purpose, on payment of a reasonable fee, after 
 due investigation by the Chinese authorities, and in compliance with reasonable 
 regulations. 
 
 Article X.— Protection of patents. — The United States Government allows 
 subjects of China to patent their inventions in the United States and protects 
 them in the use and ownership of such patents. The Government of China now 
 agrees that it will establish a Patent Office. After this office has been established 
 and special laws with regard to inventions have been adopted it will thereupon, 
 after the payment of the prescribed fees, issue certificates of protection, valid for 
 a fixed term of years, to citizens of the United States on all their patents issued 
 by the United States, in respect of articles the sale of which is lawful in China, 
 which do not infringe on previous inventions of Chinese subjects, in the same 
 manner as patents are to be issued to subjects of China. 
 
 Article XL* — Protection of copyright. — Whereas the Government of the 
 United States undertakes to give the benefits of its copyright laws to the citizens 
 of any foreign State which gives to the citizens of the United States the benefits 
 of copyright on an equal basis with its own citizens : — 
 
 Therefore the Government of China, in order to secure such benefits in the 
 United States for its subjects, now agrees to give full protection, in the same 
 way and manner and subject to the same conditions upon which it agrees to pro- 
 tect trade-marks, to all citizens of the United States who are authors, designers 
 or proprietors of any book, map, print or engraving especially prepared for the 
 use and education of the Chinese people, or translation into Chinese of any 
 book, in the exclusive right to print and sell such book, map, print, engraving 
 or translation in the Empire of China during ten years from the date of registra- 
 tion. With the exception of the books, maps, etc., specified above, which may not 
 be reprinted in the same form, no work shall be entitled to copyright privileges 
 under this article. It is understood that Chinese subjects shall be at liberty to 
 make, print and sell original translations into Chinese of any works written or of 
 maps compiled by a citizen of the United States. This article shall not be held to 
 protect against due process of law any citizen of the United States or Chinese 
 subject who may be author, proprietor or seller of any publication calculated to 
 injure the well-being of China. 
 
 Article XII. f — Navigation of inland waters. — The Chinese Government 
 having in 1898 opened the navigable inland waters of the Empire to commerce by 
 all steam vessels, native or foreign, that may be specially registered for the pur- 
 
 * See Japanese Treaty of 1903, Art. V. 
 
 tSee British Treaty of 1902, Art. VIII. sec. 12, and Art. X, and Japanese Treaty of 
 1903, Art. VIII. Compare last paragraph with Japanese Treaty of 1903, Art. X, par. 3.
 
 430 CHINA TREATIES AND AGREEMENTS 
 
 pose, for the conveyance of passengers and lawful merchandise, — citizens, firms 
 and corporations of the United States may engage in such commerce on equal 
 terms with those granted to subjects of any foreign power. 
 
 In case either party hereto considers it advantageous at any time that the 
 ■ rules and regulations then in existence for such commerce be altered or amended, 
 the Chinese Government agrees to consider amicably and to adopt such modifica- 
 tions thereof as are found necessary for trade and for the benefit of China. 
 
 Mukden and Antung opened to foreign trade. — The Chinese Government 
 agrees that, upon the exchange of the ratifications of this Treaty, Mukden and 
 Antung, both in the province of Sheng-king, will be opened by China itself as 
 places of international residence and trade. The selection of suitable localities 
 to be set apart for international use and occupation and the regulations for these 
 places set apart for foreign residence and trade shall be agreed upon by the 
 Governments of the United States and China after consultation together. 
 
 Article XIII. | — Uniform national coinage. — China agrees to take the neces- 
 sary steps to provide for a uniform national coinage which shall be legal tender 
 in payment of all duties, taxes and other obligations througliout the Empire by 
 the citizens of the United States as well as Chinese subjects. It is understood, 
 however, that all Customs duties shall continue to be calculated and paid on the 
 basis of the Haikuan Tael. 
 
 Article XIV. § — Christianity; its teachers and followers not to be dis- 
 criminated against. Rights and duties of missionaries. — The principles of the 
 Christian religion, as professed by the Protestant and Roman Catholic Churches, 
 are recognized as teaching men to do good and to do to others as they would have 
 others do to them. Those w^ho quietly profess and teach these doctrines shall not 
 be harassed or persecuted on account of their faith. Any person, whether citizen 
 of the United States or Chinese convert, who, according to these tenets, peaceably 
 teaches and practices the principles of Christianity shall in no case be interfered 
 with or molested therefor. No restrictions shall be placed on Chinese joining 
 Christian churches. Converts and non-converts, being Chinese subjects, shall 
 alike conform to the laws of China ; and shall pay due respect to those in author- 
 ity, living together in peace and amity ; and the fact of being converts shall not 
 protect them from the consequences of any offence they may have committed 
 before or may commit after their admission into the church, or exempt them 
 from paying legal taxes levied on Chinese subjects generally, except taxes levied 
 and contributions for the support of religious customs and practices contrary to 
 their faith. Missionaries shall not interfere with the exercise by the native authori- 
 ties of their jurisdiction over Chinese subjects ; nor shall the native authorities 
 make any distinction between converts and non-converts, but shall administer the 
 laws without partiality so that both classes can live together in peace. 
 
 Property ;land purchased by missionary societies. — Missionary societies of 
 the United States shall be permitted to rent and to lease in perpetuity, as the 
 property of such societies, buildings or lands in all parts of the Empire for mis- 
 sionary purposes and, after the title deeds have been found in order and duly 
 
 tSee British Treaty of 1902, Art. II, and Japanese Treaty of 1903, Art. XIII. 
 § See U. S. Treaty of 1858, Art. XXIX, and British Treaty of 1902, Art. XIII. See 
 Note 3 to this document, post, p. 452.
 
 NUAIBER 1903/5: OCTOBER 8, 1903 431 
 
 stamped by the local authorities, to erect such suitable buildings as may be required 
 for carrying on their good work. 
 
 Article XV. || — Reform 6i judicial system. Extra-territoriality to termi- 
 nate, — The Government of China having expressed a strong desire to reform its 
 judicial system and to bring it into accord with that of Western nations, the 
 United States agrees to give every assistance to such reform and will also be 
 prepared to relinquish extra-territorial rights when satsified that the state of the 
 Chinese laws, the arrangements for their administration, and other considerations 
 warrant it in so doing. 
 
 Article XVI.jf — Prohibition of importation of morphia. — The Government 
 of the United States consents to the prohibition by the Government of China of 
 the importation into China of morphia and of instruments for its injection, 
 excepting morphia and instruments for its injection imported for medical purposes, 
 on payment of tariff duty, and under regulations to be framed by China which shall 
 effectually restrict the use of such import to the said purposes. This prohibition 
 shall be uniformly applied to such importation from all countries. The Chinese 
 Government undertakes to adopt at once measures to prevent the manufacture in 
 China of morphia and of instruments for its injection. 
 
 Article XVII. — Treaties to remain in force except as here modified. — It 
 is agreed between the High Contracting Parties hereto that all the provisions of 
 the several treaties between the United States and China which were in force on 
 the first day of January A.D. 1900, are continued in full force and effect except 
 in so far as they are modified by the present Treaty or other treaties to which the 
 United States is a party. 
 
 The present Treaty shall remain in force for a period of ten years beginning 
 with the date of the exchange of ratifications and until a revision is effected as 
 hereinafter provided. 
 
 Revision. — It is further agreed that either of the High Contracting Parties 
 may demand that the tariff and the articles of this convention be revised at the 
 end of ten years from the date of the exchange of the ratifications thereof. If 
 no revision is demanded before the end of the first term of ten years, then these 
 articles in their present form shall remain in full force for a further term of ten 
 years reckoned from the end of the first term, and so on for successive periods of 
 ten years. 
 
 English text authoritative. — The English and Chinese texts of the present 
 Treaty and its three annexes have been carefully compared ; but, in the event 
 of there being any difference of meaning between them, the sense as expressed 
 in the English text shall be held to be the correct one. 
 
 This Treaty and its three annexes shall be ratified by the two High Con- 
 tracting Parties in conformity with their respective constitutions, and the ratifica- 
 tions shall be exchanged in Washington not later than twelve months from the 
 present date.* 
 
 In testimony whereof, we, the undersigned, by virture of our respective 
 
 * Ratified by China, January 10, 1904, and by the United States, January 12, 1904; rati- 
 fications exchanged at Washington, January 13, 1904. 
 
 II See British Treaty of 1902, Art. XII, and Tapanese Treaty of 1903. Art. XI. 
 USee British Treaty of 1902, Art. XI.
 
 432 CHINA TREATIES AND AGREEMENTS 
 
 powers, have signed this Treaty in duplicate in the EngHsh and Chinese languages, 
 
 and have affixed our respective seals. 
 
 Done at Shanghai, this eighth day of Octobef in the year of our Lord one 
 
 thousand nine hundred and three, and in the twenty ninth year of Kuang Hsu 
 
 eighth month and eighteenth day. 
 
 Edwin H. Conger, [seal.] 
 John Goodnow. [seal.] 
 
 John F. Seaman. [seal.] 
 
 Signatures and seal of Chinese Plenipotentiaries. 
 [Lij Hai-huan.] 
 [Sheng Hsuan-huai.] 
 
 Annex I. 
 
 As citizens of the United States are already forbidden by treaty to deal in or 
 handle opium, no mention has been made in this Treaty of opium taxation. 
 
 As the trade in salt is a government monopoly in China, no mention has been 
 made in this Treaty of salt taxation. 
 
 It is, however, understood, after full discussion and consideration, that the 
 collection of inland dues on opium and salt and the means for the protection of 
 the revenue therefrom and for preventing illicit traffic therein are left to be 
 administered by the Chinese Government in such manner as shall in no wise 
 interfere with the provisions of Article IV of this treaty regarding the unob- 
 structed transit of other goods. 
 
 Edwin H. Conger, [seal.] 
 John Goodnow. [seal.] 
 
 John F. Seaman. [seal.] 
 Signatures and seal of Chinese Plenipotentiaries. 
 [Lij Hai-huan.] 
 [Sheng Hsuan-huai.] 
 
 Annex II. 
 
 Article IV of the Treaty of Commerce between the United States and 
 China of this date provides for the retention of the native Customs offices at 
 the open ports. For the purpose of safeguarding the revenue of China at such 
 places, it is understood that the Chinese Government shall be entitled to establish 
 and maintain such branch native Customs offices at each open port, within a 
 reasonable distance of the main native Customs offices at the port, as shall be 
 deemed by the authorities of the Imperial Maritime Customs at that port neces- 
 sary to collect the revenue from the trade into and out of such port. Such 
 branches, as well as the main native Customs offices at each open port, shall
 
 NUMBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 433 
 
 be administered by the Imperial Maritime Customs as provided by the Protocol 
 of 1901. 
 
 Edwin H. Conger, [seal.] 
 John Goodnow. [seal.] 
 
 John F. Seaman. [seal.] 
 Signatures and seal of Chinese Plenipotentiaries. 
 [Lij Hai-huan.] 
 [Sheng Hsuan-hual] 
 
 Annex III. 
 
 The schedule of tariff duties on imported goods annexed to this Treaty under 
 Article V is hereby mutually declared to be the schedule agreed upon between 
 the representatives of China and the United States and signed by John Goodnow 
 for the United States and Their Excellencies Lii Hai-huan and Sheng Hsuan-huai 
 for China at Shanghai on the sixth day of September A. D. 1902,t according 
 to the Protocol of the seventh day of September A. D. 1901. 
 
 Edwin H. Conger, [seal.] 
 John Goodnow. [seal.] 
 
 John F. Seaman. [seal.] 
 Signatures and seal of Chinese Plenipotentiaries. 
 [Lu Hai-huan.] 
 [Sheng Hsuan-huai.] 
 
 IMPORT TARIFF 
 
 [The figures in the Import Tariff schedule express amounts in Haikwan Taels.] 
 
 Agar-agar per picul . . 0.300 
 
 Agaric. See Fungus. 
 
 Amber per catty . . .325 
 
 Aniseed (star) : 
 
 First quality (value 15 taels and over per picul) per picul. . 1.000 
 
 Second quality (value under 15 taels per picul) do .440 
 
 Apricot seed do .900 
 
 Arrowroot and arrowroot flour 5 per ct. 
 
 Asafetida per picul. . 1.000 
 
 Asbestos boiler composition do .200 
 
 Asbestos fiber do 5.000 
 
 Asbestos millboard do ... . .500 
 
 Asbestos packing, inchiding sheets and blocks do 3.500 
 
 Asbestos packing, metallic do ... . 5.000 
 
 Asbestos yarn : do. . . . 2.250 
 
 Awabi ■ do. . . . 1.500 
 
 Bacon and ham 5 per ct. 
 
 t Consult the International Agreement relating to the Revised Import Tariff of 1902 
 (No. 1902/6, ante). Consult also the Revised Tariff approved by the International Tariff 
 Commission, December 19, 1918 (No. 1918/18, post).
 
 434 CHINA TREATIES AND AGREEMENTS 
 
 Qrass per thousand . . 1.250 
 
 Gunny ".'.".'.'.*.'.".' do. . . . 4.250 
 
 Gunny (old) : •• ••• 5 per ct 
 
 j^gjjip per thousand . . 4.ls\) 
 
 Hemp (old)' ■.■.■.■■■■■■ • 5 per ct 
 
 Straw P^r thousand. . l.zoU 
 
 Baking powder in bottles or tins : 
 
 4-ounce per dozen. . .083 
 
 6-ounce do .110 
 
 8-ounce do. . . . .145 
 
 12-ounce do .226 
 
 1-pound do .303 
 
 3-pound do. . . . .810 
 
 S-pound do. . . . 1.350 
 
 Bark : 
 
 Mangrove per picul. . .073 
 
 Plum tree do ... . .120 
 
 Yellow (for dyeing) 5 per ct. 
 
 Yellow (medicinal) per picul. . .800 
 
 Barley, pearl do .300 
 
 Basins, iron (enameled) : 
 
 Up to 9 inches in diameter, decorated or not decorated per dozen.. .050 
 
 Over 9 inches in diameter, agate, blue and white, gray or mottled, not 
 
 decorated per dozen . . .090 
 
 Over 9 inches in diameter, decorated (with gold) do. . . . .175 
 
 Over 9 inches in diameter, decorated (without gold) do .125 
 
 Basins, tin (common) per gross. . .250 
 
 Beads: 
 
 Coral per catty. . .750 
 
 Cornelian * per picul . . 7.000 
 
 Glass of all kinds 5 per ct. 
 
 Beer. See Wines, etc. 
 
 Beeswax, yellow per picul. . 1.600 
 
 Belting 5 per ct. 
 
 Betel-nut husk: 
 
 Dried per picul. . .077 
 
 Fresh do. . . . .018 
 
 Betel-nut leaves, dried do .045 
 
 Betel nuts : 
 
 Dried do. . . . .225 
 
 Fresh do ... . .018 
 
 Bezoar cow, Indian 5 per ct. 
 
 Bicho de Mar: 
 
 Black per picul.. 1.600 
 
 White do. . . . .700 
 
 Bicycle materials 5 per ct. 
 
 Bicycles each . . 3.000 
 
 Birds' nests : 
 
 First quality '. . . per catty.. 1.400 
 
 Second quality do ... . .450 
 
 Third Quality do. . . . .150 
 
 Blue : 
 
 Paris .per picul. . 1.500 
 
 Prussian do 1.500 
 
 Bones, tiger do 2.500 
 
 Books : 
 
 Chinese Free. 
 
 Printed, and charts, maps, newspapers, and periodicals Free. 
 
 Borax : 
 
 Crude per picul.. .610 
 
 Refined do. . . . 1.460 
 
 Braid, Llama do ... . 5.000 
 
 Bricks, fire 5 per ct. 
 
 Bronze powder per picul . . 2.200 
 
 Butter in tins, jars, and other packages do ... . 2.000 
 
 Buttons : 
 
 Agate and porcelain per 12 gross . . .010 
 
 Brass and other kinds (not jewelry) per gross. . .020
 
 NUMBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 
 
 435 
 
 Byrrh. {See Wines, etc.) 
 
 Camphor ^. per picul. . 
 
 Camphor baroos : 
 
 Clean per catty. . 
 
 Refuse 
 
 Candles: 
 
 9-ounce per case of 25 packages of 6 candles. . 
 
 12-ounce do ... . 
 
 16-ounce do ... . 
 
 All kinds, differently packed per picul. . 
 
 other weights, duty in proportion. 
 Canes : 
 
 Bamboo per thousand . . 
 
 Coir — 
 
 1 foot long per picul . . 
 
 5 feet long per thousand . . 
 
 Canned fruits,^ vegetables, etc. (all weights and measures approximate): 
 • Table fruits (apples, apricots, grapes, peaches, pears, and plums), per 
 
 dozen 2^-pound cans 
 
 Pie fruits (apples, apricots, grapes, peaches, pears, and plums), per dozen 
 
 2j/2-pound cans 
 
 Preserved fruits in glass bottles, jars, cardboard, or wooden boxes, including 
 
 weight of immediate package per picul . . 
 
 Asparagus per dozen 2i4-pound tins. . 
 
 Corn _ per dozen 2-pound tins . . 
 
 Pease do. . . . 
 
 String beans do 
 
 Tomatoes per dozen 2V^-pound tins . . 
 
 All other vegetables preserved in tins, bottles, or jars, including weight 
 
 of immediate package per picul . . 
 
 Tomato sauce and catsup — 
 
 J^-pint bottles per dozen . . 
 
 1-pint bottles do 
 
 Jams and jellies — 
 
 1-pound tins, bottles, or jars per dozen . . 
 
 2-pound tins, bottles, or jars do. . . . 
 
 Milk (including condensed) per case of 4 dozen 1-pound tins. . 
 
 Cream, evaporated — 
 
 4 dozen pints (family size) per case. . 
 
 2 dozen quarts (hotel size) do.... 
 
 Canned meats — 
 
 Bacon or ham, sliced — 
 
 Half-pound tins per dozen . 
 
 1-pound tins do. . 
 
 Dried beef, sliced per dozen 1-pound jars . 
 
 Mince-meat — 
 
 IK-pound pails per dozen . 
 
 3-pound pails do. 
 
 Kits (half barrels and barrels) per picul. 
 
 Pork and beans, plain or with tomato sauce — 
 
 1-pound tins per dozen. 
 
 2-pound tins do . 
 
 3-pound tins do. 
 
 Potted and deviled meat — 
 
 Quarter-pound tins do. 
 
 Half-pound tins do. 
 
 Potted and deviled poultry and poultry and meat combined — 
 
 Quarter-pound tins per dozen . 
 
 Half-pound tins do. . 
 
 Soup and bouilli — 
 
 2-pound tins do . . 
 
 6-pound tins do. . 
 
 Tamales, chicken — 
 
 Hal f -pound tins do . . 
 
 1-pound tins do. . 
 
 Tongues of every description — 
 
 Half-pound tins do. . 
 
 1-pound tins do. . 
 
 1.650 
 
 2.450 
 5 per ct. 
 
 .075 
 .100 
 .133 
 .750 
 
 .400 
 
 .200 
 .300 
 
 .065 
 
 .057 
 
 .650 
 .118 
 .054 
 .060 
 .054 
 .054 
 
 .525 
 
 054 
 .087 
 
 .060 
 .118 
 .250 
 
 .230 
 .260 
 
 .077 
 .144 
 .144 
 
 .100 
 .181 
 .729 
 
 .040 
 .075 
 .085 
 
 .022 
 .042 
 
 .042 
 .072 
 
 .101 
 .244 
 
 .051 
 .080 
 
 .098 
 .204
 
 436 
 
 CHINA TREATIES AND AGREEMENTS 
 
 1 i^-pound tins per dozen . . ,287 
 
 2-pound tins ^ ... do .333 
 
 2>4-pound tins do .445 
 
 3-pound tins do .515 
 
 3^-pound tins do ... . .545 
 
 All other canned meats, including game, of every description, with or 
 without vegetables — 
 
 Half-pound tins per dozen . . .052 
 
 1-pound tins do .063 
 
 2-pound tins do. . . . .120 
 
 4-pound tins do .210 
 
 6-pound tins do .370 
 
 14-pound tins do .810 
 
 Canvas and cotton duck, not exceeding 36 inches wide per yard. . .010 
 
 Capoor cutchery 5 per ct. 
 
 Cardamoms : 
 
 Superior, and amomums per picul . . 10.000 
 
 Inferior, or grains of paradise do ... . 1.000 
 
 Husk do. . . . .250 
 
 Cards, playing 5 per ct. 
 
 Cassia: 
 
 Buds per picul . . .750 
 
 Lignea do .920 
 
 Twigs do ... . .170 
 
 Cement per cask of 3 piculs . . .150 
 
 Cereals and flour (including barley, maize, millet, oats, paddy, rice, wheat, and 
 flour made therefrom ; also buckwheat and buckwheat flour, corn flour and 
 yellow corn meal, rye flour, and hovis flour, but not including arrowroot and 
 arrowroot flour, cracked wheat, germea, hominy, pearl barley, potato flour, 
 quaker oats, rolled oats, sago and sago flour, shredded wheat, tapioca and 
 
 tapioca flour, and yam flour) Free. 
 
 Chairs, Vienna bent-wood per dozen . . .800 
 
 Charcoal per picul . . .030 
 
 Cheese 5 per ct. 
 
 Chestnuts per picul. . .180 
 
 China root, whole, sliced, or in cubes do. . . . .650 
 
 China ware, coarse and fine 5 per ct. 
 
 Chloride of lime • • per picul . . .300 
 
 Chocolate, sweetened per pound . . .012, 
 
 Cigarettes : 
 
 First quality (value exceeding 4.50 taels per thousand) per thousand. . .500 
 
 Second quality (value not exceeding 4.50 taels per thousand) do. . . . .090 
 
 Cigars do ... . .500 
 
 Cinnabar per picul . . 3.750 
 
 Cinnamon do ... . 4.000 
 
 Clams, dried do ... . .550 
 
 Clocks of all kinds 5 per ct. 
 
 Cloves per picul . . .630 
 
 Cloves, mother do ... . .360 
 
 Coal : 
 
 Asiatic per ton . . .250 
 
 Other kinds do. . . . .600 
 
 Asiatic, briquettes do ... . .500 
 
 Cochineal 5 per ct. 
 
 Cockles : 
 
 Dried per picul . . .500 
 
 Fresh '. do. . . . .050 
 
 Cocoa do. . . . 3.600 
 
 Coffee .' do.... 1.000 
 
 Coir canes : 
 
 1 foot long per picul . . .200 
 
 5 feet long per thousand . . .300 
 
 Coke : 
 
 Asiatic per ton . . .500 
 
 Other kinds do. . . . .900 
 
 Compoy per picul . . 2.000 
 
 Coral per catty. . 1.110 
 
 Coral beads do ... . .750
 
 NUMBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 437 
 
 Coral, broken and refuse per catty. . .550 
 
 Cordage of all kinds 5 per ct. 
 
 Cornelian beads per picul . . 7.000 
 
 Cornelian stones, rough per hundred . . .300 
 
 Corundum sand per picul. . .195 
 
 Cotton piece goods : 
 
 Gray shirtings or sheetings, not exceeding 40 inches wide and not exceeding 
 40 yards long — 
 
 (a) Weight 7 pounds and under per piece. . .050 
 
 (b) Weight over 7 pounds and not over 9 pounds do. . . . .080 
 
 (c) Weight over 9 pounds and not over 11 pounds do.... .110 
 
 (d) Weight over 11 pounds do.... .120 
 
 Imitation native cotton cloth (hand-made), gray or bleached — 
 
 (o) Not exceeding 20 inches wide and not exceeding 20 yards long; 
 
 weight 3 pounds and under per piece . . .027 
 
 (b) Exceeding 20 inches wide 5 per ct. 
 
 White shirtings, white Irishes, white sheetings, white brocades, and white 
 striped or spotted shirtings ; not exceeding 37 inches wide and not ex- 
 ceeding 42 yards long per piece . . .135 
 
 Drills, gray or white : not exceeding 31 inches wide and not exceeding 40 
 yards long — 
 
 (a) Weight 12^ pounds and under per piece.. .100 
 
 (b) Weight over 12^ pounds do .125 
 
 Jeans, gray or white — 
 
 (o) Not exceeding 31 inches wide and not exceeding 30 yards 
 
 long per piece . . .090 
 
 (b) Not exceeding 31 inches wide and not exceeding 40 yards 
 
 long per piece. . .120 
 
 T cloths, gray or white — 
 
 (a) Not exceeding 34 inches wide and not exceeding 24 yards 
 
 long per piece . . .070 
 
 (b) Not exceeding 34 inches wide and exceeding 24 yards, but 
 
 not exceeding 40 yards long per piece. . .135 
 
 (c) Exceeding 34 inches but not exceeding 37 inches wide and not 
 
 exceeding 24 yards long per piece. . .080 
 
 Crimp cloth and crape, plain — 
 
 (o) Not exceeding 30 inches wide and not exceeding 6 yards 
 
 long per piece . . .027 
 
 (b) Not exceeding 30 inches wide, exceeding 6 yards but not exceeding 
 
 10 yards long per piece. . .035 
 
 (c) Not exceeding 30 inches wide but exceeding 10 yards long, per 
 
 yard 003i^ 
 
 White muslins, white lawns, and white cambrics : not exceeding 46 inches 
 
 wide and not exceeding 12 yards long per piece.. .032 
 
 Mosquito netting, white or colored : not exceeding 90 inches wide, per 
 
 yard .010 
 
 Lenos and balzarines, white, dyed, or printed : not exceeding 31 inches wide 
 
 and not exceeding 30 yards long per piece. . .090 
 
 Leno brocades and balzarine brocades, dyed 5 per ct. 
 
 Prints- 
 Co) Printed cambrics, lawns, or muslins : not exceeding 46 inches wide 
 
 and not exceeding 12 yards long per piece. . .037 
 
 (6) Printed chintzes, printed crapes, printed drills, printed furnitures, 
 printed shirtings printed T-cloths (including those goods known 
 as blue and white printed T-cloths), printed twills: but not in- 
 cluding goods mentioned in (c) and (h) — 
 
 1. Not exceeding 20 inches wide 5 per ct. 
 
 2. Exceeding 20 inches but not exceeding 31 inches wide and 
 
 not exceeding 30 yards long per piece.. .080 
 
 (c) Printed crimp cloth — 
 
 1. Not exceeding 30 inches wide and not exceeding 6 yards 
 
 long per piece . . .027 
 
 2. Not exceeding 30 inches wide, exceeding 6 yards but not 
 
 exceeding 10 yards long per piece.. .035 
 
 3. Not exceeding 30 inches wide but exceeding 10 yards long, 
 
 per yard 003i/4 
 
 (d) Printed lenos and balzarines: not exceeding 31 inches wide and 
 
 not exceeding 30 yards long per piece. . .090
 
 438 CHINA TREATIES AND AGREEMENTS 
 
 (e) Printed sheetings : not exceeding 36 inches wide and not exceeding 
 
 43 yards long per piece . . .185 
 
 (/) Printed Turkey reds : of all kinds, not exceeding 31 inches wide and 
 
 not exceeding 25 yards long per piece.. .100 
 
 (g) Printed sateens, printed satinets, printed reps, printed cotton lastings, 
 including all cotton piece goods which are both dyed and printed, 
 except those specified in (/) and (h), and including any special 
 finish, such as mercerized finish, schreiner finish, gassed finish, 
 silk finish, or electric finish ; not exceeding 32 inches wide and not 
 exceeding 32 yards long per piece. . .250 
 
 (/;) Duplex prints or reversible cretonnes (not including those goods 
 
 known as blue and white printed T-cloths) 5 per ct. 
 
 Dyed cottons — 
 
 (a) Dyed plain cottons, i. c, without woven or embossed figures (in- 
 
 cluding plain Italians, lastings, reps, and ribs, and all other dyed 
 plain cottons not otherwise enumerated, and including any special 
 finish, such as mercerized finish, schreiner finish, gassed finish, 
 silk finish, or electric finish) ; not exceeding 36 inches wide and 
 not exceeding 33 yards long per piece. . .240 
 
 (b) Dyed figured cottons, i.e., with woven or embossed figures (in- 
 
 cluding figured Italians and lastings, figured reps, and figured ribs, 
 and all other dyed figured cottons not otherwise enumerated, and 
 including any special finish, such as mercerized finish, schreiner 
 finish, gassed finish, silk finish, or electric finish) : not exceeding 
 36 inches wide and not exceeding 33 yards long per piece. . .150 
 
 (c) Dyed crimp cloth — 
 
 1. Not exceeding 30 inches wide and not exceeding 6 yards long 
 
 per piece .027 
 
 2. Not exceeding 30 inches wide, exceeding 6 yards but not ex- 
 
 ceeding 10 yards long per piece . . .035 
 
 3. Not exceeding 30 inches wide but exceeding 10 yards long 
 per yard . . .003^ 
 
 (d) Dyed drills : not exceeding 31 inches wide and not exceeding 43 
 
 yards long per piece. . .170 
 
 (e) Dyed lenos and balzarines : not exceeding 31 inches wide and not 
 
 exceeding 30 yards long per piece. . .090 
 
 (/) Dyed leno brocades 5 per ct. 
 
 (g) Dyed muslins, lawns, and cambrics: not exceeding 46 inches wide 
 
 and not exceeding 12 yards long per piece. . .037 
 
 (/() Dyed shirtings and sheetings: not exceeding 36 inches wide and 
 
 not exceeding 43 yards long per piece. . .150 
 
 (0 Hongkong-dyed shirtings: not exceeding 36 inches wide and not 
 
 exceeding 20 yards long per piece. . .100 
 
 (;') Dyed cotton cuts : not exceeding 36 inches wide and not exceed- 
 ing 5J4 yards long per piece . . .022^2 
 
 (N. B. — The pro rata rule does not apply.) 
 (k) Dyed T-cloths (including dyed alpacianos), dyed real and imitation 
 
 Turkey reds of all kinds : not exceeding 32 inches wide and not 
 
 exceeding 25 yards long — 
 
 1. Weight 3% pounds and under per piece.. .060 
 
 2. Weight over 3^ pounds " do ... . .100 
 
 Flannelettes and cotton Spanish stripes — 
 
 (a) Cotton flannel, Canton flannel, swan's-down, flannelettes, and raised 
 cotton cloths of all kinds, plain, dyed, and printed — 
 
 1. Not exceeding 36 inches wide and not exceeding IS yards 
 
 long per piece . . .065 
 
 2. Not exceeding 36 inches wide, exceeding 15 yards but not 
 
 exceeding 30 yards long per piece. . .130 
 
 (fr) Dyed cotton Spanish stripes — 
 
 1. Not exceeding 32 inches wide and not exceeding 20 yards 
 
 long per piece . . .085 
 
 2. Exceeding 32 inches but not exceeding 64 inches wide and 
 
 not exceeding 20 yards long per piece. . .170 
 
 Colored woven cottons, i. c, dyed in the yarn, except crimp cloth 5 per ct. 
 
 Crimp cloth — 
 
 (a) Not exceeding 30 inches wide and not exceeding 6 yards 
 
 long per piece . . .027 
 
 (b) Not exceeding 30 inches wide and exceeding 6 yards but not exceed- 
 
 ing 10 yards long per piece. . .035
 
 NUMBER 1903/5 : OCTOBER 8. 1903 : ANNEXES 439 
 
 (c) Not exceeding 30 inches wide but exceeding 10 yards long 
 
 per yard. . .003^ 
 
 Velvets and velveteens, velvet cords, and fustians — 
 
 (a) Velvets and velveteens, plain — 
 
 1. Not exceeding 18 inches wide per yard. . .006 
 
 2. Exceeding 18 inches but not exceeding 22 inches wide, per 
 
 yard .007 
 
 3. Exceeding 22 inches but not exceeding 26 inches wide, per 
 
 yard .008 
 
 (b) Velvets and velveteens, printed or embossed: not exceeding 30 
 
 inches wide per yard. . .015 
 
 (c) Dyed velvet cords, dyed velveteen cords, dyed corduroys, dyed fus- 
 
 tians of any description : not exceeding 30 inches wide 
 
 per yard .015 
 
 Blankets, cotton, plain, printed, or jacquard per piece. . .030 
 
 Handkerchiefs, cotton — 
 
 (a) Plain, dyed, or printed, not embroidered, hemstitched or initialed: 
 
 not exceeding 1 yard square per dozen . . .020 
 
 (b) All other handkerchiefs 5 per ct. 
 
 Singlets or drawers, cotton .per dozen . . .125 
 
 Socks, cotton (including lisle thread) — 
 
 First quality (i. e., valued at 1 tael or over per dozen pairs), per dozen 
 
 pairs .075 
 
 Second quality (i. e., valued at less than 1 tael per dozen pairs), per 
 
 dozen pairs .032 
 
 Towels, cotton — 
 
 (o) Honeycomb or huckaback, plain or printed (dimensions exclusive 
 of fringe) — 
 
 1. Not exceeding 18 inches wide and not exceeding 40 inches 
 
 long per dozen . . .020 
 
 2. Exceeding 18 inches wide and not exceeding 50 inches 
 
 long per dozen . . .030 
 
 (b) All other towels 5 per ct. 
 
 Cottons, unclassed 5 per ct. 
 
 Cotton, raw per picul. . .600 
 
 Cotton thread : 
 
 Ball thread, dyed or undyed do.... 3.000 
 
 On spools — 
 
 50 yards per gross . . .040 
 
 100 yards do ... . .080 
 
 200 yards do. . . . .160 
 
 Cotton yarn : 
 
 Gray or bleached per picul . . .950 
 
 Dyed 5 per ct. 
 
 Gassed ". 5 per ct. 
 
 Mercerized 5 per ct. 
 
 Wooloa or berlinette per picul . . 3.500 
 
 Cow bezoar, Indian 5 per ct. 
 
 Crabs' flesh per picul . . .600 
 
 Crocodile (including armadillo) scales do.... 2.725 
 
 Currants do .500 
 
 Cutch do ... . .300 
 
 Cuttlefish do .667 
 
 Dyes, colors, and paints : 
 
 Aniline 5 per ct. 
 
 Blue- 
 Paris per picul . . 1.500 
 
 Prussian do. . . . 1.500 
 
 Bronze powder do ... . 2.200 
 
 Carthamin 5 per ct. 
 
 Chrome yellow 5 per ct. 
 
 Cinnabar per picul . . 3.750 
 
 Gamboge do ... . 2.700 
 
 Green — 
 
 Emerald do. . . . 1.000 
 
 Schweinfurt, or imitation do. . . . 1.000 
 
 Indigo — 
 
 Dried, artificial or natural 5 per ct.
 
 440 
 
 CHINA TREATIES AND AGREEMENTS 
 
 Liquid — 
 
 Artificial per ipicul. . 
 
 Natural do ... . 
 
 Paste, artificial do ... . 
 
 Lead — 
 
 Red, dry or mixed with oil do ... . 
 
 White, dry or mixed with oil do 
 
 Yellow, dry or mixed with oil do. . . . 
 
 Logwood extract do ... . 
 
 Ocher do. . . . 
 
 Smalt do 
 
 Ultramarine do 
 
 Vermilion do. . . . 
 
 Imitation 
 
 White zinc 
 
 Paints, unclassed 
 
 Elephants' teeth (other than tusks) and jaws, whole or part per picul. . 
 
 Elephants tusks, whole or parts per catty . . 
 
 Emery cloth and sandpaper (sheets not exceeding 144 square inches), per ream 
 
 Emery powder 
 
 Enameled ironware : 
 
 Mugs, cups, basins, and bowls, 9 inches or under in diameter, decorated or 
 
 not decorated per dozen . . 
 
 Basins and bowls, over 9 inches in diameter, agate, blue and white, gray, 
 
 mottled, not decorated per dozen . . 
 
 Basins and bowls, over 9 inches in diameter, decorated (with gold), per 
 
 dozen • 
 
 Basins and bowls, over 9 inches in diameter, decorated (without gold), per 
 
 dozen 
 
 Enamel ware, unclassed 
 
 Fans : 
 
 Palm-leaf — 
 
 Coarse per thousand . . 
 
 Fine do ... . 
 
 Fancy do. . . . 
 
 Paper or cotton, of all kinds do. . . . 
 
 Silk 
 
 Feathers : 
 
 Kingfisher — 
 
 Part skins (i. e., wings, tails, or backs) per hundred. 
 
 Whole skins do . . . 
 
 Peacock 
 
 Files. See Tools. 
 
 Fire clay per picul . 
 
 Firewood do . . . 
 
 Fish: 
 
 Cuttle do... 
 
 Dried or smoked, in bulk (including stockfish but not including cuttle 
 
 fish) per picul. 
 
 Fresh do . . . 
 
 Maws do . . . 
 
 Salt per picul . 
 
 Stock do. . . 
 
 Fishskins do. . . 
 
 Flints do.. . 
 
 Flour. See Cereals. 
 
 Flour, arrowroot, potato, sago, tapioca, yam 
 
 Fungus or agaric per picul . 
 
 Fungus, white per catty. 
 
 Galangal per picul. 
 
 Gambier do . . . 
 
 Gambler, false or cunao (yam-root dyestufif ) do . . . 
 
 Gamboge do . . . 
 
 Gasoline or stove naphtha per 10 gallon drum . 
 
 Ginseng: 
 Crude — 
 
 First quality (value exceeding 2 taels per catty) per catty. 
 
 Second quality (value not exceeding 2 taels per catty) do. . . 
 
 2.025 
 
 .215 
 
 2.025 
 
 .450 
 .450 
 .450 
 .600 
 
 .600 
 
 1.600 
 
 .500 
 
 4.000 
 
 5 per ct. 
 
 5 per ct. 
 
 5 per ct. 
 
 3.000 
 
 .170 
 
 .250 
 
 5 per ct. 
 
 .050 
 
 .090 
 
 .175 
 
 .125 
 5 per ct. 
 
 .280 
 
 .450 
 
 1.000 
 
 L400 
 
 per ct. 
 
 .250 
 
 .600 
 5 per ct. 
 
 .050 
 .010 
 
 .667 
 
 .315 
 .137 
 4.250 
 .160 
 .315 
 .600 
 .040 
 
 5 per ct. 
 
 1.750 
 .250 
 .170 
 .300 
 .150 
 
 2.700 
 .150 
 
 .220 
 .072
 
 NUMBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 441 
 
 Clarified or cleaned — 
 
 First quality (value exceeding 11 taels per catty) per catty. . 1.100 
 
 Second quality (value exceeding 6 taels but not exceeding 11 taels 
 
 per catty) .per catty. . .375 
 
 Third quality (value exceeding 2 taels but not exceeding 6 taels 
 
 per catty) per catty. . .220 
 
 Fourth quality (value not exceeding 2 taels per catty) do .080 
 
 Glass : 
 
 Plate- 
 Silvered per square foot . . .025 
 
 Unsilvered 5 per ct. 
 
 Window — 
 
 Colored, stained, ground, or obscured per box of 100 square feet.. .350 
 
 Common, not stained, colored, or otherwise obscured do ... . .170 
 
 Glass powder (see Match-making materials) per picul, . .110 
 
 Glue do. . . . .830 
 
 Gold thread, imitation. See Thread. 
 
 Groundnuts do .150 
 
 Gum arabic do. . . . 1.000 
 
 Gum benjamin do. . . . .600 
 
 Gum benjamin, oil of 5 per ct. 
 
 Gum dragon's blood per picul . . 4.000 
 
 Gum myrrh do. . . . .465 
 
 Gum olibanum do. . . . .450 
 
 Gum resin do ... . .187 
 
 Gutta-percha. See India rubber. 
 
 Hair, horse do 1.400 
 
 Hair, horsetails do 2.500 
 
 Hams 5 per ct. 
 
 Handkerchiefs. See Cotton piece goods. 
 
 Hartall or orpiment per picul. . .450 
 
 Hemp -. 5 per ct. 
 
 Hessians or burlaps, all weights per 1,000 yards. . 2.850 
 
 Hide poison or specific 5 per ct. 
 
 Hides, buffalo and cow per picul. . .800 
 
 Hollow-ware : cast coated or tinned do. . . . .500 
 
 Hoofs, animal per picul. . .125 
 
 Hops 5 per ct. 
 
 Horns : 
 
 Buffalo and cow per picul . . .350 
 
 Deer 5 per ct. 
 
 Rhinoceros per catty . . 2.400 
 
 Hosiery. See Cotton piece goods (socks). 
 
 India-rubber and gutta-percha articles (other than boots and shoes) 5 per ct. 
 
 India-rubber and gutta-percha, crude per picul. . 3.140 
 
 India-rubber boots per pair. . .080 
 
 India-rubber shoes do ... . .020 
 
 India-rubber, old (fit only for remanufacture) per picul. . .250 
 
 Indigo : 
 
 Dried, artificial or natural 5 per ct. 
 
 Liquid — 
 
 Artificial per picul . . 2.025 
 
 Natural do .215 
 
 Paste, artificial do ... . 2.025 
 
 Ink, printing 5 per ct. 
 
 Isinglass (fish glue) per picul. . 4.000 
 
 Isinglass, vegetable do. . . . 1.750 
 
 Jams and jellies in tins, bottles, or jars: 
 
 1-pound per dozen . . .060 
 
 2-pound do. . . . .118 
 
 Joss sticks per picul . . .640 
 
 Kerosene oil cans and cases, empty per 2 cans in 1 case . . .005 
 
 Lace open work or insertion work of cotton, machine made : 
 
 (a) Not exceeding 1 inch wide, outside measurement, per 12 dozen yards.. .050 
 lb) Exceeding 1 inch but not exceeding 2 inches wide, outside measure- 
 ment per 12 dozen yards . . .100 
 
 (c) Exceeding 2 inches but not exceeding 3 inches wide, outside measure- 
 
 ment per 12 dozen yards . . .166 
 
 (d) Exceeding 3 inches wide, outside measurement, per 12 dozen yards -216
 
 442 
 
 CHINA TREATIES AND AGREEMENTS 
 
 Lace open work or insertion work of any fibrous material except silk or cotton 
 or imitation gold or silver thread : 
 
 (a) Machine made per catty . . 
 
 (b) Handmade (including cotton) do. . . . 
 
 Lacquer ware 
 
 Lamps and their accessories 
 
 Lamp wick per picul. . 
 
 Lard, pure or compound do. . . . 
 
 Lead, red, white, yellow, dry or mixed with oil do 
 
 Leather : 
 
 Belting 
 
 Calf per picul. . 
 
 Colored do ... . 
 
 Cow • • do 
 
 Harness (not including enameled or pigskin) do. . . . 
 
 Kid do. . . . 
 
 Sole do ... . 
 
 Patent do 
 
 All other kinds 
 
 Lichees, dried per picul . , 
 
 Lily flowers, dried do ... . 
 
 Lily seed {i.e., lotus nuts without husks) do. . . . 
 
 Lime, chloride of do ... . 
 
 Linen 
 
 Liqueurs. See Wines, etc. 
 
 Licorice per picul. . 
 
 Logwood extract do 
 
 Lotus nuts {i.e., lily seeds with husks) do 
 
 Lucraban seed do. . . . 
 
 Lung-ngan pulp do ... . 
 
 Lung-ngans, dried do. . . . 
 
 Macaroni and vermicelli, and similar pastes do . . , . 
 
 Mace 
 
 Machines, sewing, hand or foot 
 
 Madeira. See Wines, etc. (vins de liqueur). 
 Marsala. See Wines, etc. (vins de liqueur). 
 
 Malt per picul. . 
 
 Mangrove bark do ... . 
 
 Manure, chemical • 
 
 Margarin, in tins, jars, or kegs per picul. . 
 
 Marsala. See Wines, etc. (vins de liqueur). 
 Matches : 
 
 Rainbow or brilliant per 50 gross boxes. 
 
 Wax vestas : not exceeding 100 in a box per 10 gross boxes . 
 
 Wood, safety or other — 
 
 Large: boxes not exceeding 2^^ by 1^2 by ?4 inches, per 50 gross boxes. 
 Small: boxes not exceeding 2 by \H by 5^ inches, per 100 gross boxes. 
 
 Boxes exceeding above sizes 
 
 Match-making materials : 
 
 Glass powder per picul . 
 
 Phosphorus do . . . 
 
 Splints do. . . 
 
 Wax, parafin do . . . 
 
 Wood shavings do . . . 
 
 Mats : 
 
 Coir (door) per dozen. 
 
 Formosa, grass (bed) each. 
 
 Rush per hundred . 
 
 Straw do . . . 
 
 Tatami each . 
 
 Matting: 
 
 Coir : not exceeding 36 inches wide per roll of 100 yards. 
 
 Straw : not exceeding 36 inches wide per roll of 40 yards . 
 
 Meats, in bulk : 
 
 Beef, corned, pickled, in barrels per picul. 
 
 Dry-salted meat, in boxes and barrels do . . . 
 
 Dry sausages do . . . 
 
 Ham and breakfast bacon, in boxes or barrels 
 
 .500 
 
 2.400 
 
 5 per ct. 
 
 5 per ct. 
 
 2.000 
 
 .600 
 
 .450 
 
 5 per ct. 
 
 7.000 
 
 7.000 
 
 2.500 
 
 3.000 
 
 7.000 
 
 2.500 
 
 7.000 
 
 5 per ct. 
 
 .450 
 
 .325 
 
 LOOO 
 
 .300 
 
 5 per ct. 
 
 .500 
 .600 
 .400 
 .350 
 .550 
 .450 
 .325 
 
 per ct. 
 
 per ct. 
 
 .370 
 .073 
 
 5 per ct. 
 L400 
 
 L500 
 L600 
 
 .630 
 .920 
 
 5 per ct. 
 
 .110 
 4.125 
 .088 
 .500 
 .113 
 
 1.000 
 .050 
 .500 
 .225 
 .045 
 
 2.750 
 .250 
 
 .375 
 
 .475 
 
 .808 
 
 5 per ct.
 
 NU]^fBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 443 
 
 Lard, pure or compound per picul . . .600 
 
 Melon seeds do.... .250 
 
 Metals : 
 
 Antifriction 5 per ct. 
 
 Antimony per picul . . .700 
 
 Brass and yellow metal — 
 
 Bars and rods per picul . . 1.150 
 
 Bolts and nuts and accessories do ... . 1.150 
 
 Foil do.... 1.675 
 
 Nails do. . . . 1.150 
 
 Screws 5 per ct. 
 
 Sheets, plates, and ingots per picul . . 1.150 
 
 Tubes do. . . . 1.150 
 
 Wire do. . . . 1.150 
 
 Copper — 
 
 Bars and rods do 1,300 
 
 Bolts, nuts, rivets, and washers 5 per ct. 
 
 Ingots per picul . . 1.175 
 
 Nails do. . . . 1.300 
 
 Sheets and plates do ... . 1 ,300 
 
 Slabs do. . . . 1.175 
 
 Tacks 5 per ct. 
 
 Tubes 5 per ct. 
 
 Wire per picul. . 1.300 
 
 Dross — 
 
 Iron do. . . . .160 
 
 Iron and tin do. .-. . .300 
 
 Tin do.... .500 
 
 German silver — 
 
 Sheets do. . . . 2.200 
 
 Wire do ... . 1.500 
 
 Iron and mild steel, new — 
 
 Anchors, and parts thereof ; mill iron ; mill and ship's cranks ; and 
 forgings for vessels, steam engines, and locomotives (weighing each 25 
 
 pounds or over) per picul . . .265 
 
 Angles do .140 
 
 Anvils and parts of do .400 
 
 Bar do. . . . .140 
 
 Bolts and nuts 5 per ct. 
 
 Castings, rough per picul . . .140 
 
 Chains, and parts of do. . . . .265 
 
 Cobbles and wire shorts ., do. . . . .130 
 
 Hoops do .140 
 
 Kentledge do. . . . .075 
 
 Nail rod do.... .140 
 
 Nails — 
 
 Wire do ... . .200 
 
 Other kinds 5 per ct. 
 
 Pig .' per picul . . .075 
 
 Pipes and tubes 5 per ct. 
 
 Plate cuttings per picul . . .110 
 
 Plates and sheets do .140 
 
 Rails do. . . . .125 
 
 Rivets do. . . . .250 
 
 Screws 5 per ct. 
 
 Sheets and plates per picul . . .140 
 
 Tacks, blue, of all sizes do ... . .400 
 
 Wire do. . . . .250 
 
 Bolts and nuts 5 per ct. 
 
 Cobbles and wire shorts per picul . . .130 
 
 Sheets — 
 
 Corrugated do .275 
 
 Plain do.... .275 
 
 Tubes 5 per ct. 
 
 Wire per picul . . .250 
 
 Wire, shorts ...do .130 
 
 Iron, old, and scrap, of any description (fit only for remanufac- 
 
 ture) ......••.. per picul.. .090
 
 444 
 
 CHINA TREATIES AND AGREEMENTS 
 
 Lead — 
 
 Pigs per picul 
 
 Sheets • ■ • ■ do . . . 
 
 Lead pipes do . . 
 
 Nickel, unmanufactured do. . 
 
 Quicksilver do. . 
 
 Spelter do . . 
 
 Steel- 
 Bamboo do. . 
 
 Bars do. . 
 
 Plates and sheets do . . 
 
 Tool, and cast do. . 
 
 Wire and wire rope do. . 
 
 Steel, mild. See Iron. 
 Tin- 
 Compound 
 
 Foil 
 
 Sheets and pipes per picul . 
 
 Slabs do. . . 
 
 Tacks, blue, of all sizes do . . . 
 
 Tinned plates — 
 
 Decorated do . . . 
 
 Plain do . . . 
 
 White metal — 
 
 Sheets do . . . 
 
 Wire do . . . 
 
 Yellow metal. See Brass. 
 Zinc — 
 
 Boiler plates do . . . 
 
 Powder do . . . 
 
 Sheets, including perforated do . . . 
 
 Milk, condensed, in tins per case of 4 dozen 1-pound tins. 
 
 Mineral waters per 12 bottles or 24 half bottles. 
 
 Mirrors 
 
 Morphia, in all forms per ounce . 
 
 Molding per thousand feet. 
 
 Mushrooms per picul . 
 
 Musical boxes 
 
 Musk per catty . 
 
 Mussels, dried per picul . 
 
 Needles : 
 
 No. 7-0 per 100 mille. 
 
 No. 3-0 do. . . 
 
 Assorted, not including 7-0 do . . . 
 
 Nutgalls per picul . 
 
 Nutmegs do . . . 
 
 Oakum do . . . 
 
 Oil: 
 
 Castor — 
 
 Lubricating do. . . 
 
 Medicinal do. . . 
 
 Clove per catty . 
 
 Cocoanut per picul . 
 
 Colza per American gallon . 
 
 Engine — 
 
 (c) Wholly or partly of mineral origin do. . . 
 
 (&) All other kinds (except castor) do. . . 
 
 Ginger per picul . 
 
 Kerosene per case of 10 American gallons. 
 
 In bulk per 10 American gallons. 
 
 Olive per imperial gallon . 
 
 Sandalwood per catty. 
 
 Wood per picul . 
 
 Oil cans and cases (kerosene) empty per 2 cans in 1 case. 
 
 Olives, fresh, pickled, or salted per picul . 
 
 Opium per picul j ,jjj[jj- 
 
 Husk per catty . 
 
 .285 
 .330 
 .375 
 2.600 
 4.280 
 .375 
 
 .250 
 .250 
 .250 
 .750 
 
 .750 
 
 per ct. 
 
 per ct. 
 
 1.725 
 
 1.500 
 
 .400 
 
 .350 
 .290 
 
 2.200 
 1.500 
 
 .600 
 
 .400 
 
 .520 
 
 .250 
 
 .050 
 
 per ct. 
 
 3.000 
 
 1.050 
 
 1.800 
 
 per ct. 
 
 9.000 
 
 .400 
 
 1.800 
 
 1.500 
 
 .985 
 
 .870 
 
 1.500 
 
 .500 
 
 .510 
 1.000 
 .150 
 .400 
 .050 
 
 .015 
 
 .025 
 
 6.750 
 
 .070 
 
 .050 
 
 .062 
 
 .240 
 
 .500 
 
 .005 
 
 .180 
 
 30.000 
 
 80.000 
 
 .062
 
 NUMBER 1903/5 : OCTOBER 8. 1903 : ANNEXES 445 
 
 Orange peel per picul . . .800 
 
 Oysters, dried 5 per ct. 
 
 Packing, asbestos. See Asbestos. 
 
 Packing, engine and boiler, all other kinds S per ct. 
 
 Paints. See Dyes, colors, and paints. 
 
 Paper : 
 
 Cigarette : not exceeding 2 by 4 inches per 100,000 leaves. . .125 
 
 Printing — 
 
 Calendered and (or) sized per picul. . .700 
 
 Not calendered or unsized do ... . .300 
 
 Writing or foolscap do ... . 1.200 
 
 All other kinds 5 per ct. 
 
 Peel, orange per picul . . .800 
 
 Pepper : 
 
 Black do. . . . .760 
 
 White do. . . . 1.330 
 
 Perfumery 5 per ct. 
 
 Phosphorus per picul . . 4.125 
 
 Pitch do.... .125 
 
 Plushes and velvets : 
 
 (o) Plushes and velvets of pure silk per catty. . .650 
 
 (6) Silk seal (with cotton back) do .200 
 
 (c) Plushes and velvets of silk mixed with other fibrous materials (with 
 
 cotton back) per catty.. .150 
 
 (rf) Plushes, all cotton (including mercerized) do.... .110 
 
 {e) Velvets, cotton. See Cotton piece goods. 
 
 Pork rind per picul . . 1.500 
 
 Prawns, dried {see also Shrimps) do ... . 1.000 
 
 Preserved fruits, in glass bottles, jars, cardboard or wooden boxes, including 
 
 weight of immediate package per picul . . .650 
 
 Purses, leather (not including silver or gold mounted) per gross.. .500 
 
 Putchuck per picul . . .715 
 
 Raisins and currents do ... . .500 
 
 Rattan : 
 
 Chairs 5 per ct. 
 
 Core per picul . . .225 
 
 Skin do. . . . .750 
 
 Rattans : 
 
 Split do. . . . .325 
 
 Whole do. . . . .225 
 
 Resin do. . . . .187 
 
 Ribbons, silk, silk and cotton, silk and other fibers, with or without- imitation 
 
 gold or silver thread per catty . . .550 
 
 Rope 5 per ct. 
 
 Rose maloes per picul . . 1.000 
 
 Safflower do. . . . .525 
 
 In barrels Ao.... .400 
 
 In bottles per 12 bottles or 24 half bottles. . .110 
 
 Saltpeter and nitrate of soda per picul . . .325 
 
 Sand, red do. . . . .045 
 
 Sandalwood do. . . . .400 
 
 Sapan wood do ... . .112 
 
 Sea-horse teeth "• • 5 per ct. 
 
 Seaweed: 
 
 Cut P^r picul . . .1 oU 
 
 Long' '.'.".'.'. do. . . . .100 
 
 Prepared do. . . . 1.000 
 
 Seed : . i nnn 
 
 Lily (f. e., lotus nuts without husks) do l.UUU 
 
 Lotus nuts (i. e., lily seeds with husks) do .400 
 
 Lucraban do. . . . .350 
 
 Melon do. . . . .250 
 
 Pine, or fir nuts do.... .20U 
 
 Sesamum do. . . . .200 
 
 Sharks' tins : , . ,.o 
 
 Black do. . . . 1.608
 
 446 CHINA TREATIES AND AGREEMENTS 
 
 Clarified or prepared per picul . . 6.000 
 
 White do. . . . 4.600 
 
 Shellac do. . . . 2.500 
 
 Shells : 
 
 Mother-of-pearl do .700 
 
 Other kinds 5 per ct. 
 
 Sherry. See Wines, etc. (vins de liqueur). 
 
 Shoes and boots, india-rubber, for Chinese : 
 
 Boots per pair. . .080 
 
 Shoes do .020 
 
 Shrimps, dried (see also Prawns) per picul. . .630 
 
 Silk piece goods, all silk (including crape) : 
 
 (a) Plain per catty. . .325 
 
 (b) Brocaded or otherwise figured do. . . . .700 
 
 Silk piece goods, mixtures (i. e., silk and cotton, or silk and other materials) 
 
 (including crape but not including mixtures with real or imitation gold or 
 silver thread) : 
 
 (a) Plain per catty. . .250 
 
 (b) Brocaded or otherwise figured do.... .500 
 
 Silver thread, imitation. (See Thread.) 
 
 Sinews : 
 
 Buffalo and cow per picul . . .550 
 
 Deer do.... 1.050 
 
 Singlets or drawers : 
 
 Cotton per dozen . . .125 
 
 Mixture 5 per ct. 
 
 Skins : 
 
 Fish per picul . . .600 
 
 Sharks 5 per ct. 
 
 Smalt per picul . . 1.600 
 
 Snuff 5 per ct. 
 
 Soap : 
 
 Household and laundry (including blue mottled), in bulk, bars, and doublets 
 
 weighing not less than one-half pound each < . . . .per picul. . .240 
 
 Toilet and fancy 5 per ct. 
 
 Socks, cotton (including lisle thread) : 
 
 First quality (i. e., valued at 1 tael or over per dozen pairs), per dozen 
 
 pairs .075 
 
 Second quality (i. e., valued at less than 1 tael per dozen pairs), per dozen 
 pairs .032 
 
 Soda: 
 
 Ash per picul.. .150 
 
 Bicarbonate do ... . .150 
 
 Caustic do ... . .225 
 
 Crystals do .120 
 
 Crystals, concentrated do .140 
 
 Soy do. . . . .250 
 
 Spirits. (See Wines, etc.) 
 
 Spirits of wine. (See Wines, etc.) 
 
 Stick-lac do. . . . .700 
 
 Stout. (See Wines, etc.) 
 
 Sugar : 
 
 Brown, up to No. 10 Dutch standard do .190 
 
 Candy . .• do. . . . .300 
 
 White, No. 11 Dutch standard and over, including cube and refined 
 per picul .240 
 
 Sulphur and brimstone : 
 
 Crude do ... . .150 
 
 Refined do. . . . .250 
 
 Sulphuric acid do. . . . .187 
 
 Sunshades. (See Umbrellas.) 
 
 Telescopes, binoculars, and mirrors 5 per ct. 
 
 Thread : 
 
 Cotton — 
 
 Balls, dyed or undyed per picul . . 3.000 
 
 Spools (50 yards) per gross. . .040 
 
 Gold and silver — 
 
 Imitation (on silk) 5 per ct. 
 
 Real 5 per ct.
 
 NUMBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 447 
 
 Gold, imitation (on cotton) per catty. . .125 
 
 Silver, imitation (on cotton) do. . . . .090 
 
 Tiles 6 inches square per hundred. . .600 
 
 Timber: 
 
 Beams — 
 
 Hard wood per cubic foot . . .020 
 
 Soft wood (including Oregon pine and California redwood: on a thick- 
 ness of 1 inch) per 1,000 superficial feet.. 1.150 
 
 Teak wood per cubic foot . . .081 
 
 Laths per thousand . . .210 
 
 Masts and spars — 
 
 Hard wood 5 per ct. 
 
 Soft wood 5 per ct. 
 
 Piles and piling (including Oregon pine and California redwood, on a thick- 
 ness of 1 inch) per 1,000 superficial feet. . 1.150 
 
 Planks- 
 Hard wood per cubic foot . . .020 
 
 Teak wood do ... . .081 
 
 Planks and flooring — 
 
 Soft wood (including Oregon pine and California redwood, and allow- 
 ing 10 per cent of each shipment to be tongued and grooved : on a 
 
 thickness of 1 inch) per 1,000 superficial feet . . 1.150 
 
 Soft wood (tongued and grooved, in excess of above, 10 per cent) . . 5 per ct. 
 
 Railway sleepers 5 per ct. 
 
 Teak-wood lumber, of all lengths and description per cubic foot.. .081 
 
 Tinder per picul . . .350 
 
 Tin foil 5 per ct. 
 
 Tobacco : 
 
 Leaf per picul . . .800 
 
 Prepared — 
 
 In bulk do.... .950 
 
 In tins or packages under 5 pounds each 5 per ct. 
 
 Tools : 
 
 Axes and hatchets per dozen . . .500 
 
 Files, file blanks, rasps, and floats, of all kinds — 
 
 Not exceeding 4 inches long do ... . .040 
 
 Exceeding 4 inches and not exceeding 9 inches long do.... .072 
 
 Exceeding 9 inches and not exceeding 14 inches long do.... .168 
 
 Exceeding 14 inches long do ... . .224 
 
 Tortoise shell per catty. . .450 
 
 Trimmings : 
 
 Bead 5 per ct. 
 
 Cotton (pure or mixed with other materials but not silk) 5 per ct. 
 
 Cotton (mixed with silk and imitation gold or silver thread) 5 per ct. 
 
 Tumeric per picul . . .185 
 
 Turpentine per gallon . . .036 
 
 Twine 5 per ct. 
 
 Ultramarine per picul . . .500 
 
 Umbrella frames per dozen. . .080 
 
 Umbrellas, parasols, and sunshades : 
 
 With handles wholly or partly of precious metals, ivory, mother-of-pearl, 
 
 tortoise shell, agate, etc., or jeweled 5 per ct. 
 
 With all other handles — 
 
 Cotton each. . .020 
 
 Mixtures, not silk do. . . . .030 
 
 Silk and silk mixtures do ... . .080 
 
 Varnish, crude lacquer, gum lacquer, or oil lacquer 5 per ct. 
 
 Vaseline 5 per ct. 
 
 Vegetables, dried and salted or pickled, in bulk 5 per ct^ 
 
 Vermicelli per picul. . .325 
 
 Vermilion do. . . . 4.000 
 
 Vermuth. Sec Wines, etc. 
 
 Watches, of all kinds 5 per ct. 
 
 Waters, aerated and mineral per 12 bottles or 24 half bottles. . .050 
 
 Wax: 
 
 Bees, yellow per picul . . 1 .600 
 
 Tapan do ... . .650 
 
 Parafi^n do. . . 500
 
 44S CHINA TREATIES AND AGREEMENTS 
 
 Sealing 5 per ct. 
 
 White 5 per ct. 
 
 Wines, etc : 
 
 Champagnes and all other sparkling wines, in bottles, per case of 12 bottles 
 
 or 24 half bottles .650 
 
 Still wines, red or white, exclusively the produce of the natural fermentation 
 
 of grapes — 
 
 (a) Having less than 14° of alcohol — 
 
 1. In bottles per case of 12 bottles or 24 half bottles. . .300 
 
 2. In bulk per imperial gallon. . .025 
 
 (b) Having 14° or more of alcohol; also vins de liqueur other than 
 port — 
 
 1. In bottles per case of 12 bottles or 24 half bottles. . .500 
 
 2. In bulk per imperial gallon . . .150 
 
 Port wine — 
 
 In bottles per case of 12 bottles or 24 half bottles. . .700 
 
 In bulk per imperial gallon . . .175 
 
 Vermuth and byrrh per case of 12 liters. . .250 
 
 Sake : 
 
 In barrels per picul . . .400 
 
 In bottles per case of 12 bottles or 24 half bottles. . .110 
 
 Brandies and whiskies, in bulk per iniperial gallon.. .125 
 
 Brandy and cognac, in bottles per case of 12 reputed quarts.. .500 
 
 Whisky, in bottles do .350 
 
 Other spirits (gin, rum, etc.) — 
 
 In bottles do.... .200 
 
 In bulk per imperial gallon . . .090 
 
 Spirits of wine, in packages of any description do. . . . .028 
 
 Ales, beers, cider, and perry — 
 
 In bottles per case of 12 reputed quarts or 24 reputed pints. . .085 
 
 In casks per imperial gallon . . .020 
 
 Porters and stouts — 
 
 In bottles per case of 12 reputed quarts or 24 reputed pints.. .100 
 
 In casks per imperial gallon. . .025 
 
 Liqueurs 5 per ct. 
 
 Wood: 
 
 Camagon per picul . . .090 
 
 Ebony do. . . . .200 
 
 Fragrant 5 per ct. 
 
 Garoo per catty. . .100 
 
 Kranj ee 5 per ct. 
 
 Laka per picul. . .125 
 
 Lignum-vitae 5 per ct. 
 
 Puru per picul . . .075 
 
 Red do. . . . .200 
 
 Rose do. . . . .200 
 
 Sandal do.... .400 
 
 Sapan do. . . . .112 
 
 Scented 5 per ct. 
 
 Shavings, Hinoki per picul. . 1.000 
 
 Woolen and cotton mixtures : 
 
 Flannel (woolen and cotton) : not exceeding 33 inches wide, per yard .015 
 
 Italian cloth, plain or figured, having warp entirely cotton and all one color, 
 and weft entirely wool and all one color : not exceeding 32 inches wide 
 
 and not exceeding 32 yards long per piece. . .372 
 
 Poncho cloth : not exceeding 76 inches wide per yard. . .030 
 
 Spanish stripes (woolen and cotton) : not exceeding 64 inches wide, per 
 
 yard .014 
 
 Union cloth: not exceeding 76 inches wide per yard.. .030 
 
 Woolen and cotton mixtures, unclassed, including alpacas, lusters, Orleans, 
 
 Sicilians, etc 5 per ct. 
 
 Woolen manufactures : 
 
 Blankets and rugs per pound . . .020 
 
 Broadcloth : not exceeding 76 inches wide per yard. . .047^ 
 
 Bunting : not exceeding 24 inches wide and not exceeding 40 yards long 
 
 per piece .200 
 
 Camlets, Dutch : not exceeding 33 inches wide and not exceeding 61 yards 
 
 long per piece.. 1.000
 
 NUMBER 1903/5 : OCTOBER 8, 1903 : ANNEXES 449 
 
 Camlets, English : not exceeding 31 inches wide and not exceeding 61 yards 
 
 long per piece . . .500 
 
 Flannel : not exceeding 33 inches wide per yard. . .015 
 
 Habit cloth : not exceeding 76 inches wide do. . . . .047 J/2 
 
 Lastings, plain, figured or craped : not exceeding 31 inches wide and not 
 
 exceeding 32 yards long per piece . . .450 
 
 Llama braid per picul . . 5.000 
 
 Long ells : not exceeding 31 inches wide and not exceeding 25 yards long 
 
 per piece .250 
 
 Medium cloth : not exceeding 76 inches wide per yard. . .047}4 
 
 Russian cloth : not exceeding 76 inches wide • • do. . . . .047^ 
 
 Spanish stripes : not exceeding 64 inches wide do. . . . .021 
 
 Woolens (unclassed) 5 per ct. 
 
 Woolen and worsted yarns and cords (not including Berlin wool) per picul.. 5.300 
 
 Berlin wool do. . . . 4.000 
 
 Wooloa or berlinette do ... . 3.500 
 
 Worm tablets, in bottles, not exceeding 60 pieces per dozen. . .035 
 
 Yarn : 
 
 Asbestos per picul . . 2.250 
 
 Coir 5 per ct. 
 
 Cotton — 
 
 Bleached or gray per picul . . .950 
 
 Dyed 5 per ct. 
 
 Gray per picul . . .950 
 
 Mercerized or gassed 5 per ct. 
 
 Wooloa or berlinette per picul . . 3.500 
 
 Wool, Berlin do. . . . 4.000 
 
 Woolen and worsted (not including Berlin wool) do. . . . 5.300 
 
 Note — If any of the articles enumerated in this tariff are imported in dimensions 
 exceeding those specified, the duty is to be calculated in proportion to the measurements as 
 defined. 
 
 RULES * 
 Rule I. 
 
 Imports unenumerated in this Tariff will pay Duty at the rate of 5 per cent, ad 
 valorem ; and the value upon which Duty is to be calculated shall be the market value of 
 the goods in local currency. This market value when converted into Haikwan Taels shall 
 be considered to be 12 per cent, higher than the amount upon which Duty is to be 
 calculated. 
 
 If the goods have been sold before presentation to the Customs of the Application to 
 pay duty, the gross amount of the bona fide contract will be accepted as evidence of the 
 market value. Should the goods have been sold on c. f. and i. terms, that is to say, without 
 inclusion in the price of Duty and other charges, such c. f. and i. price shall be taken as 
 the value for Duty-paying purposes without the deduction mentioned in the preceding 
 paragraph. 
 
 If the goods have not been sold before presentation to the Customs of the Application 
 to pay Duty, and should a dispute arise between Customs and importer regarding the value 
 or classification of goods, the case will be referred to a Board of Arbitration composed as 
 follows : 
 
 An official of the Customs ; a Merchant selected by the Consul of the importer ; and a 
 Merchant dififering in nationality from the importer, selected by the Senior Consul. 
 
 Questions regarding procedure, etc., which may arise during the sittings of the Board 
 shall be decided by the majority. The final finding of the majority of the Board, which 
 must be announced within fifteen days of the reference (not including holidays), will 
 be binding upon both parties. Each of the two merchants on the Board will be entitled to 
 a fee of Ten Haikwan Taels. Should the Board sustain the Customs valuation, or, in the 
 event of not sustaining that valuation, should it decide that the goods have been undervalued 
 by the importer to the extent of not less than 7j/2 per cent., the importer will pay the fees ; 
 if otherwise, the fees will be paid by the Customs. Should the Board decide that the cor- 
 rect value of the goods is 20 per cent, (or more) higher than that upon which the importer 
 originally claimed to pay Duty, the Customs authorities may retain possession of the goods 
 
 * In connection with these rules, consult the international Agreement relating to the 
 revised import tariff of 1902 (No. 1902/6, ante). For the text of the Rules as revised by 
 the International Tariff Conference, December 19, 1918, see the Rules annexed to No. 
 1918/18, at p. 1483, post.
 
 450 CHINA TREATIES AND AGREEMENTS 
 
 until full Duty has been paid and may levy an additional Duty equal to four times the 
 Duty sought to be evaded. 
 
 In all cases invoices, when available, must be produced if required by the Customs. 
 
 Rule II* 
 
 The following will not be liable to Import Duty: Foreign Rice, Cereals, and Flour; 
 Gold and Silver, both Bullion and Coin ; Printed Books, Charts, Maps, Periodicals, and 
 Newspapers; Samples in reasonable quantities, and certified to be for show and not for 
 sale; Government Stationery for Consulates in China; Passengers Baggage for bona fide 
 private use; Circulars, etc., distributed gratis by mercantile houses; and Private Effects 
 (not including Wines, Stores, and Tobacco) of individual Foreigners imported by themselves 
 for their own personal use and not for sale, provided that the Customs authorities are 
 satisfied that the articles in question fulfil these conditions. 
 
 A freight or part freight of Duty-free commodities (personal baggage of less than 
 tiventy passengers and Gold and Silver Bullion and Foreign Coins excepted) will render the 
 vessel carrying them, though no other cargo be on board, liable to Tonnage Dues. 
 
 Drawbacks will be issued for Ships Stores and Bunker Coal when taken on board. 
 
 Rule Ill.-f 
 
 Except at the requisition of the Chinese Government, or for sale to Chinese duly 
 authorized to purchase them, Import trade is prohibited in all Arms, Ammunition, and 
 Munitions of War of every description. No Permit to land them will be issued until the 
 Customs have proof that the necessary authority has been given to the importer. Infraction 
 of this rule will be punishable by confiscation of all the goods concerned. The import of 
 Salt is absolutely prohibited. 
 
 ShENG HsiJAN-HUAI. 
 
 Lij Hai-huan. 
 Subject to the approval of His Imp. & Roy. 
 
 Apostolic Majesty's Government E. v. Hirsch. 
 Ad referendum D. Siffert. 
 Dr. Boye. 
 Jas. L. Mackay. 
 E. Hioki. 
 M. Odagiri. 
 J. Yamaoka. 
 Ad referendum advocaat F. B. v'Jacob. 
 
 John GoooNow.t 
 
 Note 1. 
 
 In reference to the rights and privileges of consular officers as assessors in mixed 
 cases in the Chinese courts, consult the following " Protocol of understanding in regard to 
 the method of procedure to be followed when an American plaintiff sues a Chinese defendant 
 in the Tientsin consular district " : 
 
 Protocol of Procedure in Mixed Cases in Chinese Courts in Tientsin District.— 
 
 October 24, 1917. 
 
 "Court: Such cases are to be tried, not in the Shen P'an T'ing, but in a court held by the 
 
 local territorial officials (Ti Fang Kwan). 
 "Assessor: Notice of the time and place of the hearing, when set, shall be sent to the 
 
 American Consul General well in advance, so that, in accordance with the treaty, he 
 
 may, if he wishes, send an Assessor to sit in the case. 
 
 * In the text as given in U. S. Treaty Series, Rule II is printed in full ; but with 
 reference to the two passages which are herewith printed in italics, there is added as a 
 note the text of the despatch addressed by the foreign members of the Import Tariflf 
 Revision Commission to the Chinese Commissioners, under date of August 29, 1902 
 (printed at p. 340, ante, in the first note to No. 1902/6), recording the elimination from 
 Rule II of the italicized passages. 
 
 t For modification of this rule, see the revised Regulations for arms and ammunition. 
 May 30. 1908 (No. 1908/10, post). 
 
 t Signed bv representative of France March 30, 1904; by representatives of Italy, Russia. 
 Norwav and Sweden, March 28, 1903; of Denmark, March 23, 1904: and of Portugal, 
 November 11, 1904.
 
 NUMBER 1903/5 OCTOBER 8, 1903: NOTES 451 
 
 "Introduction of IVitncsses: The Assessor shall have the right to introduce such witnesses 
 as he wishes, but the summons for witnesses of Chinese nationahty shall be issued by the 
 Judge of the Court hearing the case. It is understood that, when the Assessor indicates 
 to the Judge his desire to introduce a certain witness, the Judge has no option but to 
 summon that witness. 
 "Examination of Witnesses: The Assessor shall have the right, in accordance with the treaty, 
 to question the witnesses produced in the Court, but it is understood that in putting 
 his question to witnesses the procedure will be for the Assessor to inform tiie Judge 
 at the time in the Court that he wishes a certain question put to the witness and that 
 the Judge shall then and there, forthwith, put that exact question, in the words and 
 phrasing of the Assessor to the witness. It is understood that the Judge has no option 
 but to put the questions of the Assessor and to do so in the Assessor's exact words. 
 " Cross Examination of Witnesses: The procedure in the cross examination of witnesses 
 shall be the same as in direct examination, it being understood, in accordance with the 
 treaty, that the Assessor has the right to cross examine any witness. 
 " Recognition of Assessor: The Assessor shall be given due and proper recognition, treated 
 with the courtesy due to his Government and his position, and seated at the table with 
 the Judge, not at a side table. 
 " Signed at Tientsin, China, this 24th day of October, 1917. 
 
 " (Signed and sealed) 
 
 " Huang Yung-liang, 
 ''Special Commissioner of Foreign Affairs for Chihli Province. 
 " (Signed) " P. R. Josselyn, 
 
 " (Sealed) " Vice Consul of the United States of America, in Charge 
 
 of the American Consulate General at Tientsin, China." 
 
 Note 2. 
 
 To the text of the commercial treaty as printed in Customs is annexed (Vol. I, pp. 761 
 et seq.) the following exchange of notes in reference to the provisions of Article IV: 
 
 Exchange of Notes regarding Taxes. — September 24, 1903. 
 
 " Shanghai, 24th September, 1903. 
 " Gentlemen, 
 
 " In our discussions we have on several occasions insisted that this Treaty should embody 
 both the provisions contained in the revised British Commercial Treaty recognizing the 
 right of China to collect consumption duty and excise duty, and also her right to levy 
 production duty in order to make good the duty which would have been leviable on goods in 
 transit by the Native Custom-houses inland, now abolished. While you have not agreed to 
 embody these provisions in your Treaty, you have constantly replied that the United States 
 has no intention of limiting in this Treaty the sovereign rights of China excepting as speci- 
 fied therein. 
 
 " It was our intention to write a dispatch to be an Annex to the Treaty specially 
 affirming the right of China to levy the taxes mentioned above. However, you have at our 
 urgent request inserted in the 4th Article of this Treaty a very broadly worded clause as 
 follows : — ' Nothing in this Article is intended to interfere with the inherent right of China to 
 levy such other taxes as are not in conflict with its provisions.' 
 
 " This more completely covers the ground than such a dispatch would have done. We 
 therefore only desire now to state again that China reserves her right to levy any and all 
 taxes, provided only that they do not conflict with the provisions of our Treaty with you. 
 
 " We have the honor to be. Gentlemen, 
 
 " Your obedient servants, 
 
 [Cards enclosed] 
 " Treaty Commissioners for China. 
 ' Hon. J. GooDNOw, 
 " Hon. J. F. Seaman, 
 
 " Treaty Commissioners for the United States." 
 
 " Shanghai, September 30th, 1903. 
 " Gentlemen : 
 
 " We have received your dispatch of September 24th. 
 
 " In framing this Treaty we have endeavored to recognize the right of China as a 
 sovereign state to levy such taxes as are not in conflict with the provisions of this Treaty
 
 452 CHINA TREATIES AND AGREEMENTS 
 
 which is intended to extend the commercial relations between, and promote the best inter- 
 ests of, the people of the two countries. With this end in view, we inserted at your request 
 in Article IV the clause ' Nothing in this Article is intended to interfere with the inherent 
 right of China to levy such other taxes as are not in conflict with its provisions.' We, with 
 Your Excellencies, appreciate the fact that this clause is comprehensive and conserves to the 
 fullest extent the sovereign rights of China except as specified in this Treaty. 
 " We are, Sirs, 
 
 " Your obedient servants, 
 
 " (Signed) John Goodnow, 
 " (Signed) J. F. Seaman, 
 
 " Treaty Commissioners for the U. S. 
 " To Their Excellencies, 
 
 " Lij Hai-huan, 
 " Sheng Hsuan-huai, 
 "Wu T'ing-fang, 
 " Treaty Commissioners for China." 
 
 Note 3. 
 
 Under date of October 1, 1907, was issued an Imperial Edict in regard to the protection 
 of missions, of which the following is a translation : 
 
 Chinese Imperial Edict for Protection of Missions. — October i, 1917. 
 
 " An Edict for the protection of missions in accordance with treaty provisions. It is the 
 duty of all local officials to protect missionaries wherever found in China, in respect to their 
 persons, lives, money and property. 
 
 " In the last two or three years there have been cases in every province of the burning 
 of the buildings belonging to missionary societies. No locality has been able to keep away 
 from doing injury to missionaries. We are greatly grieved at this. We are pushing 
 inquiries as to the cause. A large part of the disagreement arising between the missionary 
 societies and the common people is caused by the crookedness of the Yamen underlings. 
 
 " In times past treaties have been concluded in which it is clearly stipulated that 
 missionaries shall do their duty in preaching their doctrines. Those who practice these 
 doctrines should not be oppressively treated nor obstructed. If, however, there arises 
 any question coming under the jurisdiction of Chinese law, the local officials must conform 
 to said law in that which they do. The necessary distinctions are clearly shown. 
 
 " Let the Viceroys and Governors of all the Provinces have printed all the clauses 
 of the treaties concerned with missions and circulate them among their subordinates, to the 
 end that they may be energetically explained to the people and observed by the officials. 
 
 " The missionaries, on the other hand, must likewise observe treaty stipulations. The 
 people, whether in or out of the mission societies are alike Our children and are all 
 amenable to the country's law. So far as infraction of the laws and lawsuits are con- 
 cerned all the people are on an equality. They should on no account be treated with any 
 discrimination. Thus the laws will be respected. 
 
 " Let it be known forthwith to the common people and to the members of the societies 
 that the relations of each to the others must, according to their duty, be just; the officials 
 and their underlings must be upright in their jurisdiction. Let the people and the members 
 of the societies of their own accord make an end of their mutual anger and jealousy. For 
 there are certain rowdies who deceitfully stir up trouble with false reports. Continual 
 guard should be taken against these occurrences and on signs of their appearance they 
 should be prevented. 
 
 " If the local officials do not understand the treaty provisions, or if they are negligent 
 or unjust in their administration, or if they are pusillanimous and backward in their 
 actions, then gradually serious trouble will arise. In that case these officials will be sought 
 out and condignly punished. This Decree is for their warning. 
 
 " Respect this." 
 
 See also the Memorial and Rescript of March 12, 1908, in regard to the revision of the 
 procedure governing intercourse between the local officials and missionaries (No. 1908/4, 
 post).
 
 NUMBER 1903/6 : OCTOBER 29, 1903 453 
 
 NUMBER 1903/6. 
 
 FRANCE AND CHINA. 
 Contract for the Yunnan Railway.''^ — October 29, 1903. 
 
 The 19th and 20th of the 3rd moon of the 24th year of Kuang-Hsu, cor- 
 responding to the 9th and 10th of April, 1898, Notes were exchanged between 
 Mr. Dubail, Charge d'Affaires of the French RepubHc at Peking, and the Tsungli 
 Yamen. 
 
 In those Notes is contained the following: 
 
 1st. — The Chinese Government grants to the French Government, or to the 
 French company which the latter may designate, the right to construct a railway 
 running from the frontier of Tonkin to Yunnan Fu, the Chinese Government 
 having no other obligation than to furnish the land for the road and its 
 appurtenances. 
 
 2nd. — The route of this line is now being surveyed and will be fixed later 
 on by agreement between the two Governments. 
 
 3rd. — Regulations will be jointly made. In the dispatch of the Tsungli 
 Yamen it is said that these conventions are destined to draw closer the bonds 
 of friendship that unite France and China, and that the two nations ought to 
 strengthen the good relations that exist between them and avert forever any 
 cause of conflict. 
 
 The French Government has therefore designated, to construct and operate 
 the railway from Tonkin to Yunnan Fu, the Compagnie franqaise des Chemins de 
 fer de I'Indo-Chine et du Yunnan, which has been constituted by the most im- 
 portant financial establishments of France. 
 
 The route of the railway has, on the other hand, been surveyed by the French 
 Government and then by the Compagnie frangaise des Chemins de fer de I'lndo- 
 Chine et du Yunnan. 
 
 To give efifect to the conventions cited above, the High Contracting Authori- 
 ties have, by mutual agreement, established the present regulations for the pur- 
 pose of averting forever any cause of conflict, and assuring the carrying out 
 of the undertaking and the operation of the railway under conditions satisfactory 
 to all. 
 
 Article I. — The route of the railway to be constructed between the frontier 
 of Tonkin and Yunnan Fu will start from Hokow and pass by or near Mengtsz 
 on the way to Yunnan Fu. 
 
 If it should hereafter be deemed necessary by the French Government to 
 make any modifications in the route indicated above, notice thereof will be given 
 to the High Authorities of the Province of Yunnan by official dispatches from 
 the Consul General of France in residence in that province. After examining 
 
 * Translation from the French text. 
 
 In connection with this contract see also the exchange of notes of April 9 and 10, 1898 
 (No. 1898/7, ante). See Note to this document, post, p. 462.
 
 454 CHINA TREATIES AND AGREEMENTS 
 
 the proposals submitted, in consultation with the engineers, and upon its being 
 recognized that no objection exists, an answer will be given immediately by the 
 High Authorities of Yunnan to the Consul General of France, by means of an 
 official dispatch giving the necessary consent, whereupon the modifications may 
 be effected. 
 
 In case of disagreement between the High Authorities of the Province of 
 Yunnan and the Consul General of France, it will be adjusted by agreement 
 between the Legation of the French Republic, at Peking, and the Wai-wu Pu. 
 
 Article H. — When the agents for the work shall have fixed definitively 
 upon the detailed plans for the railway, they will draw up a detailed map of 
 the route, and will precisely indicate thereon the locations of stations and 
 yards. 
 
 The land necessary for the construction of stations, yards and workshops, 
 stores, in short everything included under the term appurtenances (dcpendances), 
 will be indicated quite clearly by dimensions, and the use to which it is to be 
 put will be mentioned. Such use will be solely for the needs of the railway, and 
 only so much of the land will be taken as is strictly necessary for the proposed 
 purpose. The effort will be made first of all to make use of public lands. The 
 effort will likewise be made to avoid so far as possible temples and graves, as 
 well as dwelling houses and market gardens. 
 
 The plans will be sent in duplicate, as the work of survey progresses, through 
 the intermediation of the Consul General of France to the High Authorities of 
 Yunnan, in order that the latter may be able to acquire possession of the neces- 
 sary lands. One of these copies will be returned by the High Authorities to 
 the Consul General after having been stamped with the seals of the Provincial 
 Government. One copy will be preserved in the archives. 
 
 On the other hand, the lands having been from time to time turned over 
 within the periods fixed in Article HI, the work may commence whenever the 
 complete transfer thereof shall have been effected. 
 
 Article HI.- —The Consul General of France will make known from time 
 to time as needed, by official letters to the High Authorities of Yunnan, the 
 lands which may be necessary for the railway line and its appurtenances, and the 
 expropriation of which may have been determined on by the engineers of the work, 
 as stated in Article H. 
 
 Lands belonging to the imperial domain are to be turned over immediately. 
 
 Lands belonging to private persons will be purchased by the High Provincial 
 Authorities so as to be turned over in each case within a period of not more than 
 six months after the official letters requesting their transfer shall have been sent 
 by the Consul General of France. 
 
 To obviate all dispute between the Railway Administration and the former 
 owners of the soil, duplicates of the deeds of sale will be turned over to the 
 Railway Administration by the Provincial Authorities. In these deeds, the owners 
 and lessees of the lands are to declare that they have been indemnified for all 
 damages that the construction of the railway might occasion them. The forms 
 for these deeds shall be drawn up by mutual agreement between the High Pro- 
 vincial Authorities and the Consul General of France.
 
 NUMBER 1903/6: OCTOBER 29, 1903 455 
 
 The agents of the Railway will have trenches dug to indicate the boundaries 
 of the lands thus transferred. 
 
 Article IV. — There may be established, to the side of the construction work 
 on the railway line {lateralement aux entreprises de la voie ferree) a service 
 road of two or three meters in width for the movement of the personnel of 
 the railway employed in surveys and in the work of construction, for the prepara- 
 tions in connection with the work, and also for the transportation of tools, 
 machines, and supplies. This road, on which a temporary track may be 
 laid, will be so arranged as to cause the least possible damage to private 
 property. 
 
 The builders will also be at liberty to lay down service railways to lead to 
 the quarries, for the extraction and transportation of materials, and for access 
 to the yards of the railway and its appurtenances. 
 
 The lands necessary for the establishment of these roads will be transferred 
 by the Provincial Authorities on the same conditions as the lands necessary for 
 the establishment of the railway line and its appurtenances. 
 
 If the lands necessary for the establishment of the service roads are leased 
 to private individuals, the rent for them will be paid by the Company, and on 
 completion of construction the lands will be returned to their owners. 
 
 Article V. — The work will begin at Hokow ; but it is herewith agreed 
 that the yards may at the same time be opened along the line of the railway 
 wherever it may be necessary, at the points indicated by the engineers, as, for 
 instance, for the construction of bridges, the digging of cuts and tunnels, the 
 building of stations, and other yards. 
 
 Article VI. — The gauge of the track, between the inner edges of the rails, 
 will be one meter. 
 
 Article VII. — The railway track must not in any case, along the line, cause 
 damage to the walls of city fortifications, to public institutions, or to important 
 posts for the defense of the country. 
 
 If rivers or irrigation canals are encountered, means must be taken to deal 
 with them, either by constructing bridges or by installing culverts so as to assure 
 their flow in the most convenient manner and to cause no injury to farming inter- 
 ests. These works will be at the expense of the builders. 
 
 Article VIII. — For the materials necessary for construction, all means will 
 be taken to make use, so far as possible, of those to be found in the country. 
 
 The local authorities will do their utmost to assist therein, and the agents 
 for the work may address themselves to those authorities in order to have the 
 prices thereof fixed by mutual agreement in accordance with the prices current 
 in the districts in question. 
 
 The builders will, however, reserve the right to deal directly with the mer- 
 chants for the purchase of such materials. They may have these purchases 
 registered by the local mandarins in order to prevent any fraud and to avoid 
 any dispute as to the carrying out of the contracts. The prices fixed will be 
 paid by the builders. 
 
 It is understood that the builders will have the right to supply themselves 
 elsewhere in China when they do not find locally the materials and supplies
 
 456 CHINA TREATIES AND AGREEMENTS 
 
 necessary, or when the local dealers insist upon a price exceeding the current 
 
 price. 
 
 Article IX. — As regards the extraction of stone and sand from the quar- 
 ries, as well as the furnishing of wood from the forests, information will be given 
 in advance to the local authorities, who, after having satisfied themselves of the 
 possibilities, will in as short a space of time as possible give the lands necessary 
 for the purpose of such quarrying, if they are included in public lands. As to 
 forests, even when they are property of the public domain, the purchase of felling 
 rights must be negotiated with the local authorities. 
 
 But if such sites are found upon private lands, the materials must be pur- 
 chased either upon an understanding with the local authorities or by direct bar- 
 gain made with the owners. 
 
 The prices fixed will be paid by the builders. 
 
 Article X. — All the lands which may be used only during the construction 
 of the railway line, such, for example, as the yards and storing-places for mate- 
 rials, the roads for the transportation of materials and approaches to the yards, 
 the quarries, the dumps of earth, the places for excavating earth, the temporary 
 lodgings for workmen and agents of construction, the establishments necessary 
 only during construction, will all be immediately restored to the Authorities of 
 Yunnan from time to time as they are no longer needed. 
 
 The Authorities will thereupon return them to their owners. 
 
 Article XL — When the main line shall have been finished, if the two 
 parties consider it advantageous, then, after an agreement with the High Author- 
 ities of Yunnan and an understanding between the Minister of France at Peking 
 and the Wai-wu Pu as to the manner of procedure, branches connecting with the 
 main line may be constructed. 
 
 Article XII. — The engineers, foremen and overseers of the work, as well 
 as all technical employees, may be taken from among foreigners. The rest of 
 the workmen of every sort will be taken first of all from among the people 
 of the province. In the event that the workmen of Yunnan should not be nu- 
 merous enough, or if the wages demanded by them should be too high, the builders 
 may engage Chinese laborers from the other provinces. 
 
 With a view to preventing agitators from making their way into the province, 
 the Chinese laborers coming from other provinces, as well as those recruited in 
 Yunnan, must present themselves to the local authorities to be matriculated. 
 
 The various prices and wages for the day or for the job will be equitably 
 fixed. They will be paid either daily or at fixed intervals, in accordance with an 
 agreement between the builders and the laborers. 
 
 In the event of a progressive increase of prices or of a combination among 
 the Chinese laborers, resort will be had to the local authorities, who will do all 
 that is incumbent upon them to assist and to fix the wages in agreement with 
 the agents of the railway, and to tranquilize the people. 
 
 If the local authorities have fixed a rate, and the Chinese laborers continue 
 to refuse to go to work, the Company shall then, upon determination of that 
 fact by the local authorities, be authorized to have resort to foreign laborers. 
 
 Article XIII. — The Chinese employees and laborers in the service of the
 
 NUMBER 1903/6 : OCTOBER 29, 1903 457 
 
 railway shall be treated with kindness. Those who may be sick will receive 
 medical care and medicines. Those who may in the course of the work be 
 injured or incapacitated will be generously assisted, as will also the families of 
 those who may have been accidentally killed. 
 
 Article XIV. — The agents employed and the laborers in the construction 
 yards will all be placed under the authority and supervision of the Engineer-in- 
 Chief and of his authorized representatives. They may not be ill-treated. All 
 questions and matters of legal procedure, lawsuits, murders, thefts, quarrels and 
 disturbances that may arise among the Chinese laborers will be under the juris- 
 diction of the competent local authorities, who will make investigations and 
 punish the guilty according to law. If any one of these individuals whatsoever 
 be judged and punished, the agents of the railway must at once deliver him over 
 upon being informed by the local authorities, and they may not stand in the 
 way of justice by extending their protection over him. 
 
 The local authorities must likewise, at the request of the European agents, 
 arrest and punish according to law all such Chinese agents as may have been 
 guilty of crimes, thefts or misdeeds towards the foreign agents. 
 
 If it be found that any of the foreign agents offend against the proprieties 
 or infringe the rules, they must be dealt with in accordance with the articles of 
 the treaties. The Chinese and foreign laborers, and the agents, without distinc- 
 tion of nationality, must not arbitrarily force their way into the dwelling of any- 
 one else, and thus give rise to incidents with the people. Those who disregard 
 this rule will be severely dealt with, in accordance with the law. 
 
 All purchases of articles of provisions must be paid for equitably at the 
 market price. 
 
 Article XV. — For the purpose of guaranteeing tranquility in the yards, 
 the Company, in agreement with the High Functionary residing at Mengtsz, may 
 at its own expense enroll native militia, and choose Chinese or European chiefs 
 of police who will command them and will select the important points at which 
 these police forces are to be placed with a view to maintaining order; in case 
 the native militia should be inadequate (impnissantes), the High Authorities of 
 Yunnan must, upon a request being addressed to them by the agents of the 
 railway, dispatch detachments of regular soldiers to such points. The militia 
 enrolled by the Company shall have no other function than to exercise police 
 control over the yards and among the laborers. 
 
 After the completion of the line, these militia troops may be employed at 
 the expense of the Company for the upkeep of the line. In all cases, the pro- 
 tection of the work from any trouble on the part of the population is a matter 
 for the Authorities of the Province, on their sole responsibility. The Company 
 must not in any case call in European troops. 
 
 Article XVI. — When the agents of the railway arrive in Yunnan, the Vice 
 Consul at Hokow will give notice thereof to the Vice Commissioner of the 
 Frontier who resides in that City. The latter will within three days deliver to 
 those concerned temporary passports permitting them to enter the territories of 
 Yunnan. When the agents arrive at Mengtsz, the Customs Taotai will within 
 three days have a regular passport made out, to be substituted for the other.
 
 458 CHINA TREATIES AND AGREEMENTS 
 
 The agents furnished with such passports in conformity with the rule will receive, 
 in all their movements, complete protection on the part of the local authorities, 
 but the authorities will take no responsibility in regard to any person who should 
 not be supplied with such a passport. 
 
 Article XVII. — When the agents for the work arrive in Yunnan, their 
 names must be transcribed into Chinese characters, and brought by the Consuls 
 to the knowledge of the High Authorities of the Province. A register, in 
 which these names will be recorded, will be kept by both parties. These names 
 cannot thereafter be changed under any pretext. 
 
 Every change or change of residence of the agents must likewise be brought 
 to the knowledge of the authorities, in order to facilitate investigations when- 
 ever and wherever necessary. 
 
 The names carried in the registers must be identical with those written in 
 the passports : there must be no discrepancy. 
 
 Article XVIII. — For the renting of houses for the agents of the work in 
 the vicinity of the line, official notice must be given to the local authorities, after 
 which negotiations are to be carried on with the owners of the houses. A copy 
 of the contract of lease must be sent to the local authorities, who will retain it in 
 their archives. 
 
 Article XIX. — In going about their duties the agents of the work, as also 
 the laborers, must be careful of private property. Whenever damage may have 
 been caused, whether to buildings or to cultivated places, a valuation will be 
 undertaken with the local authorities, and the amount of indemnification to be 
 paid will be determined by agreement in such manner as to show real kindness 
 towards the population. 
 
 Article XX. — The customs regulations forbid in principle the importa- 
 tion of powder and explosives. Inasmuch, however, as these products are in- 
 dispensable for use in the construction of a railway line, it is necessary to make 
 an exception to the rule, and to permit their entry. A declaration of the quan- 
 tities of powder and explosives to be entered must as a matter of course be made 
 to the Customs in due time, and after an examination shall have been made of 
 the products, suitable places will be selected, by agreement with the local au- 
 thorities, for the construction of storage magazines in order to prevent any 
 accident. 
 
 If it is more advantageous to manufacture these products locally, that fact 
 should be communicated in advance to the High Authorities of Yunnan, who, 
 on ascertaining that there is no objection, will grant permission to establish 
 special factories, and will name delegates to supervise in common and to control 
 the manufacture. Whether the explosives be imported or manufactured locally, 
 they are in cither case to be limited to the quantities absolutely necessary. 
 
 A special register will be kept, in which will be noted with the utmost 
 detail the exact quantities of such products on hand in the magazine. Each 
 month, the local authorities will make an inspection thereof and draw up a re- 
 port. The powder and the explosives will be used strictly for the work of the 
 railway, and none can be sold. All precautions of prudence must be taken 
 so that no harm may result to the population. If by any accident persons or
 
 NUMBER 1903/6: OCTOBER 29, 1903 459 
 
 stock are injured, or if properties are damaged, an indemnification must be paid 
 or a gift for relief be made, in accordance witli the circumstances. 
 
 Article XXI. — When the railway has been finished and is in operation, 
 the import and export duties will be levied on imported and exported goods 
 according to the tariff. Goods despatched into the interior, having paid the 
 transit dues, will no longer be liable to any tax at the Likin offix;es ; but they 
 will pay the Customs and Likin duties at the Customs and Likin offices if they 
 have not paid the transit dues. 
 
 China must hereafter give attention to the question of increasing the Cus- 
 toms offices in order to facilitate verification. Later, when the rules in regard to 
 the increase of Customs duties shall have been fixed, the goods transported by 
 the line must be dealt with in accordance with these new tarififs. 
 
 Article XXII. — The machinery, equipment and materials necessary for 
 the construction and the operation of the railway shall not be subject to any 
 Customs duties upon importation. These articles will, at the time of being 
 entered, be the subject of a declaration at the first Chinese station at which 
 there is a Customs office, but without the builders having to transport the ma- 
 terial beyond the point where it is to be used. This declaration will specify the 
 number and the character of the articles imported. 
 
 Article XXIII. — The passenger and freight tarififs will be fixed by the 
 concessionary Company. 
 
 The dispatches and official letters sent by the High Chinese Authorities, as 
 also the mail bags of the Administration of Chinese Imperial Posts, with a mes- 
 senger, will be transported without charge in the regular trains. 
 
 The Chinese Posts may rent from the Company a car for the transporta- 
 tion of letters, or themselves provide a special car which the Company must 
 attach to the trains. They may at any time whatever have a special postal train 
 dispatched. The charge for the rent of a postal car will be half of the price for 
 a passenger car. This price cannot be further reduced. 
 
 To send a special postal train, a certificate from the High Authorities of 
 Yunnan will be required. There will be a special reduced price therefor. The 
 price is not to exceed fr. 1.50 per kilometer traversed, with a single engine, or 
 fr. 2.50 per kilometer traversed, with two engines. It is understood, moreover, 
 that the postal regulations in force in China must be complied with. 
 
 If the Chinese Government has occasion to dispatch troops of any sort, 
 or arms or munitions or provisions for such troops, or assistance in kind to be 
 distributed gratuitously (in case of famine or other disaster), such consignments 
 shall have the right of way over all other transportation, and the price will be 
 half that of the ordinary tarifif. This reduction will not apply to troops traveling 
 in the fourth class. 
 
 Article XXIV. — The present railway line having as its sole purpose the 
 facilitation of commerce, once it has been built and train traffic has com- 
 menced, the use of it will not be permitted for the purpose of transporting Anna- 
 mite salt, or European troops, or military arms, or munitions which might serve 
 for the use of such European troops. It must not carry articles forbidden by the 
 laws of China.
 
 460 CHINA TREATIES AND AGREEMENTS 
 
 If China has a war with a foreign nation, the railway may not observe the 
 rules of neutrality ; it will be at the entire disposal of China. 
 
 Article XXV. — There shall be paid to the Chinese Government by the 
 Railway Administration a yearly sum of twenty francs per kilometer of the 
 railway under construction or in operation, in repayment of its expenses in 
 guarding the railway. 
 
 Article XXVL — When the railway line shall have been completed, use 
 must so far as possible exclusively be made of Chinese as guards for the track 
 and as laborers on the work of its upkeep. In each locality, one of the elders 
 who is most worthy of confidence will be entrusted with arranging for em- 
 ployment, in order that the individuals so employed may be peaceable and honest 
 folk. 
 
 In order to facilitate the control of them, each of the employees will be 
 furnished by the local authorities with a card, which will be asked for them by 
 the notable entrusted with recruiting them. 
 
 Article XXVII. — If in the course of operation of the railway damages 
 should be caused to property, or injuries should be occasioned to individuals, 
 through accidents attributable to the operating Company, the latter must make 
 an allowance for relief, or pay an indemnity to remedy the damage caused by 
 its act. 
 
 It will be the same in the case of damages or injuries caused by a faulty 
 management of the trains put into operation before the full completion of the 
 work. 
 
 Article XXVIII. — Special schools may be established at the expense of the 
 Company, where the Chinese will be taught with a view to their becoming inter- 
 preters and technical agents. 
 
 Afterwards, when the Administration of the Railway is in need of per- 
 sonnel, it shall choose first of all from among the students trained in these 
 schools. 
 
 Article XXIX. — The Administration of the Railway may, as the opening 
 of the several sections proceeds, build the telegraph or telephone line to follow 
 the track. These lines will be solely for the service of the railway, and may not 
 receive or dispatch telegrams for the public. 
 
 Article XXX, — All questions concerning the railway that shall require 
 agreement with the High Provincial Authorities shall be discussed between the 
 Consul General of France and the High Provincial Authorities. 
 
 It is understood that when technical questions are concerned, the judg- 
 ment of the engineers will be accepted. 
 
 Article XXXI. — When the work on the line begins, notice thereof will be 
 given by official letters from the Consul General to the High Authorities of Yun- 
 nan, and the latter will immediately designate a high official personage for the 
 purpose of consulting, throughout the length of the line, with the agents of the 
 railway, in order to adjust in accord with them matters concerning the execu- 
 tion of the work in accordance with the understanding arrived at between the 
 Consul General and the High Provincial Authorities. The latter likewise 
 consent to delegate a certain number of functionaries to whom they will give
 
 NUMBER 1903/6 : OCTOBER 29, 1903 461 
 
 instructions to assist the agents and to help them in their work. Should com- 
 plications arise with the people of the country, it will be the duty of these dele- 
 gates to adjust them in cooperation with the local authorities, in such fashion that 
 no misunderstanding may arise and no quarrel be started among the population. 
 
 If incidents take on a grave character and cannot be satisfactorily settled 
 locally, a report will be drawn up in order to enable the Authorities of Yunnan 
 to settle the matter with the Consul General of France. If the question lies 
 outside the powers of the High Authorities, it will be taken to Peking, where it 
 will be settled between the Chinese Government and the Minister of France. 
 
 Article XXXII. — During construction, there shall be paid monthly to the 
 High Authorities of Yunnan a sum of 4450 taels to defray the expenses of main- 
 tenance and the traveling expenses of the high official resident in Mengtsz, of 
 two mandarins under his orders (one of them concerning himself with lands, and 
 the other with justice, in that city), of one functionary corresponding to them 
 near the High Authorities at Yunnan Fu, of twelve delegates assigned by the 
 Province to assist in the construction of the line, of ten chiefs of police and two 
 hundred and forty men of the guard, of one interpreter, and of all the subordi- 
 nate functionaries. 
 
 Article XXXIII. — The present regulations, when they shall have been 
 approved by the Chinese Government, will constitute the definitive rule by which 
 all questions concerning the construction and operation of the railway will be 
 determined. 
 
 Article XXXIV. — At the end of twenty-four * years the Chinese Govern- 
 ment may enter into negotiations with the French Government to take back the 
 line and all properties connected therewith, upon the full payment of the costs of 
 construction, industrial profits, interest paid, and the expenses of every sort 
 attributable to the railway {moyefinant le remboursement integral des frais de 
 construction, de la main d'aiivre industrielle ainsi que des garanfies d'interet 
 payees ct les depenses de toute nature imputahles au cJiemin de fer.) 
 
 If at that time the said costs, values and expenses have been fully repaid 
 by the revenues of the line, the line and all its appurtenances may be turned 
 over without charge into the hands of the Authorities of Yunnan, who will take 
 control of it. For the appraisement of the construction and other expenses, the 
 French budget accounts, established at the time when the negotiations above 
 contemplated may have been entered into, will be taken as a basis for estimating 
 whether or not China would eventually have to make a payment before entering 
 into possession of the railway. 
 
 Done and signed at the Ministry for Foreign Affairs at Peking, in four 
 originals, October 29, 1903 (10th day of the 9th moon of the 29th year of 
 Kuang-Hsu), by Their Excellencies Mr. Lien Fang, Secretary of State at the 
 Ministry for Foreign Afifairs of China, and Mr. Pierre Rene Georges Dubail, 
 Envoy Extraordinary and Minister Plenipotentiary of the French Republic in 
 China. 
 
 (Sgd.) G. Dubail. (Sgd.) Lien Fang. 
 
 * The French text to which the Editor had access gave this figure as viitgt-quatre; 
 there is, however, some reason to doubt whether this was not a typographical error for 
 quatre-vingt {i.e., eighty).
 
 462 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 Doc. Dipl., Chine, Juin — Octobre, jgoo, contains the following comment concerning the 
 Yunnan Railway : 
 
 " By a convention of the 9-10 April, 1898, the French Government secured for itself 
 or for the Company chosen by it, the right to build a railway from Laokay (frontier of 
 Tongking), J;o Yiin-nan Hsien (450 kilometers), and a law of December 25, 1898, authorized 
 the Government of Indo-China to grant a guarantee of interest to the Company which might 
 become the grantees of this line. 
 
 " In conformity with this law, the Governor General of Indo-China signed the 15 June 
 1901, with a s3'ndicate of the principal financial houses of Paris, a convention for the building 
 of the railway from Laokay to Yiin-nan Hsien and for the working of the whole line from 
 Haiphong to Yiin-nan Hsien. 
 
 " This convention was ratified by a law of July 5, 1901. 
 
 " The principal provisions of the convention are the following : 
 
 " The syndicate agrees to organize, within three months from the date of the passage 
 of the law approving the convention between the Government of Indo-China and it, a stock 
 company with a capital of 12,500,000 francs, to work the line from Haiphong to Laokay 
 which is to be built by the Government of Indo-China, and for the purpose of building 
 itself and working the railway from Laokay to Yiin-nan Hsien. The company will receive 
 from the colony a subvention of 12,500,000 francs and also a guarantee of three millions of 
 francs payable during 75 years, for the bonds which it shall have issued for the purpose of 
 building the railway. 
 
 "Last July (1901) the Compagnie fran^aise des chemins de fer de I'Indo-Chine et du 
 YtiiiJian was organized, and the bonds have just been issued. 
 
 " For the purpose of building the line from Laokay to Yiin-nan Hsien, the company has 
 negotiated with the Regie generale des chemins de fer and the Societe de construction des 
 Batignolles, which have formed for this purpose the Socictc de consfntction de chemins de 
 fer indo-chinois with a capital of 4 million. 
 
 "The Societe de construction has sent during the present month (October, 1901), survey 
 parties to Ytin-nan for the final study of the line." 
 
 The line from Hokow to Yunnan Fu was completed in 1910. 
 
 NUMBER 1903/7. 
 
 BELGIUM (Compagnie Generale de Chemins de Fer et de Tramw^ays en Chine) 
 
 AND CHINA. 
 
 Loan Contract, and Operating Contract, for the Kaifengfu — Honanfii Raikvay* 
 
 —November 12, 1903. 
 
 {I)—LOAN CONTRACT. 
 
 Between the Undersigned : 
 
 1 ° The Imperial Chinese Railway Company, represented by H. E. Sheng 
 Kung Pao, Director General, duly authorized by the Chinese Government, 
 
 2° La Compagnie Generale de Chemins de Fer et de Tramways en Chine, 
 
 * Translation of the loan contract, printed in Rockhill, p. 389, with date and signatures 
 supplied from French version printed in Wang, p. 285; operating contract translated from 
 the French text as printed in Wang, p. 315. Loan contract printed also in F. E. Review, 
 vol. 5, p. 145; Kent, 278. 
 
 These contracts were modified by the Lung-Tsing-U-Hai Railway Contract of September 
 24. 1912 (Xo. 1912/11, post). 
 
 The Kaifengfu — Honanfu Railway is also known as the Pienlo Railway.
 
 NUMBER 1903/7: NOVEMBER 12, 1903 463 
 
 represented by Monsieur Armand Roufifart, its delegated Administrator, pro- 
 vided with full powers, 
 
 It has been agreed as follows : 
 
 Article I. — The Director General of the Imperial Chinese Railway Com- 
 pany H. E. Sheng Kung Pao has asked, in a report, the Chinese Government 
 that a line of railway should be built starting from a point called Yung Tse on 
 the Railway line of the Luhan where the latter crosses the River. From that 
 point eastward to Kaifeng the line will be 170 li long and westward to Honan 
 Fu it will cover 250 li. These two branches of the Luhan to be built by a Bel- 
 gian party (groupe) which will make a Loan to build them. 
 
 This proposal was accepted by a decree dated the 30th day of the 10th 
 moon of 25th year of the present reign. 
 
 Monsieur Roufifart, the representative of La Compagnie Generale de 
 Chemins de Fer et de Tramways en Chine, has asked us by letter, to undertake 
 this building, and we sent a Chinese official to accompany him in his preliminary 
 study on the ground. After said study. Monsieur Roufifart estimated the probable 
 cost of these two branches at One Million Pounds Sterling or 25,000,000 
 francs ; and for all other terms the contracts from Peking to Hankow are to be 
 followed.f 
 
 Under date of the 29th day of the 12th moon of the 28th year of the 
 present reign, the Wai-wu Pu wrote to me that I was to discuss the terms of 
 the contract with Monsieur Roufifart, and it asked me to settle the matter as 
 promptly as possible. 
 
 Considering that Monsieur Roufifart has full powers from the Compagnie 
 Generale de Chemins de Fer et de Tramways en Chine to negotiate this business 
 for it, we. Director General of the Imperial Chinese Railway Company, and 
 Monsieur Armand Roufifart representing the Compagnie Generale de Chemins 
 de Fer et de Tramways en Chine, hereby enter into a contract for a loan, the 
 product of which shall be applied to the building of the Railway from Honan 
 Fu to Kaifeng Fu. 
 
 Before signing the contract, the Director General of the Imperial Chinese 
 Railway Company has submitted said contract for Imperial Sanction, and it has 
 been approved under date of October 29th, 1903, that is, the 10th day of the 
 9th moon of the 29th year of the Reign of Kuang Hsii. 
 
 This Decree shall form Annex 1 of the present contract. In virtue of the 
 above the Director General, on account of the Chinese Government, makes a 
 Gold 5% Loan for the sum of 25,000,000 francs or 1,000,000 pounds sterling. 
 This Loan shall be known as the Chinese Government 5% Gold Foreign 1903 
 Loan (Emprtint du Gouvernement Chinois 5% or Exterieur 1903). 
 
 Article II. — This loan shall be represented by 50,000 bonds of 500 francs 
 Gold each. 
 
 These bonds, the text of which is annexed to the present contract (Annex 2), 
 shall be signed in the name of the Chinese Government by the Minister Plenipo- 
 tentiary of China at Brussels. 
 
 t See the loan and operating contracts for the Peking-Hankow Railway, June 26, 1898 
 (No. 1898/13, ante).
 
 464 CHINA TREATIES AND AGREEMENTS 
 
 They shall be delivered in fractional bonds (coupons) of 1 to 2 bonds in 
 such proportion as the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine may request, the total number not to exceed 50,000; the expense of 
 making these bonds shall be charged to the Compagnie Generale de Chemins de 
 Fer et de Tramways en Chine. They shall bear 5% interest a year on the 
 nominal capital payable in gold. 
 
 Interest shall run from the date of payment of the product (of the sale) 
 of the bonds, and shall be payable the 1st January and 1st July of each year. 
 
 Coupons which have become due and have been paid, shall be classed in 
 numeric order by the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine, and at its expense, and it shall then send them to the Imperial Chinese 
 Railway Company at Shanghai to be cancelled. If the returned coupons are lost 
 in transmission, the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine must publish the numbers of the paid and lost coupons in four dif- 
 ferent newspapers, and transmit to the Imperial Chinese Railway Company a 
 declaration stating the loss. 
 
 Article III. — The loan shall be redeemed in twenty years counted from 
 the 10th year of issue, by the method of drawing by lots in the offices of the 
 Compagnie Generale de Chemins de Fer et de Tramways en Chine, in accord- 
 ance with the table annexed to the present contract (Annex 3). The drawings 
 by lot shall take place on the third Wednesday of April in each year. The first 
 drawing shall take place on that date beginning with the tenth year from the 
 date of issue of the loan. 
 
 The numbers of the drawn bonds shall be published in four newspapers at 
 the expense of the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine. 
 
 Article IV. — The bonds drawn by lots shall be paid in gold at their par 
 value on the date on which falls due the coupon following the date of the 
 drawing. Bonds presented for refunding must have attached all coupons still 
 unpaid, and the amount of missing coupons will be deducted from the capital 
 to be reimbursed. Interest on bonds will cease to accrue from the day set for 
 reimbursement. Paid off bonds shall be classified and sent back by and at the 
 expense of the Compagnie Generale de Chemins de Fer et de Tramways en 
 Chine to the Imperial Chinese Railway Company at Shanghai to be cancelled. 
 If these bonds should be lost on the way, the Compagnie Generale de Chemins 
 de Fer et de Tramways en Chine, shall publish the numbers of the paid and lost 
 bonds in four different newspapers, and transmit to the Imperial Chinese Rail- 
 way Company a declaration stating the loss. 
 
 Article V. — The Chinese Government denies itself the right, before the 
 date fixed for the first amortization, to fix a larger amortization, or to refund 
 the whole loan or to convert it. After that date it shall be free to refund the 
 loan at whatsoever time it chooses before the dates of payment, and the refund- 
 ing made all contracts shall be declared annulled. 
 
 Article VI. — Coupons and bonds shall be paid off in francs in the office 
 or offices entrusted with the management of the loan. 
 
 Article VII. — Interest payment and the reimbursement of the bonds pro-
 
 NUMBER 1903/7: NOVEMBER 12, 1903 465 
 
 vided for in the present loan shall be guaranteed by the gross revenues of the 
 Imperial Chinese Government. 
 
 Furthermore in virtue of the authorization already granted by the Chinese 
 Government, and in accord with it, the Imperial Chinese Railway Company, 
 declares that it makes a preferential assignment in favor of the payment of 
 interest and of the capital of the present loan, and that it cedes and assigns in 
 favor of said obligations, all the net receipts of the line from Kaifengfu to 
 Honanfu, after the regular payment of all expenses of management and operat- 
 ing, the whole as elsewhere indicated in an operating treaty concluded between 
 the Imperial Chinese Railway Company and the Compagnie Generale de 
 Chemins de Fer et de Tramways en Chine, said treaty being annexed to and 
 forming an integral part of the present contract. This assignment is made exclu- 
 sively and irrevocably until complete redemption of the bonds of the present 
 contract. 
 
 Article VIII. — After auditing and noting the net receipts, the Imperial 
 Chinese Railway Company shall direct the Compagnie Generale de Chemins de 
 Fer et de Tramways en Chine to deposit these funds in a bank to be chosen by 
 common consent. This bank shall convert into gold, in accordance with the 
 provisions stipulated in the contract made between the Bank, the Imperial 
 Chinese Railway Company and the Compagnie Generale de Chemins de Fer et 
 de Tramways en Chine, and to the best advantage of the Imperial Chinese Rail- 
 way Company, the sums paid it, and up to the full amount needed to insure the 
 service of the loan at the next semi-annual payment. 
 
 These deposits shall continue to be made until the sum needed for the 
 integral service of the loan on the following date of payment has been realized 
 in GOLD, and in such manner that said service is insured at least three months 
 before the date of the semi-annual payment. 
 
 The bank designated for the receipt of these sums shall use them to the 
 best advantage of the Imperial Chinese Railway Company. The account in 
 which these sums shall be carried shall be charged twenty days before the date 
 of payment with the sums needed for the service of the loan, interest, amortiza- 
 tion, money expenses, difference of exchange and the commissions provided for 
 by the present contract. 
 
 Article IX. — The bank in which shall be deposited the loan funds shall 
 have the right without further authorization to levy on said funds on deposit 
 the amount of the coupons to be paid during the construction period; but it 
 shall advise the Director General as these payments are made. 
 
 Article X. — To insure the guarantee just given to the bonds of the present 
 contract, the Imperial Chinese Railway Company grants these bonds a special 
 first-class guarantee on the Railway from Kaifengfu to Honanfu, on its fixed 
 and rolling stock and its receipts. 
 
 This special assignment is accepted in the name of the bondholders by the 
 Compagnie Generale de Chemins de Fer et de Tramways en Chine. In case of 
 non-fulfillment of the obligations assumed by the Imperial Chinese Railway Com- 
 pany in the present contract, the Compagnie Generale de Chemins de Fer et de 
 Tramways en Chine shall have full power to take such action against said
 
 466 CHINA TREATIES AND AGREEMENTS 
 
 property as may result from this special assignment, and in that case, the pro- 
 visions of the operating treaty hereto annexed, must always be strictly observed. 
 
 Article XI. — The preceding provisions do not conflict with the personal 
 responsibility of the Chinese Government concerning the present loan, as said 
 responsibility is specified in Article VII. 
 
 Consequently the Imperial Chinese Government pledges itself to make up 
 the sum necessary for the service of the loan in gold, in case the sums derived 
 from the net revenues of the line from Kaifengfu to Honanfu and paid in by 
 the Compagnie Generale de Chemins de Fer et de Tramways en Chine, entrusted 
 with this management by the Imperial Chinese Railway Company, to the bank 
 chosen, should not produce after conversion into gold and three months before 
 the date of the following semi-annual payment, an amount sufficient to insure 
 said service. 
 
 In this case, and on demand made it, the Imperial Chinese Government 
 shall be bound to put at the disposal of the Compagnie Generale de Chemins de 
 Fer et de Tramways en Chine sixty days before the following semi-annual pay- 
 ment falls due, in gold or in securities of sufficient amount to produce it in 
 GOLD, the sum stated to it as being needed to make up said service. 
 
 Article XII. — From the sums derived from the deposits by the Compagnie 
 Generale de Chemins de Fer et de Tramways en Chine, entrusted with that duty 
 by the Imperial Chinese Railway Company, or from the supplementary sums 
 paid by the Chinese Government, the Compagnie Generale de Chemins de Fer 
 et de Tramways en Chine shall, in proper season, place at the disposal of the 
 firms entrusted with the management of the loan, the amounts necessary therefor 
 according to the needs as determined during the preceding half year. 
 
 Article XIII. — The Imperial Chinese Government will pay to the firms 
 entrusted with the management of the loan, a commission of ^% that is to say 
 25 francs for 10,000 francs on the amount of the coupons paid, and a commis- 
 sion of %% on the amount of bonds drawn by lots or redeemed under antici- 
 pated refundings. The amount of this allowance shall be settled every six 
 months ; and, in case of insufficiency, it will be paid at once by the Imperial 
 Chinese Government. 
 
 Article XIV. — The Imperial Chinese Government binds itself to respect 
 and cause to be respected the privilege provided for in favor of the bonds under 
 Article IX of the present conventions, and to hold free of all Chinese taxation 
 whatsoever the bonds and coupons as well as all operations whatsoever connected 
 with the management (service) of the loan. The preceding (provision) con- 
 cerns the bonds and coupons of the loan and the operations relating to the 
 management of the loan, and which shall be exempt from all taxation. But the 
 taxes now in force in China such as land rent and the taxes which the Chinese 
 Government may impose hereafter, such as a stamp tax levied on the general 
 commerce of China, the Railway provided for in the present contract and its 
 traffic shall bear them. It being understood that no exceptional law shall be 
 passed for the Railway in question, and that the rule which shall be applied to 
 it shall be that of all Chinese Railways. 
 
 Article XV. — Coupons which have not been presented for cashing within
 
 NUMBER 1903/7: NOVEMBER 12, 1903 467 
 
 five years after the date on which they fall due, shall be lost by limitation 
 (prescrifs) in favor of the Imperial Chinese Government. The limit of time 
 shall be of 30 years in case of redeemed bonds. 
 
 On the death of any bondholder of the present loan, the bonds shall be 
 transferred and shall belong to the heirs, in conformity with the inheritance laws 
 in force in the country of the bondholder. 
 
 Payment of coupons and refunding of bonds shall take place in time of 
 peace and in time of war to the holders whether they be subjects of friendly 
 states or of hostile ones. In case of loss, theft or destruction of bonds of the 
 present loan, the Imperial Chinese Government will authorize the Compagnie 
 Generale de Chemins de Fer et de Tramways en Chine to replace the bonds by 
 new ones at its own expense, whenever it shall have satisfactory evidence of 
 the loss or destruction of the bonds and title deeds {des titres et des droits) of 
 the claimants. 
 
 Article XVI. — The Imperial Chinese Government through its representa- 
 tives, shall at once take steps and shall furnish the necessary documents to secure 
 the official listing (of the bonds) in the Bourses of the capitals of Europe. 
 
 Article XVII. — The whole amount of the present loan amounting to 
 twenty five millions of francs, represented by 50,000 bonds of 500 francs each, 
 possession to be had from the date of payment, is bought outright (pris ferme) 
 by the Compagnie Generale de Chemins de Fer et de Tramways en Chine, at 
 the price of 90%, that is for the sum of twenty two millions five hundred thou- 
 sand francs. 
 
 If on the date of issue, the bonds for the loan for the Hankow-Peking 
 Railway should be quoted below 482.50 francs inclusive of the interest payable 
 {en tenant contpte de la jouissance) the two contracting parties would have the 
 right to cancel the present contract. 
 
 Article XVIII. — The Compagnie Generale de Chemins de Fer et de Tram- 
 ways en Chine will deposit the full amount of the proceeds of this purchase in 
 the banks designated by it after agreement with the Director General of the 
 Imperial Chinese Railway Company, on delivery of the 50,000 bonds bought out- 
 right (achetees fermes). 
 
 The sum needed for the building of a fixed length of line shall be transferred 
 to Shanghai and deposited in such bank as is mutually agreed upon. 
 
 This bank shall convert into taels the sum in accordance with the instruc- 
 tions of the Director General of the Imperial Chinese Railway Company. A 
 sum on the available proceeds of the loan, at least Moth of the proceeds of the 
 conversion into taels, shall be deposited in a bank in China, to be chosen by the 
 Director General of the Imperial Chinese Railway Company, and under his sole 
 responsibility, and this deposit shall be applied to expenses at such times as the 
 rates for the conversion of European values into taels may be unfavorable. It 
 being well understood that the depository establishments shall only be required 
 to deliver these sums under the conditions and limitations mentioned in Article 
 XX here below. 
 
 The depository bank shall use the sums available in the most advantageous 
 manner for the Imperial Chinese Railway Company, in the same manner as the
 
 468 CHINA TREATIES AND AGREEMENTS 
 
 available funds deposited in foreign banks shall also be made to produce interest. 
 
 Article XIX. — The construction work for the whole of the line shall be 
 under the direction of the chief engineer chosen by the Compagnie Generale de 
 Chemins de Fer et de Tramways en Chine, entrusted with this work by the 
 Imperial Chinese Railway Company and for its account. 
 
 The chief engineer shall prepare all studies, plans, tracings, estimates for 
 the whole of the line ; he shall direct the carrying out of all works and shall order 
 the materials, tools and supplies necessary to insure the regular working of the 
 line. Nevertheless all these operations must be submitted for the approval of 
 the Director General of the Imperial Chinese Railway Company. 
 
 As the line from Kaifengfu to Honanfu is a feeder (couHiient) of the 
 Luhan, the width of the rails and the general methods of operating must be the 
 same as on the Luhan. 
 
 With the exception of the supplies of material and the expenses of all kinds 
 duly authorized by an act signed by the Director General of the Imperial Chinese 
 Railway Company and paid at Brussels, the Imperial Chinese Railway Company 
 shall place at the disposal of the Compagnie Generale de Chemins de Fer et de 
 Tramways en Chine from the proceeds of the loan, the sums necessary to make, 
 without any exceptions, all necessary payments for the carrying out of the works, 
 the salaries of the staff under its orders, and in general, for all expenses of 
 whatsoever kind. But these payments must always be previously approved by 
 the representatives of the Director General. 
 
 After the signing of the present contract, the Imperial Chinese Railway 
 Company directs the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine to choose an engineer with experience in construction work who shall 
 direct the construction of the line and prepare studies, plans, tracings, and speci- 
 fications for the whole line, and the whole shall be submitted for the approval 
 of the Director General of the Imperial Chinese Railway Company. Said chief 
 engineer shall be appointed, on recommendation of the Compagnie Generale de 
 Chemins de Fer et de Tramways en Chine, by the Director General of the Impe- 
 rial Chinese Railway Company, to whom he is directly responsible. 
 
 The Director General of Chinese Railways shall fix the amount of his salary, 
 after agreement with the Compagnie Generale de Chemins de Fer et de Tram- 
 ways en Chine, 
 
 The chief engineer shall prepare a tabulated plan of the European stafif 
 necessary for the building, and shall submit it for the approval of the Director 
 General of the Imperial Chinese Railway Company. This stafif shall be engaged 
 by the Compagnie Generale de Chemins de Fer et de Tramways en Chine, which 
 shall put it under the order of the chief engineer. 
 
 As regards the Chinese stafif whether technical or other, the Director General 
 of the Imperial Chinese Railway Company reserves to himself the right to choose 
 it, and to put it under the orders of the chief engineer. No Chinese or European 
 employe shall be engaged without the assent of the Director General of the 
 Imperial Chinese Railway Company. It is understood that Chinese subjects 
 who have made special studies or who have acquired sufficient practical knowl- 
 edge, may be presented by the Director General of the Imperial Chinese Rail-
 
 NUMBER 1903/7: NOVEMBER 12, 1903 469 
 
 way Company to the chief engineer, who shall employ them on the works under 
 the same conditions as European employes. As to the technical service, the 
 Chinese staff as well as the European staff shall be under the direct orders of 
 the chief engineer. But the Director General reserves the right to demand the 
 instant dismissal of any agent of whatever nationality on condition that the 
 demand for dismissal is based on serious reasons. 
 
 The Director General likewise reserves the right to depute on the works a 
 special Representative with full powers. The salary of said Representative, as 
 also the running expenses of the head office at Shanghai shall devolve on the 
 Kaifengfu to Honanfu railway concern. 
 
 Orders for materials, tools and furniture for the construction of the line 
 and for its orderly working, shall be submitted through the chief engineer to 
 the Director General for approval. 
 
 Orders as well as contracts for work shall be drawn up, after mutual agree- 
 ment, by the chief engineer and the representative of the Director General. 
 
 Statements of the sums paid for supplies of materials and expenditures of 
 every description settled in Europe shall be sent with all vouchers and 
 explanatory documents to the Imperial Chinese Railway Company every three 
 months. 
 
 Every month the chief engineer, in agreement with the Imperial Chinese 
 Railway Company, shall request the bank in which are deposited the loan funds, 
 to pay the amount necessary for the general expenses of the undertaking during 
 the month following, to an agent chosen by the Director General of the Imperial 
 Chinese Railway, and against receipt duly signed by the latter and under the 
 responsibility of the Director General of the Imperial Chinese Railway Com- 
 pany. This agent shall not surrender any of the funds except under the signa- 
 ture of both the chief engineer and the representative of the Director General. 
 
 The Compagnie Generale de Chemins de Fer et de Tramways en Chine shall 
 not therefore be obliged to meet any expense for the building out of its own 
 money. 
 
 Said Company shall endeavor to finish the work on the line within two 
 years from the date on which the Railway from Hankow to Peking shall be 
 opened to traffic as far as the Yellow River, because materials will then be easily 
 transported. 
 
 It is well understood that the Imperial Chinese Railway Company will not 
 pay the expenses of the office in Brussels, except the necessary expenses for 
 the studies, orders, receipt of materials, living of staff; consequently the personal 
 expenses of the directors, allowances (indemnites), etc., will continue to be 
 chargeable to the Compagnie Generale de Chemins de Fer et de Tramways en 
 Chine. 
 
 Article XX. — The price paid for the above mentioned bonds being exclu- 
 sively assigned to the building of the railway from Kaifengfu to Honanfu, the 
 Compagnie Generale de Chemins de Fer et de Tramways en Chine, or the bank 
 having received the deposits, would have the right not to give up these funds 
 in case one of the deposits should not have been applied as provided for, and 
 also in case the delegates of the Compagnie Generale de Chemins de Fer et de
 
 470 CHINA TREATIES AND AGREEMENTS 
 
 Tramways en Chine were not enabled by the Imperial Chinese Railway Com- 
 pany to continue the direction of the construction works. 
 
 The balance on hand, if any should exist after the completion of the works, 
 shall be held subject to the order of the Imperial Chinese Railway Company. 
 After the completion of the works and the organization of traffic, if the funds 
 of the issue should still show a (credit) balance, said balance shall be paid in 
 full to the Imperial Chinese Railway Company, who shall remit it to the Chinese 
 Government. 
 
 If the loan provided for in the present contract should not be enough to 
 finish the line or to organize traffic, the Compagnie Generale de Chemins de Fer 
 et de Tramways en Chine is authorized by the present (contract) to make a 
 further loan on the same terms as in the present contract without being obliged 
 to make a new contract. 
 
 Article XXI. — Within nine months following the date of the signing of 
 the present contract, the Compagnie Generale de Chemins de Fer et de Tram- 
 ways en Chine shall buy outright from the 50,000 bonds a first lot for 12,500,000 
 francs at the price of 90%, for the purpose of building the first portion of the 
 line. The balance of the issue, or 12,500,000 francs, for the building of the 
 second section of the line, shall be taken at the same price and in one or two 
 installments by (public) subscription or otherwise. But it remains well under- 
 stood that the expense of issuing the loan falls on the Compagnie Generale 
 de Chemins de Fer et de Tramways en Chine. 
 
 If the Compagnie Generale de Chemins de Fer et de Tramways en Chine 
 should begin simultaneously the building of both sections of the road on either 
 side of the Luhan line, it shall have the right to make but one issue for the 
 whole loan. 
 
 Article XXII. — Preliminary studies of the line after the signing of the 
 present contract are at the expense of the Imperial Chinese Railway Company, 
 and are to be provided for out of the loan funds. Said studies of the line shall 
 be provided for from the revenues derived from the loan, -and they shall begin 
 on the section running from Kaifengfu to the junction with the Hankow- 
 Peking line. They shall afterwards be made over the other sections. From 
 the Luhan junction to Honanfu will constitute the second section. 
 
 The proceeds from the first purchase of bonds shall be applied to the 
 building of the portion of line from Kaifengfu to the Luhan junction. 
 
 The preliminary studies shall begin within nine months from the date of 
 signing the present contract. 
 
 The Compagnie Generale de Chemins de Fer et de Tramways en Chine shall 
 deposit one million francs to the order of the Imperial Chinese Railway Com- 
 pany. This sum is considered as an advance on the loan for the Railway from 
 Kaifengfu to Honanfu, and is to be specially devoted to expenses for study of 
 the line. 
 
 The depository bank shall not surrender this sum except in accordance with 
 the provisions of Article XX of the present contract. 
 
 This advance shall produce an annual 6% interest without rate of issued 
 
 t I.e., on its par value, presumably.
 
 NUMBER 1903/7: NOVEMBER 12, 1903 471 
 
 but it shall be refunded with the proceeds of the first sale of 12,500,000 francs, 
 which must be issued within nine months from the signing of the present con- 
 tract ; a portion of the proceeds of this sale will be used to refund the advance 
 first made. 
 
 Article XXIII. — Should the Compagnie Generale de Chemins de Fer et 
 de Tramways en Chine finish satisfactorily the work for the Railway from 
 Kaifengfu to Honanfu, complying strictly with all the provisions of the present 
 Contract, and should the Chinese Government decide to extend the Railway from 
 Honanfu to Singanfu, the Director General of the Imperial Chinese Railway 
 Company agrees to come to an understanding preferably with and to grant an 
 option for the Loan necessary for said undertaking to the Compagnie Generale 
 de Chemins de Fer et de Tramways en Chine, in conformity with the provi- 
 sions and conditions of the present Contract. 
 
 It is clearly understood that if the Chinese Government should be able to 
 raise the capital necessary for the construction of the extension, either from its 
 own resources, or from funds gathered by means of shares subscribed by its 
 own nationals, the Compagnie Generale de Chemins de Fer et de Tramways en 
 Chine would not be entitled to avail itself of this Article. 
 
 Article XXIV. — The present contract shall only be binding on the Com- 
 pagnie Generale de Chemins de Fer et de Tramways en Chine if it is assumed 
 that, exclusive of what may be furnished and produced in China, and bought 
 at the same prices as the European product delivered in China, the total amount 
 of materials and supplies necessary for the building and operating of the rail- 
 way from Kaifengfu to Honanfu will be asked of and ordered from the Com- 
 pagnie Generale de Chemins de Fer et de Tramways en Chine, which will fill 
 these orders under the best possible terms. 
 
 The carrying out of this provision of this contract by the Imperial Chinese 
 Railway Company will be proven by the orders for materials for each of the 
 sections of line undertaken. 
 
 Orders from the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine will be free from all duties or from likin on importation or in transit 
 across Chinese territory. 
 
 If proof of the granting of this franchise is not forthcoming before the end 
 of the month following the date on which the Belgian Government should inform 
 the Compagnie Generale de Chemins de Fer et de Tramways en Chine that it 
 has received notification concerning Article XXVIII, said Company reserves the 
 right not to consider itself bound. 
 
 It reserves the same right if extraordinary events should take place, such as 
 a war, or if there were absolute impossibility to secure subscribers for the 
 bonds. 
 
 Should on its side the Compagnie Generale de Chemins de Fer et de Tram- 
 ways en Chine not fulfil within the given delays the obligations it has assumed by 
 the present contract, it shall become annulled. The Imperial Chinese Railway 
 Company would be at liberty to enter into contract with whomsoever it chose, 
 and to give up the services of the chief engineer. 
 
 It is expressly agreed that the works and mines under the control of H. E.
 
 472 CHINA TREATIES AND AGREEMENTS 
 
 Sheng Kung-Pao shall have a preferential right for all orders necessary for 
 the building and operating of the railway which is the object of the present con- 
 tract. The word preference applies to equality of specifications and prices includ- 
 ing transportation, as if the orders had to be filled abroad and delivered in 
 China. 
 
 All orders made in China shall be free of duties and of likin on Chinese 
 territory. 
 
 Article XXV. — In case of disagreement between the Compagnie Generale 
 de Chemins de Fer et de Tramways en Chine or its delegates and the Imperial 
 Chinese Government or the Imperial Chinese Railway Company, such conflicts 
 or disagreements shall be settled by the decision of a member of the Ministry 
 of Foreign Affairs and the Minister of Belgium in China. In case of non-agree- 
 ment, the third arbitrator shall be the Dean of the Diplomatic Body at Peking. 
 
 Article XXVI. — Should the Minister of Belgium request the Chinese 
 Minister of Foreign Aflfairs, the latter shall be bound to give cognizance of the 
 title (notifier le titre) to the Minister of the foreign country mentioned to him 
 as subscribing to the issue of bonds. 
 
 Article XXVII. — The present contract is drawn up in triplicate, one copy 
 for the Chinese Government, one for the Imperial Chinese Railway Company 
 and the third for the Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine. 
 
 In case of doubt or disagreement, the French text alone shall be authoritative 
 in interpreting the present contract. 
 
 The present contract shall be submitted through the proper channel for the 
 Imperial Sanction, and when that shall have been obtained, the Minister of 
 Foreign Affairs shall notify, by official despatch, the Representative of Belgium 
 at Peking, and in case of necessity, the Representative at Peking of the foreign 
 country to whom the title shall be notified. 
 
 Article XXVIII. — The Compagnie Generale de Chemins de Fer et de 
 Tramways en Chine has been organized at Brussels the 26th March, 1900, under 
 Belgian law (regime beige) and with Belgian capital. 
 
 The Imperial Chinese Railway Company only recognizes for the purposes 
 of the present contract the above mentioned contracting Belgian Company, which 
 shall never have the right to transfer the present contract to other nations nor 
 to persons of another nationality than Belgian. 
 
 Article XXIX. — The present contract includes the right to build little 
 branch lines from the line from Kaifengfu to Honanfu for the purpose of secur- 
 ing traffic and establishing useful relations. These branch lines shall only be 
 built after agreement with the Director General and the Governor of Honan and 
 in accordance with plans approved by them. 
 
 Done at Shanghai, November 12, 1903 (24th day of 9th moon of 29th year 
 of Kuang Hsu). 
 
 (Sgd.) Arm. Rouffart. 
 
 (Sgd.) Sheng Kung Pao.
 
 NUMBER 1903/7: NOVEMBER 12, 1903 473 
 
 {II)— OPERATING CONTRACT. 
 
 Between the undersigned : 
 
 (1) The Imperial Chinese Railway Company, represented by His Excel- 
 lency Sheng Kung Pao, Director General, and 
 
 (2) The Compagnie Generale de Chemins de Fer et de Tramways en Chine, 
 represented by Mr. A. Rouffart, its delegated Administrator, 
 
 It has been agreed as follows : 
 
 Article I. — The Imperial Chinese RaiTway Company, duly authorized by 
 the Imperial Chinese Government, entrusts the Compagnie Generale de Chemins 
 de Fer et de Tramways en Chine, which will appoint its delegates for the pur- 
 pose, with the directing, managing and operating of the line from Kaifengfu to 
 Honanfu, for which the Imperial Chinese Railway Cornpany holds the con- 
 cession. 
 
 Article II. — The Compagnie Generale de Chemins de Fer et de Tramways 
 en Chine will undertake the operation of the line upon completion of the several 
 sections, after their definitive acceptance by the Imperial Chinese Railway 
 Administration ; each section having to be completely equipped and supplied in 
 advance with all material necessary for its operation, as well as with supplies, 
 tools and rolling-stock. 
 
 The Compagnie Generale de Chemins de Fer et de Tramways en Chine or 
 the delegates it may have appointed in accordance with the provisions of 
 Article I will organize the service, will have the right to engage the stafif — over 
 which it will have an absolute right of discharge or dismissal, — will fix their 
 salaries according to a tabulated plan of organization approved in advance by 
 the Director General of the Imperial Chinese Railway Company, will order what- 
 ever is necessary for the operation or upkeep of the line, will fix the tariffs 
 within the terms of the contracts for the concession, will receive the revenues 
 of all kinds, and will make the payments for the expenses of operation and 
 management to the Chinese Railway Company. The foregoing steps to be taken 
 in respect to the operation of the line will be submitted in advance to the judg- 
 ment of the Director General of the Imperial Chinese Railways, who will have 
 the most extensive right of control over the revenues and expenditures, and who 
 will for that purpose appoint delegates, especially an operating manager, a 
 cashier, a chief accountant and a chief interpreter to represent the Imperial 
 Chinese Railway Company with the European engineers, in order to exercise 
 effectively this right of control. The station-masters will be appointed by agree- 
 ment between the operating manager and the Chinese Director. 
 
 The salaries of these delegates will be paid out of operating expenses, and 
 the Chinese Director will sign jointly with the Engineer-in-Chief all documents 
 of account without exception. 
 
 If any employee engaged in the operation by the Compagnie Generale de 
 Chemins de Fer et de Tramways en Chine, whatever his nationality, is found 
 guilty of bad conduct, insubordination, ill-treatment of the Chinese, or disrespect 
 towards the Chinese authorities, the Chinese Railway Company need only give
 
 474 CHINA TREATIES AND AGREEMENTS 
 
 notice of it to the Compagnie Generale de Chemins de Fer et de Tramways en 
 Chine in order that it may immediately discharge the guilty person. 
 
 The Chinese stafif as deemed necessary for operating will be chosen and 
 appointed by the Chinese Director, who will offer them for approval by the 
 Engineer-in-Chief and place them under his orders. 
 
 The acquisition of all new material, and new work of improvement or exten- 
 sion of the line or of the stations, which may be necessary after the opening of 
 each section to traffic, will be entirely at the expense of the operating account. 
 The orders required for the repair and upkeep of the line will so far as possible 
 be given to the factories and mines under the control of H. E. Sheng Kung Pao, 
 which will have for such orders a right of preference over European factories 
 and mines upon the same prices and terms as though the orders had been given 
 in Europe and delivered in China. 
 
 Article III. — In case of war with any nation whatsoever, or of revolution 
 in China, the transportation of troops, munitions and provisions for the Chinese 
 Army will have precedence over all commercial traffic. This transportation will 
 be charged for at a reduction of 50% from the tariff. It will be conducted in 
 accordance with the orders of the Director General of the Chinese Railways. It 
 will moreover be forbidden to transport anything which might be of a character 
 to injure the Chinese Government. In case the Chinese Government or the local 
 authorities should need trains for important purposes, the Engineer-in-Chief 
 would arrange for such trains in cooperation with the Chinese Director delegated 
 by the Director General of the Imperial Chinese Railway Company. Free tickets 
 may be given only by agreement between the Engineer-in-Chief and the Chinese 
 Director. 
 
 Article IV. — From the net profits of operation remaining available after 
 the payment of all operating expenses, the Compagnie Generale de Chemins de 
 Fer et de Tramways en Chine will retain such amounts as are necessary to 
 assure each half-year, at least three months before due-date, the service of the 
 loan contracted by the Chinese Government for the enterprise. 
 
 This retention will be made so long as the said loan shall not have been 
 wholly repaid. The proceeds of this retention will be paid over each month 
 into the hands of the Compagnie Generale de Chemins de Fer et de Tramways en 
 Chine or into the hands of the Bank that the latter may have designated, which 
 must turn over a receipt to the Chinese Director, who will notify the Director 
 General of the amounts of these payments. 
 
 The bank will make the most favorable conversion into gold of the amounts 
 paid over to it, to be used for the service of the loan ; the amount in gold 
 so converted will be communicated to the Director General by the Chinese 
 Director. 
 
 Whenever the service of the loan may have been assured by means of the 
 sums thus paid over, 10% of the surplus will be set aside, which will be devoted 
 to the establishment of a reserve fund to make repairs or to rebuild as required 
 in order to assure operation. Such balance as then remains available out of 
 the operating revenues will then be paid over to the Chinese Railway Company. 
 Whenever the loan to which the present Contract relates shall have been repaid
 
 NUMBER 1903/7: NOVEMBER 12, 1903 475 
 
 in full according to the conditions stipulated, the Compagnie Generale de 
 Chemins de Fer et de Tramways en Chine or its delegates must hand over the 
 entire line, with all its materials and appurtenances, in good condition and 
 in regular operation, to the Imperial Chinese Railway Company, which will 
 operate it, itself. 
 
 Article V. — The term of the present Operating Contract is fixed at thirty 
 years, beginning with the date of the signature of the present Contract. This 
 term, however, would be prolonged as of course (i.e., de plein droit) in the 
 event that the loans should not at that time have been completely amortized. 
 
 That prolongation would continue so long as such complete amortization had 
 not been effected. The present Operating Contract would be cancelled from the 
 date of the full repayment of the loan, even before the due period. 
 
 Article VI. — During the whole period of the operation of the line by the 
 Belgian Company, the Imperial Chinese Railway Company grants to it a partici- 
 pation of 20% in the net profits of the railway from Kaifengfu to Honanfu 
 (after deducting the costs of operation, the amounts necessary for the service of 
 interest and amortization of the loan, and the reserve funds) as determined by 
 mutual agreement after each accounting period. 
 
 If the Chinese Posts desire to dispatch letters by this line, the Company 
 must prepare a car for the purpose, and all the stations along the line must have 
 offices for the postal service, arranged in conformity with the regulations of the 
 Chinese Posts. The nation to which the Compagnie Generale de Chemins de 
 Fer et de Tramways en Chine belongs may not establish along the line any 
 postal service of its own. 
 
 Article VII. — In case of conflict or difference between the Chinese Gov- 
 ernment or the Imperial Chinese Railway Company and the Compagnie Generale 
 de Chemins de Fer et de Tramways en Chine, these conflicts or differences will 
 be adjusted as provided in Article XXV of the Loan Contract. 
 
 Article VIII. — If the operating revenues should not be sufficient to cover 
 the costs, the Chinese Railway Company would have to furnish the funds neces- 
 sary to insure the regular operating service under normal conditions. These 
 supplementary funds must be considered as advances, and so soon as the receipts 
 show an available balance, after the payment of all costs, they should be at once 
 repaid. 
 
 Article IX. — The materials and all supplies that the Compagnie Generale 
 de Chemins de Fer et de Tramways en Chine may need for the operation and 
 for the upkeep and repair of the line will be exempted from all customs and likin 
 duties. 
 
 Article X. — The present Contract is drawn up in triplicate, one copy 
 for the Chinese Government, one for the Chinese Railway Company, and the 
 third for the Compagnie Generale de Chemins de Fer et de Tramways en Chine. 
 
 In case of doubt or difference, the French text alone will be authoritative 
 for its interpretation. 
 
 The present Contract must be submitted through the proper channel for the 
 Imperial sanction, and when that sanction has been obtained, the Minister for 
 Foreign Affairs must give notice thereof by official dispatch to the representative
 
 476 CHINA TREATIES AND AGREEMENTS 
 
 of Belgium in Peking, and in case of necessity, to those of the foreign countries 
 which may have taken part in the subscription to the bonds. 
 
 Done at Shanghai, November 12, 1903, that is, the 24th day of the 6th 
 moon of the 29th year of the Reign of Kuang Hsii. 
 
 (Sgd.) Arm. Rouffart. (Sgd.) Sheng Kung Pao. 
 
 NUMBER 1904/1. 
 
 CHINA. 
 Customs Regulations for the Port of Kongmoon* — March 25, 1904. 
 
 1. — All vessels trading at Kongmoon are subject to, and will be treated in 
 accordance with, the West River Regulations, 1904, and, where these do not 
 apply, with ordinary Customs Regulations and existing Treaties. Inland-waters 
 steamers will comply with the Inland Waters Steam Navigation Regulations. 
 
 2. — For shipment and discharge of cargo, vessels, including inland-waters 
 steamers, must take up the berths in the harbour assigned by the Harbour Mas- 
 ter, and may not move therefrom without his permission. The harbour limits of 
 the Port are : — 
 
 Soiith-zuest of Kongmoon town: within a line drawn east and west 
 
 through the Wen-wu Temple. 
 In the West River, 'east of Kongmoon Creek: within a line drawn north- 
 east through Li-yu Hill. 
 In the West River, zvest of the Kongmoon Creek: within a line drawn 
 south-west through the Chih-shan Village Jetty. 
 Steamer Anchorage. — In West River, opposite I.M. Customs, adjoining the 
 mouth of the Kongmoon Creek. Cargo-boats, sampans, etc., are forbidden to 
 approach incoming vessels before they are properly moored. 
 
 3. — Cargo-boats must be registered at the Custom House, and their numbers 
 conspicuously painted on them in Chinese and in English. 
 
 4. — The landing and shipment of cargo or ballast, and passengers and their 
 luggage, may only take place between 6 a.m. and 6 p.m., and cannot go on either 
 at night or on Sundays and holidays without special permission. Cargo landed, 
 shipped, or transhipped without a Permit is liable to confiscation. 
 
 5. — The Manifest must contain an account of the marks, numbers, and 
 contents of every package on board. For exhibiting a false Manifest the master 
 is liable to fine. Goods found on board not specified on the Manifest are liable 
 to confiscation. 
 
 * Text as published with the Inspector-General's Circular No. 1235 (Imperial Maritime 
 Customs: II — Special Series; No. 28; published in 1905). 
 
 See Article 8, Section 12, and Article 10, British Commercial Treaty of 1902 (No. 
 1902/7, ante).
 
 NUMBER 1904/1 : MARCH 25, 1904 477 
 
 6. — On entry and upon receipt of Consular Report or River Pass, together 
 with the Manifest of the import cargo, accompanied by Tonnage Dues Certificate, 
 and, if from a Treaty Port, Cargo Certificate, and on consignees applying, speci- 
 fying on their applications in Chinese and English, the nature of the goods, the 
 marks and numbers, weight, value, etc., Permits will be issued authorising the 
 discharge of consignments — 
 
 (a.) Into registered cargo-boats, which must repair to the Custom 
 House direct for examination, after which Duty Memos, will be 
 issued and, on payment of Duty, the goods will be released ; or 
 (b.) Under approved guarantee into godowns or hulks, approved of by 
 the Customs, where they will be examined, after which Duty 
 Memos, will be issued and, on payment of Duty, the goods will be 
 released. 
 
 7. — Goods for export must be sent to the Customs Jetty for examination, 
 accompanied by the shipper's Application (giving the required particulars as to 
 the nature of the goods, the marks and numbers, weight and value, etc.) for a 
 Shipping Permit. After examination. Duty Memos, will be issued and, on pay- 
 ment of Duty, Shipment Permits will be issued. 
 
 8. — The landing and shipment of cargo having been completed, and all Dues 
 and Duties having been paid, the Customs Clearance will be issued, and the ves- 
 sel will be entitled to the return of her papers and may then proceed. The Cus- 
 toms will be at liberty to seal the hatches and place Customs ofificers on board 
 to accompany vessels up and down the River. 
 
 9. — Cargo for which a Shipment Permit has been issued, but which cannot 
 be received on board, must be reported and await Customs examination before 
 being relanded. 
 
 10. — Munitions of war may not be landed until a Munitions Special Permit 
 from the Customs has been obtained. Vessels arriving at this Port and having 
 on board, as cargo, any explosive or the specially prepared constituents of such, 
 shall anchor east of Li-yii Hill, in the West River, outside of the harbour 
 limits, shall fly a red flag, and shall abide by the instructions received from 
 the Customs concerning the discharge of the same. 
 
 11. — In the case of Foreign goods from abroad to pay Duty, the importer 
 may produce his bona fide invoice; if the invoice does not include freight and 
 insurance, 10 per cent, will be added to the invoice value in the case of goods pay- 
 ing ad valorem Duty, but the Customs reserve the right not to accept invoices 
 as a statement. 
 
 12. — Chartered junks are only available for carrying Foreign-owned cargo 
 from Treaty Port to Treaty Port, and must take out special papers at the Cus- 
 toms in exchange for properly executed and approved Bonds. 
 
 13. — Masters of vessels shall not permit ballast or ashes to be thrown over- 
 board. 
 
 14. — No buoy may be laid down without the sanction of the Harbour Mas- 
 ter and his approval of the moorings by which it is to be held in position. The 
 Harbour Master will be at liberty to moor such vessels at unoccupied buoys as he 
 may see fit.
 
 478 CHINA TREATIES AND AGREEMENTS 
 
 15. — Steamers on entering the harbour must go slow. 
 
 16, — The blowing of steam-whistles or syrens, except for the purpose of 
 signalling in accordance with the Regulations for Preventing Collisions at Sea, 
 or for the purpose of warning vessels of danger, is forbidden. 
 
 17. — Masters of vessels are requested to furnish the Harbour Master's Office 
 with any information they may possess relative to any new danger, such as rocks, 
 shoals, etc., or any changes in the channels of the River that they may have dis- 
 covered. 
 
 18. — The Custom House will be open for the transaction of general business 
 from 10 A.M. to 4 p.m., Sundays and holidays excepted. All export Manifests and 
 Applications for cargo to be shipped the same day should be in the office not later 
 than 3 p.m. All communications regarding Customs business should be ad- 
 dressed to the Commissioner of Customs. 
 
 The above Regulations are open to revision when and if necessary. 
 
 (Signed) F. W. Maze, 
 
 Acting Commissioner. 
 Custom House, 
 Kongmoon, 25th March, 1904. 
 
 NUMBER 1904/2. 
 
 GREAT BRITAIN AND CHINA. 
 
 Convention respecting the employment of Chinese labour in British colonies and 
 
 protectorates.*— May 13, 1904. 
 
 Whereas a Convention between Her Majesty Queen Victoria and His 
 Majesty the Emperor of China was signed at Peking on the 24th October, 1860, 
 by Article V of which His Imperial Majesty the Emperor of China consented 
 to allow Chinese subjects, wishing to take service in British Colonies or other 
 parts beyond the seas, to enter into engagements with British subjects, and to 
 ship themselves and their families on board of British vessels at the open ports 
 of China in conformity with Regulations to be drawn up between the two 
 Governments for the protection of such emigrants : 
 
 And whereas the aforesaid Regulations have not hitherto been framed, His 
 Majesty the King of the United Kingdom of Great Britain and Ireland and of 
 the British Dominions beyond the Seas. Emperor of India, and His Majesty the 
 Emperor of China have accordingly appointed the following as their respective 
 Plenipotentiaries, that is to say : — 
 
 His Majesty the King of the United Kingdom of Great Britain and 
 
 * Text as printed in British Treaty Series (1904), No. 7; printed also in British Parlia- 
 mentary Paper, Africa (1904), No. 6; Customs, Vol. I, p. 643; Hcrtslet, p. 189.
 
 NUMBER 1904/2: MAY 13, 1904 479 
 
 Ireland and of the British Dominions beyond the Seas, Emperor of India, 
 the Most Honourable Henry Charles Keith Petty-Fitzmaurice, Marquess of 
 Lansdowne, His Majesty's Principal Secretary of State for Foreign Affairs; 
 and 
 
 His Majesty the Emperor of China, Chang Teh-Yih, Brevet Lieutenant- 
 General of the Chinese Imperial Forces, His Imperial Majesty's Envoy Extra- 
 ordinary and Minister Plenipotentiary at the Court of His Majesty the King of 
 the United Kingdom of Great Britain and Ireland and of the British Dominions 
 beyond the Seas, Emperor of India ; 
 
 And the said Plenipotentaries having met and communicated to each other 
 their respective full powers, and found them in good and due form, have agreed 
 upon and concluded the following Articles : — 
 
 Article I. — As the Regulations to be framed under the above-mentioned 
 Treaty were intended to be of a general character, it is hereby agreed that on 
 each occasion when indentured emigrants are required for a particular British 
 Colony or Protectorate beyond the seas, His Britannic Majesty's Minister in 
 Peking shall notify the Chinese Government, stating the name of the particular 
 Colony or Protectorate for which the emigrants are required, the name of the 
 Treaty port at which it is intended to embark them, and the terms and conditions 
 on which they are to be engaged ; the Chinese Government shall thereupon, 
 without requiring further formalities, immediately instruct the local authorities 
 at the specified Treaty port to take all the steps necessary to facilitate emigration. 
 The notification herein referred to shall only be required once in the case of 
 each Colony or Protectorate, except when emigration under indenture to that 
 Colony or Protectorate from the specified Treaty port has not taken place during 
 the preceding three years. 
 
 Article II. — On receipt of the instructions above referred to the Taotai at 
 the port shall at once appoint an officer, to be called the Chinese Inspector, who, 
 together with the British Consular Officer at the port, or his Delegate, shall make 
 known by Proclamation and by means of the native press the text of the Inden- 
 ture which the emigrant will have to sign, and any particulars of which the 
 Chinese officer considers it essential that the emigrant shall be informed, re- 
 specting the country to which the emigrant is to proceed, and respecting its 
 laws. 
 
 Article III. — The British Consular Officer at the port, or his Delegate, 
 shall confer with the Chinese Inspector as to the location and installation of the 
 offices and other necessary buildings, hereinafter called the Emigration Agency, 
 which shall be erected or fitted up by the British Government, and at their 
 expense, for the purpose ot carrying on the business of the engagement and 
 shipment of the emigrants, and in which the Chinese Inspector and his staff 
 shall have suitable accommodation for carrying on their duties. 
 
 Article IV. — 1. There shall be posted up in conspicuous places throughout 
 the Emigration Agency, and more especially in that part of it called the Depot, 
 destined for the reception of intending emigrants, copies of the Indenture to 
 be entered into with the emigrant, drawn up in the Chinese and English languages, 
 together with copies of the special Ordinance, if any, relating to immigration
 
 480 CHINA TREATIES AND AGREEMENTS 
 
 into the particular Colony or Protectorate for which the emigrants are required. 
 
 2. There shall be kept a Register in English and in Chinese, in which the 
 names of intending indentured emigrants shall be inscribed, and in this Register 
 there shall not be inscribed the name of any person who is under 20 years of age, 
 unless he shall have produced proof of his having obtained the consent of his 
 parents or other lawful guardians to emigrate, or, in default of these, of the 
 Magistrate of the district to which he belongs. After signature of the Indenture 
 according to the Chinese manner, the emigrant shall not be permitted to leave 
 the Depot, previously to his embarkation, without a pass signed by the Chinese 
 Inspector, and countersigned by the British Consular Officer or his Delegate, 
 unless he shall have, through the Chinese Inspector, renounced his agreement and 
 withdrawn his name from the register of emigrants. 
 
 3. Before the sailing of the ship each emigrant shall be carefully examined 
 by a qualified Medical Officer nominated by the British Consular Officer or his 
 Delegate. The emigrants shall be paraded before the British Consular Officer or 
 his Delegate and the Chinese Inspector or his Delegate, and questioned with a 
 view to ascertain their perfect understanding of the Indenture. 
 
 Article V. — All ships employed in the conveyance of indentured emigrants 
 from China under this Convention shall engage and embark them only nt a 
 Treaty port, and shall comply with the Regulations contained in the Schedule 
 hereto annexed and forming part of the Convention. 
 
 Article VI. — For the better protection of the emigrant, and of any other 
 Chinese subject who may happen to be residing in the Colony or Protectorate 
 to which the emigration is to take place, it shall be competent to the Emperor 
 of China to appoint a Consul or Vice-Consul to watch over their interests and 
 well-being, and such Consul or Vice-Consul shall have all the rights and privi- 
 leges accorded to the Consuls of other nations. 
 
 Article VII. — Every Indenture entered into under the present Articles 
 shall clearly specify the name of the country for which the labourer is required, 
 the duration of the engagement, and, if renewable, on what terms, the number 
 of hours of labour per working day, the nature of the work, the rate of wages 
 and mode of payment, the rations, clothing, the grant of a free passage out, and, 
 where such is provided for therein, a free passage back to the port of embarkation 
 in China for himself and family, right to free medical attendance and medi- 
 cines, whether in the Colony or Protectorate or on the voyage from and to the 
 port of embarkation in China, and any other advantages to which the emigrant 
 shall be entitled. The Indenture may also provide that the emigrant shall, if 
 considered necessary by the medical authorities, be vaccinated on his arrival at 
 the Depot, and, in the event of such vaccination being unsuccessful, revaccinated 
 on board ship. 
 
 Article VIII. — The Indenture shall be signed, or in cases of illiteracy 
 marked, by the emigrant after the Chinese manner, in the presence of the Chinese 
 Inspector or his Delegate and of the British Consular Officer or his Delegate, who 
 shall be responsible to their respective Governments for its provisions having 
 been clearly and fully explained to the emigrant previous to signature. To 
 each emigrant there shall be presented a copy of the Indenture drawn up in
 
 NUMBER 1904/2: MAY 13, 1904 481 
 
 Chinese and English. Such Indenture shall not be considered as definitive or 
 irrevocable until after the embarkation of the emigrant. 
 
 Article IX. — In every British Colony or Protectorate to which indentured 
 Chinese emigrants proceed, an officer or officers shall be appointed, whose duty 
 it shall be to insure that the emigrant shall have free access to the Courts of 
 Justice to obtain the redress for injuries to his person and property which is 
 secured to all persons, irrespective of race, by the local law. 
 
 Article X. — During the sojourn of the emigrant in the Colony or Pro- 
 tectorate in which he is employed, all possible postal facilities shall be afforded 
 to him for communicating with his native country, and for making remittances 
 to his family. 
 
 Article XI. — With regard to the repatriation of the emigrant and his family, 
 whether on the expiration of the Indenture or from any legal cause, or in the event 
 of his having been invalided from sickness or disablement, it is understood that 
 this shall always be to the port of shipment in China, and that in no case shall it 
 take place by any other means than actual conveyance by ship, and payment 
 of money to the returning emigrant in lieu of passage shall not be admissible. 
 
 Article XII. — Nothing in any Indenture framed under these Articles shall 
 constitute on the part of the employer a right to transfer the emigrant to another 
 employer of labour without the emigrant's free consent and the approval of his 
 Consul or Vice-Consul ; and should any such transfer or assignment take place, 
 it shall not in any way invalidate any of the rights or privileges of the emigrant 
 under the Indenture. 
 
 Article XIII. — It is agreed that a fee on each indentured emigrant shipped 
 under the terms of this Convention shall be paid to the Chinese Government 
 for expenses of inspection, but no payment of any kind shall be made to the 
 Chinese Inspector or any other official of the Chinese Government at the port 
 of embarkation. The above fee shall be paid into the Customs bank previous 
 to the clearance of the ship, and shall be calculated at the following rate: — 
 3 Mexican dollars per head for any number of emigrants not exceeding 10,000, 
 and two dollars per head for any number in excess thereof, provided they are 
 shipped at the same Treaty port, and that not more than twelve months have 
 elapsed since the date of the last shipment. 
 
 Should the port of embarkation have been changed, or a space of more than 
 twelve months have elapsed since the date of the last shipment, inspection charges 
 shall be paid as in the first instance. 
 
 Article XIV. — The English and Chinese text of the present Convention 
 have been carefully compared, but in the event of there being any difference of 
 meaning between them, the sense as expressed in the English text shall be held 
 to be the correct sense. 
 
 Article XV. — The present Convention shall come into force on the date 
 of its signature and remain in force for four years from that date, and after 
 such period of four years it shall be terminable by either of the High Contract- 
 ing Parties on giving one year's notice. 
 
 In witness whereof the Plenipotentiaries have signed the present Convention, 
 and have affixed thereto their seals.
 
 482 CHINA TREATIES AND AGREEMENTS 
 
 Done at London in four copies, two in English and two in Chinese, this 
 thirteenth day of May of the year 1904. 
 
 (L.S.) (Signed) Lansdowne. 
 
 (L.S.) (Signed) T. Y. Chang. 
 
 SCHEDULE. 
 Regulations. 
 
 SHIPS employed in the transport of indentured emigrants from China under 
 this Convention must be seaworthy, clean, and properly ventilated, and, with 
 regard to the following matters, shall comply with conditions as far as possible 
 equivalent to those in force in British India with reference to the emigration of 
 natives from India : — 
 
 Accommodation required on board (vide section 57 of " The Indian Emi- 
 gration Act, 1883 ")• 
 
 Sleeping accommodation, consisting of wooden sheathing to the decks or 
 sleeping platforms (vide rule regarding " iron decks," as amended the 16th 
 August, 1902, in Schedule " A " to the rules under " The Indian Emigration 
 Act, 1883"). 
 
 Rules as to space on board (vide section 58 of " The Indian Emigration 
 Act, 1883"). 
 
 Carriage of qualified surgeon, with necessary medical stores. 
 
 Storage of drinking water (vide rule 113, as amended the 24th February, 
 1903, under " The Indian Emigration Act, 1883 "). 
 
 Provision of adequate distilling apparatus (vide Schedule " C " to the rules 
 under "The Indian Emigration Act, 1883"). 
 
 The dietary for each indentured emigrant on board ship shall be as follows 
 per day : — Not less than 
 
 Rice, not less than 1% lb., or flour or bread stuffs 1^^ lb. 
 
 Fish (dried or salt) or meat (fresh or preserved) 0}^ „ 
 
 Fresh vegetables of suitable kinds IVs „ 
 
 Salt 1 oz. 
 
 Sugar 1 /^ M 
 
 Chinese tea 0% „ 
 
 Chinese condiments in sufficient qualities [quantities?] 
 
 Water, for drinking and cooking 1 gallon 
 
 or such other articles of food as may be substituted for any of the articles enume- 
 rated in the foregoing scale as being in the opinion of the doctor on board equiv- 
 alent thereto.
 
 NUMBER 1904/2: MAY 13, 1904 483 
 
 Exchange of Notes betzvecn the Marquess of Lansdowne and Chang Ta-jen, 
 
 May 13, 1904. 
 
 Foreign Office, May 13, 1904. 
 Sir, 
 
 By Article VI of the Convention about to be concluded between Great Britain 
 and China with regard to Chinese subjects leaving the Treaty ports of China 
 under Indenture for service in British Colonies or Protectorates it is provided 
 that :— 
 
 " For the better protection of the emigrant and of any other Chinese subject 
 who may happen to be residing in the Colony or Protectorate to which the emi- 
 gration is to take place, it shall be competent to the Emperor of China to appoint 
 a Consul or Vice-Consul to watch over their interests and well-being, and such 
 Consul or Vice-Consul shall have all the rights and privileges accorded to the 
 Consuls of other nations." 
 
 His Majesty's Government consider it specially important that the persons 
 appointed to occupy, for the purpose named, the position of Consul or Vice- 
 Consul should be experienced officers of Chinese nationality, that they should be 
 exclusively in the service of the Emperor of China, and that in each case the 
 name of the person selected should be communicated to His Majesty's Govern- 
 ment, and their agreement to the appointment obtained. 
 
 I have the honour to inquire whether the Chinese Government are prepared 
 to meet the wishes of His Majesty's Government in the matter. If so, and 
 if you will inform me accordingly, this note and your reply might be attached to 
 the Convention in order to place on formal record the arrangement concluded. 
 
 I have, &c. 
 
 (Signed) Lansdowne. 
 
 Chang Ta-Jen, 
 
 &c., &c., &c. 
 
 Chinese Legation, May 13, 1904. 
 My Lord Marquess, 
 
 In reply to your Lordship's note of this date, I have the honour to state 
 that the Chinese Government are in entire accord with His Britannic Majesty's 
 Government as to the great importance they attach to the Consuls and Vice- 
 Consuls to be appointed under Article VI of the Convention about to be concluded 
 between the two Governments being men of great experience, and will consider 
 it a duty which they owe to the emigrant to confine the selection of these officers 
 to such as in all respects conform to the requirements specified in the note above 
 referred to, which, together with the present one, it has been mutually agreed 
 shall, in proof of this understanding, be appended to the said Convention. 
 
 I have, &c. 
 
 (Signed) T. Y. Chang. 
 
 The Marquess of Lansdowne, K.G., 
 
 &c., &c., &c.
 
 434 CHINA TREATIES AND AGREEiMENTS 
 
 NUMBER 1904/3. 
 
 CHINA. 
 West River regulations, 1904^— July 30, 1904. 
 
 ARTICLE I. — Former Regulations rescinded. — The Regulations of Trade 
 on the West River hitherto in force are hereby abrogated. 
 
 ARTICLE II. — Ports, Stages, or Ports of Call, and Passenger Sta- 
 tions. — The merchant vessels of the Treaty Powers are authorised to trade on 
 the West River at the following four Treaty Ports : — 
 
 Canton (directly connected with the West River), Kongmoon, Samshui, and 
 Wuchow. 
 
 Steamers are authorised to land and ship goods in accordance with Regu- 
 lations hereinafter set forth at the following six Stages or Ports, of Call: — 
 
 Kumchuk, Paktauhau, Shiuhing, Lotinghau, Takhing, and Dosing; 
 and to land and ship passengers and their luggage at any of the following 10 
 regular Passenger Stations : 
 
 Yungki (in Tailung Channel), Mahning (in Junction Channel), Kaukong, 
 Kulow, Wingon, Howlik, Lukpu, Yuetsing, Lukto, and Fungchuen (in West 
 River). 
 
 Passengers luggage must not contain articles subject to Duty, and the presence 
 of dutiable articles will render the whole liable to confiscation. 
 
 ARTICLE III. — Arms Certificate. — Vessels proposing to trade on the 
 West River must provide themselves with an Arms Certificate. This Certificate, 
 which is to be made out on a form supplied by the Customs and signed by the 
 captain, must state the number of muskets, guns, swords, etc., and the quantity 
 of ammunition carried for self defence, and be produced for inspection and veri- 
 fication when required. 
 
 ARTICLE IV. — Classes of Vessels. — Merchant vessels trading on the 
 West River are to be divided into the following classes : — 
 
 A. Steamers. — \. Inland-zvaters steamers trading to permitted inland places. 
 2. Local river steamers running from Canton, Kongmoon, or Samshui to Ports up 
 River without leaving Liang Kwang waters. 3. Foreign-going steamers from 
 and to Hongkong, Macao, etc., trading for the voyage up and down River. 
 
 B. Small Craft (lorclias, papicos, junks, etc.) 
 
 ARTICLE V. — A. Steamers. — 1. Inland-waters steamers are to comply 
 with the Inland Waters Steam Navigation Regulations. 
 
 2. Local river steamers, which do not leave Liang Kwang waters, but which, 
 running from Canton, Kongmoon, or Samshui, are to trade only at Treaty Ports 
 and Ports of Call, and take passengers to and from the authorised Passenger 
 Stations, are to deposit their Registers with their Consul, or, if consularly unrepre- 
 
 * Text as published in the Inspector-General's Circular No. 1235 {Imperial Maritime 
 Customs; II — Special Series, No. 28; published in 1905). 
 
 See British Commercial Treaty of 1902 (No. 1902/7. ante).
 
 NUMBER 1904/3 : JULY 30, 1904 485 
 
 sented, with the Customs at Canton, Kongmoon, or Samshui, where the Customs, 
 on receipt of a Consular Application or on deposit of her papers, will issue a 
 Certificate to the steamer, to be called the " River Pass," on which shall be entered 
 the steamer's name, flag, and registered tonnage, the said River Pass to be valid 
 for the year during which issued, on expiry of which it must be either surrendered 
 or renewed at the Port of issue. 
 
 3. Foreign-going steamers from and to Hongkong, Macao, etc., proceeding 
 to the West River must enter either by (a) Motomoon ("Broadway"), (b) 
 W'angmoon, or (c) via Canton. 
 
 (a) If entering by Motomoon they must report at the Malowchow Station 
 (Lappa Customs) and produce for inspection and verification a Gen- 
 eral Import Alanifest of all cargo on board, showing destination. The 
 Customs officials will inspect the vessel on arrival, note the quantity 
 of arms, etc., on board, and issue the Kongmoon Pass, upon receipt 
 of which the vessel will proceed, direct and without anchoring, landing 
 or shipping cargo or passengers, to Kongmoon, and surrender the 
 Pass. If proceeding further up the West River, steamers will deposit 
 their Registers with their Consul, or, if consularly unrepresented, 
 with the Customs. Upon receipt of the Consular Report, or on de- 
 posit of her papers, the Customs will issue a Certificate to the 
 steamer, to be called the " Special River Pass," on which shall be 
 entered the steamer's name, flag, and registered tonnage, and without 
 which she may not proceed to any Treaty Port (the original Port 
 of entry excepted). Port of Call, or Passenger Station on the River. 
 On return to Kongmoon, and when all Dues and Duties are either 
 paid or accounted for, the Customs, on surrender of the Special 
 River Pass, will issue a Clearance, which will entitle the vessel to 
 the return of her Register and Kongmoon Pass. The vessel is then 
 free to depart via the Motomoon (" Broadway ") or via the Wang- 
 moon, as provided for below, (&). Proceeding via the Motomoon 
 ("Broadway"), the Kongmoon Pass will be surrendered at the 
 Malowchow Station (Lappa Customs), where the General Export 
 Manifest of all cargo on board will be produced for inspection and 
 verification. 
 (b.) If entering by Wangmoon, steamers must report at the Wangmoon 
 Station and comply with the requirements set forth above, (a). 
 
 According to the destination declared the „ ^ , — r- Pass will then be 
 
 ° Samshui 
 
 issued, upon receipt of which the vessel will proceed by the authorised 
 route, direct and without anchoring, landing or shipping cargo or 
 passengers, to the Port indicated on the Pass, where the latter will 
 be surrendered. If proceeding elsewhere on the West River, steamers 
 will deposit their Registers with their Consul, or, if consularly un- 
 represented, with the Customs. Upon receipt of the Consular Report, 
 or on deposit of her papers, the Customs will issue a Certificate to 
 the steamer, to be called the " Special River Pass," on which shall
 
 486 CHINA TREATIES AND AGREEMENTS 
 
 be entered the steamer's name, flag, and registered tonnage, and 
 without which she may not proceed to any Treaty Port (the original 
 Port of entry excepted), Port of Call, or Passenger Station on the 
 River. On return to the original Port of entry, and when all Dues 
 and Duties are either paid or accounted for, the Customs, on surren- 
 der of the Special River Pass, will issue a Clearance, which will 
 
 entitle the vessel to the return of her Register and ■ „ ^ . — r- Pass. 
 
 Samshui 
 
 The vessel is then free to depart via the Wangmoon or via the Moto- 
 
 moon ("Broadway"), as provided for above, (o). Proceeding via 
 
 Kongmoon 
 the Wangmoon, the -^ r— :- Pass will be surrendered at the 
 
 Wangmoon Station, where the General Export Manifest of all cargo 
 on board will be produced for inspection and verification. 
 (c.) If entering via Canton, vessels will proceed by the authorized Bogue 
 route, direct and without anchoring, landing or shipping cargo or 
 passengers, and deposit their Register with Consul or Customs at 
 Canton in order to obtain the Special River Pass, without which they 
 may not proceed to any Treaty Port, Port of Call, or Passenger Sta- 
 tion on the West River, and the surrender of which, on return, all 
 Dues and Duties having either been paid or accounted for, will 
 entitle them to Customs Clearance and return of Register. 
 
 4. Shipment and discharge of cargo by local river steamers and Foreign- 
 going steamers at any other points on the River than the Treaty Ports and Ports 
 of Call enumerated in Article II is prohibited, and any violation of this prohibition 
 will be dealt with in accordance with the Treaty provisions applicable to clan- 
 destine trade along the coast. 
 
 5. Local river steamers and Foreign-going steamers trading at the West 
 River Treaty Ports — Canton, Kongmoon, Samshui, and Wuchow — must report 
 and clear and load and discharge cargo in the same manner as at other Treaty 
 Ports along the coast, and in accordance with the Customs Regulations of the 
 River Ports concerned. 
 
 6. Duty treatment of merchandise carried by local river steamers and For- 
 eign-going steamers : — 
 
 A. Foreign Trade. — Import Duty shall be payable as follows : on cargo from 
 abroad for (a) a Treaty Port, at destination Treaty Port; {h) a Port of Call, 
 at Port of entry from abroad (Kongmoon, Samshui, or Canton). Export Duty 
 shall be payable as follows: on cargo for abroad from (a) a Treaty Port, at 
 Port of shipment; {h) a Port of Call, at Port of clearance for abroad (Kongmoon, 
 Samshui, or Canton). 
 
 B. Domestic Trade. — Export (full) and Coast Trade (half) Duties shall be 
 payable as follows: on cargo from (a) Treaty Port to Treaty Port, full at Port 
 of shipment and half at Port of discharge; (b) Treaty Port to Port of Call, if 
 another Treaty Port is to be passed en route, full and half at Port of shipment, 
 otherwise full only at said Port of shipment; (c) Port of Call to Treaty Port, 
 if another Treaty Port has been passed en route, full and half at destination
 
 NUMBER 1904/3: JULY 30, 1904 487 
 
 Treaty Port, otherwise full only at said Port; (d) Port of Call to Port of Call, 
 if a Treaty Port is passed en route, full at said Port in passing. 
 
 7. Tonnage Dues are payable once every four months at the Treaty Port 
 first touched at after expiry of Certificate. 
 
 8. Dues and Duties are, in general, payable as at other Treaty Ports, and 
 Re-exports and goods under Transit Certificates entitled to usual Customs treat- 
 ment. Native goods, if shipped to a Treaty Port and subsequently re-exported 
 to a Foreign Port within 13 months, with no unauthorised change of package and 
 marks, will be entitled to the refund of any Customs Duty paid in excess of 
 one full Export Tariff Duty. 
 
 9. Routes. — The following are the authorised routes to the West River : — 
 Foreign-going steamers proceeding from the sea direct must enter either 
 
 by (a) the Motomoon {"Broadway") route; or by (b) the Wangmoon route, 
 taking the Kerr Channel f and Junction Channel and passing into the West River 
 at Fist Cliffs. Such steamers may also proceed (c) via Canton, in which case they 
 will be required, together with local river steamers, to take the following route 
 on leaving Canton, viz.. Hill Passage, Saiwan Channel, Tailung Channel, and 
 Junction Channel (British Admiralty Chart No. 2,562), and enter the West 
 River at Fist Cliffs. Returning abroad, or to Canton, the same routes are to 
 be adhered to. 
 
 10. Miscellaneous. — The Customs officials will be at liberty to seal the 
 hatches of vessels entering or trading on the West River, and seals must not 
 be broken before the vessel reaches the next Port or Port of Call at which she 
 wishes to work cargo. Any trading vessel falling in with a revenue cruiser or 
 Customs boat is to produce her papers for inspection, if examination of them is 
 required ; and Customs employes may be put on board vessels to search them or 
 accompany them for the purpose of surveillance. 
 
 11. Penalties. — Vessels taking other than the prescribed routes into or out 
 
 from the West River, or found in waters between Canton and Kongmoon or 
 
 the Bogue Passage and Kongmoon anywhere off the said routes, are liable to 
 
 a fine not exceeding Tls. 500. In the event of any vessel so found, or discovered 
 
 anywhere on the West River and routes thereto inside Malowchow or Wangmoon 
 
 Stations, being without proper papers as provided for by the present Regulations, 
 
 she will be dealt with under the Treaty Articles penalising clandestine trade 
 
 along the coast. 
 
 Kongmoon 
 
 Foreign-going vessels bound out and failing to surrender the 
 
 Samshui 
 
 Malowchow 
 
 Pass at are liable to a fine not exceeding Tls. 100. 
 
 Wangmoon 
 Infringement of River Port Regulations by local river steamers will be pun- 
 ished by the infliction of penalties in force at other Treaty Ports. For a second 
 offence, the River Pass may be cancelled and the steamer refused permission to 
 trade on the West River. Unauthorised opening of sealed hatches or breaking 
 of seals will entail liability to a fine not exceeding Hk. Tls. 500. 
 
 t Sailam Channel proposed to be substituted for Kerr Channel.
 
 488 CHINA TREATIES AND AGREEMENTS 
 
 ARTICLE VI. — B. Small Craft (Lorchas, Papicos, Junks, etc.) en- 
 titled TO TRADE AT TREATY PoRTS, BUT NOT AT PoRTS OF CaLL NOR AT PASSENGER 
 
 Stations on the West River. — (a) Lorchas, etc., owned by Foreigners, if 
 provided with Registers and entitled to fly national flags, are required to take out 
 a Special River Pass either through the Consulate or through the Customs 
 direct at Kongmoon, Samshui, or Canton, if proceeding to other River Treaty 
 Ports : they will report, work cargo, pay Duties, and observe all conditions 
 as regards papers, routes, etc., and be subject to the same penalties for the 
 infringement of rules and regulations as Foreign-going steamers on the West 
 River. 
 
 {h) Papicos, etc., owned by Foreigners, but not provided with the Registers 
 or entitled to fly national flags, are to take out Customs Registers at the Port 
 they belong to, and report, work cargo, and pay Duties in the same way as 
 lorchas. They are subject to the same penalties for the infringement of rules 
 and regulations. 
 
 {c.) Chartered Junks. — Chinese junks chartered by Foreigners must take 
 out special junk papers at the Customs, to be obtained in exchange for Bonds 
 executed at and deposited with the Customs, the condition of the Bond being that 
 cargoes are bona fide Foreign property and will be landed and pay Duty at a 
 Treaty Port, and the penalty that if the cargo fails to be so landed and pay Duty 
 no chartered junk will thereafter be cleared for the Foreigner in question. Such 
 junks to report, work cargo, observe all conditions, fulfil all requirements, and 
 pay Duties in the same way as lorchas, papicos, etc. 
 
 The above Regulations are open to revision when and if necessary. 
 
 (Signed) F. W. MAZE, 
 
 Acting Commissioner, 
 Kongmoon. 
 (Signed) E. V. BRENAN, 
 
 Acting Commissioner, 
 Samshui. 
 (Signed) R. DE LUCA, 
 
 Acting Commissioner, 
 Canton. 
 30th July 1904.
 
 NUMBER 1904/4: AUGUST 8, 1904 489 
 
 NUMBER 1904/4. 
 
 GREAT BRITAIN AND PORTUGAL. 
 
 Exchange of notes respecting the reciprocal protection of trademarks in China."^ — 
 
 August 8, 1904. 
 
 (1). — Mr. Cartwright to Senhor de Lima. 
 
 Your Excellency, Lisbon, August 4, 1904. 
 
 Under an Order in Council of the 2nd February, 1899,t it is open to a 
 foreigner whose trade-mark has been infringed by a British subject in China 
 to take proceedings against the latter in the British Consular Court, provided — 
 
 1. That the consent, in writing, of His Majesty's Minister or Charge 
 d'Afifaires be obtained to the prosecution ; but 
 
 2. Such consent may be withheld unless His Majesty's Minister or Charge 
 d'Afifaires is satisfied that effectual provision exists for the punishment in Con- 
 sular or other Courts in China of similar acts committeed by the subjects of 
 the State or Power of which such prosecutor is a subject. 
 
 By correspondence with the French, German, and Italian Representatives in 
 London, it has been ascertained that provision exists for the punishment in the 
 Consular Courts of France, Germany, and Italy in China of subjects of those 
 countries, should they infringe British trade-marks, and the necessary information 
 has been given to His Majesty's Representative at Peking, and to the Repre- 
 sentatives there of the three countries mentioned, to enable them to carry out 
 the arrangements desired by their Governments for the mutual protection of 
 their trade-marks. 
 
 I have the honour to inform your Excellency that, in communicating the 
 above to you, I have been instructed by the Marquess of Lansdowne to inquire 
 whether the Portuguese Government would be disposed to conclude a similar 
 arrangement with his Majesty's Government. 
 
 I avail, &c., 
 
 Fairfax L. Cartwright. 
 
 (2). — Senhor de Lima to Mr. Cartzvright. 
 (Translation.) Lisbon, August 8, 1904. 
 
 I am in receipt of the note by which you communicate to me the desire of 
 the Marquess of Lansdowne to know whether the Portuguese Government would 
 be disposed to conclude an arrangement with His Britannic Majesty's Govern- 
 
 * Text and translation as printed in Hertslet, p. 600. 
 
 t For the relevant articles of the Order in Council of February 11, 1907, replacing the 
 provisions of the Order in council here cited, see note to the Anglo-American arrange- 
 ment concerning trademarks in China (No. 1905/4, post).
 
 490 CHINA TREATIES AND AGREEMENTS 
 
 ment in the sense of assuring mutual protection for Portuguese and British trade- 
 marks in China. 
 
 In reply, I have the honour to inform you that the Portuguese Government 
 have no objection in concluding the proposed arrangement in such a manner that, 
 on the date $ which may be fixed by exchange of notes, both Governments shall 
 transmit instructions to their Diplomatic Representatives at Peking, for the pur- 
 pose of bringing into effect, before the Portuguese Consular Courts, offences for 
 infringement by Portuguese subjects of British trade-marks duly registered in 
 Portugal, and, reciprocally, before the British Consular Courts, offences for in- 
 fringment by British subjects of Portuguese trade-marks, duly registered in the 
 United Kingdom, in conformity with the International Convention of the 20th 
 March, 1883.§ 
 
 I avail, &c., 
 
 Wenceslau de Lima. 
 
 NUMBER 1904/5. 
 
 GREAT BRITAIN AND THE NETHERLANDS. 
 
 Exchange of notes respecting the reciprocal protection of trademarks in China.* — 
 
 September 7, 1904. 
 
 (1). — Sir H. Howard to Baron de Lynden. 
 
 M. LE MiNiSTRE, The Hague, August 15, 1904. 
 
 Under a British Order in Council of the 2nd of February, 1899,t it is open 
 to a foreigner whose trade-mark has been infringed by a British subject in China 
 to take proceedings against the latter in the British Consular Court, provided — 
 
 1. That the consent in writing of the British Minister or Charge d'AfTaires 
 be obtained to the prosecution ; but 
 
 2. Such consent may be withheld unless the British Minister or Charge 
 d' Affaires is satisfied that effectual provision exists for the punishment in Con- 
 sular or other Courts in China of similar acts committed by the subjects of the 
 State or Power of which such prosecutor is a subject. 
 
 By correspondence with the French, German, and Italian Representatives 
 at the Court of St. James, it has been ascertained that provision exists for the 
 punishment in the Consular Courts of France, Germany, and Italy in China of 
 subjects of those countries, should they infringe British trade-marks, and the 
 
 * Text, and translation from the French text, as printed in Hertslet, p. 602. 
 
 jFor the relevant articles of the Order in Council of February 11, 1907, replacing the 
 provisions of the Order in Council here cited, see note to the Anglo-American arrangement 
 concerning trademarks in China (No. 1905/4, post). 
 
 t The 1st October, 1904. was eventually fixed as the date (Hertslet). 
 
 § " Hertslet's Commercial Treaties," Vol. 17, p. 401.
 
 NUMBER 1904/5: SEPTEMBER 7, 1904 491 
 
 necessary information has been given to His Majesty's Representatives in 
 Peking-, and to the Representatives there of the above-mentioned countries to 
 enable them to carry out the arrangements desired by their Governments for the 
 mutual protection of their trade-marks. 
 
 In view of these arrangements I am desired by the Marquess of Lansdowne 
 to enquire of your Excellency whether the Netherland Government would be 
 disposed to conclude a similar arrangement with His Majesty's Government. 
 
 While expressing the hope that I may receive a favourable reply in this 
 regard, and inclosing copies of the Order in Council of the 2nd February, 1899, 
 as also of the correspondence which took place last year with the Italian Repre- 
 sentative in London on the subject, I avail myself, &c., 
 
 Henry Howard. 
 
 (2). — Baron de Lynden to Sir H. Howard. 
 [Translation.] 
 M. LE MiNiSTRE, The Hague, September 7, 1904. 
 
 By your communication of August 15 last your Excellency was so good as to 
 propose to me that we arrive at an understanding in regard to the reciprocal 
 protection of trade-marks in China. 
 
 In reply I have the honor to bring to the knowledge of your Excellency the 
 fact that the Netherlands law protects trade-marks (i.e., marques de fabriqiie et 
 de commerce) duly registered in the country, whatever be the nationality of 
 their proprietor, — and that not only when infringements have been committed in 
 the country itself, but also when they have been committed in a country subject 
 to the system of extraterritoriality, such as China. 
 
 The British Government being disposed to give similar instructions to its 
 representative in China, I have advised the Netherlands Minister in Peking that, 
 in case a trade-mark belonging to a British subject or protege, and duly regis- 
 tered in The Netherlands, should be counterfeited by one of its nationals, this 
 infraction of the Netherlands law should be prosecuted before the competent 
 consular tribunal. 
 
 Rquesting your Excellency to be so good as to advise me of the action 
 which your Government may have taken in this matter, I avail, etc. 
 
 Baron Melvil de Lynden.
 
 492 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1904/6. 
 
 BELGIUM AND GREAT BRITAIN. 
 
 Exchange of notes respecting the reciprocal protection of trademarks in China* — 
 
 September 30, 1904. 
 
 (1). — Sir C. Phipps to Baron de Favereau. 
 
 M. LE MiNisTRE, Brussels, September 15, 1904. 
 
 I did not fail to communicate to His Majesty's Government your Excel- 
 lency's note of the 31st ultimo, in which you notified to me the willingness of the 
 Belgian Government to come to an agreement with His Majesty's Government 
 upon the subject of mutual protection of trade-marks in China. 
 
 I have now the honour to inform your Excellency, by direction of the 
 Marquess of Lansdowne, that His Majesty's Minister at Peking has been in- 
 formed of the readiness of the Belgian Government to conclude with His 
 Majesty's Government an arrangement for the mutual protection of British 
 and Belgian trade-marks in China similar to those made by Belgium with other 
 European Powers, and that Sir E. Satow has been requested to issue the neces- 
 sary instructions to His Majesty's Consular officers in order that protection may 
 be afforded in the British Consular Courts to Belgian trade-marks should they 
 be infringed by British subjects. 
 
 I avail, &c., 
 
 CONSTANTINE PhIPPS. 
 
 (2). — Baron de Favereau to Sir C. Phipps. 
 [Translation.] 
 M. LE MiNiSTRE, Brussels, September 30. 1904. 
 
 I have before me the letter that your Excellency was so good as to address 
 to me on September 15 last, on the subject of the reciprocal protection of Belgian 
 and English trademarks in China. 
 
 This communication points out that His Britannic Majesty's Government 
 has given the necessary instructions in order that the consular tribunals of Great 
 Britain shall assure legal protection to trademarks, belonging to Belgian subjects 
 (i.e., ressortissants Beiges), which may have been counterfeited by English 
 nationals (i.e., nationaux Anglais). 
 
 In acknowledging this communication to your Excellency, I have the honor to 
 advise you that the Government of the King will, on its part, assure the pro- 
 tection, in the Chinese Empire, of English trade-marks (i.e., marques de fabrique 
 
 * Text, and translation from French text, as printed in Hertslet, p. 603,
 
 NUMBER 1905/1 : MARCH 22, 1905 493 
 
 OH de commerce) regularly registered in Belgium, which may have been counter- 
 feited by Belgians or Belgian proteges. 
 
 The Belgian Legation in Peking, and the Belgian consulates, vice consulates 
 and consular agencies in China, are competent to entertain claims presented to 
 them in such cases. 
 
 I have taken care to inform our minister in Peking, as well as our consular 
 representatives in China, of the conclusion between Belgium and Great Britain 
 of the agreement embodied in the exchange of communications which has taken 
 place between the British Legation and my department. 
 I avail, etc. 
 
 (For Baron de Favereau) 
 J. DE Trooz, 
 Minister of the Interior and of Public Instruction. 
 
 NUMBER 1904/7. 
 
 INTERNATIONAL AND CHINA. 
 
 Convention for the exemption of hospital ships in time of zvar from the payment 
 of all dues and taxes imposed for the benefit of the State. — December 21, 
 1904. 
 
 [This convention does not appear to possess any such particular interest in reference 
 to China as to warrant its inclusion in the present compilation. Translations of the French 
 texts of the convention, and of the Final Act of the Conference, as signed at The Hague 
 on December 21, 1904, are to be found in Malloy, p. 2135.] 
 
 NUMBER 1905/1. 
 
 BELGIUM (La Societe des Mines du Luhan) AND CHINA 
 (Chihli Lincheng Mining Company). 
 
 Contract concerning the Lincheng mines.* — March 22, 1905. 
 
 AGREEMENT made between H. E. Liang Tun Yen. Superintendent of Cus- 
 toms, appointed by H. E. Yuan Shih Kai, Viceroy of Chihli, in his capacity 
 of Director General of the new Chinese Company, owners and concession- 
 aries of all the mines situated within the geological coal field of Lincheng 
 in the subprefectures of Lincheng, Neikiou and Kao-yi, acting on behalf 
 
 * For the Peking-Hankow (Luhan) Railway concession in favor of the Societe Etudes, 
 see No. 1898/13, ante. See Note to this document, post, p. 498.
 
 494 CHINA TREATIES AND AGREEMENTS 
 
 of and in the name of the above named company of the one part, and Mr. 
 Jean Jadot, Engineer-in-Chief, Controller of the Peking-Hankow Railway 
 or the " Societe d'Etudes de Chemins de Fer en Chine," Brussels, who are 
 agents acting on behalf of and in the name of the newly to be formed 
 " Chihli Licheng Mining Loan Co." or the " Societe des Mines du Luhan " 
 at Brussels of the second part. 
 
 Whereby it has been agreed as follows : the said Lincheng Mining Company 
 being hereinafter referred to as the " Chihli Lincheng Mining Company " and the 
 said " Chihli Lincheng Mining Loan Company " or " Societe des Mines du 
 Luhan " as the " Luhan." 
 
 Article 1. — In order to develop the working of its mines in the best and 
 most economical way with the help of the Luhan Railway, near to which these 
 mines are located, the Chihli Lincheng Mining Company has decided to contract 
 a loan sufficient to enable all the necessary new plant to be provided. 
 
 Article 2. — The said loan amounting to three million francs gold (about 
 taels 923,000) shall be provided for by the Luhan. 
 
 Article 3. — The said loan and the interest at seven per cent accruing due 
 thereon constitute the first charge on all the properties and assets both present 
 and future of the Chihli Lincheng Mining Company which are warranted free 
 from all other encumbrances. 
 
 Article 4. — The said loan shall be advanced in four equal instalments 
 according as it is wanted, at dates to be mutually agreed on by the Chihli Lincheng 
 Mining Company and the Luhan. The installments shall be paid into a bank to 
 be mutually appointed. 
 
 Article 5. — During the continuance of the said loan, the mines shall be 
 worked jointly by the Chihli Lincheng Company and the Luhan. 
 
 The Chihli Lincheng Mining Company shall appoint, by mutual agreement 
 with the Luhan, the principal Chinese officials and in particular the Chinese 
 manager and a Chinese engineer. 
 
 The Luhan shall appoint, by mutual agreement with the Chihli Lincheng 
 Mining Company, the foreign staff and in particular, the engineering manager. 
 All projected works and new plant as well as all accounts must be approved by 
 the two managers, who must in everything act in perfect harmony. Every 
 formal document shall be signed by the two managers who shall always act in 
 the name of and on account of the Chihli Lincheng Mining Company. 
 
 Article 6. — (a) The value of the assets brought in by the Chihli Lin- 
 cheng Mining Company, including concessions, lands, pits, buildings, ma- 
 chinery plant, surveying outlay, &c., is estimated at the sum of five hundred thou- 
 sand taels (Tls. 500,000) this sum of Tls. 500,000 being made up as fol- 
 lows : 
 
 L Four hundred and eighty thousand taels (Tls. 480,000) for the conces- 
 sions, lands, buildings, pits, machinery, and the whole plant now on 
 the premises. 
 
 2. Twenty thousand taels (Tls. 20,000) to refund the Chinese authorities 
 the expense incurred by them in prospecting. 
 
 As a consideration for the expense incurred by the Luhan prior to this
 
 NUMBER 1905/1 : MARCH 22, 1905 495 
 
 agreement, on their detailed examination of the mines, a sum of one hundred and 
 thirty thousand francs (Frs. 130,000) is to be credited to that company. 
 
 (&) Of the sum of five hundred thousand taels the agreed value of the 
 properties brought in by the Chihli Lincheng Mining Company, a sum of one 
 hundred and fifty thousand taels (Tls. 150,000) shall be taken from the loan and 
 paid in cash as follows : 
 
 Fifty thousand taels (Tls. 50,000) immediately after this agreement has been 
 sanctioned by imperial edict, twenty thousand taels (Tls. 20,000) due to the Chi- 
 nese Government being included in this payment. 
 
 Fifty thousand taels (Tls. 50,000) on the taking over by the two directors 
 Chinese and European of all the properties and existing mining plant. 
 
 And fifty thousand taels (Tls. 50,000) in two months time after the second 
 payment. 
 
 The remainder of the amount of assets brought in by the Chihli Lincheng 
 Mining Company not paid in cash, that is to say, three hundred and fifty thousand 
 taels (Tls. 350,000) shall form part of the share capital and participate in the 
 remuneration specified in Article 7 below mentioned. 
 
 Of the sum of one hundred and thirty thousand francs (Frs. 130,000) 
 credited to the Luhan and the value of what they bring into the company, one- 
 half, that is sixty-five thousand francs shall be paid in cash, on the properties and 
 existing plant being taken over and the other half, namely sixty-five thousand 
 francs, shall form part of the share capital and participate in the remuneration 
 specified in Article 7 hereof. 
 
 (c) As soon as the imperial sanction has been given, the two companies, 
 namely the Chihli Lincheng Mining Company and the Luhan, shall immediately 
 take possession of all the lands, buildings, pits, machinery and plant in existence 
 and the present working shall be continued in the best manner possible. 
 
 Article 7. — The annual net profits of the undertaking shall be applied as 
 follows : 
 
 (a) In payment of the amount necessary to pay interest at the rate of seven 
 per cent. (7%) per annum, to be paid annually, on the gold loan. 
 
 (&) After the above payment, in providing the amount necessary to pay 
 a dividend at the rate of seven per cent. (7%) per annum, to be paid annually, 
 on the share capital of the undertaking, amounting to three hundred and fifty 
 thousand taels (Tls. 350,000) and sixty-five thousand francs (Frs. 65,000) as 
 stated in Article 6 hereof. 
 
 (c) Ten per cent. (10%) of the remaining profits shall be paid to the Chihli 
 Lincheng Mining Company to form an amortisation fund. 
 
 {d) The remaining profits shall be divided equally between the Chihli Lin- 
 cheng Mining Company and the Luhan. 
 
 Article 8. — If, during the period of construction of the new plants, which 
 is estimated at a maximum to be two years, the profits of working with the 
 existing plant are insufificient to provide the interest on the loan and dividends 
 on the share capital, the amount necessary for this purpose shall be taken from 
 the amount of the loan. 
 
 It is agreed that the loan shall bear interest only on the instalments as and
 
 496 CHINA TREATIES AND AGREEMENTS 
 
 when they are paid; and, during the period of construction the share capital 
 shall receive dividends only in proportion to the amounts of the loan paid in at 
 that time. 
 
 Article 9. — The loan is made for a term of thirty years from the date of the 
 imperial sanction being given. During the first fifteen years the interest on the 
 loan shall be paid as stated in Article 7. From the sixteenth year, the amount 
 of the gold loan, i.e. three million francs, shall be repaid at the rate of one- 
 fifteenth a year, i.e. two hundred thousand francs ; the redeemed sums not bear- 
 ing the seven per cent, interest. During this term {i.e., from the fifteenth to the 
 last year) from the sixteenth to the twentieth year the profits shall be divided by 
 half as specified in paragraph (d), Article 7, and from the twenty-first to thirtieth 
 year, only forty per cent, of the total remaining profits shall be due to the 
 Luhan. 
 
 At the end of the thirtieth year the total amount of the gold loan shall be 
 fully redeemed and the sum of sixty-five thousand francs, part of the share capi- 
 tal as per Article 6, shall be repaid to the Luhan. 
 
 At that term all connections between the Chihli Lincheng Mining Company 
 and the Luhan will cease and this contract shall be void. 
 
 Article 10. — At the end of the fifteenth year the Chihli Lincheng Mining 
 Company shall have the right, provided they give one year's notice, to terminate 
 this agreement on the payment to the Luhan a sum equal to the total amount of 
 the loan, as well as the sum of sixty-five thousand francs (Frs. 65,000) forming 
 part of the share capital, as stated in Article 6, plus a bonus equal to fifteen 
 times the average profits of the five last years of working paid to the Luhan by 
 virtue of paragraph (d) of Article 7 hereof. Provided always that this bonus 
 shall in no event exceed nine-tenths of the amount of the gold loan. 
 
 On their part, at the end of the term of fifteen years, the Luhan shall have 
 the right, provided they give one year's notice, to terminate this agreement and in 
 such case, the Chihli Lincheng Mining Company shall repay them the amount of 
 the loan plus the sum of sixty-five thousand francs (Frs. 65,000) being part of 
 the share capital, but no bonus shall be payable. If after the fifteenth year 
 neither the Chihli Lincheng Mining Company nor the Luhan wish to sever the 
 combination it shall continue as specified in Article 9. 
 
 Article IL — It is understood and agreed that the loan herein provided for 
 shall be a first charge upon the properties and assets of the Chihli Lincheng Min- 
 ing Company only in case such properties and assets should prove insul^cient to 
 repay the loan, or the interest thereon, or any part of such loan, no residual 
 liability shall attach to the Chinese Government or authorities, nor the members 
 or shareholders of the said company beyond their interest in the mines them- 
 selves. 
 
 Article 12. — During the continuance of the combination between the Chihli 
 Lincheng Mining Company and the Luhan, the Chihli Lincheng Mining Com- 
 pany shall not be entitled to enter into any engagement without the consent of 
 the Luhan ; and other things being equal, preference shall be given to the Luhan 
 at the expiration of the fifteenth year to take up any other foreign loan which 
 the Chihli Lincheng Mining Company wish to raise, but this shall not apply to
 
 NUMBER 1905/1 : MARCH 22, 1905 497 
 
 future arrangements which could be made with Chinese capitalists at the expira- 
 tion of the fifteenth year in case of Article 10 coming in force. 
 
 The Luhan shall not without the consent of the Chihli Lincheng Mining 
 Company, transfer its right or shares in the capital to any other society or 
 person. 
 
 Article 13. — The Luhan Railway undertakes to carry the coal from Lin- 
 cheng on a preferential tariff which shall not exceed one dollar cent (0.01 dol.) 
 per ton per mile, plus a fixed charge of fifteen dollar cents per ton, for all coal 
 sent by full train loads. If the sterling value of the Mexican dollar falls below 
 two francs, the tariff shall be raised in proportion to the fall in the value of the 
 dollar. The Luhan Railway shall pay for all coal purchased for its own con- 
 sumption at seventy-five per cent, of the usual selling price of the coal at the 
 mines. 
 
 Article 14. — The royalties to be paid to the Chinese Government and to the 
 local and provincial authorities shall not exceed in the aggregate 5% (five per 
 cent.) on the tonnage extracted from the mines. This tax shall be paid on the 
 basis of the net cost of the coal at the pit mouth being one tael per ton ; duty and 
 likin shall be the same as paid by the Chinese Engineering and Mining Company 
 Limited, namely eighty-four (84) large cash per ton for likin and ten cents taels 
 (Tls. 0.10) per ton for duty. Coal sold to the railways and other Government 
 undertakings shall only pay the government royalty. Besides the likin and 
 royalty no other duties shall be payable except the ordinary land tax. It is agreed 
 that, in the event of other coals paying in the Chihli province duties lower than 
 those above mentioned such reduced rates shall be applied to the coal from the 
 Lincheng mines. 
 
 Article 15. — All materials and other things destined for the mines shall 
 pay the Imperial Maritime Customs duty but shall be free of all dues or likin. 
 
 Article 16. — H. E. the Viceroy of Chihli gives his protection and support to 
 this mining undertaking ; he shall exercise full authority over the association and 
 his orders shall be obeyed and respected as far as they are not contrary to the 
 interests of the undertaking. 
 
 Article 17. — In case any disputes shall arise between the parties hereto, 
 each of them, the Chihli Lincheng Mining Company and the Luhan, shall appoint 
 an arbitrator to settle the difference and in case of disagreement between the 
 arbitrators, an umpire shall be appointed by the arbitrators, whose decisions shall 
 be final. 
 
 Article i8. — This agreement is drawn up in six copies each consisting of a 
 Chinese and English version. The Chinese and English versions have been care- 
 fully compared and are acknowledged to agree in every particular, whereof, both 
 shall be treated authoritative. The six copies shall be signed by the representa- 
 tives of the two contracting companies. They shall be submitted for approval to 
 H. E. the Viceroy who shall affix his seal thereto, after which the agreement shall 
 be presented for imperial sanction. 
 
 One set shall be kept in the Viceroy's Yamen. 
 
 One set shall be kept in the Customs Taotai's Yamen. 
 
 Two sets shall be kept by the Chihli Lincheng Mining Company.
 
 498 CHINA TREATIES AND AGREEMENTS 
 
 Two sets shall be kept by the Luhan. 
 
 Signed and sealed on the twenty-second day of March, One thousand nine 
 hundred and five A.D. 
 
 (sd.) pp.pour /, Jadot (sd.) Liang Tun Yen. 
 
 D. Mamet. (sealed) 
 
 Note. 
 
 It is understood that during the course of the negotiations for this contract, letters were 
 exchanged under date of February 1, 1905, of which the purport is indicated by the fol- 
 lowing communication in behalf of the Societe des Mines du Luhan: 
 
 " To His Excellency Customs Taotai Liang, Tientsin. 
 " Your Excellency, 
 
 " I have the honor to acknowledge receipt of your letter of this date confirming our 
 verbal agreement concerning the Lincheng Mining Contract as follows : 
 
 " ' Referring to our recent conversation, I now beg to confirm our verbal agreement that 
 in case a contract is made between us for the working of the Lincheng mines, as per copy 
 of contract now under negotiations between us, there shall be addressed to the director 
 general of the Chihli Lincheng Mining Company, annually, at the end of every year, a 
 report giving a detailed account of works carried out in, and in connection with the mines 
 during the past year and a project of the works which it is proposed to carry out during 
 the following year. The details given in these reports shall be given with sufficient clear- 
 ness to show the character of the work done and to be done, and to enable the director 
 general to determine whether or not the mining work is being done to the best interest of 
 the property and the due conservation thereof. Any objection of the director general to 
 proposed work shall receive careful attention from the representatives of the Luhan 
 (Societe des Alines du Luhan), and at the demand of the director general, the proposed 
 work shall be modified to conform to the usage of the best mines. 
 
 " ' It is specially agreed that in the working of the mines, due care shall be taken for 
 the proper development and conservation thereof. The permanent preservation of the 
 mines shall be constantly kept in view, and under no circumstances shall a desire for 
 increased output be allowed to prejudice the value of the property.' 
 
 " I have now the honor to confirm this agreement and to state that the provisions 
 hereof shall be binding upon the engineer and manager of the Luhan. 
 
 " I am, 
 
 "Your Excellency's 
 
 " Most obedient servant, 
 
 " (sd.) D. M.\MET." 
 
 NUMBER 1905/2. 
 
 GREAT BRITAIN AND CHINA. 
 
 Convention respecting the junction of the Chinese and Burmese telegraph lines.* — 
 
 May 23, 1905. 
 
 Article I. — The Government of His Majesty the King of the United 
 Kingdom of Great Britain and Ireland, Emperor of India, and the Government 
 
 ♦Text as printed in Hertslef, p. 195. Printed also in British Treaty Series (1905), 
 No. 22. 
 
 This convention is a revision of that of September 6, 1894, which is not included in 
 the present compilation but is printed in the British Treaty Series (1895), No. 9, and in 
 Hertslet, p. 110.
 
 NUMBER 1905/2 : ^L\Y 23, 1905 499 
 
 of His Majesty the Emperor of China with a view to facihtating international 
 telegraphic communication have resolved to revise the existing agreement re- 
 garding the exchange of telegraphic correspondence over the lines of the two 
 states on the frontier of Burma and Yiinnan. 
 
 Article II. — The junction on the frontier remains as hitherto between 
 the British station at Bhamo and the Chinese station at Tengyueh (Momein), 
 and an intermediate station will continue to be maintained at Manwyne. 
 
 Article III. — The Indian and the Chinese Administrations shall maintain 
 in good condition the line of connection, and shall exchange the correspondence 
 by wire between the two stations named in Article II, or between any other 
 two stations hereafter mutually agreed upon. 
 
 Each of the contracting parties shall bear the expense incurred for these 
 purposes on its own territory, and will take care that the boundaries between the 
 territories of the two governments are scrupulously respected. 
 
 Article IV. — The rules laid down in the Service Regulations of the Inter- 
 national Telegraph Convention shall be observed with regard to the technical 
 treatment of telegrams transmitted over the line of connection described in 
 Article 11. 
 
 When the senders of telegrams do not expressly indicate the route by which 
 they wish their telegrams to be forwarded, it is understood that at lower rates all 
 limitrophe correspondence and at equal rates half the limitrophe correspondence 
 shall be forwarded via the line of connection described in Article II, provided 
 that the alternative routes are in equally good working order. 
 
 Article V. — Each of the contracting parties fixes the charges for trans- 
 mission of telegrams by its lines up to the frontier of its own territory. 
 
 Article VI. — The following charges per word are declared for corre- 
 spondence exchanged via the line of communication described in Article II : — • 
 
 I. Indian Telegraph Administration. 
 
 A. terminal charges. 
 
 For Telegrams exchanged zvith places in China.'f 
 
 Francs. 
 
 1. From Stations in Burma to the Chinese frontier 0.10 
 
 2. From Stations in India to the Chinese frontier 0.35 
 
 3. From Stations in Ceylon to the Chinese frontier 0.45 
 
 For Telegrams exchanged with places beyond China.'f 
 
 4.f From Stations in Burma to the Chinese frontier 0.575 
 
 5.t From Stations in India to the Chinese frontier 0.825 
 
 6.t From Stations in Ceylon to the Chinese frontier 0.940 
 
 B. transit charges. 
 
 Between the Chinese-Burmese frontier and all other frontiers 0.35 
 
 fHertslet (p. 196) notes that these additions were made, by arrangement with the 
 Chinese Government, in 1907.
 
 500 CHINA TREATIES AND AGREEMENTS 
 
 II. China. 
 
 A. TERMINAL CHARGES. 
 
 1. For telegrams exchanged with Europe and countries beyond Europe 
 
 (except America) 3.36 
 
 2. For telegrams exchanged with America 4.86 
 
 3. For telegrams exchanged between all other countries on the one side and 
 
 stations on the Yangtze or south of the Yangtze on the other side. ... 1.00 
 
 4. For telegrams exchanged between all other countries on the one side 
 
 and stations situated to the north of the Yangtze 1.50 
 
 5. (a) For telegrams exchanged between Burma, India, and Ceylon on 
 
 the one side and the province of Yiinnan on the other side 0.50 
 
 (b) For bond- fide British and Chinese Government telegrams between 
 Burma, India and Ceylon on the one side and the province of Yiinnan 
 on the other side 0.25 
 
 B. TRANSIT CHARGES. 
 
 1. For telegrams exchanged between Europe and countries beyond Europe 
 
 (except America) on the one side and all countries beyond China on 
 the other side 3.36 
 
 2. For telegrams exchanged between America on the one side and all other 
 
 countries beyond China on the other side 4.86 
 
 3. For all other telegrams between the Burmese-Chinese frontier and — 
 
 (a) Shanghai or frontier stations south of the Yangtze 1.25 
 
 (b) All other frontiers 1.50 
 
 The charges established for telegrams exchanged between China on the one 
 side, and Burma, India, and Ceylon on the other side, are solely for corre- 
 spondence actually exchanged between the named neighbouring countries, and the 
 Chinese European and American correspondence cannot be re-telegraphed at 
 these rates by private agencies or persons at intermediate stations. 
 
 If during the course of operation of this Convention the rates of China 
 or of the Telegraph Companies operating in China be diminished for telegrams 
 exchanged by the whole of China, including Hongkong, with Europe and the 
 countries beyond Europe, China undertakes simultaneously and in the same 
 proportion to lower her present terminal and transit rates for such telegrams 
 on their transmission along the Burma-Yiinnan line. 
 
 Article VII. — The checking of the amount of correspondence exchanged 
 via the line of connection shall take place daily by wire between the stations 
 named in Article II. 
 
 The settlement of accounts shall take place at the end of each month and 
 the resulting balance shall be paid one month after the end of the month in account 
 to the Indian Telegraph Administration at Calcutta or to the Chinese Telegraph 
 Administration at Shanghai. 
 
 The month shall be reckoned according to the European calendar. Tele-
 
 NUMBER 1905/3 : JUNE 7, 1905 501 
 
 grams referring to the settlement of accounts shall be considered as service 
 telegrams and transmitted free of charge. 
 
 Article VIII. — The collection of the charges at all the stations of the Chinese 
 Telegraph Administration, according to the rates fixed in Article VI of the present 
 Convention in gold francs, as well as the liquidation of the mutual accounts, shall 
 be made in Mexican dollars according to the actual rate of exchange between 
 this coin and the franc. 
 
 This rate of exchange shall be agreed upon between the Telegraph Admin- 
 istrations of the contracting Governments during the month preceding "each quarter 
 on the basis of the average rate of exchange during the three months preceding 
 that during which the rate is fixed. 
 
 As regards out payments to Telegraph Administrations beyond China and 
 India the Chinese and Indian Telegraph Administrations will communicate to 
 each other their amount and this amount the two Administrations will be at 
 liberty to collect and settle at such rates as may protect them from loss. 
 
 Article IX. — The present Convention shall come into force on the first 
 day of June, 1905, and shall, unless otherwise mutually agreed upon, remain 
 in force for ten years and thereafter until twelve months after one of the 
 contracting parties shall have given notice of its intention to modify or to 
 abrogate it. 
 
 In witness whereof the Undersigned duly authorized to this effect have signed 
 the present Convention. 
 
 Done at Peking in the English language and in the Chinese language. Three 
 expeditions duly compared and found to be in agreement have been signed in 
 each of these languages on the 23rd day of the month of May, 1905, correspond- 
 ing with the 20th day of the 4th moon of the thirty-first year of the reign of 
 Kuang Hsii. 
 
 (L.S.) Ernest Satow [Signature and Seal of the Chinese Pleni- 
 
 potentiary] 
 
 NUMBER 1905/3. 
 
 INTERNATIONAL AND CHINA. 
 
 Convention for the creation of an international institute of agriculture. — June 
 
 7, 1905. 
 
 [The text of this convention is not printed here, as it does not appear to possess any 
 such particular interest in reference to China as to warrant its inclusion. A translation 
 from the French text of the convention as concluded at Rome, June 7, 1905, is printed in 
 Malloy, p. 2140.]
 
 502 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1905/4. 
 
 GREAT BRITAIN AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 
 China^—Jitne 28, 1905. 
 
 British Embassy, 
 Lenox, Mass., August 16, 1904. 
 Sir : Under an Order in Council of the 2nd February, 1899,t it is open to 
 a foreigner whose trade-mark has been infringed by a British subject in China 
 to take proceedings against the latter in the British Consular Court, provided — 
 
 (1) That the consent in writing of His Majesty's Minister or Charge 
 d' Affaires be obtained to the prosecution ; but 
 
 (2) Such consent may be withheld unless His Majesty's Minister or Charge 
 d'Affaires is satisfied that effectual provision exists for the punishment in Consular 
 or other Courts in China of similar acts committed by the subjects of the State 
 or Power of which such prosecutor is a subject. 
 
 By correspondence with the French, German and Italian representatives in 
 London, it has been ascertained that provision exists for the punishment in the 
 Consular Courts of France, Germany, and Italy in China of citizens or subjects 
 of those countries should they infringe British trade-marks, and the necessary 
 information has been given to His Majesty's Representative in Peking and to 
 the Representatives there of the three countries mentioned to enable them to carry 
 out the arrangements desired by their Governments for the mutual protection of 
 their trade-marks. 
 
 I am instructed by His Majesty's Principal Secretary of State for Foreign 
 Affairs to enquire whether the Government of the United States would be disposed 
 to conclude a similar arrangement with His Majesty's Government. 
 
 I have the honour to be, with the highest consideration, sir, your most obe- 
 dient, humble Servant, 
 
 (Signed) H. M. Durand. 
 
 The Honourable John Hay, 
 
 Secretary of State, etc., etc., etc. 
 
 Department of State, 
 Washington, September 23, 1904. 
 Excellency: I have the honor to acknowledge the receipt of your note 
 of the 16th ultimo inquiring whether this Government would be disposed to 
 conclude with that of Great Britain an agreement providing for the punishment 
 
 * Text as iprinted in U. S. Treaty Series (No Number). Printed also in Hertslet, p. 604; 
 M alloy, p. 800. 
 
 t See Note to this document, posi, p. 505.
 
 NUMBER 1905/4: JUNE 28, 1905 503 
 
 in the consular courts of the United States of American citizens infringing 
 British trade-marks in China and for the punishment in the Consular courts 
 of Great Britain of British subjects infringing American trade-marks in China. 
 
 The Government of the United States is of the opinion that some arrange- 
 ment of this sort would be advantageous to its citizens doing business in China, 
 and is therefore willing to enter into such an agreement with regard to China 
 as it already has with your Government for the reciprocal protection of trade- 
 marks in Morocco. Under that agreement the American consular courts in 
 Morocco protect British subjects against the infringement by American citizens 
 in Morocco of such of their trade-marks as have been duly registered in the 
 United States, and the British consular courts afford like protection to American 
 citizens against the infringement by British subjects of such of their trade-marks 
 as have been duly registered in Great Britain. 
 
 If this is satisfactory to your Government, the proposed agreement could be 
 effected by an exchange of notes as in the case of Morocco. 
 
 I have the honor to be, with highest consideration, your excellency's most 
 obedient servant, 
 
 Francis B. Loomis, 
 
 Acting Secretary. 
 
 His Excellency the Right Honorable 
 
 Sir H. M. DuRAND, G.C.M.G., K.C.S.I., K.C.I.E., 
 
 etc., etc., etc. 
 
 British Embassy, 
 Washington, April 10, 1905. 
 
 Sir, I communicated to His Majesty's Secretary of State for Foreign Affairs 
 your note of September 23, 1904 relative to the proposed Agreement between His 
 Majesty's Government and the United States Government for the mutual protec- 
 tion of British and American Trade Marks in China. 
 
 I am now in receipt of a despatch from Lord Lansdowne stating that His 
 Majesty's Government agree in the proposal put forward in that note that an 
 arrangement should be come to between the two Governments with regard to 
 China, such as already exists between them for the reciprocal protection of 
 Trade Marks in Morocco. 
 
 I am directed to inform you of the concurrence of His Majesty's Government 
 in the proposal, and to add that the necessary instructions on the subject will 
 be sent to His Majesty's Minister at Peking. 
 
 I have the honour to be, with high consideration, sir, your most obedient, 
 
 humble servant, 
 
 H. M. Durand. 
 
 The Honourable Francis B. Loomis, 
 
 Acting Secretary of State, etc., etc., etc.
 
 504 CHINA TREATIES AND AGREEMENTS 
 
 Department of State, 
 Washington, April 17, 1905. 
 Excellency : I have the honor to acknowledge the receipt of your note of 
 the 10th instant informing me of the concurrence of his Majesty's Government 
 in the proposal made by this Department's note of September 23, 1904, that the 
 agreement between the Government of the United States and that of His Britannic 
 Majesty for the mutual protection of American and British trade-marks in China, 
 be effected by an exchange of notes, as was done in the case of the reciprocal 
 protection of trade-marks in Morocco, and that the necessary instructions on 
 the subject would be sent to His Majesty's Minister at Peking. 
 
 In accordance with the understanding thus reached, instructions have this 
 day been addressed to the American Minister at Peking directing him to effect 
 the exchange of notes with His Majesty's Minister there. 
 
 I have the honor to be, with the highest consideration, your excellency's most 
 obedient servant (Signed) Francis B. Loomis 
 
 Acting Secretary. 
 His Excellency the Right Honorable 
 
 Sir H. M. DuRAND, G.C.M.G., K.C.S.I., K.C.I.E., 
 
 etc., etc., etc. 
 
 American Legation, 
 Peking, China, June 28, 1905. 
 
 Mr. Minister and Dear Colleague : The Acting Secretary of State of the 
 United States has informed me in an instruction dated April 17, 1905, that you 
 have been authorized by your Government to enter into a reciprocal agreement 
 with me for the mutual protection of trade-marks registered in the United States 
 and Great Britain against infringement in China by the citizens or subjects of our 
 respective nations, and he has given me authority to effect with you by an exchange 
 of notes an agreement for the reciprocal protection of American and British trade- 
 marks in China. 
 
 In pursuance of the general agreement reached between our respective govern- 
 ments on the subject, it affords me much satisfaction to agree on behalf of the 
 government of the United States, that henceforth trade-marks of British subjects 
 having been duly registered in the United States of America, will be protected 
 against infringement by such persons as come under the jurisdiction of the United 
 States Consular Courts in China, in which effectual provision exists for the pun- 
 ishment of such infringements by American citizens. 
 
 I have the honor to be, my dear colleague, your obedient servant, 
 
 (Sgd.) W. W. ROCKHILL. 
 
 Peking, June 28, 1905. 
 Mr. Minister and Dear Colleague: I have the honour to acknowledge 
 the receipt of your letter of this date, informing me that you have been authorized
 
 NUMBER 1905/4 : JUNE 28, 1905 : NOTE 505 
 
 by your Government to effect with me by an exchange of notes an agreement for 
 the reciprocal protection of American and British trademarks. 
 
 I beg to thank you for this communication and to assure that it affords me 
 much satisfaction to enter into this reciprocal agreement, and henceforth protec- 
 tion will be afforded in China by His Britannic Majesty's Supreme Court for 
 China and Corea and the Provincial Courts to trade-marks of citizens of the 
 United States which have been duly registered in Great Britain in conformity 
 with " The Patents, Designs, and Trademarks Acts, 1883 to 1888." 
 
 xA.t the same time it appears necessary to mention that the consent in writing 
 of His Majesty's Minister or Charge d'Affaires | must be obtained on each 
 occasion, which consent will be given as a matter of course in consequence of 
 the assurance contained in your Note under reply that effectual provision exists 
 for the punishment in the United States Consular Courts in China of infringe- 
 ment, by such persons as come under the jurisdiction of those Courts, of the 
 trade-marks of British subjects which shall have been duly registered in the 
 United States of America. 
 
 I have the honour to be, sir, your obedient servant, 
 
 (Sgd) Ernest Satow, 
 
 His Excellency, the Honourable W. W. Rockhill, 
 
 etc., etc., etc. 
 
 Note. 
 
 The Order in Council above cited has been repealed : the relevant provisions of law 
 are embodied in the Order in Council of February 11, 1907 (amending the China and Corea 
 Order in Council of 1904), Articles 3 and 4 of which are to the following effect: 
 
 British Order in Council. — February ii, 1907. 
 
 "Article 3. — Any Act which, if done in the United Kingdom, or in a British 
 
 Possession, would be an offence against any of the following Statutes of the Imperial 
 Parliament or Orders in Council, that is to say : — 
 
 "(a) 'The Merchandise Marks Act, 1887'; 
 
 "(b) 'The Patents, Designs, and Trade Marks Acts, 1883 to 1902'; 
 
 "(c) 'The Trade Marks Act, 1905'; 
 
 "(d) Any Statute amending or substituted for any of the above-mentioned Statutes; 
 
 " (e) Any Act, Statute, or Order in Council for the time being relating to copyright, 
 or to inventions, designs, or trade-marks, of which a copy is kept exhibited in the public 
 offices of the Consulates at Shanghai and Seoul, and is there open for inspection by any 
 person at all reasonable times; shall, if done by a British subject in China or Corea, be 
 punishable as a grave offence against the Principal Order, whether such act is done in 
 relation to any property or right of a British subject, or of a foreigner or native, or other- 
 wise howsoever. 
 
 " Provided : — 
 
 " (1) That no person shall be punished under this Order for an act which would be 
 an offence against any Act, Statute, or Order in Council, the exhibition of which is required 
 by paragraph (e) above, unless such exhibition had commenced not less than one month 
 before the act took place, or unless the person offending is proved to have had express 
 notice of such Act, Statute, or Order in Council. 
 
 Jit would appear that by Articles 3 and 4 of the Order in Council of February 11, 
 1907 (quoted above), this consent is no longer requisite.
 
 506 CHINA TREATIES AND AGREEMENTS 
 
 " (2) That a prosecution by or on behalf of a prosecutor who is not a British subject 
 shall not be entertained, unless either (a) an arrangement is in force between His Majesty's 
 Government and the Government of the State oi* Power to which the prosecutor belongs, 
 or (b) the Court is satisfied that effectual provision exists, for the punishment in Consular 
 or other Courts in China or Corea of similar acts committed by the subjects of such State 
 or Power in relation to or affecting the interests of British subjects. Where such an 
 arrangement is in force the Minister may issue a notification to that effect, and the Court 
 shall take judicial notice thereof. 
 
 " Article 4. — No action shall be brought for the protection of any copyright, trade-mark, 
 patent, or design by any person who is not a British subject, unless either (a) an arrange- 
 ment is in force between His Majesty's Government and the Government of the State or 
 Power to which the plaintiff belongs, or (b) the Court is satisfied that effectual provision 
 exists, for the protection in Consular or other Courts in China or Corea of the rights and 
 interests of British subjects in copyrights, trade-marks, patents, and designs infringed by 
 the subjects of such State or Power. 
 
 " Where such an arrangement is in force the Minister may issue a notification to that 
 effect, and the Court shall take judicial notice thereof." (Hertslet, p. 1097.) 
 
 NUMBER 1905/5. 
 
 GREAT BRITAIN (Pekin Syndicate, Limited) AND CHINA. 
 
 Loati agreement, and zvorking agreement, for tJie Taokozv-Chinghiia Railway* — 
 
 July 3, 1905. 
 
 (I.) — Loan Agreement 
 
 Agreement for the construction of a railway from Taokow to Chinghua, in 
 the Province of Honan, made between H. E. Sheng Hsuan-Huai, Director-General 
 of Railways, being thereto specially authorized by the Chinese Government, and 
 George Jamieson, Esq., C. M. G., Agent General of the Pekin Syndicate Limited, 
 also being fully authorized by the said syndicate: 
 
 1.— On the 21st Tvlay 1898 (Kwanghsu 24th year 4th Moon 2nd day) the 
 Shansi Bureau of Trade signed an Agreement with the Pekin Syndicate for 
 working coal and iron in the five following places, namely, Yu Hsien, Pingting- 
 Chow, Luanfu, Tsechowfu and Pingyangfu in the province of Shansi f and on 
 the 21st June 1898 (Kwanghsu 24th year 5th Moon 3rd day) the Yu-Feng Com- 
 pany signed a mining Agreement with said Syndicate for mining in Honan in 
 the neighborhood of Huai Ching and north of the Yellow River.| These Agree- 
 ments were both ratified by the Tsungli Yamen, in pursuance of an Imperial 
 Decree dated 17th May 1898 (Kwanghsu 24th year intercalary 3rd Moon 27th 
 day). In Article 17 of said Agreements it was stated that the Pekin Syndicate 
 on notifying the Governor of the province should be permitted to build a railway 
 to connect the mines with a main line or with water navigation. In June 1902 
 the Pekin Syndicate began to open coal mines in Siu Wu Hsien of Honan prov- 
 
 * Texts as printed in Wang, pp. 325, 345. Printed also in F. E. Review, vol. 5, pp. 135, 
 137, and Kent, pp. 235, 240. 
 
 t Annexed to No. 1908/2, post. 
 t No. 1898/12, ante.
 
 NUMBER 1905/5 : JULY 3, 1905 507 
 
 ince and at the same time gave notice to the Governor and obtained permission 
 to build a railway from the said mines to Taokow a port on the Wei River. 
 
 The British Minister has now applied that the said railway be put under 
 the General Administration of the Imperial Chinese Railway Company and the 
 matter having been arranged in consultation with the Wai Wu Pu, this Agreement 
 has been discussed and settled between the Director-General of the said Imperial 
 Chinese Railway Administration and the said Syndicate. 
 
 The line from Taokow to Tsechow is divided into two sections the first from 
 Taokow to the neighborhood of Chinghua Chen a distance of 90Y> miles the 
 second section is from Chinghua Chen to the neighborhood of Tsechow in Shansi 
 a distance of 38 miles more or less. 
 
 The construction of the first section has been undertaken by the Pekin 
 Syndicate and is now approaching completion. The present Agreement deals 
 specially with the first section from Taokow to Chinghua Chen. As regards the 
 second section it is agreed that hereafter when the Pekin Syndicate has fixed 
 a date for opening mines in the neighborhood of Tsechow a supplementary 
 Agreement will be drawn up between the Director-General and the Pekin Syndi- 
 cate to provide funds for construction, etc., of this section on terms in conformity 
 with those of the present Agreement for the Taokow to Chinghua line and on 
 basis of the Russian Cheng-Tai Railway Agreement, said terms to be settled at 
 their discretion. The cost of construction of the line from Taokow to Chinghua 
 Chen including rolling stock and monies Expended by the Syndicate as estimated 
 by the Chinese Engineer after verification of the proper accounts is £614,600. 
 But in order to provide a liberal sum to meet the expenses of working the line 
 until it is fully developed and the interest on the loan the Director-General has 
 fixed the amount of the loan at £700,000 in 7000 bonds of ilOO each. This loan 
 is to bear interest at 5 per cent per annum, and to be called the Chinese Imperial 
 Government Honan Railway 5 per cent (gold) loan of 1905. 
 
 2. — Out of the above amount of £700,000 there will be issued to the Syndicate 
 6829 bonds of £100 each which the Syndicate takes firm at the price of 90 per 
 cent of face value equivalent to £614,600 cash in order to refund the above 
 amount of capital. This will be done on the day when the line is handed over 
 to China and interest on the bonds will accrue from date of issue. 
 
 At the same time the Syndicate will make up and present an account with 
 vouchers of all initial expenditure not already included in construction account 
 and of the sums provided by them from time to time for the ordinary working 
 of the line from the date of opening to traffic to the time of handing over and 
 request the General Administration to examine and settle it. Any loss on work- 
 ing account after deducting earnings will be borne half and half by each. To 
 the amount so found due will be added interest on capital from 1st January 1905 
 to the date of handing over and the total of these two items will be refunded 
 to the Syndicate by the further issue of bonds out of the 171 surplus bonds in 
 hand for the required amount reckoned at 90 per cent of face value. If any 
 bonds still remain over they will be retained by the Imperial Chinese Railway 
 Administration for future use. If after the line is taken over the earnings 
 of the line are insufficient to meet the payment for interest and refund of capital
 
 508 CHINA TREATIES AND AGREEMENTS 
 
 at due date a further loan may be obtained from the Syndicate. § These bonds 
 the form of which is attached to this contract shall be signed in the name of 
 the Chinese Government by the Chinese Minister in London. 
 
 The interest coupons will be paid at their face value in gold in London on 
 1st of July and the 1st of January of each year. Coupons falling due and paid 
 will be collected in numerical order by the Syndicate at its cost and handed over 
 to the Chinese Minister in London. 
 
 3. — The loan shall be redeemed in twenty years dating from the tenth year 
 of issue by annual drawings which shall be held in London at the office of the 
 Pekin Syndicate in conformity with the schedule hereto annexed. 
 
 The drawings will be held on the 2nd Tuesday of January of each year. 
 The first of such drawings shall be held in the year 1916. The number of drawn 
 bonds at each drawing will be published ill four daily newspapers at the cost 
 of the Syndicate. 
 
 4. — Drawn bonds shall be paid in gold at their face value at the date when the 
 next interest falls due. Bonds presented for payment must be surrendered along 
 with all the interest coupons not yet due. In case of shortage the sum of the 
 missing coupons shall be deducted from the capital repayable. Interest on the 
 bonds will cease on the date when the latter are repayable. Repaid bonds will be 
 collected by the Pekin Syndicate at its cost and handed over to the Chinese 
 Minister in London. 
 
 5. — The Chinese Government shall not be at liberty before the year 1916 to 
 augment the amount of the annual instalments for redemption nor to repay the 
 whole amount of the loan nor to convert the loan. After this date the Chinese 
 Government shall be at liberty at any time to repay the whole amount of the 
 loan, provided however that until the expiry of the Syndicate's mining conces- 
 sions the rates then in force for the conveyance of minerals shall not be arbi- 
 trarily increased to the detriment of the Syndicate's business. On the other hand 
 the Syndicate after having settled an equitable tariff with the General Adminis- 
 tration based on the practice on other lines shall not make pretexts to lower the 
 rates to the detriment of the fund available for payment of principal and interest. 
 
 6. — Interest coupons and drawn bonds shall be repayable in gold in London 
 at the office of the Pekin Syndicate or of such bank as the Syndicate may appoint 
 for that purpose. 
 
 7. — Payment of interest and repayment of the bonds forming this loan are 
 guaranteed upon the general revenue of the Chinese Government. Further by 
 consent of the Chinese Government the Imperial Chinese Railway Administration 
 hereby declares that the net earnings of the said section of railway after payment 
 of ordinary working expenses are specially reserved for payment of interest 
 and repayment of the said bonds, as is set out in the Working Agreement made 
 between the said Imperial Chinese Railway Administration and the Pekin Syndi- 
 cate, and which working Agreement is to be taken as one with this Contract. 
 This reserve is exclusively for the purposes above set forth and is not divertible 
 until the final extinction of the bonds of this loan. 
 
 8. — The Imperial Chinese Railway Administration after having taken note 
 
 § See Note 1 to this document, post, p. 515.
 
 NUMBER 1905/5 : JULY 3, 1905 509 
 
 of the net receipts authorises the Pekin Syndicate to convert the amount into 
 gold which shall be done on the most favorable terms in the interest of the 
 Chinese Government and the Imperial Chinese Railway Administration in order 
 to assure the service of the loan at the next half-yearly period of payment. The 
 remittances to the head office of the Pekin Syndicate in London shall continue 
 until the sum necessary for the whole service of the loan at the next half-yearly 
 payment has been realised in gold and so that the service of the loan is assured 
 three months at least before the half-yearly payment falls due. 
 
 The bank in which such sums are deposited will allow the best interest 
 obtainable for the benefit of the Imperial Chinese Railway Administration. The 
 account in which said sums stand will be debited twenty days in advance with 
 all the payments falling due at any half-yearly period as provided for in this 
 Contract whether for interest repayment of capital cost of transport or com- 
 mission. 
 
 9. — In order to assure more fully the guarantee now given for the loan, the 
 Imperial Chinese Railway Administration creates in favor of the bonds a first 
 mortgage over the said section of railway line its permanent way rolling-stock 
 and earnings. This special hypothecation is made to and accepted by the Pekin 
 Syndicate for the benefit of the bondholders. 
 
 In case the Imperial Chinese Railway Administration shall fail to carry 
 out the engagements entered into by this Contract the Pekin Syndicate can 
 exercise in respect to the said railway and property all the rights and powers 
 which they are entitled to exercise resulting from this special hypothecation. 
 
 10. — The foregoing stipulations do not militate against the responsibility of 
 the Chinese Government in regard to this loan as specified in Article 7. The 
 Chinese Government will devise means to provide the amount in gold necessary 
 to supply the deficiency in case the sums accruing from the net earnings of the said 
 section of railway and paid over by the Chinese Railway Administration are 
 insufficient, after conversion into gold, to provide at least three months ahead 
 for the payment falling due at the next half-yearly period. 
 
 In such case the Chinese Government will on demand place at the disposal 
 of the Pekin Syndicate fourteen days in advance of the due date, either in gold 
 or value in some other form sufficient to produce in gold, the sum which the 
 Syndicate may have notified as being necessary to meet the service of the loan. 
 
 11. — From the monies thus received from the Imperial Chinese Railway 
 Administration or from the monies paid over by the Chinese Government the 
 Pekin Syndicate shall duly set aside beforehand the sums necessary for the next 
 service of the loan on the basis of the requirements of the last preceding half- 
 year. 
 
 12. — The Chinese Government will pay to the Pekin Syndicate or to the 
 bank charged with the service of the loan a commission of one-fourth of 1 per 
 cent, on the amount of interest coupons paid that is £25 on each £10,000 and 
 the like commission on all the bonds drawn for payment or repaid in antici- 
 pation of the due date. The amount of this commission will be taken from 
 surplus earnings of the railway if there are any, and in case these are insufficient 
 it will then be paid by the Chinese Government.
 
 510 CHINA TREATIES AND AGREEMENTS 
 
 13. — The Chinese Government binds itself to respect and cause to be re- 
 spected the privileges attaching to the bonds as stipulated for in the present 
 convention and to maintain the bonds themselves the interest coupons and 
 operations incident to the service of the loan free from every tax and impost 
 of whatsoever nature. 
 
 14. — Coupons not presented for payment within five years from the date 
 when they fall due will be forfeited for the benefit of the Chinese Government. 
 In the case of drawn bonds the term within which payment may be claimed 
 is thirty years. In the case of a deceased bondholder the right will pass to his 
 heirs executors etc. in conformity with the law of his own nationality. Pay- 
 ment of the coupons and repayment of bonds will be made whether in time of 
 war or peace and irrespective of whether the holder belongs to a hostile or 
 friendly State. 
 
 If bonds are lost stolen or destroyed the Chinese Government upon satis- 
 factory proof of the facts of the loss and the title of the claimant will authorise 
 the Pekin Syndicate to issue fresh bonds to replace those lost, at the expense of 
 the Syndicate. 
 
 15. — The Chinese Government through its Representative in London will 
 take the necessary steps and furnish the necessary documents so as to enable 
 the bonds to be officially quoted on the London Stock Exchange. 
 
 16. — The price of all land taken up for the railway having been included in 
 the loan, the Syndicate will in the first place hand over the title-deeds to the 
 Imperial Chinese Railway Administration so that a list may be made which 
 after being stamped by the Magistrates of the several districts concerned, will be 
 retained for record. The Railway Administration will then return the deeds to 
 the Syndicate for custody, having first impressed on each a stamp indicating 
 that they are not to be sold pledged or mortgaged. When the term has expired 
 or when the loan is fully repaid, the Syndicate will thereupon hand over to the 
 Railway Administration all the original title-deeds to be held by them as owners 
 of the property. During the continuance of the term the Syndicate shall not 
 assign the deeds to others whether by way of sale, mortgage or pledge. 
 
 17. — This Agreement and the rights under it being made with the Pekin 
 Syndicate which is of British nationality, the said Syndicate besides conform- 
 ing as hereby required, with the several articles of the Agreement shall not 
 either openly or secretly alienate the said rights to persons of another nationality 
 and shall not substitute persons of another nationality in the management of the 
 railway affairs. A breach of this stipulation will entitle the Imperial Chinese 
 Railway Administration to take the management out of the hands of the Syndi- 
 . cate and entrust it to another company, and in that case the Syndicate shall have 
 no claim for compensation. 
 
 The foregoing places no restriction on the holding of shares in the Pekin 
 Syndicate by persons of another nationality nor on the holding of bonds of this 
 loan, both of which may be freely bought and sold on the market at the con- 
 venience of the holders. 
 
 18. — In the accounts of this section there has been included an item for 
 preliminary survey expenses, as also the cost of partial surveys of the second
 
 NUMBER 1905/5: JULY 3, 1905 511 
 
 section which have already been made by the Syndicate, the result of which will 
 be submitted to the Director-General. 
 
 19. — All plant and materials necessary for the repair and working of 
 the line will be purchased by the Syndicate as agents, but in placing such orders 
 the Syndicate will do their best to get the most favorable terms. A list o'f articles 
 required shall be submitted to the Director-General, for approval, before the order 
 is given. 
 
 It is understood that articles which China herself can manufacture, if quality 
 and price are the same are not to be ordered from abroad. The workshops and 
 mines controlled by the Director-General Sheng ought more especially to have 
 the preference in supply of such articles provided that in quality and price 
 the articles are equivalent to what can be imported from abroad. By price is 
 meant the cost in the foreign country plus freight and insurance. All materials 
 imported from abroad shall be exempt from customs duty and from likin in 
 transit to the interior. 
 
 20. — In case of differences of opinion arising between the Pekin Syndicate 
 and the Chinese Government or the Imperial Chinese Railway Administration 
 the matter in dispute shall be discussed and settled between a member of the 
 Wai Wu Pu and the British Minister. If these cannot agree the Wai Wu 
 Pu and the British Minister will appoint an Arbitrator whose decision will 
 be final. 
 
 21. — This Agreement is executed in duplicate, one copy to be kept by the 
 Imperial Chinese Railway Administration and the other by the Pekin Syndicate. 
 In case of doubt or ambiguity of meaning between the two texts the English 
 version shall be deemed the standard. This contract shall be submitted to the 
 Throne by the proper authority who will request ratification. After ratification 
 the Wai Wu Pu will officially communicate the fact to the British Minister at 
 Peking for record and so that the Syndicate may conform to the articles hereby 
 agreed upon. 
 
 All the above must be done within one month from date of signature. 
 
 Signed and sealed at Peking the 3rd July 1905. 
 
 (Signed) G. Jamieson, 
 
 Agent-General, Pekin Syndicate Limited. 
 (Sgd.) Sheng Hsuan-huai.
 
 512 
 
 CHINA TREATIES AND AGREEMENTS 
 
 SCHEDULE OF AMORTISATION OF BONDS 
 
 Years 
 
 Bonds 
 outstanding 
 
 Bonds drawn 
 
 Interest 
 
 Amount 
 repaid 
 
 Total 
 
 1916 
 
 8,000 
 
 242 
 
 40,000 
 
 24,200 
 
 64,200 
 
 1917 
 
 7.758 
 
 254 
 
 38,790 
 
 25,400 
 
 64,190 
 
 1918 
 
 7,504 
 
 267 
 
 37,520 
 
 26,700 
 
 64,220 
 
 1919 
 
 7,2y^ 
 
 280 
 
 36,185 
 
 28,000 
 
 64,185 
 
 1920 
 
 6,957 
 
 299 
 
 34,785 
 
 29,300 
 
 64,085 
 
 1921 
 
 6,664 
 
 308 
 
 2,Z,Z2^ 
 
 30,800 
 
 64,120 
 
 1922 
 
 6,356 
 
 324 
 
 31,780 
 
 32,400 
 
 64,180 
 
 1923 
 
 6,032 
 
 341 
 
 30,160 
 
 34,100 
 
 64.260 
 
 1924 
 
 5,691 
 
 358 
 
 28,455 
 
 35,800 
 
 64.255 
 
 1925 
 
 5,333 
 
 376 
 
 26,665 
 
 37,600 
 
 64,265 
 
 1926 
 
 4,957 
 
 395 
 
 24,785 
 
 39,500 
 
 64,285 
 
 1927 
 
 4,562 
 
 414 
 
 22,810 
 
 41,400 
 
 64,210 
 
 1928 
 
 4,148 
 
 434 
 
 20,740 
 
 43,400 
 
 64,140 
 
 1929 
 
 3,714 
 
 456 
 
 18,570 
 
 45,600 
 
 64,170 
 
 1930 
 
 3,258 
 
 479 
 
 16,290 
 
 47,900 
 
 64,190 
 
 1931 
 
 2,779 
 
 503 
 
 13,895 
 
 50,300 
 
 64,195 
 
 1932 
 
 2,276 
 
 528 
 
 11.380 
 
 52,800 
 
 64,180 
 
 1933 
 
 1,748 
 
 554 
 
 8,740 
 
 55,400 
 
 64,140 
 
 1934 
 
 1,194 
 
 583 
 
 5,970 
 
 58,300 
 
 64,270 
 
 1935 
 
 611 
 
 611 
 
 3,055 
 
 61,100 
 
 64,155 
 
 (II.) — Working Agreement. 
 
 Working agreement between H. E. -Sheng Director-General of Railways 
 being thereto specially authorized by the Chinese Government and G. Jamieson, 
 C. M. G., Agent-General of the Pekin Syndicate Limited, 
 
 1- — The Imperial Chinese Railway Administration under the authority of 
 the Imperial Government authorises the Pekin Syndicate, which will appoint a 
 General Manager for the purpose, to manage, administer, and work the Taokow- 
 Chinghua section of railway for profit on behalf of the said Railway Administra- 
 tion. Notice of the appointment of the General Manager shall be communicated 
 beforehand to the Director-General for his information, and confirmation. 
 
 2. — As soon as this section of the line is completed the Pekin Syndicate 
 will report to the Director-General, and after being definitely taken over by
 
 NUMBER 1905/5: JULY 3, 1905 513 
 
 him the Pekin Syndicate will take charge of it for working. The section is 
 to be completely provided beforehand with all the rolling-stock necessary for 
 working as also with a supply of tools furniture and funds for working expenses. 
 The Pekin Syndicate or its delegate in conformity with the stipulation in Article 
 1 will organize the service. It will have authority to engage or dismiss officials 
 and servants, and as to their salaries, a scale thereof will be drawn up beforehand 
 for submission to the Director-General, and subsequent alterations will also be 
 submitted for his approval. The Syndicate shall also purchase all articles neces- 
 sary for the maintenance and repair of the line, shall fix rates for goods and 
 passengers in accordance with the railway regulations on other lines, shall receive 
 all the earnings and pay all the working expenses and expenses of the Imperial 
 Chinese Railway Administration relative to this line of railway. All the above 
 working details must be submitted beforehand by the Pekin Syndicate or its 
 delegate to the Director-General of Railways and settled in consultation. 
 
 The General Administration shall have the fullest power to examine the 
 details of income and expenditure and to appoint a Representative a Cashier 
 Accountant and an Interpreter who will be associated with the European staff 
 in order to exercise the above-mentioned power of examination. The salaries 
 of the Representative and his associates above-mentioned will be paid from 
 the office of the Tsechow-Taokow Railway. 
 
 The Representative shall countersign all vouchers for payment. Accounts 
 will be rendered monthly to the General Administration in English and Chinese 
 one copy each and signed by the respective English and Chinese officials. 
 
 The General Administration reserves the right to cause the dismissal of any 
 employee whatever his nationality including the General Manager who does 
 not perform his work satisfactorily or is guilty of misconduct insubordination or 
 disrespect towards the Chinese authorities, and this should be mentioned in the 
 contracts at the time of engagement of the employee. || 
 
 All Chinese Employees whether for repairs of line or otherwise will be 
 selected by the Representative of the Director-General who will place them 
 under the executive orders of the General Manager. No Chinese officials or 
 servants can be engaged without the sanction of the Director-General. The 
 expenses of the Shanghai Imperial Railway Administration in respect to this 
 line shall be paid in the same way as for the Luhan Railway. After this section 
 is finished and the working has begun, if additional rolling-stock or plant is re- 
 quired or if improvement or extensions of the line or stations become necessary, 
 the funds for the same shall be provided by the office of the Tsechow-Taokow 
 Railway. As regards orders for the supply of materials necessary for maintain- 
 ing and repairing the line means should be devised to place the same at Chinese 
 workshops. It is understood that the mines and workshops controlled by H. E. 
 Sheng shall have the preference on the conditions and at the price at which the 
 articles could be purchased abroad. By price is meant laying down price in 
 China. 
 
 3. — In the event of military operations whether due to foreign war or 
 internal disturbance the railway will give the preference to Chinese Govern- 
 
 II See Note 2 to this document, post, p. 516.
 
 514 CHINA TREATIES AND AGREEMENTS 
 
 ment troops stores or munitions of war over private merchandise in conveyance 
 over the Hne. 
 
 Rates to be charged in such cases shall be one-half of the ordinary rates 
 and in such matters the railway will carry out any special instructions given by 
 the Director-General. Articles tending to the injury of the Chinese Government 
 are not to be carried on the line. 
 
 In case of famine stores for relief will be carried at half rates. 
 
 Special arrangements will be made in consultation with the Representative 
 of the Director-General for conveyance of local authorities or members of the 
 Imperial Government travelling on important business over the line. Free passes 
 over the railway shall be countersigned by the Representative of the Director- 
 General. 
 
 4. — From the net earnings of the line after paying all working expenses 
 the Pekin Syndicate shall retain such sums as are necessary to meet the service 
 of the loan at least three months in advance of the next half-yearly payment. 
 This procedure will be followed until the whole loan is finally redeemed. The 
 sums retained will be paid over monthly to the Pekin Syndicate or to the bank 
 appointed for that purpose by the Syndicate. The latter will convert the sums so 
 received into gold at the best rate obtainable in order to be used for the service 
 of the loan. Information as to this will be given from time to time to the 
 Director-General. 
 
 When by means of monies thus paid over the service of the loan is assured 
 the Syndicate will set apart 10 per cent, of the surplus which will be devoted 
 to building up a reserve fund in order to meet the cost of ordinary or extraordi- 
 nary repairs with a view to assure the working of the line. The surplus of net 
 earnings still remaining will be paid over to the Imperial Chinese Railway 
 Administration. When the loan is all repaid in accordance with the next follow- 
 ing article the Syndicate or its representative will hand over to the Repre- 
 sentative of the Director-General all the line fixtures rolling-stock and appurte- 
 nances, the whole in good working condition. 
 
 5. — The duration of the present contract is fixed at thirty years from date 
 of signature. If however on the expiry of that date the loan is not fully paid 
 ofif the term of the contract will be necessarily extended and so it will continue 
 until the whole loan is finally redeemed. But if the loan is finally redeemed 
 before the due date the present working contract shall become null and void 
 from the date of such redemption. 
 
 6. — The Pekin Syndicate during the term of this contract for the working 
 of the line, shall be entitled to receive from the Imperial Chinese Railway Admin- 
 istration on making up the yearly accounts 20 per cent, of the surplus profits 
 of each year. By surplus profits is meant what is left over after providing for 
 payment of interest and redemption of capital. 
 
 7. — In case of dispute the matter is to be settled as provided in Article 
 20 of the principal contract. 
 
 8. — If the earnings are insufficient to meet working expenses the Imperial 
 Chinese Railway Administration will provide funds so as to enable the regular 
 working to be kept up. The funds thus supplied will be considered as a tempo-
 
 NUMBER 1905/5: JULY 3, 1905: NOTES 515 
 
 rary advance merely and to be paid as soon as the income exceeds the expenditure. 
 
 9. — All materials and suppHes which the Syndicate may require for the 
 working maintenance and repair of the line, shall if imported from abroad be 
 exempt from Customs duty and likin. 
 
 10. — The present contract is drawn up in two copies one for the Imperial 
 Chinese Railway Administration and the other for the Syndicate. In case of 
 doubt or difference in interpretation of the contract the English version shall 
 be deemed the standard. 
 
 This Contract shall be submitted to the Throne for ratification by the proper 
 authorities and when the Imperial sanction has been obtained, it will be communi- 
 cated by the Wai \Vu Pu in an official despatch to the British Alinister. 
 
 Signed and sealed at Peking the 3rd July 1905. 
 
 (Signed) G. Jamieson, 
 
 Agent-General, Pekin Syndicate, Limited. 
 (Sgd.) Sheng. 
 
 Note 1. 
 
 In this connection, see the following exchange of letters as printed in Wang, p. 355. 
 
 Exchange of Letters regarding Supplementary Taokow-Chinghua Railway Loan. — 
 
 July 2, 1905. 
 
 "IMPERIAL CHINESE RAILWAY ADMINISTRATION. 
 
 "Fa Hua Sze, Peking, 1st July, 1905. 
 " (TRANSLATION) 
 "G. Jamieson, Esq., G.M.G., 
 Agent General, 
 
 Pekin Syndicate Ltd., 
 Peking. 
 "Dear Sir, 
 
 "With reference to our discussion which we held here at the above address on the 
 20th and 29th June 1905 concerning the supplementary loan as stipulated in the 2nd Article 
 of the Loan Agreement of the Taokow-Chinghua Railway which reads, 'If after the line 
 is taken over the earnings of the line are insufficient to meet the payment for interest and 
 refund of capital at due date a further loan may be obtained from the Syndicate,' I have 
 now received instructions from the Wai Wu Pu to the effect that in the event of insuf- 
 ficiency, the loan further obtained from the Syndicate must not exceed £100,000, the Bonds 
 for such loan will be deposited with the Imperial Chinese Railway Administration ; when 
 any portion of this loan is required, the Pekin Syndicate on a month's notice, will be 
 prepared to take the bonds issued for such portion and furnish the money required which 
 the Imperial Chinese Railway Administration will hand to the Imperial Bank of China for 
 deposit before it is used; in case, however, that money is not required in time to come, the 
 Railway Administration will be at liberty to diminish the amount of this supplementary 
 loan. I hope, therefore, that you will send me a reply to the above effect so that it may 
 be annexed to the Agreement. 
 " I remain, 
 
 Dear Sir. 
 
 Yours faithfully, 
 
 (Signed) Sheng Hsuan Huai, 
 
 Director-General."
 
 516 CHINA TREATIES AND AGREEMENTS 
 
 " PEKIN SYNDICATE LIMITED. 
 
 "Peking, July 2nd, 1905. 
 " His Excellency Sheng Kung Pao, 
 
 " Director-General of Railways, &c. 
 " Your Excellency, 
 
 " I beg to acknowledge receipt of Your Excellency's letter of 1st July stating that you 
 had received instructions from the Wai Wu Pu that the further loan mentioned in Article 2 
 of Loan Agreement should not exceed £100,000 the bonds to be deposited with the Railway 
 Administration and the Syndicate to be prepared to take the bonds and furnish money as 
 required on a month's notice, &c. 
 
 " I beg to state in reply that I accept these terms, it being understood that the money 
 is exclusively for the use of the Taokow-Chinghua Railway and the bonds will be taken 
 at 90 per cent of face value. 
 
 " I have the honour to be, 
 Your Excellency's, 
 
 Most obedient humble servant, 
 
 (Signed) G. Jamieson, 
 
 Director and Agent General." 
 
 Note 2. 
 
 In Wang, p. 359, is printed the following letter in regard to this provision : 
 
 " PEKIN SYNDICATE LIMITED. 
 
 " Peking, July 29, 1905. 
 " His Excellency Sheng Kung Pao, 
 
 " Director General of Railways. 
 " Your Excellency, 
 
 " In reference to the stipulation in Art. 2 of Working Agreement that in agreements 
 with employees of the Railway it is to be stated that they are liable to dismissal if they 
 do not perform their work satisfactorily or are guilty of misconduct, &c., I beg to say 
 that this will be done in drawing up future agreements. As regards the present staff they 
 will be informed by circular that this provision exists, but their agreements being already 
 signed cannot be altered. These agreements however are only for short periods of 2 or 3 
 years. 
 
 " I have the honour to be, * 
 
 " Your Excellency's, 
 
 " Most obedient humble servant, 
 
 " (Signed) G. Jamieson, 
 
 "Director and Agent General." 
 
 NUMBER 1905/6. 
 
 GREAT BRITAIN AND JAPAN. 
 
 Agreement respecting the integrity of China, the general peace of Eastern Asia 
 and India, and the territorial rights and special itttercsts of the parties in 
 those regiotis.* — August 12, 1905. 
 
 Preamble. 
 The Governments of Great Britain and Japan, being desirous of replacing 
 the Agreement concluded between them on the 30th January, 1902,t by fresh 
 
 * Text as printed in British Parliamentary Paper, Japan, 1905, No. 2. Printed also in 
 British Treaty Series, 1905, No. 25; Traites et Conventions, p. 464; Hertslet, p. 606; Recueil, 
 p. 736; Am. Int. Law Journal, Supplement, vol. 1, p. 15; For. Rcl., 1905, p. 488. See Note 
 to this document, post, p. 518. 
 
 t No. 1902/2, ante.
 
 NUMBER 1905/6: AUGUST 12, 1905 517 
 
 stipulations, have agreed upon the following Articles, which have for their 
 object: — 
 
 (a) The consolidation and maintenance of the general peace in the regions 
 of Eastern Asia and of India ; 
 
 (b) The preservation of the common interests of all Powers in China by 
 insuring the independence and integrity of the Chinese Empire and the principle 
 of equal opportunities for the commerce and industry of all nations in China; 
 
 (c) The maintenance of the territorial rights of the High Contracting 
 Parties in the regions of Eastern Asia and of India, and the defence of their 
 special interests in the said regions : — 
 
 Article I. — It is agreed that whenever, in the opinion of either Great 
 Britain or Japan, any of the rights and interests referred to in the preamble 
 of this Agreement are in jeopardy, the two Governments will communicate 
 with one another fully and frankly, and will consider in common the measures 
 which should be taken to safeguard those menaced rights or interests. 
 
 Article II. — If by reason of unprovoked attack or aggressive action, wher- 
 ever arising, on the part of any other Power or Powers either Contracting Party 
 should be involved in war in defence of its territorial rights or special interests 
 mentioned in the preamble of this Agreement, the other Contracting Party will 
 at once come to the assistance of its ally, and will conduct the war in common, 
 and make peace in mutual agreement with it. 
 
 Article III. — Japan possessing paramount political, military, and economic 
 interests in Corea, Great Britain recognizes the right of Japan to take such meas- 
 ures of guidance, control, and protection in Corea as she may deem proper and 
 necessary to safeguard and advance those interests, provided always that such 
 measures are not contrary to the principle of equal opportunities for the com- 
 merce and industry of all nations. 
 
 Article IV. — Great Britain having a special interest in all that concerns the 
 security of the Indian frontier, Japan recognizes her right to take such measures 
 in the proximity of that frontier as she may find necessary for safeguarding 
 her Indian possessions. 
 
 Article V. — The High Contracting Parties agree that neither of them 
 will, without consulting the other, enter into separate arrangements with an- 
 other Power to the prejudice of the objects described in the preamble of this 
 Agreement. 
 
 Article VI. — As regards the present war between Japan and Russia, Great 
 Britain will continue to maintain strict neutrality unless some other Power or 
 Powers should join in hostilities against Japan, in which case Great Britain will 
 come to the assistance of Japan, and will conduct the war in common, and make 
 peace in mutual agreement with Japan. 
 
 Article VII. — The conditions under which armed assistance shall be afforded 
 by either Power to the other in the circumstances mentioned in the present Agree- 
 ment, and the means by which such assistance is to be made available, will be 
 arranged by the Naval and Military authorities of the Contracting Parties, who 
 will from time to time consult one another fully and freely upon all questions 
 of mutual interest.
 
 518 CHINA TREATIES AND AGREEMENTS 
 
 Article VIII. — The present Agreement shall, subject to the provisions of 
 Article VI., come into effect immediately after the date of its signature, and 
 remain in force for ten years from that date. 
 
 In case neither of the High Contracting Parties should have notified twelve 
 months before the expiration of the said ten years the intention of terminating 
 it, it shall remain binding until the expiration of one year from the day on which 
 either of the High Contracting Parties shall have denounced it. But if, when 
 the date fixed for its expiration arrives, either ally is actually engaged in war, 
 the alliance shall, ipso facto, continue until peace is concluded. 
 
 In faith whereof the Undersigned, duly authorized by their respective 
 Governments, have signed this Agreement and have affixed thereto their Seals. 
 
 Done in duplicate at London, the 12th day of August, 1905. 
 
 (L.S.) Lansdowne, 
 
 His Britannic Majesty's Principal Secretary of State for Foreign Affairs. 
 
 (L.S.) Tadasu Hayashi, 
 
 Etivoy Extraordinary and Minister Plenipotentiary of His Majesty 
 
 the Emperor of Japan at the Court of St. James. 
 
 Note. 
 
 This agreement was replaced by that of July 13, 1911 (No. 1911/7, post). It was for- 
 warded to the British Ambassador at St. Petersburg under cover of a dispatch dated 
 September 6, 1905, reading as follows : 
 
 " Foreign Office, September 6, 1905. 
 
 " Sir, — I enclose, for your Excellency's information, a copy of a new Agreement con- 
 cluded between His Majesty's Government and that of Japan in substitution for that of the 
 30th January, 1902. You will take an early opportunity of communicating the new Agree- 
 ment to the Russian Government. 
 
 " It was signed on the 12th August, and you will explain that it would have been 
 immediately made public but for the fact that negotiations had at that time already com- 
 menced between Russia and Japan, and that the publication of such a document whilst those 
 negotiations were still in progress would obviously have been improper and inopportune. 
 
 " The Russian Government will, I trust, recognize that the new Agreement is an inter- 
 national instrument to which no exception can be taken by any of the Powers interested in 
 the affairs of the Far East. You should call special attention to the objects mentioned in the 
 preamble as those by which the policy of the Contracting Parties is inspired. His Majesty's 
 Government believe that they may count upon the good will and support of all the Powers 
 in endeavouring to maintain peace in Eastern Asia, and in seeking to uphold the integrity 
 and independence of the Chinese Empire and the principle of equal opportunities for the 
 commerce and industry of alt nations in that country. 
 
 " On the other hand, the special interests of the Contracting Parties are of a kind upon 
 which they are fully entitled to insist, and the announcement that those interests must be 
 safeguarded is one which can create no surprise, and need give rise to no misgivings. 
 
 " I call your especial attention to the wording of Article II., which lays down dis- 
 tinctly that it is only in the case of an unprovoked attack made on one of the Contracting 
 Parties by another Power or Powers, and when that Party is defending its territorial 
 rights and special interests from aggressive action, that the other Party is bound to come 
 to its assistance. 
 
 "Article III., dealing with the question of Corea, is deserving of especial attention. 
 It recognizes in the clearest terms the paramount position which Japan at this moment 
 occupies and must henceforth occupy in Corea, and her right to take any measures which 
 she may find necessary for the protection of her political, military, and economic interests 
 in that country. It is, however, expressly provided that such measures must not be con- 
 trary to the principle of equal opportunities for the commerce and industry of other nations. 
 The new Treaty no doubt differs at this point conspicuously from that of 1902. It has,
 
 NUMBER 1905/7: AUGUST 29. 1905 519 
 
 however, become evident that Corea, owing to its close proximity to the Japanese Empire 
 and its inability to stand alone, must fall under the control and tutelage of Japan. 
 
 " His Majesty's Government observe with satisfaction that this point was readily con- 
 ceded by Russia in the Treaty of Peace recently concluded \vith Japan, and they have every 
 reason to believe that similar views are held by other Powers with regard to the relations 
 which should subsist between Japan and Corea. 
 
 " His IMajesty's Government venture to anticipate that the alliance thus concluded, 
 designed as it is with objects which are purely peaceful and for the protection of rights 
 and interests the validity of which cannot be contested, will be regarded with approval by 
 the Government to which you are accredited. They are justified in believing that its con- 
 clusion may not have been without effect in facilitating the settlement by which the war 
 has been so happily brought to an end, and they earnestly trust that it may, for many years 
 to come, be instrumental in securing the peace of the world in those regions which come 
 within its scope. 
 
 " I am, &c., (Signed) Lansdowne. 
 
 A similar despatch was addressed to the British Ambassador at Paris. 
 
 NUMBER 1905/7. 
 
 THE UNITED STATES (American China Development Company) AND 
 
 CHINA. 
 
 Agreement to sell the Canton-Hankozv Railway* — August 29, 1905. 
 
 This 29th of August, 1905, Chang, Hukuang Viceroy, representative of the 
 three provinces of Hunan, Hupeh, and Kwantung, and Liang, Envoy to the 
 United States of America and Mexico, acting on behalf of the Government 
 of the Chinese Empire, party of the first part; and the China Development 
 Company, of the State of New Jersey, U. S. A., party of the second part ; enter 
 into the following agreement: — 
 
 Whereas, by an Agreement of the 14th April 1898, made at Washington, 
 U. S. A., and by a supplementary agreement on 13th July 1900, the party of the 
 second part was invested with power to construct in the Empire of China a 
 railway from Hankow city to Canton city, together with the right to operate the 
 same; and Whereas, previous to the 7th of June 1905, the Imperial Chinese 
 
 * For the texts of the contracts of April 14, 1898, and July 13, 1900, granting the con- 
 cession for the Canton-Hankow (or Yiieh-Han) Railway, see Rockhill, p. 252; and 
 in connection with them, see (in Rockhill, p. 345, and in China, 1899, No. 1, p. 322) the 
 memorandum of agreement between the British and Chinese Corporation and the American 
 China Development Comtpany in regard to participation in railway business in China, 
 signed February 1, 1899, but subsequently determined in accordance with the provisions of 
 its 7th Article. 
 
 In reference to the cancellation of the concession, see For. ReL, 1905, pp. 124 et seq. 
 
 See the agreement between the Viceroy of the Hu-Kuang and the Government of Hong- 
 kong for a loan of £1,100,000 for the redemption of the concession (No. 1905/9, post). 
 
 The construction of the Canton-Hankow Railway has not yet been completed. The 
 southern portion of the line, within the Province of Kuangtung, is owned by a provincial 
 railway company, which has carried construction from Canton to the vicinity of Shiuchow, 
 about seventy miles south of the boundary between Kuangtung and Hunan. The northern 
 section, lying within Hupeh and Hunan, is included under the Hukuang Railway loan agree- 
 ment of May 20, 1911 (No. 1911/5, post) ; the line is in operation from Wuchang (on the 
 Yangtsze River, opposite Hankow) to Chuchow (about forty miles south of Changsha), 
 leaving approximately two hundred miles to be constructed in the Province of Hunan.
 
 520 CHINA TREATIES AND AGREEMENTS 
 
 Government cancelled the two agreements or the special powers aforesaid, de- 
 clarinet its determination itself to deal with the railroad in the said agreement 
 referred to and duly notified the party of the second part of said cancellation 
 of the agreement above mentioned; and Whereas, the two parties to the agree- 
 ment have agreed that the amount as such compensation to be paid by the party 
 of the first part to the party of the second part shall be Six Million, seven hundred 
 and fifty thousand American Gold Dollars; Now the terms decided upon are 
 set forth in a preliminary contract as follows : — 
 
 Preliminary contract agreed upon between the Imperial Chinese Gov- 
 ernment and the China Development Company of the United States of 
 America : — 
 
 Whereas the Chinese Government cancels and annuls the special powers 
 for building the Yueh-han Railway and its agreement and does not authorize 
 the China Development Co. to proceed with the railway work, but is willing 
 to pay compensation at a fair rate, this compensation is fixed at a total sum of 
 Gold $6,750,000.00. The Chinese Government may take over and control all 
 the Development Company's property in China, the railway already built, the 
 railroad materials, surveys and plans, special mining powers, together with all 
 powers and privileges in China thereunto appertaining, whether express or implied, 
 whatsoever absolutely. The Chinese Government loan bonds already taken up 
 by the Development Company, apart from the $2,222,000.00 already sold, shall 
 all be returned to the Chinese Government's custody. As regards the $2,222,000 
 already sold, the buyers may either retain or return them at their option and if the 
 buyers choose to retain them either wholly or in part, the amount, at the rate of $90 
 per $100 shall be deducted from the total sum of $6,750,000. Provided in any case 
 the $55,550 of interests accrued thereon and due on these $2,222,000 bonds upon 
 1st May 1905 must be duly paid by the Chinese Government within three months 
 from the date of these presents, the Chinese Government must pay an instalment 
 amounting to two millions of the total sum of 6}i millions of dollars and the 
 balance within six months of the said date unto the China Development Com- 
 pany. It is agreed that the said payments shall be duly provided by the Chinese 
 Government which shall on each instalment pay in addition interest at the rate 
 of 5% per annum from the first day of May 1905 to the date of the payment 
 of the same. 
 
 The foregoing agreement requires confirmation by the Chinese Government 
 and the Development Company's shareholders to render it binding. 
 Signed this 7th of June 1905 by 
 
 Foster Roots, 
 
 YiNG KO-LAN. 
 
 And whereas, the shareholders of the party of the second part did on the 
 29th of August 1905 in meeting assembled duly confirm the foregoing preliminary 
 contract and a majority of the shareholders and directors of the said party of 
 the second part have authorized the carrying out of the foregoing preliminary 
 agreement, the managers of the party of the second part are able to complete 
 the Agreement necessary for the carrying out of this contract.
 
 NUMBER 1905/7: AUGUST 29, 1905 521 
 
 And whereas, a decree of H. M., the Emperor of China, has duly confirmed 
 the above draft and appointed Chang, Hukuang Viceroy, and Liang, Envoy, 
 to carry out the original contract, Now therefore the two parties agree as 
 follows : 
 
 The party of the first part agrees to give to the party of the second part 
 American Gold Dollars 6^ millions together with interest at 5% per annum 
 from 1st May 1905 to date of payment whether one or several in the manner 
 following, that is to say on or before 7th September 1905 there shall be paid 
 two millions and the balance on or before December 1905 by the party of the 
 first part at New York in American Gold Dollars to the party of the second 
 part in full from the party of the first part, the party of the second part shall 
 thereupon be fully divested of all the special powers arising from all agreements 
 aforesaid and any and every demand which on account of the cancellation 
 of such agreements aforesaid could be made on the Imperial Chinese Government. 
 And in accordance with the above arrangement, the party of the second 
 part shall return in full to the party of the first part the property in China 
 of the China Development Company, the railroad complete, the railroad 
 materials, plans, surveys, all special mining powers together with all property 
 in China of the China Development Company whatsoever whether express or 
 implied. 
 
 The two parties to this agreement both are desirous that the Imperial Govern- 
 ment of China shall take over full control of the property in China accruing to 
 the party of the second part under each of the above referred agreements, but 
 they mutually declare that until payment of the final instalment, all present 
 conditions shall remain unchanged and the status and privileges of the party of 
 the second part shall not on any account of this agreement be altered. They 
 mutually declare further that the party of the second part shall within forty days 
 from date hereof notify the party of the first part of the retention or delivery 
 to the party of the first part of the $2,222,000 of loan bonds of the Imperial 
 Chinese Government already sold. Should the holder or holders of such bonds 
 not inform the party of the second part in due time of his or their determination, 
 the said holder or holders shall thereby be taken to have elected to retain the loan 
 bonds and the party of the first part shall be at liberty for every bond retained 
 at the rate of 90 cents to the $ to deduct from the final payment the amount 
 thereof. The party of the first part agrees to pay on the loan bonds already 
 sold the interest from the 1st May 1905 due up to or before the 7th September 
 1907 and further to pay principal and interest when due to the holders of all 
 loan bonds retained, and it is mutually agreed that the preliminary Agreement 
 of 7th June 1905 having been recognized as valid by both parties shall be 
 thoroughly carried out. 
 
 On the day and year just above mentioned the party of the first part 
 through Hukuang Viceroy Chang and Envoy Liang in virtue of Imperial Decree 
 sign this agreement in duplicate and the party of the second part through 
 the General Manager and Secretary of the said Company sign this Agree- 
 ment in duplicate and affix the seal of the said Company in token of 
 good faith.
 
 522 CHINA TREATIES AND AGREEMENTS 
 
 Signed by Hukuang Viceroy Chang, representing Hunan, Hupeh and Kwang- 
 tung, by Liang, Envoy. 
 
 By General Manager of the China Development Company, 
 
 Whittier. 
 
 By Secretary of the China Development Company, ? 
 
 Witnesses : 
 
 YiNG KO-LAN 
 
 Foster. 
 
 NUMBER 1905/8. 
 
 RUSSIA AND JAPAN. 
 Treaty of peace * — September 5, 1905. 
 
 His Majesty the Emperor of Japan on the one part, and His Majesty the 
 Emperor of all the Russias on the other part, animated by the desire to restore 
 the blessings of peace to Their countries and peoples, have resolved to conclude 
 a Treaty of Peace, and have, for this purpose, named Their Plenipotentiaries, that 
 is to say : 
 
 His Majesty the Emperor of Japan: 
 
 His Excellency Baron Komura Jutaro, Jusammi, Grand Cordon of the 
 Imperial Order of the Rising Sun, His Minister for Foreign Alifairs, and 
 
 His Excellency M. Takahira Kogoro, Jusammi, Grand Cordon of the Im- 
 perial Order of the Sacred Treasure, His Envoy Extraordinary and Minister 
 Plenipotentiary to the United States of America; 
 
 and His Majesty the Emperor of all the Russias: 
 
 His Excellency M. Serge Witte, His Secretary of State and President of 
 the Committee of Ministers of the Empire of Russia, and 
 
 His Excellency Baron Roman Rosen, Master of the Imperial Court of 
 Russia and His Ambassador Extraordinary and Plenipotentiary to the United 
 States of America; 
 
 Who, after having exchanged their full powers which were found to be in 
 good and due form, have concluded the following Articles: 
 
 Article I. — There shall henceforth be peace and amity between Their 
 Majesties the Emperor of Japan and the Emperor of all the Russias and between 
 Their respective States and subjects. 
 
 Article II. — The Imperial Russian Government, acknowledging that Japan 
 possesses in Corea paramount political, military and economical interests, engage 
 
 ♦English text as printed in Traitcs et Conventions, p. 585. Printed also, in French 
 text, on p. 97 of the Orange Book containing protocols of the Portsmouth peace conference, 
 published by the Russian Ministry for Foreign Affairs, St. Petersburg, 1906; Hertslet, p. 
 608; Recueil, p. 741. See Note to this document, post, p. 527.
 
 NUMBER 1905/8: SEPTEMBER 5, 1905 523 
 
 neither to obstruct nor interfere with the measures of guidance, protection and 
 control which the Imperial Government of Japan may find it necessary to take 
 in Corea. 
 
 It is understood that Russian subjects in Corea shall be treated exactly in 
 the same manner as the subjects or citizens of other foreign Powers, that is to 
 say, they shall be placed on the same footing as the subjects or citizens of the 
 most favoured nation. 
 
 It is also agreed that, in order to avoid all cause of misunderstanding, the 
 two High Contracting Parties will abstain, on the Russo-Corean frontier, from 
 taking any military measure which may menace the security of Russian or 
 Corean territory. 
 
 Article III. — Japan and Russia mutually engage: 
 
 1. To evacuate completely and simultaneously Manchuria except the terri- 
 tory affected by the lease of the Liao-tung Peninsula, in conformity with the 
 provisions of additional Article I. annexed to this Treaty; and 
 
 2. To restore entirely and completely to the exclusive administration of 
 China all portions of Manchuria now in the occupation or under the control of the 
 Japanese or Russian troops, with the exception of the territory above mentioned. 
 
 The Imperial Government of Russia declare that they have not in Man- 
 churia any territorial advantages or preferential or exclusive concessions in 
 impairment of Chinese sovereignty or inconsistent with the principle of equal 
 opportunity. 
 
 Article IV. — Japan and Russia reciprocally engage not to obstruct any 
 general measures common to all countries, which China may take for the develop- 
 ment of the commerce and industry of Manchuria. 
 
 Article V. — The Imperial Russian Government transfer and assign to the 
 Imperial Government of Japan, with the consent of the Government of China, 
 the lease of Port Arthur, Talien and adjacent territory and territorial waters 
 and all rights, privileges and concessions connected with or forming part of such 
 lease and they also transfer and assign to the Imperial Government of Japan 
 all public works and properties in the territory affected by the above mentioned 
 lease. 
 
 The two High Contracting Parties mutually engage to obtain the consent 
 of the Chinese Government mentioned in the foregoing stipulation. 
 
 The Imperial Government of Japan on their part undertake that the pro- 
 prietary rights of Russian subjects in the territory above referred to shall be 
 perfectly respected. 
 
 Article VI. — The Imperial Russian Government engage to transfer and 
 assign to the Imperial Government of Japan, without compensation and with 
 the consent of the Chinese Government, the railway between Chang-chun (Kuan- 
 cheng-tzu) and Port Arthur and all its branches, together with all rights, privi- 
 leges and properties appertaining thereto iji that region, as well as all coal mines 
 in the said region belonging to or worked for the benefit of the railway. 
 
 The two High Contracting Parties mutually engage to obtain the consent 
 of the Government of China mentioned in the foregoing stipulation. 
 
 Article VII. — Japan and Russia engage to exploit their respective railways
 
 524 CHINA TREATIES AND AGREEMENTS 
 
 in Manchuria exclusively for commercial and industrial purposes and in no wise 
 for strategic purposes. 
 
 It is understood that that restriction does not apply to the railway in the 
 territory affected by the lease of the Liao-tung Peninsula. 
 
 Article VIII. — The Imperial Governments of Japan and Russia, with a view 
 to promote and facilitate intercourse and traffic, will, as soon as possible, con- 
 clude a separate convention for the regulation of their connecting railway services 
 in Manchuria.f 
 
 Article IX. — The Imperial Russian Government cede to the Imperial Gov- 
 ernment of Japan in perpetuity and full sovereignty, the southern portion of the 
 Island of Saghalien and all islands adjacent thereto, and all public works and 
 properties thereon. The fiftieth degree of north latitude is adopted as the north- 
 ern boundary of the ceded territory. The exact alignment of such territory shall 
 be determined in accordance with the provisions of additional Article II. annexed 
 to this Treaty. 
 
 Japan and Russia mutually agree not to construct in their respective pos- 
 sessions on the Island of Saghalien or the adjacent islands, any fortifications or 
 other similar military works. They also respectively engage not to take any 
 military measures which may impede the free navigation of the Straits of La 
 Perouse and Tartary. 
 
 Article X. — It is reserved to the Russian subjects inhabitants of the ter- 
 ritory ceded to Japan, to sell their real property and retire to their country ; but, 
 if they prefer to remain in the ceded territory, they will be maintained and pro- 
 tected in the full exercise of their industries and rights of property, on condition 
 of submitting to Japanese laws and jurisdiction. Japan shall have full liberty to 
 withdraw the right of residence in, or to deport from, such territory, any in- 
 habitants who labour under political or administrative disability. She engages, 
 however, that the proprietary rights of such inhabitants shall be fully 
 respected. 
 
 Article XI.$ — Russia engages to arrange with Japan for granting to Japa- 
 nese subjects rights of fishery along the coasts of the Russian possessions in the 
 Japan, Okhotsk and Behring Seas. 
 
 It is agreed that the foregoing engagement shall not affect rights already 
 belonging to Russian or foreign subjects in those regions. 
 
 Article XII. § — The Treaty of Commerce and Navigation between Japan 
 and Russia having been annulled by the war, the Imperial Governments of Japan 
 and Russia engage to adopt as the basis of their commercial relations, pending the 
 conclusion of a new treaty of commerce and navigation on the basis of the 
 Treaty which was in force previous to the present war, the system of reciprocal 
 treatment on the footing of the most favoured nation, in which are included 
 import and export duties, customs formalities, transit and tonnage dues, and the 
 
 t Such a convention was concluded June 13, 1907 (No. \907/9, post). 
 
 t A fisheries convention was concluded between Japan and Russia on July 28, 1907. 
 
 § A treaty of commerce and navigation, with separate articles, protocol and exchange 
 of notes attached thereto, and a protocol relating to certain Japanese and Russian con- 
 sulates, were concluded between Japan and Russia on July 28, 1907. See also the political 
 convention of July 30, 1907 (No. 1907/11, post).
 
 NUMBER 1905/8: SEPTEMBER 5, 1905 525 
 
 admission and treatment of the agents, subjects and vessels of one country in the 
 territories of the other. 
 
 Article XIII. — As soon as possible after the present Treaty comes into 
 force, all prisoners of war shall be reciprocally restored. The Imperial Govern- 
 ments of Japan and Russia shall each appoint a special Commissioner to take 
 charge of prisoners. All prisoners in the hands of one Government shall be 
 delivered to and received by the Commissioner of the other Government or by his 
 duly authorized representative, in such convenient numbers and at such convenient 
 ports of the "delivering State as such delivering State shall notify in advance to 
 the Commissioner of the receiving State. 
 
 The Governments of Japan and Russia shall present to each other, as soon 
 as possible after the delivery of prisoners has been completed, a statement of the 
 direct expenditures respectively incurred by them for the care and maintenance 
 of prisoners from the date of capture or surrender up to the time of death or de- 
 livery. Russia engages to repay to Japan, as soon as possible after the exchange 
 of the statements as above provided, the diflference between the actual amount 
 so expended by Japan and the actual amount similarly disbursed by Russia. 
 
 Article XIV. — The present Treaty shall be ratified by Their Majesties the 
 Emperor of Japan and the Emperor of all the Russias. Such ratification shall, 
 with as little delay as possible and in any case not later than fifty days from the 
 date of the signature of the Treaty, be announced to the Imperial Governments 
 of Japan and Russia respectively through the French Minister in Tokio and the 
 Ambassador of the United States in Saint Petersburg and from the date of the 
 later of such announcements this Treaty shall in all its parts come into full 
 force. 
 
 The formal exchange of the ratifications shall take place at Washington as 
 soon as possible. || 
 
 Article XV. — The present treaty shall be signed in duplicate in both the 
 English and French languages. The texts are in absolute conformity, but in case 
 of discrepancy in interpretation, the French text shall prevail. 
 
 In witness whereof, the respective Plenipotentiaries have signed and affixed 
 their seals to the present Treaty of Peace. 
 
 Done at Portsmouth (New Hampshire) this fifth day of the ninth month 
 of the thirty-eighth year of Meiji, corresponding to the twenty-third day of 
 August (fifth September) one thousand nine hundred and five. 
 
 (Signed) Jutaro Komura. [l.s.] (Signed) Serge Witte. [l.s.] 
 
 (Signed) K. Takahira. [l.s.] (Signed) Rosen, [l.s.] 
 
 ADDITIONAL ARTICLES. 
 
 In conformity with the provisions of Articles III. and IX. of the Treaty of 
 Peace between Japan and Russia of this date, the undersigned Plenipotentiaries 
 have concluded the following additional Articles : — 
 
 II Ratifications were exchanged at Washington, November 25, 1905.
 
 526 CHINA TREATIES AND AGREEMENTS 
 
 I. — To Article III. 
 
 The Imperial Governments of Japan and Russia mutually engage to com- 
 mence the withdrawal of their military forces from the territory of Manchuria 
 simultaneously and immediately after the Treaty of Peace comes into operation, 
 and within a period of eighteen months from that date, the Armies of the two 
 countries shall be completely withdrawn from Manchuria, except from the leased 
 territory of the Liao-tung Peninsula. 
 
 The forces of the two countries occupying the front positions shall be first 
 withdrawn. 
 
 The High Contracting Parties reserve to themselves the right to maintain 
 guards to protect their respective railway lines in Manchuria. The number of 
 such guards shall not exceed fifteen per kilometre and within that maximum 
 number, the Commanders of the Japanese and Russian Armies shall, by common 
 accord, fix the number of such guards to be employed, as small as possible having 
 in view the actual requirements. 
 
 The Commanders of the Japanese and Russian forces in Manchuria shall 
 agree upon the details of the evacuation in conformity with the above principles, 
 and shall take by common accord the measures necessary to carry out the 
 evacuation as soon as possible and in any case not later than the period of 
 eighteen months. 
 
 II. — To Article IX. 
 
 As soon as possible after the present Treaty comes into force, a Com- 
 mission of Delimitation, composed of an equal number of members to be appointed 
 respectively by the two High Contracting Parties, shall on the spot, mark in a 
 permanent manner the exact boundary between the Japanese and Russian pos- 
 sessions on the Island of Saghalien. The Commission shall be bound, so far as 
 topographical considerations peiimit, to follow the fiftieth parallel of north 
 latitude as the boundary line, and in case any deflections from, that line at any 
 points are found to be necessary, compensation will be made by correlative deflec- 
 tions at other points. It shall also be the duty of the said Commission to prepare 
 a list and description of the adjacent islands included in the cession and finally 
 the Commission shall prepare and sign maps showing the boundaries of the ceded 
 territory. The work of the Commission shall be subject to the approval of the 
 High Contracting Parties. 
 
 The foregoing additional Articles are to be considered as ratified with the 
 ratification of the Treaty of Peace to which they are annexed. 
 
 Portsmouth, the 5th day, 9th month, 38th year of Meiji, corresponding to 
 
 23rd August, 
 
 the 1905. 
 
 5th September, 
 
 (Signed) Jutaro Komura. (Signed) Serge Witte. 
 
 (Signed) K. Takahira. (Signed) Rosen.
 
 NUxMBER 1905/8: SEPTEMBER 5, 1905: NOTE 527 
 
 Note. 
 
 In connection with this treaty see also the protocol of armistice signed at Portsmouth 
 September 1, 1905, as follows: ' 
 
 Protocol of Armistice between Japan and Russia.— September i, 1905. 
 
 "The undersigned Plenipotentiaries of Japan and Russia duly authorised to that effect 
 by their Governments have agreed upon the following terms of armistice between the bel- 
 ligerents, pending the coming into force of the Treaty of Peace : — 
 
 "1. A certain distance (zone of demarcation) shall be fixed between the fronts of the 
 armies of the two Powers in Manchuria as well as in the region of the Tomamko (Tumen). 
 
 "2. The naval forces of one of the belligerents shall not bombard territory belonging 
 to or occupied by the other. 
 
 "3. Maritime captures will not be suspended by the armistice. 
 
 "4. During the term of the armistice reinforcements shall not be dispatched to the 
 theatre of war. Those which are en route shall not be dispatched to the north of Mukden 
 on the part of Japan and to the south of Harbin on the part of Russia. 
 
 " 5. The commanders of the armies and fleets of the two Powers shall determine in 
 common accord the conditions of the armistice in conformity with the provisions above 
 enumerated. 
 
 "6. The two Governments shall give orders to their commanders immediately after 
 the signature of the Treaty of Peace in order to put this protocol in execution. 
 
 " Portsmouth, 1st September, 1905. 
 
 "(Signed.) " Jutaro Komura, 
 " K. Takahira. 
 " Serge Witte. 
 " Rosen." 
 
 (Translation from the French text printed on p. 96 of the Russian Orange Book con- 
 taining protocols of the Portsmouth peace conference; St. Petersburg, 1906.) 
 
 For the protocol of military armistice arranged between the respective commanders on 
 September 13, 1905, and the protocol of naval armistice of September 18, 1905 see For Rel 
 1906, p. 1085. 
 
 On October 30, 1905, the respective military authorities concluded the following Protocol 
 of the procedure in withdrawing troops of the Japanese and Russian Armies from Man- 
 churia, and transferring the Railways : 
 
 Protocol concerning Withdrawal of Japanese and Russian Armies from Manchuria, 
 and Transfer of Railways. — October 30, 1905. 
 
 "Article I.— The following agreement has been concluded in accordance with the sup- 
 plementary agreement relating to Article III of the treaty of peace between Japan and 
 Russia at Portsmouth on September 5 of this year (August 2c>) : 
 
 " 1. The Japanese troops occupying the front positions in Manchuria shall be with- 
 drawn within the zone of Fakumen, Chinchiatung, Changtu, Weiyanpaomen, and Fushun 
 by December 31 (18), 1905. The Russian troops occupying the front positions in Man- 
 churia shall be withdrawn within the zone of Itunchou, Yekhotien Weitzukou, Pamiencheng, 
 and Shanchengtzu by the same date. 
 
 "2. By June 1 (INIay 19), 1906, the Japanese troops shall be withdrawn to the line of 
 Fakumen, Tieling, and Fushun and to the south thereof, and the Russian troops to the line 
 of Shanchengtzu, Kungshunglieng Railway Station, Itunchou, and to the north thereof. 
 
 "3. By August 1 (July 19), 1906, the Japanese troops shall be withdrawn to the Hne of 
 Hsinmintun. Mukden, and Fushun, and to the south thereof ; and the Russian troops to the 
 line of Shanhotun, Kuanchengtzu, and Palipu, and to the north thereof. 
 
 "4. Neither of the two contracting powers shall have more than 250,000 combatants in 
 Manchuria after April 15 (April 2), or 75,000 after October 15 (October 2), 1906. Both 
 contracting powers are required to complete the withdrawal of their troops bv Aoril IS 
 (April 2), 1907. f y y 
 
 " 5. In accordance with supplementary agreement I to the treaty of peace, the number 
 of guards to protect their respective railways in Manchuria shall be 15 per kilometer on the 
 average. 
 
 " Article II.— For the purpose of transferring the railways, each of the two contracting 
 powers shall appoint a commission consisting of three persons selected from officers and 
 experts belonging to the section of military communication. 
 
 " The said commission shall commence its work between April 10 and 20, 1906 (new 
 calendar) ; and the place and time of meeting shall be determined later. 
 
 " The transfer and receiving of railways south of Kuanchengtzu Station and those at 
 Kuanchengtzu Station, as well as north thereof, shall be completed before June 1 (May 19), 
 1906, and August 1 (July 19), 1906, respectively.
 
 528 CHINA TREATIES AND AGREEMENTS 
 
 " The determination of the extreme northern point of the railways to be transferred 
 to Japan shall be left to diplomatic negotiations. 
 
 "The undersigned, having been duly empowered by the commanders in chief of the 
 Japanese and Russian armies, hereby certify that they have made this protocol in duplicate 
 in both the Japanese and the Russian languages, and that each side keeps a text each in the 
 Japanese and the Russian Languages. 
 
 "Done at Sz-ping-kai Railway Station on October 30 (17), 1905. 
 
 " (Signed) Major-General Yasumasa Fukushima, 
 
 Staif of the Japanese Army in Manchuria. 
 " (Signed) Major-General Olanovsky, 
 
 Second in Command of the Staff of the Russian Army in Manchuria." 
 
 (For. Rcl. of the U. S., 1906, p. 189.) 
 
 An accompanying memorandum relating to the crossing of the neutral zone between the 
 Japanese and Russian armies is to be found in For. Rel., 1906, p. 188. 
 
 With particular reference to the transfers provided for in Articles 5 and 6, see the 
 treaty between Japan and China, December 22, 1905 (No. 1905/18, post). See also the 
 political conventions between Japan and Russia of July 30, 1907 (No. 1907/11, post), July 
 4, 1910 (No. 1910/1, post), and July 3, 1916 (No. 1916/9, post). 
 
 NUMBER 1905/9. 
 
 GREAT BRITAIN (Government of Hongkong) AND CHINA. 
 
 Agreement for a loan for the redemption of the Canton-Haiikozv Railway con- 
 cession.^ — September 9, 1905. 
 
 This Agreement is made between His Excellency Chang, Junior Guardian 
 of the Heir Apparent, Viceroy of the Hukuang Provinces of China of the one 
 part and the Government of Hongkong of the other part. 
 
 The Viceroy has been imperially appointed to devise means for the resump- 
 tion of the Canton-Hankow Railway and the present loan has been referred to the 
 Throne and His Majesty the Emperor of China has issued a Decree approving of 
 the Agreement being made by the Viceroys of the Hukuang and Liangkuang and 
 the Governor of Hunan for themselves and their successors in office. 
 
 Whereas the Viceroy is charged with the settlement of all questions con- 
 cerning the Hankow-Canton Railway and for this purpose is in need of funds 
 to redeem the Concession for the building thereof heretofore granted to an 
 American company, and whereas the Viceroy has officially applied to the Gov- 
 ernment of His Britannic Majesty for financial assistance to buy back the shares 
 in the said American company and so perform the said special charge laid upon 
 His Excellency and whereas the Government of Hongkong has agreed at the 
 instance of the Government of His Britannic Majesty to aflford His Excellency 
 the Viceroy the assistance applied for 
 
 It is now agreed as follows : — 
 
 1. — The Government of Hongkong agrees to lend to the three provinces of 
 
 * Text as printed in Wang, p. 537 (omitting the schedule of payments of interest and 
 repayment of principal). 
 
 For the agreement for the sale of the American China Development Company's con- 
 cession, August 29, 1905, sec No. 1905/7, ante. 
 
 See Note to this document, post, p. 530.
 
 NUMBER 1905/9 : SEPTEMBER 9, 1905 529 
 
 Hupei, Hunan and Kuangtung the siini of one million one hundred thousand 
 pounds sterling payable as set forth in Clause 7 below. The exact division of 
 the responsibility for this sum will be settled and announced later. 
 
 2. — The term of the loan shall be ten years calculated from the sixth day 
 of October 1905 and repayment of principal shall be made by ten equal instal- 
 ments of Pounds one hundred and ten thousand (£110,000) each commencing 
 on the sixth day of October 1906, provided that at any time after the payment of 
 the fifth annual instalment the three Provinces shall be at liberty on giving six 
 calendar months notice beforehand to pay off the whole amount of the principal 
 then outstanding with interest up to the date of such paying off only and there- 
 upon this Agreement shall cease and terminate. 
 
 3. — Interest on the loan shall be paid at the rate of four and a half per cent, 
 calculated half-yearly on the amount of principal from time to time outstanding. 
 
 4. — All payments of interest and repayments of principal shall be made in 
 accordance with the amounts and dates of the schedule attached to this Agree- 
 ment to the Treasurer of Hongkong at Hongkong in sterling sight drafts or in the 
 equivalent of sterling amount at the option of the Government of Hongkong. 
 
 5. — This Loan shall be secured by a first mortgage on the Opium Revenues 
 of the three Provinces of Hupei, Hunan and Kuangtung and shall as regards 
 security for principal and interest rank before any Loan hereafter raised on the 
 security of those revenues and the priority of this Loan shall be expressly stated 
 in any agreement for such subsequent loan secured wholly or in part on the 
 said Opium Revenues. Should hereafter the Opium Revenues of the three 
 Provinces not suffice to meet payments the Viceroy of Hukuang may agree with 
 the Hunan and Kuangtung Governments which province's quota is insufficient 
 and such province shall supplement the above Opium Revenues by other revenues 
 for the service of the present Loan ; but in case of default with regard to pay- 
 ments of interest or repayment of principal of the present Loan the Viceroy 
 may be called upon by His Britannic Majesty's Government to agree with Kuang- 
 tung and Hunan which province is in default and that province shall appropriate 
 and place under administration of Imperial Maritime Customs further approved 
 revenues as its security. 
 
 6. — This Loan shall be further secured by deposit with His Britannic 
 Majesty's Consul-General at Hankow of sterling Likin yearly Bonds equal in 
 value altogether to the total amount of the Loan, principal and interest, sealed 
 by the Viceroy of the Hukuang Provinces and countersigned by the foreign Com- 
 missioner of Customs at Hankow. In the event of the money to meet a payment 
 of interest or instalment of principal not being handed to the Hongkong Treas- 
 urer at Hongkong on due date these Likin Bonds shall become available for the 
 payment of likin in the Hukuang Provinces and Kuangtung; and the provincial 
 authorities shall be instructed accordingly. 
 
 7. — Of the proceeds of this Loan the Government of Hongkong on the 6th 
 day of October 1905 shall remit £400,000 to the Hongkong and Shanghai Bank 
 Hankow to the credit of the Viceroy Chang and shall on the said 6th day of 
 October 1905 also remit £700,000 to New York to the credit of the Chinese 
 Minister His Excellency Liang; and the Hongkong Government may require
 
 530 CHINA TREATIES AND AGREEMENTS 
 
 from the Viceroy through His Britannic Majesty's Consul General at Hankow 
 such evidence as he may deem satisfactory of the due employment of the funds 
 for the object stated. 
 
 8. — Before the execution of this Agreement the Viceroy has reported to the 
 Throne and obtained an Imperial Decree approving and sanctioning this Loan 
 Agreement which Decree will be communicated to His Britannic Majesty's Minis- 
 ter at Peking by the Wai Wu Pu officially. 
 
 9. — The Viceroy has by telegraph consulted the Viceroy of the Liang- 
 kuang who has replied consenting to the pledging of the Opium Revenues of 
 Kuangtung and to the terms of this Agreement so far as they affect that Province. 
 
 10. — This Agreement is executed in six parts in English and Chinese one 
 copy to be retained by the Hukuang Viceroy, one copy by the Canton Viceroy, 
 one copy by the Hunan Governor, one copy by the Government of Hongkong, 
 one copy by His Britannic Majesty's Minister at Peking and one copy by His 
 Britannic Majesty's Consul-General at Hankow. 
 
 In the event of any doubt arising as to the interpretation of the Contract 
 the English text shall rule. 
 
 Signed at Wuchang by the contracting parties this eleventh day of the 
 eighth moon of the year thirty one of the Reign Kuang Hsii being the ninth 
 day of September 1905, Western Calendar. 
 
 H. B. M.'s Consul General, Hankow, 
 for the Government of Hongkong, 
 [Signature and Seal] 
 
 Viceroy 
 
 [Signature and Seal] 
 
 Note. 
 
 It is understood that, in connection with this agreement, Viceroy Chang Chih-tung on 
 September 9, 1905, gave to the British Consul General at Hankow (Mr. Everard H. Eraser) 
 a letter of which the following is a translation : 
 
 Letter of Hukuang Viceroy regarding Preference to British Nationals in Railway 
 Construction in Hupeh and Hunan. — September g, 1905. 
 
 " In view of your services in obtaining for me the present loan for the redemption of 
 the Canton-Hankow Railway and the very fair terms on which it has been arranged, I have 
 the honor to give the following assurance which binds the viceroys and governors of the 
 three provinces of Hupeh, Hunan, and Kuangtung and their successors in office who have 
 power to deal with railways : 
 
 " As regards funds for the future construction of the Canton-Hankow Railway, in 
 case it is necessary to borrow abroad in addition to the amount China may herself pro- 
 vide, the first application shall be made to England, and if the British tender is, as regards 
 interest and issue price, equal to the tenders of other countries, British financiers shall have 
 the first option of undertaking the business ; if in the above and other respects the tenders 
 of other countries are fairer and more favorable than England's, China will be free to choose 
 the fairest and most favorable and make other arrangements for borrowing. 
 
 " If funds for constructing the Canton-Hankow Railway have been borrowed from 
 England, then for the machinery and materials required for that line, apart from what 
 China has of her own making, if bought abroad, British firms and works shall first be 
 applied to, and if their tenders are of similar cost to those made by other countries' firms 
 and works, the British works shall have the first option of undertaking the orders; if the 
 wares of other countries are excellent and the price moderate, China shall be free to con- 
 tract for purchase from the most suitable.
 
 NUMBER 1905/10: SEPTEMBER 27, 1905 531 
 
 " Beyond this, if within the jurisdiction of Hupeh and Hunan there are other railway 
 construction enterprises which likewise necessitate loans from abroad, they shall be dealt 
 with on the system set forth above as applicable to the Canton-Hankow Railway loans. 
 
 "With regard to the engineers needed for the construction of the railways, I declare 
 that one-half will be of the nation that lends the funds and the other half will be Japa- 
 nese. The work will be divided into sections for undertaking, and each nation will attend 
 to its own business. China will retain control as regards all railway companies, their em- 
 ployees, selection of land, management of lines, and running of cars; the engineers will 
 only attend to the affairs of the requisite works within their sections and may not inter- 
 fere in anything else. 
 
 " I am communicating officially with the officers concerned, and I have, etc., etc. 
 
 " (Seal of Hukuang Viceroy.) " 
 
 Under date of June 21, 1918, it is understood, the Chinese Ministry for Foreign Affairs 
 had occasion to address to the British Legation in Peking a note in which it was stated 
 that, " with reference to the note formerly given the British Consul at Hankow by the 
 Hukuang Viceroy, it is clearly stated in Article 2 of the Hongkong agreement that when 
 the capital and interest have been paid the agreement shall be cancelled. The note referred 
 to was an addendum to the said agreement. The capital and interest specified in the 
 agreement have long been paid, and so the agreement has now no force ; so any addendum to 
 the agreement has also ceased to have force." 
 
 NUMBER 1905/10. 
 
 INTERNATIONAL AND CHINA. 
 Nezv agreement for the Huangpu conservancy."^ — September 27, 1905. 
 
 The Chinese Government, being desirous of substituting for the terms of the 
 Protocol of 1901, having reference to the estabUshment of a River Board for the 
 Huangpu and the functions and revenues of such Board, a new method of pro- 
 cedure whereby the Chinese Government itself will undertake the work and defray 
 the M'hole of the expense thereof ; and the Powers signatory to the final Protocol 
 having assented to this proposition, the following conditions have been agreed 
 upon : — 
 
 Article I. — The Customs Taotai and the Commissioner of Customs at 
 Shanghai are entrusted with the general management of the work of improving 
 the course of the Huangpu and of ameliorating the condition of the bar, both 
 at this and the other side of Woosung, as well as of the maintenance of such 
 works. 
 
 With regard to the river and sanitary police, lighting and buoying, pilot 
 service, etc., the former regulations will continue to be in force. 
 
 Article II. — Three months after signature of the present agreement China 
 will herself select an engineer experienced in matters of river conservancy, and 
 if a majority of the representatives of the Powers signatory to the final Protocol 
 consider that the engineer thus chosen possesses the requisite qualifications, China 
 will immediately appoint him to undertake the work. 
 
 * Translation from the French text as printed in U. S. Treaty S-crics (No Number). 
 
 French text printed also in Customs, Vol. I, p. 342; Traitcs et Conventions, p. 200; 
 Hertslet, p. 199 ; other translation in Malloy, p. 2013, and U. S. Treaty Series. 
 
 In connection with this agreement see also the final protocol of September 7, 1901, 
 for the settlement of the disturbances of 1900 (No. 1901/3, ante), and the Huangpu regu- 
 lations attached thereto as Annex No. 17 ; also the Huangpu agreement of April 9, 1912 
 (with the supplementary article of 1915) (No. 1912/6, post).
 
 532 CHINA TREATIES AND AGREEMENTS 
 
 In case, after commencement of the works, it should be necessary, for rea- 
 sons considered vaHd by a majority of the Ministers interested, to take steps to 
 replace him, the selection and appointment of the new engineer would be effected 
 in the same manner as above mentioned. 
 
 Article III. — All contracts for undertaking the whole or part of the river 
 conservancy works, for purchase of material or of machinery, etc., shall be sub- 
 mitted to public tender and awarded to the party offering the most advantageous 
 terms. 
 
 Article IV. — Every three months a detailed report upon the work done and 
 a statement of expenses incurred will be drawn up and submitted for examina- 
 tion to the Consular Body at Shanghai. 
 
 Article V. — The sanction of the Taotai and of the Commissioner of Cus- 
 toms in Shanghai will be required for constructing wharves and jetties as well 
 as for the establishment of all pontoons or floating houses in the river. 
 
 Article VI. — The Taotai, and the Commissioner of Customs at Shanghai 
 will have the right to expropriate the existing permanent moorings and to estab- 
 lish a system of public moorings in the river. 
 
 Article VII. — The sanction of the Taotai and of the Commissioner of 
 Customs will be necessary for the prosecution of all dredging and other work. 
 
 Article VIII. — The Taotai and Commissioner of Customs will have the 
 right to acquire all land, situated outside the foreign concessions, necessary for 
 the execution of the work of improving and conserving the Huangpu, and to dis- 
 pose of the said land. If, in this connection, it should be considered necessary to 
 expropriate land, and if such land should be the property of foreigners, the price 
 therefor will be determined by a commission composed of : — 
 
 (1) A person selected by the Consular authority having jurisdiction over 
 the owner. 
 
 (2) A person selected by the Taotai and the Commissioner of Customs. 
 
 (3) A person selected by the Dean of the Consular Body. 
 
 Should the Dean of the Consular body be also the Consul of the proprietor, 
 the third member of the Commission would be chosen by the Consul next in 
 seniority to the Dean. 
 
 The Consul having jurisdiction over the party interested will give effect to the 
 decision of the commission. 
 
 In case of Chinese property, the Customs will proceed to estimate and settle 
 the price, and will carry out the decision under analogous conditions. 
 
 Riparian landowners, Chinese as well as foreigners, will have the right of 
 preference in the purchase or lease of all accretions of land in front of their 
 properties by the deposits effected in improving the river channel. The price 
 at which such lands may be acquired will be fixed by a commission constituted 
 similarly to that described in the preceding paragraph, or according to the case, 
 by the Custom authorities. 
 
 Article IX. — The Chinese Government takes upon itself the whole of the 
 expense of the river improvement, without levying any tax or contribution either 
 . upon riparian property or upon trade or navigation. 
 
 Article X. — China specifies, and gives as guarantee for the total expense
 
 NUMBER 1905/10: SEPTEMBER 27, 1905 
 
 533 
 
 of the river improvement works, the whole of the duties on opium of Szechuen 
 and of Soochoufu in Kiangsu. In conformity with the provisions of the Protocol 
 of 1901, she will devote annually to these works, and for twenty years, the sum 
 of 460,000 Haikuan taels. 
 
 If during the course of any year after commencement of the works, the pur- 
 chase of material or machines, etc., should necessitate exceptional expenditure, 
 China, in order to meet it, may raise a loan by means of bonds secured on the 
 revenue derived from the above-mentioned opium duties. 
 
 For the amortisation and the service of this loan as well as fbr expense's 
 of all kinds connected with the execution of the works or with the maintenance 
 of the works already completed, China will furnish annually a minimum of 
 460,000 Haikuan taels. 
 
 The provincial authorities concerned will remit this sum by equal monthly 
 payments into the hands of the Taotai and Commissioner of Customs at Shanghai. 
 
 Should the revenues indicated become insufficient, the Chinese Government 
 must provide the sum specified from other sources. 
 
 Article XI. — If the works should not be prosecuted with diligence, care, 
 and economy, the Consular Body, acting upon a majority of votes, may notify the 
 Taotai and the Commissioner of Customs of the fact and request them to in- 
 struct the engineer to take the necessary remedial measures : should the execu- 
 tion of the v/orks continue to be unsatisfactory, the Consular Body may, in the 
 same way, recommend the dismissal of the engineer as well as the selection and 
 appointment of another in the manner set forth in Article II. 
 
 In case the Taotai and the Commissioner of Customs at Shanghai should 
 not act upon these representations, the Consular Body may lay the matter before 
 the representatives of the Powers interested. 
 
 Article XII. — When the present articles have been discussed, agreed upon 
 and signed, the regulations contained in paragraph B of Article XI, and in 
 Annex 17 of the Protocol of 1901, shall be suspended, but, if China should 
 fail to furnish annually sufficient funds, in accordance with this new agreement, 
 in such manner that the execution of the works should be thereby impeded, or, 
 should she omit to conform to any other essential stipulation of the present 
 arrangement, the original provisions of the Protocol of 1901 and of Annex 17 
 thereto, will immediately come again into force. 
 
 Peking, September 27th, 1905. 
 
 A. VON MUMM 
 A. VON ROSTHORN 
 
 E. DE Gaiffier 
 Manuel de Carcer 
 w. w. rockhill 
 
 G. DUBAIL 
 
 Ernest Satow 
 C, Baroli 
 
 Y. UCHIDA 
 
 A. J. Citters 
 
 G. KOZAKOW 
 
 [l.s.] 
 
 
 [l.s.] 
 
 
 [l.s.] 
 
 
 [l.s.] 
 
 
 [l.s.] 
 
 [Signature of 
 
 [l.s.] 
 
 Prince Ch'ing.] 
 
 [l.s.] 
 
 
 [l.s.] 
 
 
 [l.s.] 
 
 
 [l.s.] 
 
 [Seal of the 
 
 [l.s.] 
 
 Wai-Wu-Pu.]
 
 534 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1905/11. 
 
 GREAT BRITAIN (British & Chinese Corporation, Limited, Pekin Syndicate, 
 
 Limited, Yangtze Valley Company, Limited, and Chinese Central Railways, 
 
 Limited) AND FRANCE (Banque de ITndo-Chine, etc.) 
 
 Agreement in regard to the construction of certain raihvays* — October 2, 1905. 
 
 'Memorandum of agreement made the 2nd day of October 1905 Between Carl 
 Meyer of 4 & 5 King William Street in the City of London on behalf of a body 
 of English capitalists consisting of the British and Chinese Corporation Limited, 
 the Pekin Syndicate Limited and the Yangtze Valley Company Limited (who 
 with their successors and assigns are hereinafter called " the British Group ") of 
 the first part Stanislas Simon of 15 bis Rue Laffitte Paris in the Republic of 
 France on behalf of a body of French capitalists consisting of the Banque 
 de ITndo-Chine, the Comptoir Nationale d'Escompte de Paris, the Societe 
 Generale, the Regie Generale de Chemins de Fer and Messieurs N. J. & S. 
 Bardac (who with their successors and assigns are hereinafter called "the 
 French Group ") of the second part and the Chinese Central Railways 
 Limited (hereinafter called "the Company") of the third part. Whereas 
 the Company was registered as a Company with limited liability under the 
 Imperial British Companies Acts 1862 to 1900 on the 7th January 1904. 
 And whereas the said Company was formed by two of the parties forming 
 the British Group for the purpose of acquiring and dealing with con- 
 cessions and other rights in connection with railways in China and elsewhere 
 and for other purposes mentioned in the Memorandum of Association of the 
 Company. And whereas there have been issued to the British Group 50,000 
 shares of il each on which the sum of 8s. per share has been called and paid up. 
 And whereas the Company is at present entitled to the benefit of two agreements 
 short particulars whereof are set forth in the schedule hereto and which refer to 
 Railways proposed to be constructed from Pukou to Tientsin and from Pukou 
 to Sinyang respectively. And whereas the Company has been for some time past 
 negotiating to obtain a concession and other rights in connection with a Railway 
 from the Hankow-Sinyang District to Chengtu in the province of Szechuen and 
 the French Group have been for some time past negotiating to obtain a concession 
 and other rights in connection with a Railway from the Hankow-Sinyang District 
 to Chengtu and they have thereby come into competition with each other. And 
 
 * Text as printed in F. E. Review, vol. 10, p. 305. 
 
 In connection with this agreement see the Anglo-German bankers' agreement of Sep- 
 tember 2, 1898 (attached to the Agreement between Germany and Great Britain defining 
 their mutual policy in China, October 16. 1900, No. 1900/5, ante) ; and the agreement among 
 the British & Chinese Corporation, Chinese Central Railways, Banque de I'lndo-Chine, 
 Deutsch-Chinesische Eisenbahn Gesellschaft, and " American Group," November 10, 1910 
 (No. 1910/5, post). 
 
 See also the Tientsin-Pukow Railway Loan Agreement of January 13. 1908 (No. 1908/1, 
 post), the Hukuang Railway Loan Agreement of May 20, 1911 (No. 1911/5, post), and 
 the Pukow-Sinyang Railway Loan Agreement of November 14, 1913 (No. 1913/12, post).
 
 NUMBER 1905/11 : OCTOBER 2, 1905 535 
 
 whereas for the purpose of putting an end to such competition the Company and 
 the French Group have agreed to associate themselves together in the manner and 
 on the terms hereinafter appearing. And whereas it is an essential term of the 
 agreement that the British Group and the French Group shall so far as regards 
 matters within the scope of the Company's objects do all in their power to oppose 
 and defeat all competition with the Company. Now these presents witness that it 
 is hereby agreed by and between the parties hereto as follows : 
 
 1. The capital of the Company shall be forthwith increased by the creation 
 of 1,000 Deferred Shares of £1 each which shall be entitled to receive between 
 them one-half the surplus profits of each year (which the Directors may deter- 
 mine to divide) after there shall have been paid by way of dividend or bonus to 
 the holders of the shares other than the Deferred Shares a sum equal to the 
 nominal amount of such shares and also to rank pari passu in any return of capital 
 in a winding-up or otherwise until the full amount paid up on all the shares of 
 the Company for the time being issued shall have been returned and thereafter to 
 receive one-half of any surplus assets and on the terms that each deferred share 
 shall upon a poll confer 100 votes in respect thereof upon the holder thereof. 
 
 2. Of the said deferred shares 550 numbered 1 to 550 inclusive shall be forth- 
 with allotted to the British Group and the remaining 450 numbered 551 to 1,000 
 inclusive shall be issued to the French Group. All the shares so allotted shall be 
 paid up in cash at once. 
 
 3. There shall also be allotted in the proportions below mentioned to the 
 French Group or to persons nominated by them whose pecuniary responsibility 
 shall be undoubted the remaining 50,000 shares of the original share capital and 
 there shall be forthwith called and paid up on each such share the sum of 8s. and 
 all calls thereafter made on the said shares shall be paid in due course. Of the 
 said 50,000 shares 7,500 shall be allotted to the Compagnie Internationale 
 d'Orient or their nominees (hereinafter called the Belgian Group) and 2,500 
 shares out of such 7,500 shall be transfered or the benefit thereof made over to 
 the Yangtze Valley Company Limited on such terms and conditions as the British 
 Group shall think fit. Of the 50,000 shares held by the British Group or their 
 nominees 5,000 have been already transferred to the Belgian Group and in the 
 event of certain American capitalists to be approved of by the British Group 
 (hereinafter referred to as "the American Group") agreeing within twelve 
 months from the date hereof as to which time shall be of the essence of the 
 contract to accept such participation but not a smaller orie in the Company the 
 British Group shall transfer or make over the benefit of a further 7,500 shares 
 out of their 50,000 shares to the American Group but only upon such terms 
 and conditions as the British Group shall think fit and in the event of the American 
 Group not agreeing within the time aforesaid to participate as aforesaid the 
 British Group shall transfer 2,500 out of the said 7,500 shares to the French 
 Group and shall retain the remaining 5,000 shares for themselves so that in the 
 event of the American Group not participating the said 100,000 shares will be 
 held as to 45,000 by the British Group or their nominees as to 45,000 by the 
 French Group or their nominees and as to 10,000 by the Belgian Group or their 
 nominees. None of the said 100.000 shares shall save as aforesaid be sold trans- 
 ferred mortgaged or otherwise dealt with without the consent of the British and
 
 536 CHINA TREATIES AND AGREEMENTS 
 
 PVench Groups for a period of five years from the date hereof and before the 
 transfer of the shares aforesaid to the Belgian and American Groups agreements 
 to the like eflfect to this Clause shall be entered into by them and by the Belgian 
 Group also relating to the shares already transferred to them as aforesaid. 
 
 4. The number of Directors of the Company shall be increased to 18 of 
 whom 9 shall be from time to time appointed by the holders of the 550 deferred 
 shares numbered 1 to 550 inclusive or of a majority of them and the remaining 
 9 shall be from time to time appointed by the holders of the remaining 450 
 deferred shares numbered 551 to 1000 inclusive or of a majority of them. 
 
 5. The 9 Directors from time to time appointed by the holders of the said 
 550 Deferred Shares shall be appointed a permanent committee of the Board 
 sitting in London and the 9 Directors from time to time appointed by the holders 
 of the said 450 Deferred Shares shall be appointed a permanent committee of the 
 board sitting in Paris, but all resolutions of the said Committees in London and 
 Paris shall be subject in all respects to the control of the Board of Directors 
 of the Company and to all resolutions of the Board affirming disaffirming or other- 
 wise dealing with the same directly or indirectly. 
 
 6. The Chairman of the Board and also any person temporarily appointed 
 to preside in his absence at a meeting of the Board or of the Company shall be a 
 natural-born or naturalized British subject and be from time to time elected by 
 the Directors appointed by the holders of the said 550 deferred shares out of the 
 directors appointed by the holders of such shares and such Chairman or other 
 person shall in addition to any votes he may already possess have a casting 
 vote at such meeting of the Board and of the Company. Meetings of the Board 
 shall be held in London or in Paris as may be determined by the Board. The 
 General Meetings of the Company shall be held in London. The Chairman of the 
 Paris Committee shall be appointed by the members of such Committee and the 
 Chairman of the London Committee shall be the Chairman of the Board of 
 Directors of the Company. 
 
 7. The French Group shall forthwith on the execution hereof vest in the 
 Company the benefit of all negotiations entered into by or on its behalf in regard 
 to the said concessions and rights in competition with the British Group and all 
 surveys made in connection therewith and shall give to the company all documents 
 and information in its possession relating thereto and the Company shall there- 
 upon repay to the French Group such a sum as in the opinion of the Board 
 of Directors of the Company shall represent the amount of the expenses incurred 
 by the French Group therein and properly attributable thereto. 
 
 8. The engineers and other European employes engaged upon the said rail- 
 way from Pukou to Chengtu and of each railway that may be formed or con- 
 trolled by the Company (other than the said railway from Pukou to Tientsin) 
 shall so far as possible be in equal proportions of British and French nationalities 
 and all orders for materials rolling stock and plant and all contracts for construc- 
 tion of the said railways (other than as aforesaid) shall be divided in equal 
 proportions between British and French manufacturers and contractors. 
 
 9. It shall also be an essential term of the contract that no change shall be 
 made in the character or political status of the Company or of any railways formed 
 or controlled by the Company. All concessions and other like rights and
 
 NUMBER 1905/11 : OCTOBER 2, 1905 537 
 
 privileges obtained by or for the Company shall be taken in the name of the 
 Company. 
 
 10. All companies that may be formed by or under the auspices of the 
 Company or in connection with any railways or other concerns in which it is 
 interested shall be Chinese Companies. If that should appear undesirable the 
 said Companies shall be of the same character as the Company and similar 
 provisions to those herein contained in relation to the political character and 
 status of the Company shall apply to each company so formed. 
 
 11. The British and French Groups shall respectively agree that so long 
 as they hold any shares in the Company respectively they will respectively use 
 their best endeavors to oppose and defeat any schemes competing with the 
 Company's main business. 
 
 12. The voting power of the British and French Groups and of their 
 nominees in respect of the shares of the Company for the time being held by 
 them or on their behalf shall be used against and shall not be used in favor of any 
 resolutions which may tend to contravene the provisions of this present contract 
 and the Directors of the Company shall be authorised to disregard all votes given 
 in contravention of this clause. 
 
 13. No share shall be transferred out of the names of the British French 
 Belgian or American Group or their nominees to any companies or persons except 
 upon the terms that such companies or persons shall bind themselves by the terms 
 of this agreement and the Board shall refuse to register all transfers made in 
 contravention of this agreement. 
 
 14. The Articles of Association of the Company shall be altered in such 
 manner as to give effect to the provisions of this agreement. 
 
 In witness whereof the said parties to these presents have hereunto set their 
 hands the day and year first above written. 
 
 THE SCHEDULE ABOVE REFERRED TO. 
 
 6th January, 1899. — Preliminary Agreement of this date made between His 
 Excellency, Sheng Director-General of the Imperial Chinese Railway Adminis- 
 tration, acting under the authority of the Tsung-li Yamen of the one part, and 
 the British firm of Jardine Matheson & Co., for themselves and on behalf of 
 the Hongkong and Shanghai Banking Corporation, of the other part, jointly 
 representing a British Syndicate adopting the terms of the Preliminary Agreement 
 signed by the above mentioned contracting parties on the 13th day of May, 1898,t 
 for the financing constructing and working of a railway from Shanghai to Nan- 
 king as a Preliminary Agreement for the construction and working of a railway 
 from Pukou to Sinyang in the provinces of Kiangsu Nganhui and Honan. 
 
 18th May, 1899. — An Agreement of this date % made between their Excellen- 
 cies Hsu and Chang duly authorized to act on behalf of the Imperial Government 
 
 t Printed as an annex to the Shanghai-Nanking Railway Loan agreement of July 9, 
 1903 (No. 1903/2, ante). 
 
 t Printed as an annex to the Tientsin-Pukow Railway Loan agreement of January 13, 
 1908 (No. 1908/1, post).
 
 538 CHINA TREATIES AND AGREEMENTS 
 
 of China of the one part and (a) The Deutsch-Asiatische Bank (b) the Hong- 
 kong and Shanghai Banking Corporation for themselves and on behalf of 
 Messieurs Jardine Matheson & Co. as joint Agents for the British and Chinese 
 Corporation Limited thereinafter called '* the Syndicate " for the provision 
 jointly by the Deutsch-Asiatische Bank and the British and Chinese Corporation 
 of a loan and for the construction and working of a railway from Tientsin to 
 the Yangtze Kiang. 
 
 (Signed) Carl Meyer. 
 
 Witness to the signature of Carl Meyer on behalf of the British Group 
 Walter S. Henderson, 
 
 Sol''., 31 Lombard Street, London. 
 
 (Signed) S. Simon. 
 
 Witness to the signature of Stanislas Simon on behalf of the French 
 Group 
 
 (Signed) Tho. Gilbert, 
 
 Secretary, Chinese Central Railways. 
 Witness to the signature of Thomas Gilbert for and on behalf of the Chinese 
 Central Railways Limited, 
 Walter S. Henderson, 
 
 SoV., 31 Lombard Street, London. 
 
 NUMBER 1905/12. 
 
 FRANCE AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 
 China.*— October 3, 1905. 
 
 American Legation, 
 Peking, China, October 3, 1905. 
 Mr. Minister and dear Colleague : The Government of the United States 
 being desirous of reaching an understanding with the Government of the French 
 Republic for the reciprocal protection against infringement in China by citizens 
 of our respective nations of trade marks duly registered in the United States and 
 France, I am authorized, by the Secretary of State of the United States, to inform 
 you that effectual provision exists in American Consular Courts in China for the 
 trial and punishment of all persons subject to the jurisdiction of the United States 
 who may be charged with and found guilty of infringing in any way trade marks 
 
 * Texts (and translation) as printed in U. S. Treaty Series (No Number). Printed 
 also in Malloy, p. 545. 
 
 See also the Exchange of notes in regard to the reciprocal protection of French and 
 American copyrights in China, December 27, 1911 (No. 1911/14, post).
 
 NU^IBER 1905/12: OCTOBER 3, 1905 539 
 
 of persons subject to the jurisdiction of France which have been duly registered 
 in the United States. 
 
 I beg that you will kindly inform me whether American citizens are entitled 
 to the same legal remedies in the Consular Courts of France in China as regards 
 the protection from infringement of their trade marks duly registered in 
 France. 
 
 I have the honor to be, My dear Colleague, Your obedient servant, 
 
 W. W. ROCKHILL. 
 
 His Excellency Monsieur Dubail, 
 
 etc., etc., etc. 
 
 [Translation.] 
 
 Legation of the French Republic in China, 
 
 Peking, October 3, 1905. 
 
 Mr. Minister and dear Colleague: By your despatch of this day Your 
 Excellency has been pleased to inform me that the Government of the United 
 States of America being desirous of reaching an understanding with the Govern- 
 ment of the Republic for the reciprocal protection of trade marks, you have been 
 authorized to state to me that the American Consular Courts in China are com- 
 petent in all matters relating to the counterfeiting of trade marks by persons 
 under the jurisdiction of the United States. 
 
 Any complaint made by a person under French jurisdiction to an American 
 Consular Court for the purpose of securing against persons under American juris- 
 diction protection for a trade mark duly registered in the United States of 
 America will be heard by said courts in first instance and on appeal by the 
 competent courts. 
 
 I have the honor to confirm to Your Excellency this declaration which 
 responds to the request I had made you. 
 
 So as to perfect the understanding thus arrived at by both countries I am 
 authorized to state on my side to Your Excellency that the Government of the 
 Republic will willingly insure in China protection for duly registered American 
 trade marks which may be counterfeited by persons under French jurisdiction. 
 
 To that end French Consular Courts in China, for complaints in first instance, 
 and the Court of Saigon, for appeals, will be competent to hear all such cases 
 presented by persons under American jurisdiction. 
 
 Please accept, Mr. Minister and dear Colleague, the assurance of my highest 
 consideration. 
 
 G. Dubail. 
 
 Peking, January 22, 1906. 
 Mr. Minister and dear Colleague : In connection with the notes which I 
 had the honor to exchange with Your Excellency on October 3, 1905, looking to 
 the reciprocal protection from infringement by our respective nationals in China
 
 540 CHINA TREATIES AND AGREEMENTS 
 
 of trade marks belonging to them I duly transmitted copies of the same to my 
 Government. 
 
 In reply the Secretary of State has called to my attention, as possibly mis- 
 leading, the use made in my note to you of the word " punishment " by our Con- 
 sular Courts in China of American citizens who may have infringed in China trade 
 marks the property of persons under the jurisdiction of France. 
 
 In view of the fact that there is no statute in the United States making the 
 infringement, conterfeiting, etc. of a trade mark a criminal offense, and that 
 effectual provision exists by a civil action for damages by the owner of a trade 
 mark, my Government is of the opinion that the word " punishment " should be 
 understood to refer to a civil action only, and not to a criminal procedure, as might 
 be inferred from the use of the word in question without the present explanation 
 added thereto. 
 
 I beg leave to call Your Excellency's attention to the above provision of our 
 law, so that nothing in my note of October 3, last, may be construed as conflicting 
 therewith. 
 
 I avail myself of this opportunity to renew to Your Excellency the assurances 
 of my highest consideration. 
 
 W. W. ROCKHILL. 
 
 To His Excellency M. Dubail, 
 
 etc., etc., etc. 
 
 NUMBER 1905/13. 
 
 THE NETHERLANDS AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 
 China.""— October 23, 1905. 
 
 [American Legation, Peking,^ October 23, 1905. 
 Mr. Minister and dear Colleague : The Government of the United States 
 being desirous of reaching an understanding with the Government of the Nether- 
 lands for the reciprocal protection against infringement in China by citizens of 
 our respective nations of trade marks duly registered in the United States and 
 the Netherlands, I am authorized by the Secretary of State of the United States 
 to inform you that effectual provision exists in American Consular Courts in 
 China for the trial and punishment of all persons subject to the jurisdiction of 
 the United States who may be charged with and found guilty of infringing in 
 any way trade marks of persons subject to the jurisdiction of the Netherlands 
 which have been duly registered in the United States. 
 
 * Text (and translation) as printed in U. S. Treaty Series (No Number). Printed 
 also in Malloy, p. 273.
 
 NUMBER 1905/13: OCTOBER 23, 1905 541 
 
 I beg that you will kindly inform me whether American citizens are entitled 
 to the same legal remedies in the Consular Courts of the Netherlands in China 
 as regards the protection from infringement of their trade marks duly registered 
 in the Netherlands. 
 
 I have the honor to be, My dear Colleague, Your obedient servant, 
 
 W. W. ROCKHILL. 
 
 His Excellency, Monsieur van Citters, 
 
 etc., etc., etc. 
 
 [Translation.] 
 
 Royal Legation of the Netherlands, 
 
 Peking, China, October 23, 1905. 
 
 Mr. Minister and dear Colleague: Under date of the 23d of October, 
 1905, Your Excellency was pleased to inform me by your note numbered 173 
 that the Government of the United States of America was desirous of reaching an 
 agreement with the Government of the Netherlands concerning the reciprocal pro- 
 tection of trade marks in China. You added that you had been authorized to 
 declare that the American Consular Courts in China had jurisdiction in all matters 
 concerning the infringement of trade marks by persons under the jurisdiction of 
 the United States, and that consequently complaints made by any person subject 
 to the jurisdiction of the Consular Courts of the Netherlands, in China, to an 
 American Consular Court, for the purpose of securing from persons subject to 
 the jurisdiction of the United States protection for trade marks duly registered in 
 the United States of America, would be tried before said courts in First Instance 
 and on appeal by the competent Courts. 
 
 In reply to this communication I have the honor to inform Your Excellency 
 that my Government accepts with pleasure the above agreement and has directed 
 me to do so by the present note. 
 
 The Minister of Foreign Affairs at The Hague has furthermore authorized 
 me to state on my part that the laws of the Netherlands protect duly registered 
 trade marks regardless of the nationality of the owner, and that, not only when 
 infringements have been committed in the country itself, but when they have been 
 committed in a country subject to exterritoriality, as in China. 
 
 Consequently the Consular Courts of the Netherlands in China will take 
 cognisance in First Instance, and the Courts of Justice in Amsterdam and Batavia 
 on Appeal, of any complaints made to them on this subject by persons subject to 
 the jurisdiction of the United States. 
 
 I avail myself of this opportunity to add that for the object of putting the 
 above agreement into effect I have written to the Consular Officials of the 
 Netherlands in China, giving them the necessary instructions, and I would be 
 pleased if you would inform me what action you have taken to this end. 
 
 I avail myself of this opportunity to renew to Your Excellency the assurances 
 of my high consideration. 
 
 A. J. Citters. 
 
 His Excellency, W. W. Rockhill, 
 
 etc., etc., etc.
 
 542 CHINA TREATIES AND AGREEMENTS 
 
 Peking, January 22, 1906. 
 
 Mr. Minister and dear Colleague: In connection with the notes which 
 I had the honor to exchange with Your Excellency on October 23, 1905, looking 
 to the reciprocal protection from infringement by our respective nationals in 
 China of trade marks belonging to them I duly transmitted copies of the same to 
 my Government. 
 
 In reply the Secretary of State has called to my attention, as possibly mislead- 
 ing, the use made in my note to you of the word " punishment " by our Consular 
 Courts in China of American citizens who may have infringed in China trade 
 marks the property of persons under the jurisdiction of The Netherlands. 
 
 In view of the fact that there is no statute in the United States making the 
 infringement, counterfeiting, etc. of a trade mark a criminal offense, and that 
 effectual provision exists by a civil action for damages by the owner of a trade 
 mark, my Government is of the opinion that the word " punishment '* should be 
 understood to refer to a civil action only, and not to a criminal procedure, as 
 might be inferred from the use of the word in question without the present ex- 
 planation added thereto. 
 
 I beg leave to call Your Excellency's attention to the above provision of our 
 law, so that nothing in my note of October 23rd, last, may be construed as con- 
 flicting therewith. 
 
 I avail myself of this opportunity to renew to Your Excellency the assurances 
 of my highest consideration. 
 
 W ,W. ROCKHILL, 
 
 To His Excellency A. J. van Citters, 
 
 etc., etc., etc. 
 
 NUMBER 1905/14. 
 
 BELGIUM AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 China.''— November 27, 1905. 
 
 [American Legation, Peking,] November 27, 1905. 
 Mr. Charge d'affaires and dear Colleague: The Government of the 
 United States being desirous of reaching an understanding with the Government 
 of Belgium for the reciprocal protection against infringement in China by citizens 
 of our respective nations of trade marks duly registered in the United States and 
 Belgium, I am authorized by the Secretary of State of the United States to inform 
 you that effectual provision exists in American Consular Courts in China for the 
 trial and punishment of all persons subject to the jurisdiction of the United States 
 
 ♦Texts (and translation) as printed in U. S. Treaty Series (No Number). Printed 
 also in Malloy, p. 111.
 
 NUMBER 1905/14: NOVEMBER 27, 1905 543 
 
 who may be charged with and found guilty of infringing in any way trade marks 
 of persons subject to the jurisdiction of Belgium which have been duly registered 
 in the United States. 
 
 I beg that you will kindly inform me whether American citizens are entitled 
 to the same legal remedies in the Consular Courts of Belgium in China as regards 
 the protection from infringement of their trade marks duly registered in Belgium. 
 
 I have the honor to be, my dear Colleague, Your obedient servant, 
 
 W. W. ROCKHILL. 
 
 Mr. DE Prelle de la Nieppe, 
 etc., etc., etc. 
 
 [Translation.] 
 
 November 27, 1905. 
 
 Mr. Minister: I have had the honor of receiving Your Excellency's note 
 of this date regarding the mutual protection of Belgian and American trade marks 
 in China. 
 
 It is stated in this communication that the Government of the United States 
 of America has given such instructions to the American Consular Courts as are 
 sufficient to insure the legal protection of trade marks the property of Belgian 
 subjects which have been duly registered in the United States. 
 
 While acknowledging to Your Excellency the receipt of this communication 
 I have the honor to inform you that the Royal Government in like manner 
 guarantees in the Chinese Empire the protection of American trade marks duly 
 registered in Belgium, if counterfeited by Belgian subjects. 
 
 The Royal Legation and the Consulates, Vice-Consulates and Consular 
 Agencies in China are competent to take cognizance of actions brought before 
 them in the matter. 
 
 I have informed our Consular representatives in China of the agreement 
 arrived at between Belgium and the United States of America which is set forth 
 by this interchange of correspondence between us. 
 
 I avail myself of this occasion to present to Your Excellency the assurance 
 of my high esteem. 
 
 Edm. de Prelle. 
 
 His Excellency W. W. Rockhill, 
 etc., etc., etc. 
 
 Peking, January 22, 1906. 
 
 Mr. Minister and dear Colleague : In connection with the notes which I 
 had the honor to exchange with Your Excellency on November 27, 1905, looking 
 to the reciprocal protection from infringement by our respective nationals in 
 China of trade marks belonging to them I duly transmitted copies of the same 
 to my Government. 
 
 In reply the Secretary of State has called to my attention, as possibly mislead-
 
 544 CHINA TREATIES AND AGREEMENTS 
 
 ing, the use made in my note to you of the word " punishment " by our Consular 
 Courts in China of American citizens who may have infringed in China trade 
 marks the property of persons under the jurisdiction of Belgium. 
 
 In view of the fact that there is no statute in the United States making the 
 infringement, counterfeiting, etc. of a trade mark a criminal ofifense, and that 
 effectual provision exists by a civil action for damages by the owner of a trade 
 mark, my Government is of the opinion that the word " punishment " should be 
 understood to refer to a civil action only, and not to a criminal procedure, as might 
 be inferred from the use of the word in question without the present explanation 
 added thereto. 
 
 I beg leave to call Your Excellency's attention to the above provision of our 
 law, so that nothing in my note of November 27, last, may be construed as con- 
 flicting therewith. 
 
 I avail myself of this opportunity to renew to Your Excellency the assur- 
 ances of my highest consideration. 
 
 W. W. ROCKHILL. 
 
 To His Excellency 
 
 Edmond de Prelle de la Nieppe, 
 etc., etc., etc. 
 
 • NUMBER 1905/15. 
 
 GERMANY AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 China.* — December 6, 1905. 
 
 [American Legation, Peking,'] December 6, 1905. 
 
 Mr. Minister and dear Colleague : The Government of the United States 
 being desirous of reaching an understanding with the Government of Germany 
 for the reciprocal protection against infringement in China by citizens and sub- 
 jects of our respective nations of trade marks duly registered in the United States 
 and Germany, I am authorized by the Secretary of State of the United States to 
 inform you that effectual provision exists in American Consular Courts in China 
 for the trial and punishment of all persons subject to the jurisdiction of the 
 United States who may be charged with and found guilty of infringing in any way 
 trade marks of persons subject to the jurisdiction of Germany which have been 
 duly registered in the United States. 
 
 I beg that you will kindly inform me whether American citizens are entitled 
 
 * Texts (and translation) as printed in U . S. Treaty Series (No Number). Printed 
 also in Malloy, p. 560.
 
 NUMBER 1905/15 : DECEMBER 6, 1905 545 
 
 to the same legal remedies in the Consular Courts of Germany in China as regards 
 the protection from infringement of their trade marks duly registered in Germany. 
 I have the honor to be, Mr. Minister and dear Colleague, Your obedient 
 servant, 
 
 W. W. ROCKHILL. 
 
 His Excellency, Baron von Mumm, 
 etc., etc., etc. 
 
 [Translation.] 
 
 Imperial German Legation, 
 Peking, December 6, 1905. 
 
 Mr. Minister : I have the honor to acknowledge the receipt of your letter 
 of this date informing me that you have been authorized by your Government to 
 effect with me, by an exchange of notes, an agreement for the reciprocal protection 
 against infringement in China by citizens and subjects of our respective nations 
 of trade marks duly registered in Germany and the United States. 
 
 You furthermore inform me that effectual provision exists in American 
 Consular Courts in China for the trial and punishment of all persons subject to 
 the jurisdiction of the United States who may be charged with and found guilty 
 of infringing in any way trade marks of persons subject to the jurisdiction of 
 Germany which have been duly registered in the United States. 
 
 I have the honor to inform you in reply that I have been authorized by the 
 Chancellor of the German Empire to enter into this reciprocal agreement, and 
 to state that German Consular Courts in China are empowered under the German 
 law for the protection of trade marks of May 12th, 1894, to prosecute and punish 
 all persons subject to their jurisdiction for infringement of trade marks the 
 property of persons coming under the jurisdiction of the United States when duly 
 registered in Germany. 
 
 Furthermore, for the purpose of putting this arrangernent into effect, I am 
 authorized and ready to instruct the German Consular representatives in China 
 in accordance therewith, subject to your taking similar action. 
 
 I avail myself of this opportunity to renew the assurances of my highest 
 consideration. 
 
 A. V. Mumm. 
 
 Hon. \V. W. Rockhill, 
 
 etc., etc., etc. 
 
 Peking, January 22, 1906. 
 Mr. Minister and dear Colleague: In connection with the notes which I 
 had the honor to exchange with Your Excellency on December 6, 1905, looking to 
 the reciprocal protection from infringement by our respective nationals in China 
 of trade marks belonging to them I duly transmitted copies of the same to my 
 Government.
 
 546 CHINA TREATIES AND AGREEMENTS 
 
 In reply the Secretary of State has called to my attention, as possibly mis- 
 leading, the use made in my note to you of the word *' punishment " by our Con- 
 sular Courts in China of American citizens who may have infringed in China trade 
 marks the property of persons under the jurisdiction of Germany. 
 
 In view of the fact that there is no statute in the United States making the 
 infringement, counterfeiting, etc. of a trade mark a criminal offense, and that 
 effectual provision exists by a civil action for damages by the owner of a trade 
 mark, my Government is of the opinion that the word " punishment " should be 
 understood to refer to a civil action only, and not to a criminal procedure, as might 
 be inferred from the use of the word in question without the present explanation 
 added thereto. 
 
 I beg leave to call Your Excellency's attention to the above provision of our 
 law, so that nothing in my note of December 6th, last, may be construed as 
 conflicting therewith. 
 
 I avail myself of this opportunity to renew to Your Excellency the assurances 
 of my highest consideration. 
 
 W. W. ROCKHILL. 
 
 To His Excellency Baron von Mumm, 
 etc., etc., etc. 
 
 NUMBER 1905/16. 
 
 DENMARK AND GREAT BRITAIN. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 China.* — December 11, 1905. 
 
 Note of Count Raben-Levetzau to Mr. Johnstone. 
 
 Ministry for Foreign Affairs, Copenhagen, November 11, 1905. 
 
 M. LE MiNISTRE, 
 
 In asking me, in your note of August 23 last, whether the Danish tribunals 
 in China are authorized to punish Danish subjects who may have infringed 
 British trademarks (i.e., marques de fabrique ct de commerce Britanniques) in 
 China, you informed me that your Government, so soon as it may have received 
 an affirmative reply to this question, will take the measures necessary to permit 
 of the prosecution, before the British Consular Courts, of British subjects vio- 
 lating Danish trademarks (i.e., marques de fabrique et de commerce Danoises). 
 
 In consideration of the foregoing, I have the honor to inform you that the 
 Danish laws relating to the protection of trademarks (i.e., marques de fabrique et 
 de commerce) are generally applicable to Danish subjects in China, and that 
 instructions have just been sent to the Consul of Denmark at Shanghai, the 
 
 * Translation from the French text as printed in Hcrtslct, p. 614.
 
 NUMBER 1905/17: DECEMBER 18, 1905 547 
 
 Danish Consular Judge for all China, authorizing him to protect British trade- 
 marks, duly registered in Denmark, against infringements by Danish subjects 
 in China, to the same extent as Danish marks of the same character. 
 
 Begging you to report the foregoing to your Government, I allow myself to 
 express the hope of receiving soon a note informing me of the dispatch to the 
 British Minister at Peking of the instructions necessary to assure reciprocity, and 
 making possible the punishment, by the British tribunals in China, of British 
 subjects violating Danish trademarks. 
 
 I avail, etc. 
 
 (Signed) Raben-Levetzau. 
 
 Note of Mr. Chilton to Count Raben-Levetzau. 
 
 Copenhagen, December 11, 1905. 
 M. LE Ministre, 
 
 With reference to your Excellency's note to Sir A. Johnstone of the 11th 
 ultimo, respecting the protection of British trademarks, duly registered in Den- 
 mark, against infraction by Danish subjects in China, I have the honor to inform 
 your Excellency that His Majesty's Minister at Peking has been requested to 
 issue the necessary instructions to His Majesty's Consular Officers in China in 
 order that similar protection may be extended to Danish trademarks should they 
 be infringed by British subjects. 
 
 I avail, etc. 
 
 (Signed) H. G. Chilton. 
 
 NUMBER 1905/17. 
 
 ITALY AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 China * — December 18, 1905. 
 
 {American Legation, Peking,] December 18, 1905. 
 Mr. Minister and dear Colleague : The Government of the United States 
 being desirous of reaching an understanding with the Government of Italy for 
 the reciprocal protection against infringement in China by citizens and subjects 
 of our respective nations of trade marks duly registered in the United States 
 and Italy, I am authorized by the Secretary of State of the United States to 
 inform you that effectual provision exists in American Consular Courts in China 
 for the trial and punishment of all persons subject to the jurisdiction of the 
 
 * Texts (and translation) as printed in U. S. Treaty Series (No Number). Printed 
 also in Malloy, p. 991.
 
 548 CHINA TREATIES AND AGREEMENTS 
 
 United States who may be charged with and found guilty of infringing in any 
 way trade marks of persons subject to the jurisdiction of Italy which have been 
 duly registered in the United States. 
 
 I beg that you will kindly inform me whether American citizens are 
 entitled to the same legal remedies in the Consular Courts of Italy in China as 
 regards the protection from infringement of their trade marks duly registered in 
 Italy. 
 
 I have the honor to be, Mr. Minister and dear Colleague, Your obedient 
 servant, 
 
 W. W. ROCKHILL. 
 
 His Excellency, Monsieur Carlo Baroli, 
 etc., etc., etc. 
 
 [Translation.] 
 
 Peking, December 18, 1905. 
 
 Mr. Minister: I have the honor to acknowledge the receipt of your 
 note of to-day's date by which you inform me that you have been authorized 
 by your Government to conclude an arrangement with the Italian Legation by 
 means of an exchange of notes, for the reciprocal protection in China of American 
 and Italian trade marks, and that hereafter infringements of trade marks the 
 property of Italian subjects and duly registered in the United States by persons 
 subject to the jurisdiction of American Consular Courts in China will be tried by 
 the latter according to law. 
 
 Having been duly authorized thereto by the Royal Government, I am pleased 
 to inform you that hereafter infringements of trade marks of American citizens, 
 duly registered in Italy, by persons subject to the jurisdiction of the Italian 
 Consular Courts in China will in first instance be tried according to the law by 
 said Courts and on appeal by the Royal Court of Appeals of Ancona. 
 
 Please accept, etc., etc. 
 
 C. Baroli. 
 
 Peking, January 22, 1906. 
 
 Mr. Minister and dear Colleague : In connection with the notes which I 
 had the honor to exchange with Your Excellency on December 18, 1905, looking 
 to the reciprocal protection from infringement by our respective nationals in 
 China of trade marks belonging to them I duly transmitted copies of the same 
 to my Government. 
 
 In reply the Secretary of State has called to my attention, as possibly 
 misleading, the use made in my note to you of the word " punishment " by our 
 Consular Courts in China of American citizens who may have infringed in China 
 trade marks the property of persons under the jurisdiction of Italy. 
 
 In view of the fact that there is no statute in the United States making 
 the infringement, counterfeiting, etc. of a trade mark a criminal offense, and that 
 effectual provision exists by a civil action for damages by the owner of a trade
 
 NUMBER 1905/18 : DECEMBER 22, 1905 549 
 
 mark, my Government is of the opinion that the word " punishment " should be 
 understood to refer to a civil action only, and not to a criminal procedure, as 
 might be inferred from the use of the word in question without the present explan- 
 ation added thereto. 
 
 I beg leave to call Your Excellency's attention to the above provision of our 
 law, so that nothing in my note of December 18, last, may be construed as 
 conflicting therewith. 
 
 I avail myself of this opportunity to renew to Your Excellency the assurances 
 of my highest consideration. 
 
 To His Excellency Carlo Baroli, 
 
 etc., etc., etc. 
 
 W. W. ROCKHILL. 
 
 NUMBER 1905/18. 
 
 JAPAN AND CHINA. 
 Treaty and additional agreement relating to Manchuria."^ — December 22, 1905*, 
 
 His Majesty the Emperor of Japan and His Majesty the Emperor of China, 
 desiring to adjust certain matters of common concern growing out of the Treaty 
 of Peace between Japan and Russia of September 5th, 1905, have resolved to 
 conclude a Treaty with that object in view and have for that purpose named 
 Their Plenipotentiaries, that is to say : 
 
 His Majesty the Emperor of Japan: 
 
 Baron Komura Jutaro, Jusammi, Grand Cordon of the Imperial Order of the 
 Rising Sun, Minister for Foreign Affairs and Special Ambassador of His 
 Majesty, and 
 
 Uchida Yasuya, Jushii, Second Class of the Imperial Order of the Rising 
 Sun, His Majesty's Envoy Extraordinary and Minister Plenipotentiary; and 
 
 His Majesty the Emperor of China: 
 
 Prince Ching, Presiding Minister for Foreign Affairs, Councillor of State 
 and Plenipotentiary of His Majesty, 
 
 Chu Hung-chi, Minister for Foreign Affairs, Councillor of State and 
 Plenipotentiary of His Majesty, and 
 
 Yuan Shih-kai, Viceroy of the Province of Chihli, Junior Guardian of the 
 
 * Japanese official translation. Printed also in Hertslct, p. 391 ; Customs, Vol. II, p. 636; 
 Recueil, p. 754; For. Rel. 1906, p. 995. 
 
 In connection with this Treaty and additional agreement, see also the Russo-Japanese 
 treaty of peace, signed at Portsmouth, September 5, 1905 (No. 1905/8. ante) ; also the Russo- 
 Japanese conventions of July 30, 1907 (No. 1907/11, post), July 4, 1910 (No. 1910/1, post), 
 and July 3, 1916 (No. 1916/9, post) see also the Sino-Japanese treaty and Exchanges of 
 notes respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 1915/8, 
 post). See also Note 1 to this document, post, p. 554.
 
 550 CHINA TREATIES AND AGREEMENTS 
 
 Heir-Apparent, Minister Superintendent of Trade for the Northern Ports and 
 Plenipotentiary of His Majesty; 
 
 Who, after having exchanged their full powers which were found to be in 
 good and due form, have agreed upon and concluded the following Articles : 
 
 Article I. — The Imperial Chinese Government consent to all the transfers 
 and assignments made by Russia to Japan by Articles V and VI of the Treaty 
 of Peace above mentioned. 
 
 Article II. — The Imperial Japanese Government engage that in regard 
 to the leased territory as well as in the matter of railway construction and ex- 
 ploitation, they will, so far as circumstances permit, conform to the original 
 agreements concluded between China and Russia. In case any question arises 
 in the future on these subjects, the Japanese Government will decide it in con- 
 sultation with the Chinese Government. 
 
 Article III. — The present Treaty shall come into full force from the date 
 of signature. It shall be ratified by Their Majesties the Emperor of Japan and 
 the Emperor of China and the ratifications shall be exchanged at Peking as soon 
 as possible, and not later than two months from the present date.f 
 
 In witness whereof, the respective Plenipotentiaries have signed this Treaty 
 in duplicate in the Japanese and Chinese languages and have thereto affixed 
 their seals. 
 
 Done at Peking, this twenty-second day of the twelfth month of the thirty- 
 eighth year of Meiji, corresponding to the twenty-sixth day of the eleventh moon 
 of the thirty-first year of Kuang Hsii. 
 
 (Signed) Baron Komura Jutaro, [l. s.] 
 
 Jusammi, Grand Cordon of the Imperial Order of 
 the Rising Sun, Minister for Foreign Affairs and 
 Special Ambassador of His Majesty the Emperor of 
 Japan. 
 (Signed) Uchida Yasuya, [l. s.] 
 
 Jiishii, Second Class of the Imperial Order of the Rising 
 Sun, Envoy Extraordinary and Minister Plenipo- 
 tentiary of His Majesty the Emperor of Japan. 
 (Signed) Prince Ching, [l. s.] 
 
 Presiding Minister for Foreign Affairs, Councillor of 
 State and Plenipotentiary of His Majesty the 
 Emperor of China. 
 (Signed) Chu Hung-chi, [l. s.] 
 
 Minister for Foreign Affairs, Councillor of State and 
 Plenipotentiary of His Majesty the Emperor of 
 China. 
 (Signed) Yuan Shih-kai, [l. s.] 
 
 Viceroy of the Province of Chihli, Junior Guardian 
 of the Heir-Apparent, Minister Superintendent of 
 Trade for the Northern Ports and Plenipotentiary 
 of His Majesty the Emperor of China. 
 
 t Ratifications were exchanged at Peking, January 23, 1906.
 
 NUMBER 1905/18: DECEMBER 22, 1905 551 
 
 ADDITIONAL AGREEMENT. 
 
 The Governments of Japan and China, with a view to regulate, for their 
 guidance, certain questions in which they are both interested in Manchuria, in 
 addition to those provided for in the Treaty signed this day, have agreed as 
 follows : 
 
 Article I. — The Imperial Chinese Government agree that as soon as pos- 
 sible after the evacuation of Manchuria by the Japanese and Russian forces, the 
 following cities and towns in Manchuria will be opened by China herself as 
 places of international residence and trade : 
 In the Province of Shengking : 
 
 Fenghwangcheng ; Liaoyang; Hsinmintun; Tiehling; Tungkiangtzu 
 and Fakumen. 
 In the Province of Kirin : 
 
 Changchun (Kuanchengtzu) ; Kirin; Harbin; Ninguta; Hunchun 
 and Sanhsing. 
 In the Province of Heilungkiang : 
 
 Tsitsihar ; Hailar ; Aihun and Manchuli4 
 Article II. — In view of the earnest desire expressed by the Imperial 
 Chinese Government to have the Japanese and Russian troops and railway 
 guards in Manchuria withdrawn as soon as possible, and in order to meet this 
 desire, the Imperial Japanese Government, in the event of Russia agreeing to 
 the withdrawal of her railway guards, or in case other proper measures are 
 agreed to between China and Russia, consent to take similar steps accordingly. 
 When tranquillity shall have been reestablished in Manchuria and China shall 
 have become herself capable of afifording full protection to the lives and property 
 of foreigners, Japan will withdraw her railway guards simultaneously with 
 Russia. 
 
 Article III. — The Imperial Japanese Government, immediately upon the 
 withdrawal of their troops from any regions in Manchuria, shall notify the 
 Imperial Chinese Government of the regions thus evacuated, and even within 
 the period stipulated for the withdrawal of troops in the Additional Articles of 
 the Treaty of Peace between Japan and Russia, the Chinese Government may 
 send necessary troops to the evacuated regions of which they have been already 
 notified as above mentioned, for the purpose of maintaining order and tranquillity 
 in those regions. If, in the regions from which Japanese troops have not yet 
 been withdrawn, any villages are disturbed or damaged by native bandits, the 
 Chinese local authorities may also dispatch a suitable military force for the 
 purpose of capturing or dispersing those bandits. Such troops, however, shall 
 not proceed within twenty Chinese li from the boundary of the territory where 
 Japanese troops are stationed. 
 
 Article IV. — The Imperial Government of Japan engage that Chinese 
 
 t On September 10, 1906, Tiehling, Tungkiangtzu and Fakumen were declared open by 
 China. On October 8, 1906, Hsinmintun was opened : on January 14, 1907, Changchun, 
 Kirin, Harbin and Tsitsihar. On June 28, 1907, Fenghwangcheng, Liaoyang, Ninguta, Hun- 
 chun, Sanhsing, Hailar, and Aihun were opened. 
 
 See the Experimental Regulations for the collection of duty on goods shipped to the 
 new ports in Manchuria, November 19, 1907 (No. 1907/19, post).
 
 552 CHINA TREATIES AND AGREEMENTS 
 
 public and private property in Manchuria, which they have occupied or ex- 
 propriated on account of mihtary necessity, shall be restored at the time the 
 Japanese troops are withdrawn from Manchuria and that such property as is no 
 longer required for military purposes shall be restored even before such with- 
 drawal.§ 
 
 Article V. — The Imperial Chinese Government engage to take all necessary 
 measures to protect fully and completely the grounds in Manchuria in which 
 the tombs and monuments of the Japanese officers and soldiers who were killed 
 in war are located. 
 
 Article VI. — The Imperial Chinese Government agree that Japan has the 
 right to maintain and work the military railway line constructed between Antung 
 and Mukden and to improve the said line so as to make it fit for the conveyance 
 of commercial and industrial goods of all nations. || The term for which such 
 right is conceded is fifteen years from the date of the completion of the improve- 
 ments above provided for. The work of such improvements is to be completed 
 within two years, exclusive of a period of twelve months during which it will 
 have to be delayed owing to the necessity o£ using the existing line for the with- 
 drawal of troops. The term of the concession above mentioned is therefore to 
 expire in the 49th year of Kuang Hsii.^ At the expiration of that term, the 
 said railway shall be sold to China at a price to be determined by appraisement 
 of all its properties by a foreign expert who will be selected by both parties. 
 The conveyance by the railway of the troops and munitions of war of the 
 Chinese Government prior to such sale shall be dealt with in accordance with 
 the regulations of the Eastern Chinese Railway.* Regarding the manner in 
 which the improvements of the railway are to be efifected, it is agreed that the 
 person undertaking the work on behalf of Japan shall consult with the Com- 
 missioner dispatched for the purpose by China. The Chinese Government will 
 also appoint a Commissioner to look after the business relating to the railway as 
 is provided in the Agreement relating to the Eastern Chinese Railway. It is 
 further agreed that detailed regulations shall be concluded regarding the tariffs 
 for the carriage by the railway of the public and private goods of China. 
 
 Article VII. — The Governments of Japan and China, with a view to pro- 
 mote and facilitate intercourse and traffic, will conclude, as soon as possible, a 
 separate convention for the regulation of connecting services between the rail- 
 way lines in South Manchuria and all the other railway lines in China. f 
 
 Article VIII. — The Imperial Chinese Government engage that all materials 
 required for the railways in South Manchuria shall be exempt from all duties, 
 taxes and likin. 
 
 Article IX, — The methods of laying out the Japanese Settlement at Yingkou 
 in the Province of Shengking, which has already been opened to trade, and at 
 
 * Under date of October 30, 1911, an agreement on this subject was concluded, of which 
 the translation is given in Note 2 to this document, f^osf, p. 574. 
 
 t See the agreement of September 4. 1909 (No. 1909/9. post). Art. V. 
 
 § See, in connection with Articles TI, III and IV, the Agreement for the rendition of 
 Yingkou, December 5, 1906 (No. 1906/10, post). 
 
 II See Memorandum concerning the reconstruction of the Antung-Mukden Railway, 
 August 19, 1909 (Xo. 1909/8, post); and the Sino-Japanese agreement of September 4, 
 1909, Art. 4 (No. 1909/9, post). 
 
 ^ i.e., 1923-4. See, however, the exchange of Notes between Japan and China. May 25, 
 1915, concerning the extension of the terms of this and other leases (No. 1915/8; post, 
 p. 1221).
 
 NUMBER 1905/18: DECEMBER 22, 1905 553 
 
 Antung and Mukden in the same Province, which are still unopen although 
 stipulated to be opened, shall be separately arranged and determined by officials 
 of Japan and China. 
 
 Article X. — The Imperial Chinese Government agree that a joint-stock 
 company of forestry composed of Japanese and Chinese capitalists shall be 
 organized for the exploitation of the forests in the regions on the right bank of the 
 River Yalu and that a detailed agreement shall be concluded in which the area 
 and term of the concession as well as the organization of the com.pany and all 
 regulations concerning the joint work of exploitation shall be provided for4 
 The Japanese and Chinese shareholders shall share equally in the profits of the 
 undertaking. 
 
 Article XI. — The Governments of Japan and China engage that in all that 
 relates to frontier trade between Manchuria and Corea most favoured nation 
 treatment shall be reciprocally extended.§ 
 
 Article XII. — The Governments of Japan and China engage that in all 
 matters dealt with in the Treaty signed this day or in the present Agreement the 
 most favourable treatment shall be reciprocally extended. 
 
 The present Agreement shall take effect from the date of signature. When 
 the Treaty signed this day is ratified, this Agreement shall also be considered 
 as approved. 
 
 In witness whereof, the Undersigned, duly authorized by their respective 
 Governments, have signed the present Agreement in duplicate in the Japanese and 
 Chinese languages and have thereto affixed their seals. 
 
 Done at Peking, this 22nd day of the 12th month of the 38th year of Meiji, 
 corresponding to the 26th day of the 11th moon of the 31st year of Kuang Hsu. 
 (Signed) Baron Komura Jutaro, [l. s.] 
 
 Jusammi, Grand Cordon of the Imperial Order of tJie Ris- 
 ing Sun, Minister for Foreign Affairs and Special Ambassa- 
 dor of His Majesty the Emperor of Japan. 
 (Signed) Uchida Yasuya, [l. s.] 
 
 Jushii, Second Class of the Imperial Order of the Rising 
 Sun, Envoy Extraordinary and Minister Plenipotentiary of 
 His Majesty the Emperor of Japan. 
 (Signed) Prince Ching, [l. s.] 
 
 Presiding Minister for Foreign Affairs, Councillor of State 
 and Plenipotentiary of His Majesty the Emperor of China. 
 (Signed) Chu Hung-chi, [l. s.] 
 
 Minister for Foreign Affairs, Councillor of State and Pleni- 
 potentiary of His Majesty the Emperor of China. 
 (Signed) Yuan Shih-kai, [l. s.] 
 
 Viceroy of the Province of Chihli, Junior Guardian of the 
 Heir-Apparent, Minister Superintendent of Trade for the 
 Northern Ports and Plenipotentiary of His Majesty the 
 Emperor of China. 
 
 tSee the agreement of May 14, 1908 (No. 1908/8, post), and regulations dated Septem- 
 ber 11, 1908. 
 
 § See the arrangement relating to the reduction of customs duties on goods transported 
 by the Antung-Mukden Railway, May 29, 1913 (No. 1913/7, post).
 
 554 CHINA TREATIES AND AGREEMENTS 
 
 Note I. 
 
 It has been stated that, to the treaty and additional agreement here printed, were 
 attached certain secret protocols of which the following summary has been given : 
 
 Summary of alleged Secret Protocols to Sino-Japanese Treaty of December 22, 1905. 
 
 " Whereas the protocols of the Conference recently held between the Plenipotentiaries 
 of Japan and China with regard to Manchuria are to be kept strictly secret in deference 
 to the desire of the Chinese Government, only such portions of those Protocols as possess the 
 character of executory agreements are given in the following summary : 
 
 " 1. The railway between Changchun and Kirin will be constructed by China with 
 capital to be raised by herself. She, however, agrees to borrow from Japan the insufficient 
 amount of capital, which amount being about one-half of the total sum required. The 
 contract concerning the loan shall, in due time, be concluded, following, mutatis mutandis, 
 the loan contract entered into between the board of the Imperial Railways of North China 
 and the Anglo-Chinese Syndicate. The term of the loan shall be twenty-five years, redeem- 
 able in yearly instalments. 
 
 "2. The military railway constructed by Japan between Mukden and Hsinmintun 
 shall be sold to China at a price to be fairly determined in consultation by Commis- 
 sioners appointed for the purpose by the two Governments. China engages to recon- 
 struct the line, making it her own railway, and to borrow from a Japanese corporation 
 or corporations one half of the capital required for the portion of the line east of 
 Liao-ho for a term of eighteen years repayable in yearly instalments, and a contract 
 shall be concluded, for the purpose foWowing, mutatis mutandis, the loan contract 
 entered into between the Board of the Imperial Railways of North China and the 
 Anglo-Chinese Syndicate. 
 
 " All the other military railways in different localities shall be removed with the 
 evacuation of the regions. 
 
 " 3. The Chinese Government engage, for the purpose of protecting the interest of 
 the South Manchurian Railway, not to construct, prior to the recovery by them of the 
 said railway, any main line in the neighborhood of and parallel to that railway, or any 
 branch line which might be prejudicial to the interest of the above-mentioned railway. 
 
 " 4. China declares that she will adopt sufficient measures for securing Russia's 
 faithful observance of the Russo-Chinese treaties with regard to the railways which 
 Russia continues to possess in the northern part of Manchuria, and that it is her inten- 
 tion, in case Russia acts in contravention of such treaty stipulations, to approach her 
 strongly with a view to have such action fully rectified. 
 
 " 5. When in the future, negotiations are to be opened between Japan and Russia 
 for regulation of the connecting railway services (Article VIII of the Treaty of Peace 
 between Japan and Russia), Japan shall give China previous notice. China shall com- 
 municate to Russia her desire to take part in the negotiations through commissioners 
 to be despatched by her on the occasion, and Russia consenting shall participate in 
 such negotiations. 
 
 " 6. With regard to the mines in the Province of Fengtien, appertaining to the 
 railway, whether already worked or not, fair and detailed arrangements shall be agreed 
 upon for mutual observance. 
 
 "7. The affairs relating to the connecting services as well as those of common con- 
 cern in respect of the telegraph lines in the Province of Fengtien and the cables be- 
 tween Port Arthur and Yentai shall be arranged from time to time as necessity may 
 arise in consultation between the two countries. 
 
 " 8. The regulations respecting the places to be opened in Manchuria, shall be 
 made by China herself, but the Japanese Minister at Peking must be previously con- 
 sulted regarding the matter. 
 
 "9. If no objection be offered on the part of Russia respecting to the navigation 
 of the Sungari (by Japanese vessels), China shall consent to such navigation after 
 negotiations. 
 
 " 10. The Chinese Plenipotentiaries declare that immediately after the withdrawal 
 of the Japanese and Russian troops from Manchuria, China will proceed to take, in 
 virtue of her sovereign right, full administrative measures to guarantee peace in that 
 region and endeavor, by the same right, to promote good and remove evil as well as 
 steadily to restore order, so that the residents of that region, natives and foreigners, may 
 equally enjoy the security of life and occupation under the perfect protection of the 
 Chinese Government. As to the means of restoring order, the Chinese Government are 
 to take by themselves all adequate measures. 
 
 " 11. While relations of intimate friendship subsisted as at the present time be- 
 tween China and Japan, Japan and Russia had unfortunately engaged in war and 
 fought in the territory of China. But peace has now been reestablished and hostihties 
 in Manchuria have ceased. And while it is undeniable that Japanese troops, before 
 their withdrawal, have the power of exercising the rights accruing from military occupa- 
 tion, the Chinese Government declare that certain Japanese subjects in Manchuria have
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 555 
 
 recently been observed to sometimes interfere with the local Chinese administration and 
 to inflict damage to public and private property of China. 
 
 " The Japanese Plenipotentiaries, considering that, should such interference and 
 infliction of damage have been carried beyond military necessity, they are not proper 
 acts, declare that they will communicate the purport of the above declaration of the 
 Chinese Government to the Government of Japan, so that proper steps may be taken 
 for controlling Japanese subjects in the Province of Fengtien and promote the friendly 
 relations between the two nations, and also for preventing them in future, from interfer- 
 ing with the Chinese administration or inflicting damage to public or private property 
 without military necessity. 
 
 " 12. In regard to any public or private property of China which may have been 
 purposely destroyed or used by Japanese subjects without any military necessity, the 
 Governments of the two countries shall respectively make investigations and cause fair 
 reparation to be made. 
 
 " 13. When the Chinese local authorities intend to despatch troops for the pur- 
 pose of subduing native bandits in the regions not yet completely evacuated by Japanese 
 troops, they shall not fail to previously consult with the Commander of the Japanese 
 troops stationed in those regions so that all misunderstandings may be avoided. 
 
 " 14. The Japanese Plenipotentiaries declare that the Railway Guards stationed 
 bet^yeen Changchun and the boundary line of the leased territory of Port Arthur and 
 Talien, shall not be allowed, before their withdrawal, to unreasonably interfere with 
 the local administration of China or to proceed without permission beyond the limits 
 of the railway. 
 
 " 15. Chinese local authoritites, who are to reside at Inkou, shall be aDpwed, even 
 before the withdrawal of the Japanese troops, to proceed to that place and transact their 
 official business. The date of their departure is to be determined, as soon as possible 
 after the definite conclusion of this Treaty, by the Japanese Minister to China in con- 
 sultation with the Waiwupu. As there is still in that place a considerable number of 
 Japanese troops, quarantine regulations as well as regulations for the prevention of 
 contagious diseases, shall be established by the authorities of the two countries in 
 consultation with each other so that epidemics may be avoided. 
 
 " 16. The revenue of the Maritime Customs at Yingkou shall be deposited with 
 the Yokohama Specie Bank and delivered to the Chinese local authorities at the time 
 of evacuation. As to the revenue of the native Customs at that place and the taxes 
 and imposts at all other places, which are to be appropriated for local expenditures, a 
 statement of receipts and expenditures shaM be delivered to the Chinese local au- 
 thorities at the time of evacuation." 
 
 The exploitation of the railways in Manchuria was entrusted by the Japanese 
 Government to the South Manchuria Railway Joint Stock Company by an imperial ordi- 
 nance of June 7, 1906, of which the translation (from the Japanese text as officially 
 promulgated) is as follows: 
 
 Japanese Imperial Ordinance sanctioning Organization of South Manchuria Railway 
 
 Company. — June 7, 1906. 
 
 "We hereby sanction the organization of the South Manchuria Railway Joint Stock 
 Company and cause the following Ordinance to be promulgated. 
 
 (Sign Manual) 
 (Privy Seal) 
 " June 7, 1906. 
 
 " (Countersigned) Marquis Kimmochi Saionji, 
 
 I\Iinistcr President of State. 
 " (Countersigned) Isaburo Yamagata, 
 
 Minister of State for Communications. 
 
 imperial ordinance no. 142, june 7, 1906. 
 
 " Article I. — The Government shall cause the organization of the South Manchuria 
 Railway Joint Stock Company for the purpose of engaging in railway traffic in Manchuria. 
 
 " Article II. — The shares of the company shall all be registered [signed] and may be 
 owned only by the Japanese and Chinese Governments or by subjects of Japan and China. 
 
 " Article III. — The Japanese Government may offer its Manchurian railways, and their 
 appurtenances, and its coal-mines in Manchuria, as the capital to be furnished by the 
 Government. 
 
 " Article IV. — iThe company may divide the new shares to be raised into several 
 issues to be floated at different times, but the amount of the first issue shall not be less than 
 one-fifth of the whole amount. 
 
 " Article V. — The first payment upon the shares need not exceed one-tenth of the 
 value of the shares. .
 
 556 CHINA TREATIES AND AGREEMENTS 
 
 " Article VI. — The company shall establish its head-office at Tokio and a branch office 
 at Dalny. 
 
 " Article VII. — The company shall have a president, a vice-president, four or more 
 directors and from three to five inspectors. 
 
 " Article VIII. — The president shall represent the company and manage its affairs. 
 
 " The vice-president shall perform the president's duties when the latter is prevented 
 from discharging them, and shall act as president when the latter post is vacant. 
 
 " The vice-president and directors shall assist the president in his duties and shall take 
 charge of various departments of the company's business. 
 
 '■ The inspectors shall examine the business of the company. 
 
 "Article IX. — The Government, subject to the Imperial sanction, shall appoint the 
 president and vice-president, whose terms of office shall be five years. 
 
 " The Government shall, appoint the directors from among those shareholders who 
 own fifty or more shares. The term of office shall be four years. 
 
 " The inspectors shall be elected from among the shareholders at a general meeting 
 of the latter. The term of office shall be three years. 
 
 " Article X. — The amount of compensation and allowances of the president, vice- 
 president and directors shall be fixed by the Government. 
 
 " Article XI. — The president, vice-president and directors of the company shall not 
 engage in any other business or trade, under any name whatsoever, during their terms 
 of office, except by special permission of the Government. 
 
 " Article XII. — The Government shall appoint supervisors for the South Manchuria 
 Railway Joint Stock Company to supervise the business of the company. 
 
 " The supervisors may at any time examine the company's business and inspect their 
 safes, books, documents and any other articles belonging to the company. 
 
 " The supervisors, whenever they may deem it necessary, may order the company to 
 report on the various accounts and the condition of the company's business. 
 
 " The supervisors may attend the general meetings of the shareholders of the company, 
 or any other meetings, and express their opinions, but shall not be entitled to vote. 
 
 "Article XIII. — The Government may issue such orders as may be necessary to 
 superintend the business of the company. 
 
 " Article XIV. — In case the decisions of the company or the conduct of its officers 
 are in violation of laws and regulations or of the object of the company, or are detrimental 
 to the public welfare, or fail to carry out the orders of the Government office under whose 
 jurisdiction the company is, the Government may cancel the said decisions or dismiss the 
 officers concerned. 
 
 " Article XV. — When the Government deems it necessary, it may apply to the com- 
 pany the provisions of the laws and regulations relating to railways in Japan. 
 
 " In the case referred to in the preceding paragraph the Government shall inform 
 the company in advance as to the laws and regulations to be so applied. 
 
 " Article XVI. — When not otherwise provided for in this Ordinance, the provisions of 
 the Commercial Code and its Supplementary Laws and Regulations shall be applied. 
 
 " Article XVII. — The provisions of Imperial Ordinance No. 366 [Relates to the con- 
 struction of railways in foreign countries by Japanese companies.] of 1900, shall not be 
 applied to the company that is to be organized in accordance with this Ordinance. 
 
 " supplementary rules. 
 
 " Article XVIII. — The Government shall appoint a commission to transact all busi- 
 ness relating to the organization of the South Manchuria Railway Joint Stock Company. 
 
 "Article XIX. — The organizing commission shall draw up the company's articles of 
 association, and after the said articles have been approved by the Government, shall open 
 the subscriptions for the first issue of shares. 
 
 " Article XX. — When the first issue of the company's shares has been subscribed, the 
 commission shall present to the Government the subscription list and apply for permission 
 to organize the company. 
 
 " Article XXI. — When the permission referred to in the preceding Article has been 
 given, the organizing commission shall, without delay, call for the first instalment upon 
 each share. 
 
 " When the first instalment referred to in the preceding Article has been paid in, the 
 commission shall, without delay, call a general meeting for organization. 
 
 " Article XXII. — At the close of the first general meeting the organizing commission 
 shall turn over its business to the President of the South Manchuria Railway Joint Stock 
 Company." 
 
 The following are the translations (from the official Japanese texts) of the govern- 
 ment order of August 1, 1906, concerning the South Manchuria Railway Company, and 
 of the articles of incorporation of that company:
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 557 
 
 Japanese Government Order regarding South Manchuria Railway Company.— 
 
 August I, 1906. 
 
 " To Masatake Terauchi, Chairman of the Organizing Commission of the South Man- 
 churia Railway Joint Stock Company, And eighty other members of the Commission: 
 
 " The following orders are hereby given respecting the several matters relating to the 
 organization of the South Manchuria Railway Joint Stock Company, all matters per- 
 taining to the management of which have been entrusted to the Commission. 
 
 " August 1, 1906. 
 
 " ISABURO YaMAGATA, 
 
 Minister of Communications. 
 " YosHiRO Sakatani, LL. D., 
 
 Minister of Finance. 
 " Viscount Tadasu Hayashi, 
 
 Minister for Foreign Affairs. 
 
 " Article 1. — In accordance with the Additional Agreement of the Japan-China Treaty 
 relating to Manchuria, signed on December 22nd, 1905, the Company shall engage in the 
 traffic of the following railways : 
 " Tairen-Changchun. 
 " Nankuanling-Port Arthur. 
 " Tafangshen-Liushutun. 
 " Tashichiao-Yingkow. 
 " Yentai-Yentai Coal jNIine. 
 " Sukiatun-Fushun. 
 " Mukden-Antunghsien. 
 
 " Article 2. — The railways mentioned in the preceding Article shall be changed to the 
 4 feet 8.5 inch gauge within three (3) years counting from the day on which the com- 
 pany commences its operations. 
 
 ■■ On the Tairen-Changchun Railway the tracks between Tairen and Sukiatun [near 
 Mukden] shall be doubled. 
 
 " Article 3. — The company shall make the various arrangements necessary for the 
 lodging and meals of the passengers, as well as for the storage of goods at the principal 
 stations on the line. 
 
 " At the points on the harbors and bays touched by the railways the necessary arrange- 
 ments shall be made for connecting water and land transportation. 
 
 " Article 4. — For the convenience and the profit of the railways, the company may 
 engage in the following accessory lines of business : 
 
 " ^Mining, especially the operation of the coal-mines at Fushun and Yentai. 
 
 " Water transportation. 
 
 " Electrical enterprises. 
 
 " Sale on commission of the principal goods carried by the railways. 
 
 " Warehousing. 
 
 " Business relating to the land and buildings on the land attached to the railways. 
 
 " In addition, any business for which Government permission has been given. 
 
 " Article 5. — The company shall, subject to the permission of the Government, make 
 the necessary arrangements for engineering works, education, sanitation, etc. within the 
 area of lands used for the railways and the accessory lines of business. 
 
 " Article 6. — To defray the expenses necessary for the arrangements mentioned in the 
 preceding Article, the company may, subject to the permission of the Government, collect 
 fees of those who live within the area of lands used for the railways and the accessory 
 lines of business, or make any other assessments for necessary expenses. 
 
 " Article 7. — The total amount of the company's capital stock shall be 200 million Yen, 
 of which 100 million Yen shall be furnished by the Imperial [Japanese] Government. 
 
 " -Article 8. — The capital to be furnished by the Government mentioned in the pre- 
 ceding Article shall consist of the following properties : 
 
 " The existing railways. 
 
 " All properties belonging to the railways, except those in the leased territory specially 
 designated by the Government. 
 
 " The coal mines at Fushun and Yentai. 
 
 " Article 9. — The rolling stock now being used by the Government, and the rails as 
 well as the accessories of the Mukden-Antunghsien temporary railway, shall be sold to 
 the company at a reasonable price. 
 
 " Article 10. — The shares not owned by the Government shall be open to subscription 
 by Japanese and Chinese subjects. 
 
 "Article 11. — ^When the dividend of the company for any business year is less than six 
 (6) per cent per annum on the paid amount for the shareholders other than the Govern- 
 ments of Japan and China (hereafter to be styled merely 'the shareholders'), the Gov- 
 ernment shall supply the deficiency for a period of fifteen (15) years only, (or for thirty
 
 558 CHINA TREATIES AND AGREEMENTS 
 
 (30) business years if the calendar year be divided into two business years), commencing 
 from the day of the registration of the company's establishment. However, the amount 
 of money to be furnished by the Government to supply the deficiency referred to shall, 
 under no circumstances, exceed six (6) per cent per annum on the capital paid in by the 
 shareholders. 
 
 " Article 12. — When the dividend of the company for any business year does not 
 exceed six (6) per cent per annum on the capital paid in by the shareholders, the dividend on 
 the shares ovi^ned by the Government need not be paid. 
 
 " The shares owned by the Chinese Government shall be dealt with in a similar way to 
 those owned by the Imperial Government. 
 
 " Article 13. — The Government shall guarantee the payment of interest on the de- 
 bentures which the company may issue for the reconstruction of the railways, or for the 
 operation of the accessory business, and on those which the company may issue for con- 
 solidating or redeeming these debentures. The Government shall, if necessary, guarantee 
 the repayment of the principal. 
 
 " The amount of the face value of the debentures to be guaranteed by the Government 
 shall not exceed the amount remaining when the capital paid in by the shareholders other 
 than the Government is subtracted from the total of the capital subscribed by them [shall 
 not exceed the difference between the capital subscribed and the amount paid in]. 
 
 " The debentures mentioned in the first paragraph shall be redeemed within twenty- 
 five (25) years counting from the year of their issuance. 
 
 " Article 14. — For the debentures issued in accordance with the provisions in the first 
 paragraph of the preceding Article, the Government shall supply the amount correspond- 
 ing to the interest on the debentures. _ 
 
 "When the dividend on the capital paid up by the shareholders exceeds six (6) 
 per cent per annum, the surplus shall first be applied to the payment of the interest on the 
 debentures. However, in this case the amount of surplus shall be deducted. 
 
 "Article 15. — When there is any surplus after paying the interest on the debentures, 
 as mentioned in the preceding Article, out of the profits of the company's business, the 
 said surplus shall be apportioned to the shares owned by the Governments of Japan and 
 China until the rate is equal on the respective amounts paid up by all shareholders. 
 
 " Article 16. — The money to be supplied by the Government, as provided for in Articles 
 11 and 14, shall bear interest at six (6) per cent per annum. The interest shall be added 
 annually to the principal, and the total shall be the company's indebtedness to the Govern- 
 ment. 
 
 "When the dividend for all the shares exceeds ten (10) per cent per annum, the sur- 
 plus shall be devoted to the redemption of the company's debt mentioned in the preceding 
 paragraph. 
 
 " Article 17. — Any surplus of funds raised by means of the debentures mentioned 
 in Article 13 shall be deposited with the Division of Deposits in the Department of Finance. 
 
 " Article 18. — The company shall determine estimates of the capital to be paid up and 
 the debentures to be floated during each business year, their face value, issuing price, rate 
 of interest, date of issuance et cetera, and shall receive the Government's approval. 
 
 " Article 19. — The company shall determine the regulations relating to its finances and 
 business, and shall secure the Government's approval. 
 
 " When the company desires to alter the regulations mentioned in the preceding para- 
 graph and the articles of incorporation, similar steps shall be taken. 
 
 " Article 20. — The plans of the company's business, the estimate of the cost of opera- 
 tion, the budget of income and expenditures connected with the company's business, the 
 settlement of the same and the rate of the dividend for each business year shall be sub- 
 mitted to the Government for approval. When the company desires to alter the foregoing 
 items, similar steps shall be taken. 
 
 " Article 21. — At the designation of the Government the company shall report on the 
 following matters : 
 
 " The present condition of the cost of operation as well as the income and expenditures 
 connected with the company's business. 
 
 " The actual condition of the company's work in general. 
 
 " Article 22. — Without the permission of the Government the company shall not dispose 
 of its principal rights and properties ; nor give the same for security. 
 
 " Article 23. — When the Government deems it necessary, it may order the freight 
 charges to be reduced, but only under special conditions. 
 
 " Article 24. — The Government may, when it deems necessary, order the company to 
 make new works arrangements or modify the existing ones. 
 
 " Article 25. — At the designation of the Government the company shall be under obliga- 
 tion at any time to place the railways, land and any other articles at the service of the Gov- 
 ernment. 
 
 " Article 26. — The Articles and paragraphs relating to the funds to be supplied by the 
 Government and the Government guarantees mentioned in the present order shall be con- 
 firmed upon the approval of the Imperial Diet."
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 559 
 
 "THE ARTICLES OF INCORPORATION OF THE SOUTH MANCHURIA RAIL- 
 WAY JOINT STOCK COMPANY. 
 
 " Chapter I. — General provisions. 
 
 " Article 1. — This company shall be called the South IManchuria Railway Joint Stock 
 Company and is established in accordance with Imperial Ordinance No. 142 of 1906 and in 
 obedience to the Order of the Imperial Japanese Government. 
 
 " Article 2. — The liability of the shareholders of this company is limited to the value 
 of the share^s owned by them. 
 
 " Article 3. — This company shall establish its head-office at Tokyo and its branch 
 office at Tairen [Dalny]. 
 
 "Article 4. — The objects of this company are as follows: 
 . "I. To engage in the transportation business of the following railways in Alanchuria: 
 " Tairen-Changchun Railway. 
 " Nankuanling-Port Arthur Railway. 
 " Tafangshin-Liushutun Railway. 
 " Tashichiao-Yingkow Railway. 
 " Yentai-Yentai Coal-Mine Railway. 
 " Sukiatun-Fushun Railway. 
 " Mukden-Antunghsien Railway. 
 " II. To engage in the following lines of accessory business for the benefit of the 
 railways : 
 
 " Mining, especially the operation of the coal mines at Fushun and Yentai. 
 " Water transportation. 
 " Electrical enterprises. 
 " Warehousing. 
 
 " Business relating to the land and buildings on the land attached to the railways. 
 " Any other business for which the permission of the Government may be given. 
 " Article 5. — The capital of this company shall be 200,000,000 Yen. However, the 
 amount of the first subscription of shares shall be Yen 20.000,000, not including the shares 
 to be owned by the Imperial Japanese Government. The second and subsequent sub- 
 scriptions shall be opened from time to time, as necessity may require, upon the resolution 
 of a general meeting of the shareholders. 
 
 " Article 6. — The public notices of this company shall be published in the newspapers 
 in which the public notices of the court of law are published to whose jurisdiction the 
 company is subject in Tokyo [the location of ^ the head-office], and in the newspapers in 
 which the public notices of the Government General of Kwantung are published at Tairen. 
 
 " Chapter II. — Shares. 
 
 " Article 7. — The share certificates of this company shall all be registered, and each share 
 shall be two hundred (200) Yen. 
 
 " Article 8. — The certificates of shares of this company shall be of the following seven 
 denominations : 
 
 " One-share certificates 
 
 " Five-share certificates 
 
 " Ten-share certificates 
 
 " Fifty-share certificates 
 
 " One hundred-share certificates 
 
 " One thousand-share certificates 
 
 " Ten thousand-share certificates 
 
 " Article 9. — The certificates of shares of this company shall bear the name of the 
 company, the date of registration, the total amount of capital, the amount of each share, 
 the amount paid up, and the number of the certificate. They shall bear the signature and 
 seal of the President. 
 
 " Article 10. — As to the payments upon the shares, twenty (20) Yen per share shall 
 be paid in at the first call. For the second and subsequent calls on the shares, the Presi- 
 dent shall determine the amount to be paid in as well as the time of payment, and notice 
 of the same shall be sent to each shareholder at least sixty (60) days in advance. How- 
 ever, each call on the shares shall not exceed twenty (20) Yen per share. 
 
 " Article 11. — If a shareholder fails to make payment by the date fixed for payment 
 on the shares, delay interest shall be charged him at the rate of four (4) sen per day per 
 one hundred (100) Yen on the amount due. 
 
 " Article 12. — If a shareholder fails to make payment within fifteen (15) days from 
 the date fixed for the first payment on the shares, the company may demand that payment 
 be made within thirty days; and if the money is not paid in by that time the company may 
 notify him that his rights as a shareholder of this company shall be forfeited.
 
 560 CHINA TREATIES AND AGREEMENTS 
 
 " In the case mentioned in the previous paragraph, where rights are lost, the applica- 
 tion money previously paid shall not be refunded. 
 
 "Article 13. — If at the second and subsequent calls on the shares a shareholder fails 
 to make payment within fifteen (15) days after the date fixed for payment, the company 
 may notify such shareholder that payment must be made within thirty (30) days, and that, 
 in the case of failure to comply, his rights as a shareholder of this company shall be 
 forfeited. 
 
 " When, in the case mentioned in the previous paragraph, a shareholder has forfeited 
 his rights as such, the company shall notify each assignor [i.e., one who has previously held 
 the shares] of shares that payment must be made within fifteen (15) days, and the assignor 
 who first pays the amount in arrears shall acquire the shares. If no assignor pays, the 
 company shall sell the shares at auction. If the amount realized by the auction is not 
 sufficient to cover the amount in arrears, the previous shareholder shall be required to make 
 good the deficit. If the previous shareholder does not make good within fourteen (14) days, 
 the company shall demand performance of the assignors. 
 
 " Article 14. — The liability of the assignors mentioned in the preceding Article is extin- 
 guished after two years from the time when the assignment was entered in the Register 
 of Shareholders. 
 
 " Article 15. — If a company or any other legal person, public or private, owns the 
 shares of this company, it shall appoint its representative and have his name entered in 
 the Register of Shareholders of this company. If shares are held by two or more persons 
 in common, they are required to appoint one person to exercise their rights as shareholder. 
 Persons holding shares in common are jointly and severally liable to the company for the 
 payment upon the shares. 
 
 " Article 16.— rWhen shares are to be assigned, the parties concerned shall make a 
 written statement in accordance with the form prescribed by this company and apply for 
 the alteration of the certificates of shares. However, when a person inherits shares by 
 virtue of succession, bequest or any decision rendered by a court of law, such person is 
 required to attach to the statement referred to a certificate of the census official or other 
 documents as evidence that the company may deem necessary. 
 
 " The assignment of any share shall not be valid unless the name and domicile of the 
 assignee are entered in the Register of Shareholders and the name of the said assignee is 
 entered on the share certificate in question. 
 
 " Article 17. — Should any certificate of shares be destroyed, mutilated or lost, the 
 shareholder may apply for a new certificate of shares by presenting to the company a state- 
 ment giving the facts in the case and signed by two or more persons as guarantors. How- 
 ever, in case of loss, a public notice to that effect shall be given at the expense of the 
 applicant, and the new certificate of shares shall be issued only when no objection is raised 
 within sixty (60) days from the date of tlie said public notice. 
 
 "Article 18. — If any shareholder wishes to change the denominations of his certificates 
 of shares, the said certificates shall be presented to the company together with the appli- 
 cation. 
 
 " Article 19. — For the registration of a change of an owner's name on a certificate of 
 shares, the issue of a new certificate of shares or the alteration of the denomination of a 
 certificate of shares, the prescribed fees of the company shall be collected from the 
 applicant. 
 
 " Article 20. — During a period not exceeding thirty (30) days immediately preceding 
 each ordinary general meeting of shareholders, the company shall suspend the assignment 
 of shares. 
 
 " Chapter III. — Shareholders. 
 
 "Article 21. — The shareholders of this company shall be limited to the Governments 
 of Japan and China, and the subjects of Japan and China. 
 
 " Article 22. — The Imperial Japanese Government shall furnish the following proper- 
 ties as capital, and the company shall deliver to the Government five hundred thousand 
 (500,000) shares, amounting to Yen 100,000,000, which is the value of the said properties: 
 
 " The existing railways (except the rolling stock now actually in use, as well as the 
 rails and accessories of the Mukden-Antunghsien temporary railway). 
 
 " All properties attached to the railways referred to, except such properties within the 
 leased territory as may be designated by the Government. 
 
 " The coal-mines at Fushun and Yentai. 
 
 " Article 23. — Each shareholder shall have the right to one vote for each share owned 
 by him. 
 
 " Article 24. — The shareholders and their legal representatives shall report to the com- 
 pany their domiciles, names and a copy of their legal seals, when they acquire shares. 
 When any alteration in the above facts has taken place, similar measures shall be taken.
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 561 
 
 " Chapter IV. — General meeting. 
 
 " Article 25. — An ordinary general meeting shall be called by the President twice 
 every year in the months of June and December. An extraordinary general meeting shall 
 be called by the President when the President or the Inspectors deem it necessary to do so, 
 or when the shareholders owning at least one-tenth or more of the total number of shares 
 have presented a request to that effect, stating the object of the general meeting and the 
 reasons for calling the same. When the shareholders have requested a general meeting to 
 be called, the President shall take stepi for calling the same within fourteen (14) days. 
 
 " Article 26. — The discussion at a general meeting shall be confined to the subjects 
 previously announced. 
 
 " Article 27. — The date, time and place of a general meeting shall be determined by 
 the President, and a notice to that effect shall be sent out to the shareholders at least thirty . 
 (30) days in advance of such meeting. 
 
 " Article 28. — The President shall act as chairman of a general meeting. 
 
 "Article 29. — The shareholders may appoint only shareholders of this company as their 
 representatives, and their powers of attorney shall be presented to the company. 
 
 " Article 30. — The chairman of the general meeting shall be allowed to exercise his 
 right to vote as a shareholder. 
 
 "Article 31. — Resolutions of a general meeting shall be adopted by a majority vote 
 of the shareholders present. In case of a tie, the chairman shall have the casting vote. 
 
 " Article 32. — The issuance of company debentures or amendments to the Articles of 
 Incorporation shall be decided by a majority vote, with more than one-half of the total 
 number of shareholders and also of shareholders representing a half or more of the capital 
 stock present. 
 
 " If, in the case mentioned in the preceding paragraph the necessary quorum is not 
 present, a provisional decision may be made by a majority of the shareholders present. 
 A notification giving the essential details of the said provisional decision shall be sent to 
 each shareholder, and another general meeting shall be called in not less than one month. 
 
 " At the second general meeting the said provisional decision shall be confirmed or 
 rejected by a majority vote of the shareholders present. 
 
 " Article 33. — The minutes of a general meeting shall be recorded in the Proceedings 
 of the general meetings, and the same shall bear the signatures and seals of the President 
 and chief officers present. 
 
 " Article 34. — The chairman of the general meeting may adjourn the meeting or 
 change the place of meeting. The discussion at an adjourned meeting shall be confined to 
 the subjects on which no decision was made at the preceding meeting. 
 
 " Chapter V. — Chief officers. 
 
 " Article 35. — The chief officers of this company shall be as follows : 
 
 President 1 
 
 Vice-President • • 1 
 
 Directors 4 or more 
 
 Inspectors 3 to 5 
 
 " Article 36. — The term of office of the President and Vice-President shall be five 
 years, and they shall be appointed by the Government subject to the Imperial sanction. 
 
 " The term of office of the Directors shall be four years, and they shall be appointed 
 by the Government from among those who own fifty (50) shares or more. 
 
 " The term of office of the Inspectors shall be three years, and they are to be elected 
 by the shareholders at a general meeting of the shareholders. 
 
 " Article 37. — The remunerations and allowances of the President, Vice-President and 
 Directors shall be determined by the Government. 
 
 " The remuneration of the Inspectors shall be determined by a resolution of a general 
 meeting of the shareholders. 
 
 " Article 38. — The Directors are required, during their term of office, to deposit with 
 the Inspectors fifty (50) shares of the company owned by them. These shares shall not 
 be returned to their owners even on their retirement from office until all affairs transacted 
 during their term of office shall have been approved at a general meeting. 
 
 " Article 39. — In the event of the office of any Inspector becoming vacant, an extraor- 
 dinary general meeting of the shareholders shall be called for the purpose of a by-election, 
 and the new Inspector shall hold office during the remainder of the term of office of his 
 predecessor. 
 
 " However, a by-election may be postponed until the next general meeting of the share- 
 holders, except when the number of Inspectors has decreased to two or less. 
 
 " Article 40. — The President shall represent the company and have general control of 
 all its affairs.
 
 562 CHINA TREATIES AND AGREEMENTS 
 
 " The Vice-President shall represent the President when he is prevented from discharg- 
 ing his official duties, and shall act as President when that office is left vacant. 
 
 ■' The Vice-President and the Directors shall assist the President, and each shall take 
 charge of a part of the business of the company. 
 
 " The Inspectors shall inspect the affairs of the company. 
 
 "Article 41. — During their respective terms of office the President, Vice-President 
 and Directors shall not engage in any other occupation or business under any name what- 
 ever without the permission of the Government. 
 
 " Article 42. — The President shall keep at the head-office as well as the branch office 
 copies of the Articles of Incorporation and of the Record of Resolutions of the general 
 meetings of shareholders. He shall also keep at the head-office the Register of Share- 
 holders and the Ledger of Debentures. 
 
 " Article 43. — The President shall submit the following documents to the Inspectors 
 seven (7) days in advance of the date set for the ordinary general meeting of shareholders; 
 
 " (1) An inventory of the company's properties. 
 
 " (2) A balance sheet. 
 
 " (3) A report on the company's works. 
 
 " (4) An account of the profits and losses. 
 
 " (5) Proposals relating to the reserve funds and to the dividends. 
 
 " Article 44. — The President shall have in readiness at the head-office before the day 
 of an ordinary general meeting of the shareholders the documents mentioned in the pre- 
 ceding Article and the Inspectors' report. 
 
 "Article 45. — The President shall submit to an ordinary general meeting of the share- 
 holders the documents mentioned in Article 43 and obtain its approval. 
 
 " The President shall publish the balance sheet when he has obtained the approval 
 mentioned in the preceding paragraph. 
 
 " Article 46. — The Inspectors are required to examine the documents to be submitted 
 by the President to a general meeting of shareholders and to report their views at the 
 said meeting. 
 
 " Article 47. — The Inspectors may at any time demand the President to report on 
 the business of the company, and may examine the management of its affairs and the con- 
 dition of its properties. 
 
 " Chapter VI. — Supervisors. 
 
 " Article 48. — The Supervisors of the South Manchuria Railway Joint Stock Conv 
 pany may at any time inspect the arrangements of the company's work, or examine the 
 safes and books of the company, as well as the various documents and articles belonging 
 to it. 
 
 " The Supervisors may, whenever they deem it necessary, order the company to report 
 on the various business accounts and the condition of the company. 
 
 " The Supervisors may attend the general meetings of the shareholders or any other 
 meetings and express their opinions, but they are not entitled to vote. 
 
 " Chapter VII. — Accounts. 
 
 " Article 49. — The account of this company shall be settled by dividing a year into 
 two periods. From April to September of every year shall be the first half year and from 
 October to the following March shall be the second half year. 
 
 "Article 50. — This company shall set aside as a reserve fund one-twentieth (1/20) or 
 more of the profits, whenever they are apportioned, until the reserve fund amounts to one- 
 fourth (1/4) of the capital. 
 
 " Special reserve funds other than that provided for in the preceding paragraph shall 
 be determined by a resolution of a general meeting. 
 
 " Article 51. — The dividends to the shareholders shall be paid according to the 
 Register of Shareholders as it stands on June 1 and December 1. 
 
 " Article 52. — When the dividend of the company for any business year is less than 
 six (6) per cent per annum on the paid up capital for the shareholders other than the 
 Governments of Japan and China (hereafter to be styled merely 'the shareholders'), the 
 Imperial Japanese Government shall supply the deficiency for a period of fifteen (15) years 
 commencing from the day of the registration of the company's establishment. However, 
 the amount of money to be supplied by the Government shall, under no circumstances, 
 exceed six (6) per cent per annum on the capital paid in by the shareholders. 
 
 " Article 53. — When the dividend of the company does not exceed six (6) per cent per 
 annum on the capital paid in by the shareholders, the dividend on the shares owned by the 
 Government need not be paid. 
 
 " The shares owned by the Chinese Government shall be dealt with in a similar way 
 to those owned by the Imperial Japanese Government. 
 
 " Article 54. — The payment of interest on the debentures which the company may
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 563 
 
 issue for the reconstruction of the railways, or for the operation of the accessory business, 
 and on those which the company may issue for consolidating or redeeming old debentures, 
 shall be guaranteed by the Imperial Japanese Government. 
 
 " The reimbursement of the principal may also, if necessary, be guaranteed by the Impe- 
 rial Japanese Government. The amount of the face value of the debentures to be guar- 
 anteed by the Imperial Japanese Government shall not exceed the amount remaining when 
 the capital paid in by the shareholders other than the Imperial Japanese Government is 
 subtracted from the total of the capital (Yen 100,000,000) subscribed by them. 
 
 " The debentures mentioned in the first paragraph of this Article shall be redeemed 
 within twenty-five (25) years. 
 
 " Article 55. — For the debentures issued in accordance with the provisions of the first 
 paragraph of the preceding Article, the Government shall supply the amount corresponding 
 to the interest on the debentures. 
 
 " When the dividend on the capital paid up by the shareholders exceeds six (6) per 
 cent per annum, the surplus shall first be applied to the payment of the interest on the 
 debentures. However, in this case the amount of surplus shall be deducted from the money 
 to be supplied by the Government mentioned in the preceding paragraph. 
 
 " Article 56. — When there is any surplus after paying the interest on the debentures, 
 as mentioned in the preceding Article, out of the profits of the company's business, the 
 said surplus shall be apportioned to the shares owned by the Governments of Japan and 
 China until the rate is equal on the respective amounts paid up by all shareholders. 
 
 " Article 57. — The money to be supplied by the Imperial Japanese Government, as pro- 
 vided for in Articles 52 and 55, shall bear interest at six (6) per cent per annum. The 
 interest shall be added annually to the principal, and the total shall be the company's indebt- 
 edness to the Imperial Japanese Government. 
 
 "When the dividend for all shares exceeds ten (10) per cent per annum, the surplus 
 shall be devoted to the redemption of the company's debt mentioned in the preceding 
 paragraph. 
 
 " Chapter VIII. — Expenses for organising the company. 
 
 " Article 58. — The expenses for organizing the company shall not exceed 50,000 Yen. 
 " Of the amount mentioned in the preceding paragraph that advanced by the Govern- 
 ment shall be reimbursed by the company. 
 
 " Supplementary Article. 
 
 " Article 59. — The provisions in Articles 52 to 57 shall be confirmed upon being 
 approved by the Imperial Diet." 
 
 Under date of July 31, 1917, were issued the following imperial ordinances regard- 
 ing the organization of the South Manchuria Railway Company, and the turning over to 
 its management of the Korean (Chosen) system of railways: 
 
 Organization of the South Manchuria Railway Company. 
 
 " (Imperial Ordinance No. 89, July 31, 1917). 
 
 " [Translation]. 
 
 "Imperial Ordinance No. 142 of 1906 shall be revised as follows: — 
 " In Article 7, ' One President, One Vice President,' shall be revised to ' the Chairman 
 of Directors.' 
 
 " Article 8, paragraphs one to four, shall be revised as follows : 
 
 The Chairman of Directors on behalf of the Company shall execute the affairs of 
 the Company according to the orders of the Governor General of Kwantung 
 Province. When the Chairman of Directors is prevented (from attending office) 
 a Director designated by the Government shall represent him in the discharge of 
 his duty. 
 "In Articles 9 to 11 ' President' and Vice President' shall be revised to 'Chairman 
 of Directors.' " 
 
 " Supplementary Rule. This Ordinance shall be effective from the date of its promulga- 
 tion." 
 
 Concerning the turning over of the operation of the Railways under the jurisdiction 
 of the Government General of Chosen. 
 
 " (Imperial Ordinance No. 90, July 31, 1917). 
 
 " [Translation]. 
 
 "The Governor General of Chosen may intrust to the South Manchuria Railway Com- 
 pany the construction, improvement, preservation and operation of the railways and the 
 undertakings connected therewith under his jurisdiction.
 
 564 CHINA TREATIES AND AGREEMENTS 
 
 " In the cases mentioned in the preceding paragraph, the Governor General of Chosen 
 may issue necessary orders to or make necessary arrangements with the South Manchuria 
 Railway Company for the carrying out of the undertakings intrusted to it or cause the 
 officials to inspect the undertakings. 
 
 " Supplementary Rule. This Ordinance shall be effective from the date of its promul- 
 gation." 
 
 Abolition of the Bureau of Railways in the Chosen Government General. 
 
 " (Imperial Ordinance No. 79, July 31, 1917). 
 " [Translation]. 
 
 " The Organization of the Bureau of Railways in the Chosen Government General is 
 hereby abolished. 
 
 " Supplementary Rule. This Ordinance shall be effective from the date of its promul- 
 gation." 
 
 The President of the South Manchuria Railway Company (Baron Shimpei Goto) 
 published in Company Order No. 14, dated September 28, 1907, a notification of the adoption 
 of the following regulations concerning councils of the branch offices of the South Manchuria 
 Railway : 
 
 Regulations concerning Councils of the Branch OfBces of the South Manchuria 
 
 Railway. 
 
 " Article 1. — If necessary, the South Manchuria Railway Company may establish 
 councils in each settlement, appointed by the Company from among the residents of the 
 district contributing to the public expenses of the Branch Office. The above council shall 
 be appointed by the President. 
 
 " Article 2. — The positions on the council shall be honorary and the term of service 
 shall be one year. 
 
 " The President may dismiss the councils if necessary. 
 
 " A member of the council appointed to fill a vacancy shall serve during the remainder 
 of the term of his predecessor. 
 
 " Article 3. — 'Should a member of the council move out of the district, he shall lose his 
 place on the council. 
 
 " Article 4. — The purpose of the meetings of the council is to answer such inquiries 
 as the Chief may consider it necessar}' to present to it. 
 
 " Article 5. — The Chief shall make regulations governing the meetings of the council 
 and other necessary rules for the enforcement of this order, subject to the approval of the 
 President." 
 
 At the same time, a similar Company Order (No. 15) was issued in regard to Taxes 
 and Charges in the leased land of the South Manchuria Railway Company; 
 
 Company Order concerning Taxes and Charges in the Leased Land of the South 
 
 Manchuria Railway Company. 
 
 "Article 1. — Taxes in the Leased Land are classified as follows: 
 I. House Tax. 
 II. Miscellaneous Tax. 
 
 " Article 2. — The classes and rates of the taxes are to be fixed by the Chief of the 
 Branch Office of the Railway Company and must be sanctioned by the President. In 
 case they are to be increased or changed this shall be done by the Chief of the Branch 
 Office in the same way. 
 
 " Article 3. — The house tax is to be levied according to the condition of persons resid- 
 ing in the settlements. 
 
 " Article 4. — The miscellaneous tax is levied on Geisha, prostitutes, waitresses, dancers, 
 female attendants in restaurants, jesters, carriages, jinrikishas, bicycles, carts, boats, music 
 halls, amusement halls (pool rooms, shooting galleries, etc.), theaters and butchers. If the 
 Chief of the Branch Office desires to levy the miscellaneous tax on any other occupations 
 or things besides those above mentioned he shall ask the permission of the President. 
 For the taxes on Geisha, prostitutes, waitresses, dancers, restaurant attendants and jesters 
 their employers shall be held responible. 
 
 " Article 5. — Taxes will be levied on persons staying in one settlement more than 
 three months according to the number of days that they have been there. 
 
 " Article 6. — Taxes shall be levied for each half-year and shall be collected four 
 times, viz.. on April 1st, July 1st, October 1st and January 1st, and if any person shall 
 establish his residence in the middle of a quarter taxes shall be levied on him proportion- 
 ately from the first of the month in which he arrived. IMonthly taxes "shall be levied 
 according to the condition of the tax payer at the beginning of the month.
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 565 
 
 " Any person becoming liable to taxation before the middle of the month shall be 
 required to pay the full amount for the month, and if after the middle of the month, half 
 of the full amount shall be levied. 
 
 " Per diem taxes shall be levied according to the number of days. If any person shall 
 become unexpectedly free from liability to taxation, or shall transfer his residence to 
 another place, the taxes already paid shall not be refunded. 
 
 " Article 7. — If the Chief of the Branch Office desires to fix any new tax rates he 
 must request the sanction of the President. 
 
 " Article 8. — Officials shall have the right to enter houses or private offices and inspect 
 books or other things whenever they consider it necessary for the purpose of taxation. 
 
 " Article 9. — In cases where special circumstances exist, the Chief of the Branch Office 
 may, with the sanction of the President, remit part or the whole of the tax. 
 
 "Article 10. — In the case of property or business held in joint ownership, the owners 
 or partners shall be held jointly and severally responsible for the taxes and other charges. 
 
 " Article 11. — Persons using or owning land or buildings in the railway settlement and 
 not residing themselves in the settlement must have a manager or appoint some person 
 who is qualified to deal with matters concerned with the payment of taxes, and who may 
 be held responsible for anything that may happen, and said person shall be a resident of 
 the settlement. 
 
 " Article 12. — Charges fixed by the Chief of the Branch Office must be sanctioned by 
 the President, and in case the rates are to be decreased or changed the same procedure 
 shall be followed. 
 
 " Article 13. — Persons neglecting to pay their taxes or charges on the date set by the 
 official concerned shall be dealt with in accordance with regulations to be specially issued. 
 
 " Article 14. — The Chief of the Branch Office may establish a public fund for the 
 residents in the settlement. This public fund shall be established, managed and liquidated 
 as the President may direct. 
 
 " Article IS. — The Chief of the Branch Office, may, with the sanction of the President, 
 make such regulations as he thinks necessary to enforce these regulations." 
 
 As to the establishment of an office of the Chinese maritime customs at Dairen (Dalny) ; 
 see the agreement of May 30, 1907 (No. 1907/6, post). 
 
 For translations of the Japanese ordinances, under date of July 31, 1906, relating 
 to the organization of the government-general of the Leased Territory of Kwantung, see 
 For. Rel., 1906, pp. 1051-9. The following are extracts from the translations there printed, 
 with Certain subsequent amendments : 
 
 Organization of the Government-General of Kwantung. 
 
 " Imperial Ordinance No. 196. 
 
 "Article 1. — In the Province of Kwantung there shall be established the Government- 
 General of Kwantung (Kwantung Totoku Fu). 
 
 " Article 2. — For the Government-General of Kwantung there shall be appointed a 
 Governor-General of Kwantung (Kwantung Totoku). 
 
 " The Governor-General shall govern the Province of Kwantung, and shall take charge 
 of the protection and supervision of the railway lines in South Manchuria. 
 
 " The (jovernor-General shall supervise the affairs of the South Manchuria Railway 
 Joint Stock Company. 
 
 "Article 3. — The Governor-General shall be of the shin nin [appointed directly by 
 the Emperor] rank and shall be a general or a lieutenant-general of the Imperial Army. 
 
 " Article 4. — The Governor-General shall command the troops under his jurisdiction 
 and shall have control of various political matters under the supervision of the Minister 
 for Foreign Affairs. 
 
 " Article 5. — By virtue of a special commission the Governor-General shall take charge 
 of the affairs to be negotiated with the Chinese provincial authorities. 
 
 " Article 6.— The Governor-General shall be subject to the Minister of War with ref- 
 erence to matters of military administration and the personal affairs of the soldiers and of 
 those connected with the Army; to the Chief of the General Staff with reference to plans 
 of operation and mobilization; to the Superintendent of Education in the Army with ref- 
 erence to military education. . • . • 
 
 " Article 7.— The Governor-General may, by virtue of the authority invested in him 
 ex officio or by special authorization, issue ordinances, including penal regulations for 
 imprisonment not exceeding one year or fine not exceeding two hundred (200) yen. 
 
 " Article 8.— For the maintenance of the public welfare and order, the Governor- 
 General may, on special occasions requiring urgent measures, issue ordinances including 
 penal regulations exceeding the limitations mentioned in the preceding Article. 
 
 " The ordinances mentioned in the preceding paragraph shall, immediately after their 
 promulgation, be reported to the Emperor, through the Minister for Foreign Affairs, for 
 the Imperial sanction.
 
 566 CHINA TREATIES AND AGREEMENTS 
 
 " In case the said ordinances should not be sanctioned by the Emperor, the Governor- 
 General shall immediately give public notice that they are not valid thereafter. 
 
 " Articxe 9. — The Governor-General shall take charge of the defence of the territory 
 within the limits of his jurisdiction. 
 
 " Article 10. — When the Governor-General deems it necessary for the maintenance of 
 the welfare and order of the territory under his jurisdiction, or for the protection or super- 
 vision of the railway lines, he may employ military force. 
 
 " In the case mentioned in the preceding paragraph, the fact shall be immediately 
 reported to the Minister for Foreign Affairs, the Minister of War and the Chief of the 
 General Staff. 
 
 "Article 11. — When the Governor-General discovers that any order or measure of 
 the Government offices under his jurisdiction is contrary to the prescribed regulations, or 
 is injurious to the public mterests, or has transgressed the authority vested in them, he 
 may suspend the said order or measure, or annul it. 
 
 " Article 12. — The Governor-General shall control the officials under his jurisdiction. 
 With reference to the promotion and dismissal of civil officials of the sonin [appointed by 
 the Cabinet and reported to the Emperor] rank, he shall report to the Emperor, through 
 the Minister for Foreign Affairs and the Prime Minister. With reference to the promotion 
 or dismissal of civil officials of the hannin [appointed by heads of departments] rank and 
 those lower, the Governor-General shall act entirely at his own discretion. 
 
 "Article 15. — [As amepded by Imperial Ordinance No. 2, January 10, 1908]. A Gov- 
 ernor-General's Secretariat shall be established in the Government-General of Kwantung, 
 
 " In the Governor-General's Secretariat there shall be established a section of Private 
 Secretaries, a Section of Documents and a Section of Foreign Affairs ; and their respective 
 functions shall be determined by the Governor-General. 
 
 " There shall be an Adjutant in the Governor-General's Secretariat to take charge of 
 confidential matters. 
 
 " The Adjutant shall be an army officer between the ranks of colonel and lieutenant. 
 
 " Article 16. — There shall be a Civil Administration Department and a Military Depart- 
 ment in the Government-General at Kwantung. 
 
 "The regulations for the Military Department shall be determined separately. 
 
 " Article 17. — The Civil Administration Department shall take charge of all admin- 
 istrative affairs except those pertaining to military administration. 
 
 " Article 18. — The following four bureaus and one office shall be established in the 
 Civil Administration Department and their respective functions shall be determined by 
 the Governor-General : 
 
 " Bureau of Miscellaneous Affairs, 
 
 " Bureau of Police, 
 
 " Bureau of Financial Affairs, 
 
 " Prison Office. 
 
 ****** *** 
 
 " Article 20. — Branches of the Civil Administration Office and of the Prison Office 
 shall be established in important places in order to divide the duties of the Civil Admin- 
 istration and Prison Offices. Their location, names and jurisdiction shall be determined 
 by the Governor-General. 
 
 " Article 21. — [As amended by Imperial Ordinance No. 2, January 10, 1908.] The 
 Government-General of Kwantung shall have the following personnel : 
 
 " Chief Civil Administrator, chokunin rank 1 
 
 " Director of Foreign Affairs, chokunin or sonin rank 1 
 
 "Director of Police Affairs, chokunin or sonin rank 1 
 
 " Councillors, soiim rank 2 
 
 " Secretaries, sonin rank 6 
 
 " Chiefs of the Civil Administration Offices, sonin rank 3 
 
 " Private Secretary, sonin rank 1 
 
 " Experts, sonin rank 18 
 
 " Police Inspectors, sonin rank 6 
 
 " Governor of Prisons, sonin rank 1 
 
 " Translators, sonin rank 3 
 
 "Clerks 
 
 " Police Sergeants ... 
 " Assistant Experts . . 
 
 " Jailers 
 
 " Prison Physicians . . 
 " Student Translators 
 
 220 hannin rank
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 567 
 
 " Consular officials stationed in South Manchuria may, in addition to their regular posi- 
 tions, be appointed as Secretaries (of the Government-General). 
 
 " Article 22. — The Chief Civil Administrator shall assist the Governor-General and 
 have control of the affairs of the Civil Administration Department. 
 
 " The Director of Foreign Affairs shall, as the Chief of the Section of Foreign Affairs 
 in the Governor-General's Secretariat, take charge of Foreign Affairs under the instructions 
 of the Governor-General. 
 
 " The Director of Pohce Affairs shall, as the Chief of the Section of Police Affairs 
 in the Civil Administration Department, take charge of police affairs under the instructions 
 of his superiors. 
 
 ****** **:^ 
 
 " Article 24.— [As amended by Imperial Ordinance No. 2, January 10, 1908.] The 
 secretaries shall be either the chiefs of the bureaus or members of the same, and shall 
 take charge of matters under the instructions of their superiors. 
 
 " Those consular officials who hold additional positions as secretaries (of the Govern- 
 ment-General) shall take charge of police affairs along the railway lines under the instruc- 
 tions of their superiors. 
 
 " Article 25. — The Chiefs of the Civil Administration Offices shall, under the direc- 
 tion and control of the Governor-General, enforce laws and ordinances, and control the 
 administrative affairs within their respective districts. 
 
 " Article 26. — With reference to the administrative affairs within their respective dis- 
 tricts, the Chiefs of the Civil Administration Offices may, by virtue of the authority vested 
 in them ex officio or by special authorization, issue ordinances applying to the whole or a 
 part of their districts, including penal regulations, imposing fines not exceedng ten (10) 
 yen and detention. 
 
 " Article 27. — When military force is needed for maintaining tranquillity within their 
 respective districts, the Chiefs of the Civil Administration Offices shall report the fact to 
 the Governor-General. But for extraordinary emergencies they may immediately demand 
 the dispatch of troops from the commanders of neighboring garrisons. 
 
 **^;f:^:^ **;f; 
 
 " Article 31. — The Experts shall take charge of technical arts under the instructions 
 of their superiors. 
 
 [Articles 32-43 omitted.] 
 
 "Supplementary Article. — This Ordinance shall take effect on September 1, 1906." 
 
 Organization of the Post and Telegraph Office of the Government-General of 
 
 Kwantung. 
 
 Imperial Ordinance No. 197. 
 
 " Article 1. — The Post and Telegraph Office of the Government-General of Kwantung 
 shall belong to the Civil Administration Department of the Government of Kwantung, and 
 shall take charge of affairs relating to posts, telegraphs, and telephones. 
 
 " Article 2. — The Post and Telegraph Office shall have the following personnel : 
 
 " Chief 1 
 
 " Secretaries of Communications, sontn rank 3 
 
 " Assistant Secretaries, sonin rank 18 
 
 " Experts (operators, engineers, &c), sonin rank 4 
 
 " Clerks of Communications 1 
 
 " Assistant Experts 1^506 hannin rank 
 
 " Assistant Clerks J 
 
 " Article 3. — The Chief of the Post and Telegraph Office shall be a Secretary, and 
 he shall control the affairs of the office under the instructions of his superiors. 
 
 ****** **♦ 
 
 " Article 9. — Branches of the Post and Telegraph Office shall be established in impor- 
 tant places in order to take charge of a portion of the affairs of the Post and Telegraph 
 Office. 
 
 " The location, names, and jurisdiction of the branch offices shall be determined by 
 the Governor-General of Kwantung. 
 
 " Article 10.— The Chiefs of the branch offices shall be officials of higher rank 
 (kotokan) or of hannin rank. [Kotokan includes both chokunin and sonin officials, but 
 in this case those of sonin rank only are meant.] 
 
 " Supplementary Article.— This Ordinance shall take effect on September 1, 1906."
 
 568 CHINA TREATIES AND AGREEMENTS 
 
 Regulations relating to the Military Department of the Government-General of 
 
 Kwantung. 
 
 " Imperial Ordinance No. 204. 
 
 " Article 1. — The Military Department of the Government-General of Kwantung shall 
 take charge of all military affairs within the jurisdiction of the Governor-General of 
 Kwantung. 
 
 " Article 2. — The Military Department of the Government-General of Kwantung shall 
 be composed of the following sections: 
 
 ''le^lionjf idjutants, [^hese two sections constitute the ' Bakuryo,' 
 
 " Section of Judges, 
 
 " Section of Administration, 
 
 " Section of Army Surgeons, 
 
 " Section of Veterinary Surgeons. 
 
 " Article 3. — The Chief of Staff shall assist the Governor-General of Kwantung, par- 
 ticipate in important military affairs, supervise the promulgation and enforcement of orders, 
 and take charge of the supervision of all affairs in the Alilitary Department of the Gov- 
 ernment-General of Kwantung. 
 
 " Article 4. — The officers and those ranking as such in the Sections of Staffs and 
 Adjutants (Bakuryo) shall, under the direction of the Chief of Staff, take charge of the 
 affairs assigned to them. 
 
 " Article 5. — The Chief Judge shall be subject to the Governor-General of Kwantung 
 and shall take charge of judicial affairs in the army. 
 
 "Article 6. — The Chief of the Section of Administration shall be subject to the 
 Governor-General of Kwantung and shall supervise the finances and administration of the 
 various detachments stationed in the Province of Kwantung. He shall control matters 
 relating to constructions on land for the army (except national defences and railway), as 
 well as the personal affairs and education of the officers and those under them in the 
 Section of Administration. He shall take special charge of the barracks and other new 
 temporary work. However, with reference to the supervision of the financial affairs and 
 the plans of constructions on land, he shall be directly subject to the Minister of War. 
 With reference to the personal affairs and education of the officers and those under them 
 in the Section of Administration, he shall be subject to the Chief of the Bureau of Admin- 
 istration in the Department of War. 
 
 " The Chief of the Section of Administration shall control the finances and admin- 
 istration of the detachments not governed by the Section of Administration in the respective 
 army divisions; but according to the location of the detachments stationed in the Province,, 
 these matters may be referred to the Section of Administration in the army divisions. 
 
 " Article 7. — The Chief of the Section of Army Surgeons shall be subject to the 
 Governor-General of Kwantung and shall supervise the sanitary affairs of the detach- 
 ments stationed in the Province. He shall also control the personal affairs and education 
 of the officers and those under them in the Section of Sanitation, as well as matters relat- 
 ing to sanitary materials. However, he shall also be subject to the Chief of the Bureau 
 of Medical Affairs in the Department of War. 
 
 " Article 8. — The Chief of the Section of Veterinary Surgeons shall be subject to the 
 Governor-General of Kwantung and shall supervise sanitary affairs relating to military 
 horses. He shall control the personal affairs and education of the officers and those imder 
 them in the Section of Veterinary Surgeons, as well as matters relating to veterinary sur- 
 geons' materials and farriery. However, he shall also be subject to the Chief of the 
 Bureau of Military Affairs in the Department of War. 
 
 '' Article 9. — Matters to be reported to the Governor-General by the various Chiefs of 
 Sections shall first be submitted to the Chief of Staff for approval. 
 
 " Article 10.-— The members of the Sections of Judges, Administration, Army Sur- 
 geons and Veterinary Surgeons, shall engage in the work assigned to them under the 
 instructions of their respective chiefs. 
 
 " Article 11. — The non-commissioned officers and civil officials of the hannin rank 
 shall engage in their work under the instructions of their superiors. 
 
 "Supplementary Article. — This Ordinance shall take effect September 1, 1906." 
 
 Imperial Ordinance No. 5. of January 10, 1908, provided that " The Police Officials of 
 the Government-General of Kwantung may, in addition to their regular positions, be 
 appointed as Police Officials attached to the Imperial Consulates in South Manchuria." 
 
 The following Japanese ordinances of July 31, 1917, also concern the organization of the 
 Government-General of the leased territory:
 
 NUMBER 1905/18 : DECEMBER 22, 1905 : NOTES 569 
 
 Organization of the Foreign Office. 
 
 " (Imperial Ordinance No. 76, of July 31, 1917). 
 
 " [Translation]. 
 
 " The following revision is made in the organization of the Foreign Office : — 
 "In Article 1, Paragraph 2 shall be revised as follows: — 
 
 The Minister for Foreign Affairs shall direct and supervise the Governor-General 
 
 of Kwantung Province in matters respecting diplomacy. 
 " In Article 5, ' And the business pertaining to Kwantung Province ' shall be sup- 
 pressed. 
 
 "Supplementary Rule. — This Ordinance shall be effective from the date of its promul- 
 gation." 
 
 Organization of the Kwantung Government-General. 
 
 " (Imperial Ordinance No. 82, of July 31, 1917). 
 
 " [Translation]. 
 
 "The following revision is made in the Organization of the Kwantung Government- 
 General : — 
 
 [Several items of minor importance have not been translated]. 
 
 "Article 2. — The Governor-General shall exercise jurisdiction over Kwantung Prov- 
 ince and shall have control of the protection and supervision of the railway lines in South 
 Manchuria, and shall have charge of the operation of the South Manchuria Railway 
 Company. 
 
 " Article 4. — The Governor General shall have command of the army under his juris- 
 diction and shall control all political affairs under the supervision of the Minister President 
 of the Cabinet : provided, however, that in matters respecting diplomacy he shall be under 
 the supervision of the Minister for Foreign Affairs. 
 
 "Supplementary Rule. — This Ordinance shall be effective from the date of its promul- 
 gation." 
 
 Appointment of Consular Officers in Manchuria. 
 
 " (Imperial Ordinance No. 88, of July 31, 1917). 
 
 " [Translation]. 
 
 " Consuls and Vice Consuls stationed in Manchuria shall be appointed from persons 
 who have been employed for two years or more in the office of the high civil administrator, 
 or from learned and experienced men who have been engaged in business in Alanchuria 
 for five years or more and are approved by the Examining Board for the Diplomatic and 
 Consular Service. 
 
 " Clerks at Consulates in Manchuria may be appointed from persons who have been 
 officers of the Hannin grade for two years or more in the offices of the Kwantung Gov- 
 ernment-General, or from persons of sufficient education who have been in the service of 
 the South Manchuria Railway as clerks for three years or more and have been approved 
 by the Examining Board for the Ordinary Civil Service. 
 
 "Supplementary Rule. — This Ordinance shall be effective from the date of its promul- 
 gation." 
 
 Further changes in the organization of the government of the Kwantung Leased 
 Territory were promulgated by an Imperial Ordinance of April 12th, 1919, thus translated 
 from the Official Gazette of that date : 
 
 Organization of the Government of Kwantung. 
 " (Imperial Ordinance No. 94, April 12, 1919.) 
 
 " 1. — The Kwantung Government shall be established in Kwantung Province. 
 
 "2. — The Kwantung Government shall have a governor (Chokan). 
 
 " The Governor of Kwantung shall have jurisdiction over Kwantung Province, and 
 shall exercise control over the policing of the railway lines in South Manchuria. 
 
 " The Governor of Kwantung shall supervise the business of the South Manchurian 
 Railway Company. 
 
 " 3. — The Governor of Kwantung shall be of the Shinnin rank.
 
 570 CHINA TREATIES AND AGREEMENTS 
 
 " When a military officer is appointed as Governor of Kwantung he shall assume, in 
 addition, the command of the Kwantung army. 
 
 " 4. — The Governor of Kwantung shall carry on administrative business under the 
 supervision of the Prime Minister; but with reference to international affairs he shall be 
 under the supervision of the Foreign Minister. 
 
 " 5. — The Governor of Kwantung may in accordance with his administrative powers 
 or with special delegation of authority issue orders, the infringement of which may be 
 punished by him with imprisonment not to exceed one year or with a fine not to exceed 
 one hundred yen. 
 
 " 5, — In case urgent measures are necessary for the preservation of peace and order, 
 the Governor of Kwantung may issue orders attaching penalties exceeding the limitations 
 of the foregoing article. 
 
 "Orders which have been issued in accordance with the provisions of the foregoing 
 paragraph shall be submitted for Imperial sanction immediately through the Prime Min- 
 ister. If Imperial sanction is not obtained the Governor of Kwantung shall immediately 
 give notice that the orders are in future invalid. 
 
 " 7. — When the Governor of Kwantung deems it necessary for the preservation of peace 
 and order within the districts under his jurisdiction or for the protection of the railway 
 lines, he may request the Commander of the Kwantung army for the use of military forces. 
 
 " 8_ — When the Governor of Kwantung deems that an order issued or a measure 
 adopted by an office under his jurisdiction is contrary to the rules, injurious to public 
 welfare or exceeds official authority, he may suspend or cancel the order or measure. 
 
 " 9. — The Governor of Kwantung shall assume control over all officials under_ his 
 jurisdiction ; the appointment or dismissal of officials of the Sonin rank shall be submitted 
 through the Prime Minister for Imperial sanction, and the appointment or dismissal of 
 officials of the Hannin rank shall be effected at his own discretion. 
 
 " 10. — The Governor of Kwantung shall submit through the Prime Minister for Im- 
 perial sanction the decoration of officials under him. 
 
 " 11. — The Governor of Kwantung shall be empowered to discipline the officials under 
 him. He shall submit through the Prime Minister for Imperial sanction the dismissal of 
 Chokiiiiin and Sonin officials. 
 
 " 12. — There shall be established in the Kwantung Government a Governor's Secretariat 
 and sections of civil and foreign affairs. The Governor shall determine the apportioning 
 of work in the Governor's Secretariat and the sections of civil and foreign affairs. 
 
 " 13. — The Kwantung Government shall be divided into two districts in each of which 
 an office of civil affairs shall be established. The Governor of Kwantung shall determine 
 their location, names and boundaries of jurisdiction. 
 
 " 14. — Branch civil offices shall be established at important points in order to dis- 
 tribute the work of civil offices. The Governor of Kwantung shall determine their location, 
 names and boundaries of jurisdiction. 
 
 " 15. — In the Government of Kwantung the following officials shall be appointed : 
 
 Chief Secretary Chokunin rank- 
 
 Chief of Section of Civil Affairs 
 
 " Foreign Affairs 
 
 One Councillor _ Sonin rank. 
 
 Seven Secretaries (one of whom may be of the Chokunin rank) 
 
 Police Officer, one 
 
 Private Secretary, one 
 
 Educational Officer, one 
 
 Nine Engineers 
 
 Nine Police officers 
 
 Two translators 
 
 Clerks 
 
 School officers 
 
 Police officers 
 
 Engineers' assistants 
 
 Translators' assistants 
 
 Police assistants 99 " 
 
 " The position of Chief of the Section of Civil Affairs, Chief Secretary, and Chief of 
 the Section of Foreign Affairs shall be filled by the Consul General at Mukden. 
 
 " The positions of secretaries may be filled as additional posts by consuls in South 
 Manchuria. 
 
 " The Government of Kwantung shall have an adviser for communications. This posi- 
 tion shall be filled by the President of the South Manchuria Railway Company." 
 
 [The remaining 24 articles deal with the duties of these various officials.] 
 
 " Supploncniary Rides. — This ordinance shall be effective from the date of its pro- 
 mulgation. 
 
 " The Organization of the Kwantung Government General is hereby abolished." 
 
 >173 Hannin rank
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 571 
 
 [The remaining supplementary rules provide for the appointment of secretaries and 
 other officials of the former Kwantung Government General in the new organizations, the 
 substitutions of the new terms for the old, etc.] 
 
 The following regulations for the control of foreign residents in Kwantung were issued 
 by the Governor-General under date of September 1, 1906: 
 
 Regulations for Control of Residents in Kwantung, September i, 1906. 
 
 " Articxe 1. — The term ' Residents ' in the present Regulations signifies persons who 
 visit or reside in Kwantung. 
 
 " Article 2. — Any person who establishes his residence in Kwantung shall report the 
 fact, within five days, to the Civil Administration Office or the Branch Office concerned, 
 stating his name, domicile (or nationality in the case of a foreigner), status, calling, age', 
 and whether he is the head or a member, inmate or employee,^ of a family, as well as the 
 locality_ of his residence. A similar notice shall be given when any person has changed 
 his residence. 
 
 "The aforesaid notice shall be made in the case of a member or inmate of a family 
 by the head of that family or household and in the case of an employee by his employer. 
 
 " Article 3.— Foreigners (excepting Chinese) shall be permitted until further notice 
 to reside and lease or own real property only within the town limits of Tairen and Port 
 Arthur. 
 
 " Article 4. — When a birth or death or change in residence, or other matters relating 
 to family registration or in matters whereof notice is required to be made occurs in the 
 family or household of a resident, notice shall be given within five days to the Civil 
 Administration Office or its Branch Office concerned by the head or a member of such 
 family or household. 
 
 "Article 5. — If any resident is deemed likely to injure public tranquility or morals, 
 the Chief of the Civil Administration Office concerned may prohibit his residence within 
 the jurisdiction limits of the Government of Kwantung for a period of more than one 
 year and not exceeding three years. 
 
 " Article 6. — Any person who has been prohibited residence in Kwantung shall within 
 five days, leave the jurisdiction limits of the Government of Kwantung. If, however, 
 proper reason is found to exist for his inability to leave within the prescribed period the 
 Chief of the Administration Office concerned may grant him temporary suspension of the 
 prohibition, receiving or not receiving from him a reasonable money security. 
 
 "Article 7. — If any person to whom temporary suspension has been granted as in 
 the preceding Article again behaves, within the prescribed period, in such a manner as to 
 fall under Art. 5, the suspension granted shall be cancelled and the security confiscated. 
 
 " Article 8. — If any person who has been prohibited residence in Kwantung, is found 
 to have remarkably improved in his conduct, the Chief of the Civil Administration Office 
 concerned may at any time cancel his prohibition. 
 
 "Article 9. — If any person who has been prohibited residence in Kwantung has any 
 objection to the prohibition, he may, within three days from the day on which he was so 
 prohibited, apply to the Governor-General through the Chief of the Civil Administration 
 Office concerned for a countermand of the prohibition. 
 
 " Even in such case the execution of the order of prohibition shall not be suspended. 
 
 " Article 10. — Any person who violates Art. 2 or Art. 4 shall be liable to a fine not 
 exceeding thirty yen or to detention or a police fine. 
 
 "Article 11. — If any person does not leave within the period prescribed for his leaving 
 or within the term of temporary suspension granted him or returns before the prescribed 
 period of prohibition expires, he shall be liable to imprisonment not exceeding six months 
 or to a fine not exceeding two hundred yen. 
 
 " Article 12. — Necessary rules besides the provisions of the present Regulations shall be 
 established by the Chief of the Civil Administration Office. 
 
 "Supplementary Rules. — In regard to the residence and travel of Russian subjects, 
 rules hitherto obtaining shall remain in force for the time being. 
 
 " The present Regulations shall take effect from the date of publication. 
 
 " The Regulations for the control of vessels sailing to and from Tairen Wan and of 
 residents in Kwantung, Military Ordinance issued on the 7th September, 1905, and the 
 Detailed Rules for the Operation of those Regulations, Ordinance No. 1 of the Civil 
 Administration Office of Kwantung, are hereby rescinded. 
 
 " Kwantung Government-General, 
 
 "Port Arthur, September 1st, 1906 (39th year Meiji, 9th month, 1st day). 
 
 " (Sgd.) Baron Yoshim.xr.a Oshim.4, 
 
 Governor General." 
 
 Further regulations controlling foreigners were established by Government Order No. 
 16,' March 20, 1918, as follows :
 
 572 CHINA TREATIES AND AGREEMENTS 
 
 Regulations controlling Foreigners in Kwantung, March 20, 1918. 
 
 " Article I. — Foreigners who are considered to come under one of the following classi- 
 fications may be excluded or deported from the Kwantung Leased Territory or the South 
 Manchuria Railway settlements, by the chief of the civil administration, chief of the 
 branch civil administration, or chief of the police station concerned: 
 
 " 1. One who has no passport, or nationality certificate. 
 
 "2. One who acts against the mterest of the empire, or who may be suspected of acting 
 for the enemy. 
 
 " 3. One who is likely to disturb the public peace or to deprave public morals. 
 
 " 4. Paupers and professional beggars. 
 
 " 5. Persons suffering from contagious diseases or other diseases of dangerous nature 
 for public health. 
 
 " 6. Imbeciles, feeble-minded persons, indigent persons, or who are likely to become 
 a public burden. 
 
 " The passport or nationality certificate mentioned in classification 1 of the above 
 paragraph must have been issued by the authorities of the bearer's country; must have a 
 photograph of the bearer attached, and must have been visaed by an Ambassador, Min- 
 ister, or consular officer of the Empire in that country. 
 
 "Article II. — The requirements of classification 1 of the first paragraph of Article I 
 shall not be enforced against the subject or citizen of a country which does not require 
 passports of subjects of the Empire. 
 
 "Article III. — Subjects of enemy countries are not allowed to enter or reside in the 
 Kwantung Leased Territory or the South Manchuria Railway settlements ; but this will 
 not be applied to those who were allowed to do so by one of the officers mentioned in the 
 first paragraph of Article I. 
 
 " Article IV. — A foreigner shall exhibit his passport, nationality certificate or permit to 
 the police authorities upon their request, and must make a true statement in reply to their 
 inquiries regarding classification as found in the first paragraph of Article I, and other neces- 
 sary matters. 
 
 " Article V. — A person who contravenes the last Article, or unlawfully received or 
 attempted to receive a permit, may be forbidden to enter or be deported from the Kwantung 
 Leased Territory or the South Manchuria Railway settlements by the chief of the civil 
 administration, chief of the branch civil administration, or chief of the police station con- 
 cerned. 
 
 " Article VI. — These regulations shall not be applied to an ambassador, minister, their 
 suites, consular officers and staff, and their families, nor to those who are on official business 
 of the treaty Powers. 
 
 " Nor shall they apply to the crew of ships of the treaty Powers entering the ports of 
 the Kwantung Leased Territory. 
 
 Supplementary. 
 
 " Article VII. — These regulations shall be enforced from the date of publication. 
 
 " Article VIII. — A person who is on his way to the Kwantung Leased Territory or 
 the South Manchuria Railway settlements, and who cannot get a passport or nationality 
 certificate, or its visa prescribed in Article I, shall not have classification 1, paragraph 1, 
 of Article I applied to him." 
 
 Regulations relative to vessels sailing to and from the port of Tairen were also issued 
 by the Governor-General on September 1, 1906, as follows : 
 
 Regulations relating to Vessels sailing to and from Tairen, September i, 1906. 
 
 " Art. I. — Vessels are not permitted to sail to and from any port with the exception of 
 the Port of Tairen. This does not apply to Chinese junks and steamers and sailing vessels 
 navigating along the coast of Kwantung. 
 
 " Art. II. — Vessels shall embark or land their passengers and crew, and load or dis- 
 charge their cargo at places designated by the Chief of the Civil Administration Office 
 concerned. 
 
 " Art. III. — The master of a ship shall immediately on her entrance to a port, report 
 the fact, to the Civil Administration Office, its Branch Office, or Police Authorities concerned, 
 setting forth the following details : 
 
 " 1. Kind of ship. 
 
 " 2. Ship's name and signal code. 
 
 " 3. Owner's name. 
 
 " 4. Port of Registry. 
 
 "5. Gross and registered tonnage or number of koku. 
 
 "6. Fore and aft draft. 
 
 "7. Names of the crew.
 
 NUMBER 1905/18: DECEMBER 22, 1905: NOTES 573 
 
 "8. Description, quantity and value of the goods and the place where they were 
 freighted. 
 
 "9. Passenger's name, domicile, residence, status, calling and age. 
 
 " 10. Ports of departure and call and dates thereof. 
 
 "11. Sail time and destination. 
 
 " 12. Accidents during the voyage. 
 
 " Art. IV.— Vessels entering the Port of Tairen shall not communicate with other ves- 
 sels or land their passengers, crew or cargo before they have undergone health examination. 
 
 "Art. V. — If a vessel entering a port has had any case of contagious disease on board 
 during the voyage, or departed from or arrived via places affected with such disease, or has 
 any person on board who had communicated with any vessel so infected, she shall hoist 
 a quarantine signal before her entrance to the port (in the case of the Port of Tairen, 
 anchoring beyond IVz nautical miles from shore) and await directions of the Authorities 
 concerned. 
 
 " The quarantine signal shall be a yellow flag hoisted at the fore of a vessel in the 
 daytime and at night a red and a white light displayed together. 
 
 "Art VI. — If a case of any contagious disease occurs on board a ship in port she 
 shall hoist the quarantine signal, and report the fact to the quarantine or Police Authorities, 
 and until the completion of quarantine or disinfection, she shall not be permitted to leave the 
 port, to communicate with another vessel or to land her passengers or cargo. 
 
 "Art. VII. — If cases provided for in the two preceding Articles occur at a port with- 
 out a quarantine station, the vessel shall, when ordered by the police authorities, immedi- 
 ately proceed to a port having such a station, to be put under quarantine. 
 
 " Art VIII. — The provisions of the three preceding Articles do not apply to military 
 hospital ships. 
 
 " Art. IX. — Each vessel at anchor in a port shall fly her national flag in the daytime 
 and at night shall display lights in accordance with the Law for Preventing Collisions at Sea. 
 
 " Art. X. — The master of a ship shall, 5 hours before her departure, report to the Civil 
 Administration Office, its Branch Office, or Police Authorities concerned, the fact, setting 
 forth the following details : — 
 
 " 1. Day and hour of departure. 
 
 " 2. Kind of vessel. 
 
 " 3. Ship's name. 
 
 " 4. Description, quantity, value and place of entry of the cargo. 
 
 " 5. Each passenger's name, domicile, residence, status, calling and age. 
 
 " 6. Ports of destination and call and expected dates of arrival and call. 
 
 " Art. XI. — The Chief of the Civil Administration Office concerned may, when he 
 deems it necessary, cause proper officers to inspect vessels or order suspension of the 
 embarkation and landing of their passengers and crews, or the loading and discharging of 
 their cargoes. 
 
 " Art. XII. — Any person violating any one of Arts. IV., V., VI., and VII. shall be 
 liable to a fine not exceeding one hundred yen. 
 
 " Any person violating Arts. III., IX., or X. or refusing inspection, or disobeying the 
 orders provided in Art. XI. shall be liable to a fine not exceeding fifty yeJi. 
 
 " Art. XIII. — Necessary rules not provided for in the present Regulations shall be 
 established by the Chief of the Civil Administration Office. 
 
 "Supplementary Rules. — In regard to the sailing of Russian vessels, rules hitherto 
 obtaining shall remain in force for the time being. 
 
 " The present regulations shall take effect from the date of publication. 
 
 " (Sgd) Baron Yoshimas.a Oshima, 
 
 Governor-General. 
 " Kwantung Government-General. 
 "Port Arthur, September 1, 1906 (39th year Meiji, 9th month, 1st day)." 
 
 An ordinance regulating the opening of Port Arthur was issued on July 1, 1910, as 
 follows : 
 
 Ordinance regulating Opening of Port Arthur, July i, igio. 
 
 " Art. I. — Japanese and foreign ships and warships may enter West Harbor of Port 
 Arthur provided they observe the Port Arthur Harbor Regulations. 
 
 " Art. II. — The Governor-General of Kwantung may make necessary provisions and 
 dispositions, provided they do not conflict with the provisions of the law respecting the 
 defence work zone of Kwantung Province and the Port Arthur Harbor Regulations, within 
 the limits of Port Arthur : with regard to matters, however, specially designated by the 
 Minister President, he must previously consult with the Commander-in-Chief of the Port 
 Arthur Naval Station. 
 
 "Additional Article. — The present Ordinance shall come into force on the day of its 
 promulgation."
 
 574 CHINA TREATIES AND AGREEMENTS 
 
 Note 2. 
 Arrangement for Conveyance of Chinese Government Stores by Antung-Mukden 
 
 Railway, October 30, igii. 
 
 " Arrangements have been made between the Chinese Government and the So Jth Man- 
 churia Railway Company for the conveyance of Chinese Government stores, etc., over the 
 Antung-Mukden Line at a reduced scale of charges. 
 
 " 1. Charges for carrying Chinese military stores, materials and machinery will be agreed 
 upon at the time of conveyance. 
 
 "2. Half charges will be levied for the conveyance of arms, ammunition, horses and 
 uniforms. 
 
 "3. Half charges will be levied for the conveyance of Chinese convicts and their 
 accompanying guards. 
 
 "4. Bona fide students will be carried at half rates. 
 
 " 5. The charges for transporting Chinese Government laborers will be decided upon 
 at the time of transportation. 
 
 " 6. Goods for public benefit and foodstuffs for the relief of famine-stricken districts 
 will be conveyed free of charge. 
 
 " The Chinese text of the above agreement is to be considered as the ruling text. 
 
 " Signed on October 30, 1911, by His Excellency, Hsij T'ing Lin, Commissioner for 
 Foreign Affairs, Mukden, and Yuan Hui Ho, Secretary of the Board of Posts and Com- 
 munications, for the Chinese; and Mr. C. Koike, Consul General for Japan, [and?] 
 the Vice-President and Manager of the South Manchuria Raihvay Company, for the 
 Japanese." 
 
 NUMBER 1906/1. 
 
 GERMANY AND GREAT BRITAIN. 
 
 Exchange of notes respecting the reciprocal protection of trade-marks in 
 
 China* — March 26, ipo6. 
 
 (1). — Sir Edward Grey to Count Metternich. 
 
 Foreign Office, March 23, 1906. 
 Your Excellency, 
 
 With reference to our recent conversations respecting the mutual protec- 
 tion of British and German trade-marks in China, I have the honour to state 
 that under the Order in Council of the 2nd February, 1899,1 it is open to a German 
 whose trade-mark has been infringed by a British subject in China to take pro- 
 ceedings against the latter in the British Court, provided — 
 
 1. That the consent in writing of His Majesty's Minister or Charge d'Affaires 
 be obtained to the prosecution ; but 
 
 2. Such consent may be withheld unless His Majesty's Minister or Charge 
 d'Affaires is satisfied that effectual provision exists for the punishment in the 
 German Consular Court of German subjects infringing British trade-marks. 
 
 I have the honour to inform your Excellency that it is not open to doubt that 
 in practice the consent of the British Minister would be given in any and every 
 case where full reciprocity could be and was granted by Germany. 
 
 * Text (and translation) as printed in Hertslet, p. 616. 
 
 t For the relevant articles of the Order in Council of February 11, 1907, replacing the 
 provisions of the Order in Council here cited, see note to the Anglo-American arrangement 
 concerning trade-marks in China (No. 1905/4, ante).
 
 NUMBER 1906/1 : MARCH 26, 1906 575 
 
 His Majesty's Representative at Peking will be instructed accordingly, as 
 soon as the German Government inform His Majesty's Government that it is 
 open to British subjects to take proceedings before the German Consular Courts 
 in China against persons subject to German Consular jurisdiction who infringe 
 trade-marks duly registered in Germany, and that the German Consuls in China 
 have received instructions in that sense. 
 
 I have, &c., 
 
 Edward Grey. 
 
 (2). — Count Metternich to Sir Edward Grey. 
 
 [Translation.] 
 
 German Embassy, London, March 26, 1906. 
 Your Excellency, 
 
 I have the honour to acknowledge the receipt of your Excellency's note of 
 the 23rd instant, in which you state that it is open to a German subject in China 
 to take proceedings in the competent British Consular Court against a British 
 subject for infringement of his trade-marks, provided that the British diplomatic 
 Representative in Peking gives his consent thereto in writing. This consent 
 will, according to the contents of your Excellency's note above mentioned, be 
 accorded without doubt in every case, provided that reciprocity is given. 
 
 In reply to your Excellency's note I am directed by my Government to 
 state that the Imperial German Law for the protection of trade-marks of the 
 12th May, 1894 (" Reichsgesetzblatt," p. 441), is in force in the districts where 
 there are German Consular Courts [§ 19 of the German Law on Consular Juris- 
 diction of the 7th April, 1900 (" Reichsgesetzblatt," p. 213)], and that, moreover, 
 the German Consular Judges in China are authorized to take legal proceedings 
 against persons subject to their jurisdiction who make unauthorized use of a 
 trade-mark duly registered in Germany in favour of a British subject. 
 
 The German Consuls in China will be furnished with instructions in ac- 
 cordance with the foregoing. 
 
 I have, &c., 
 
 P. Metternich.
 
 576 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1906/2. 
 
 GREAT BRITAIN AND CHINA. 
 
 Convention respecting Tibet (to zvhich is annexed the convention between the 
 United Kingdom and Tibet, signed at Lhasa, September y, 1^04).* — April 
 27, 1906. 
 
 Whereas His Majesty the King of Great Britain and Ireland and of the 
 British Dominions beyond the Seas, Emperor of India, and His Majesty the 
 Emperor of China are sincerely desirous to maintain and perpetuate the rela- 
 tions of friendship and good understanding which now exist between their re- 
 spective Empires; 
 
 And whereas the refusal of Tibet to recognise the validity of or to carry 
 into full effect the provisions of the Anglo-Chinese Convention of March 17 
 1890 t and Regulations of December 5th 1893 % placed the British Government 
 under the necessity of taking steps to secure their rights and interests under the 
 said Convention and Regulations ; 
 
 And whereas a Convention of ten articles was signed at Lhasa on Sep- 
 tember 7th 1904 on behalf of Great Britain and Tibet, and was ratified by the 
 Viceroy and Governor-General of India on behalf of Great Britain on November 
 11th, 1904, a declaration on behalf of Great Britain modifying its terms under 
 certain conditions being appended thereto; 
 
 His Britannic Majesty and His Majesty the Emperor of China have resolved 
 to conclude a Convention on this subject and have for this purpose named Pleni- 
 potentiaries, that is to say: — 
 
 His Majesty the King of Great Britain and Ireland: 
 
 Sir Ernest Mason Satow, Knight Grand Cross of the Most Distinguished 
 Order of Saint Michael and Saint George, His said Majesty's Envoy 
 Extraordinary and Minister Plenipotentiary to His Majesty the Emperor 
 of China ; 
 
 and His Majesty the Emperor of China: 
 
 His Excellency Tong Shoa-yi, His said Majesty's High Commissioner 
 
 Plenipotentiary and a Vice-President of the Board of Foreign Affairs ; 
 
 who having communicated to each other their respective full powers and finding 
 
 them to be in good and true form have agreed upon and concluded the following 
 
 Convention in six articles : — 
 
 Article I. — The Convention concluded on September 7th 1904 by Great 
 Britain and Tibet, the texts of which in English and Chinese are attached to the 
 
 * Text as printed in British Tr-eaty Series, 1906, No. 9. Printed also in Customs, Vol. I, 
 p. 652; Hertslet, 202. 
 
 In connection with this convention see also the convention between Great Britain and 
 Russia, August 31, 1907 (No. 1907/16, post). 
 
 See also Note 1 to this document, post, p. 581. 
 
 t For this Convention, see Hertslet, p. 92. 
 
 t For these Regulations, see ibid., p. 96.
 
 NUMBER 1906/2: APRIL 21, 1906 5/7 
 
 present Convention as an annexe, is hereby confirmed, subject to the modifica- 
 tion stated in the declaration appended thereto, and both of the High Contracting 
 Parties engage to take at all times such steps as may be necessary to secure the 
 due fulfilment of the terms specified therein. 
 
 Article II. — The Government of Great Britain engages not to annex 
 Tibetan territory or to interfere in the administration of Tibet. The Government 
 of China also undertakes not to permit any other foreign State to interfere with 
 the territory or internal administration of Tibet. 
 
 Article III. — The concessions which are mentioned in Article 9 (c?) of the 
 Convention concluded on September 7th 1904 by Great Britain and Tibet are 
 denied to any state or to the subject of any state other than China, but it has 
 been arranged with China that at the trade marts specified in Article 2 of the 
 aforesaid Convention Great Britain shall be entitled to lay down telegraph lines 
 connecting with India. 
 
 Article IV. — The provisions of the Anglo-Chinese Convention of 1890 and 
 Regulations of 1893 shall, subject to the terms of this present Convention and 
 annexe thereto, remain in full force. 
 
 Article V. — The English and Chinese texts of the present Convention 
 have been carefully compared and -found to correspond but in the event of 
 there being any difference of meaning between them the English text shall be 
 authoritative. 
 
 Article VL — This Convention shall be ratified by the Sovereigns of both 
 countries and ratifications shall be exchanged at London within three months 
 after the date of signature by the Plenipotentiaries of both Powers. § 
 
 In token whereof the respective Plenipotentiaries have signed and sealed this 
 Convention, four copies in English and four in Chinese. 
 
 Done at Peking this twenty-seventh day of April, one thousand nine hundred 
 and six, being the fourth day of the fourth month of the thirty-second year of 
 the reign of Kuang-hsii. 
 
 (L.S.) Ernest Satow. 
 
 (Signature and Seal of the Chinese 
 Plenipotentiary.) 
 
 Annex. 
 
 Convention between the Governments of Great Britain and Tibet signed at 
 Lhasa on the 7th September 1904. 
 
 Declaration signed by His Excellency the Viceroy and Governor-General of 
 India on behalf of the British Government and appended to the ratified Conven- 
 tion of the 7th September 1904. 
 
 § Ratifications were exchanged at London, July 2'h, 1906.
 
 578 CHINA TREATIES AND AGREEMENTS 
 
 Convention between the Governments of Great Britain and Tibet. 
 [Signed also in Chinese.] 
 
 Whereas doubts and difficulties have arisen as to the meaning and validity 
 of the Anglo-Chinese Convention of 1890, and the Trade Regulations of 1893, 
 and as to the liabilities of the Tibetan Government under these agreements ; and 
 Whereas recent occurrences have tended towards a disturbance of the relations 
 of friendship and good understanding which have existed between the British 
 Government and the Government of Tibet ; and Whereas it is desirable to restore 
 peace and amicable relations, and to resolve and determine the doubts and diffi- 
 culties as aforesaid, the said Governments have resolved to conclude a Conven- 
 tion with these objects, and the following articles have been agreed upon by 
 Colonel F. E. Younghusband, CT.E., in virtue of full powers vested in him by 
 His Britannic Majesty's Government and on behalf of that said Government, and 
 Lo-Sang Gyal-Tsen, the Ga-den Ti-Rimpoche, and the representatives of the 
 Council, and the three monasteries, Se-ra, Dre-pung and Ga-den, and of the 
 ecclesiastical and lay officials of the National Assembly on behalf of the Govern- 
 ment of Tibet. 
 
 I. — The Government of Tibet engages to respect the Anglo-Chinese Con- 
 vention of 1890 and to recognize the frontier between Sikkim and Tibet, as 
 defined in Article I of the said Convention, and to erect boundary pillars accord- 
 ingly. 
 
 II. — The Tibetan Government undertakes to open forthwith trade marts to 
 which all British and Tibetan subjects shall have free right of access at Gyantse 
 and Gartok, as well as at Yatung. 
 
 The Regulations applicable to the trade mart at Yatung, under the Anglo- 
 Chinese Agreement of 1893, shall, subject to such amendments as may hereafter 
 be agreed upon by common consent between the British and Tibetan Govern- 
 ments, apply to the marts above mentioned. 
 
 In addition to establishing trade marts at the places mentioned, the Tibetan 
 Government undertakes to place no restrictions on the trade by existing routes, 
 and to consider the question of establishing fresh trade marts under similar 
 conditions if development of trade requires it. 
 
 III. — The question of the amendment of the Regulations of 1893 is reserved 
 for separate consideration, and the Tibetan Government undertakes to appoint 
 fully authorized delegates to negotiate with representatives of the British Govern- 
 ment as to the details of the amendments required. || 
 
 IV. — The Tibetan Government undertakes to levy no dues of any kind other 
 than those provided for in the tariff to be mutually agreed upon. 
 
 V. — The Tibetan Government undertakes to keep the roads to Gyantse and 
 Gartok from the frontier clear of all obstruction and in a state of repair suited to 
 the needs of the trade, and to establish at Yatung, Gyantse, and Gartok, and at 
 each of the other trade marts that may hereafter be established, a Tibetan Agent 
 who shall receive from the British Agent appointed to watch over British trade 
 
 II See Note 2 to this document, post, p. 582.
 
 NUMBER 1906/2: APRIL 27, 1906 579 
 
 at the marts in question any letter which the latter may desire to send to the 
 Tibetan or to the Chinese authorities. The Tibetan Agent shall also be responsible 
 for the due delivery of such communications and for the transmission of 
 replies. 
 
 VI. ^ — As an indemnity to the British Government for the expense incurred 
 in the despatch of armed troops to Lhasa, to exact reparation for breaches of 
 treaty obligations, and for the insults offered to and attacks upon the British 
 Commissioner and his following and escort, the Tibetan Government engages to 
 pay a sum of pounds five hundred thousand — equivalent to rupees seventy-five 
 lakhs — to the British Government. 
 
 The indemnity shall be payable at such place as the British Government 
 may from time to time, after due notice, indicate whether in Tibet or in the British 
 districts of Darjeeling or Jalpaiguri, in seventy-five annual instalments of rupees 
 one lakh each on the 1st January in each year, beginning from the 1st January 
 1906. 
 
 VII. — As security for the payment of the above-mentioned indemnity, and 
 for the fulfilment of the provisions relative to trade marts specified in Articles 
 II, III, IV and V, the British Government shall continue to occupy the Chumbi 
 valley until the indemnity has been paid and until the trade marts have been 
 effectively opened for three years, whichever date may be the later. 
 
 VIII. — The Tibetan Government agrees to raze all forts and fortifications 
 and remove all armaments which might impede the course of free communica- 
 tion between the British frontier and the towns of Gyantse and Lhasa. 
 
 IX. — The Government of Tibet engages that, without the previous consent 
 of the British Government — 
 
 (a) no portion of Tibetan territory shall be ceded, sold, leased, mortgaged 
 or otherwise given for occupation, to any Foreign Power ; 
 
 (b) no such Power shall be permitted to intervene in Tibetan affairs; 
 {c) no Representatives or Agents of any Foreign Power shall be admitted 
 
 to Tibet ; 
 
 (d) no concessions for railways, roads, telegraphs, mining or other rights, 
 shall be granted to any Foreign Power, or to the subject of any Foreign Power. 
 In the event of consent to such concessions being granted, similar or equivalent 
 concessions shall be granted to the British Government ; 
 
 (e) no Tibetan revenues, whether in kind or in cash, shall be pledged or 
 assigned to any Foreign Power, or to the subject of any Foreign Power. 
 
 X. — In witness whereof the negotiators have signed the same, and affixed 
 thereunto the seals of their arms. 
 
 Done in quintuplicate at Lhasa, this 7th day of September in the year of 
 our Lord one thousand nine hundred and four, corresponding with the Tibetan 
 date, the 27th day of the seventh month of the Wood Dragon year. 
 
 II In connection with this and the following Article, see the Declaration of the Viceroy 
 of India, September 7, 1904, annexed to this convention.
 
 580 
 
 Tibet Frontier 
 
 CHINA TREATIES AND AGREEMENTS 
 
 F. E. YOUNGHUSBAND, CoL, 
 
 British Commissioner. 
 
 Commission. 
 
 Seal of British 
 Commissioner. 
 
 Seal of the Dalai 
 Lama, affixed 
 by the Ga-den 
 Ti-Rimpoche. 
 
 Seal of 
 
 Seal of the 
 
 Seal of Sera 
 
 Seal of 
 
 Seal of National 
 
 Council. 
 
 Dre-pung 
 Monastery. 
 
 Monastery. 
 
 Ga-den 
 Monastery. 
 
 Assembly. 
 
 In proceeding to the signature of the Convention, dated this day, the repre- 
 sentatives of Great Britain and Tibet declare that the EngHsh text shall be binding. 
 
 Tibet Frontier 
 
 F. E. YoUNGHUSBAND, Col., 
 
 British Commissioner. 
 
 Commission. 
 
 Seal of British 
 Commissioner. 
 
 Seal of the Dalai 
 Lama, affixed 
 by the Ga-den 
 Ti-Rimpoche. 
 
 Seal of 
 
 Seal of the 
 
 Seal of Sera 
 
 Seal of 
 
 Seal of National 
 
 Council. 
 
 Dre-pung 
 
 Monastery. 
 
 Monastery. 
 
 Ga-den 
 Monastery. 
 
 Assembly. 
 
 Ampthill, 
 Viceroy and Governor-General of India. 
 
 This Convention was ratified by the Viceroy and Governor-General of India 
 in Council at Simla on the eleventh day of November, a.d., one thousand nine 
 hundred and four. 
 
 S. M. Eraser, 
 Secretary to the Government of India, 
 Foreign Department.
 
 NUMBER 1906/2: APRIL 27, 1906: NOTES 581 
 
 Declaration signed by his Excellency the Viceroy and Governor-General of India 
 and appended to the ratified Convention of 7th September 1904. 
 
 His Excellency the Viceroy and Governor-General of India, having ratified 
 the Convention which was concluded at Lhasa on 7th September 1904 by Colonel 
 Younghusband, CLE., British Commissioner for Tibet Frontier Matters, on 
 behalf of His Britannic Majesty's Government; and by Lo-Sang Gyal-Tsen, the 
 Ga-den Ti-Rimpoche, and the representatives of the Council, of the three monas- 
 teries Sera, Drepung, and Ga-den, and of the ecclesiastical and lay officials of 
 the National Assembly, on behalf of the Government of Tibet, is pleased to 
 direct as an act of grace that the sum of money which the Tibetan Government 
 have bound themselves under the terms of Article VI of the said Convention to 
 pay to His Majesty's Government as an indemnity for the expenses incurred by 
 the latter in connection with the despatch of armed forces to Lhasa, be reduced 
 from Rs. 75,00,000 to Rs. 25,00,000; and to declare that the British occupation df 
 the Chumbi valley shall cease after the due payment of three annual instal- 
 ments of the said indemnity as fixed by the said Article, provided, however, that 
 the trade marts as stipulated in Article II of the Convention shall have been 
 effectively opened for three years as provided in Article VI of the Convention; 
 and that, in the meantime, the Tibetans shall have faithfully complied with the 
 terms of the said Convention in all other respects.* 
 
 Ampthill, 
 Viceroy and Governor-General of India. 
 
 This declaration was signed by the Viceroy and Governor-General of India 
 in Council at Simla on the eleventh day of November, a.d., one thousand nine 
 hundred and four. 
 
 S. M. Eraser, 
 Secretary to the Government of India 
 Foreign Department. 
 
 Note 1. 
 
 In the Statesman's Year Book, 1916, p. 805, appears the statement that " A conference 
 in which he [the Dalai Lama] is represented opened in Simla on October 13, 1913, with 
 representatives of the Chinese and Indian Governments in order to negotiate a Tripartite 
 Agreement regulating the future relations of Tibet with China and India. 
 
 " After prolonged negotiations a provisional agreement was reached on April 27th, 
 1914, when a Convention in 11 Articles, accompanied by an exchange of notes in 7 Articles, 
 was initialled by the three representatives. This agreement provides that Tibet shall for 
 administrative purposes be defined as Outer and Inner Tibet, in accordance with boundaries 
 shown on a map affixed to the Convention, Inner Tibet being that portion of Tibet 
 adjacent to China. It stipulates that Tibet forms part of Chinese territory, and is under 
 Chinese suzerainty. It recognizes the autonomy of Outer Tibet, engages on the part 
 of England and China to abstain from interference in the administration of Outer 
 Tibet; China undertaking not to convert Tibet into a Chinese province, and engaging that 
 Outer Tibet shall not be represented in any future Chinese Parliament. China engages not 
 to send troops into Outer Tibet, nor to station civil or military oflficers, nor establish 
 
 * Hertslet (p. 622) notes that the final instalment of the indemnity was paid on January 
 27, 1908, and that the Chumbi Valley was evacuated on February 8, 1908.
 
 582 CHINA TREATIES AND AGREEMENTS 
 
 Chinese colonies in that region. Any troops or officials remaining in Outer Tibet at the 
 date of signature, shall be withdrawn within three months. A Chinese high official may 
 be stationed as in the past at Lhasa, with an escort not exceeding 300 men. The British 
 Agent at Gyantze may visit Lhasa with his escort should occasion require. 
 
 " The Tibetan Trade Regulations of 1893 and 1908 are cancelled, as well as Article 3 
 of the Convention of April 27th, 1906. China is also released from the engagement under 
 Article 3 of the Convention of March 17th, 1890. Difficulties arising between the Chinese 
 and Tibetan Governments out of this Convention shall be referred to the British Govern- 
 ment for adjustment. 
 
 " The action of the Chinese representative in initialling this provisional Convention was 
 repudiated by China, and under instructions he abstained from signing the final Conven- 
 tion which in the same terms was duly signed by the British and Tibetan authorities on 
 July 3rd, 1914. In accordance with the notification conveyed to the Chinese Government 
 by the British Government, China, so long as she declines to sign this Convention, is 
 deprived of all advantages and privileges secured to her under the Convention. 
 
 "China's refusal to sign is based upon her objection to the inclusion of Chiamdo in 
 Outer Tibet, and the inclusion of Litang and Batang, which she claims to be part of 
 Suchuan Province, in Inner Tibet. China's representative has returned to Peking. The 
 Convention and exchange of notes referred to, signed by the British and Tibetan represen- 
 tatives on July 3rd, 1914, have not yet been officially made public." 
 
 It is understood that no change has since occurred in the status of the situation thus 
 outlined. 
 
 Note 2. 
 
 Regulations respecting trade in Tibet, amending those of December 5, 1893, were 
 signed at Calcutta, April 20, 1908, and ratifications thereof exchanged at Peking, October 
 14, 1908. The text (as given in British Treaty Series, 1908, No. 35), is as follows: 
 
 Tibet Trade Regulations. 
 
 " Preamble. 
 
 " Whereas by Article 1 of the Convention between Great Britain and China on the 
 27th April, 1906, that is the 4th day of the 4th moon of the 32nd year of Kwang Hsii, it 
 was provided that both the High Contracting Parties should engage to take at all times 
 such steps as might be necessary to secure the due fulfilment of the terms specified in the 
 Lhasa Convention of 7th September, 1904, between Great Britain and Tibet, the text of 
 which in English and Chinese was attached as an Annexe to the above-mentioned Con- 
 vention ; 
 
 " And whereas it was stipulated in Article 3 of the said Lhasa Convention that the 
 question of the amendment of the Tibet Trade Regulations which were signed by the 
 British and Chinese Commissioners on the 5th day of December 1893 should be reserved 
 for separate consideration, and whereas the amendment of these Regulations is now 
 necessary ; 
 
 " His Majesty the King of the United Kingdom of Great Britain and Ireland and of 
 the British Dominions beyond the Seas, Emperor of India, and His Majesty the Emperor 
 of the Chinese Empire have for this purpose named as their Plenipotentiaries, that is to say : 
 
 "His Majesty the King of Great Britain and Ireland and of the British Dominions 
 beyond the Seas, Emperor of India, — ]\Ir. E. C. Wilton, C.M.G. ; 
 
 " His Majesty the Emperor of the Chinese Empire — His Majesty's Special Commis- 
 sioner Chang Yin Tang; 
 
 " And the High Authorities of Tibet have named as their fully authorised Represen- 
 tative to act under the directions of Chang Tachen and take part in the negotiations — The 
 Tsarong Shape, Wang-Chuk Gyalpo. 
 
 " And whereas Mr. E. C. Wilton and Chang Tachen have communicated to each other 
 since their respective full powers and have found them to be in good and true form and 
 have found the authorisation of the Tibetan Delegate to be also in good and true form, 
 the following amended Regulations have been agreed upon : — 
 
 " 1. — The Trade Regulations of 1893 shall remain in force in so far as they are not 
 inconsistent with these Regulations. 
 
 "2. — The following places shall form, and be included within, the boundaries of the 
 Gyantse mart : — 
 
 " (a.) The line begins at the Chumig Dangsang (Chhu-Mig-Dangs-Sangs) north-east 
 of the Gyantse Fort, and thence it runs in a curved line, passing behind the Pekor-Crode 
 (Dpal-Hkhor-Choos-Sde), down to Chag-Dong-Gang (Phyag-Gdong-Sgang) ; thence, pass- 
 ing straight over the Nyan Chu, it reaches the Zamsa (Zam-Srag). (&.) From the Zamsa
 
 NUMBER 1906/2: APRIL 27, 1906: NOTES 583 
 
 the line continues to run, in a south-eastern direction, round to Lachi-To (Gla-Dkyii-Stod), 
 embracing all the farms on its way, viz., The Lahong; The Hogtso (Hog-Mtsho) ; The 
 Tong-Chung-Shi (Grong-Chhung-Gshis) ; and the Rabgang (Rab-Sgang), &c. (c.) From 
 Lachi-To the line runs to the Yutog (Gyu-Thog), and thence runs straight, passing through 
 the whole area of Gamkar-Shi (Ragal-Mkhar-Gshis), to Chumig Dangsang. 
 
 " As difficulty is experienced in obtaining suitable houses and godowns at some of the 
 marts, it is agreed that British subjects may also lease lands for the building of houses 
 and godowns at the marts, the locality for such building sites to be marked out specially 
 at each mart by the Chinese and Tibetan authorities in consultation with the British Trade 
 Agent. The British Trade Agents and British subjects shall not build houses and godowns 
 except in such localities, and this arrangement shall not be held to prejudice in ajiy way 
 the administration of the Chinese and Tibetan Local Authorities over such localities, or 
 the right of British subjects to rent houses and godowns outside such localities for their 
 own accommodation and the storage of their goods. 
 
 "British subjects desiring to lease building sites shall apply through the British 
 Trade Agent to the Municipal Office at the mart for a permit to lease. The amount of 
 rent, or the period or conditions of the lease, shall then be settled in a friendly way by 
 the lessee and the owner themselves. In the event of a disagreement between the owner 
 and lessee as to the amount of rent or the period or conditions of the lease, the case will 
 be settled bv the Chinese and Tibetan Authorities, in consultation with the British Trade 
 Agent. After the lease is settled, the sites shall be verified by the Chinese and Tibetan 
 Officers of the Municipal Office conjointly with the British Trade Agent. No building is 
 to be commenced by the lessee on a site before the Municipal Office has issued him a 
 permit to build, but it is agreed that there shall be no vexatious delays in the issue of 
 such permit. 
 
 " 3. — The administration of the trade marts shall remain with the Tibetan Officers, 
 under the Chinese Officers' supervision and directions. 
 
 " The Trade Agents at the marts and Frontier Officers shall be of suitable rank, and 
 shall hold personal intercourse and correspondence one with another on terms of mutual 
 respect and friendly treatment. 
 
 " Questions which cannot be decided by agreement between the Trade Agents and 
 the Local Authorities shall be referred for settlement to the Government of India and the 
 Tibetan High Authorities at Lhasa. The purport of a reference by the Government of 
 India will be communicated to the Chinese Imperial Resident at Lhasa. Questions which 
 cannot be decided by agreement between the Government of India and the Tibetan High 
 Authorities at Lhasa shall, in accordance with the terms of Article 1 of the Peking Con- 
 vention of 1906, be referred for settlement to the Governments of Great Britain and China. 
 
 "4. — In the event of disputes arising at the marts between British subjects and persons 
 of Chinese and Tibetan nationalities, they shall be enquired into and settled in personal 
 conference between the British Trade Agent at the nearest mart and the Chinese and 
 TiJDetan Authorities of the Judicial Court at the mart, the object of personal conference 
 being to ascertain facts and to do justice. Where there is a divergence of view the law 
 of the country to which the defendant belongs shall guide. In any of such mixed cases, 
 the Officer, or Officers of the defendant's nationality shall preside at the trial ; the Officer, 
 or Officers of the plaintiff's country merely attending to watch the course of the trial. 
 
 " All questions in regard to rights, whether of property or person, arising between 
 British subjects, shall be subject to the jurisdiction of the British Authorities. 
 
 " British subjects, who may commit any crime at the marts or on the routes to the 
 marts, shall be handed over by the local authorities to the British Trade Agent at the 
 mart nearest to the scene of offence, to be tried and punished according to the laws of 
 India, but such British subjects shall not be subjected by the local authorities to any ill- 
 usage in excess of necessary restraint. 
 
 "Chinese and Tibetan subjects, who may be guilty of any criminal act towards British 
 subjects at the marts or on the routes thereto, shall be arrested and punished by the Chinese 
 and Tibetan Authorities according to law. 
 
 " Justice shall be equitably and impartially administered on both sides. 
 
 " Should it happen that Chinese or Tibetan subjects bring a criminal complaint against 
 a British subject before the British Trade Agent, the Chinese or Tibetan Authorities shall 
 have the right to send a representative, or representatives, to watch the course of trial in 
 the British Trade Agent's Court. Similarly, in cases in which a British subject has reason 
 to complain of a Chinese or Tibetan subject in the Judicial Court at the mart, the British 
 Trade Agent shall have the right to send a representative to the Judicial Court to watch 
 the course of trial. 
 
 " 5. — The Tibetan Authorities, in obedience to the instructions of the Peking Govern- 
 ment, having a strong desire to reform the judicial system of Tibet, and to bring it into 
 accord with that of Western nations, Great Britain agrees to relinquish her rights of 
 extra-territoriality in Tibet, whenever such rights are relinquished in China, and when she 
 is satisfied that the state of the Tibetan laws and the arrangements for their administration 
 and other considerations warrant her in so doing.
 
 584 CHINA TREATIES AND AGREEMENTS 
 
 " 6. — After the withdrawal of the British troops, all the rest-houses, eleven in number, 
 built by Great Britain upon the routes leading from the Indian frontier to Gyantse, shall 
 be taken over at original cost by China and rented to the Government of India at a fair 
 rate. One-half of each rest-house will be reserved for the use of the British officials 
 employed on the inspection and maintenance of the telegraph lines from the marts to the 
 Indian frontier and for the storage of their materials, but the rest-houses shall otherwise 
 be available for occupation by British, Chinese and Tibetan officers of respectability who 
 may proceed to and from the marts. 
 
 " Great Britain is prepared to consider the transfer to China of the telegraph lines from 
 the Indian frontier to Gyantse when the telegraph lines from China reach that mart and 
 in the meantime Chinese and Tibetan messages will be duly received and transmitted by 
 the line constructed by the Government of India. 
 
 " In the meantime China shall be responsible for the due protection of the telegraph 
 lines from the marts to the Indian frontier and it is agreed that all persons damaging the 
 lines or interfering in any way with them or with the officials engaged in the inspection or 
 maintenance thereof shall at once be severely punished by the local authorities. 
 
 " 7. — In law suits involving cases of debt on account of loans, commercial failure, and 
 bankruptcy, the authorities concerned shall grant a hearing and take steps necessary to 
 enforce payment; but, if the debtor plead poverty and be without means, the authorities 
 concerned shall not be held responsible for the said debts, nor shall any public or official 
 property be distrained upon in order to satisfy these debts. 
 
 " 8. — The British Trade Agents at the various trade marts now or hereafter to be 
 established in Tibet may make arrangements for the carriage and transmission of their 
 posts to and from the frontier of India. The couriers employed in conveying these posts 
 shall receive all possible assistance from the local authorities whose districts they traverse 
 and shall be accorded the same protection as the persons employed in carrying the 
 despatches of the Tibetan Authorities. When efficient arrangements have been made by 
 China in Tibet for a Postal Service, the question of the abolition of the Trade Agents' 
 couriers will be taken into consideration by Great Britain and China. No restrictions what- 
 ever shall be placed on the employment by British officers and traders of Chinese and 
 Tibetan subjects in any lawful capacity. The persons so employed shall not be exposed 
 to any kind of molestation or suffer any loss of civil rights to which they may be entitled 
 as Tibetan subjects, but they shall not be exempted from all lawful taxation. If they be 
 guilty of any criminal act, they shall be dealt with by the local authorities according to 
 law without any attempt on the part of their employer to screen or conceal them. 
 
 "9. — British officers and subjects, as well as goods, proceeding to the trade marts, 
 must adhere to the trade routes from the frontier of India. They shall not, without per- 
 mission, proceed beyond the marts, or to Gartok from Yatung and Gyantse, or from Gartok 
 to Yatung and Gyantse, by any route through the interior of Tibet, but natives of the 
 Indian frontier, who have already by usage traded and resided in Tibet, elsewhere than 
 at the marts shall be at liberty to continue their trade, in accordance with the existing 
 practice, but when so trading or residing they shall remain, as hereofore, amenable to the 
 local jurisdiction. 
 
 " 10. — In cases where officials or traders, en route to and from India or Tibet are 
 robbed of treasure or merchandise, public or private, they shall forthwith report to the 
 Police officers, who shall take immediate measures to arrest the robbers, and hand them 
 to the Local Authorities. The Local Authorities shall bring them to instant trial, and shall 
 also recover and restore the stolen property. But, if the robbers flee to places out of the 
 jurisdiction and influence of Tibet, and cannot be arrested, the Police and the Local Authori- 
 ties shall not be held responsible for such losses. 
 
 "11. — For public safety tanks or stores of kerosene oil or any other combustible or 
 dangerous articles in bulk must be placed far away from inhabited places at the marts. 
 
 " British or Indian merchants, wishing to build such tanks or stores, may not do so 
 until, as provided in Regulation 2, they have made application for a suitable site. 
 
 "12. — British subjects shall be at liberty to deal in kind or in money, to sell their 
 goods to whomsoever they please, to purchase native commodities from whomsoever they 
 please, to hire transport of any kind, and to conduct in general their business transac- 
 tions in conformity with local usage and without any vexatious restrictions or oppressive 
 exactions whatever. 
 
 " It being the duty of the Police and Local Authorities to afford efficient protection 
 at all times to the persons and property of the British subjects at the marts, and along the 
 routes to the marts China engages to arrange effective police measures at the marts and 
 along the routes to the marts. On due fulfilment of these arrangements. Great Britain 
 undertakes to withdraw the Trade Agents' guards at the marts and to station no troops 
 in Tibet so as to remove all cause for suspicion and disturbance among the inhabitants. 
 The Chinese Authorities will not prevent the British Trade Agents holding personal inter- 
 course and correspondence with the Tibetan officers and people. 
 
 "Tibetan subjects trading, travelling or residing in India shall receive equal advan- 
 tages to those accorded by this Regulation to British subjects in Tibet.
 
 NUMBER 1906/3 : MAY 26, 1906 585 
 
 "13. — The present Regulations shall be in force for a period of ten years reckoned 
 from the date of signature by the two Plenipotentiaries as well as by the Tibetan Delegate; 
 but if no demand for revision be made on either side within six months after the end of 
 the first ten years, then the Regulations shall remain in force for another ten years, from 
 the end of the first ten years; and so it shall be at the end of each successive ten years. 
 " 14. — The English, Chinese and Tibetan texts of the present Regulations have been 
 carefully compared, and, in the event of any question arising as to the interpretation of 
 these Regulations, the sense as expressed in the English text shall be held to be the cor- 
 rect sense. 
 
 " 15. — The Ratifications of the present Regulations under the hand of His Majesty 
 the King of Great Britain and Ireland, and of His Majesty the Emperor of the Chinese 
 Empire, respectively, shall be exchanged at London and Peking within six months from 
 the date of signature. 
 
 " In witness whereof the two Plenipotentiaries and the Tibetan Delegate have signed 
 and sealed the present Regulations. 
 
 " Done in quadruplicate at Calcutta, this twentieth day of April, in the year of our 
 Lord nineteen hundred and eight, corresponding with the Chinese date, the twentieth day 
 of the third moon of the thirty-fourth year of Kuang Hsii. 
 " (L.S.) E. C. Wilton, 
 
 British Commissioner. 
 
 " Signature of 
 (L.S.) Chang Yin Tang, 
 
 Chinese Special Commissioner. 
 " Signature of 
 (L.S.) Wang Chuk Gyalpo, 
 
 Tibetan Delegate." 
 
 NUMBER 1906/3. 
 
 INTERNATIONAL AND CHINA. 
 
 International postal convention, and convention concerning the exchange of 
 
 parcels post.— May 26, 1906. 
 
 [The International Postal Convention, and the Convention concerning the exchange of 
 parcels post, with their respective Rcglements d'Execiition, which were concluded at Rome 
 on May 26, 1906, do not appear to have such a particular interest in relation to China as 
 to warrant the reproduction of the texts in the present compilation. 
 
 China gave notice of its adherence to the postal convention by a dispatch dated Feb- 
 ruary 5, 1914, addressed by H. E. Sun Pao-chi, President of the Council of Ministers and 
 Minister for Foreign Affairs, to the President of the Swiss Confederation, of which the 
 translation is as follows : 
 
 " The Chinese Government, deeming that the organization of its domestic and inter- 
 national postal service (the creation of which dates from 1896) is sufficiently advanced to 
 justify the establishment of closer relations, equally more advantageous to both parties, 
 with the countries of the Union, desires to enter the Universal Postal Union. 
 
 " In conformity with Article 24. paragraph 2, of the Universal Postal Convention of 
 May 26, 1906,* I have therefore the honor to notify the High Federal Council of the 
 
 * Article 24 reads (in translation from the French text) as follows: 
 
 " Adhcrences to the convention — 
 
 " I. — Countries which have not taken part in the present convention are admitted to adhere to it 
 upon their demand. 
 
 " 2. — This adherence is notified diplomatically to the Government of the Swiss Confederation, and by 
 that Government to all the countries of the Union. 
 
 " 3. — It implies, as a matter of course, accession to all the clauses and admission to all the advantages 
 for which the present convention stipulates. 
 
 " 4. — It devolves upon the Government of the Swiss Confederation to determine, by common consetit 
 with the Government of the country concerned, the share to be contributed by the administration of this 
 latter country towards the expenses of the international bureau, and, if necessary, the rates to be levied 
 by that administration in conformity with the foregoing Article lo." 
 
 Article 7 of the final protocol of the Universal Postal Congress at Rome, signed on May 26, 1906, 
 contains the following provisions: " Salvador, which forms part of the postal union, not having been 
 represented at the congress, the protocol remains open to it in order that it may adhere to the conventions 
 which have been concluded there, or only to one or other of them. . . . The protocol likewise remains 
 open to the Chinese Empire and the Empire of Ethiopia, whose delegates to the congress have announced 
 the intention of those countries to enter the Universal Postal Union on a date to be fixed hereafter."
 
 586 CHINA TREATIES AND AGREEMENTS 
 
 adherence of China to that convention, as also to the Reglement d' Execution appended to 
 it, to date from March 1 next. 
 
 " In order, however, to permit of undertaking, if there be occasion, in certain respects, 
 an adjustment of the existing procedure in so far as concerns the exchange service, the 
 Chinese Government desires it to be understood that the provisions and regulations of 
 the Union w^ill come into full effect as regards China only from September 1. 
 
 " Accept, etc." 
 
 By a dispatch of May 16, 1914, to the President of the Swiss High Federal Council, 
 the Minister for Foreign Affairs likewise gave notice of China's adherence to the parcels 
 post convention, in the following terms (as translated from the French text) : 
 
 " The Chinese Government, which by its dispatch of February 5 last notified the High 
 Federal Council of China's adherence to the Universal Postal Convention of j\Iay 26, 
 1906, furthermore desires to participate in the international service for the exchange of 
 parcels post of the Universal Postal Union. 
 
 " In conformity with Article 20, paragraph 1, of the convention of May 26, 1906, con- 
 cerning the exchange of parcels post.t I have the honor to notify the High Federal 
 Council of the adherence of China to that convention, as also to the Reglement d'Execution 
 appended to it, to come into full effect from September 1, 1914. 
 
 " Accept, etc." 
 
 In regard to the effect of these adherences to the Rome conventions of May 26, 1906, 
 the Postmaster General of China (Mr. T. Piry) had occasion to address to the Director 
 of the International Bureau of the Universal Postal Union, under date of March 18, 
 1915, a communication of which the translation is as follows : 
 
 " I have the honor to request you to be so good as to communicate the following to 
 the countries of the Postal Union : 
 
 " Having effectively entered the Universal Postal Union on September 1, 1914, China 
 ought from that date to enjoy the rights and benefits accruing, to all the members of the 
 union, out of the provisions of the Universal Postal Convention (Article 24, §3, of the 
 Rome convention). 
 
 " In that conviction, the administration of Chinese posts immediately sought to 
 organize a direct exchange of mails between China and certain other countries. 
 
 " While the majority of those countries have welcomed the proposals of the Chinese 
 administration, and while others have not yet been able to carry them into effect because 
 of preoccupations resulting from the war, there are some which have raised objections to 
 the application of the provisions of Article 4, §§1 and 2, of the Rome convention, and of 
 Article 1, §1, of the Reglement d'Execution of that convention.^: 
 
 " Two of those countries, for example, have forbidden the navigation companies sub- 
 sidized by their Governments, and thus coming under the category of third services as 
 defined in Article 3, §2, of the Universal Postal Convention, to receive aboard their vessels 
 touching at Chinese ports mails presented by the Chinese offices. 
 
 " In order the better to define the situation that has been created for it, China believes 
 it necessary to recall that, at the time of notifying the Swiss High Federal Council of its 
 adherence to the convention of May 26, 1906, as a matter of courtesy it invited the atten- 
 tion of those countries, with which it had previously concluded postal treaties, to the abro- 
 gation of those treaties in conformity with the stipulations of Article 29 of the said 
 convention. 
 
 " As regards the effects of the entry of China into the Postal Union, it is incontestable 
 that the adherence of this country to the Rome convention had the effect of rendering void 
 
 t Article 20 reads (in translation from the French text) as follows: 
 
 " Adherences to the convention — 
 
 " I. — The countries of the Universal Postal Union which have not taken part in the present 
 convention are admitted to participate in it on their demand, and subject to the formalities prescribed by 
 Article 24 of the principal convention in the case of entries into the Universal Postal Union. 
 
 " 2. — Nevertheless, if the country which desires to participate in the present convention claims a 
 right to levy a surtax greater tlian 25 centimes per parcel, the Government of the Swiss Confederation 
 will submit to all the contracting parties the request for participation. This request is considered as 
 acceded to. if within six months no objection has been raised." 
 
 {Article 4 of the convention relates to transit rates: §§ i and 2 of it read (in translation) as 
 follows: — 
 
 " 1. — The right of transit is guaranteed throughout the entire territory of the Union. 
 
 " 2. — Consequently, the several postal administrations of the Union may send reciprocally through 
 the medium of one or of several of them, either closed mails or articles in open mail, according to the 
 needs of the traffic and the convenience of the postal service." 
 
 Article i of the Rkslement d'Execution relates to forwarding of mails; § i of it reads (in translation) 
 as follows: 
 
 " I. — Each administration is bound to forward, by the most rapid routes at its disposal for its own 
 mails, the closed mails and the articles in open mail which are delivered to it by another administration. 
 
 " In the event of an administration finding itself obliged, by exceptional circumstances, to suspend 
 temporarily the dispatch of closed mails and articles in open mail which are delivered to it by another 
 administration, it is bound at once to notify the fact, if necessary by telegraph, to the administration or 
 administrations concerned."
 
 NUMBER 1906/3 : MAY 26, 1906 587 
 
 the provisions (in §1 of Article 44 of the Rcglement d'Exccui'wn)% referring to the post- 
 offices which various countries maintain upon its territory. 
 
 '• Article 1 of the Universal Postal Convention || lays down this fundamental principle— 
 that the Postal Union is composed of the totality of adhering countries (and not of postal 
 administrations), which form a single postal territory. Article 44 of the Rcglement 
 d'Execution of that convention can thereafter only define the limits of that single territory 
 in enumerating: 
 
 "1) Countries which, not having signed the convention, but being politically dependent 
 upon countries of the Union, cannot be excluded from the benefit of the same rights and 
 privileges as the latter ; 
 
 _"2) Postal establishments maintained by countries of the Union outside the territorial 
 limits of the latter. 
 
 "There can therefore be no warrant, in the text of the said Article 44, without viola- 
 tion of the principle laid down by Article 1 of the convention, for offices maintained by 
 Union countries in other Union countries. 
 
 " The terms of the 2nd clause of Article 10 of the Rome convention, and those of 
 Article 44, §2, of the Rcglement d'Execution, confirm the fact that only post offices operat- 
 ing in countries outside the Union can properly be comprised under §1 of the said .Vticle 44. 
 
 " It was, besides, impossible for China to ask, in advance of its adherence to the Rome 
 convention, — an adherence which could not involve any restriction or reserve, — the modifica- 
 tion of Article 44 of the Rcglement d'Execution of that convention, as such modification 
 could be initiated only upon the request of one of the administrations of the Union, and 
 in accordance with the long and complicated procedure contemplated by Article 45. 
 
 " Relying upon the principles inscribed in the Universal Postal Convention, and in 
 agreement on this point with the jurists in international law of all countries, China con- 
 siders that by virtue of its entry into the Union, the offices maintained upon its territory 
 by other countries of the Union have ceased to have a legal existence. 
 
 " Although in consequence of the difficulties mentioned above and those that have their 
 origin in the present events of the war, China has found itself obliged, in order not to 
 impede the transmission of its mails, to continue temporarily for the purpose of its rela- 
 tions with other countries to have recourse to the intermediation of certain of the foreign 
 post offices established upon its territory, or to accept this intermediation, it must declare 
 that this course of action implies no recognition on its part of the legality of those offices, 
 and furthermore that no status, in that respect, can be created by the written communica- 
 tions that have been or that may hereafter be exchanged in regard to them, either with 
 those offices or with the administrations to which they belong. 
 
 " China protests against the maintenance, by the majority of the foreign post offices 
 operating upon its territory, of tariffs lower than those fixed by Article 5 of the Rome 
 convention, for the payment of postage upon mails exchanged by those offices, either 
 between themselves or with the countries to which they respectively belong. 
 
 " Article 2 of the Rome convention stipulates in effect that the provisions of that con- 
 vention apply to mails originating in one of the countries of the Union and destined to 
 another country of the Union. 
 
 " On this occasion, and to refute an opinion that has been expressed in China, the latter 
 feels it should observe that the restricted Unions, contemplated by Article 21 of the con- 
 vention, can, by their definition, be established only as between countries, and not between 
 the offices maintained by a country outside of its own territory, and that country. 
 
 " As regards the tariffs applied by foreign post offices of the same nationality operating 
 in Chinese territory, in their relations with each other, it is undeniable that the field of 
 action for the exercise of the sovereign rights of a Union country, in the fixing of tariffs 
 applicable to mails exchanged between its own offices, ends at the territorial limits of the 
 other countries of the Union. 
 
 § Article 44 of the Rtglement d'Execution relates to the jurisdiction of the Union; the relevant 
 clauses of it read (in translation) as follows; 
 
 " I. — The following are considered as belonging to the Universal Postal Union: 
 
 I St. — The German post offices established in China and in Morocco, as subordinate to the Postal 
 Administration of Germany; 
 
 5th. — The Principality of Monaco and the French post offices established in Morocco and in 
 China, as subordinate to the Postal .Administration of France; 
 
 6th. — The post offices which the administration of the French Colonies and Protectorates of 
 Indo-China maintains in China, as subordinate to that administration; 
 
 8th. — The post offices which the administration of the British Colony of Hongkong maintains in 
 China; . 
 
 nth. — The post offices which the Japanese administration has established in China. 
 " 2. — In the interval which elapses between the meetings, the administrations of Union countries 
 opening in countries foreign to the Union post\ offices which are to be regarded as belonging to the Union, 
 are to communicate the fact to the administrations of all the other Union countries, through the medium 
 of the international bureau." 
 
 1 1 Article i of the convention, under the heading " Definition of the Postal Union," reads (in transla- 
 tion) as follows: — 
 
 " The countries between which the present convention is concluded, as well as those which may 
 adhere to it hereafter, form under the title of Universal Postal Union, a single postal territory for the 
 reciprocal exchange of correspondence between their post offices."
 
 588 CHINA TREATIES AND AGREEMENTS 
 
 " China, having adhered as from September 1 last to the Rome convention concerning 
 the exchange of parcels post, must declare that what has been said above, in regard to 
 the temporary continuation, necessitated by circumstances, of the intermediation of foreign 
 post offices established upon its territory, applies likewise to the parcels post service. 
 
 " Accept, etc." 
 
 The following arrangements, previously concluded, appear to have been cancelled by 
 the adherence of the Chinese Government to the International Postal Convention and 
 Parcels Post Convention of Alay 26, 1906: 
 
 With France, postal arrangement signed at Peking, February 3, 1900, and parcel post 
 arrangement signed at Peking, October 21, 1904; 
 
 With Germany, postal arrangement signed at Peking, October 25, and at Shanghai, 
 November 3, 1905, and parcel post arrangement signed at Peking, July 19, and at Shanghai, 
 August 26, 1910; 
 
 With Hongkong, postal arrangement signed at Hongkong, December 12, and at Peking, 
 December 29, 1904 ; 
 
 With Indo-China, parcels post arrangement, signed at Saigon, Julv 24, and at Peking, 
 September 21. 1911 ; 
 
 With Japan, postal agreement and parcel post agreement, both signed at Peking, Feb- 
 ruary 9, 1910; 
 
 With Natal, postal arrangement signed at Peitermaritzburg, October 28, and at Peking, 
 December 27, 1905 ; and 
 
 With Russia, postal arrangement signed at Peking, February 6/19, 1909. 
 
 The texts of these arrangements (omitting formal parts) are printed herewith, in chron- 
 ological order. 
 
 France. 
 
 ARRANGEMENT SETTING FORTH THE RELATIONS ESTABLISHED BETWEEN THE 
 POSTAL ADMINISTRATION OF FRANCE AND THE POSTAL ADMINISTRATION OF 
 CHINA. 
 
 February 3rd, 1900 
 
 ARTICLE I. — Exchange of Mails. — i. — There shall be between the Postal Administration of 
 France and the Postal Administration of China a regular exchange of postal articles of all kinds — 
 ordinary, registered, international or in transit, closed or d decouvert — by any means of transport, 
 ordinary or special, now established and hereafter established, which each Administration may have 
 at its disposal. 
 
 2. — The exchange of mails between the two Ad/ministrations will take place through the French 
 Post Offices established in China and the Chinese Post Offices established in the same localities as 
 these French Post Offices. Other Offices may besides be designated on consultation for the exchange 
 of mails wherever postal requirements may demand it. 
 
 ARTICLE II. — Transport of Mails. — i. — The Chinese Post Offices will accept from the French 
 Post Offices mails, closed or a decouvert, destined for Chinese, French, or foreign Post Offices estab- 
 lished in or out of China, and will undertake to transmit them to destination by any means of 
 transport at the disposal of the Chinese Administration. 
 
 2. — The French Post Offices will accept from the Chinese Post Offices mails, closed or a decouvert, 
 destined for Chinese, French, or foreign Post Offices established in or out of China, and will 
 undertake to transmit them to destination by any means of transport at the disposal of the French 
 Administration. 
 
 3. — Each Administration will support the cost of maintenance of the transport services, ordinary 
 or special, which it may establish for the carriage of mails, but will be entitled to claim payment of 
 the transit charges hereunder stipulated in Article V. 
 
 ARTICLE III. — Remitting of Mails. — i. — The remitting of mails, closed or d decouvert, from 
 one Administration to the other w-ill take place at the Offices or any other authorised places for 
 exchange and will be made from hand to hand between agents regularly appointed for this duty. 
 
 2. — The duplicate copy of the Way Bill, called Part, brought by the remitting agent and indicating 
 the number of packages or bags remitted, will be at once signed by the receiving agent and handed 
 back to him as acknowledgment of receipt. Inside each package or bag a Feuille d'Avis will be 
 enclosed, containing the particulars called for in Article [XX of the " Reglement " appended to the 
 International Convention of Washington] XXI of the " Reglement d'Execution " of the International 
 Convention of Rome. 
 
 3. — From the moment this agent has taken delivery of the mails and issued an acknowledgment 
 of receipt without making any observation as to the number or condition of the packages or bags, the 
 despatching Office will be discharged of further responsibility, which thereafter will lie with the 
 receiving Office. 
 
 ARTICLE IV. — Postage and Delivery. — i. — Each Administration will use its own postage 
 stamps to frank any mail matter, whatever its destination, originating in its own Offices, and will 
 deliver to the addressees free of additional charge in all the localities where it has a Post Office any 
 mail matter, whatever its origin, w-hich arrives duly and sufficiently prepaid by means of postage 
 stamps of the other Administration. 
 
 2. — Each Administration fixes its tariffs. It is understood that the French Administration will 
 not apply to mail matter exchanged between its own Offices in China taxes lower than those adopted 
 by the Chinese Administration. On the other hand, the Chinese Administration will comply, in 
 respect of any mail matter it may exchange with the Union countries through the French Offices, 
 with the stipulations of Article 5 of the [Convention of Washington] International Convention of 
 Rome. The two .Administrations will communicate to each other their tariffs. 
 
 3. — Mail matfer destined for places inland where no Post Office, Chinese or French, is yet opened 
 will be sent to destination through private agencies at the risk and expense of the addressees. 
 
 4. — Should it happen that, on Chinese territory and in the same town, both a Chinese and a 
 French Post Office exist, each Office will undertake the delivery of any mail matter arriving to its
 
 NUMBER 1906/3 : MAY 26, 1906 589 
 
 address. But the French Post Offices may continue, by payment of an adequate tax, to avail 
 themselves of the services of the Chinese Offices to ensure the distribution of tiieir mail matter. 
 
 ARTICLE V. — Transit Charges. — i. — Closed mails [and correspondence d decoinert] despatched 
 on account of Chinese or French Post Offices by means of the transport services of one or the other 
 of the contracting Administrations will be submitted, to the benefit of the Administration whose 
 services carry these mails, to the following transit charges: — 
 
 (a.) Within the Chinese Empire and along the littoral of China, foreign bordering countries 
 included, when the distance docs not exceed 1,500 nautical miles, and when both the 
 Chinese and the foreign ports are united by the same line of steamers — 
 
 1°. For territorial transit by rail, and also for maritime transit not exceeding 
 300 nautical miles, [2 francs] 1 franc 50 centimes per kilogramme of letters 
 or postcards, and [25] io centimes per kilogramme of other articles; 
 2°. For territorial transit by courier, and also for maritime transit exceeding 
 300 nautical miles, [5] 4 francs per kilogramme of letters and postcards, 
 and 50 centimes per kilogramme of other articles. 
 (&.) Outside of the Chinese Empire, for any transport of mails other than the categories 
 provided for in the preceding paragraph, (a.): 
 
 1°. For territorial or maritime transit, the amounts, per kilogramme of letters 
 or other articles, fixed by Article [4 of the " Convention Principale " of 
 Washington, calculated, according to distances and the countries traversed, 
 in the Table E published by the contracting Administrations'] 4, § 3, of the 
 " Convention Principale " of Rome. 
 2°. Correspondence passing a decouvert is subject to the following transit charges 
 per article, and irrespective of weight or destination, namely: 
 
 Letters 6 centimes each. 
 
 Postcards iV2 centimes each. 
 
 Other articles 2^2 centimes each. 
 
 [2°.] 3°. As to correspondence franked by means of Chinese postage stamps des- 
 tined for France and her dependencies or for foreign countries [whether 
 despatched closed or d decouvert,'] in transit through the French Post 
 Offices, they will be forwarded to their respective destinations in the same 
 manner and liable to the same transit charges as the correspondence 
 remitted to the French Offices by the other Administrations of the Postal 
 Union. The transit charges will be guaranteed by the French Administra- 
 tion and periodically refunded by the Chinese Administration. 
 
 2. — It is understood — 
 
 1°. That any territorial transit by rail is free of charge if the Administration concerned 
 is already entitled to claim, on the mail matter thus conveyed by rail, refund for 
 maritime transit; 
 2°. That any transit on the Yangtze-kiang is considered as maritime transit; 
 3°. That any mail matter originating from foreign countries, remitted a decouvert at the 
 place of landing by a French Office to a Chinese Office or vice versa, to be transmitted 
 to inland places, will be exempted from transit charges; 
 4°. That the reductions or exemptions stipulated in Article 4 of the Convention of [Wash- 
 ington] Rome will also apply to the present Arrangement. 
 
 3. — Charges for transport of mails by means of services or ships independent of the French or 
 Chinese Administrations will be settled under the terms agreed between the interested parties. 
 
 ARTICLE VI. — Men-of-War Mails. — The closed mails handed in to the Chinese Offices by a 
 French bureau for transmission to the commander of a man-of-war of whatever nationality, or by 
 the commander of a man-of-war of whatever nationality for transmission to a French bureau, will 
 be subjected, in account with the French bureau sender or receiver, to the transit charges enumerated 
 in the preceding Article. 
 
 ARTICLE VII. — Transit Statistics. — The balancing of the transit charges account will necessi- 
 tate an annual settlement between the two Administrations, to be calculated on the basis of statistics 
 taken annually under the rules laid down in the Conventions of the Postal Union in force at the 
 time. These statistics will be taken each year during the first 28 days of the months of May and 
 November alternately. 
 
 ARTICLE VIII. — Parcel Post. — i. — The exchange of parcels, as also the exchange of mone> 
 orders, letters with declared value of contents, etc., will be made the subject of special arrangement* 
 as soon as the principal Arrangement is put in force. 
 
 2.- — Meanwhile, in order to offer immediate facilities for the exchange of parcels, the Chinese 
 Administration is willing — 
 
 (o.) To transmit and distribute, on condition that the addressee will pay the domestic tariff, 
 
 the parcels — ordinary, insured, or taxed with trade charges — emanating from Union 
 
 countries handed in by a French Office; 
 (b.) To transmit to French Offices, after payment of the domestic tariff by the sender, the 
 
 parcels — ordinary, insured, or taxed with trade charges — destined for Union countries 
 
 which may be handed in by the public. 
 
 3. — As to domestic parcels emanating from or destined for Kwangchowwan, and also the parcel* 
 transmitted in closed bags from one Office to the other by the Chinese or French Offices, they will 
 be provisionally transmitted and distributed subject to the conditions of ulterior arrangements between 
 the two Administrations. 
 
 ARTICLE IX. — Responsibility and Liability. — i. — In case of the loss of a registered article 
 of correspondence or of a closed mail, the Administration which has undertaken its transport and 
 cannot account for its delivery or transmission to the other Administration will be held responsible 
 for the lost registered article or the registered articles contained in the closed mail, within the 
 limits of Article 8 of the " Convention Principale " of [Washington and of Article XXIII of the 
 " Reglement d'Ordre et de Detail " thereto appended] Rome and of Article XXV of the " R^glement 
 d'Execution " of that Convention. 
 
 2. — The loss or spoliation of a parcel will give right to an indemnity, which may amount to 
 the equivalent of the loss or damage suffered, but can in no case exceed 25 francs for non-insured 
 parcels or 1,000 francs for insured parcels. 
 
 3. — The protection granted above to registered articles and parcels will not extend beyond the 
 working limits of the postal services of the contracting Administrations, and will not cover losses 01 
 damages arising from cases of force majeure such as tempest, shiijwreck, war, brigandage, etc. 
 
 ARTICLE X. — Notice of Changes in Organisation. — The Postal Administrations of China
 
 590 CHINA TREATIES AND AGREEMENTS 
 
 and France will communicate to each other the changes which may take place in the organisations 
 and arrivals and departures of their respective services for the transport of mails, whenever notice 
 of such changes may prove useful to the two Administrations or to the Foreign Administrations that 
 have recourse to their intermediation. 
 
 ARTICLE XI. — Extent of Present Arrangement. — The Postal Administration of China, though 
 it has not yet subscribed to the treaties of the Universal Postal Union, hereby agrees to abide, as far 
 as the present Arrangement is concerned, by the stipulations of the " Convention Principale " and 
 of the 1" Reglement d'Ordre et de Detail," concluded at Washington on the isth June 1897] 
 " Reglement d'Execution " signed at Rovw on the 26th May 1906. 
 
 The present Arrangement will thus form, with the documents of the Postal Union mentioned 
 above, the whole of the dispositions to be, as far as possible, observed in the postal relations between 
 the Chinese Post Offices and the French Post Offices. 
 
 ARTICLE XII. — Duration of Arrange.ment. — The present Arrangement will be gradually put 
 in force as soon as possible, and will remain in force for an indeterminate period. The two Adminis- 
 trations may, however, at any time introduce in it any such modifications as they, on consultation, 
 may find necessary, or bring the Arrangement to an end by giving notice six months in advance. 
 
 ADDENDUM. — A difference of opinion having arisen between the Postal Administrations of 
 France and China regarding the intention and scope of the Arrangement come to between tliein and 
 signed at Peking on the 3rd February 1900, it is understood that henceforward the Arrangement shall 
 not apply to correspondence a decouvert originating in China and to be distributed by the Chinese 
 Service. No change is made in the stipulations regarding closed mails. 
 
 N.B. — The changes in the text of the Arrangement, as set forth above, from the wording between 
 brackets [ ] to that in italics, as well as that of the Addendum, have been arranged between the 
 French Minister and the Inspector General of Customs and Posts by an exchange of despatches, of 
 which those from the French Minister are dated the 21st and the 30th January 1908 and that from 
 the Inspector General the 28th January 1908. 
 
 France. 
 
 ARRANGEMENT REGULATING THE EXCHANGE OF POSTAL PARCELS BETWEEN THE 
 ADMINISTRATION OF POSTS AND TELEGRAPHS OF FRANCE AND THE ADMINIS- 
 TRATION OF CUSTOMS AND POSTS OF CHINA. 
 
 October 21st, 1904 
 
 (Translation) 
 
 The exchange of postal parcels between the Administration of Posts and Telegraphs of France 
 and the Administration of Customs and Posts of China, provided for in Article VIII of the Postal 
 Arrangement concluded on the 3rd February 1900 between the two above-mentioned Administrations, 
 shall be regulated according to the conditions hereunder stated. 
 
 ARTICLE I. — Weight of Parcels. — The maximum weight of a parcel, whether of declared 
 value or not, shall not exceed 10 kilogrammes. 
 
 However, there shall be an exception made for parcels destined for Offices of the Administration 
 of Customs and Posts of China that are not connected by railway or by steamer, in which case the 
 limit shall be 3 kilogrammes; but this limit may, at any time hereafter, be raised by mutual agreement 
 between the two Administrations. 
 
 ARTICLE 2. — Di.\i ensigns of Parcels. — The postal parcels to which this Convention is for the 
 present to apply shall be those of which no dimension shall exceed one metre and fifty centimetres, 
 or the volume of which shall not exceed fifty-five cubic decimetres, except in the case of parcels up 
 to three kilogrammes and also those from three to five kilogrammes, the volume of which shall not 
 exceed twenty-five cubic decimetres, and their size sixty centimetres in any one direction. 
 
 However, parcels up to five kilogrammes, containing umbrellas, walking-sticks, charts, plans, and 
 such-like articles, shall be accepted if they do not exceed one metre long and twenty centimetres 
 broad (or thick). 
 
 The limits of dimensions and of volume herein determined may be increased by mutual agreement. 
 ARTICLE 3. — Exchange of Parcels. — Unless otherwise agreed to by the two Administrations, 
 the exchange of postal parcels shall take place through the intermediary of the French Offices 
 established in China and the Chinese Offices established in the same localities as these French Offices. 
 ARTICLE 4. — Trans.mission of Parcels. — 1°. The French Administration shall be the_ inter- 
 mediary, by means of the services it may maintain, for the exchange of parcels between China on 
 the one part and France, French colonies, and Foreign countries on the other. 
 
 2°. The Administration of Customs and Posts of China engages on its part to assure the 
 transmission by its services of all parcels that shall be handed to it by the French Administration. 
 
 ARTICLE 5. — Tariffs and Postage. — Each Administration shall itself determine the taxes and 
 duties to be collected on postal parcels forwarded by its own Offices. 
 
 The prepayment of postage on postal parcels shall be obligatory before departure. However, 
 the fee for delivery shall be payable by the addressee. 
 
 Moreover, parcels destined for places in China not connected by railway or by steamer may be 
 further charged for transmission beyond railway or steamer services, at the expense of the addressee, 
 supplementary taxes the amount of which shall be determined by the Administration of Customs and 
 Posts of China. 
 
 It is understood that the French Administration shall not tax parcels exchanged between its 
 Offices in China at rates lower than those charged by the Chinese Administration of Posts. 
 
 ARTICLE 6. — Transit Charges. — 1°. The Administration of Customs and Posts of China shall 
 pay to the Administration of Posts and Telegraphs of France the following charges: — 
 For each parcel destined for continental Frilnce: 
 
 Up to 5 kilogrammes Frs. 3.15 
 
 From 5 to 10 kilogrammes ,, 4.80 
 
 For each parcel destined for Algeria or for Corsica, the following additional charges: 
 Fr. 0.50 for parcels up to 5 kilogrammes. 
 Fr. 0.85 for parcels from 5 to 10 kilogrammes. 
 For parcels destined for French colonies and for Foreign countries, the charges indicated 
 in Table A, drawn up by the Administration of French Posts in accordance with 
 Article i of the " Reglement de detail et d'ordre," for the fulfilment of the Interna- 
 tional Convention of Washington.
 
 NUMBER 1906/3 : MAY 26, 1906 591 
 
 2°. The Administration of Posts of France shall pay to the Administration of Customs and 
 Posts of China for tlie transmission of each postal parcel handed to this Administration to be 
 forwarded by its services the following charges: — 
 
 rof.25 for all maritime transit not exceeding 500 nautical miles, or 
 for all territorial transit not exceeding 1,000 kilometres. 
 TTr. tn r \ri^r,<rrr,m,-npc J 0^-50 for all maritime transit of from 500 to 1,000 nautical miles, 
 up 10 5 Kilogrammes^ ^^ ^^^ ^,j jg^ritorial transit of from 1,000 to 2,000 kilometres. 
 
 Lif. for all maritime transit exceeding 1,000 nautical miles, or for 
 all territorial transit exceeding 2,000 kilometres. 
 
 r of.40 for all maritime transit not exceeding 500 nautical miles, or 
 I for all territorial transit not exceeding 1,000 kilometres. 
 
 From 5 to 10 kilo- J of./s for all maritime transit of from 500 to 1,000 nautical miles, 
 grammes. } or for all territorial transit of from 1,000 to 2,000 kilometres. 
 
 Lif.50 for all maritime transit exceeding 1,000 nautical miles, or for 
 all territorial transit exceeding 2,000 kilometres. 
 
 ARTICLE 7. — Parcels of Declared Value. — Besides the transit charges, the Administration of 
 origin shall pay, in respect of insurance fees on parcels of declared value, to the other Administration, 
 and, if need be, to each Administration participating in the transmission when such Administration 
 is under guarantee of responsibility, a proportional part of the determined insurance fee, viz. : for 
 300 francs or fraction of 300 francs, of.05 centimes for territorial transit, and of. 10 centimes for 
 maritime transit. 
 
 For parcels destined for Corsica and for Algeria, the share due to the French Administration 
 shall be of.35 centimes per 300 francs. 
 
 ARTICLE 8. — AcKNOWLEDG.MENT OF RECEIPT. — The sender of a postal parcel may obtain an 
 acknowledgment of receipt of his parcel by paying a fee that shall not exceed 25 centimes. 
 
 The same fee may be charged when, subsequent to posting, inquiries are made about a parcel, 
 provided the special fee for an acknowledgment of receipt has not been paid already. 
 
 This charge shall accrue entirely to tlie Administration of origin. 
 
 ARTICLE 9. — Delivery and Custo.ms formalities. — It shall be allowable for the country of 
 destination to collect from the addressee a fee that shall not exceed of.25 centimes per parcel for 
 delivery and Customs formalities. 
 
 ARTICLE 10. — Annulation of Customs Duties. — In the case of the re-transmission or of the 
 return of a parcel to the Office of origin, the Customs duties that have been paid on the parcel in 
 the country of first destination shall be annulled. 
 
 ARTICLE II. — Responsibility. — 1°. Except in cases of force majeure, if a postal parcel be lost, 
 despoiled, or damaged, the sender or, in his default or by his request, the addressee shall be entitled 
 to an indemnity corresponding to the actual amount of the loss, the spoliation, or the damage, unless 
 this damage be caused by the fault or by the negligence of the sender, or be due to the nature of 
 the parcel itself; but this indemnity shall not exceed 25 francs for ordinary parcels up to 5 kilo- 
 grammes, 40 francs for parcels from 5 to 10 kilogrammes, and the declared value for parcels of 
 declared value. 
 
 Besides, the sender of a lost parcel shall be entitled to refund of the postage on the parcel and 
 also to the postage expenses connected with making the inquiries when the cause of the claim is 
 due to the fault of the Post Office. However, the insurance fee shall be retained by the Postal 
 Administrations. 
 
 2°. The obligation to pay the indemnity shall be incumbent upon the Administration of the Office 
 of origin; it shall then rest with this Administration to prefer a claim against the responsible 
 Administration, that is to say, against the Administration upon whose territory or in whose service 
 the loss, spoliation, or damage shall have taken place. 
 
 3°. Until proved to the contrary, the responsibility shall remain with the Administration which, 
 having received the parcel without making any remark, can establish neither its delivery at its 
 destination nor, as may happen, its regular transmission to the next Administration. 
 
 4°. The payment of the indemnity by the Office of origin shall be made as soon as possible, 
 and not later than one year after the date of the claim. The responsible Office shall refund without 
 delay to the Office of origin the amount of the indemnity paid by the latter. 
 
 The Office of origin shall be authorised to indemnify the sender on behalf of the intermediary 
 Office or of the Office of destination which, having been regularly notified, shall have allowed one 
 year to elapse without having settled the claim. Moreover, in the case of an Office whose responsibility 
 shall be duly established which shall decline altogether to pay the indemnity, it shall undertake to 
 pay, besides the indemnity, the accessory expenses resulting from undue delay in making the payment. 
 
 5°. It is understood that a claim shall be admitted only if made within one year from the date 
 of posting the parcel; after this limit the claimant shall not be entitled to any indemnity. 
 
 6°. If the loss or damage happen during transmission between the Offices of exchange of the 
 two Administrations, thus rendering it impossible to decide upon which of the two territories the act 
 took place, the two Administrations concerned shall share the loss equally. 
 
 7°. The Administrations shall cease to be responsible for postal parcels delivery of which shall 
 have been taken by the persons entitled to receive them. 
 
 ARTICLE 12. — Offices authorised to exchange Parcels. — The Postal Administrations of 
 France and of China shall designate the Offices or the localities at which the exchange of postal 
 parcels is to be allowed. 
 
 They shall supply each other with a list of the places open to this service. 
 
 ARTICLE 13. — Articles prohibited. — Parcels shall not contain any letter or note, either sealed 
 or open, that might establish a correspondence between the sender and the addressee. Exception 
 may be made only in the case of invoices, price lists, and other open documents that relate exclusively 
 to the contents of the parcel. 
 
 The sender shall also be forbidden to enclose in a parcel any explosive or inflammable material 
 and generally all articles the transmission of which presents any danger whatsoever, or the 
 importation of which shall be contrary to the laws or to Customs regulations, or otherwise not 
 authorised. 
 
 Parcels containing money, articles made of gold or of silver, and other precious articles, must 
 have their value declared. 
 
 In case of infraction of these above rules, the parcel shall simply be returned to the place of 
 origin. 
 
 The tvv'o Administrations shall communicate to each other a list of things and products forbidden 
 importation into their territories. 
 
 ARTICLE 14. — Suspension of the Service. — In extraordinary circumstances of a nature to justify 
 the measure, each Administration may temporarily suspend the parcel post service, either entirely 
 or partially, on condition that immediate notice be given, if need be by telegraph, to the other 
 Administration concerned.
 
 592 CHINA TREATIES AND AGREEMENTS 
 
 ARTICLE 15. — Fulfilment of the Convention. — The Postal Administrations of France and 
 of China shall settle all matters of detail and of disposition, in order to ensure the fulfilment of 
 the present Convention. 
 
 They shall supply to each other a list of the countries with which they may respectively serve as 
 intermediaries. 
 
 Especially shall the Postal Administration of France undertake to enter into negotiations with 
 railway and navigation companies, in order to assure the complete fulfilment by these companies of 
 all the clauses of the said Convention, and also to organise the service of exchange. The French 
 Administration shall act for the companies as intermediary in all their relations with the Administra- 
 tion of Customs and Posts of China. 
 
 ARTICLE 16. — General Provision. — The internal legislation of each of the contracting countries, 
 as well as the dispositions of the International Convention of Washington and of the " Reglement de 
 detail " thereto annexed, shall remain applicable to all points not herein provided for or not contrary 
 to the present Convention. 
 
 ARTICLE 17. — Duration of the Present Convention. — The present Arrangement shall be put 
 into operation from a day mutually to be agreed upon by both Administrations, and it shall remain 
 in force for an indefinite period. However, the contracting parties reserve to themselves the right 
 to make at any time such modifications therein as they may by mutual agreement judge necessary, or 
 to terminate the Arrangement by giving at least six months notice in advance. 
 
 Great Britain (Hongkong). 
 
 ARRANGEMENT SETTING FORTH THE RELATIONS ESTABLISHED BETWEEN THK 
 POSTAL ADMINISTRATION OF HONGKONG AND THE POSTAL ADMINISTRATION 
 OF CHINA. 
 
 December 12th and 2gth, 1904 
 
 ARTICLE I. — Exchange of Mails. — i. — There shall be between the Postal Administration of 
 Hongkong (which includes the British Postal Agencies operating in the Treaty-port Settlements of 
 China) and the Postal Administration of China a regular exchange of postal articles of all kinds — 
 ordinary, registered, international, or in transit, closed or a decouvert — by any means of transport, 
 ordinary or special, now established or hereafter to be established, which each Administration may 
 have at its disposal. 
 
 2. — The exchange of mails between the two Administrations will take place through the British 
 Postal Agencies in China and the Chinese Post Offices established in the same localities as these 
 British Postal Agencies, or, where no British Postal Agency exists, between the British and Chinese 
 Post Offices at Shanghai for mails to and from river and coast ports north of Shanghai, but, for 
 mails to and from southern ports, direct between Hongkong and the Chinese Post Offices at these 
 ports, which will be specially designated. Other Offices may, on agreement between the two Adminis- 
 trations, be designated for the exchange of mails wherever postal requirements may demand it. 
 
 ARTICLE II. — Transport of Mails. — i.— The Chinese Post Offices will accept from Hongkong 
 and the British Postal Agencies in China mails, closed or a decouvert, destined for Chinese or Foreign 
 Post Offices established in or out of China, and will undertake to transmit them to destination by 
 any means of transport at the disposal of the Chinese Administration. 
 
 2. — The Hongkong Post Office or the British Postal Agencies in China on its behalf will accept 
 from the Chinese Post Offices mails, closed or d decouvert, destined for Chinese or Foreign Post 
 Offices established in or out of China, and will undertake to transmit them to destination by any 
 means of transport at the disposal of the Hongkong Administration. 
 
 3. — Each Administration will support the cost of maintenance of the transport services, ordinary 
 or special, which it may establish for the carriage of mails, but will be entitled to claim payment 
 of the transit charges hereunder stipulated in Article V. 
 
 ARTICLE III. — ReiMItting of Mails. — i.^The remitting of mails, closed or a decouvert, from 
 one Administration to the other will take place at the Offices or any other authorised places for 
 exchange, and will be made from hand to hand between agents regularly appointed for this duty. 
 
 2. — The duplicate copy of the Way Bill, called Part, brought by the remitting agent and indicating 
 the number of packages or bags remitted, will be at once signed by the receiving agent and handed 
 back to him as acknowledgment of receipt. Inside each package or bag a Feuille d'Avis will be 
 enclosed, containing the particulars called for in Article XX of the Reglement appended to the 
 International Convention of Washington. 
 
 3. — From the moment this agent has taken delivery of the mails and issued an acknowledgment 
 of receipt, without making any observation as to the number or condition of the packages or bags, 
 the despatching Office will be discharged of further responsibility, which thereafter will lie with the 
 receiving Office. 
 
 ARTICLE IV. — Postage and Delivery. — i. — Each Administration will use its own postage 
 stamps to frank any mail matter, whatever its destination, originating in its own Offices, and will 
 deliver to the addressees, free of additional charge in all the localities where it has a Post Office, 
 any mail matter, whatever its origin, which arrives duly and sufficiently prepaid by means of postage 
 stamps of the other Administration. 
 
 2. — Each Administration fixes its tariffs. It is understood that the Hongkong Administration will 
 not apply to mail matter exchanged between its own Offices in China taxes lower than those adopted 
 by the Chinese Administration. On the other hand, the Chinese Administration will comply, in 
 respect of any mail matter it may exchange with the Union countries through the British Offices, 
 with the stipulations of Article 5 of the Convention of Washington. The two Administrations will 
 communicate to each other their tariffs. 
 
 N.B. — The Imperial Chinese Post Office undertakes the transmission and delivery, free of charge, 
 to any place in China where one of its establishments is or may hereafter be established, 
 of all letters of Foreign provenance handed over to it d decouvert by the Hongkong Post 
 Office or its Agencies, if fully prepaid at Union rates, or, if originated in Hongkong, at a 
 specified tariff. But a domestic rate will be charged on other articles of mail matter — 
 newspapers, books, parcels, etc. — if addressed to inland places not accessible by railway 
 or steamer, to be collected from the addressee before delivery. 
 
 3. — Mail matter destined for places inland where no Post Office, Chinese or British, is yet 
 .opened will be sent to destination through private agencies at the risk and expense of the addressee. 
 
 4. — Should it happen that, on Chinese territory and in the same town, both a Chinese and a 
 British Postal Agency exist, each Office will undertake the delivery of any mail matter arriving to 
 its address. But the Hongkong Administration may, by payment of an adequate tax, avail itself of 
 the services of the Chinese Offices to ensure the distribution of mail matter received at the British 
 Postal Agencies.
 
 NUMBER 1906/3: MAY 26, 1906 593 
 
 ARTICLE V. — Transit Charges. — i. — Closed mails and correspondence d decouvert despatched 
 on account of Chinese or Hongkong Post Offices by means of the transport services of one or the 
 other of the contracting Administrations will be submitted, to the benefit of the Administration whose 
 services carry these mails, to the following transit charges: — 
 
 (a.) Within the Chinese Empire and along the littoral of China, Foreign bordering countries 
 included, when the distance does not exceed 1,500 nautical miles, and when both 
 the Chinese and the Foreign ports are united by the same line of steamers: 
 
 1°. For territorial transit by rail, and also for maritime transit not exceeding 
 300 nautical miles, 2 francs per kilogramme of letters or postcards, and 
 25 centimes per kilogramme of other articles; 
 2°. For territorial transit by courier, and also for maritime transit exceeding 
 300 nautical miles, 5 francs per kilogramme of letters and postcards, and 
 so centimes per kilogramme of other articles. 
 (&.) Outside of the Chinese Empire, for any transport of mails other than the categories 
 provided for in the preceding paragraph, (n.): 
 
 1°. For territorial or maritime transit, the amounts, per kilogramme of letters 
 or other articles, fixed by Article 4 of the *' Convention Principale " of 
 Washington, calculated, according to distances and the countries traversed, 
 in the Table E published by the contracting Administrations; 
 2". As to correspondence franked by means of Chinese postage stamps destined 
 for the United Kingdom and its Colonies, Possessions, and Agencies, or 
 for Foreign countries, whether despatched closed or a decouvert, in transit 
 through Hongkong and/or the British Postal Agencies, they will be forwarded 
 to their respective destinations in the same manner and liable to the same 
 transit charges as the correspondence remitted to the Hongkong Adminis- 
 tration by the other Administrations of the Postal Union. The transit 
 charges will be guaranteed by the Hongkong Administration and periodically 
 refunded by the Chinese Administration. 
 
 2. — It is understood — 
 
 1°. That any territorial transit by rail is free of charge if the Administration concerned 
 is already entitled to claim, on the mail matter thus conveyed by rail, refund for 
 maritime transit; 
 
 2°. That any transit on the Yangtze-kiang is considered as maritime transit; 
 
 3°. That mail matter originating from Foreign countries, remitted a decouvert at the place 
 of landing by Hongkong or the British Postal Agencies to a Chinese Office or vice 
 versa, to be transmitted to inland places, will be exempted from transit charges; 
 
 4°. That the reductions or exemptions stipulated in Article 4 of the Convention of 
 Washington will also apply to the present Arrangement. 
 
 3. — Charges for transport of mails by means of services or ships independent of the Hongkong or 
 Chinese Administrations will be settled under the terms agreed between the interested parties. 
 
 ARTICLE VI. — Men-of-War Mails. — The closed mails handed in to the Chinese Offices by a 
 British Postal Agency for transmission to the commander of a man-of-war of whatever nationality, 
 or by the commander of a man-of-war of whatever nationality for transmission to Hongkong or 
 British Postal Agency, will be subjected, in account with the Hongkong Administration, to the 
 transit charges enumerated in the preceding Article. 
 
 ARTICLE V'll. — Transit Statistics. — The balancing of the transit charges account will 
 necessitate an annual settlement between the two Administrations, to be calculated on the basis 
 of statistics taken annually under the rules laid down in the Conventions of the Postal Union in 
 force at the time. These statistics will be taken each year during the first 28 days of the months 
 of May and November alternately. 
 
 ARTICLE \TII. — Parcel Post. — i. — The exchange of parcels, as also the exchange of money 
 orders, letters with declared value of contents, etc., will be made the subject of special arrangements 
 as soon as the principal Arrangement is put in force. 
 
 ARTICLE IX. — Responsibility and Liability. — 1. — In case of the loss of a registered article of 
 correspondence or of a closed mail, the Administration which has undertaken its transport and cannot 
 account for its delivery or transmission to the other Administration will be held responsible for 
 the lost registered article or the registered articles contained in the closed mail, within the limits of 
 Article 8 of the " Convention Principale " of Washington and of Article XXIII of the " Reglement 
 d'Ordre et de Detail " thereto appended. 
 
 2. — The loss or spoliation of a parcel will give right to an indemnity, which may amount to 
 the equivalent of the loss or damage suffered, but can in no case exceed 25 francs for non-insured 
 parcels or 1,000 francs for insured parcels. 
 
 3. — The protection granted above to registered articles and parcels will not extend beyond the 
 working limits of the postal services of the contracting Administrations, and will not cover losses or 
 damages arising from cases of force majeure, such as tempest, shipwreck, war, brigandage, etc. 
 
 ARTICLE X. — Notice of Changes in Organisation. — The Postal Administrations of China and 
 Hongkong will communicate to each other the changes which may take place in the organisation and 
 arrivals and departures of their respective services for the transport of mails, whenever notice of 
 such changes may prove useful to the two Administrations or to the Foreign Administrations that 
 have recourse to their intermediation. 
 
 ARTICLE XI. — Extent of Present Arrangement. — The Postal Administration of China, 
 though it has not yet subscribed to the Treaties of the Universal Postal Union, hereby agrees to 
 abide, as far as the present Arrangement is concerned, by the stipulations of the " Convention 
 Principale" and of the "Reglement d'Ordre et de Detail," concluded at Washington on the 15th 
 June 1897. 
 
 The present Arrangement will thus form, with the documents of the Postal Union mentioned 
 above, the whole of the dispositions to be, as far as possible, observed in the postal relations between 
 the Chinese Post Offices and Hongkong and the British Postal .-Ngencies in China. 
 
 ARTICLE XII. — Duration of Arrange.ment. — The present .-\rrangement will be gradually put 
 in force as soon as possible, and will remain in force for an indeterminate period. The two 
 Administrations may, however, at any time introduce in it any such modifications as they, on 
 consultation, may find necessary, or bring the Arrangement to an end by giving notice six months in 
 advance.
 
 594 CHINA TREATIES AND AGREEMENTS 
 
 Germany. 
 
 ARRANGEMENT SETTING FORTH THE RELATIONS ESTABLISHED BETWEEN THE 
 IMPERIAL POSTAL ADMINISTRATION OF GERMANY AND THE IMPERIAL POSTAL 
 ADMINISTRATION OF CHINA.* 
 
 October 25th and November 3rd, 1905 
 
 ARTICLE I. — Exchange of Mails. — i. — There shall be between the Imperial Postal Administra- 
 tion of Germany and the Imperial Postal Administration of China a regular exchange of postal 
 articles of all kinds — ordinary, registered, international, and in transit, closed or a decouvert — by any 
 means of transport, ordinary or special, now established or hereafter to be established, which each 
 Administration may have at its disposal. 
 
 2. — The exchange of mails between the two Administrations will take place through the German 
 Post Offices established in the Treaty ports and the Chinese Post Offices established in the same 
 ports. 
 
 The following are to be recognised as Offices of exchange by the Chinese Administration: the 
 German Office in the Legation quarter at Peking, under the same conditions as the other Foreign 
 Offices therein opened; the German Office at Chinan; and, temporarily, according to the special 
 understanding on that point, the German Office at W'eihsien, — both situated outside the international 
 trade mart limits; and, on the other hand, by the German Administration: the Chinese Office at 
 Tsingtau, with the understanding that that Olhce will, for the transport of its mails, avail of the 
 Shantung Railway without the intermediary of the German Office. 
 
 ARTICLE II.^Transport of Mails. — i. — The Chinese Post Offices will accept from the German 
 Post Offices mails, closed or d decouvert, destined for Chinese, German, or Foreign Post Offices 
 established in or out of China, and will undertake to transmit them to destination by the (most 
 rapid) means of transport at the disposal of the Chinese Administration (for its own sendings). 
 
 2. — The German Post Offices will accept from the Chinese Post Offices mails, closed or 
 d decouvert, destined for Chinese, German, or Foreign Post Offices established in or out of China, 
 and will undertake to transmit them to destination by the (most rapid) means of transport at the 
 disposal of the German Administration (for its own sendings). 
 
 3. — The German Office at Tsingtau will hand, d decouvert,_ to the Chinese Office the articles of 
 correspondence for the localities of the interior other than Weihsien and Chinan, and, inversely, the 
 Chinese Office will hand to the German Office the articles of correspondence from these localities 
 destined for Tsingtau. 
 
 4. — Each Administration will support the cost of maintenance of the transport services, ordinary 
 or special, which it may establish for the carriage of mails, but will be entitled to claim paymept of 
 the transit charges hereunder stipulated in Article V. 
 
 ARTICLE III. — Remitting of Mails. — i. — The remitting of mails, closed or a decouvert, from 
 
 * See § 4 of the Sinojapanese Agreement of March 26th, 1917, in regard to Postal and Tele- 
 graphic Operations at the Leased Territory of Kiaochow Bay and along the Kiao-Tsi Railway 
 (No. 1917/S, post.) 
 
 In B & F. State Papers, vol. 99, p. 954, are printed the following communications interchanged 
 between the Inspector-General of Customs and the German Minister at Peking in regard to this 
 Arrangement : — 
 
 The Inspector-General of Customs and Posts to His Excellency the German Minister. 
 
 Peking, November 4, 1905. 
 " Sir. 
 
 "I have the honour to acknowledge your letter notifying to me your approval of the Postal Agree- 
 ment concluded between our respective Administrations on the 25th October, 1905, and I join your 
 Excellency in the hope that this new instrument will yield mutual advantages to Germany and China. 
 
 "Your Excellency calls attention to three particular points, namely: — 
 
 " 1. — It is understood that the suppression of the German Post Offices in the interior of Shantung 
 will take place after the conclusion of the present Agreement, with the exception of the Offices of 
 Exchange designated in paragraph 2 of Article I, the Office of Kaomi not being withdrawn till after 
 the military evacuation of that place; 
 
 " 2. — Your Excellency's Government would be pleased to receive from the Chinese Administration 
 the assurance that German-speaking employes will be, as far as possible, used in the postal establish- 
 ments situated in the sphere of German interests in Shantung; and 
 
 " 3. — Your Excellency will recommend to your Government to exercise influence on the Shantung 
 Railway Administration to bring it to grant to the Chinese Post Office equitable conditions, proportionate 
 to those usual on other railway lines in China, for the concession of the right to use this Administra- 
 tion's lines for the transport of its despatches under the supervision of its own agents independently 
 of the German Postal Service. 
 
 " In acknowledging your Excellency's remarks on these three points I place willingly on record my 
 agreement with them; it may be well to addt however, that German-speaking employes can only be used 
 if procurable, and that the matters referred to under paragraphs i and 3 are questions which formed, 
 from the first, an essential part of the negotiations now concluded. 
 
 " I shall he glad if the question mentioned in the last paragraph of your Excellency's letter can be 
 speedily settled; it will be in the interest of the public and a simple measure of reciprocity if, as 
 desired by (Thina, the Chinese Post Office at Tsingtau is allowed to land and ship direct from or to its 
 own steamers the mails passing through that port. 
 
 " I have, etc., 
 
 " Robert Hart." 
 
 His Excellency the German Minister to the Inspector-General of Customs and Posts. 
 
 Peking, November 23, 1905. 
 
 '"' With reference to my letter dated November 3rd, 1905, I have the honour to hand to your 
 Excellency herewith one copy of the Postal Agreement concluded between our respective .\dministra- 
 tions and which was signed irv duplicate by the German Postmaster in Shanghai on November 3rd. 
 
 " The suppression of the German Post Offices in Tschingchoufu, Tschoutsun, and Kiaochow will 
 take place on the 31st of December, 1905. 
 
 I have, etc., 
 
 " A. V. MUMM."
 
 NUMBER 1906/3 : MAY 26, 1906 595 
 
 one Administration to the other will take place at the (corresponding) Offices (of exchange) or any 
 other authorised places for exchange (fixed on by mutual consent), and will be made from hand to 
 hand between agents regularly appointed for this duty. 
 
 2. — The duplicate copy of the Way Bill, called Part, brought by the remitting agent and 
 indicating the number of packages or bags remitted, will be at once signed by the receiving agent 
 and handed back to him as acknowledgment of receipt. Inside each package or bag a Feuille d'Avis 
 will be enclosed, containing the particulars called for in Article XX of the Reglement appended to 
 the Fnternational Convention of Washington. 
 
 3. — Frorn the moment this agent has taken delivery of the mails and issued an acknowledgment 
 of receipt without making any observation as to the number or condition of the packages or bags, 
 the despatching Office will be discharged of further responsibility, which thereafter will lie with 
 the receiving Office (till proved to the contrary). 
 
 ARTICLE IV. — Postage and Delivery. — i. — Each Administration will use its own postage 
 stamps to frank any mail matter, whatever its destination, originating in its own (Offices, and \v?ll 
 deliver to ' the addressees free of additional charge in all the localities where it has a Post Office 
 any mail matter, whatever its origin, which arrives duly and sufficiently prepaid by means of postage 
 stamps of the other Administration (or recognised in the countries of origin). 
 
 2. — Each Administration fixes its own tariffs. It is understood that the German Administration 
 will not aoply to mail matter exchanged between its own Offices in China taxes lower than those 
 adopted by the Chinese Administration. On the other hand, the Chinese Administration will comply, 
 in respect of any mail matter it may exchange with the Union countries through the German Offices, 
 with the stipulations of Article 5 of the Convention of W'ashington. The two Administrations will 
 communicate to each other their tariffs. 
 
 N.B. — Chinese Post Offices steam served by railways or steamers will transmit and deliver 
 without charge the international articles of correspondence duly stamped at Union rates handed to 
 them a dccoti-'crt by the German bureaux, as also those originating at, or destined for, Tsingtau, 
 stamped at the rate ruling between the German bureaux in China; but, letters and postcards 
 excepted, these articles will be liable, in the Chinese bureaux non-steam served, to the domestic 
 charge laid down in the Chinese tariff. 
 
 3. — Mail matter destined for places inland where no Post Office, Chinese or German, is yet 
 opened will be sent to destination through private agencies at the risk and expense of the addressees. 
 4- — Should it happen that, on Chinese territory and in the same town, both a Chinese and 
 German Post Office exist, each Office will undertake the delivery of any mail matter arriving to its 
 address. But the German Post Offices may continue, by payment of an adequate tax, to avail 
 themselves of the services of the Chinese Offices to ensure the distribution of their mail matter. 
 
 ARTICLE v.— Transit Charges. — i. — Closed mails and correspondence d decouvcrt despatched 
 on account of Chinese or German Post Offices by means of the transport services of one or the 
 other of the contracting Administrations wit! be submitted, to the benefit of the Administration whose 
 services carry these mails, to the following transit charges: — 
 
 (a.) Within the Chinese Empire and along the littoral of China, Foreign bordering countries 
 included,* when the distance does not exceed 1,500 nautical miles, and when both 
 the Chinese and the Foreign ports are united by the same line of steamers: 
 
 1°. For territorial transit by rail, and also for maritime transit not exceeding 
 300 nautical miles, 2 francs per kilogramme of letters or postcards, and 25 
 centimes per kilogramme of other articles; 
 
 2°. For territorial transit by courier, and also for maritime transit exceeding 
 300 nautical miles, 5 francs per kilogramme of letters and postcards, and 
 50 centimes per kilogramme of other articles. 
 (b.) Outside of the Chinese Empire.f for any transport of mails other than the categories 
 provided for in the preceding paragraph, (a.) : 
 
 1°. For territorial or maritime transit, the amounts, per kilogramme of letters 
 or other articles, fixed by Article 4 of the " Convention Principale " of 
 Washington, calculated, according to distances and the countries traversed, 
 in the Table E published by the contracting Administrations (or the lists 
 approved of by these Administrations stating the weights and categories 
 of articles transmitted). 
 
 2°. As to correspondence franked by means of Chinese postage stamps, destined 
 for the German Empire and dependencies thereof or for Foreign countries, 
 whether despatched closed or d deconvert, in transit through the German 
 Post Offices, they will be forwarded to their respective destinations in 
 the same manner and liable to the same transit charges as the corre- 
 spondence remitted to the German Offices by the other Administrations 
 of the Postal Union. The transit charges will be guaranteed by the 
 German Administration and periodically refunded by the Chinese Adminis- 
 tration. 
 
 2. — It is understood: — 
 
 1°. That any territorial transit by rail is free of charge if the Administration concerned 
 
 is already entitled to claim, on the mail matter thus conveyed by rail, refund for 
 
 maritime transit; 
 2°. That any transit on the Yangtze-kiang is considered as maritime transit; 
 3°. That mail matter originating from Foreign countries remitted d decouvert at the place 
 
 of landing by a German Office to a Chinese Office, or vice versa, to be transmitted 
 
 to inland places, will be exempted from transit charges; 
 4°. That the reductions or exemptions stipulated in Article 4 of the Convention of 
 
 Washington will also apply to the present Arrangement. 
 
 3-. — Charges for transport of mails by means of services or ships independent of the German 
 or Chinese Administrations will be settled under the terms agreed between the interested parties. 
 
 ARTICLE VI.— Men-of-War Mails.— The closed mails handed in to the Chinese Offices by a 
 German bureau for transmission to the commander of a man-of-war of whatever nationality, or by 
 the commander of a man-of-war of whatever nationality for transmission to a CJerman bureau, 
 will be subjected, in account with the German bureau, sender or receiver, to the transit charges 
 enumerated in the preceding Article. 
 
 ARTICLE VII. — Transit Statistics. — The balancing of the transit charges account will necessitate 
 an annual settlement between the two Administrations, to be calculated on the basis of statistics 
 taken annually under the rules laid down in the Convention of the Postal Union in force at the ' 
 
 * Articles of correspondence of all categories, domestic or international, 
 t Articles of correspondence destined for Union countries.
 
 596 CHINA TREATIES AND AGREEMENTS 
 
 time. These statistics will be taken each year during the first 28 days of the months of May and 
 November alternately. 
 
 ARTICLE VIII. — Parcel Post. — i.— The exchange of parcels, as also the exchange of money 
 orders, letters with declared value of contents, etc., will be made the subject of special arrangements 
 as soon as the principal Arrangement is put in force. 
 
 2. — Meanwhile, in order to offer immediate facilities for the exchange of parcels, the Chinese 
 Administration is willing: — • 
 
 (a.) To transmit and distribute, on condition that the addressee will pay the domestic 
 tariff, the parcels — ordinary, insured, or taxed with trade charges — emanating from 
 Union countries handed in by a German Office: 
 (b.) To transmit to German Ofiices, after payment of the domestic tariff by the sender, 
 the parcels — ordinary, insured, or taxed with trade charges — destined for Union 
 countries which may be handed in by the public. 
 
 3. — As to domestic parcels emanating from or destined for Tsingtau, and also the parcels trans- 
 mitted in closed bags from one Office to the other by the Chinese or German Offices, they will be 
 provisionally transmitted and distributed subject to the conditions of ulterior arrangements between 
 the two Administrations. 
 
 ARTICLE IX. — Responsibility and Liability. — i. — In case of the loss of a registered article of 
 correspondence or of a closed mail, the Administration which has undertaken its transport and 
 cannot account for its delivery or transmission to the other Administration will be held responsible 
 for the lost registered article or the registered articles contained in the closed mail, within the 
 limits of Article 8 of the " Convention Principale " of Washington and of Article XXIII of the 
 " Reglement d'Ordre et de Detail " thereto appended. 
 
 2. — The loss or spoliation of a parcel will give right to an indemnity, which may amount to the 
 equivalent of the loss or damage suffered, but can in no case exceed 25 francs for non-insured 
 parcels or 1,000 francs for insured parcels. 
 
 3. — The protection granted above to registered articles and parcels will not extend beyond the 
 working limits of the postal services of the contracting Administrations^ and will not cover losses 
 of damages arising from cases of force majeure, such as tempest, shipwreck, war, brigandage, etc. 
 
 ARTICLE X. — Notice of Changes in Organisation. — The Postal Administrations of China 
 and Germany will communicate to each other the changes which may take place in the organisation 
 and arrivals and departures of their respective services for the transport of mails, whenever notice 
 of such changes may prove useful to the two Administrations or to the Foreign Administrations that 
 have recourse to their intermediation. 
 
 ARTICLE XI. — Extent of Present Arrangement. — The Postal Administration of China, 
 though it has not yet subscribed to the Treaties of the Universal Postal Union, hereby agrees to 
 abide, as far as the present Arrangement is concerned, by the stipulations of the " Convention 
 Principale" and of the "Reglement d'Ordre et de Detail," concluded at Washington on the isth 
 June 1897. 
 
 The present Arrangement will thus form with the documents of the Postal Union mentioned 
 above, the whole of the dispositions to be, as far as possible, observed in the postal relations between 
 the Chinese Post Offices and the German Post Offices. 
 
 ARTICLE XII. — Duration of Arrangement. — The present Arrangement will be gradually put 
 in force as soon as possible, and will remain in force for an indeterminate period. The two 
 Administrations may, however, at any time introduce in it any such modifications as they, on 
 consultation, may find necessary, or bring the Arrangement to an end by giving notice at least six 
 months in advance. 
 
 Great Britain (Natal). 
 
 POSTAL ARRANGEMENT BETWEEN CHINA AND NATAL. 
 
 October 28th and December 27th, 1905 
 
 In order to establish an exchange of correspondence between China and the British Colonies in 
 South Africa, the undersigned, duly authorised for that purpose, have agreed upon the following 
 Articles : — 
 
 Article I. — There shall be a regular exchange of correspondence of all kinds between the 
 Postal Administration of China and the Postal Administration of Natal — via Durban or other 
 designated place or places in Natal for correspondence from China, and via any Chinese Treaty 
 port for correspondence from Natal. 
 
 Article II. — Each Administration shall be entitled to send through the intermediate agency of 
 the other either closed mails or correspondence a decoiivert to any other country with which the 
 latter Administration has postal relations. The charges payable by the despatching Administration 
 in respect of such transit correspondence shall be at the rates prescribed by the Universal Postal 
 Union Convention and settled yearly on the basis of statistics taken as may be agreed upon hereafter. 
 
 Article III. — Each Administration shall use its own postage stamps and maintain Union rates 
 for all articles of correspondence exchanged between them; full prepayment at these rates shall 
 entitle the articles to be delivered free of all charges irrespective of their destination, except that, 
 in China, correspondence addressed to places beyond Chinese Post Office lines shall be forwarded to 
 destination through private agencies at the risk and expense of the addressees, and that heavy mail 
 articles, viz., newspapers, printed matter, and commercial samples, addressed to places not accessible 
 by railway or steamer, shall be liable on delivery to an additional rate fixed by tariff and calculated 
 to cover courier expenses. 
 
 Article IV. — The stipulations of the Union Conventions and Arrangements concluded at 
 Washington shall be applicable as regards every postal relation between China and Natal not 
 provided for by the ,^rticlcs above mentioned. 
 
 Article V. — This Arrangement may end on giving six months notice in advance.
 
 NUMBER 1906/3 : MAY 26, 1906 597 
 
 Russia. 
 AGREEMENT CONXERNING THE POSTAL RELATIONS BETWEEN RUSSIA AND CHINA." 
 
 February 6/i9th, 1909 
 
 ARTICLE I.; — Exchange of Mails. — i. — There shall be established between the Postal Adminis- 
 trations of Russia and China a regular excliange of mail matter, including both ordinary and 
 registered letters (letters, postcards, printed matter, commercial papers, and samples), whether sent 
 direct in closed mails or a dcconvert. This exchange shall take place by any means of transport, 
 ordinary or special, now established or hereafter to be established, which each Administration may 
 have at its disposal. 
 
 2.^The exchange of mails between the two Administrations will take place between their 
 respective Post Offices in the conventional towns of China and Manchuria open to foreign trade, 
 to wit: Peking (Legation Quarter), Tientsin, Chefoo, Hankow, Shanghai, Harbin, Chanchunfu 
 (Kuanch'engtsze), Manchuli, and Pogranitschnaia, on condition, however, that Chinese Post Offices 
 in -Manchuria will make use of the Chinese Eastern Railway for the transport of their courier mails 
 without the intermediary of the Russian Offices and on the basis fixed by a Special Agreement which 
 shall be concluded with this object (in respect of the transport of courier mails not liable to transit 
 charges) between the Chinese Postal Administration and the afore-mentioned Railway Company 
 through the good offices of the Head Office of the Russian Posts. 
 
 ARTICLE II. — Transport of Mails. — i. — The Chinese Post Offices will accept from the Russian 
 Post Offices mails destined for Chinese or Russian Post Offices or for foreign Post Offices 
 established in China, and will forward the said mails to their destination by the most rapid means 
 of transport at the disposal of the Chinese Administration. 
 
 The Chinese Administration will likewise accept, either to transport or remit, without extra 
 postage, to all parts of China where are now established or shall hereafter be opened Offices or 
 Agencies controlled by its Administration, mails originating in foreign countries which shall be 
 handed over to it d dcconvert by the Russian Post Office, provided that these mails are fully franked, 
 in conformity with the international tariff, whether in Russian stamps, in case they have been 
 posted in Russian Offices, or in the stamps of the country of origin, should they originate in a third 
 country. As regards mails destined for the interior of China, where as yet the Chinese Post 
 Office is not in operation, they will be subject to an additional charge to be levied from the addressee 
 as special transport fee. 
 
 In addition, and except in the case of ordinary letters and postcards, a special inland fee will 
 be charged for heavy and cumbersome mail matter, such as newspapers, books, etc., destined for 
 inland places not accessible by railway or steamer. 
 
 2. — The Russian Post Offices will accept from Chinese Post Offices mails destined for Russian, 
 Chinese, or foreign Post Offices established in or out of China and will transmit them to destination 
 by the most rapid means of transport at the disposal of the Russian Post Office. 
 
 The aforesaid Office vv'ill, moreover, accept, both to transport and remit, without extra franking, 
 mails destined for countries other than China which shall be handed over to it by the Chinese Office 
 & decoiivert,^ if these mails are completely franked by means of Chinese stamps, in conformity with 
 the international tariff. 
 
 3. — Mails from Russian Post Offices destined for transportation by steamers belonging to the 
 Chinese Postal Service or railways under the control of the Chinese Government must be transmitted 
 through the intermediary of the Chinese Offices of exchange; mails from Chinese Post Offices destined 
 for transportation by steamers in the Russian Postal Service or by railways under the control of the 
 Russian Government rpust be transmitted through the intermediary of the Russian Offices of exchange 
 (with the exception specified in Article I, paragraph 2, regarding Chinese courier mails transported 
 free of charge). 
 
 The method of transport for mails will be settled by mutual agreement between the Russian and 
 Chinese Post Offices in such a way as to obviate any delay in the transport of the mails. 
 
 ARTICLE III. — Transit Charges. — i. — Mails in transit forwarded by means of the services 
 of one or the other of the contracting Administrations will be submitted, to the benefit of the 
 Administration whose services carry these mails, to the following transit charges: — 
 
 * French text printed in Soglashenia, p. 65, where it is accompanied by exchange of notes 
 of which the purport is indicated by the following translation of the note addressed by the Russian 
 Minister at Peking to the Inspector General of Imperial Posts of China, under date of February 4/17, 
 1909: 
 
 " I have the honor to acknowledge the receipt of the note that your Excellency was so good 
 as to address to me under date of February 17, on the subject of the three points examined 
 separately from the postal arrangement between our two respective administrations, and upon which 
 we have come to an agreement, to wit: 
 
 " I St. — For the purpose of avoiding all discussion in future as to the payment of postage upon 
 mail originating from the treaty towns of Manchuria or other provinces, it is agreed that in 
 principle such mail should be post-paid with Chinese stamps, and that those post-paid with Russian 
 or foreign stamps, which in the course of transmission should happen to fall under the Chinese 
 system, are to be considered as taxable. 
 
 " 2nd. — As regards the objection made by the Russian administration to the presence of a 
 Chinese letter box in the reserved compartments of the trains of the Chinese Eastern Company, 
 the Chinese administration expresses a desire to have this objection withdrawn; the use of a box 
 in those compartments can merely prevent the public from mistakenly placing letters post-marked 
 with the stamps of one administration, in the box of the other administration, which renders such 
 letters liable to be taxed. While awaiting the decision of Petersburg on this point, the Chinese 
 administration proposes, during stops of the trains, to place a loose post box on the platform of 
 the car for the convenience of the public. 
 
 " 3rd. — In accordance with the note attached to Article 4 of the agreement with the Chinese 
 Eastern Railway Company, the Chinese posts and the company are at liberty to come to a separate 
 agreement to fix the price of transportation of books, printed matter, newspapers, etc., of the 
 Chinese posts. 
 
 " In reply, I hasten to confirm to you officially, herewith, our agreement upon these several 
 points. 
 
 " Accept, etc." 
 
 See also the Arrangement with the Chinese Eastern Railway Company for the transportation 
 of mails of the Chinese imperial posts, February 6/19, 1909 (No. 1909/2, post).
 
 598 CHINA TREATIES AND AGREEMENTS 
 
 (o.) Within the Chinese Empire and along the littoral of China bordering on foreign 
 countries, if the distance does not exceed 1,500 nautical miles and when both the 
 Chinese and the foreign ports are united by the same line of steamers- 
 
 1°. For land transport by rail, and also for sea transport not exceeding 300 
 nautical miles, i franc 50 centimes per kilogramme of letters and postcards, 
 and 20 centimes per kilogramme of other articles. 
 2°. For land transport by courier, and also for sea transport exceeding 300 
 nautical miles, 4 francs per kilogramme of letters and postcards and 50 
 centimes per kilogramme of other articles. 
 (fc.) Outside of the Chinese Empire, for any transport of mails other than the categories 
 provided for in the preceding paragraph, (a.) : 
 
 1°. For land or sea transport, within the limits of the Postal Union, the transit 
 charges per kilogramme of letters, postcards, and other articles shall be 
 reckoned in conformity with Article 4 of the " Convention Pnncipale " of 
 Rome. 
 2°. Correspondence franked by means of Chinese stamps and destined for 
 Russia and Russian possessions or for foreign countries, in transit through 
 the Russian Office, will be forwarded to their respective destinations in 
 the same manner and liable to the same transit charges as the corre- 
 spondence remitted to the Russian Office by the other Administrations of 
 the Postal Union (including the transport charges due to the Chinese 
 Eastern Railway). These transit charges will be guaranteed by the Russian 
 Administration and periodically refunded by the Chinese Administration. 
 2. — Charges for transport of mails by means of services or steamers independent of the Russian 
 or Chinese Administrations will be settled by agreement between the interested countries. 
 
 ARTICLE I\'. — Transit Statistics. — The balancing of the transit charges in connexion with 
 the categories of correspondence specified above in Article III, paragraph i, will be calculated on 
 the basis of statistics t£iken under the rules laid down in the " Reglement d' Execution " of the 
 " Convention Principale " of Rome. The regulations laid down in Article VI of the final Protocol of 
 the above-named Convention will be applied to the aforesaid balances and statistics. 
 
 ARTICLE V. — Notice of Changes in Organisation.— The Postal Administrations of Russia 
 and China will communicate to each other the changes which may take place in the organisation of 
 their postal service and in the arrivals and departures of mails, whenever notice of such changes 
 may prove useful to the two Administrations or to the foreign Administrations that have recourse 
 to their intermediation. 
 
 ARTICLE VI. — Extent of the present Agreement. — In all matters not provided for in the 
 present Agreement, the contracting Postal Administrations agree to abide by the stipulations of the 
 " Convention Principale " and of the " Reglement " belonging thereto signed at Rome on the 26th day 
 of May 1906. 
 
 It is thus understood that the present Agreement, as also the treaties of the Union referred to 
 above, shall be binding as a regulation, and that the two Administrations shall be bound in any 
 particular case to conform thereto in their postal relations. 
 
 ARTICLE VII. — Duration of Agreement. — The present Agreement will come into force on 
 the day of its signature. It will remain in force for an indeterminate period. The two Administra- 
 tions will, however, have the right to introduce into it such modifications as by mutual agreement 
 they may find necessary, or to bring the Agreement to an end by giving each other notice six 
 months in advance. 
 
 Japan. 
 
 AGREEMENT SETTING FORTH THE RELATIONS ESTABLISHED BETWEEN THE 
 
 IMPERIAL POSTAL ADMINISTRATION OF JAPAN AND THE IMPERIAL POSTAL 
 
 ADMINISTRATION OF CHINA. 
 
 February 9th, 1910 
 
 ARTICLE I.— Exchange of Mails. — i. — There shall be between the Imperial Administration of 
 Japan and the Imperial Administration of China a regular exchange of postal articles of all kinds- 
 ordinary, registered, international, and in transit, closed or a deconvert— by means of any transport, 
 ordinary or special, now established or hereafter to be established, which each Administration may 
 have at its disposal. 
 
 2. — The exchange of mails between the two Administrations will take place through the Japanese 
 Post Offices established in the treaty ports and the Chinese Post Offices established in the same 
 ports. The following are also recognised by the Chinese Administration as Offices of exchange: the 
 Japanese Post Office in the Legation Quarter at Peking, under the same conditions as other foreign 
 Post Offices therein opened; the Japanese Postal Agency at Tangku, for the exchange of steamer 
 mails; and the Japanese Post Offices opened in Tatungkow, Antung, Newchwang, Liaoyang, 
 Moukden, Tiehling, and Changchun. 
 
 3. — The remitting of mails, closed or d decouvert, from one administration to the other will 
 take place at the (corresponding) Offices (of exchange) or any other authorised places for exchange 
 (fixed on by mutual consent), and will be made from hand to hand between agents regularly 
 appointed for this duty. 
 
 Ar<TlCLE II. — Closed Mails by Rail. — i.^ — Closed mails sent from or through Chinese Post 
 Offices and destined for Chinese, Japanese, or foreign Post Offices established in or out of China, 
 to be conveyed by means of Japanese railways in China, shall be consigned to or received from 
 the said railways through the intermediary of the Japanese Post Offices at those places of exchange 
 where Japanese Post Offices exist. 
 
 2. — (Zlosed mails sent from or through Japanese Post Offices and destined for Japanese, Chinese, 
 or foreign Post Offices established in or out of China, to be conveyed by means of (Thinese railways 
 in China, shall be consigned to or received from the said railways through the intermediary of the 
 Chinese Post Offices at places of exchange. 
 
 3. — At those places where there are no Offices of exchange the mails above cited will be handed 
 direct to or from the responsible officers on the trains, under local arrangements to be made by the 
 officials of the two contracting Postal Administrations. 
 
 ARTICLE III. — Closed Mails by Steamers. — i. — Closed mails sent from or through Chinese 
 Post Offices and destined for Chinese, Japanese, or foreign Post Offices established in or out of 
 China, to be conveyed by means of steamers subsidised by the Imperial Japanese Government or 
 generally those steamers in the mail service of the Empire of Japan, shall be embarked on or 
 received from the said steamers through the intermediary of the Japanese Post Offices at the places 
 of exchange or direct to the responsible officers on board at places where no Japanese Office of 
 exchange exists.
 
 NUMBER 1906/3 : MAY 26, 1906 599 
 
 2. — Closed mails sent from or through Japanese Post Offices and destined for Japanese, Chinese, 
 or foreign Post Offices established in or out of China, to be conveyed by means of steamers in the 
 mail service of China, shall be embarked on or received from the said steamers through the 
 intermediary of the Chinese Post Offices at the places of exchange. 
 
 ARTICLE I\^ — Remuneration for Steamers. — i. — In tlie case of those Japanese steamers 
 which load Chinese mails to or from non-opened ports, they shall enjoy the same privileges, facilities, 
 and immunities as other flag steamers rendering similar services. The Chinese mails they carry shall 
 not be liable to transit charges. 
 
 2. — While Chinese mails loaded on board Japanese steamers for conveyance between open ports 
 shall be liable to transit charges payable to the Japanese .Administration, such steamers shall not be 
 entitled to claim for the conveyance in question the same privileges, facilities, and immunities as 
 are specially granted to other flag steamers for similar services rendered without debiting the Chinese 
 Administration with transit charges. 
 
 ARTICLE y. — Tariffs. — Each Administration fixes its own tariflfs. 
 
 It is understood that for mail matter exchanged between its own Offices in China the Imperial 
 Japanese Administration will not apply a tariff of postage lower than that adopted by the Imperial 
 Chinese Administration. 
 
 The two Administrations will communicate to each other their tariffs. 
 
 ARTICLE \'I. — Postage Stamps. — Each Administration will use its own postage stamps to frank 
 its own mail matter. 
 
 It is understood, however, that mail matter originating in the localities mentioned in Article I, 
 § 2, but destined for Chinese inland places, shall be franked in Chinese stamps at Chinese domestic 
 rate; otherwise, it shall be liable to be taxed by the Chinese Administration as unpaid correspondence. 
 
 ARTICLE VIL — Correspondence d decouvert. — i. — The Imperial Chinese Post Office under- 
 takes, free of charge, the transmission to, and the delivery at, all places in China steam served by 
 railways or steamers where one of its establishments is or may hereafter be established of al! 
 correspondence for China posted in Japan, Korea, or the Leased Territory of Kwantung and prepaid 
 in Japanese postage stamps at the domestic rates of Japan, as well as of all correspondence for China 
 posted in any country of the Postal Union and prepaid in postage stamps of the country of origin 
 at the Union rates, if the above correspondence be handed over to the said Post Office d decouvert 
 by the Imperial Japanese Post Office in China; but these articles, letters and postcards excepted, if 
 addressed to non-steam-served places, will be liable to the domestic charge laid down in the Chinese 
 tariff. Further, any correspondence above mentioned, if addressed to inland places where the 
 Chinese Post Office does not yet function, will be forwarded to destination by the min-chii at the 
 risk and cost of the addressee. 
 
 2. — The Imperial Japanese Post Office in China undertakes, free of charge, the transmission to, 
 and the delivery at, destination of all correspondence for Japan, Korea, and the Leased Territory 
 of Kwantung posted in China and prepaid in Chinese postage stamps at the rates adopted by the 
 Japanese Post Offices in China for correspondence to those places, and, subject to transit charges, the 
 transmission of all correspondence for countries of the Postal Union posted in China and prepaid in 
 Chinese stamps at the rates stipulated in Article 5 of the Universal Postal Convention. 
 
 ARTICLE VIII. — Taxed Correspondence. — The correspondence mentioned in the preceding 
 Article \'II, whether unpaid or insufficiently prepaid, shall be dealt with in accordance with the 
 stipulations provided for in the said Article. It is provided that on all unpaid or insufficiently 
 prepaid correspondence addressed for delivery in China or in Japan, Korea, or the Leased Territory 
 of Kwantung, either Administration shall collect from the addressee a charge equal to double the 
 amount of the deficiency according to the tariff of the country of origin. 
 
 ARTICLE IX. — Newspapers, etc., with Special Marks. — Newspapers and periodical publica- 
 tions bearing the special mark " under contract," originally posted in Japan, Korea, or the Leased 
 Territory of Kwantung for delivery in their interior and handed over to the Chinese Post Office as 
 redirected articles, shall be sent to destination subject to the stipulations under Article \'II of this 
 Agreement. 
 
 ARTICLE X. — Postage and Weights. — As regards correspondence posted in China and addressed 
 for delivery in Japan, Korea, or the Leased Territory of Kwantung, the Postal Administration of 
 China shall not adopt rates of postage lower than those which are chargeable in the Japanese Post 
 Office in China, nor the maximum limits of weight and dimensions exceeding those which the said 
 Offices adopt. 
 
 The rates of postage as well as the maximum limits of weight and dimensions to be observed 
 in respect of correspondence posted in China and destined for any country of the Postal Union shall 
 be in conformity with the stipulations of the Union. 
 
 ARTICLE XI. — Transport Services. — Each of the contracting Administrations shall securely 
 convey the mails of the other Administration by the most direct route and by the most rapid means 
 of conveyance at its disposal. 
 
 Each Administration will communicate to the other, from time to time, the organisation and 
 movements of the railways, steamers, and other services utilised for the conveyance of the mails of 
 the other Administration as well as the proposed time of despatch and arrival of its own mails. 
 
 ARTICLE XII. — Transit Charges on Closed Mails. — i. — Chinese and Japanese closed mails 
 conveyed by means of Japan or China by virtue of the stipulations of Article I are subject to the 
 territorial or maritime transit charges at the rates provided for in the Universal Postal Convention, 
 to be credited to the Administration whose services participate in the conveyance. It is prorided, 
 however, that for railway conveyance within the Empire of China half of the Union rates shall apply 
 to all services over a distance not exceeding i.ooo miles. 
 
 2. — Any conveyance on the Yangtze-kiang is considered as maritime transit. 
 
 3. — It is further understood that — 
 
 1°. Sea cotiveyance over a distance not exceeding 300 nautical miles is gratuitous if the 
 
 Administration concerned already receives, on account of the mails conveyed, the 
 
 remuneration applicable to territorial transit; 
 2°. Charges for transport of mails by means of services or ships independent of the 
 
 Japanese or Chinese Administrations will be settled under the terms agreed between 
 
 the interested parties. 
 
 ARTICLE XIII. — Charges on d decouvert Correspondence. — i. — Correspondence sent a 
 decouvert from China through the intermediary of the Japanese Post Office for Postal Union 
 countries by virtue of Article VII shall be subject, for the benefit of the Postal Administration of 
 Japan, to the transit charges at the rate of closed mails provided for in the Universal Postal 
 Convention. 
 
 2- — Chinese correspondence sent in closed mails or d decouvert bv the Transsiberian route to 
 the countries of the Postal Union through the intermediary of the Imperial Japanese Post Office 
 will be liable to the transit charges provided by mutual entente between the various Administrations 
 concerned for this special route.
 
 600 CHINA TREATIES AND AGREEMENTS 
 
 ARTICLE XIV. — Transit Statistics. — The transit charges provided for in the preceding two 
 Articles shall be settled triennially between the Postal Administration of Japan and of China on the 
 basis of the statistics to be taken every three years during the first 28 days of the month of May 
 or of November alternately, according to the usual procedure followed between Administrations of 
 the Postal Union. 
 
 ARTICLE XV. — Letters with Declared Value. — The exchange of letters with declared value 
 of contents will be made the subject of a special arrangement between the Japanese and the Chinese 
 Administrations as soon as circumstances may permit the Chinese Administration to organise this 
 service. 
 
 ARTICLE XVI. — Responsibility: Registered Articles. — In case of the loss of a registered 
 article, domestic or international, the Postal Administration in the service of which the loss took place 
 shall be held responsible in accordance with the stipulations of the Universal Postal Convention. 
 
 ARTICLE XVII. — Responsibility: Closed Mails. — In case where a closed mail has been lost or 
 damaged, or its contents abstracted, the Postal Administration in the service of which the loss, 
 damage, or abstraction took place shall assume the responsibility in accordance with the stipulations 
 of the preceding Article only in respect of the missing registered articles contained in the said mails. 
 
 ARTICLE XN'III. — Extent of Postal Agreement. — The stipulations of the Universal Postal 
 Convention, as well as the Regulations for the execution of the above Convention, shall remain 
 applicable as regards every postal relation between the Postal Administration of Japan and the 
 Postal Administration of China not provided for by the Articles of the present Agreement. 
 
 ARTICLE XIX. — Duration of Postal Agreement. — The present Agreement shall come into 
 operation on the 1st April 1910, and shall remain in force for an indefinite period. However, the 
 two contracting Administrations are, at any time by common consent, at liberty to introduce in the 
 present Agreement any such modifications as they may find necessary, or to bring the Agreement to 
 an end at six months notice. . • . -.i •, 
 
 The present Agreement shall supersede, on the day on which it comes into operation, the Mail 
 Service Provisional Arrangement between Japan and China, signed at Peking on the i8th May 1903. 
 
 Japan. 
 
 AGREEMENT REGULATING THE EXCHANGE OF POSTAL PARCELS BETWEEN THE 
 IMPERIAL POSTAL ADMINISTRATION OF JAPAN AND THE IMPERIAL POSTAL 
 ADMINISTRATION OF CHINA. 
 
 February 9th, 1910 
 
 The exchange of postal parcels between the Imperial Postal Administration of Japan and the 
 Imperial Postal Administration of China shall be regulated according to the conditions hereunder 
 stated. 
 
 CHAPTER I.— PARCELS A DECOUVERT. 
 
 ARTICLE I. — Places of Exchange. — The exchange of postal parcels, ordinary or of declared 
 value, shall take place through the intermediary of the Japanese Post Offices established in China and 
 the Chinese Post Offices established in the same localities as these Japanese Post Offices, the places 
 of exchange being the same as those enumerated in Article I of the Postal Agreement concluded 
 between the two Administrations on the 9th February 191 0. 
 
 ARTICLE II. — Weights and Dimensions. — The maximum weight of a parcel is fixed at 121/2 lb. 
 (1,500 momme), and the maximum dimensions at 60 centimetres (2 shaku) in any one direction. 
 The following exceptions, however, will be made: — 
 
 1°. The limit of weight for parcels destined for Offices of the Chinese Administration not 
 connected by railway or steamers shall be 3 kilogrammes (800 momme), and the 
 volume must not exceed 25 cubic decimetres (i cubic shaku). 
 2°. Parcels containing umbrellas, walking-sticks, charts, plans, and such-like articles shall 
 be accepted if the dimensions do not exceed i metre (3 shaku 3 sun) in length 
 and 20 centimetres (6.5 sun) in breadth or depth. 
 The limits \n weight, dimensions, and volume may be hereafter increased by mutual consent 
 between the two Administrations. 
 
 ARTICLE III. — Transmission. — i. — The Imperial Chinese Post Office undertakes the trans- 
 mission to, and delivery at, any place where one of its establishments is or may hereafter be 
 established of all parcels for China posted in Japan, Korea, or the Leased Territory of Kwantung 
 and prepaid in Japanese postage stamps at the rate of postage provided for in Article IV, and 
 handed over to the said Office d decouvert by Imperial Japanese Post Offices in China. 
 
 2 — Imperial Japanese Post Offices in China undertake the transmission to, and the delivery 
 at, destination of all parcels for Japan, Korea, or the Leased Territory of Kwantung posted in 
 China and prepaid in Chinese postage stamps at the rate of postage provided for in Article IV, 
 and handed over to the said Office d decouvert by the Imperial Chinese Post Office. 
 
 3. — By measure of exception, however, postal parcels with declared value will only be trans- 
 mitted through the intermediary of the Chinese Post Office to certain designated places, a revised 
 list of which will from time to time be supplied to the Imperial Japanese Administration. 
 
 4. — The value declared on an insured parcel exchanged d decouvert will not e.xceed 500 
 dollars (yen). , , ,, ... 
 
 ARTICLE IV. — Postage. — i. — The rates of postage on parcels a decouvert mentioned in 
 Article III and the share to be allotted thereof to each Administration are as follows: — 
 
 Japanese Chinese TnrAT 
 
 Post Office Post Office Postage- 
 
 Share. Share. 
 
 $ $ $ 
 
 Parcels not over 200 momme (i lb. 10 oz.) . . 
 Parcels over 200 momme but not over 400 
 momme (3% lb.) .... 
 ,, 400 momme but not over 600 
 
 momme (5 lb.) 
 
 „ 600 momme but not over 900 
 
 momme (7Vi lb.) .... 
 
 ,, 900 momme but not over 1,200 
 
 momme (10 lb.) 
 
 „ 1,200 momme but not over 1,500 
 
 momme {12V2 lb.) .... 
 
 0.30 
 
 0.15 
 
 0.4S 
 
 0-35 
 
 0.20 
 
 0.55 
 
 0.40 
 
 0.25 
 
 0.6s 
 
 0.50 
 
 0.30 
 
 0.80 
 
 0.60 
 
 0.40 
 
 1. 00 
 
 0.70 
 
 0.50 
 
 1.20-
 
 NUMBER 1906/3 : MAY 26, 1906 601 
 
 By mutual consent between the two Administrations, these rates may be altered according to 
 the amounts each Administration may desire to collect. 
 
 2. — Prepayment of postage on postal parcels shall be obligatory before departure; but the fee 
 for delivery, if necessary, shall be payable by the addressee. 
 
 3- — Parcels destined for places in China not connected by railway or steamer, although fully 
 prepaid at the rates provided in Article IV, may be further charged, for transmission to places 
 beyond railway or steamer services, at the expense of the addressee, supplementary taxes, the amount 
 of which shall conform to the published tariff of the Chinese Administration for its domestic parcels. 
 
 4. — It is understood that the Japanese Administration shall not tax parcels exchanged between 
 its Offices in China at rates lower than those charged by the Chinese Administration. 
 
 ARTICLE V. — Insurance Fee. — The insurance fee on parcels of declared value shall be at the 
 rate of 20 cents (20 sen) on parcels up to 10 dollars (yen) value, and 10 cents (sen) increase for 
 each additional 10 dollars (yen) value. 
 
 Half of this fee shall accrue to the Administration performing transmission. 
 
 ARTICLE \'I. — Parcels to or from a Third Country. — ^Parcels posted in one of the two 
 contracting parties and sent through the other to a third country, or parcels posted in a third country 
 and sent through one of the contracting countries to the other, may be exchanged between the two 
 Postal Administrations of Japan and of China, in accordance with the stipulations of the preceding 
 Articles. 
 
 It is provided that Chinese parcels for a third country have to pay the Chinese domestic rate, 
 and in addition the rates as indicated in Table A drawn up by the Japanese Office. 
 
 The above provisions shall also apply to parcels exchanged between a third country and one 
 of the two contracting countries and subsequently redirected or sent back to the other of the 
 contracting countries. 
 
 ARTICLE V'll. — Parcel Bill. — Parcels exchanged d decouvert must be accompanied by a Parcel 
 Bill, which shall be made out at the despatching Office of exchange in conformity with the specimen 
 provided for in the Union Parcel Post Convention. Customs Declarations and, if any, other 
 documents must be securely attached to the Parcel Bill. 
 
 The amount to be entered on the Parcel Bill shall be converted into French currency at the rate 
 of 40 cents (sen) = i franc. 
 
 ARTICLE VIII. — Customs Declaration. — Every parcel d decouvert must be accompanied by a 
 Customs Declaration, giving the name, quantity, weight, and value of its contents. 
 
 Every parcel with declared value must bear on the Customs Declaration and also on the address 
 side of the parcel, a statement of the insured sum, which must be expressed by the sender in a very 
 conspicuous manner in the money of the country of origin — dollars and cents, or yen and sen. 
 
 ARTICLE IX. — Customs Formalities. — The Customs formalities in China in respect of the 
 parcels to be handed over a decouvert to the Imperial Japanese Post Office in China by the Imperial 
 Chinese Post Office and vice versa shall always be fulfilled by the Imperial Chinese Post Office on 
 the same conditions as other international parcels to or from its own service. 
 
 CHAPTER XL— CLOSED PARCEL MAILS. 
 
 ARTICLE X. — Exchange. — The exchange of closed parcel mails shall take place between the 
 places of exchange as defined in Article I of Chapter I of this ."Xgreement. 
 
 It IS understood that at railway stations where no Post Offices of exchange exist, suitable local 
 arrangements will be made by the officials of the contracting Administrations for the remitting 
 and landing of closed parcel mails at these stations on the same principles as for ordinary closed 
 mails. 
 
 ARTICLE XI. — Transmission. — The Postal Administration of China undertakes to convey all 
 closed parcel mails exchanged between Japan, Korea, the Leased Territory of Kwantung, and an 
 Imperial Japanese Post Office in China, between the Imperial Japanese Post Offices in China as well 
 as between a third country and an Imperial Japanese Post (Jffice in China, by means of railways, 
 steamers, and other services, now established or hereafter to be established, which the said Adminis- 
 tration may have at its disposal for the conveyance of its own parcel mails. 
 
 The Postal Administration of Japan undertakes to convey similarly all closed parcel mails 
 exchanged between the Imperial Chinese Post Offices as well as between an Imperial Chinese Post 
 Office and a third country. 
 
 The value declared on an insured parcel included in the closed parcel mails mentioned in the 
 preceding paragraphs delivered for transmission to a Japanese or a Chinese Post Office, must not 
 exceed 500 dollars (yen). 
 
 ARTICLE XII. — Transit Rates. — Chinese or Japanese closed parcel mails conveyed by means 
 of the services of Japan or China by virtue of the stipulations of Article XI are subject to the 
 territorial or maritime transit charges at the rates provided for in the Union Parcel Post Convention, 
 to be credited to the Administration whose services participate in the conveyance. It is provided that, 
 as regards the conveyance by railways in China, a half of the Union rates shall apply to the services 
 at any distance not exceeding 1,000 miles. 
 
 Besides the above charges, every insured parcel, if any, included in the closed parcel mails 
 mentioned in the preceding paragraph, is subject to the territorial or maritime insurance fee at the 
 rates provided for in the aforesaid Convention, to be credited to the Administration which takes 
 part in the conveyance. 
 
 ARTICLE XIII. — Way Bill. — Closed parcel mails shall be accompanied by a Way Bill, on 
 which the despatching Office of exchange will enter the number, origin, destination, and weight of 
 each parcel contained therein, and, in the case of an insured parcel, its declared value; this Way 
 Bill will be handed over by the said Office to the intermediate Office of exchange. 
 
 CHAPTER III.— ACCOUNTS. 
 
 ARTICLE XIV. — Quarterly Accounts. — Each Administration shall cause each of its exchanging 
 Offices to prepare an account quarterly, for all the parcels a decouvert and the closed parcel mails 
 received from the exchanpe Offices concerned of the other Administration, on the basis of the 
 Parcel Bills and the Way Bills respectively mentioned in Articles VIT and XIII. 
 
 ARTICLE XV. — General Annual Accounts. — The quarterly accounts mentioned in the pre- 
 ceding Article, after having been verified and accepted, on both sides, by the respective Post Offices, 
 shall be included in the General Annual Account by the Administration to which the balance is due.
 
 502 CHINA TREATIES AND AGREEMENTS 
 
 CHAPTER IV.— RESPONSIBILITY. 
 
 ARTICLE X\'I. — Loss or Damage. — In case where an uninsured or insured parcel, whether 
 domestic or international, has been lost or damaged or its contents abstracted, the Postal Adminis- 
 tration in the service of which the loss, damage, or abstraction took place shall be held responsible 
 in accordance with the stipulations of the Union Parcel Post Convention. 
 
 CHAPTER v.— CUSTOMS FORMALITIES FOR PARCELS TO BE DELIVERED BY OR 
 POSTED AT THE JAPANESE POST OFFICE IN CHINA DIRECT. 
 
 ARTICLE XVII. — Customs Report and Payment of Duty. — The Japanese Post Office will send 
 a detailed report to the Customs, giving the name and value of the contents, address, marks, quantity, 
 and provenance of each parcel received, and unless as provided under Article XXII the parcel is to 
 be examined, the Customs will immediately enter, on that report, the duty payable and return the 
 report to the Post Office. The Post Office will then either direct the addressee to pay the duty 
 into the Customs Bank and procure Customs Release Permit, or will itself collect such duty from the 
 addressee. 
 
 ARTICLE X\'III. — Duty under Half a Tael. — Any Customs duty under half a tael per 
 parcel will not be collected. It is, however, provided that in case two or more parcels containing 
 similar merchandise and sent from the same sender to the same addressee have been received by 
 the same mail the total amount of the Customs duty exceeds half a tael, the duty may be collected 
 in respect of the whole of such parcels. 
 
 ARTICLE XIX. — Customs Release of Parcels. — No parcel is to be transmitted or delivered 
 until either Customs Release Permit has been exhibited to, or the duty collected by, the Japanese 
 Post Office, except in the case of parcels which have to be immediately redirected or sent back to 
 Japan or a third country. 
 
 ARTICLE XX. — Monthly Remittance of Duty Collection. — The Customs duty collected by 
 the Post Office will be remitted monthly to the Customs, and a return of the parcels on which the 
 duty could not be collected will be supplied. 
 
 ARTICLE XXI. — Refund of Duties. — It is understood that the import or export duty originally 
 collected on a parcel subsequently returned to the Office of origin will be refunded by the Customs 
 provided the parcel is recognised by the latter to be still in its original packing and has been unopened. 
 
 ARTICLE XXII. — Customs Examination. — Whenever examination is necessary the Post Office 
 will either send the parcel to the Customs or the Customs will send Examiners to the Post Office to 
 open and examine the parcel in question in company with the postal officials, and the Post Office will 
 admit such Examiners and give them every facility. 
 
 CHAPTER VI.— APPLICATION OF UNION CONVENTION. 
 
 ARTICLE XXIII. The stipulations of the Union Parcel Post Convention and the Regulations 
 thereof shall remain applicable as regards every parcel post relation between the Empire of Japan and 
 the Empire of China not provided for by the Articles of the present Agreement. 
 
 CHAPTER VII.— DURATION OF AGREEMENT. 
 
 ARTICLE XXIV. The present Agreement shall come into operation on the ist April 1910, and 
 shall remain in force for an indefinite period. The two contracting Administrations, however, _ are 
 at liberty, at any time by mutual consent, to introduce in the present Agreement any such modifica- 
 tions as they may find necessary or to bring the Agreement to an end at six months notice. 
 
 The present Agreement shall supersede, on the day on which it comes into operation, the 
 Parcel Post Provisional Arrangement between Japan and China, signed at Peking on the i8th May 
 1903, and the Understanding appertaining thereto. 
 
 Germany. 
 
 ARRANGEMENT REGULATING THE EXCHANGE OF POSTAL PARCELS BETWEEN THE 
 ADMINISTRATION OF IMPERIAL POSTS OF GERMANY AND THE ADMINISTRATION 
 OF IMPERIAL CUSTOMS AND POSTS OF CHINA. 
 
 July 19th and August 26th, 1910 
 
 The exchange of postal parcels between the Administration of Imperial Posts of Germany and 
 the Administration of Imperial Customs and Posts of China, provided for in Article VIII, 1°, of 
 the Postal Arrangement concluded on the 2Sth October/ard November 1905 between the two above- 
 mentioned Administrations, shall be regulated according to the conditions hereunder stated. 
 
 Article i. — Weight of Parcels. — 1°. The maximum weight of parcels, whether of declared value 
 or not, shall not exceed 10 kilogrammes. 
 
 2°. However, the exchange of postal parcels exceeding 5 kilogrammes in weight is restricted, 
 provisionally, to parcels originating from and destined for Germany and the Offices of Tsingtau on 
 the one part and China on the other. 
 
 3°. By way of exception, this limit of weight is fixed at 3 kilogrammes in relation with Offices 
 of the Administration of Customs and Posts of China that are not connected by railway or by 
 steamer; but this limit may, hereafter, be raised by mutual agreement between the two Adminis- 
 trations. 
 
 Article 2. — Dimensions of Parcels. — 1°. Parcels destined for China shall not for the present 
 exceed i metre and 50 centimetres in any one direction, nor a volume of 55 cubic decimetres, except 
 in the case of parcels up to 3 kilogrammes and also those from 3 to 5 kilogrammes, the volume of 
 which shall not exceed 25 cubic decimetres, and their size 60 centimetres in any one direction. 
 
 2°. However, parcels up to 5 kilogrammes, containing umbrellas, walking-sticks, charts, plans, and 
 such-like articles, shall be accepted if they do not exceed i metre long and 20 centimetres broad or 
 thick. 
 
 3°. The limits of dimension and of volume herein determined may be increased by mutual 
 agreement.
 
 NUMBER 1906/3 : MAY 26, 1906 603 
 
 ARTICLE 3.— Exchange of Parcels.— Unless otherwise agreed to by the two Administrations, the 
 exchange of postal parcels shall take place through the intermediary of the German Offices established 
 in China and the Chinese Offices established in the same localities as these German Offices. 
 
 Article 4.— Transmission of Parcels.— 1°. The German Administration shall be the inter- 
 mediary, by means of the postal services it may maintain, for the exchange of parcels between 
 China on the one part and Germany, Tsingtau, the German Colonies and Protectorates, and foreign 
 countries on the other. 
 
 2°. The Administration of Customs and Posts of China engages on its part to ensure the trans- 
 mission by its services of all parcels that shall be handed to it by the German Administration. 
 
 Article 5.— Tariffs and Postage. — 1°. Each Administration shall itself determine the taxes and 
 duties to be collected on postal parcels forwarded by its own Offices. The prepayment of postage on 
 postal parcels shall be obligatory before departure. The fee for delivery shall, however, be payable 
 by the addressee. 
 
 2°. Moreover, parcels destined for places in China not connected by railway or by steamer may 
 be further charged for transmission beyond railway or steamer services, at the expense of the 
 addressee, supplementary taxes, the amount of which shall be determined by the Administration of 
 Customs and Posts of China. 
 
 3°. The German Postal Administration shall collect, from the addressee, on parcels from 5 to 10 
 kilogrammes originating in China, an additional tax, in accordance with the German tariff, for the 
 transmission of such parcels from Bremen or Hamburg to destination. 
 
 4°. The two Administrations shall supply each other with their respective tariffs. 
 
 S°- It is understood that the German Administration shall not tax parcels exchanged between 
 Its Offices in China at rates lower than those charged by the Chinese Administration of Posts. 
 
 .Article 6.— Transit Charges.— 1° . The Administration of Posts of China shall pay to the 
 Administration of Posts of Germany for parcels destined for Germany and for each postal parcel 
 the following charge: — 
 
 I. Via Bremen or Hamburg (direct exchange): 
 
 (a.) 2 francs for parcels up to i kilogramme. 
 (b.) 3 francs for parcels from i to s kilogrammes. 
 _ (c.) 4 francs 50 centimes for parcels from 5 to 10 kilogrammes. 
 II. Via Italy and Austria-Hungary or Switcerland: 
 
 (a.) 3 francs for parcels up to i kilogramme. 
 
 (t>.) 4 francs for parcels from i to 5 kilogrammes. (This route is not open, for 
 the present, for parcels from 5 to 10 kilogrammes.) 
 III. Via Siberia : 
 
 The date of opening of this route and the conditions for the transmission of 
 parcels shall be notified later to the Administration of Posts of China. 
 
 2°. The Administration of Posts of Germany shall pay to the Administration of Posts of China 
 for parcels destined for China, and for each postal parcel, the following charge: — 
 
 (a.) 50 centimes for parcels up to i kilogramme. 
 
 (b.) 75 centimes for parcels from i to 5 kilogrammes. 
 
 (c.) I franc 25 centimes for parcels from 5 to 10 kilogrammes. 
 
 3°. With regard to the exchange of parcels originating from, or destined for, the German 
 Offices at Tsingtau, the Administration to which the parcels are handed shall be entitled to a fee of 
 2S centimes per parcel. 
 
 4°. As to international postal "parcels, the Administration of Posts of Germany shall notify to 
 the Administration of Posts of China — 
 
 (a.) The nomenclature of countries with which it may serve as intermediary for the 
 
 exchange of postal parcels; 
 (&.) The routes open for the transmission of such parcels from the time they enter, its 
 
 services; 
 (c.) The total amount of charges to which it is thereby entitled for each destination. 
 
 Article 7. — Parcels of Declared Value. — x°. Besides the transit charges, the Administration of 
 origin shall pay, in respect of insurance fees on parcels of declared value, to the other Administration, 
 and, if need be, to each Administration participating in the transmission when such Administration 
 is under guarantee of responsibility, a proportional part of the determined insurance fee, viz., for 
 300 francs or fraction of 300 francs, 5 centimes for territorial transport, and 10 centimes per 
 maritime service participating in the transmission. 
 
 2°. However, the insurance fee payable by the Chinese Administration to the German Adminis- 
 tration for parcels destined for Germany carried over the undermentioned routes is thus modified: — 
 
 (a.) Via Bremen or Hamburg: 
 
 20 centimes per 300 francs for parcels up to 5 kilogrammes. 
 
 15 centimes per 300 francs for parcels from 5 to 10 kilogrammes. - 
 
 The insurance fee for territorial transport in Germany of parcels from 5 to 10 
 
 kilogrammes is collected by the German Administration of Posts from the 
 
 addressee. 
 (&.) Via Italy: 
 
 30 centimes per 300 francs, 
 (c.) Via Siberia: 
 
 The insurance fees shall be notified later to the Administration of Posts of China. 
 
 As to postal parcels which may be forwarded in transit through Germany, the German Adminis- 
 tration of Posts shall notify to the Administration of Posts of China the total of insurance fees to 
 which it is entitled for each destination. 
 
 Article 8. — Acknozvledgment of Receipt. — 1°. The sender of a postal parcel may obtain an 
 acknowledgment of receipt of his parcel by paying a fee that shall not exceed 25 centimes. 
 
 2°. The same fee may be charged when, subsequent to posting, inquiries are made about a parcel, 
 provided the special fee for an acknowledgment of receipt has not been paid already. 
 
 3°. This charge shall accrue entirely to the Administration of origin. 
 
 Article 9. — Delivery and Customs Formalities. — It shall be allowable for the country of 
 destination to collect from the addressee a fee that shall not exceed 25 centimes per parcel for 
 delivery and Customs formalities. 
 
 Article 10. — Annulment of Customs Duties. — In the case of the retransmission or of the return 
 of a parcel to the Office of origin, the Customs duties that have been paid on the parcel in the 
 country of first destination shall be annulled.
 
 504 CHINA TREATIES AND AGREEMENTS 
 
 Article ii. — Responsibility.^!". Except in cases of force majeure, if a postal parcel be lost, 
 despoiled, or damaged, the sender or, in his default, or by his request, the addressee shall be 
 entitled to an indemnity corresponding to the actual amount of the loss, the spoliation, or the 
 damage, unless this damage be caused by the fault or by the negligence of the sender, or be due 
 to the nature of the parcel itself; but this indemnity shall not exceed 25 francs for ordinary parcels 
 up to 5 kilogrammes, 40 francs for parcels from 5 to 10 kilogrammes, and the declared value for 
 parcels of declared value. 
 
 Besides, the sender of a lost parcel shall be entitled to refund of the postage on the parcel and 
 also to the postage expenses connected with making the inquiries when the cause of the claim is 
 due to the fault of the Post Office. However, the insurance fee shall be retained by the Postal 
 Administrations. 
 
 2°. The obligation to pay the indemnity shall be incumbent upon the Adoriinistration of the 
 Office of origin; it shall then rest with this Administration to prefer a claim against the responsible 
 Administration, that is to say, against the Administration upon whose territory or in whose service 
 tne loss, spoliation, or damage shall have taken place. 
 
 3°. Until proved to the contrary, the responsibility shall remain with the Administration which, 
 having received the parcel without making any remark, can establish neither its delivery at its 
 destination nor, as may happen, its regular transmission to the next Administration. 
 
 4°. The payment of the indemnity by the Office of origin shall be made as soon as possible, 
 and not later than one year after the date of the claim. The responsible Office shall refund without 
 delay to the Office of origin the amount of the indemnity paid by the latter. 
 
 The Office of origin shall be authorised to indemnify the sender on behalf of the intermediary 
 Office or of the Office of destination which, having been regularly notified, shall have allowed one 
 year to elapse without having settled the claim. 
 
 Moreover, in tiie case of an Office whose responsibility shall be duly established which shall 
 decline altogether to pay the indemnity, it shall undertake to pay, besides the indemnity, the 
 accessory expenses resulting from undue delay in making the payment. 
 
 5°. It is understood that a claim shall be admitted only if made within one year from the 
 date of posting the parcel; after this limit the claimant shall not be entitled to any indemnity. 
 
 6°. If the loss or damage happen during transmission between the Offices of exchange of the 
 two Administrations, thus rendering it impossible to decide upon which of the two territories the act 
 took place, the two Administrations concerned shall share the loss equally. 
 
 7°. The Administration shall cease to be responsible for postal parcels, delivery of which shall 
 have been taken by the persons entitled to receive them. 
 
 Article 12. — Articles prohibited. — 1°. Parcels shall not contain any letter or note, either sealed 
 or open, that might establish a correspondence between the sender and the addressee. Exception may 
 be made only in the case of invoices, price lists, and other open documents that relate exclusively to 
 the contents of the parcel. 
 
 2°. The sender shall also be forbidden to enclose in a parcel any explosive or inflammable 
 material and generally all articles the transmission of which presents any danger whatsover, or the 
 importation of which shall be contrary to the laws or to Customs regulations, or otherwise not 
 authorised. 
 
 3°. Parcels containing money, articles made of gold or of silver, and other precious articles, 
 must have their value declared. 
 
 4°. In case of infraction of these above rules, the parcel shall simply be returned to the place 
 of origin. 
 
 5°. The two Administrations shall communicate to each other a list of things and products 
 forbidden importation into their territories. 
 
 Article 13. — Temporary Suspension of the Service. — In extraordinary circumstances of a nature 
 to justify the measure, each Admiriistration may temporarily suspend the parcel post service, either 
 entirely or partially, on condition that immediate notice be given, if need be by telegraph, to the 
 other Administration concerned. 
 
 Article 14. — Fiilfihnent of the Convention. — 1°. The Postal Administrations of Germany and 
 of China shall settle all matters of detail and of disposition, in order to ensure the fulfilment of the 
 present Convention. 
 
 2°. The Postal Administrations of Germany and of China shall designate the Offices or the 
 localities at which the exchange of postal parcels is to be allowed. 
 
 3°. They shall supply to each other a list of the countries with which they may respectively 
 sferve as intermediaries and the list of localities open to the service. 
 
 Article 15. — General Provision. — The internal legislation of each Of the contracting countries, 
 as well as the dispositions of the International Convention concerning the exchange of postal parcels 
 and of the detailed regulations thereto annexed, shall remain applicable to all points not herein 
 provided for or not contrary to the present Convention. 
 
 Article 16. —Duration of the Convention. — The present Arrangement shall be put into 
 operation from a day mutually agreed upon by both Administrations, and it shall remain in force 
 for an indefinite period. However, the contracting parties reserve to themselves the right to make 
 at any time such modifications therein as they may by mutual agreement judge necessary, or to 
 terminate the Arrangement by giving at least six months notice in advance. 
 
 France (Indo-China). 
 
 ARRANGEMENT REGULATING THE EXCHANGE OF POSTAL PARCELS BETWEEN THE 
 PROVINCE OF YUNNAN, INDO-CHINA. AND THE COUNTRIES BEYOND, THROUGH 
 THE INTERMEDIARY OF THE SERVICES OF INDOCHINA.* 
 
 July 24th and September 21st, 191 1 
 
 ARTICLE 1. — Postal Parcels leaving China. — (a) Originating at the Indo-Chinese Offices of 
 Mengtss aiui/or Yiinnanfit. — The Indo-Chinese Offices of Mengtsz and Yiinnanfu accept for trans- 
 mission ordinary postal parcels for all the destinations mentioned in the postal tariff of Indo-China 
 and collect the same taxes as that Administration, augmented by: — 
 
 1°. The share due to China for the transport in Yunnan, provisionally fixed by the 
 Office of China at o fr. 70 centimes for parcels not exceeding 5 kilos, and i franc 
 for parcels over 5 but not exceeding 10 kilos.; 
 
 * See the Convention with the Compagnie Frangaise des Chemins de Per de I'Indo-Chine et du 
 Yunnan for the Transportation of Parcels Post, April isth, 1912 (No. 1912/7, post).
 
 NUMBER 1906/3 : MAY 26, 1906 605 
 
 2°. The cost of transport between Laokai and Haiphong, on the line belonging to the 
 " Compagnie des Chemins de Fer de I'lndo-Chine et du Yunnan": i franc for 
 parcels not exceeding 5 kilos, and 2 francs for parcels over 5 but not exceeding 
 10 kilos. 
 
 These parcels are forwarded, accompanied by a Parcel Way Bill, to the Chinese Office of 
 exchange of Hokow, through the intermediary and under the care of the Chinese Offices of Mengtsz 
 and Yiinnanfu. 
 
 The Chinese Office of Hokow, after checking the parcels, returns to the Indo-Chinese Office of 
 origin (Mengtsz or Yunnanfu), duly signed, the Parcel Way Bill which accompanied the parcels. 
 
 It then hands over the parcels, a decoiirert. after having entered them on a Parcel Way Bill, 
 made out in duplicate, on which the Chinese Administration is credited, in column 9, with its share 
 of the transport: o f. 70 centimes for parcels not exceeding 5 kilos, and i franc for parcels over 
 5 but not exceeding 10 kilos. 
 
 (fc.) Originating at the Chinese Offices in Yunnan. — The Chinese Offices in Yunnan accept for 
 transmission ordinary postal parcels for all the destinations mentioned in the postal tariff of 
 IndoChina. 
 
 These parcels are handed over, d decouvert, by the Chinese Office of Hokow to the Indo-Chinese 
 Office of Laokai, accompanied by a Parcel Way Bill, on which the Chinese Office of Hokow enters 
 to the credit of the Administration of Indo-China the shares of transport to destination due to that 
 Administration, viz.: — 
 
 1°. Principal tax as per postal tariff of Indo-China; 
 
 2°. Cost of transport between Laokai and Haiphong on the line belonging to the " Com- 
 pagnie des Chemins de Fer de I'lndo-Chine et du Yunnan": i franc for parcels not 
 exceeding 5 kilos, and 2 francs for parcels over 5 but not exceeding 10 kilos. 
 
 The postal tariff of the Colony showing the taxes on postal parcels forwarded from IndoChina 
 will be communicated to the Office of China by the Office of Indo-China. 
 
 ARTICLE 2. — Postal Parcels entering China. — (o) Destined for Mengtsz and/or Yiinnanfu. — 
 Indo-Chinese, French, or foreign ordinary postal parcels destined for Mengtsz or Yunnanfu are 
 handed by the Indo-Chinese Office of Laokai to the Chinese Office of Hokow, in closed mails, 
 accompanied by a Parcel Way Bill, in duplicate, on which the Indo-Chinese Office of Laokai enters 
 to the credit of the Administration of China, in column 9, the share of the transport due to that 
 Administration: o f. 70 centimes for parcels not exceeding 5 kilos, and i franc for parcels over 5 but 
 not exceeding 10 kilos. 
 
 These parcels are then handed over to the Indo-Chinese Offices of Mengtsz and /or Yiinnanfu 
 through the intermediary and under the care of the Chinese services, to be delivered to the 
 addressees. 
 
 (b.) Destined for Localities other than Mengtsz and Yiinnanfu. — Indo-Chinese, French, or 
 foreign ordinary postal parcels destined for places situated in the province of Yunnan other than 
 Mengtsz and Yiinnanfu are handed over, d decouvert, by the Indo-Chinese Office of Laokai to the 
 Chinese Office of Hokow, accompanied by a Parcel Way Bill, in duplicate, on which the Indo- 
 Chinese Office of Laokai enters to the credit of the Administration of China, in column 9, the share 
 of the transport due to that .Administration: o f. 70 centimes for parcels not exceeding 5 kilos, and 
 I franc for parcels over 5 but not exceeding 10 kilos. 
 
 These parcels are delivered by the Chinese Offices, which collect from the addressees of parcels 
 destined for non-steam-served places in Yunnan supplementary taxes known as " domestic rates." 
 
 .ARTICLE 3. — Postal Parcels exchanged by the Chinese Offices in transit through Indo- 
 China. — (a.) Postal Parcels leaving Yunnan. — Postal parcels forwarded by the Chinese Office of 
 Hokow to other Chinese Offices in the Empire of China, in transit through Indo-China and the 
 maritime services and vice-versa, pay the taxes fixed by the Administration of China. 
 
 These parcels passing in transit are handed over, d decouvert, to the Office of Laokai by the Office 
 of Hokow for Customs treatment, after which the parcels are placed by the two Offices of exchange 
 in baskets supplied by the Administration of China. These baskets are then forwarded, in transit, 
 through the maritime services via Hongkong to the Chinese Offices designated by the Chinese Office 
 of Hokow. 
 
 The Chinese Office of Hokow enters to the credit of the Administration of Indo-China the 
 maritime and territorial taxes for transport, as stipulated in Articles 3 and 6 of the Convention of 
 Rome for the exchange of postal parcels, augmented by the share of transport on the line belonging 
 to the " Compagnie des Chemins de Fer de I'lndo-Chine et du Yunnan": i franc for parcels not 
 exceeding 5 kilos, and 2 francs for parcels over 5 but not exceeding 10 kilos. 
 
 (fc.) Postal Parcels entering Yunnan. — Postal parcels coming from ports in China via Hongkong 
 destined for Yunnan, for which the Administration of Indo-China must be credited with the total 
 shares of transport to Laokai — including those relative to the distance Hongkong-Haiphong, when 
 the transport has been effected by Indo-China steamers, — are forwarded in closed mails, in baskets 
 supplied by the Administration of China, by the Chinese Offices of origin to the Indo-Chinese Office 
 of Laokai, which Office hands them over d decouvert, with the baskets, to the Chinese Office of 
 Hokow. 
 
 ARTICLE 4. — Customs Duties and Fortvtalities concerning Chinese or Foreign Postal 
 Parcels exchanged in transit through the Services of Indo-China. — (a.) Indo-Chinese and 
 Chinese parcels leaving the province of Yunnan, and those passing in transit through Indo-China, must 
 be accompanied by two Customs Declarations. The examination of these parcels takes place at the 
 Chinese Office of Hokow in the presence of an officer of the Indo-Chinese Customs, who will assist 
 by giving the necessary indications, in order that the Customs Declarations may be drawn up in 
 accordance with the terms of the General Tariff of the Indo-Chinese Customs. The Customs transit 
 duties are paid immediately, and the amount of these duties, collected as per the General Tariff of 
 the Indo-Chinese Customs, is handed by the Chinese Office of Hokow to the Collector of Customs 
 of Laokai. 
 
 {b.) As regards Indo-Chinese or foreign parcels entering Yunnan, the formalities required by 
 the Chinese Customs are performed at Mengtsz and/or Yiinnanfu or at the place of destination. 
 
 ARTICLE 5. — Parcels with Declared Value. — Parcels with declared value exchanged between 
 Chinese Offices, in transit through the services of Indo-China, are accepted by that Office, provided 
 that they are transmitted packed in special baskets giving every guarantee as to the adequate 
 protection of the contents. 
 
 The .Administration of China, on its part, accepts parcels with declared value exchanged, in all 
 relations, with the Indo-Chir.ese Offices of Mengtsz and /or Yiinnanfu. 
 
 These parcels are entered on special Parcel Way Bills, and each Office participating in the 
 transport receives the shares stipulated in the Convention of Rome for the exchange of postal parcels 
 (Art. 3. § 4), viz., o f. 05 centimes per 300 francs or fraction of 300 francs of the declared value 
 for territorial transit and o f. 10 centimes for maritime transit.
 
 506 CHINA TREATIES AND AGREEMENTS 
 
 ARTICLE 6. — Parcel Way Bills. — The Office of exchange which takes delivery of postal parcels 
 signs, in token of receipt, one copy of the Parcel VVay Bill, which is kept by the other Office of 
 exchange to be attached to its accounts. The duplicate copy of the Parcel Way Bill accompanying 
 the parcels is attached to the accounts of the Office which takes delivery of the parcels. 
 
 ARTICLE 7. — Accounts. — The two Offices of Laokai and Hokow are entrusted with the prepara- 
 tion of accounts. 
 
 To that effect, they prepare monthly a statement, in conformity with specimen K of the 
 Convention of Rome for the exchange of postal parcels, and forward it, together with the Parcel 
 Way Bills relating thereto, to the Directors General of their respective Administrations. After 
 verification and acceptance, on both sides of the monthly account L prepared by the two Offices, 
 the Administrations summarise the accounts in a quarterly statement, the balance of which is paid, 
 in gold francs, by means of drafts drawn on the places chosen by mutual consent. The taxes 
 collected in piastres and cents in Yunnan on parcels destined for the Indo-Chinese Offices are 
 converted into francs at the official rate fixed by the Treasury of Indo-China at the time of the 
 settlement of accounts, i.e., on the last day of the quarter. This rate is regularly communicated by 
 the Indo-Chinese Office of Laokai "^o the Chinese Office of Hokow. 
 
 ARTICLE 8. — General Provisions and Responsibilities. — It is understood that as soon as the 
 projected Arrangement between the Office of Indo-China and the " Conipagnie des Chemins de Per 
 de rindo-Chine et du Yunnan," with a view to reduce the cost of transport, shall have been concluded, 
 and the taxes provided for by the Convention of Rome become applicable to the Indo-Chinese transit, 
 the Office of China will, in virtue thereof, reduce to o f. 50 and o f. 80 its shares of the transport 
 in Yunnan, provisionally fixed at o f. 70 and i franc. 
 
 For all points that are not provided for by the present Arrangement, namely, as regards the 
 question of the respective responsibility of the several Offices, the contracting parties will adhere to 
 the rules laid down in the Convention of Rome for the exchange of postal parcels. 
 
 ARTICLE 9. — Duration of Arrangement. — The present Arrangement shall come into force as 
 soon as the necessary notifications have been made by the Office of Indo-China to the International 
 Bureau at Berne and the Administrations of China and Indo-China have agreed upon a date by 
 simple exchange of letter. It shall remain in force for an indefinite period. The contracting parties 
 reserve to themselves the right to make at any time such modifications therein as they may judge 
 necessary and to terminate the Arrangement by giving notice three months in advance. 
 
 See also the postal arrangement with British India, February 9, 1909 (No. 1909/1, post), 
 the arrangement with the Chinese Eastern Railway Company for the transportation of 
 mails, February 6/19, 1909 (No. 1909/2, post), the parcel post arrangement with Hongkong, 
 June 5 and 22,^ 1909 (No. 1909/4, post), the Convention with the Compagnie Franqaise des 
 Chemins de Fer de I'lndo-Chine et du Yunnan for the transportation of parcels post, 
 April 15, 1912 (No. 1912/7, post), the parcels post convention with the United States, May 
 29 and July 11, 1916 (No. 1916/10, post), and the Agreement with Japan in regard to postal 
 and telegraph operations at the leased territory of Kiaochow Bay and along the Kao-Tsi 
 Railway, March 26, 1917 (No. 1917/5, post).] 
 
 NUMBER 1906/4. 
 
 RUSSIA AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trade-marks in 
 
 China.* — June 28, ipo6. 
 
 Mr. Rockhill to Mr. Pokotilow. 
 
 Peking, June 28, 1906. 
 Mr. Minister and Dear Colleague: The Government of the United States 
 being desirous of reaching an understanding with the Government of Russia for 
 the reciprocal protection against infringement in China by citizens and subjects 
 of our respective nations of trade-marks duly registered in the United States and 
 Russia, I am authorized by the Secretary of State of the United States to inform 
 you that the American consular courts in China afford protection against in- 
 
 * Text (and translation) as printed in U. S. Treaty Series (No. 484). Printed also in 
 Isvicstia, 1914, Vol. I, p. 1 ; Malloy, p. 1535.
 
 NUMBER 1906/4: JUNE 28, 1906 607 
 
 fringement in China by American citizens of trade-marks the property of Rus- 
 sian subjects which have been duly registered in the United States. 
 
 I beg that you will kindly inform me whether like protection will be given 
 to American citizens in the consular courts of Russia in China against the in- 
 fringement by Russian subjects of their trade-marks duly registered in Russia. 
 
 I have the honor to be, my dear colleague, your obedient servant, 
 
 W. W. ROCKHILL. 
 
 His Excellency D. Pokotilow, 
 
 Envoy Extraordinary and Minister Plenipotentiary, etc., 
 
 Russian Legation, Peking. 
 
 Mr. Pokotilozv to Mr. RockhiU. 
 [Translation.] 
 
 Peking, June 28, 1906. 
 
 Mr. Minister and Dear Colleague : I have the honor to acknowledge the 
 receipt of your note of to-day's date by which you kindly inform me that the 
 Government of the United States being desirous of reaching an understanding 
 with the Imperial Government of Russia concerning the protection in China of 
 trade-marks duly registered in Russia and the United States, you have been 
 authorized to declare that the American consular courts in China have jurisdic- 
 tion in all matters concerning the infringement by persons subject to the juris- 
 diction of the United States of trade-marks the property of Russian subjects 
 which have been duly registered in the United States. 
 
 Being duly authorized by my Government, I have the honor to inform you 
 that the Imperial Government is equally ready to insure in China through the 
 Russian consular courts protection for trade-marks the property of persons 
 subject to the jurisdiction of the United States and duly registered in Russia 
 which may be infringed by Russian subjects. I deem it necessary, however, 
 to observe that infringements of trade-marks not being considered by the Ameri- 
 can statutes a criminal ofifense persons subject to the jurisdiction of the United 
 States having suffered injury can, through reasons of reciprocity, only claim 
 before the Russian courts indemnification for the damages sustained by them. 
 
 Please accept, Mr. Minister and dear Colleague, the assurance of my highest 
 consideration. 
 
 D. POKOTILOW. 
 
 His Excellency W. W. Rockhill, 
 
 Envoy Extraordinary and Minister Plenipotentiary, etc., 
 American Legation, Peking.
 
 608 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1906/5. 
 
 INTERNATIONAL AND CHINA. 
 
 International Red Cross Convention for the amelioration of the condition of the 
 wounded of the armies in the field. — July 6, 1906. 
 
 [The text of this convention is not included in the present compilation, as it appears 
 to have no particular interest in reference to China. Translations of the French texts of 
 the convention, concluded at Geneva, July 6, 1906, and of the final protocol of the Con- 
 ference for the revision of the Geneva convention (of August 22, 1864), signed at Berne, 
 August 22, 1906, are to be found in Malloy, p. 2183.] 
 
 NUMBER 1906/6. 
 
 BELGIUM AND RUSSIA. 
 
 Exchange of notes concerning the reciprocal protection of trade-marks in 
 
 China.*— October 15, 1906. 
 
 Note addressed by the Charge d'affaires of Belgium at Peking to the 
 Russian Minister, under date October 2/15, 1906. 
 
 I have the honor to acknowledge to your Excellency the receipt of the notef 
 which you were so good as to address to me on the subject of the reciprocal pro- 
 tection of Belgian and Russian trademarks in China. 
 
 This communication notes that the Imperial Government has given the neces- 
 sary instructions in order that the Russian consular tribunals may assure the 
 legal protection of trademarks belonging to Belgian nationals (i.e., ressortissants 
 beiges) and duly registered in Russia. 
 
 In taking note of this communication I have the honor to make known to 
 your Excellency that the Government of the King, for its part, assures the pro- 
 tection in China of Russian trademarks (i.e., marques de fabrique et de com- 
 merce russes), regularly registered in Belgium, which may be infringed by Bel- 
 gian nationals. 
 
 The King's legation, as well as the Belgian consulates, vice consulates and 
 agencies in China, are competent to take jurisdiction of such claims as may be 
 brought before them in such cases. 
 
 I have taken care to advise our consular agents in China of the conclusion, 
 
 * Translation from French text as printed in lavicstia, 1914, vol. 1, p. 2. 
 
 t The note referred to, dated September 29/October 12, 1906, was identical, mutatis 
 mutandis, with that addressed to the British Minister on October 16/29, 1906 (No. 
 1906/8, post).
 
 NUMBER 1906/7: OCTOBER 16, 1906 609 
 
 between Belgium and Russia, of the agreement which is effected by the exchange 
 of correspondence that has taken place between us. 
 Accept, etc. 
 
 (Sgd.) De Prelle. 
 
 NUMBER 1906/7. 
 
 ITALY AND RUSSIA. 
 
 Exchange of notes concerning the reciprocal protection of trade-marks in 
 
 China.t— October 16, 1906. 
 
 Note of the Italian Minister at Peking to the Russian Minister, under 
 
 DATE OF October 3/16, 1906. 
 
 By your note of today's date§ you were so good as to inform me that as the 
 Imperial Government desires to come to an agreement w^ith the Government of 
 Italy concerning the reciprocal protection in China of trademarks (i.e., marques 
 de fabrique et de commerce) duly registered in Russia and in Italy, you have 
 been authorized by the Minister for Foreign Affairs of Russia to declare to me 
 that the Government of Russia is ready to enforce, through its consular tribunals 
 in China, all claims relating to the infringement of trademarks (i.e., marques de 
 fabrique et de commerce), duly registered in Russia, committed by Russian sub- 
 jects aganist Italian nationals (i.e., ressortissants italiens). 
 
 In taking note of this communication I have the honor to inform you that 
 I am for my part authorized by the Royal Government to declare to you that the 
 infringement of Russian trademarks (i.e., marques de fabrique et de commerce 
 russes), duly registered in Italy, committed by persons subject to the jurisdiction 
 of the Italian consular tribunals in China, will, in accordance w'ith the provisions 
 of the law, be tried in the first instance by the consular tribunals mentioned above, 
 and on appeal by the Royal Court of Appeal at Ancona. 
 
 Accept, etc. 
 
 (Sgd.) Baroli. 
 
 t Translation from French text as printed in Isviestia, 1914, vol. I, p. 3. 
 § The note referred to was identical, mutatis inutatidis, with that addressed to the 
 British Minister on October 16/29th, 1906 (No. 1906/8, post).
 
 610 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1906/8. 
 
 GREAT BRITAIN AND RUSSIA. 
 
 Exchange of notes concerning the reciprocal protection of trade-marks in 
 
 China*— October 29, 1906. 
 
 Note of Russian Minister at Peking to British Minister. 
 
 Imperial Russian Legation, 
 Peking, October 16/29, 1906. 
 Mr. Minister and dear Colleague, 
 
 The Imperial Government being desirous of arriving at an agreement with 
 the Government of Great Britain in regard to the reciprocal protection, in China, 
 of trademarks (i.e., marques de fabrique et de commerce) duly registered in 
 Russia and in England, I have the honor to advise you that I am authorized by 
 the Minister for Foreign Affairs of Russia to declare to you that the Govern- 
 ment of Russia is ready to enforce, through its consular tribunals in China, all 
 claims relating to the infringement of trademarks (i.e., marques de fabrique et 
 de commerce), duly registered in Russia, committed by Russian subjects against 
 English nationals (i.e., ressortissants anglais). 
 
 I should be obliged if you would be so good as to advise me if the same 
 protection would be accorded, in the consular tribunals of Great Britain in China, 
 to trademarks belonging to Russian subjects and regularly registered in England, 
 which might be infringed by English subjects. 
 
 Accept, etc. 
 
 (Sgd.) D. Pokotilow. 
 
 Note of British Minister to Russian Minister. 
 
 Sir, Peking, October 30, 1906. 
 
 I have the honour to acknowledge the receipt of your note of the 29th 
 October, in which you are good enough to inform me that you have been au- 
 thorized by the Russian Minister of Foreign Affairs to declare that the Russian 
 Government are ready, through their Consular Tribunals in China, to enforce 
 any request relative to infringements of British trade-marks duly registered in 
 Russia, which may be committed by Russian subjects. 
 
 In reply, I have the honour to inform you that under the Order in Council 
 of February 2nd, 1899,! it is open to a Russian whose trade-mark, duly registered 
 in Great Britain, has been infringed by a British subject in China, to take pro- 
 ceedings against the latter in the British Court, provided — 
 
 * Translation from the French text as printed in Izviestia, 1914, vol. I, p. 4. Printed 
 also in Hcrtslet, p. 617. 
 
 t For the relevant articles of the Order in Council of February 11, 1907, replacing the 
 provisions of the Order in Council here cited, see note to the Anglo-American arrange- 
 ment concerning trade-marks in China (No. 1905/4), at page 505, ante.
 
 NUMBER 1906/9: NOVEMBER 30, 1906 611 
 
 (1) That the consent in writing of His Majesty's Minister or Charge 
 d'Affaires be obtained to the prosecution, but (2) such consent may be withheld 
 unless His Majesty's Minister or Charge d'Affaires is satisfied that effectual pro- 
 vision exists for the punishment in the Russian Consular Courts of Russian sub- 
 jects infringing British trade-marks. 
 
 In view of the assurances given by your Excellency in the note under reply, 
 I am authorized by His Majesty's Government to inform you that it is not open to 
 doubt that, in practice, the consent of the British Minister or Charge d'Affaires 
 would be given in any and every case where full reciprocity could be and was 
 granted by Russia. 
 
 I shall not fail to inform His Majesty's Government of this exchange of 
 notes nor to issue the necessary instructions to His Majesty's Consular Officers 
 in China. 
 
 I have, &c., 
 
 J. N. Jordan. 
 
 NUMBER 1906/9. 
 
 FRANCE AND RUSSIA. 
 
 Exchange of notes concerning the reciprocal protection of trade-marks in 
 
 China* — November 30, 1906. 
 
 Note of the French Minister at Peking to the Russian Minister, 
 
 UNDER date of NOVEMBER 17/30, 1906. 
 
 I have the honor to take note of your dispatch of today's date.f by which 
 you are so good as to make known to me that your Government will enforce, 
 through its consular tribunals in China, all claims presented by a French national 
 (i.e., nn ressortissant frangais) in respect to infringements of French trade- 
 marks (i.e., marques franqaises de fahrique et de commerce), duly registered in 
 Russia, which may be committed by Russian subjects. 
 
 I am, for my part, authorized by my Government to declare to you that the 
 French consular tribunals in China will, from today's date, assure the protection 
 of Russian trademarks (i.e., marques russes de fahrique et de commerce), duly 
 registered in France, which may be infringed by French nationals (i.e., ressortis- 
 sants frangais), and that for this purpose they will take jurisdiction of all claims 
 that may be presented to them in such cases by Russian subjects. 
 
 Accept, etc. 
 
 (Sgd.) Bapst. 
 
 * Translation from the Frencli text as printed in Icvicstia, 1914, vol. I, p. 6. 
 tThe note referred to was identical, mutatis mutandis, with that addressed to the 
 British Minister on October 16/29, 1906 (No. 1906/8, ante).
 
 612 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1906/10. 
 
 JAPAN AND CHINA. 
 
 Agreement for the rendition of the Port of Ying-k'on {Port of N ewchwang) .% — 
 
 December 5, 1906.^ 
 
 In accordance with the Four Articles agreed upon by the Governments of 
 China and Japan at Peking in the month of October last, || providing for the 
 return of Ying-k'ou by Japan to the control of China, the two Governments men- 
 tioned have now appointed representatives, who have met at Ying-k'ou and have 
 agreed upon the following : 
 
 1. Whereas Article I of the Peking Memorandum provides that previous 
 to the withdrawal of the Japanese Military forces regulations relating to quaran- 
 tine inspection (or public health) at Ying-k'ou shall be adopted by the Chinese 
 local authorities in consultation with the Japanese Consul, now, therefore, we, 
 representatives of the two Governments concerned, have agreed that, for the 
 time being, such matters shall be dealt with under the regulations adopted by the 
 Japanese military authorities, and that afterwards, should occasion arise requir- 
 ing their modification, the Chinese local authorities may of their own authority 
 take such action as may be needed. 
 
 2. Whereas Article II of the Peking Memorandum provides that all public 
 works begun during the military occupation, or for which arrangements were 
 made at that time shall be taken over by the local authorities, or by them allowed 
 
 X Translation from the Chinese text. 
 
 In connection with this agreement see also the treaty between Japan and China, Decem- 
 ber 22, 1905 (No. 1905/18, ante). 
 
 § Signed at Newchwang. 
 
 II The Chinese text reads "Japanese calendar 10th month (i.e., October); Chinese 
 calendar 9th moon (i. e., 18th October-15th November)." The Peking Agreement referred 
 to was signed November 9th, 1906, between the Wai Wu Pu and Mr. Hayashi, Minister 
 of Japan, in terms of which the following is a translation : 
 
 Agreement in regard to Rendition of Yingkow, November g, 1906. 
 
 " (1) Previous to the withdrawal of the Japanese troops from Ying-k'ou (Port of 
 Newchwang) all regulations relating to quarantine inspection and the prevention of epi- 
 demics must be determined by the local authorities in consultation with the Japanese 
 Consul. 
 
 " (2) All public works begun during the period of military occupation or arranged for 
 but not yet begun must be taken over and completed by the local authorities, or the latter 
 must allow the Japanese to complete them. 
 
 " (3) All matters relating to police and sanitation shall be under the control of the 
 Chinese local authorities, who shall administer them in a thoroughly efficient manner so as 
 to secure the general welfare. To this end, Japanese Police Inspectors and Medical Officers 
 are also to be employed. Should the administration be unsatisfactory in any particular the 
 Japanese Consul may make representations to the local authorities, who shall advise with 
 him and take such action as the circumstances may require. 
 
 " (4) Both the Native Customs and the Imperial Maritime Customs shall be under the 
 control of the Customs Taot'ai. The Chinese Government shall for the present deposit all 
 receipts from both Customs with the Yokohama Specie Bank, but hereafter, as soon as the 
 Bank of the Board of Finance shall have established its branch, these receipts shall be 
 deposited with both banks."
 
 NUMBER 1906/10: DECEMBER 5, 1906 613 
 
 to be undertaken by the Japanese, we now find that the Japanese mihtary authori- 
 ties have granted permission to a joint stock company to establish water works, 
 electric tramways, an electric light plant, and a telephone system at Ying-k'ou, 
 and we, representatives of the two Powers concerned, have agreed that the said 
 company may undertake the water works, electric tramways, and electric light- 
 ing, but that it will be necessary first to send the Regulations adopted by the com- 
 pany to Peking to be filed with the Board (s) concerned, and, if it shall appear 
 necessary to the said Board (s) so to do, to be altered, or to have additions made 
 to them, or excisions from them ; and the said company agrees to comply ac- 
 cordingly. 
 
 As for the telephone system, it should be taken over by the Imperial Chinese 
 Telegraph Service, and be operated by it, and the said Telegraph Service and 
 the company shall each appoint a representative to examine the telephone prop- 
 erty, as already established in Ying-k'ou, and estimate the price at which it shall 
 be bought. If these representatives fail to agree upon a price, the said Tele- 
 graph Service and the company shall together select a disinterested arbitrator to 
 determine the same, whose decision shall be accepted by both parties. 
 
 As to the abattoir, it shall be taken charge of by the Health Office, and the 
 manner of fixing the price at which it shall be bought shall be similar to that 
 adopted in the case of the purchase of the telephone system by the Telegraph 
 Service. 
 
 The light railway extending from Ying-k'ou to Niuchia-t'un shall be taken up 
 as soon as the electric tramway is completed. All works of public utility under- 
 taken by the Japanese military authorities, or arranged for but not yet begun, 
 the Chinese local authorities agree to take over and complete as planned. 
 
 3. Whereas it is provided in Article III of the Peking Memorandum that 
 matters afifecting police administration and public health shall be under the con- 
 trol of the Chinese local authorities ; that the management thereof shall be most 
 efficient so as to secure public safety; that Japanese police instructors and 
 physicians shall be employed in the administration, and that, if any cause of dis- 
 satisfaction should arise, the Japanese Consul may notify the local authorities 
 who shall consult with him and take the necessary action ; now we, representa- 
 tives of the two Governments concerned, have agreed that in the employment of 
 Japanese police instructors and physicians the same regulations shall be adopted 
 as in the case of the Japanese police instructors and physicians employed in 
 Tientsin, except in the matter of salaries ; and, if hereafter dissatisfaction should 
 occur in the administration of police afTairs, immediately upon a notification to 
 that effect from the Japanese Consul the local authorities shall consult with him 
 and take such action as may be needed. 
 
 4. No suits at law decided during the military occupation shall be reopened 
 by the Chinese local authorities. The records in all such cases, and other docu- 
 ments connected with them, shall be delivered by the military government to the 
 Chinese local authorities for filing. The military government shall also make 
 copies of all such records and deposit the same at the Japanese Consulate at 
 Ying-k'ou. 
 
 5. Whereas it is provided in Article 4 of the Peking Memorandum that
 
 614 CHINA TREATIES AND AGREEMENTS 
 
 both the Imperial Maritime Customs and the Native Customs shall be placed 
 under the control of the Customs Taot'ai, and that the Chinese Government shall 
 for the present deposit the receipts of both said customs with the Yokohama 
 Specie Bank, and that hereafter when the Bank of the Board of Finance shall have 
 established a branch (at Ying-k'ou) the receipts shall be deposited with both 
 banks ; now therefore we, representatives of the two Governments concerned, have 
 agreed that the local authorities concerned and the Yokohama Specie Bank shall 
 together arrange the terms of such deposit with the Yokohama Specie Bank at 
 Ying-k'ou. 
 
 6. The military government at Ying-k'ou agree that on the sixth of Decem- 
 ber, 1906, it will entirely withdraw from said port. 
 
 (Dated) Ming-chih (Meiji) XXXIX Year, 12th Month, 5th Day. Kuang 
 Hsii XXXII Year, 10th Moon, 20th Day. (December 5, 1906.) 
 (Signed) Moritaro Abe, 
 
 First Secretary, Japanese Legation, 
 Ananoshin Segawa, 
 
 Japanese Consul at Newchwang, 
 Lieut. Colonel Kikei Yokura, 
 Representatives of the Imperial Japanese Gov't. 
 Liang Ju-hao [M. T. Liang], 
 Intendant of the Chin-chen-SJian-hai-kuan Circuit, 
 
 Representative of the Imperial Chinese Gov't. 
 
 NUMBER 1907/1. 
 
 GERMANY AND RUSSIA. 
 
 Exchange of notes concerning the reciprocal protection of trademarks in China.X 
 
 — February 1, 1907. 
 
 Note of the German Minister at Peking to the Russian Minister, under 
 date of January 19/February 1, 1907. 
 
 By your dispatch of today's date § your Excellency was so good as to inform 
 me that as the Government of Russia is desirous of arriving at an understanding 
 with the Government of Germany concerning the reciprocal protection in China 
 of trademarks (i. e., marques de fabrique et de commerce) duly registered in 
 Russia and in Germany, you had been authorized by the Minister for Foreign 
 Affairs of Russia to declare to me that the Government of Russia is ready to 
 enforce, through its consular tribunals in China, all claims relating to the infringe- 
 ment of trademarks (i. e., marques de fabrique et de commerce), duly registered 
 
 t Translation from the French text as printed in Izviestia, 1914, vol. I, p. 7. 
 § The note referred to was identical, mutatis mutandis, with that addressed to the British 
 Minister on October 16/29, 1906 (No. 1906/8, ante).
 
 NUMBER 1907/2: MARCH 7, 1907 615 
 
 in Russia, committed by Russian subjects against German nationals (i. e., 
 ressortissants allemands) . 
 
 In reply to this communication I have the honor to bring it to the knowledge 
 of your Excellency that my Government gladly accedes to the proposed agree- 
 ment and has authorized me to take steps to that end herewith. I am authorized 
 to declare, for my part, to your Excellency that the Government of Germany will 
 assure the protection in China of trademarks (i. e., marques de fabrique et de, 
 commerce), the property of Russian nationals (i. e., ressortissants russes), 
 regularly registered in Germany, which may have been infringed by German 
 nationals (i. e., ressortissants allemands) . 
 
 The consular tribunals of Germany in China will therefore take jurisdiction 
 of all claims that may be presented them in such cases by Russian nationals 
 (i. e., ressortissants russes). 
 
 Accept, etc. 
 
 (Sgd.) Rex. 
 
 NUMBER 1907/2. 
 
 GREAT BRITAIN (British and Chinese Corporation, Limited) AND CHINA. 
 
 Agreement for the issue and regulation of a loan for the construction of the 
 Canton-Kowloon Raihvay* — March 7 , 1907 . 
 
 This Agreement is made at Peking on the twenty-third day of the first 
 month of the thirty-third year of Kwang Hsu, corresponding to the seventh 
 day of March, 1907, and the contracting parties are : — 
 
 The Wai-Wu-Pu acting under the authority of an Imperial Decree, of the 
 one part, and the British and Chinese Corporation, Limited, (hereinafter called 
 the Corporation) of the other part. 
 
 Whereas a preliminary agreement was made on the 28th March, 1899, 
 between H. E. Sheng, Director General of the Imperial Chinese Railway Admin- 
 istration, acting under the authority of the Tsung-li Yamen, of the one part, and 
 the British firm of Jardine, Matheson and Company, for themselves and on 
 behalf of the Hongkong and Shanghai Banking Corporation, representing as 
 Joint Agents the Corporation, of the other part, and it was part of the objects 
 thereof that the terms of another preliminary agreement signed by the same 
 contracting parties on the 13th May, 1898,t should be thereby adopted as a 
 preliminary agreement for the construction and working of a Railway from the 
 city of Canton to the boundary of the Kowloon leased territory under British 
 control, subject, however, as far as might be practicable, to the terms and con- 
 
 *Text as printed in Wang, p. 361. Printed also in Kent, p. 287; F. E. Review, vol. V 
 p. 148. See Note to this document, post. p. 626. 
 
 t Preliminary agreement for the Shanghai-Nanking Railway, attached to the final con- 
 tract of July 9, 1903 (No. 1903/2, ante).
 
 616 CHINA TREATIES AND AGREEMENTS 
 
 ditions thereafter agreed to in the final contract for the Shanghai-Nanking 
 Railway when signed and ratified. 
 
 Now it is hereby agreed by and between the parties hereto as follows : — 
 
 Article 1, — The Corporation agrees to issue, on behalf of the Imperial 
 Chinese Government, a sterling loan (hereinafter referred to as "the Loan") 
 for the amount of £1,500,000 on the terms and conditions hereinafter contained. 
 Imperial Chinese Government Bonds are to be issued for the entire amount, 
 similar to the Bonds of the Shanghai-Nanking Railway, with the Railway as first 
 mortgage security therefor. The Loan shall be in one issue, and the price agreed 
 upon is 94% of the nominal value, subject to the other provisions of this Article 
 as hereinafter stated. The interest on the Bonds shall be at the rate of 5% per 
 annum on their nominal value, payable half-yearly, on the first day of June and 
 the first day of December, and shall be calculated from the date of their sale to 
 the public. 
 
 The Loan shall be issued to the public as soon as possible after signing this 
 Agreement, but, if at the date of signature thereof, owing to an unfavorable 
 state of the market rendering the issue of the Loan and the payment of its 
 proceeds to the Viceroy of Canton impossible on the terms above named, then 
 in such case the Corporation shall thereafter, at such times as the Chinese Gov- 
 ernment may decide within a period not exceeding eight (8) months, issue the 
 Loan and pay the proceeds thereof to the Viceroy, deducting and retaining six 
 (6) points from the rate at which the Loan is actually issued to the public, what- 
 ever that rate may be, (i. e. if the issue price be 101 the Viceroy will receive 
 95 and so on). 
 
 Subject to the provisions of Article 16, the duration of the Loan is fixed at 
 thirty (30) years commencing from the date of the signature of this Agreement, 
 but no interest shall be paid on any Bonds which may be redeemed or cancelled 
 under the terms hereinafter mentioned after the redemption or cancellation 
 thereof. 
 
 On the face of each of these Bonds shall be expressed the value thereof in 
 the sum of ilOO, or in such different amounts as the Chinese Minister in London 
 in consultation with the Corporation may sanction. 
 
 It is understood that the Chinese Government may hereafter, in its discretion, 
 appoint a Director General of the Railway upon whom, in such case, will devolve 
 all the powers, functions and responsibility herein attributed to the Viceroy of 
 Canton (hereinafter called the Viceroy). 
 
 Article 2. — The proceeds of the Loan are to be used in the construction and 
 equipment of the Railway, and in paying interest on the Loan during the course 
 of construction. 
 
 The Railway, being the first mortgage security for the Loan, shall be built 
 and equipped under the direction of the Viceroy, in accordance with the provisions 
 of Article 6 hereinafter, and shall be built as economically as possible in accord- 
 ance with the best modern system. 
 
 It is understood that the Viceroy will secure all the necessary land for the 
 Railway, and will give the necessary instructions to expedite and facilitate the 
 work of construction. The Railway will be built in the first instance as a single
 
 NUMBER 1907/2: MARCH 7, 1907 617 
 
 line, but provision will be made, with the approval of the Viceroy, and wherever 
 necessary to meet traffic requirements, for the eventual construction of a double 
 line. 
 
 If, during the time of construction, the proceeds of the Loan, together with 
 the accrued interest thereon, payable by the Corporation, should, after the 
 deduction of the sums necessary, for the payments of interest on the Loan, 
 be insufficient to complete the construction of the Railway, the amount of 
 the deficiency shall either be provided from the Chinese Government's own 
 resources or by a Supplementary Loan to be hereafter issued by the Corporation, 
 the interest and other conditions of which Supplementary Loan shall be ar- 
 ranged when the time arrives, having due regard to the conditions of the money 
 market. 
 
 When the Railway is complete, if there is a surplus from the sale of Bonds, 
 the said surplus shall be at the disposal of the Chinese Government either to 
 redeem the Bonds in accordance with the terms of this Agreement as hereinafter 
 stated, or to be placed on deposit with the Hongkong and Shanghai Banking 
 Corporation for the purpose of paying interest on the loan, or for other pur- 
 poses beneficial to the Railway, in regard to which the Viceroy will communicate 
 in due course with the Corporation. 
 
 In all matters relating to the construction of the Railway it is expressly 
 agreed that particular heed shall be paid to the opinions and habits of the 
 Chinese people, and that, when practicable, Chinese shall be employed in posi- 
 tions of trust and responsibility in connection with the Railway. 
 
 In regard to earthwork, or such other work as Chinese are competent to 
 perform, contracts shall be entered into for such work with Chinese, under the 
 sanction of the Head Office, and the work itself shall be carried out in accord- 
 ance with plans and specifications of the Engineer-in-Chief and under his 
 supervision. 
 
 Detailed plans and estimates of cost, whether of the respective sections of 
 the Railway, or of any alterations of the same, are to be submitted for the 
 approval of the Viceroy, by the Engineer-in-Chief through the Managing 
 Director. 
 
 Article 3. — The Loan shall be secured by mortgage declared to be now 
 entered into in equity by virtue of this Agreement, and shall, as soon as possible 
 hereafter, be secured by a specific and legal first mortgage in favour of the 
 Corporation upon all lands, materials, rolling stock, buildings, property and 
 premises, of every description purchased or to be purchased for the Railway, 
 and on the Railway itself, as and when constructed, and on the revenue of all 
 descriptions derivable therefrom. 
 
 The provisions of this Article in respect of the mortgage, are to be construed 
 and treated as equivalent in purport and effect to a mortgage customarily executed 
 and delivered in England to a Trustee for the purpose of securing Loans and 
 Bond Issues upon Railway properties in foreign countries. 
 
 Article 4. — It is hereby agreed that in six (6) months after this agreement 
 is signed, the Corporation shall provide the amount necessary to proceed with 
 the detailed survey of the Railway, and for preliminary construction work if
 
 513 CHINA TREATIES AND AGREEMENTS 
 
 necessary, whether this amount comes from the sale or hypothecation of the 
 Bonds, or from advances made, provided that Bonds for the required amount 
 shall have been executed and delivered to the Corporation. If, after expiration 
 of eight (8) months from the date of the ratification hereof, the work of con- 
 struction shall not have been begun on the Railway, this Agreement is to become 
 null and void, but if failure to commence construction be due to any cause of 
 force majeure, a reasonable extension of this time limit shall be arranged between 
 the Viceroy and the Corporation. 
 
 Of the proceeds realized from the sale of the Bonds, after deducting so 
 much of them as may be required to be kept in England for the purchase of 
 materials and the payments of contracts there, or for repayment of advances, 
 such amounts as may be estimated and certified to by the Engineer-in-Chief 
 to the Viceroy through the Managing Director, as being actually required for 
 the construction of any particular section of the Railway, may be ordered by 
 the Viceroy, after consideration, to be transferred to Hongkong to be kept 
 in the Hongkong and Shanghai Bank, and placed to the credit of the con- 
 struction account of the Railway for the exclusive purpose of constructing the 
 Railway in the manner herein provided for under the supervision of the Head 
 Office and the Viceroy. 
 
 On each occasion of a remittance being made to China, the amount realised 
 in Sycee will be reported to the Viceroy, and any portion which may not be 
 required shall be placed at interest. Similarly, the balance in England shall be 
 placed at interest, to be allowed at the usual rate. 
 
 The accounts of the money spent from time to time in England, and of the 
 money transferred to the credit of the construction and other accounts for use 
 in China, are to be submitted quarterly to the Head Office for report to the 
 Viceroy for the information of the Waiwupu, and for his further report to the 
 Board of Revenue, and the Board of Communications, for record therein, after 
 such accounts have been approved and signed by him. 
 
 Article 5. — As to the form of the Bond, it is to be agreed upon by the Vice- 
 roy or by the Chinese Minister in London and the Corporation, as soon as possible 
 after the signature of this Agreement, but if, hereafter, the money markets 
 in London or other countries require any modification of the form of the Bond, 
 except in anything that afifects the amount of the Loan and the liability of the 
 Chinese Government, which are not to be touched at all, such slight modifications 
 may be made to meet the views of the money markets by the Corporation in 
 consultation with the Chinese Minister in London. 
 
 Any modifications are to be reported at once by the Corporation to the 
 Viceroy for the approval of the Waiwupu. 
 
 The Bonds are to be engraved entirely in the English language, and shall 
 bear the fac-simile of the signature of the Viceroy and of his seal of office, in 
 order to dispense with the necessity of signing them all in person, but the Chinese 
 Minister in London shall, previous to the issue of any Bonds, put his seal upon 
 each Bond with a fac-simile of his signature, as a proof that the issue and sale 
 of the Bonds are duly authorised and binding upon the Chinese Government. 
 
 Such Bonds are to be numbered consecutively, and as many Bonds as may
 
 NUMBER 1907/2: MARCH 7, 1907 619 
 
 be needed are to be properly engraved under the supervision of the Corporation, 
 and after they are sealed by the Chinese Minister in London, as hereintofore 
 provided, are to be countersigned by the Corporation. 
 
 All expenses for the engraving, safe deposit, and sale of the Bonds are to be 
 borne by the Corporation. 
 
 Article 6.— When the work of construction is ready to begin, the Viceroy 
 will establish a Head Office at Canton for the construction and management of 
 the Railway. This Office will be under the direction of a Chinese Managing 
 Director (appointed by the Viceroy) with whom will be associated a British 
 Engineer-in-Chief, and a British Chief Accountant. These British employes 
 shall be proposed and certified as competent for their posts, by the Corporation, 
 and shall be aproved by the Viceroy; if their services should prove unsatisfactory 
 to the Viceroy, he shall request the Corporation to dispense with their services 
 and to nominate their successors, and, in the event of the Corporation desiring 
 to remove them for good cause, it shall do so in consultation with the Viceroy. 
 It is understood that the duties performed by these employes are intended to 
 promote the mutual interests of the Chinese Government and the Bondholders 
 respectively, and it is therefore agreed that all cases of difference arising there- 
 from shall be referred for amicable adjustment between the Viceroy and the 
 Representative of the Corporation. The salaries and other terms of agreement 
 of the Engineer-in-Chief and the Chief Accountant shall be proposed by the 
 Corporation, for approval by the Viceroy; and the amount of their salaries etc., 
 shall be paid out of the general accounts of the Railway. 
 
 For all important technical appointments on the Railway Staflf, Europeans of 
 experience and ability shall be engaged, and wherever competent Chinese are 
 available, they shall also 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 Viceroy's approval ; similar pro- 
 cedure shall be followed in the case of Europeans employed in the Chief Account- 
 ant's department. In the event of the misconduct, or the incompetency of 
 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 Viceroy. The form of agreements made with European employes 
 shall conform to the usual practice. 
 
 The accounts of the receipts and the disbursements of the Railway's con- 
 struction and operation, shall be kept in Chinese and English in the Department 
 of the Chief Accountant, whose duty it shall be to organise and supervise the 
 same, and to report thereon for the information of the Viceroy through the 
 Managing Director, and of the Corporation. 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 the necessary arrangements 
 shall be made by the Managing Director in consultation with the Engineer-in- 
 Chief, and reported to the Viceroy in due course. 
 
 The duties of the Engineer-in-Chief shall consist in the efficient and economi- 
 cal construction and maintenance of the Railway, and the general supervision 
 thereof in consultation with the Managing Director. He shall always give
 
 520 CHINA TREATIES AND AGREEMENTS 
 
 courteous consideration to the wishes and instructions of the Viceroy, whether 
 conveyed directly or through the Managing Director, and shah always comply 
 therewith, having at the same time due regard to the efficient construction and 
 maintenance of the Railway. 
 
 A school for the education of Chinese in railway matters shall be established 
 by the Managing Director, subject to the approval of the Viceroy. 
 
 Article 7. — Under the provisions of Article 3 of this Agreement the 
 properties covered by the first mortgage security hereby created include the Rail- 
 way, its property and equipment, and the mortgage is to be executed by a deed 
 in the form contemplated by the said Article. But subject to the guarantee and 
 mortgage thus given by the Chinese Government, it is hereby declared that this 
 Railway is in fact a Chinese property. 
 
 All land that may be required along the whole course of the Railway within 
 survey limits, and for the necessary sidings, stations, repairing shops and car 
 sheds, to be provided for in accordance with the detailed plans now made, or 
 hereafter to be made by the Engineer-in-Chief, and approved by the Viceroy, 
 shall be acquired by the Viceroy at the actual cost of the land, and shall be 
 paid for out of the proceeds of the Loan. 
 
 The title deeds of the land for the Railway and all other lands shall be 
 free from all encumbrances and entanglements and shall, from time to time, 
 as soon as secured, be registered in the name of the Railway. 
 
 Notices of all purchases of lands for the Railway within the survey limit 
 (together with corresponding title deeds) are to be transmitted by the Railway 
 Head Office under the direction of the Viceroy to the local Agent of the Corpor- 
 ation for record and preservation in its office in Hongkong, and for the purpose 
 of establishing the first mortgage security until the time when the same are to be 
 returned to the viceroy, as hereinafter in this Article provided. 
 
 All lands, the title deeds of which are lodged with the Corporation as part 
 of the first mortgage security of the Loan, shall not be disposed of in any way by 
 hire, lease, or sale, to any party, for any purpose whatsoever, without the written 
 consent of the Viceroy, except only in the event of the Imperial Chinese Gov- 
 ernment failing to pay the interest or principal of the Bonds, and then in accord- 
 ance with the powers in the deed of mortgage. 
 
 The lands thus bought shall be free from all encumbrances, liabilities and 
 entanglements, and shall be conveyed by full and sufficient deeds of assignment 
 according to Chinese law, all of which are to be kept and recorded in the Hong- 
 kong Office of the Corporation, and are to be held by it as a first mortgage 
 security for the Bonds under the provisions of this agreement, until such time as 
 principal and interest of the bonds, together with all indebtedness, shall havie 
 been paid ofif, when the same shall then be returned to the Viceroy, except only 
 in the case of the Imperial Chinese Government's failure to pay the interest or 
 principal of the Bonds and consequent realization under the powers of the 
 mortgage security. 
 
 For the proper protection of the first mortgage security the Chinese Gov- 
 ernment undertakes that until the Bonds shall have been redeemed, no part of the 
 lands comprised in the mortgage security or the Railway with its appurtenances
 
 NUMBER 1907/2: MARCH 7, 1907 621 
 
 shall be transferred or given to another party, or shall be injured, and that the 
 rights of the first mortgage shall not be in any way impaired, unless with the 
 consent in writing of the Corporation, which shall only be given if in the opinion 
 of the Corporation the interests of the Bond-holders will not be affected. 
 
 And further, that until the interest and principal of the loan and all the 
 indebtedness shall have been paid off, or unless with the express consent in 
 writing of the Corporation, the Chinese Government or the Viceroy shall not again 
 mortgage the above properties to another party whether Chinese or foreign. 
 
 During the period of this agreement no special taxes shall be levied by the 
 Chinese Government on the Railway, its appurtenances, or earnings : but all 
 taxes at present payable, such as land tax, as well as any taxes which the 
 Chinese Government may hereafter institute, such as stamp duty, etc., and 
 which may be applicable generally to all commercial transactions in China, shall 
 also apply in the case of the Railway and its operations. 
 
 Article 8. — It is agreed that if the half-yearly interest on the Bonds is not 
 paid on any due date thereof, or if the principal of the Loan be not paid in accord- 
 ance with the amortisation schedule hereto attached, the whole Railway with all 
 its appurtenances herein mortgaged to the Corporation for the Bondholders, shall 
 be handed over to the Corporation to be dealt with by it according to law in 
 such manner as will ensure the proper protection of the interests of the Bond- 
 holders, provided, however, that if the failure to make payment at any one date 
 be due to causes beyond the control of the Chinese Government, and if the 
 Viceroy request the Corporation to postpone the taking over of the Railway for 
 a reasonable period of grace, the question shall be amicably discussed and 
 decided between the Viceroy and the Representative of the Corporation. When 
 the whole Loan and the interest due thereon and all the indebtedness shall 
 have been paid ofif, the Railway with all its appurtenances in good working 
 condition shall revert to the possession and management of the Chinese Govern- 
 ment according to the provisions of this Agreement. 
 
 Article 9. — As remuneration for all services rendered by the Corporation 
 during construction of the Railway, the Corporation shall receive the sum of 
 i35,000 half of which shall be paid when the construction work is half completed, 
 but not later than eighteen (18) months after commencement of construction, 
 and the other half upon completion of the line. This amount shall be regarded 
 as a commutation of all commissions to which the Corporation and its Agents 
 would properly be entitled, and of payments of all services rendered in the 
 construction and equipment of the Railway, in respect of the present Loan ; 
 but in the event of any branch lines being decided upon by the Chinese Gov- 
 ernment for construction in connection with this Railway, and if the Chinese 
 Government decide to build the same by issue of a foreign Loan and not from 
 its own resources, then the Corporation shall have the first option of tendering 
 for such Loan, and a further payment, proportionate to the amount of such 
 supplementary Loan, and calculated at the same rate as the commutation herein- 
 above mentioned, shall be made to the Corporation as commutation of its com- 
 mission for all services in respect of construction. 
 
 In return for this commuted commission, the Viceroy is entitled to require
 
 622 CHINA TREATIES AND AGREEMENTS 
 
 the Corporation to superintend the purchase of all materials required for the 
 construction and equipment of the Railway, which shall be purchased in the 
 open market at the lowest rate obtamable, it being understood that all such 
 materials shall be of good and satisfactory quality. At equal rates and qualities, 
 goods of British manufacture shall be given preference over other goods of 
 foreign origin. Invoices and inspector's certificates are to be submitted to the 
 Vicerory. 
 
 With a view to encouraging Chinese industries, Chinese Government and 
 other materials are to be preferred, provided price and quality are suitable. 
 
 No commission shall be allowed to the Corporation on the purchase of 
 materials except as above provided. All trade discounts or rebates, if any, are, 
 during construction, to go to the construction account, and after completion, to 
 the credit of the Railway. 
 
 Article 10. — In the construction of the line, in the working of the Railway, 
 and in the performance of the different kinds of business connected with the Rail- 
 way, no interference or obstruction by Chinese or foreigners will be permitted. 
 The Chinese Government will provide protection for the Railway while under 
 construction or when in operation, and all the properties of the Railway, as well 
 as Chinese and foreigners employed thereon, are to enjoy the utmost protection 
 from the local officials. 
 
 The Railway may maintain a force of Chinese police with Chinese officers, 
 their wages and maintenance to be wholly defrayed as part of the cost of the 
 construction and maintenance of the Railway. In the event of the Railway requir- 
 ing further protection by the military forces of the Imperial or Provincial Govern- 
 ments, the same will be duly applied for by the Head office and promptly afforded, 
 it being understood that such military forces shall be maintained at the expense of 
 the Government or the Province. 
 
 Article 11. — All receipts and earnings of the Railway shall be regularly 
 paid in to the Railway's account with the Hongkong and Shanghai Banking 
 Corporation, and on such funds, whether on daily balance or on fixed deposit, 
 the Bank's usual rate of interest shall be allowed. 
 
 All expenses of working and maintaining the line shall be paid from the 
 receipts and earnings, and any remainder thereof shall be charged with the 
 service of the Loan. If, after payment of these expenses, and making due pro- 
 vision for payment of interest at 5% per annum on the Bonds, and for repay- 
 ments of principal due in accordance with the amortisation schedule hereto 
 attached, there remain surplus funds unappropriated and properly available 
 for other purposes, such funds shall be at the disposal of the Chinese Gov- 
 ernment to be used in such manner as the Viceroy may decide, provided always 
 that after completion and opening of the hne to traffic the amount sufficient for 
 regular payments of interest and repayments of principal shall be deducted from 
 such surplus funds, if any, and shall be deposited with the Hongkong and 
 Shanghai Banking Corporation six months before the date at which such pay- 
 ments fall due. 
 
 In the event of there being no surplus funds available as aforesaid from the 
 earnings of the Railway, the amount required for payments of interest and re-
 
 NUMBER 1907/2: MARCH 7, 1907 623 
 
 payments of principal, shall be provided in accordance with the conditions of 
 Article 14 hereinafter. 
 
 Article 12. — The Corporation are hereby appointed Trustees for the Bond- 
 holders, and in any future negotiations respecting these Loans, or matters arising 
 in connection therewith, which may take place between the Viceroy and the 
 Corporation, the Corporation shall be taken as representing the Bondholders, 
 and as such, empowered to act on their behalf. In view of the fact that the 
 Corporation's responsibility to the Bondholders continues after construction, 
 whereas, as stated in Article 9, its commuted commission for services rendered 
 is limited to the period of construction, and the Corporation is not thereunder 
 entitled to any further remuneration during the period of the Loan, the Corpor- 
 ation shall receive as remuneration for its services and responsibility in acting 
 as Trustees for the Bondholders, the sum of il,000 per annum, such remuneration 
 to commence from the date of issue of this Loan and to terminate upon its 
 complete redemption. 
 
 Article 13. — All materials of any kind that are required for the construc- 
 tion and working of the Railway, whether imported from abroad or from the 
 provinces to the scene of the work, shall be exempted from likin so long as such 
 exemption remains in force in respect of other Chinese Railways. The Bonds 
 of this Loan, together with their coupons and the income of the Railway, shall 
 be free from imposts of any kind by the Government of China. 
 
 Article 14. — It is agreed that during the time of the construction of the 
 Railway, the interest on the Bonds and on any advances made by the Corporation 
 is to be paid from the proceeds of the Loan. The accruing interest from any 
 proceeds of the Loan not used during the period of construction, and the earnings 
 derived by the Chinese Government from the working of any sections of the 
 Railway as they are built, are to be used to make up the amount required for 
 the payment of the said interest, and if any deficiency remains it is to be met 
 from the proceeds of the Loan. 
 
 When the construction of the Railway is wholly completed, the interest on 
 the Bonds is to be paid, from the income or earnings of the Railway received by 
 the Chinese Government, every half-year on the first day of June and the first 
 day of December. 
 
 It is hereby agreed that the amount required for the payment of interest 
 and the repayment of principal, together with a sum of one-quarter of one per 
 cent, on such amounts, to cover commission to the Hongkong and Shanghai 
 Banking Corporation, who are hereby appointed Agents for the entire service 
 of repaying the Loan, shall be paid to them fourteen (14) days before the due 
 dates in Hongkong or in Canton (at the option of the Viceroy when settling 
 exchange) in local currency sufficient to meet such payments in sterling in 
 London, exchange for which shall be settled with the Hongkong and Shanghai 
 Banking Corporation, the Viceroy having the option of settling exchange at any 
 date or dates within six (6) months previous to any due date for the repayment of 
 interest and principal. 
 
 The Chinese Government unconditionally undertakes, and hereby promises, 
 to pay the principal of the Loan and the interest on the Loan on the due dates
 
 524 CHINA TREATIES AND AGREEMENTS 
 
 fixed therefor. If, at any time, the earnings of the Railway, together with 
 funds available from the proceeds of the Loan, are not sufficient to meet the 
 interest on the Bonds and the repayment of capital in accordance with the 
 amortisation schedule hereto attached, the Viceroy shall devise means for 
 supplying the deficiency, and should his inability to do so appear probable, 
 he shall memorialise the Government to take measures to make up the defi- 
 ciency from other sources, and thus be ready to pay ofif the indebtedness, so that 
 the reauired amount may be placed in each case at least fourteen days previous 
 to the due dates of such payments, in the hands of the Hongkong and Shanghai 
 Banking Corporation. 
 
 Article 15. — The Corporation may, subject to all its obligations, transfer 
 or delegate all or any of its rights, powers, and discretions, to its successors or 
 assigns, but the Corporation, which is a Corporation formed under English law, 
 shall not transfer its rights under this agreement to any other nation, or people 
 of any other nationality, except British or Chinese. Similarly, the Chinese 
 Government's rights and authority under this Agreement shall not be transferred 
 to persons of other nationality. 
 
 It is further understood that the Chinese Government will not build another 
 line competing with this Railway to its detriment. 
 
 Article 16. — The term of the Loan, as stated in Article 1, shall be thirty 
 (30) years. Repayment of principal shall commence after the expiry of 12j/^ 
 years from the date of the Loan and shall be completed in 17^ years by yearly 
 payments to the Hongkong and Shanghai Banking Corporation as Agents for the 
 service of the Loan, acting for the Corporation under the terms of this Agree- 
 ment, in accordance with the amortisation schedule hereto attached.^ 
 
 If, at any time after the expiry of I23/2 years from the date of the Loan, the 
 Imperial Chinese Government should wish to redeem the outstanding amount 
 of the Loan, or any portion of it, not yet due under the provisions of the 
 amortisation schedule hereto attached, not less than six months' notice shall be 
 given in writing by the Viceroy to the Representative of the Corporation, 
 declaring the number of additional Bonds so required to be redeemed, where- 
 upon the Representative of the Corporation shall immediately proceed to make 
 such arrangements as may be necessary and usual for the redemption of the 
 number of Bonds specified, which, when duly redeemed after payment by the 
 Imperial Chinese Government of the proper amount due thereon, shall be 
 cancelled and delivered to the Viceroy. 
 
 All Bonds thus redeemed, in excess of the amount specified in the amortisa- 
 tion schedule hereto attached, before the expiry of 25 years from the date of 
 the Loan, shall be paid for with a premium of 2 J/2% over their face value, (i. e. 
 il02.10 will be required to pay for ilOO), but after 25 years Bonds may be 
 redeemed over and above the amounts specified in the schedule without premium 
 upon notice being given in the manner above specified. 
 
 As soon as the Loan has been completely redeemed, this Agreement shall 
 become null and void and the mortgage shall be cancelled. 
 
 Article 17. — If, during construction, any proceeds of the sale of the Bonds 
 
 t Amortisation schedule is omitted here.
 
 NUMBER 1907/2: MARCH 7, 1907 625 
 
 are lying unused and bearing interest on their deposit whilst the construction 
 of the Railway is going on, such interest is to be credited to the general account 
 of the Railway in order that the Railway may enjoy the full advantage thereof. 
 It is also agreed that, if the Corporation shall think it expedient before the 
 sale of any of the Bonds to advance any money for the work, such advances, 
 together with the interest thereon not exceeding a charge of 6% per annum, 
 shall be deducted from the proceeds of the sale of the Bonds. 
 
 Article 18. — The junction of the sections of the Railway from Canton to 
 Jthe boundary of the Kowloon leased territory under British control, and from 
 the said boundary to the port of Kowloon respectively, and the subsequent joint 
 working of the two sections, shall be arranged by agreement between the Viceroy 
 of Canton and the Governor of Hongkong. 
 
 Article 19. — This Agreement is signed under the authority of an Imperial 
 Edict dated the seventh day of February, 1907, which has been officially com- 
 municated to the British Minister in Peking by the Waiwupu. 
 
 Article 20. — This Agreement is executed in quintuplicate in English and 
 Chinese, one copy to be retained by the Viceroy, one by the Waiwupu, one by 
 the Board of Communications, one by the British Minister, and one by 
 the Corporation, and should any doubt arise as to the interpretation of the 
 Agreement the English text shall be accepted as the standard. 
 
 Signed at Peking by the contracting parties this twenty-third day of the 
 first month of the thirty-third year of the Emperor Kwang Hsii, being the 
 seventh day of March, nineteen hundred and seven. 
 [Seal of Waiwupu.] 
 [Seal and Signature of His Excellency Tang Shao-yi, 
 
 representing the Waiwupu.] 
 Witnesses to signature of H. E. Tang Shao-yi. 
 
 KuNG. Hu. 
 
 For the British & Chinese Corporation Ltd. 
 
 (Signed) J. O. P. Bland. 
 
 Witnessed by : 
 
 Jardine Matheson & Co. 
 For the Hongkong & Shanghai Banking Corporation: 
 
 (Signed) H. S. Gardner, 
 
 Agent. 
 
 Joint Agents: 
 
 The British & Chinese Corporation, Limited.
 
 626 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 Further advances on account of the Canton-Kowloon Railway were arranged on June 6, 
 1913, in the terms of the following letter (as given in JVang, p. 391) : 
 
 Letter of Agreement for Advances on Canton-Kowloon Railway, June 6, 1913. 
 
 The British and Chinese Corporation, Limited. 
 
 Peking, June 6th, 1913. 
 The Hon. Mr. Chu Chi-Chien, 
 
 Minister of Communications, Peking. 
 
 Sir, 
 
 I have the honour to inform you that the Board of Directors of the British and Chinese 
 Corporation Limited have now consented to the proposed arrangements for advances on 
 account of the Canton-Kowloon Railway, on the following terms and conditions. 
 
 1. The British and Chinese Corporation Limited agrees to advance to the ^Ministry of 
 Communications the sum of Fifty Thousand Pounds Sterling (£50,000) to be placed to the 
 credit of the Canton-Kowloon Railway in the Hongkong and Shanghai Bank, London. This 
 sum will be advanced in one amount or in instalments, as the ^Ministry of Communications 
 may decide, for the term of 2 years, calculated from the date of payment of the first 
 instalment. Interest will be at the rate of 7% per annum, calculated from the date of pay- 
 ment of each instalment. 
 
 2. Of the aforementioned advance the sum about £35,000 will be applied to the pur- 
 chase of rolling stock and other urgent requirements of the Canton-Kowloon Railway, and 
 about £15,000 to the repayment of the Peking-Mukden Railway for rolling stock supplied to 
 the Canton-Kowloon Railway. 
 
 3. The Ministry of Communications on behalf of the Chinese Government uncondi- 
 tionally accepts direct responsibility for this advance and hypothecates as security therefor 
 the rolling stock purchased or to be purchased under Clause 2. Repayment will be made 
 either by 4 instalments of £12,500 every six months calculated from the date of payment of 
 the first instalment, or in one amount at the expiration of 2 years, calculated from the date 
 of payment of the first instalment, as the ^Ministry of Communications may decide : payments 
 of interest will cease as and when instalments are repaid. 
 
 4. In consideration of the above advance the British and Chinese Corporation Limited 
 shall continue to act as purchasing agents of the Canton-Kowloon Railway for a period of 
 five years from the date of the first instalment on the same terms and conditions as hitherto 
 at a commission of five per cent (5%). 
 
 5. The terms and conditions of this letter of agreement will be communicated by the 
 Ministry of Communications to the Waichiaopu for communication by them to the ^Minister 
 for Great Britain in Peking. 
 
 I have the honour to request that you will be good enough to signify your acceptance 
 and confirmation of the arrangements and conditions herein contained by affixing your 
 signature to the statement to this effect below, retaining one copy of the letter so executed 
 for your files and returning the other to the undersigned. 
 I have the honour to be. Sir. 
 
 Your obedient servant, 
 
 (Signed) S. F. M.w'ers. 
 
 . _ .. I The British and Chinese 
 '•-^^^'-' Corporation Limited. 
 
 I hereby accept and confirm on behalf of the Ministry of Communications the arrange- 
 ments and conditions herein contained. 
 
 [Chinese Signature and Seal]
 
 NUMBER 1907/3 : APRIL 15, 1907 627 
 
 NUMBER 1907/3. 
 
 JAPAN AND CHINA. 
 
 Convention regarding the Hsinmin-Mukdcn and Kirin-Ch'angch'un Railways^ 
 
 —April 15, 1907. 
 
 Gonsuke Hayashi, Envoy Extraordinary and Minister Plenipotentiary of 
 Japan, and Na-t'ung, Ch'u Hungchi, and Tong Shao-i, Ministers of the Imperial 
 Chinese Board of Foreign Affairs, having been appointed thereto by their re- 
 spective governments, have agreed upon the following Articles : — 
 
 I. The Chinese Government, being desirous of purchasing the Hsin-min 
 Fu-Mukden Railway, constructed by Japan, hereby agrees that the purchase 
 price thereof shall be Japanese Gold Yen 1,660,000, to be paid through the 
 Yokohama Specie Bank at Tientsin. 
 
 The status of this railway shall be changed by the Chinese Government to that 
 of the lines built by China herself, and it is agreed that one-half of the capital 
 needed for that part of the line east of the Liao River shall be borrowed from 
 the South Manchuria Railway Company. 
 
 II. The Chinese Government, being about to construct a railway line herself 
 from Kirin to Changchun Fu, agrees to borrow from the aforesaid Company 
 one-half of the capital needed for this work. 
 
 III. The conditions of the loans provided for in Articles I and II, with 
 the exception of the periods within which they are to be repayable, shall be in 
 all respects similar to those of the loan contracts of the Railways Inside and 
 Outside Shan-hai Kuan. The most important conditions are mentioned below. 
 The Regulations for the management of the railway lines shall correspond with 
 the methods at present employed by the General Office of the Railway Lines 
 Inside and Outside Shan-hai Kuan. 
 
 (a) The periods within which the loans shall be repaid shall be 
 
 for that part of the Hsin-min-Mukden Line east of the Liao River 18 years, 
 and 
 
 for the Kirin-Changchun Line 25 years. 
 
 No repayment in full of these loans shall be allowed before the expiration 
 of the periods named. 
 
 (6) The security for the loan from the South Manchuria Railway Com- 
 pany for that part of the Hsin-min-Mukden Line east of the Liao River shall 
 be the real property of the aforesaid section and its earnings. 
 
 The security for the mercantile shares to be issued by the Kirin-Changchun 
 Railway Administration as well as for the loan to be made from the South ]\Ian- 
 churia Railway Company shall be the real property of the said Railway and its 
 earnings. 
 
 * Translation from the Chinese text as printed in Wang, p. 127. Printed also in For. 
 Rel, 1907, p. 776; Herfslet, p. 397; F. E. Rcviczv. vol. XI, p. 391. See Note to this docu- 
 ment, post, p. 629.
 
 628 CHINA TREATIES AND AGREEMENTS 
 
 So long as these loans are not repaid by the Chinese Government, the 
 aforesaid property and earnings of the above-named lines shall not be pledged 
 as security for any other loan. 
 
 During the periods of these loans the Chinese Government agrees that the 
 buildings, machinery, rolling-stock, and road-bed of the section of the Hsin- 
 min-Mukden Railway east of the Liao River and of the Kirin-Changchun 
 Railway shall be kept in good condition, and furthermore that such additions 
 will be made to the rolling-stock from time to time as may be required to satisfy 
 demands of the traffic. 
 
 If the Kirin-Changchun Line should hereafter build branch lines or an ex- 
 tension, the construction of such lines shall rest of right with the Chinese 
 Government, but, if there should be a lack of capital, application shall be made 
 to the (South Manchuria Railway) Company for an arrangement. Should 
 China, however, appropriate funds herself for the construction of any other 
 railway lines than those mentioned, it shall not concern the South Manchuria 
 Railway Company. 
 
 (c) The loans and the interest thereon are guaranteed by the Chinese 
 Government, and should there be any failure to make payment of interest or re- 
 payment of principal at the proper periods, the Company shall at once notify 
 the Chinese Government, which shall pay over to the Company the amount of 
 the shortage. If the Chinese Government, after such notification by the Company, 
 shall be unable to make good the deficit in the payments of principal or interest, 
 the line in question with its real property shall be handed over to the temporary 
 control of the Company until the shortage is made good, after which it shall be 
 returned to the control of the Railway Administration. 
 
 If, however, the shortage be for a small amount only, an extension of time 
 shall be granted as an accommodation, but never for more than three months. 
 
 (d) During the periods of these loans the Engineer-in-Chief employed shall 
 be a Japanese, and should there be an insufficient supply of Chinese for the 
 various posts in the service of the railways, Japanese may be employed with the 
 Chinese. If at any time it shall become necessary to change the Engineer-in- 
 Chief, consultation must first be had with the (South Manchuria Railway) 
 Company before appointment may be made. There shall also be appointed one 
 Japanese accountant, who must be thoroughly qualified, and who shall have 
 entire responsibility for the arrangement and over-sight of the various accounts 
 of the railways, but in his supervision of receipts and expenditures he must 
 consult and act with the Director General. 
 
 (e) The railways mentioned being Chinese Government lines, the latter shall 
 have the right to transport soldiers and subsistence over either line free of charge 
 whenever military aflfairs or measures of relief shall require. 
 
 (/) All earnings of the railways in question must be deposited in Japanese 
 banks. As to the terms upon which such deposits shall be made, satisfactory 
 arrangements shall be agreed upon by the parties concerned when the loan con- 
 tracts are drawn up. 
 
 IV. The Chinese Government immediately after the purchase of the present 
 Hsin-min-Mukden Railway shall enter into a contract with the South Man-
 
 NUMBER 1907/3; APRIL 15, 1907: NOTE 629 
 
 churia Railway Company for the loan in connection with that section of the line 
 east of the Liao River, and shall also appoint and direct a Chinese engineer 'to 
 consult and act with the Japanese engineer in making a survey of the Kirin-Chang- 
 chun Line to furnish a basis for estimating the amount of the loan needed for the 
 construction of the line, and within six months after the completion (of the 
 survey) shall enter into a contract with the South Manchuria Railway Company 
 for the loan. 
 
 V. The lines from Hsin-min to Mukden and from Kirin to Changchun under 
 the management of China must connect with the South Manchuria Railway 
 line. The Tientsin-Shan-hai Kuang Railway Administration and the South Man- 
 churia Railway Company shall appoint representatives to consult together and 
 draw up the necessary regulations. 
 
 VI. The rate at which the loans specified in Articles I and II shall be issued 
 shall be determined fairly in accordance with the terms of the most recent loan 
 negotiated by China with any foreign country. 
 
 VII. Within one month after the payment of the purchase price of the Hsin- 
 min-Mukden Railway, the Chinese Railway Administration shall appoint officers 
 to take control of the same. 
 
 Japanese Calendar, Meiji XL Year, Fourth Moon, 15 Day. 
 Chinese Calender, Kuanghsu XXXIII Year, Third Moon, 3 Day. (April 
 15, 1907.) 
 
 Note. 
 
 In connection with this convention see also the agreement for the handing over of the 
 Hsinmin-Mukden Railway, May 27, 1907 (No. 1907/5, post) : Supplementary Agreement for 
 a loan for the Hsinmin-Mukden and Kirin-Changchun Railways, November 12, 1908 (No. 
 1908/18, post) : detailed agreements concerning the Hsinmin-Mukden and the Kirin-Chang- 
 chun Railway loans, _ August 18, 1909 (Nos. 1909/6 and 1909/7. post): also, with particular 
 reference to the Kirin-Changchun Railway, see Article 6 of the agreement relating to 
 Chientao, September 4, 1909 (No. 1909/10, post), and Article 7 of the Sino-Japanese treaty 
 respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 1915/8, post), 
 and Kirin-Changchun Railway loan agreement of October 12, 1917 (No. 1917/11, post). 
 
 The following is a translation from the Chinese text of an agreement for the con- 
 struction of the Kirin-Changchun Railway by the Chinese Eastern Railway, which had been 
 signed June 28/July 11, 1902: 
 
 Preliminary Agreement for Kirin-Changchun Railway, July ii, 1902. 
 
 1. — The construction and management of the Kirin-Changchun railway by the Chinese 
 Eastern Railway Company is undertaken with the express object of encouraging the trade 
 of the city of Kirin. Its name shall be the Kirin Branch Railway. The Regulations as to 
 its construction are given below. The Regulations contained in the contracts entered into 
 with the Chinese Government on the 2d. of the Eighth Moon, XXII Year of Kuanghsu, 
 Chinese Calendar, that is August 27 (September 8). 1896, Russian Calendar [No. 1896/5. 
 ante], and on the 18th of Fifth Moon, XXIV Year of Kuanghsu, Chinese Calendar, that is 
 June 24 (July 6, 1898) [No. 1898/15, ante] for the construction of the main line of the 
 Chinese Eastern Railway, and the Southern Manchuria Branch line, respectively, do not 
 apply to the construction of this Kirin Branch line, and are not to be observed in dealing 
 with it. 
 
 2. — For the supervision of the construction of this railway in a thorough and honest 
 manner, there shall be established a Supervising Commission, the General Director of which 
 shall be the Tartar General of Kirin, whose authority shall in no wise differ from that 
 exercised by the General Director of the main line, His Excellency, Hsii, with reference 
 to that line, and the Deputy Lieutenant General of Kirin shall be the Assistant Director.
 
 530 CHINA TREATIES AND AGREEMENTS 
 
 The consulting members of the Commission shall be the Kirin Taot'ai, the Superintendent 
 of Works, the Assistant Superintendent of Works, and the Agent empowered to act in 
 behalf of the Superintendent of Works. 
 
 3. — Before undertaking the construction of this branch line, the Superintendent of 
 Works shall send a deputy to survey and fix the direction of the line, and prepare a map of 
 the same, after which the Tartar General of Kirin and the Superintendent of Works of 
 the Chinese Eastern Railway must consult together and agree to approve. In surveying 
 this line steps must be taken to carry it around any villages, houses, graves, or market 
 towns. 
 
 4. — In all matters pertaining to the construction and management of this branch line 
 eflforts shall be made to adopt the best methods in the hope that there may be a constant 
 tendency to improvement which will secure success. 
 
 To obtain the land needed for the branch line, it will be necessary to first make a map 
 and submit the same to the Tartar General of Kirin for his approval. But the people of the 
 province depend upon the cultivation of their lands for a living, and all lands needed for 
 railway stations, telegraph lines, or for obtaining needed sand, rock, earth, lime, etc., must 
 be paid for at a just estimate of their real value, based upon their quality as agricultural 
 lands ; it will not be permitted to determine prices as was done in the case of the main line. 
 
 If any of the lands referred to are public lands, no payment need be made for them, 
 but, if they be private lands, payment must be made promptly to enable the owners to 
 remove elsewhere. 
 
 5. — All lands needed for the road must be definitely bought at one time, after which 
 there must be no further additions or extensions made. In the case of all lands taken for 
 the use of this railway the Tartar General must first examine the map of the same and give 
 his approval, and the price must be paid in full before such lands can become the property 
 of the railway. All lands that are the property of the said Company shall be free of all 
 land taxes. The said Company shall have sole power to control the same, as well as to 
 construct buildings, execute other necessary works, and establish telegraph lines for the use 
 of the railway. All regulations relating to the operation of this railway, including tariffs 
 for goods and passengers, shall be fixed by the Chinese Eastern Railway Company, itself. 
 All receipts of the said Company, such as the earnings of the traffic and income from the 
 telegraphs shall be free from every sort of taxation. If any mines be opened, arrange- 
 ments shall be made hereafter for dealing with them; this rule does not apply to them. 
 
 6. — All materials needed by the Chinese Eastern Railway Company for the construction 
 and operation of this branch line shall be obtained from the shops at Harbin as needed; 
 it will not be necessary to establish other shops at Kirin or Changchun, lest there be thus 
 an unnecessary occupation of the people's land. 
 
 7. — With regard to this branch line, it is hereby distinctly agreed that at the expiration 
 of 36 years from the date of the signing of this contract the Chinese Government shall 
 have the right to buy back the railway by the payment of the original capital stock plus the 
 debts incurred on account of construction and the interest thereon. All surplus earnings of 
 the said Company after payment of dividends to share-holders shall be deposited in a 
 sinking fund for the repayment of the capital stock, and shall be deducted from the amount 
 to be paid for re-purchase. If at the expiration of the 36 years' period China shall not 
 desire to re-purchase the railway, this agreement shall be continued for 44 years longer, at 
 the expiration of which time the Chinese Eastern Railway Company must in accordance 
 with the terms of this contract return to China without payment this branch line with 
 all its railway stations and all public property. 
 
 8. — When the Kirin branch line is reported completed the Chinese Eastern Railway 
 Company must carry all official despatches for the Chinese Government free of charge. 
 Chinese soldiers in pursuit of robbers and all arms and ammunition as well as the soldiers' 
 pay shall be transported at half rates. 
 
 9. — Any Chinese subjects living within the boundaries of the railway property who may 
 be guilty of any offence light or serious must be tried by the nearest deputy of the Bureau 
 of Railway Affairs. Any Chinese subjects arrested by the Russian police for violation of 
 Regulations or offense against the Law must be at once delivered to the Deputy of the 
 General Bureau of Railway Affairs for custody and trial, and must not be detained (by the 
 said police). 
 
 10. — All duties leviable upon Chinese or foreign goods transported by the Kirin 
 Branch Railway must be dealt with in accordance with Regulations to be hereafter estab- 
 lished by the Chinese Government. These Regulations shall be determined by the Chinese 
 Board of Foreign Affairs and the Chinese Board of Revenue in consultation with the Russian 
 Minister at Peking. 
 
 11. — All such materials as sand, rock, lime, and earth needed by this Railway shall be 
 free of all customs and likin taxes, and all lumber shall pay a tax of ten per cent, of its 
 value according to the Chinese Regulations. Immediately upon the transportation of the 
 lumber to the Western Lumber Customs Station this duty shall the same day be paid in full. 
 
 12. — Chinese subjects shall have exactly the same rights and privileges as Russians for 
 trading within the limits of the lands taken by the Railway; no disinction shall be made.
 
 NUMBER 1907/4: ^lAY 23, 1907 631 
 
 13.— On the day of the approval of this agreement at Peking the Chinese Eastern 
 Railway Company shall deliver to the Tartar General of Kirin 350,000 Roubles, Russian 
 Currency. 
 
 14.— This agreement for the Kirin Branch Railway is a special arrangement, and it 
 shall not be cited hereafter as a precedent for the construction of other branch lines no 
 matter where. 
 
 15. — The Chinese Eastern Railway Company shall make every effort to employ native 
 laborers for the construction of this Branch Railway, and the local authorities shall exert 
 themselves to the utmost to assist in securing such laborers. 
 
 16. — After the parties to this agreement shall have signed the same, it shall not go into 
 effect until it shall have been first approved by the Ministers of the Chinese Board of Foreign 
 Affairs and the Russian Minister of Finance, Mr. Witte : and not until then may Mr. Te 
 (Daniel), the Superintendent of Construction, begin the work of building this line. 
 
 Kuanghsu XXVIII, Sixth Moon, 7th Day (July 11th, 1902, New Style). 
 
 NUMBER 1907/4. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA. 
 
 Agreement for the transfer to China of the telegraph lines in Manchuria outside 
 the Chinese Eastern Raihuay territory* — May <?j, 190/. 
 
 Peking, 23rd May, 1907. 
 The Director General of the Imperial Chinese Telegraph Administration, 
 
 Peking. 
 I have the honor to acknowledge receipt of your letter of the 21st inst.f and 
 beg to confirm the agreement regarding the transfer to China of the telegraph lines 
 in IManchuria outside the Railway territory, viz. : 
 
 The Chinese Eastern Railway Administration will without delay cede to the 
 Imperial Chinese Telegraph Administration the telegraph lines and material 
 specified below, viz. : 
 
 1. Tsitsikar city to Helampo. 
 
 2. Tsitsikar city to Railway station. 
 
 3. Harbin to Mihailo-Semenovsk — two wires with all instruments, batteries 
 and material found at the stations on this line. 
 
 4. Hailin Railway station to Ninguta. 
 
 5. Tao-lai-chao to Kirin — two wires. 
 
 6. Tao-lai-chao to Potune. 
 
 7. Tao-lai-chao to Ukashu-Kuanchengtsu. 
 
 8. Kuanchengtsu Railway station to city. 
 
 9. Hailar Railway station to city and 
 
 10. All telegraph material still in existence of the Kirin-Omoso-Ninguta line 
 and the projected Omoso-Titaso line. 
 
 * Text as printed in Soglashenia, p. 53. 
 
 In connection with this agreement, see also that of October 7, 1907 (No. 1907/17, post). 
 
 t This letter is not here printed, being reproduced in full in the reply except for the 
 following introductory paragraph: 
 
 " Having arrived at an understanding with the Russian Government regarding the 
 transfer to China of the telegraph lines in Manchuria outside the railway territory and 
 having been informed by H. E. Russian Minister that this matter has to be finally settled 
 with the Chinese Eastern Railway Administration we should feel greatly obliged if you 
 would be good enough to confirm the following agreement," etc.
 
 632 CHINA TREATIES AND AGREEMENTS 
 
 It is further understood that whatever spare material, which may be found along 
 the above mentioned lines, will belong to the Chinese Telegraph Administration. 
 
 In consideration for which the Imperial Chinese Telegraph Administration 
 undertakes to pay the Chinese Eastern Railway Administration in Peking on or 
 before the first day of September 1907 the sum of $120,000.00 (Mexican Dollars 
 one hundred and twenty thousand). 
 
 The Chinese Eastern Railway Administration at Harbin has been advised of 
 the conclusion of the above agreement and instructed to hand over the lines and 
 materials mentioned therein to the Representative of the Imperial Chinese Tele- 
 graph Administration. 
 
 Yours faithfully, 
 
 (Signed) J. Cheshev, 
 
 Representative of the Chinese Eastern Railway Administration. 
 
 NUMBER 1907/5. 
 
 JAPAN (South Manchuria Railway Company) AND CHINA. 
 
 Agreement for the handing over by Japan of the Mukden-Hsinmint'im Railway, 
 together with the rolling-stock and equipment.^ — May 2y, igoj. 
 
 Chou Ch'ang-ling, Expectant Taotai, Second Grade Button, Director-General 
 of the Railway Administration Inside and Outside Shanhaikwan, and 
 
 " Chiu-Pao-T'ien-Cheng-Chou," Director-General of the South Manchuria 
 Railway, 
 
 having been duly empowered, have agreed upon the following articles relating 
 to the handing over of the Mukden-Hsinmint'un Railway, together with loco- 
 motives, rolling-stock and materials. 
 
 The parties named, having assured each other of being fully empowered by 
 their respective Governments, have drawn up an agreement, in accordance with 
 the following articles, for the purpose of handing over to the Chinese Railway 
 Administration the railway between Mukden and Hsinmint'un, together with all 
 equipment in the neighborhood of the line, rolling-stock, and materials. 
 
 Two copies have been drawn up in Chinese and two in Japanese. 
 
 Article 1. — The articles to be handed over to the Chinese Government are 
 as stated in the attached list. 
 
 Article 2. — The date of handing over is fixed as the 40th year of Meiji, 
 
 * Translation from the Chinese text as printed in Wang, p. 131. 
 
 In connection with this agreement see also the Sino-Japanese conventions regarding the 
 Hsinmin-Mukden and Kirin-Changchun Railways, April 15, 1907 (No. 1907/3, ante) : 
 Supplementary Agreement for a loan for the Hsinmin-Mukden and Kirin-Changchun 
 Railways, November 12, 1908 (No. 1908/18, post) : Detailed Agreement concerning the 
 Hsinmin-Mukden Railway Loan. August 18, 1909 (No. 1909/6, post).
 
 NUMBER 1907/5 : MAY 27, 1907 633 
 
 6th month 1st day, or the 33rd year of Kuanghsii, 4th moon, 21st day (June 1, 
 1907). All funds received, together with all matters relating to train traffic, will 
 pass under the charge of the Chinese Railway Administration. Before the road 
 is handed over they will remain under the charge of the South Manchuria Rail- 
 way Company. 
 
 Article 3. — All officials and employees now belonging to the road will be 
 temporarily borrowed of the South Manchuria Railway Company during a period 
 of seven days, beginning from the date of the handing over of the road, until the 
 Chinese Railway Administration can appoint substitutes therefor. Salaries and 
 expenses during the said period of seven days will be defrayed by the South 
 Manchuria Railway Company, in order to facilitate the handing over of the 
 road, and as an expression of friendship. 
 
 Article 4. — A list of the names of the officials and employees on the road 
 is now handed to the Chinese deputy. If the Chinese Railway Administration 
 wishes to continue their services, the South Manchuria Railway Company will 
 give heed to the wishes of the individuals. 
 
 Article 5. — After the road has been handed over, if not within the period 
 for the alteration of the line, the matter of train traffic and the appointment of 
 officers by each party will be taken up and settled, that cooperation may be 
 facilitated. 
 
 Article 6. — Besides the articles to be handed over, referred to in Article 1, 
 if not within the period for the alteration of the line, the materials collected for 
 the repair of rolling-stock and rails will be given to the Chinese Railway Adminis- 
 tration in accordance with a list drawn up by the South Manchuria Railway 
 Company, to be handed over as they now stand. 
 
 Article 7. — Besides the articles referred to in the preceding article, if there 
 should be any important articles required by the Chinese Railway Administration, 
 they will be handed over at a just price, providing the South Manchuria Railway 
 Company does not suffer inconvenience thereby. 
 
 Article 8. — Besides the rolling-stock and materials to be handed over, 
 referred to in Article 1, if not within the period for the alteration of the line, 
 such articles as are urgently needed by the Chinese Railway Administration will 
 be loaned to it at a just rental, providing the South Manchuria Railway Company 
 suffers no great inconvenience thereby. 
 
 Article 9. — If not within the period for the alteration of the line, coal and 
 water required by the Chinese Railway Administration will be supplied at a just 
 price, providing the South Manchuria Railway Company suffers no great incon- 
 venience thereby. 
 
 Article 10. — After the road has been handed over, articles to be removed 
 to the South Manchuria, Railway Company, not included among those to be 
 handed over, together with the caretakers thereof, will be transported from 
 Hsinmint'un to the South Manchuria Railway by the Chinese Railway Adminis- 
 tration free of charge. Officials and employees of the said company, together 
 with their families and household effects, will receive similar treatment within a 
 period of six months, at the expiration of which the right cannot be availed of. 
 
 Article 11. — Important matters which may arise in the future, in addition to
 
 634 CHINA TREATIES AND AGREEMENTS 
 
 those mentioned in these articles, will be taken up and settled by mutual con- 
 ference. 
 
 Kuanghsii, 33rd year, 4th moon, 16th day: 
 Meiji, 40th year, 5th moon, 27th day: 
 (May 27th, 1907). 
 
 Chou Ch'ang-Ling, 
 Expectant Taotai, Second Grade Button, 
 Director-General of the Railway Ad- 
 ministration Inside and Outside Shan- 
 haikzvan. 
 '* Chiu-Pao-T'ien-Cheng-Chou," 
 Director-General of the South Manchuria Railway. 
 
 NUMBER 1907/6. 
 
 JAPAN AND CHINA. 
 
 Agreement for the establishment of a maritime customs office at Dairen, and for 
 inland ivaters steam navigation.'^ — May jo, iQoy, 
 
 The Governments of Japan and China having agreed to the establishment of 
 an office of the Chinese Imperial Maritime Customs at Dairen, the undersigned 
 duly authorized by their respective Governments hereby engage to accept for the 
 general guidance of- that office, and as a preliminary and provisional measure, the 
 detailed understanding set forth in the documents hereto attached, viz., 
 
 (A) Agreement about the establishment of a Maritime Customs Office at 
 Dairen, and 
 
 (B) Inland Waters steam Navigation. 
 
 And it is further agreed that in the spring of next year after the experience of 
 one season there shall be a reconsideration of the present arrangement in order to 
 fuller accord with local conditions and needs and that for the documents now 
 accepted there shall be substituted a revised agreement supplemented by an 
 Ordinance, the former to be prepared by the Japanese Minister and the Inspector 
 General of Customs and the latter by the Japanese Authorities of the leased terri- 
 tory in communication with the Commissioner of Customs at Dairen. And it is 
 further understood that the Japanese Authorities will take steps to prevent 
 smuggling from the leased territory into China and support the Chinese Authori- 
 ties in the measures they adopt to prevent smuggling from China into the leased 
 territory, and also that a suitable procedure shall be arranged for dealing with 
 railway traffic at the Dairen terminus and the frontier station (Wa Fang Tien or 
 
 * Official English text as printed in Customs, vol. II, p. 740. Printed also in Traitcs 
 et Conventions, 204; For. Ret., 1907, p. 133. See Note to this document, post, p. 638.
 
 NUMBER 1907/6: MAY 30, 1907 635 
 
 Other) and temporary regulations be made for collection of duties by the 
 Customs. (Signed) G. Hayashi. (Seal.) 
 
 Minister of Japan. 
 (Signed) Robert Hart. (Seal.) 
 
 Inspector General of Customs. 
 Signed and sealed at Peking the 30th May, 1907. 
 
 AGREEMENT ABOUT THE ESTABLISHMENT OF A MARITIME CUSTOMS OFFICE AT 
 
 DAIREN. 
 
 1. The Commissioner or the Chief of the Maritime customs Office at Dairen 
 is to be of Japanese nationality. The Inspector General of Customs will come to 
 an understanding with the Japanese Legation at Peking in case of appointing a 
 new Commissioner. 
 
 2. The members of the staff of the Maritime Customs Office at Dairen shall, 
 as a rule, be of Japanese nationality ; in case, however, of a suddenly occurring 
 vacancy or of temporary requirements of the Service, members of other nationali- 
 ties may be provisionally sent to Dairen. 
 
 3. The Inspector General of Maritime Customs will inform the Governor 
 General of the leased territory beforehand about the change of the Commissioner 
 of Customs at Dairen. 
 
 4. All correspondence between the Customs Office at Dairen and the Japanese 
 authorities and Japanese merchants shall be conducted in the Japanese language. 
 Should, however, merchants of other nationality come to reside at Dairen, they 
 shall be at liberty to correspond in English or in Chinese. 
 
 5. On merchandise brought by sea to Dairen no Import Duty shall be levied. 
 Import Duty according to existing Treaties shall be levied by the Maritime 
 Customs Office on all merchandise or products passing the Japanese frontier of the 
 leased territory into the interior of China. The Japanese authorities agree to take 
 suitable measures to assist as far as it is possible in the prevention of merchandise 
 passing the Japanese frontier when not provided with a Permit or Pass by the 
 Maritime Customs Office. 
 
 6. When Chinese merchandise or products brought from the interior of 
 China into the Japanese leased territory are shipped from Dairen to other places, 
 they will pay the Export Duty according to existing Treaties. Produce raised in, 
 and merchandise manufactured from produce raised in or imported by sea into, 
 the Japanese leased territory shall pay no Export Duty. The Duty to be paid 
 by articles manufactured in the Japanese leased territory from materials brought 
 there from the interior of China will be the same as at present paid by articles in 
 similar circumstances in the German leased territory of Kiaochow. 
 
 7. Chinese merchandise or products brought from Chinese Treaty ports to 
 Dairen shall pay no Duty as long as they remain inside Japanese territory ; but 
 if these Chinese merchandise or products pass the Japanese frontier into the 
 interior of China, they shall pay according to existing Treaties. 
 
 8. Chinese merchandise shipped from Dairen. and having paid accordingly 
 Export Duty, shall be provided with a receipt, on the producing of which it shall
 
 636 CHINA TREATIES AND AGREEMENTS 
 
 pay, on being landed at a Chinese Treaty port, a Coast Trade Duty according to 
 existing Treaties. 
 
 9. For Japanese and other non-Chinese merchandise, on being shipped to 
 Dairen from a Chinese Treaty port, the Import Duty paid at the latter port shall 
 be refunded by Drawback according to treaty stipulations. On being imported to 
 Dairen such merchandise shall pay no Duty, so long as it does not pass the Japan- 
 ese frontier into the interior of China. On being re-exported from Dairen to 
 other places outside China, such merchandise shall pay no Export Duty. 
 
 10. Chinese merchandise or products having been shipped from a Chinese 
 Treaty port to Dairen and reshipped from there to places outside China shall 
 on this occasion pay no Export Duty, in case that documentary evidence is pro- 
 duced of their having paid Export Duty at the Treaty port from which they came. 
 
 11. The Maritime Customs Office at Dairen shall take no part in the collec- 
 tion or administration of Tonnage Dues, Lighthouse Dues, or Port Dues. 
 
 12. The Customs Tariff in vigour in the Chinese Treaty ports shall be applied 
 likewise by the Maritime Customs Office at Dairen. 
 
 13. The Japanese Government agree to set apart for the Maritime Customs 
 Office sufficient space at Dairen for building offices, lodgings for the stafif, with 
 suitable room for garden, stables, and servants' quarters. The amount to be paid 
 for the sale or lease of such ground is to be settled locally by mutual agreement. 
 
 14. The Chief of the Customs Office and the members of the stafif shall be free 
 from any obligation to act as jurors or assessors or from any other personal services. 
 
 15. The aforesaid Maritime Customs Office at Dairen shall be charged like- 
 wise exclusively with the granting and issuing of Transit Passes for merchandise 
 going into the interior of China, as well as for merchandise coming from the 
 interior of China to Dairen; and this Office will be charged as well with all and 
 every function, right, or capacity which appertain in the Treaty ports to the so- 
 called Chinese Customs Taotai. 
 
 16. For the Transit Passes mentioned in Article 15 the Duty according to 
 existing Treaties — i. e., half of the amount of the Export or Import Duties- 
 shall be collected by the Maritime Customs Office at Dairen. 
 
 17. The procedure to be observed in case of frauds or contraventions com- 
 mitted by merchants against the Maritime Customs rules shall be settled hereafter 
 by a separate Agreement, but it is understood in principle that all judicial proce- 
 dure rests with the Japanese tribunals. 
 
 18. In view of the possibility that with the development of commercial 
 activity in the Japanese leased territory new requirements may arise which are not 
 to be foreseen, it is understood that the present Agreement bears a provisional 
 character, and that both parties to it agree to introduce amendments as soon as 
 required for the purpose of remedying inconveniences which may arise in the 
 practical execution of this Agreement. 
 
 (Seal) G. Hayashi, 
 
 Minister of Japan. 
 (Seal) Robert Hart, 
 
 Inspector General of Customs. 
 Signed and sealed at Peking, the 30th May, 1907.
 
 NUMBER 1907/6: MAY 30, 1907 637 
 
 B. 
 
 Inland Water Steam Navigation. 
 
 1. The Chinese Maritime Customs having been formally authorised to 
 function in Dairen are now empowered to issue inland steam navigation papers : 
 steamers thus permitted to ply on the inland waters are to be guided generally by 
 the rules and regulations of July and September 1898 and the additional rules of 
 October 1903, but more especially by the regulations herebelow set forth. 
 
 2. Steamers about to ply in the inland waters are required to deposit their 
 national papers, Foreign or Native, with the Customs, and will receive in 
 exchange, on written application, the Inland Waters Certificate ; such Certifi- 
 cates are valid for one year, and a fee of Tls. 10 is payable on first issue and 
 TIs. 2 for each annual renewal. Tonnage Dues are payable once every four 
 months. 
 
 3. Such certificated steamers may ply according to regulations (1) from 
 Dairen to a place or places inland and back, and (2) from Dairen to a place inland, 
 thence to a Treaty port, thence to a place inland, and thence back to Dairen. On 
 making due report to the local Customs or Tax Office, and paying local Dues or 
 Duties, they may land or ship cargo or passengers at any recognised places of trade 
 passed on the voyage, but they may not ply between inland places exclusively with- 
 out special authority. If visiting another treaty port on any such inland voyage, 
 the Customs at such port are to be duly reported to and all port regulations, 
 national and native, complied with. 
 
 4. Whenever certificated steamers quit or return to Dairen, they are to clear 
 from and report to the Dairen Customs, handing in Outward and Inward Mani- 
 fests of cargo, reporting places to be called at or called at (sic), and paying the 
 prescribed Duties. Opium and contraband goods are not to be carried inward or 
 outward: if carried, the goods are confiscable and the vessel subject to a fine of 
 $500, a second offence entailing withdrawal of Inland Waters Certificate and 
 privileges. 
 
 5. The Japanese authorities will assist the Dairen Customs to suppress 
 smuggling — more especially the smuggling of Opium and contraband. 
 
 6. The transmission of Chinese closed mails between Dairen and inland 
 ports shall be free of charge and the postal Administrations concerned will 
 arrange a fitting procedure for the transmission of such Chinese closed mails 
 through the Japanese leased territory from and to Chinese post offices outside that 
 territory. 
 
 7. The application of the Inland Waters Steam Navigation understanding 
 will be restricted to steamers which ply on inland waters not inside the area of 
 the Japanese leased territory. 
 
 (Seal) G. Hayashi, 
 
 Minister of Japan. 
 (Seal) Robert Hart. 
 
 Inspector General of Customs. 
 
 Signed and sealed at Peking the 30th May, 1907.
 
 538 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 The customs house at Dairen was opened on July 1, 1907. It is understood that no 
 revision of this agreement has been made as contemplated. 
 
 Provisional customs regulations for the leased territory of Kwantung were enacted by 
 an ordinance of the Government-General of Kwantung under date of June 26, 1907. The 
 following is a translation from the Japanese text, embodying certain subsequent amend- 
 ments : 
 
 Provisional Customs Regulations for Kwantung Leased Territory, June 26, 1907. 
 
 1. — Foreign goods imported from a foreign country or goods manufactured therefrom 
 must pay import duty, if sent to the interior. 
 
 Foreign goods imported from a Chinese treaty port, unaccompanied by duty paid cer- 
 tificate, must pay import duty, if sent to the interior. 
 
 Foreign goods imported from a Chinese treaty port and accompanied by duty paid 
 certificate, are entitled to drawback at the port of duty payment, when they have been 
 consumed in, or reexported from, the leased territory. 
 
 2. — Native goods coming from a Chinese treaty port, and accompanied by duty paid 
 certificate, must pay coast trade duty, if sent to the interior. 
 
 2a. — Produce raised in the leased territory, or goods manufactured therefrom, shall 
 pay import duty on being sent to the interior. 
 
 [Article 2a, when introduced by Ordinance No. 42 of 1907, contained the additional 
 sentences, " But the sender of such goods can choose not to pay import duty. In the 
 latter case, the goods thus sent will be treated in the same way as Chinese produce." These 
 two sentences were cancelled by Ordinance No. 26, of 1910.] 
 
 3. — Native produce imported from a Chinese treaty port, unaccompanied by duty paid 
 certificate, must pay import duty on deposit, pending inquiry with the custom house of 
 the port concerned, and is liable to confiscation together with the deposit, if any unlawful 
 action be committeed in connection therewith. 
 
 4. — Native produce brought down by land to the leased territory must pay export 
 duty, if exported. 
 
 5. — Produce raised in the leased territory, and goods manufactured therefrom or from 
 the materials imported from a foreign country shall pay no export duty if accompanied 
 by certificate of origin issued by the Japanese authorities. 
 
 6. — Goods manufactured from materials brought from the interior or from a Chinese 
 port by sea, shall pay export duty on exportation. But it is optional with the shipper to 
 pay duty on the material or on the manufactured article. 
 
 7. — Foreign goods on which import duty, or, native goods on which export duty, has 
 been levied at a Chinese treaty port, shall pay no export duty when reexported from Dairen. 
 
 8. — Goods transported from or to the interior under the transit regulations shall pay 
 transit dues in addition to export or import duty. 
 
 9. — Opium coming to the leased territory, whether by sea or land, must be reported 
 to the customs immediately upon arrival. 
 
 10. — Opium going to the interior must pay import duty and likin. This, however, does 
 not apply to foreign or native opium imported from a Chinese treaty port, accompanied 
 by duty paid certificate or bearing Hupu labels. 
 
 11. — All opium going to the interior, whether dutiable or not, must be declared to the 
 customs, and labelled and stamped. 
 
 12. — Native opium coming from the interior or from a Chinese treaty port, unaccom- 
 panied by duty paid certificate or not bearing Hupu labels, shall be charged with Tung-shui. 
 
 13. — Arms, ammunition, explosives, and materials used in the manufacture of the same, 
 shall be unloaded or landed only after the receipt of a customs permit. 
 
 14. — The transportation to the interior, or the exportation to a Chinese port, of arms, 
 ammunition, explosives, and materials used in the manufacture of the same, is prohibited 
 unless they are accompanied by Hu-chao issued by the Chinese authorities. 
 
 15. — The two preceding rules do not apply to arms, ammunition, etc., for the use of 
 the Japanese army, navy, and police force. 
 
 16. — Upon a ship's arrival, the master of the vessel or his agent shall hand in withotit 
 delay to the customs the ship's papers or consular report, and import manifest. The mani- 
 fest must contain the name and flag of the vessel, the port of shipment as well as the 
 destination of the cargo, marks and numbers, number of packages, quantity, weight in 
 tons, and names of consignees, and be signed by the master of the vessel or his agent. 
 
 When the quantity of the cargo destined for the interior is large enough to be treated 
 as independent cargo, the master of the vessel or his agent should prepare two manifests — 
 one for the cargo destined for the interior and another for the leased territory. 
 
 The import manifest may only be amended within twenty-four hours of its being 
 handed in to the customs. 
 
 17.— Consignees of import cargo, whether for the interior or for the leased territory, 
 shall hand in to the customs an " import statement," giving the name and flag of the
 
 NUMBER 1907/6: MAY 30, 1907: NOTE 639 
 
 importing vessel, the places of purchase and of production or manufacture of the goods, 
 marks and numbers, description of the articles, number of packages, quantity, and value. 
 18. — When a vessel wants to clear, an export manifest signed by the master of the 
 vessel or his agent must be handed in to the customs at least two hours previous to the 
 application for her clearance. The items to be entered in the export manifest are the 
 same as those in the import manifest. 
 
 19. — When goods are to be exported the shipper must hand in to the customs an export 
 application, and goods must undergo customs examination. 
 
 After examination of the goods, the applicant shall pay to the customs bank the amount 
 of duty as stated in the duty memorandum issued by the customs. Upon production of the 
 duty receipt at the office, the shipping permit will be issued. 
 
 20. — The clearance permit is issued only after all dues and duties have been paid. 
 21. — When cargo, for which a shipping permit had been issued, can not be received on 
 board, the fact must be reported without delay to the customs. A shut-out memorandum will 
 then be issued to the shipper. 
 
 22. — Transhipment of goods can not take place without permission from the customs. 
 If goods are transhipped without permit, they are liable to confiscation and the master of 
 the vessel to a fine. 
 
 22a. — Transhipment of goods can not take place unless the goods correspond to the 
 particulars given in the manifest and the packages remain intact. 
 [Introduced by Ordinance No. 38 of 1907.] 
 23. — The tariffs in use in the customs are : 
 
 No. 1. (1) For foreign imports: the Revised Import Tariff of 1902. 
 
 (2) For native imports and exports : the old general tariff for the 
 trade of China. 
 No. 2. In case special tariffs are to be adopted for goods exported 
 
 or imported by junk, a separate notification shall be issued. 
 [Added by Ordinance No. 27 of October 13, 1914.] 
 
 24. — In cases of appeal against fines and confiscation ordered by the Commissioner of 
 Customs, the procedure followed will be in accordance with the spirit of the " Rules for 
 Joint Investigation in Cases of Confiscation and Fine by the Custom House Authorities, 
 Peking, 31 May, 1868." 
 
 25. — The custom house is open for transaction of business from 9 a.m. to 4 p.m., Sun- 
 days and holidays excepted. 
 
 Examination offices will be open from 8 a.m. to 4 p.m. 
 
 26. — Loading or discharging cargo before 6 o'clock a.m. and after 6 o'clock p.m., or 
 Sundays or holidays is not allowed unless a special permit is obtained from the customs. 
 This, however, does not apply to passengers' baggage or mail matter. The fees on such 
 permit are : 
 
 For working before 6 a.m H.K. Tls. 10 
 
 " " from 6 p.m. to 12 p.m " " 10 
 
 " " from 6 p.m. to 6 a.m. next day " " 20 
 
 " Sunday (whole day) " " 40 
 
 (half day) " " 20 
 
 " holiday (whole day) " " 40 
 
 (half day) " " 20 
 
 26a. — The rate of exchange between the Haikwan Tael and the amount in currency to 
 be paid to the Dairen customs shall be based on the Newchwang quotation. 
 [Introduced by Ordinance No. 42 of 1907.] 
 
 27. — All business communications relating to customs matters should be addressed to 
 the Commissioner of Customs. 
 
 ADDITIONAL RULE. 
 
 28. — The term " interior " in the present regulations means any part of Chinese ter- 
 ritory beyond the frontier of the leased territory. 
 
 [It is understood that this rule has been construed to include the treaty ports within 
 the meaning of " interior."]
 
 640 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1907/7. 
 
 FRANCE AND JAPAN. 
 Agreement in regard to the continent of Asia.'^ — June lo, iQoy. 
 
 The Government of His Majesty the Emperor of Japan and the Government 
 of the French RepubHc, animated by the desire to strengthen the relations of 
 amity existing between them, and to remove from those relations all cause of mis- 
 understanding for the future, have decided to conclude the following Agreement : 
 
 " The Governments of Japan and France, being agreed to respect the inde- 
 pendence and integrity of China, as well as the principle of equal treatment in 
 that country for the commerce and subjects or citizens (i.e., ressortissants) of all 
 nations, and having a special interest in having order and a pacific state of things 
 guaranteed especially in the regions of the Chinese Empire adjacent to the ter- 
 ritories where they have the rights of sovereignty, protection or occupation, en- 
 gage to support each other for assuring the peace and security in those regions, 
 with a view to maintaining the respective situation and the territorial rights of 
 the two Contracting Parties in the Continent of Asia." 
 
 In witness whereof, the Undersigned : His Excellency Monsieur Kurino, 
 Ambassador Extraordinary and Plenipotentiary of His Majesty the Emperor 
 of Japan to the President of the French Republic, and His Excellency Monsieur 
 Stephen Pichon, Senator, Minister for Foreign Affairs, authorized by their 
 respective Governments, have signed this Agreement and have affixed thereto 
 their seals. 
 
 Done at Paris, the 10th of June 1907. 
 
 (L. S.) S. Kurino. 
 
 (L. S.) S. PiCHON. 
 
 * Translation from the French text as printed in Traitcs et Conventions, p. 376. 
 Printed also in For. Rel., 1907, p. 754; Am>. Int. Law Journal, Supplement, 1910, p. 313; 
 Hertslct, p. 618. 
 
 Simultaneously with the conclusion of this agreement was signed a declaration of which 
 the following is the translation : 
 
 Declaration regarding mutual most-favored-nation Treatment as between Japan and 
 
 French Indo-China, June lo, 1907. 
 
 The two Governments of Japan and France, while reserving the negotiations for the 
 conclusion of a Convention of Commerce in regard to the relations between Japan and 
 French Indo-China, agree as follows : 
 
 The treatment of the most favoured nation shall be accorded to the ofificers and sub- 
 jects of Japan in French Indo-China in all that concerns their persons and the protection 
 of their property, and the same treatment shall be applied to the subjects and proteges of 
 French Indo-China in the Empire of Japan, until the expiration of the Treaty of Com- 
 merce and Navigation signed between Japan and France on the 4th of August, 1896. 
 
 Paris, the 10th of June, 1907. 
 
 (L. S.) S. Kurino. 
 
 (L. S.) S. Pichon.
 
 NUMBER 1907/8: JUNE 12, 1907 641 
 
 NUMBER 1907/8. 
 
 DENMARK AND THE UNITED STATES. 
 
 Exchange of notes in regard to the reciprocal protection of trademarks in 
 
 China* — June I2, igoy. 
 
 Mr. Brun to Mr. Root. 
 [Translation.] 
 
 Legation of Denmark, 
 Washington, D. C, March 19, 1907. 
 
 Mr. Secretary of State: By order of my Government I have the honor 
 to beg that Your Excellency will kindly let me know whether the Government of 
 the United States would be disposed to conclude an arrangement with the Govern- 
 ment of the King for the reciprocal protection in China of the trade-marks of the 
 citizens of our two countries when the said trade-marks are duly registered in the 
 country of the infringer. 
 
 Should the Government of the United States be disposed to conclude such an 
 arrangement, the King's Government would take the necessary measures to have 
 Danish subjects who would infringe in China an American trade-mark duly regis- 
 tered in Denmark, brought before the Danish Consular Court at Shanghai and 
 eventually punished in accordance with the provisions of the law of Denmark. 
 
 The Government of the King would expect the Government of the United 
 States to take similar measures in regard to American citizens who might violate 
 in China the privilege of a Danish subject whose trade-mark is duly registered in 
 the United States. 
 
 I am authorized to add that my Government would be very glad if such an 
 arrangement could be effected by means of an exchange of notes between Your 
 Excellency and me. 
 
 Hoping that Your Excellency will see no objection to assenting to this 
 proposal of my Government, I beg you to accept, Mr. Secretary of State, the 
 renewed assurance of my high consideration. 
 
 C. Brun. 
 
 Mr. Root to Mr. Brun. 
 
 No. 671.] Department of State, 
 
 Washington, March 25, 1907. 
 Sir: I have the honor to acknowledge the receipt of your note of the 19th 
 instant, in which, by order of your Government, you inquire whether the Govern- 
 ment of the United States would be disposed to conclude with that of Denmark 
 
 * Texts (and translations) as printed in Malloy, p. 399.
 
 642 CHINA TREATIES AND AGREEMENTS 
 
 an arrangement by an exchange of notes for the reciprocal protection in China 
 of trade-marks of the citizens of either country from infringement by citizens of 
 the other when the said trade-marks are duly registered in the country of the 
 infringer. 
 
 By this agreement Danish subjects infringing in China an American trade- 
 mark duly registered in Denmark would, you state, be brought before the Danish 
 Consular Court at Shanghai and eventually punished in accordance with the pro- 
 visions of the law of Denmark, and the Government of the King would expect the 
 Government of the United States to take similar measure in regard to American 
 citizens who might violate in China the privilege of a Danish subject whose trade- 
 mark is duly registered in the United States. 
 
 The agreement proposed by your Government is in line with the agreements 
 which have been effected by exchange of notes between the Minister of the United 
 States at Peking and the diplomatic representatives there of certain other 
 countries. 
 
 It is to be pointed out, however, that in view of the fact that there is no 
 statute in the United States making the infringement — counterfeiting, etc., of a 
 trade-mark — a criminal offense, and that effectual provision exists by a civil action 
 for damages by the owner of a trade-mark, the word " punishment " is to be 
 understood, with respect to the United States, to refer to a civil action only and 
 not to a criminal procedure. 
 
 If this explanation, which has been made in the case of each of the agreements 
 mentioned above, is satisfactory to your Government, I shall be pleased to make 
 the exchange of notes with you. 
 
 Accept, Mr. Minister, the renewed assurances of my highest consideration. 
 
 Elihu Root. 
 
 Mr. Clan to Mr. Root. 
 
 [Translation.] 
 
 Danish Legation, 
 May 27, 1907. 
 
 Mr. Secretary of State: Referring to note No. 671, which Your Excellency 
 had the kindness to address to the legation on March 25 last, I have the honor, 
 by order of my Government, to inform you that the necessary instructions have 
 been sent to the Danish consul at Shanghai (the consular headquarters for the 
 whole of China) in order to authorize him to protect American trade-marks, duly 
 deposited in Denmark, against violations by Danish subjects in China, to the 
 same extent as Danish marks of the same nature are protected. 
 
 The law which the Danish court at Shanghai is called upon to enforce in the 
 premises is the Danish law of April 11, 1890, amended by the law of December 
 19, 1898, and the ordinances of September 28, 1894, and September 12, 1902. 
 
 Hoping to receive a note informing me that the diplomatic and consular 
 ofificers of the United States in the Middle Kingdom have had the necessary 
 instructions sent to them in order to insure reciprocity by granting the protection 
 of the United States Consular Courts in China to Danish subjects against Ameri-
 
 NUMBER 1907/9: JUNE 13, 1907 643 
 
 can citizens who have counterfeited Danish trade-marks regularly deposited in the 
 United States, I beg of you, Mr. Secretary of State, to accept the renewed 
 assurance of my highest consideration. 
 
 J. Clan. 
 
 Mr. Root to Mr. Clan. 
 
 No. 694.] Department of State, 
 
 Washington, June 12, 1907 . 
 
 Sir: I have the honor to acknowledge the receipt of your note of the 27th 
 ultimo by which you inform me that in pursuance of the understanding reached by 
 the correspondence which passed between the Danish legation and the Department 
 of State on March 19 and 25, 1907, the necessary instructions have been sent to 
 the Danish consul at Shanghai (the consular headquarters for the whole of 
 China) in order to authorize him to protect American trade-marks, duly deposited 
 in Denmark, against violations by Danish subjects in China, to the same extent 
 as Danish marks of the nature are protected. 
 
 As a completion of the exchange of notes to give the said understanding eflfect, 
 I have the honor to inform you that, on the part of the United States, the 
 Minister of the United States at Peking has this day been instructed to inform the 
 consular of^cers of the United States in China that hereafter trade-marks of 
 Danish subjects, which have been duly registered in the United States, are to be 
 protected against infringement by such persons as come under the jurisdiction 
 of the United States Consular Courts in China. 
 
 Accept, sir, the renewed assurances of my high consideration. 
 
 Elihu Root. 
 
 NUMBER 1907/9. 
 
 JAPAN AND RUSSIA. 
 
 Provisional convention (ivith additional articles and protocol) concerning the 
 junction of the Japanese and Russian Railways in Manchuria* — June 13, 
 1907. 
 
 The Imperial Government of Japan and the Imperial Government of Russia, 
 having resolved to conclude a Convention concerning the connexion of the 
 Japanese and the Russian Railways in Manchuria, in conformity with the pro- 
 visions of Article VIII of the Treaty of Peace signed at Portsmouth on Sep- 
 
 * Translations from French text as printed in Traites et Conventions, S77. French 
 texts printed also in the Russian Yellow-Book. Ncgociations entrc la Russie et le Japon 
 relatives h la Division de la Station de Kouan-tchen-fsy et a la Conclusion d'une Con- 
 vention Provisoire concernant le Service de Raccordement des Chcmins de Per Riisses et 
 Japonais en Manchourie, 1906-07 (St. Petersburg; 1907); Hertslet, 1199.
 
 644 CHINA TREATIES AND AGREEMENTS 
 
 tember 5 (August 23, o.s.), 1905, the undersigned, Itchiro Motono, Docteur en 
 Droit, Envoy Extraordinary and Minister Plenipotentiary of Japan, and le Maitre 
 de la Cour Imperiale Alexandre Iswolsky, Minister of Foreign Affairs of Russia, 
 being duly authorized for the purpose by their respective Governments, have 
 mutually agreed upon the following articles, provisionally. 
 
 Regarding those provisions of this convention which concern the South 
 Manchuria Railway Company on the one part and the Chinese Eastern Railway 
 Company on the other, the two Governments engage mutually to take necessary 
 measures to ensure their prompt execution by the said Companies. 
 
 Article I. — The junction of the sections of the two railways will be made 
 at the boundary line of the Kuanchengtze station of the Chinese Eastern Railway. 
 The South I^Ianchuria Railway Company shall prolong its line with the gauge 
 adopted by that Company from the Changchun station of the said Company to 
 the limit of the Kuanchengtze station of the Chinese Eastern Railway, and the 
 Chinese Eastern Railway shall construct a line of the same gauge in continuation 
 of the prolongation of the Japanese line constructed by the South ]SIanchuria Rail- 
 way to the platform of the Russian Kuanchengtze station. The Chinese Eastern 
 Railway shall construct in prolongation of its line, a railway of the gauge of 1 
 meter 524 (Russian gauge of 5 English feet) from the platform of the Russian 
 Kuanchengtze station to the limit of that station, and the South Manchuria Rail- 
 way Company shall construct a line of the same gauge in continuation of the 
 prolongation of the Russian railway constructed by the Chinese Eastern Railway 
 Company to the platform of the Japanese Changchun station. 
 
 The point of junction of the two sections of the Japanese and Russian 
 railways and the plans of that junction shall be resolved upon in common accord 
 between the two companies. 
 
 Article II. — The South ]\Ianchuria Railway Company as well as the 
 Chinese Eastern Railway Company shall establish, besides the junction of their 
 lines, direct communication for passengers and for merchandise, and also all 
 the necessary installations, in order to effect in the shortest time and with the 
 least expense possible, the transhipment of merchandise at the terminal stations, 
 made necessary by the difference in the width of the gauges. 
 
 Each Company reserves the right to decide on the plans of construction 
 within the limits of its own ground. 
 
 Article III. — Each Company assumes responsibility for all the undertakings 
 mentioned in Articles I and II of the present convention, as incumbent on them 
 respectively, and these undertakings shall be executed by the companies with the 
 least possible delay and as far as possible simultaneously. 
 
 Article IV. — The maintenance of the tracks, of the installations for 
 despatch and transhipment and all the other appurtenances upon the ground of 
 each railway shall respectively be taken charge of by the companies. 
 
 Article V. — The traffic between the South Manchuria Railway and the 
 Chinese Eastern Railway shall be established in conformity with the following 
 conditions : 
 
 The passenger trains of the South Manchuria Railway, with the passengers, 
 their baggage and other objects transported by those trains proceed on the
 
 NUMBER 1907/9: JUNE 13, 1907 645 
 
 Japanese track to the Russian station of Kuanchengtze, and the passenger trains 
 of the Chinese Eastern Railway, with the passengers, their baggage and other 
 objects transported by those trains proceed on the Russian track to the Japanese 
 station of Changchun. 
 
 The trains of the South Manchuria Railway with freight for the Chinese 
 Eastern line come on the Japanese track to the Russian station of Kuanchengtze, 
 where the delivery and transhipment of the merchandise to the Russian railway 
 are effected, and the trains of the Chinese Eastern Railway with freight for the 
 South Manchuria line come by the Russian track to the Japanese station of 
 Changchun, where the delivery and transhipment of the merchandise to the 
 Japanese railway are effected. 
 
 Article VI. — The time schedule for the movement of trains, with a view to 
 the connexion of the two railways, shall be arranged in common by the manage- 
 ments of the two Railway Companies. 
 
 Article VII. — The passenger fares and freight charges for traveling be- 
 tween the terminal stations shall be collected : those going from south to north, in 
 conformity with the tariffs in force on the South Manchuria line, and those 
 going from north to south, in conformity with the tariffs in force on the Chinese 
 Eastern line. 
 
 The distribution of the fees collected for transport on the lines of the two 
 Companies shall be made in accordance with an agreement to be concluded 
 between the managements of the two Companies. 
 
 Article VIII. — Each of the two companies enjoys the right gratuitously and 
 reciprocally to make use of the connecting line and the installations attached to the 
 service of transhipment belonging to the other. 
 
 Article IX. — The two railway Companies shall organize a train service 
 mutually co-ordinated and sufficient to ensure regular passenger and freight 
 traffic, and establish regulations and provisions for the service of operation, all 
 in conformity with the interests of that service. 
 
 Article X. — All the provisions to be later adopted on the basis of the present 
 Convention and concerning the train service, the transportation of passengers, the 
 transhipment of merchandise, the signal service, etc., shall be regulated by special 
 arrangement between the two Companies, with due approval of the respective 
 Governments. The mutual use of the means of transportation, the relations 
 between employees of the two raihvays as well as the mode of fixing the joint 
 quota due to each administration in the distribution of the receipts, shall be 
 regulated subsequently by similar arrangements. 
 
 Article XI. — In all cases where the managements of the two railways can- 
 not agree on points covered by the present Convention or in general upon all other 
 points concerning their reciprocal relations mentioned in this agreement, the 
 differences shall be regulated by the decision of the two respective Govern- 
 ments, arrived at in common after the exchange of views between them on the 
 subject. 
 
 In proof whereof the Envoy Extraordinary and Minister Plenipotentiary 
 of Japan and the Minister of Foreign Affairs of Russia have signed the present 
 Provisional Convention and afifixed their seals thereto.
 
 646 CHINA TREATIES AND AGREEMENTS 
 
 Done at St. Petersburg in duplicate on the 13th day of the sixth month 
 of the 40th year of Meiji corresponding to May 31 (June 13), 1907. 
 
 (Signed) I. Motono, 
 
 (Signed) Iswolsky. 
 
 Additional Articles. 
 
 I. — The Imperial Russian Government and the Imperial Japanese Govern- 
 ment, desiring to establish direct communications for passengers and freight 
 upon the various Russian and Japanese railway lines, undertake to facilitate 
 the conclusion of a special arrangement for this purpose as soon as possible. f 
 
 II. — The undersigned, Alexander Iswolsky, Minister for Foreign Affairs 
 of Russia, and Itchiro Motono, Envoy Extraordinary and Minister Plenipoten- 
 tiary of Japan, having come to an agreement for the adoption of Article 5 of the 
 provisional convention for a connecting railway service, pending the construction 
 of the Changchun-Kirin Railway, it is agreed between the two High Contracting 
 Parties that when the said line shall have been built, the transfer of passengers 
 coming from the north by the Chinese Eastern Railway, and proceeding in the 
 direction either of Kirin or of Dairen, as also the transfer of passengers coming 
 either by the Kirin line or by the South Manchurian line, and proceeding north- 
 wards, will take place at the Japanese station of Changchun. For this purpose, 
 a special arrangement will be concluded later between the interested companies. 
 
 III. — With a view to bringing into operation the railway connection in 
 Manchuria, without awaiting the completion of the work contemplated by the 
 provisional convention signed this day, the South Manchuria Railway Company 
 will construct a temporary station in proximity to the Russian station of Kuan- 
 chengtze, and the two companies will establish, each for its own part, the necessary 
 arrangements for the transfer of passengers, packages, baggage and other objects 
 
 t On August 14, 1911, was concluded a supplementary convention for this purpose, 
 of which the translation (from the French text printed in Isviestia, 1912, vol. II, p. 43) is 
 as follows : 
 
 Supplementary Convention concerning Railway Connections in Manchuria, 
 
 August 14, igii. 
 
 The Imperial Government of Japan and the Imperial Government of Russia, desiring 
 to facilitate, in accordance with the provisions of Additional Article I annexed to the 
 Provisional Convention concerning the connecting service of the Japanese and Russian 
 Railways in Manchuria, signed at St. Petersburg, May 31/June 13, 1907, the direct shipment 
 of goods between the two countries by the Japanese and Russian railways and steamships, 
 have agreed upon the following : 
 
 I. — The two Governments will authorize the railways and the navigation companies 
 interested to make arrangements for the direct shipment of goods. These arrangements will 
 have to be submitted for the approval of the two Governments before being put into 
 force. 
 
 II. — The two Governments agree to take, in case of necessity, all indispensable legis- 
 lative measures for the putting into force of the said arrangements. 
 
 In faith whereof the undersigned, duly authorized by their respective Governments, 
 have signed this convention and set their seals thereto. 
 
 Done at St. Petersburg, the 14th day of the 8th month of the forty-fourth year of Meiji, 
 corresponding to August 1/14, 1911. 
 
 (Sgd.) MoTONO. (Sgd.) Neratow.
 
 NUMBER 1907/9: JUNE 13, 1907 647 
 
 transported by the passenger trains, and the transhipment of merchandise between 
 the temporary Japanese station and the Russian station of Kuanchengtze. 
 
 Done at St. Petersburg in dupHcate, May 31/June 13, 1907, corresponding 
 to the 13th day of the 6th month of the 40th year of Meiji. 
 
 (Sgd.) ISWOLSKY. (Sgd.) I. MOTONO. 
 
 (L. S.) (L. S.) 
 
 PROTOCOL. 
 
 At the moment of proceeding to the signature of the Provisional Conven- 
 tion for the connexion of the Japanese and Russian railways in Manchuria, the 
 two High Contracting Parties, judging it useful to settle certain questions rela- 
 tive to the station of Kuanchengtze and to the coal mines of Shibelin and 
 Taokiatun, the undersigned, Itchiro Motono, Docteur en Droit, Envoy Extraordi- 
 nary and Minister Plenipotentiary of Japan, and le Maitre de la Cour Imperiale, 
 Alexandre Iswolsky, Minister of Foreign Affairs of Russia, have concluded the 
 following : — 
 
 Art. I. — It has been agreed between the two High Contracting Parties that 
 in principle the station of Kuanchengtze and its appurtenances were the common 
 property of Japan and Russia, but that, for the sake of practical convenience, 
 the exclusive ownership of the said station and of its appurtenances shall remain 
 with Russia and that for it the Russian Government shall pay to the Japanese 
 Government a sum of 560,393 rubles as compensation for the renunciation by 
 Japan of her rights of co-ownership of the Kuanchengtze station and its 
 appurtenances. 
 
 Art. II. — The Russian Government shall turn over to the Japanese Govern- 
 ment, with the briefest possible delay, after the signature of the Provisional 
 Convention for the railway connexion, in their actual state, all the railways and 
 all the objects belonging to these railways which are to the south of the point 
 marked N. 2,223 in the plan here annexed, as well as the coal mines at Shibelin 
 and Taokiatun with all their appurtenances. Immediately after the signing of the 
 said Convention, the necessary instructions shall be sent by the two Governments 
 of Japan and Russia to the South Manchuria Railway Company, on the one part, 
 and, on the other part, to the Chinese Eastern Railway Company, to proceed to 
 the transfer of the said railways and of everything belonging to these railways 
 as well as the aforementioned coal mines. 
 
 Art. III. — It is agreed between the two High Contracting Parties that the 
 Japanese Government shall subsequently choose a site, where shall be constructed 
 the Japanese station of Kuanchengtze and the town of Changchun. 
 
 In the event of the construction of the Kirin railway line, the Japanese 
 Government shall exert itself to cause the construction by the railway company, 
 outside the limits of the Changchun station, of grade crossings or viaducts at the 
 points of crossing of the said line and the principal roads between the Russian 
 station of Kuanchengtze and the town of Changchun. 
 
 Art. IV. — The detailed regulations relative to the transhipment of the pas-
 
 648 CHINA TREATIES AND AGREEMENTS 
 
 sengers and merchandise from one railway to the other, which should be con- 
 cluded between the two railway companies, Japanese and Russian, shall be dis- 
 cussed and concluded between the companies interested, with the briefest possible 
 delay, after the signing of the Provisional Convention for the railway con- 
 nexion. As to the place and the date of the meeting of the Delegates respecting 
 that subject, they shall be subsequently determined in the manner most agreeable 
 to the two Parties. 
 
 Art. V. — It is agreed between the two High Contracting Parties that the 
 Convention signed under today's date shall be put in force immediately after 
 the construction of the provisional Japanese station mentioned in Article 3 
 of the Additional Articles of the said Convention shall have been completed. 
 
 In testimony whereof, the Envoy Extraordinary and Minister Plenipotentiary 
 of Japan and the Minister of Foreign Affairs of Russia have signed the present 
 Protocol and affixed thereto their seals. 
 
 The 13th day of the 6th month of the 40th year of Meiji, corresponding to 
 May 31/June 13, 1907. 
 
 (Signed) I. Motono. 
 
 (Signed) Iswolsky. 
 
 NUMBER 1907/10. 
 
 RUSSIA AND CHINA. 
 
 Experimental regulations for the establishment of customs houses in Northern 
 
 Adanchnria* — July 8, 1907 . 
 
 I. — The Convention for the Land Trade Between Russia and China f pro- 
 vides that no duties shall be levied on the frontier of the two countries within 
 the limit of a hundred li (33 miles) ; and the Chinese Eastern Railway Agreement 
 provides that China must establish Customs Stations where the railway line 
 crosses the frontier.^ 
 
 Now, therefore, China agrees not to collect duty for the present upon goods 
 shipped by railway to the stations within the hundred-/i limit on the frontier. 
 
 II. — Certain areas shall be fixed within which goods shipped by rail shall be 
 required to pay but two-thirds of regular import duty. 
 
 At Harbin, the main station on the line, such % duty area shall extend 
 to all points within a radius of ten Chinese li (3 miles) from the station. At the 
 following more important places such area shall extend to a distance of five li 
 in each direction from the station ; viz : Man-chu-li, Cha-lai-no-erh, Hai-la-erh, 
 
 * Translation, as printed in For. Rel., 1907, p. 138, from the official Chinese text. 
 In connection with these regulations, see also the Memorandum of agreement concern- 
 ing the provisional Sungeri River trade regulations, etc., August 8, 1910 (No. 1910/3, post). 
 See Note 1 to this document, post, p. 650. 
 t See Note 2 to this document, post, p. 650. 
 i Agreement signed September 8, 1896 (No. 1896/5, ante).
 
 NUMBER 1907/10: JULY 8, 1907 649 
 
 Cha-lan-t'un, Fu-lu-erh-chi, Tsitsi-ha-erh, A-shih-ho, I-mien-po, Hai-lin, Yieh-ho, 
 Mu-lin, Chiao-chie-chan, Shuang-cheng-p'u, Lao-shao-kou, Yao-men, and K'uan- 
 ch'eng-tzu. The two-thirds duty regulation shall be put into effect at all the 
 above places, and within the area around each as stipulated, with the exception, 
 however, of Man-chu-li and Chiao-chie-chan (on the Sui-fen River) both of 
 which places are situated within the hundred-// duty free limit. In addition 
 to the above, there shall be two-thirds duty areas extending to a distance of 
 three // in each direction from all the smaller stations on the Eastern Railway. 
 
 If, however, such goods are shipped out of the places above mentioned and 
 the areas described, all other places being in inland territory, the full amount of 
 the regular duty thereon must be made up, and the goods considered subject to 
 inland trade regulations. § 
 
 III. — This reduction of one-third of the regular import duty on goods shipped 
 by railway, is made by special agreement between China and Russia. China 
 agrees, however, that not only Russian but all foreign merchandise shipped to 
 China over the Eastern Railway, is equally affected. 
 
 Russia, on her part, agrees that all duty collected on goods which are not 
 exempt from duty by the terms of the Russo-Chinese Land Trade Convention, 
 shall be levied according to the new Customs tariff, one-third of the regular 
 amount being deducted. 
 
 IV. — These Articles of Agreement shall serve in a general way for experi- 
 mental regulations for North Manchurian Customs-houses. If it shall become 
 necessary to make any additions or alterations therein, or if any corrections shall 
 be found necessary in order that the regulations shall be in harmony with Chinese 
 Customs procedure, such changes may be considered and decided upon by both 
 parties to this agreement after one year. 
 
 § With the text as printed in For. RcL, 1907, p. 138, is given the following " Exposition 
 of Article 2 " : 
 
 " Some controversy with regard to the interpretation of Article II. of the above 
 agreement having occurred, the Chinese Board of Foreign Affairs at a later date officially 
 communicated the following explanation of its understanding of that article to the Russian 
 Minister in Peking, and received his acceptance of the same [on October 7. 1907]. 
 
 " ' Article II. of the Experimental Regulations agreed upon by China and Russia 
 for the opening of Customs Houses in Northern Manchuria contains the following clause: 
 
 " ' If, however, such goods are shipped out of the places above mentioned and the areas 
 described, all other places being in inland territory, the full amount of the regular duty 
 thereon must be made up, and the goods considered subject to inland trade regulations.' 
 
 "The meaning of this article is that all goods shipped out of the places mentioned 
 and the areas described, will, (since all other places are considered to be within inland 
 territory) be required to make up the full amount of the regular import duty by paying 
 the Vi not previously collected. This additional % duty will take the place of a transit 
 duty, and upon payment thereof a pass will be issued permitting the goods to be shipped 
 to any point within the Three Eastern Provinces (Manchuria) under the inland trade 
 regulations. Without such pass the goods will be subject to likin and other duties at all 
 Customs barriers passed. Furthermore, if it is proposed to ship these goods upon which 
 the full import duty has been paid, from the Three Eastern Provinces into China proper, 
 then a further half-duty will be collected thereon in accordance with the regular Customs 
 tarifif, this being the transit duty for China proper. Upon payment of this duty a pass 
 will be issued exempting the goods from further duty, but without such pass likin and 
 other duties will be collected at all Customs barriers passed. 
 
 "And in addition it is clearly understood that this plan as explained is experimental, 
 even as the Regulations themselves, and if any additions or alterations are found necessary, 
 a consideration of the matter shall be held by both parties to this agreement one year 
 hence."
 
 550 CHINA TREATIES AND AGREEMENTS 
 
 As to detailed regulations for Customs Houses, the mapping of the different 
 areas, and the locating of small stations, these matters shall be discussed and 
 decided as soon as possible by representatives of the two countries. || 
 
 Note 1. 
 
 In Soglashcnia, p. 85, are printed a Russian translation of the note from Prince Ch'ing 
 to the Russian Minister at Peking, under date of June 23/July 6, 1907, proposing these 
 regulations, and the reply of the Russian Minister, under date of June 25/July 8, 1907, 
 accepting them; and there is also printed a further exchange of notes, of which the purport 
 is indicated by the following translation of the note addressed by Prince Ch'ing to the 
 Russian Minister under date of July 2/15, 1907: 
 
 " On June 25/July 8 last, I had the honor to receive your communication in which you 
 said: 'On this day I had the honor to inform you. Honorable Prince and Dignitaries, that 
 the Imperial Russian Government had expressed its consent to the establishment of Chinese 
 customs houses at the terminal points of the Chinese Eastern Railway, on the basis of rules 
 adopted for the period of one year. I now deem it my duty to state to you that the 
 Imperial Russian Government is seriously solicitous that any special privileges which may 
 in future be granted to goods conveyed into Manchuria through the port of Dalny 
 (Dairen) should also be extended to goods brought into Manchuria over the land frontier. 
 Therefore all privileges granted to goods brought through the port of Dalny, and not 
 provided for in the treaties on maritime trade or the agreement for the construction of the 
 South Manchurian Branch, shall be granted also to the goods introduced into Manchuria 
 over the railroad via frontier points. I deem it my duty to communicate the foregoing to 
 you. Honorable Prince and Dignitaries, in compliance with instructions from my Govern- 
 ment.' 
 
 " In connection with the foregoing communication the ministry under my charge deems 
 it its duty to inform your Excellency that it has taken careful note of the contents thereof 
 and has taken the matter under advisement." 
 
 Note 2. 
 
 The reference is to the regulations for trade by land, annexed to the St. Petersburg 
 treaty of February 12/24, 1881, between Russia and China (for which see Customs, Vol. 1. 
 p. 188, or Hertslet, p. 483), Article 1 of which provided for a duty-free zone of fifty 
 Russian versts (one hundred Chinese li, or approximately thirty-three miles) on either side 
 of the frontier. These zones were subsequently abolished. See, in this connection, the 
 following translation (from the Russian text as printed in Isviestia, 1912, vol. VI, p. 74) of 
 a note addressed by the Russian Minister at Peking to the Wai Chiao Pu under date of 
 August 24/September 6, 1912 : 
 
 Abolition of 50-verst duty-free frontier Zone, September 6, 1912. 
 
 " On October 25/November 7, last year the Imperial Russian Government handed to 
 the Chinese delegate its counter-proposals for the revision of the St. Petersburg treaty of 
 1881, which up to the present still remain without answer. The repeated reminders of the 
 Imperial Government as to the necessity, in the interests of the trade of both countries, 
 of coming to a conclusion of the negotiations already commenced for the revision of the 
 said treaty, have not led either to the receipt of the consent of the Chinese Government 
 to the Russian counter-proposals or to any other new proposals regarding the question. The 
 attempt of the Imperial Government to come to an agreement with the Chinese Government 
 regarding the date up to which the St. Petersburg treaty should be left in force has like- 
 wise remained without result. 
 
 " Such a situation reacts in the most injurious manner on the Russo-Chinese overland 
 trade which, having a biennial or even triennial turnover, has need of settled procedure 
 more than any other trade. The continued uncertainty as to how long the existing system 
 of trade relations on the frontier of Russia and China will last, evokes just complaints from 
 all sides. 
 
 " In view of the above, having come to the conclusion that the Chinese Government 
 
 See Note 3 to this document, post, p. 651.
 
 NUMBER 1907/10: JULY 8, 1907: NOTES 651 
 
 is either unable or unwilling to negotiate a revision of the St. Petersburg treaty, and 
 considering that the Chinese Government has not availed itself of the right to a revision 
 of trade regulations conveyed under Article 15 of the said treaty, the Imperial Russian 
 Government, desirous of establishing a sound system for Russo-Chinese overland trade, 
 hereby declares that it is compelled to consider the St. Petersburg treaty of 1881 as remaining 
 in force for a further period of ten years, i.e. to 7/20 August, 1921, in conformity with the 
 stipulations contained in Article 15 of the treaty. 
 
 "Of the proposals communicated by the Chinese delegate in August last year, the 
 Imperial Government has taken note of the desire of the Chinese Government to abrogate 
 the special privilege of duty-free trade in the fifty-verst zone on each side of the land 
 frontier between Russia and China. The Imperial Government recognizes that under the 
 present conditions when along the land frontier a series of populated districts has grown 
 up, the existence of a fifty-verst free zone, established at a time when the frontier was 
 uninhabited, has become in many places abnormal. This is confirmed by the series of 
 difficulties which have arisen latterly as to the true meaning of the privileges connected 
 with the existence of this zone. 
 
 " Desiring to meet the above_ mentioned wish of the Chinese Government, expressed 
 through its delegate for the revision of the St. Petersburg treaty, and recognizing the 
 inconvenience of leaving the question of the fifty-verst privileged zone without decision 
 for ten years, the Imperial Russian Government hereby informs the Chinese Government 
 that the privileged zone on the Russian side of the land frontier between Russia and China 
 will be abolished from 1/14 January, 1913. 
 
 " It goes without saying that the Imperial Government will not object to the simultaneous 
 abolishment of the privileged fifty-verst zone on the Chinese side of the frontier." 
 
 Note 3. 
 
 The following provisional regulations for the working of the Chinese custom houses 
 at the Stations Manchuria and Pogranichnaya (Suifenho) were subsequently agreed upon 
 and published by a notification of the Commissioner of Customs at Harbin on May .^0, 
 1908: 
 
 Provisional Regulations for Chinese Custom Houses at Manchuria and 
 Pogranichnaya, May 30, 1908. 
 
 General Rules. 
 
 "Art. 1. — In accordance with the Contract for the Construction of the Chinese Eastern 
 Railway of 27-th August/8-th September 1896, of Kuang Hsii 22-nd year, 8-th moon 2-nd 
 day, by Chinese calendar, Custom Houses are about to be opened by the Chinese Govern- 
 ment at the terminal stations of the Chinese Eastern Railway 'Manchuria' and ' Pogranit- 
 chnaya ' ('Suifenho') which will be subordinated to the Head Custom House at Harljin. 
 
 " At the Stations Horhonte and Mulin Controlling Barriers will be established by the 
 Chinese Customs to control the movements of goods and to levy duties on merchandise 
 exported from within the 50-versts free frontier zone. 
 
 " NOTE. — The security existing within the Chinese Eastern Railway Territory is 
 
 assured to the full extent to the employes of the Chinese Customs. 
 
 " Art. 2. — Goods carried by the Chinese Eastern Railway through the said Customs 
 into the Russian Empire, and in the opposite direction, are liable to Customs Import or 
 Export duty respectively at two-thirds of the Tarifif rate of the Chinese Maritime Customs. 
 
 " Art. 3. — The above mentioned Custom Houses collect exclusively Customs duties and 
 do not levy any inland or other duties or taxes. They however collect Transit Dues on 
 such goods carried by the Railway as are declared at the Customs as intended for trans- 
 mission into the interior from within the station areas fixed by the despatches of 23-rd and 
 2S-th June/6-th and 8-th July. 1907 (Kuang Hsii 33-rd year, 5-th moon. 26-th and 28-th 
 days). (See Appendix A.) [See Note 1, p. 650.] 
 
 " NOTE. — The rate of Transit Dues referred to in this article is as follows : 
 
 "1) When conveyed from within the Station areas into the interior within the 
 limits of Manchuria, Transit Dues are equal to one-third of the Maritime Customs 
 Tarifif, i.e., one half of the Import duty paid: 
 
 " 2) When conveyed from within the Station areas to the provinces of China 
 proper the full Maritime duty is made up, i.e., the additional one-third is to be paid 
 together with Transit dues at the rate of one half of the Maritime duty. 
 
 " Art. 4. — On payment of Customs or Transit duty the said Customs Houses issue 
 Receipts and Certificates.
 
 552 CHINA TREATIES AND AGREEMENTS 
 
 " Art. 5. — Goods destined according to their Railway documents for the Stations Man- 
 churia and Pogranitchnaya and other stations situated within the 50-versts frontier zone 
 are — as goods entering the 50-versts free frontier zone — released for conveyance to destina- 
 tion after examination free of duty. 
 
 " Art. 6. — Goods from Russia destined according to the Bills of Lading for the stations 
 situated outside the 50-versts frontier zone, or goods laden at the stations JNIanchuria or 
 Pogranitchnaya and intended for transmission to the stations outside this 50-versts frontier 
 zone, are liable to Import duty after examination by the Customs. 
 
 " Art. 7. — In all their actions the Custom Houses at the stations Manchuria and 
 Pogranitchnaya conform with the Treaty of 1881 (Kuang Hsii 7-th year) and the Regula- 
 tions for Land Trade appended thereto, the Contract for the construction of the Chinese 
 Eastern Railway concluded in 1896 (Kuang Hsii 22-nd year), the Principal Rules given 
 in the despatches of the Chinese Foreign Ofhce and the Russian Minister at Peking of 
 23-rd and 25-th June/6-th and 8-th July, 1907 (Kuang Hsii 33-rd year 5-th moon, 26-th 
 
 and 28-th days), the Supplementary despatches of 1907 (Kuang Hsii o3-rd 
 
 year, . . . moon, . . . day), as with the present Provisional Regulations and the general 
 instructions of the Inspector General of the Chinese Imperial Maritime Customs as far as 
 these are applicable to the conditions of land trade. 
 
 " The Custom House at the Station ]\Ianchuria, being situated in a locality opened to 
 foreign trade, complies also with the treaties concluded by the Chinese Government with 
 other countries. 
 
 "Art, 8. — In order not to delay the cargo traffic and in the interest of the Russo- 
 Chinese trade the said Custom Houses will take all necessary measures towards the speedy 
 release of goods passing through the Customs. 
 
 " Art. 9. — Buildings required for the use of the Customs at the Stations Manchuria and 
 Pogranitchnaya for offices, for storage and keeping of goods which are in the hands of the 
 Customs (go-downs) and for quarters of the employes will be provided by, and at the 
 expense of the Chinese Government, and the sites for the Russian and Chinese Custom 
 House buildings at these stations will be chosen by mutual agreement in the immediate 
 neighbourhood of each other in order to avoid all delay in the transmission of documents 
 and goods from one Custom House to the other. 
 
 " Art. 10. — In the event of there being at the Stations Manchuria and Pogranitchnaya 
 buildings belonging to the Chinese Eastern Railway fulfilling by their situation the demands 
 of the preceding article, such buildings may be placed by the Railway at the disposal of 
 the Customs against rental as by mutual arrangement. 
 
 " The Chinese Eastern Railway can in general undertake the construction of all buildings 
 required by the Customs according to the plans and specifications of the Customs at 
 their own cost. 
 
 "Art. 11. — For the examination of passengers and their luggage the Russian Customs 
 at the Stations Manchuria and Pogranitchnaya may place at the disposal of the Chinese 
 Customs their Luggage Examination Halls. 
 
 "Art. 12. — Chinese Customs buildings (offices and godowns) as well as all the goods 
 discharged by the Customs into these must be guarded by the Customs themselves. The 
 responsibility however for goods in railway cars from which Railway seals have not been 
 removed by the Customs rests with the Railway. 
 
 " Art. 13. — In service matters the Russian and Chinese Customs at the Stations Man- 
 churia and Progranitchnaya as well as the Chinese Eastern Railway will render mutually 
 full assistance to each other. 
 
 " The Railway . undertakes the transmission by all mail trains, of Chinese Customs 
 covers addressed to the stations lying en route free of charge, and will issue by agreement 
 a certain number of free service railway tickets for the employes of the Chinese Customs 
 travelling on service on the line. 
 
 "Telegrams from the Chinese Customs are transmitted by the Railway Telegraph 
 against payment as usual. 
 
 "Art. 14. — With a view to expedite the transaction of business and establish a fixed 
 terminology and for convenience of the local Chinese population, a gradual introduction, 
 based upon experience, is desirable of a Chinese text parallel with the Russian on forms of 
 documents of various kinds, labels, etc. used by the Railway and which have connection 
 with the Customs. 
 
 " In order to facilitate relations between the Chinese Customs at the frontier stations, 
 the Railway and the Russian Customs the external correspondence will be carried on in 
 Russian, with parallel Chinese text if necessary; likewise documents issued by the Chinese 
 Customs will be supplied with parallel Russian text as may be necessary. 
 
 " Art. 15. — For the execution of Customs formalities in connection with the goods 
 passing through the Stations Manchuria and Pogranitchnaya in the absence of the owner 
 of the goods or of his agent, the Chinese Eastern Railway maintains at, the said stations 
 Customs Agencies.
 
 NUMBER 1907/10: JULY 8, 1907: NOTES 653 
 
 " XOTE. — Conditions and Rules for the working of the Customs Agencies are 
 defined by special agreements between the Chinese Eastern Railway and the Chinese 
 Customs. In case of it being necessary for the Agencies to pay the duties, these are 
 tendered either in cash or by bills of the Chinese Eastern Railway. 
 " Art. 16. — Should a discrepancy be discovered between the goods and Customs docu- 
 ments tendered for these, goods will be confiscated or, at the option of the Customs, a fine 
 will be inflicted. 
 
 " Specl-'lL Rules. 
 " import of goods. 
 
 "Art. 17. — Goods going from Russia into Manchuria are examined by the Custom 
 Houses at the Stations Manchuria and Pogranitchnaya respectively. Goods which according 
 to the Bills of Lading have for their destination one of the places situated within the 
 50-versts frontier zone are to be passed without delay free of duty after the Customs 
 have ascertained that among the goods there is nothing prohibited for importation into 
 China. 
 
 " NOTE. — Goods mentioned in this article, at the option of the sender, with the 
 
 consent of the Customs, may be sent under Customs seals of the entering Customs 
 
 concerned to Harbin for examination and payment of duty. 
 
 " Art. 18. — The examination of goods imported into Manchuria will be carried out on 
 the basis of the duplicate copies of the Bills of Lading transmitted by the Russian Cus- 
 toms to the Chinese Customs. 
 
 " The Chinese Customs will begin the examination not later than 24 hours from the 
 time of the transmission of the Bills of Lading. The examination of goods brought by a 
 train must be completed in the shortest time possible and not later than 48 hours from the 
 moment the examination began. In case of noncompliance with the fixed time limits, a 
 report will be drawn up by the Custom House anent the circumstances of delay and sub- 
 mitted to the Head Custom House ; copy of that report is to be attached to the railway 
 cargo documents. 
 
 " Art. 19. — The undermentioned particulars must invariably be entered on the Bills of 
 Lading, i.e.. name of sender, and, if possible, the name of addressee, place of despatch of 
 goods (the station of departure), place of destination, denomination, quantity and weight 
 of goods : mode of packing, signs, marks, numbers, etc. and, if possible, the value of goods, 
 and the signature of the railway offical appointed for the purpose. 
 
 " Art. 20. — In addition to the duplicate copies of Bills of Lading it is left to the owner 
 of the goods to present to the Customs Invoices, Specifications and other documents defining 
 value, quality and quantity of goods. 
 
 "Art. 21. — Besides the above mentioned duplicate copies of the Bills of Lading, the 
 Railway station officials present to the Customs for comparison Train and Car Lists. 
 
 " Art. 22. — On receipt of the Bill of Lading the Customs either calculate the duties 
 leviable according to the data given on the Bill of Lading if, upon unloading a part of 
 the goods, the packages after outside inspection or on opening a certain number of pack- 
 ages at random be found to correspond in all respects with the particulars given on the Bill 
 of Lading, or otherwise goods are unloaded from cars, opened up and examined by the 
 Customs in the event of there being some discrepancy or suspicion about the documents. 
 " Art 23. — The despatch of goods from the Stations INIanchuria or Pogranitchnaya into 
 Manchuria by the Railway line is only to take place with the cognisance of, and after the 
 sender of goods has submitted to, the Customs a written application to that effect. 
 
 " Goods destined for stations situated inside the 50-versts zone are passed without 
 delay duty free after the Customs have ascertained there is nothing in them that is pro- 
 hibited for importation. Goods going by railway to places outside the 50-versts frontier 
 zone are examined according to the application presented and charged Import duty on 
 whenever leviable. 
 
 " Goods, however, sent from other stations within the 50-versts zone to stations out- 
 side this zone are liable to examination and levy of duty whenever such is due at theCon- 
 trolling Barriers to be established by the Chinese Customs at the stations Horhonte and 
 Mulin. . 
 
 " Art. 24. — The release of goods from Customs control takes place immediately after 
 the payment of Customs duties leviable on them. In proof of payment of duty the Cus- 
 toms issue Receipts to exempt goods from second payment of Customs duty. 
 
 " Art. 25. — At the option of the owner of goods Receipts may be issued for separate 
 lots of goods forming part of a consignment showing fractional amounts of duty charged 
 on each lot. but on payment of a special fee for these Receipts. 
 " Art. 26. — These Receipts remain in force for three years. 
 
 " Art. 27.— Goods prohibited for importation into China when discovered will be con- 
 fiscated by the Customs. 
 
 "Art. 28.— (Not settled.)
 
 554 CHINA TREATIES AND AGREEMENTS 
 
 "Art. 29.— (Not settled.) 
 
 "Art. 58. [Follows Art. 29 as referring to the same subject.] — Goods having for their 
 destination one of the points inside the station areas which have paid duty on importation 
 may be transmitted to places in the interior upon presentation of an application to the 
 entering Customs or the Harbin Head Custom House together with a receipt of either of 
 the Custom Houses at the Stations Manchuria or Pogranitchnaya in proof of payment of 
 the Import duty, and upon payment of Transit dues at the rate fixed in Article 3 of the 
 present Regulations. 
 
 " The Customs concerned, or the Head Custom House at Harbin, after having verified 
 the goods with the entries in the Receipts in proof of payment of duty and after having 
 levied the said Transit dues, issues to the owner of the goods Transit Certificates men- 
 tioned above. 
 
 " Art. 30. — Transit Certificates may, at the option of the owner of goods, be issued 
 for a whole consignment of the goods or for each separate lot of a consignment as may 
 be decided by the owner of goods. 
 
 " EXPORT OF GOODS. 
 
 " Art. 31. — On arrival of a train from Manchuria at the Stations Manchuria or Po- 
 granitchnaya the Railway officials present to the Customs House Train and Car Lists and 
 the duplicate copies of Bills of Lading. 
 
 "Art. 12. — Only such goods as are addressed to the Stations in Russia outside the 50- 
 versts frontier zone are liable to Export duty after examination by the Customs. 
 
 " Art. Z2). — Goods exported from Manchuria are examined by the Chinese Customs 
 who assess the Export duty according to the Chinese Tariff and then by the Russian 
 Customs who calculate the Import duty according to the Russian Tariff, or, in order to 
 avoid delay, according to circumstances, examination and assessment of duty are carried out 
 by both Customs jointly and simultaneously. 
 
 " Art. 34. — Goods which are liable to Chinese Export duty may not be despatched by 
 railway into the Russian Empire before duty has been paid. 
 
 " Art. 35. — Goods the exportation of which from the Chinese Empire is prohibited 
 will be confiscated by the Chinese Customs. 
 
 " Art. 36. — In the case of goods brought to the Stations Manchuria or Pogranitchnaya 
 for transmission into the Russian Empire which have already paid Export duty, these will 
 be released by the Chinese Customs without a fresh levy of Export duty, in the event of a 
 Certificate regarding such payment being presented and if the packages upon outside in- 
 spection prove to be in agreement with the particulars given in the Certificate. In case of 
 discrepancy or a suspicion about the goods, these will be examined. 
 
 " RAILWAY GOODS. 
 
 " Art. Zl . — All articles and materials required for the construction, working and repairs 
 of the Chinese Eastern Railway Line are exempt from all Customs taxes and duties as well 
 as those levied inland. In these are also included all articles required for the protection 
 of the line. 
 
 " Art. 38. — For the above mentioned goods the Railway presents to the Customs duplicate 
 copies of Bills of Lading and the goods will be released by the Customs at once after an 
 outside inspection and comparison of packages with the particulars in the Bills of Lading, 
 with the exception of those special cases when the Harbin Head Custom House directs the 
 Custom House to examine a particular lot of railway goods. 
 
 " Art. 39. — The said duplicate copies of Bills of Lading will be accompanied by certifi- 
 cates or declarations issued by the Chinese Eastern Railway to the effect that these goods are 
 its own property and intended for its requirements (use). 
 
 "Art. 40. — In case it is intended to sell or transmit to an outsider materials or articles 
 mentioned in Article Zl , whether on account of their not being needed or being worn out, 
 a declaration of such intention to the Customs is necessary, who on consideration of the 
 circumstances, gives the permission, and levies duty, if such is due. 
 
 " GOODS IN TRANSIT. 
 
 "Art. 41. — Goods passing from one locality of the Russian Empire to another in transit 
 through Manchuria are released at once by the Customs without levy of duty and without 
 hindrance if the seals affixed at the entering Station by the Russian and Chinese Customs 
 are intact. The Chinese Customs seals are affixed to the cars after the Russian Customs 
 seals. 
 
 " Art. 42. — The Railway hands over to the Customs for information duplicate copies of 
 Bills of Lading for the transit goods mentioned in the preceding article. 
 
 "Art. 43. — Should seals of one of the Customs be damaged or lost en route while
 
 NUMBER 1907/10: JULY 8, 1907: NOTES 655 
 
 the seals of the other Customs or the Railway seals are intact and the latter agree with 
 the entries made in the Car List, the leaving Customs orders the release of the car on its 
 journey without making a detailed internal verification of the cargo. 
 
 " Art. 44. — Should all the seals afiixed at the entering station be damaged or lost or 
 only a part of them making unhindered access into the car possible, or the car be damaged 
 en route, and require a reloading of goods, the railway station at which the damage is 
 discovered, informs immediately by telegraph the Customs at the station of entry as well 
 as the nearest Custom House and detains the car until the receipt of a telegraphic reply. 
 
 " Art 45.— It rests with the Custom House which receives the telegram to appoint a 
 special employe to carry out the investigation into the causes of damage or loss of seals, or 
 to commission the Railway to make such investigation or to authorise the despatch of the 
 car for investigation to the leaving frontier station. 
 
 "Art. 46. — If at the investigation or upon inspection and comparison of cargo with 
 documents at the place of accident or at the leaving Customs the cargo be found in full 
 agreement with the documents it will be allowed to proceed without hindrance. 
 
 " Art. 47. — On the cars with damaged or lost seals new seals will be affixed at the 
 place of accident with which they will proceed to the frontier leaving Customs, proper 
 remarks to the effect being made on the cargo documents; if a special Customs officer be 
 sent to make the investigation, in addition to the Railway seals attached at the place of 
 accident. Customs seals will be affixed by him also. In the absence of the Customs officer 
 the cars will proceed with only the Railway seals. 
 
 "Art. 48.— (Not settled.) 
 
 "Art. 49. — In case of shortage, loss or disagreement of cargo, caused through derail- 
 ment or other uncontrollable forces (force majeure) the Railway is not responsible to 
 the Customs, but in all such cases the railway must take proper steps to prevent pilfering, 
 loss, etc., of the remaining cargo. 
 
 "Art. 50. — If, in cases described in Article 49, it is intended to sell the remaining or 
 damaged cargo on the spot. Customs permission must be obtained beforehand. Import 
 duty (and Transit dues, if leviable) must be paid by the purchaser before delivery of the 
 sold cargo. 
 
 " Art 51. — In case the investigation proves the guilt of Railway employes, the Cus- 
 toms concerned notifies this to the Railway authorities for them to take such action as may 
 be deemed necessary, and the Railway authorities will inform the Customs of the decision 
 given. 
 
 " RE-EXPORTS. 
 
 " Art. 52. — In case foreign goods are re-exported from China, the import duty originally 
 paid will be refunded in accordance with the rules followed by the Chinese Maritime Cus- 
 toms, as given below. 
 
 " Art. 53. — Foreign goods which have paid Import duty, if re-exported from China 
 within three years from the date of such payment, may receive refund of the previously 
 paid Import duty in the form of Drawback Certificate. 
 
 " Art. 54. — Drawback Certificates are accepted by the Customs without deduction in 
 payment of Export and Import duties. If desired, they may be exchanged for ready 
 money. 
 
 " Art. 55. — Drawback Certificates are issued by the Customs within three weeks from 
 the day of presentation of documents establishing the right of the owner of goods to a 
 refund of duty, in case the goods prove to be in all respects in agreement with the 
 description recorded at the time of importation, if they are in their original packages, bearing 
 all the distinguishing signs and marks, and if the duty the refund of which is requested 
 was actually paid within the specified term. 
 
 " Art. 56. — Should the examination prove discrepancy between goods and documents 
 and fraud be discovered, the goods will be confiscated. 
 
 "Art. 57. — If fraud be discovered when refund of duty is claimed on foreign goods, 
 the Customs at its option either inflicts a fine not exceeding five times the duty the 
 refund of which was applied for, or confiscates the goods concerned. 
 
 "Art. 58.— (Follows Art. 29.) 
 
 "Art. 59.— (Not settled.) 
 
 " Art. 60. — The following Articles prohibited to be imported and exported, in accord- 
 ance with Article 15 of the Regulations for Land Trade of 1881, if carried through the 
 Stations Manchuria and Pogranitchnaya will be considered as contraband articles and liable 
 to confiscation : Powder, Artillery Ammunition, Cannon, Guns, Rifles, Pistols and all 
 kinds of Fire Arms, Military Munitions and Implements of War, Salt, Opium. Likewise it 
 is prohibited to export from China through the Stations Manchuria and Pogranitchnaya 
 Rice and Chinese Copper Coins.
 
 656 CHINA TREATIES AND AGREEMENTS 
 
 " Rules Regarding Passengers' Luggage. 
 
 " Art. 61. — Passengers' luggage is passed after examination duty free. 
 
 " Art. 62. — As luggage are generally recognised all articles accompanying a passenger 
 whether intended for his personal use or required on the journey. 
 
 " Art. 63. — Should there be discovered among the passengers' luggage articles pro- 
 hibited to be imported or exported, they will be confiscated. 
 
 " Art. 64. — Dutiable articles whether of the nature of goods or in excessive quantity evi- 
 dently intended for sale, carried among the luggage, must be declared before examination 
 by the owner when questioned by the examining officer, otherwise the articles will be con- 
 fiscated and the owner may be fined. 
 
 " NOTE. — In case of any changes made in the rules existing in the Chinese Mari- 
 
 tome Customs at the ports regarding luggage these will also be extended to the Chinese 
 
 Customs established after the pattern of the latter at the terminal points of the Railway. 
 
 " Art. 65. — The examination of passengers and their luggage arriving from Russia will 
 be carried out by the officers of the Chinese Customs in presence of a Russian Customs 
 Official and, if articles prohibited by the Russian law for exportation into China be discovered, 
 such will be handed over to the Russian Customs to deal with. 
 
 '■ The examination of passengers and their luggage proceeding from Manchuria into 
 the Russian Empire will be carried out in the presence of an offi.cer of the Chinese Customs 
 by the Russian Customs ; should any article prohibited to be exported from China be dis- 
 covered, such will be handed over to the Chinese Customs to deal with. Articles liable to 
 Export duty will be charged duty on. 
 
 " Rules Regarding Postal Parcels. 
 " 1. general rules. 
 
 " Art. 66. — Postal parcels imported into, and exported from, China are, like other goods, 
 subject to Customs examination and payment of duty according to general rules. 
 
 " Art. 67. — All regulations relative to duty payment at reduced rate or exemption from 
 duty are equally applicable to articles sent by postal parcels from within, or into, the station 
 areas. 
 
 " Art. 68. — Postal parcels going in transit by railway are exempted from payment of 
 Import and Export duties. 
 
 " Art. 69. — Postal parcels are — besides Import and Export duties — liable to Transit 
 dues or Likin according to general rules. 
 
 " Art. 70. — Articles which are prohibited to be imported into, or exported from, China 
 may not be sent in postal parcels. 
 
 " II. SPECIAL RULES. 
 
 "A. Parcels sent to China. 
 
 "Art. 71. — Parcels addressed to places in China must be accompanied by Customs 
 Declarations in duplicate on the lines given in the Parcel Post rules of the Rome Conven- 
 tion (Detailed Regulations, Art. VI, 1.). 
 
 " Art. 72. — In the declarations must be given : place of despatch, denomination of 
 contents, quantity, gross and net weight, value of contents, form of packing, place of destina- 
 tion and name of addressee. 
 
 " Art. 73. — On arrival of parcels at the Stations Manchuria and Pogranitchnaya the 
 Postal department hands in to the Custom House a List of parcels in duplicate together with 
 two copies of the corresponding declarations. In the list the parcels must be grouped to- 
 gether as far as possible according to their places of destination. 
 
 " Art. 74. — The Custom House either demands the presentation of all, or a part of, 
 parcels for examination, or sends an Officer to examine them at the Post Office, or on the 
 strength of declarations passes the parcels without examination. 
 
 " Art. 75. — The amount of duty, if any is due, will be marked on the declarations and in 
 the list, of each of which the Custom House retains one copy and returns the duplicate 
 copies of the list and declarations to the Post Office. 
 
 " Art. 76. — Parcels not liable to duty will be marked in the list and on the declarations 
 ' duty free.' 
 
 " Art. 77. — If addressees of parcels are in a place where there is a Custom House they 
 are to pay the duty to the Customs which issue receipts on the presentation of which 
 the Post office delivers the parcel. Duty may also be paid to the Post office which in such 
 cases transmits the sums collected to the Custom House. 
 
 "The issue of parcels for which duty had been fixed by the Customs is not to take 
 place before the presentation of Customs receipt or until the amount of duty had been paid 
 to the Post office. 
 
 " Art. 78. — Parcels addressed to other places in China where there are no Custom 
 Houses are to be sent to the Post office nearest to the place of residence of the addressee
 
 NUMBER 1907/11 : JULY 30, 1907 657 
 
 accompanied by declarations and with a remark 'duty free' or 'duty amounting to 
 
 Roubles copecks to be collected before delivery,' (which resembles to Trade charges 
 
 for the amount of duty due). 
 
 "Art. 79. — Sums collected by Post offices from the addressees of parcels will be re- 
 mitted by them to the entering Customs concerned or to the Harbin Custom House in full 
 at the expense of receivers of parcels. 
 
 "Art. 80. — For the execution of such Customs formalities the Postal department has 
 the right to exact from addressees a commission at the rate fixed by International or 
 Russian Postal regulations. 
 
 "Art. 81. — In case of a refusal of the addressee to pay the duty parcels will be dealt 
 with in accordance with the existing Postal regulations; but if it be decided to sell such 
 parcel the duty assessed must be paid by the purchaser. 
 
 " B. Parcels sent from China. 
 
 " Art. 82. — Parcels to be exported from Manchuria and despatched from the Stations 
 Manchuria and Pogranitchnaya or from places where there is a Custom House must be 
 first presented to the Customs for examination and payment of duty, whenever such is due, 
 and to receive a permit without which the Post office will not accept parcels (for trans- 
 mission), 
 
 " Art. 83. — When conveying such duty-paid parcels through the Stations Manchuria and 
 Pogranitchnaya a List of parcels together with one copy of Customs declarations is to be 
 presented by the Postal department to the Custom House concerned. Parcels of this 
 category must as far as possible be packed up separately from other parcels which have 
 not paid duty. Such packages at the option of the Customs will travel under seals of the 
 Custom House which levied duty as far as the frontier station where the seals will be 
 removed by the leaving Customs. 
 
 " Art. 84. — Whenever parcels are to be sent from places where there is no Custom 
 House a Customs declaration in triplicate must simultaneously be handed in to the Post 
 Office and duty paid at the rate of 5% on the value declared. The amount of duty is to be 
 simultaneously forwarded to the leaving Customs at the expense of the sender. 
 
 " Art. 85. — On arrival of such parcels at the frontier station a List in duplicate to- 
 gether with Customs declarations in triplicate is to be presented to the Customs. The 
 amount of duty levied and remitted must be marked in the List and on Declarations. 
 
 " Art. 86. — The Custom House either demands the presentation of all, or of a part of, 
 passing parcels for examination, or sends an Officer to examine at the Post office (or !n the 
 Postal car), or gives permission for the parcels to be sent on without examination, and 
 retains one copy each of the List and Declarations. 
 
 " Art. 87. — If at the examination a discrepancy between the contents of a parcel and the 
 declaration be discovered giving ground to suspect intention to defraud the Customs, such 
 parcels will be liable to confiscation. 
 
 " Art. 88. — In case of too low a declaration of the value on the basis of which duty was 
 levied by the Postal department at the place of despatch of a parcel, the release of such a 
 parcel for abroad may be deferred by the Customs until the deficient amount had been 
 paid up." 
 
 NUMBER 1907/11. 
 
 JAPAN AND RUSSIA. 
 Political Convention.'^ — July 30, 1907. 
 
 The Government of his Majesty the Emperor of Japan and the Government 
 of his Majesty the Emperor of All the Russias, desiring to consolidate the rela- 
 
 * Translation from the French text as printed in Traites et Conventions, p. 60. French 
 text printed also in the Russian Yellow-Book, Documents relatifs a la Conclusion entre la 
 Russie et le Japan de la Convention Politique du 17/30 juillef, 1907 (St. Petersburg, 1907) ; 
 Hertslet, p. 619; Am. Int. Law Journal, Supplement, 1907, p. 396 (French text and trans- 
 lation). 
 
 See also the Russo-Japanese conventions of July 4, 1910 (No. 1910/1, post), and of 
 July 3, 1916 (No. 1916/9, post).
 
 558 CHINA TREATIES AND AGREEMENTS 
 
 tions of peace and good neighbourhood which have happily been re-established 
 between Japan and Russia, and wishing to remove for the future every cause of 
 misunderstanding in the relations of the two Empires, have agreed upon the fol- 
 lowing provisions : — 
 
 Art. I. — Each of the High Contracting Parties engages to respect the actual 
 territorial integrity of the other, and all the rights accruing to one and the other 
 Party from the treaties, conventions and contracts in force between them and 
 China, copies of which have been exchanged between the Contracting Parties 
 (in so far as these rights are not incompatible with the principle of equal oppor- 
 tunity), from the treaty signed at Portsmouth on the 5th of September (23rd 
 of August), 1905,t as well as from the special conventions concluded between 
 Japan and Russia. 
 
 Art. II. — The two High Contracting Parties recognise the independence and 
 the territorial integrity of the Empire of China and the principle of equal oppor- 
 tunity in whatever concerns the commerce and industry of all nations in that 
 empire, and engage to sustain and defend the maintenance of the status quo and 
 respect for this principle by all the pacific means within their reach. 
 
 In witness whereof, the undersigned, duly authorized by their respective Gov- 
 ernments, have signed this Convention and have affixed their seals. 
 
 Done at St. Petersburg, the 30th day of the 7th month of the 40th year of 
 Meiji, corresponding to the 30th (17th) of July, 1907. 
 
 (Signed) I. Motono. 
 
 (Signed) Iswolsky 
 
 NUMBER 1907/12. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Heilungkiang 
 
 Province). 
 
 Agreement regarding the operation of coal mines in Heilungkiang Province.'^ — 
 
 August 30, 1907. 
 
 With a view to establishing definite rules for the exploration and operation 
 of coal deposits in Heilungkiang Province for the needs of the Chinese Eastern 
 Railway, we the undersigned. Major General Horvath, Manager of the Chinese 
 Eastern Railway, and Mr. Daniel, Plenipotentiary of the Manager of the Chinese 
 Eastern Railway, parties of the first part, and Expectant Taotai Sun-syao-lyan, 
 
 * Translation from the Russian text as printed in Soglashenia. p. 42. To the text as 
 there given is appended a note that an agreement regarding the operation of coal mines in 
 Kirin Province, in identical terms (mutatis mutandis), was signed on the same date, by 
 the same parties on the Russian side, and by Tu Hsiao-Ying, Expectant Taotai, as the 
 delegate of Kirin Province. See also Note to this document, post, p. 661. 
 
 t No. 1905/8, ante.
 
 NUMBER 1907/12: AUGUST 30, 1907 659 
 
 Wearer of the Peacock Feather, Delegate of Heilungkiang Province, party of 
 the second part, have concluded the following agreement : 
 
 1. The right is granted to the Chinese Eastern Railroad to work the coal 
 within certain regions of Heilungkiang Province. 
 
 The places where the coal may be worked within the limits of these regions, 
 and the mode of working it, shall be determined by the management of the railway 
 itself. However, when explorations are made, a Chinese official must be present 
 in order to ascertain whether there are any objections to the work, the question 
 whether or not there are such objections being determined by the distance of the 
 shafts from Chinese settlements or cemeteries, as follows : Shafts shall not be 
 sunk nearer than two Chinese // to large commercial settlements, not nearer than 
 one Chinese li to villages of not over ten dwellings, and not nearer than one-half 
 Chinese // to large cemeteries and sacred groves. 
 
 2. Within a zone of thirty Chinese li on either side of the roadbed of the 
 railroad, the right to explore and work the coal deposits shall belong to the rail- 
 road. However, Chinese shall also be allowed the right to work the coal deposits 
 within the limits of a zone thirty Chinese li wide on either side of the road, 
 provided this does not interfere with mines previously operated by the manage- 
 ment of the road; and the management shall not offer any opposition thereto. If 
 there should be other foreigners, or Chinese and foreigners, who have gathered 
 capital and desire to operate the coal deposits within the radius of a zone thirty 
 Chinese // wide, they shall not be allowed to proceed with such operation until 
 receiving permission from the Chinese authorities as w^ell as the consent of the 
 management of the road. As regards lands situated outside the thirty li zone, 
 they do not concern the management of the road, and the permission for Chinese 
 or foreigners to explore or operate the coal deposits therein shall depend entirely 
 on the Chinese authorities, the management of the road not having any right to 
 interfere in such matters. If the management of the road should desire to make 
 explorations of coal deposits outside the thirty li zone, it must first receive per- 
 mission from the proper governor, whereupon it may proceed, but in this case the 
 rights of the management of the road shall in no wise differ from those of Chinese 
 or foreigners. 
 
 3. In order not to deprive the inhabitants of coal regions of mineral fuel, 
 the residents of villages in the vicinity of shafts belonging to the Chinese Eastern 
 Railway Company shall have a right to buy coal from the company at prices fixed 
 by the management of the Chinese Eastern Railway for each deposit separately. 
 The prices fixed shall be published by the management for general information 
 and communicated to the Tsiao-she-tsii at Harbin for the same purpose. 
 
 4. If in the vicinity of a place selected for the mining of coal there are settle- 
 ments of not over five dwellings or cemeteries of not over ten graves, the Chinese 
 Eastern Railway Company shall enter into arrangements with the owners of the 
 dwellings or cemeteries for the removal thereof to other places, with the require- 
 ment that the matter be discussed and settled in agreement with the official of the 
 Tsiao-she-tsii, whereupon it shall be necessary to communicate the matter to the 
 local governor for his information. 
 
 5. In each individual case when, as a result of prospecting, it is ascertained
 
 560 CHINA TREATIES AND AGREEMENTS 
 
 that coal may be worked in a particular place, the question of the dimensions of 
 the tract to be worked shall be discussed by the management of the road with the 
 official of the Tsiao-she-tsii and the owner of the land. Upon the tract to be 
 worked being determined, a fair rental or purchase price must be fixed, and not 
 until this question has been settled shall permission for proceeding with the work 
 be granted. Lands which, after being explored, prove useless, shall be releveled 
 at the expense of the management of the road and returned to the owner, for 
 the management of the road is not granted ownership of the surface of the land. 
 For any injuries caused to forests or crops the management of the road shall 
 likewise be obliged, in company with the official of the Tsiao-she-tsii, to reach an 
 agreement with the owners and grant them just compensation. 
 
 6. Any timber found within the limits of the tract purchased, and necessary 
 for the operation of the coal deposits, may be prepared by the management of 
 the road at its discretion. With respect to forests situated on private land outside 
 the limits of the purchased tract, the management of the road must come to an 
 agreement with the owner of the land and proceed in accordance with the forestry 
 regulations established by agreement with the manager of the road. In regard 
 to government lands, it shall also be necessary to proceed in accordance with the 
 forestry regulations mentioned. 
 
 7 . For every 1,000 kin of coal extracted, the Chinese Eastern Railway Com- 
 pany shall pay into the Heilungkiang treasury 12/100 of a Heilungkiang tael 
 quarterly, that is, at the end of March, June, September, and December. More- 
 over, for each active shaft, the Chinese Eastern Railroad Company shall pay 
 annually at the rate of 17.64 Heilungkiang taels in silver, making the payment at 
 the end of June. 
 
 8. With respect to government lands, it shall also be necessary to make 
 explorations in company with a Chinese official, it being necessary to determine 
 the boundaries, and, with the consent of the management of the road, a rental 
 shall be fixed which cannot, however, exceed the amount of charges collected 
 upon the colonization of lands of similar quality. 
 
 9. All questions on which no final agreement has been reached between the 
 company and private individuals or the government treasury, as well as all 
 misunderstandings which may arise at the place where the work is going on, shall 
 be examined and finally decided by the Tsiao-she-tsii of Harbin. 
 
 10. All the foregoing provisions of the present agreement relate solely to 
 the Chinese Eastern Railway Company and are in no case applicable to Chinese 
 subjects who are engaged in the mining of anthracite coal at the present time or 
 who may receive permission for such work in future. All such persons shall be 
 exclusively subject to the Chinese laws already existing on the subject, the Chinese 
 Eastern Railway Company taking no part in the matter. 
 
 11. The present agreement shall be written in the Chinese and Russian 
 languages in duplicate. In case any dispute arises, the Chinese text shall be taken 
 as a basis. 
 
 12. The Tsiao-she-tsii of Heilungkiang Province shall send a Chinese dele- 
 gate to all coal mines being worked by the Chinese Eastern Railway Company, 
 .which delegate shall remain at the place of operations, keep track of the amount
 
 NUMBER 1907/12: AUGUST 30, 1907: NOTE 661 
 
 of coal extracted, and, in company with the Russian superintendent of the mines, 
 prepare reports. Quarters shall be assigned to him by the management of the 
 road. The boundaries of the coal deposits shall be accurately defined, or the 
 deposits shall be surrounded by a fence. In case Chinese who have committed 
 some offense conceal themselves within the limits of the mining regions, the 
 Chinese police may be allowed access thereto, provided the local authorities first 
 communicate with the superintendents of the mines, the latter then appointing 
 persons to cooperate with the Chinese police in searching for and arresting the 
 guilty parties. 
 
 (Signed) Major General Horvath, 
 Manager of the Chinese Eastern Raihvay. 
 E. Daniel, 
 Agent empozuered by Manager of the 
 Chinese Eastern Raihvay to deal zvith 
 the Chinese authorities. 
 (Chinese signature), Expectant Taotai, 
 Wearer of the Peacock Feather, Delegate 
 of Hcilungkiang Province. 
 Harbin, August 17/30, 1907 (22d day, 7th moon, 33d year of the Reign of 
 Kuang Hsii. 
 
 Note. 
 
 The following is a translation from the Chinese text of an agreement for the mining 
 of coal in the Province of Heilungkiang, which had been concluded on January 1/14, 1902 : 
 
 Agreement for Coal Mining in Heilungkiang, January 14, 1902. 
 
 "On the 1st of January, 1902, Russian Calendar, being the 5th of the Twelfth Moon, 
 XXVII Year of Kuanghsii, Chinese Calendar (January 14th, 1902), Ta-nieh-erh (Tarnier),' 
 being appointed by the Engineer-in-Chief of the Chinese Eastern Railway, Ju-ko-wei-chih 
 (Jugovitch) as his agent with full powers, has entered into the following Articles of 
 Agreement with Sa, who is by Imperial appointment the Acting Tartar General of the 
 Province of Hei-lung-chiang: — 
 
 " I. — The Tartar General of the Province of Hei-lung-chiang, being desirous of pre- 
 serving the forests of that province, has given to the Railway Company authority to 
 prospect for coal and to mine coal without hindrance in the said province, the said Com- 
 pany being at liberty to determine for itself in what places and by what methods to so 
 prospect and mine. 
 
 " II. — When prospecting for coal or mining the same, it will be necessary to observe 
 the following three conditions ; — 
 
 " (a) The Railway Company shall have the exclusive right to prospect for coal and 
 to mine coal within not more than 30 Chinese // on either side of the railway line. 
 
 " (&) Should any foreigners, either some other company or some combination of 
 Chinese and foreign share-holders, desire to prospect for coal or mine coal outside the 
 30 li limit on either side of the railway, the Tartar General agrees that before granting 
 them permission so to do he will first consult with the Chinese Eastern Railway Company. 
 
 " (c) Should the Chinese Eastern Railway Company desire to prospect for coal or 
 mine coal outside the 30 li limit on either side of the railway, the said Chinese Eastern 
 Railway shall be accorded precedence over all other applicants, but it shall be necessary 
 for the said Company to observe the general Regulations of China governing the mining 
 of coal. 
 
 " III. — In order that the people living in the vicinity of the mines may not be deprived 
 of fuel from the mines, the villagers of the region round about the mines of the Chinese 
 Eastern Railway Company shall be permitted to purchase coal from the said Railway 
 Company, but the conditions of these various mines are not alike, and it will be necessary 
 to adhere to the prices to be fixed by the Head Company, and after the prices shall have
 
 662 CHINA TREATIES AND AGREEMENTS 
 
 been decided upon by the Head Company, they shall be published for the information of 
 all concerned and notice of the same shall be sent to the Hei-lung-chiang General Bureau of 
 Railway Affairs at Harbin for purposes of verification. 
 
 " IV. — Any hamlet in any region selected for the mining of coal, if it be in close 
 proximity to a mine and if it shall contain not more than five families, and any grave 
 plot which shall contain not more than ten graves, may be removed, provided the Railway 
 Company shall consult with the owners of said property about the removal and the price 
 to be paid as compensation. But the price to be paid must be agreed to by both parties 
 concerned, and the Hei-lung-chiang General Bureau of Railway Affairs at Harbin shall 
 use its good ofiices to secure agreement upon a fair price. 
 
 " V. — Should there be any large grave near to any mine, not less than half a Chinese li 
 shall be reserved between it and any mining operations. If there be hamlets of ten families 
 or more, such mining operations must not be carried nearer to them than one Chinese li, 
 and in the case of a large market town not nearer than two Chinese li. 
 
 "VI. — Should any injury be done to ground planted with trees, the Railway Company 
 shall pay the owner for the same at the rate per mou paid for the land on which the rail- 
 way line is built. If injury be done to fields bearing crops, the Company shall come to 
 an amicable arrangement with the proprietors for compensation and pay the same. 
 
 " VII. — Should openings be made in places which are afterwards abandoned, the 
 Railway Company must appropriate money to pay for filling them, or compensation must 
 be made by the Company for any land that is damaged, which land shall nevertheless 
 remain in the possession of its owner. 
 
 "VIII. — All timber needed for construction, and any other materials needed for use, 
 as well as all timber cut down either inside or outside of the area prospected or mined 
 shall be paid for at a price amicably agreed upon with the owner, in the case of private 
 lands, and, in the case of timber cut on Government lands, the Hei-lung-chiang royalty 
 shall be paid, amounting to 8% of the price at which such timber may be bought in the 
 market, or 8% of contractor's price for the same. 
 
 "IX. — Every thousand catties (Chinese) of coal taken out of the mines for its own 
 use by the Railway Company shall pay to the treasury of the Hei-lung-chiang Province 
 Chiang-p'ing Taels 0.08, to be paid every quarter at the end of March, June, September, 
 and December, Russian Calendar. In addition to this at the end of June each year the 
 Railway Company shall pay for each coal shaft opened an annual tax of Chiang-p'ing 
 Taels 17.64. 
 
 " X. — All unsettled questions between the Railway Company on the one hand and 
 officials or private persons on the other, and all misunderstandings that may arise during 
 the mining of coal shall be settled by the Hei-lung-chiang General Bureau of Railway 
 Affairs at Harbin. 
 
 " XI. — The foregoing Regulations have been agreed upon with exclusive reference to 
 coal mines opened by the Railway Company. Coal mines operated by Chinese, no matter 
 whether new or old, no matter in what place situated, are all to be operated in accordance 
 with the old regulations of China, and the Railway Company is in no wise concerned there- 
 with. These Regulations apply only to those places in which the mines are located, and 
 do not refer to any other mining property whatsoever. 
 
 "XII. — This agreement is written in Chinese, Russian, and French, there being two 
 copies of each, and has been signed by the Acting Tartar General of the Hei-lung-chiang, 
 Sa, and by Ta-nieh-erh (Tarnier), the agent of the Engineer-in-chief, whom he is fully 
 empowered to represent, and, after it shall have" been signed, as is necessary, by the 
 Engineer-in-chief of the Chinese Eastern Railway, Ju-ko-wei-chih (Jugovitch) and the 
 Assistant Engineer, I-ko-na-chai-wu-ssu, one copy of each text shall be given to the 
 Tartar General of Hei-lung-chiang, and one to the Engineer-in-chief. Should any dispute 
 arise as to the sense, the I'rench text shall be considered authoritative. Kuanghsii XXVII 
 Year, 12th Moon, 5th Day, i.e., Jan. 1, 1902, Russian Calendar (January 14th, 1902)."
 
 NUMBER 1907/13 : AUGUST 30, 1907 ^2 
 
 NUMBER 1907/13. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Heilungkiang 
 
 Province). 
 
 Contract for the expropriation of lands in Heilungkiang Province* — August jo, 
 
 1907. 
 
 In order to establish a definite system for the expropriation of lands in 
 Heilungkiang Province for the requirements of the Chinese Eastern Railway, we 
 the undersigned, Major General Horvath, General Manager of the Chinese East- 
 ern Railway, and Daniel, Agent of the General Manager of the Chinese Eastern 
 Railway, on the one hand, and Expectant Taotai Sung Hsiao-lien, Decorated 
 with the Peacock Feather, Delegate of Heilungkiang Province, on the other, have 
 concluded the following agreement: 
 
 Article 1. — x^fter the conclusion of this present agreement both contract- 
 ing parties must strictly observe it, and since the whole quantity of land required 
 for the railway has been included in this agreement, the Chinese Eastern Railway 
 Company will never make any further expropriations. 
 
 Article 2. — The total quantity of land expropriated in Heilungkiang 
 Province is fixed at one hundred and twenty-six thousand Chinese shang, begin- 
 ning at the Chinese frontier at the western station of Manchuria and going 
 eastward as far as the station of Zaton on the northern bank of the river Sungari 
 at the city of Harbin. This quantity shall be divided among the stations and 
 along the line in accordance with the special schedule attached to this contract, 
 and the boundaries of the expropriated land shall be indicated by ditches. When 
 paid for, the lands shall pass into the possession of the Chinese Eastern Railway 
 Company in accordance with the contract for the construction of this road. 
 
 Article 3. — The prices of lands belonging to private owners lately expro- 
 priated (with the exception of those already paid for) are fixed according to the 
 following three categories : 
 
 (a) For cultivated lands: At the stations of Zaton or Peichiangtzu, for each 
 Chinese shang, sixty rubles ; at Tueichingshan, Tsitsihar and Fuliaerhti, forty 
 rubles ; at Yientungtun and Kukuluh, thirty-three rubles. 
 
 (&) For good lands that are not cultivated: At Zaton, for each Chinese 
 shang, twenty-five rubles ; at Tueichingshan, Tsitsihar and Fuliaerhti, twenty 
 rubles ; at Yientungtun and Kukuluh, fifteen rubles ; 
 
 (c) For wet meadows : At Zaton, for each Chinese shang, thirteen rubles ; at 
 Tueichingshan, Tsitsihar, Fuliaerhti, Yientungtun, and Kukuluh, ten rubles. 
 
 Article 4. — The Chinese Eastern Railway Company agrees also to pay for 
 government land expropriated, at the rate of eight rubles for each Chinese 
 
 * Translation from the Russian text as printed in Soglashcnia, p. 33. 
 In connection with this contract see also a similar contract in regard to Kirin Province 
 (No. 1907/14, post).
 
 564 CHINA TREATIES AND AGREEMENTS 
 
 shang of land, irrespective of quality. Lands belonging to towns and villages 
 shall be paid for at the same rate. Payment shall be made upon completion of 
 the surveys. 
 
 Article 5.— When investigating the local conditions and fixing the bound- 
 aries of large and small stations in conjunction with the Chinese officials, suitable 
 tracts of land that shall be sufficient for Chinese traders, shall be set aside. These 
 tracts shall be under the jurisdiction of the Chinese administration. 
 
 Article 6. — At the five large stations of Manchuria, Hailar, Tsitsihar, 
 Anda and Tueichingshan appropriate places, situated near the station building, 
 shall be set apart for the construction of quarters for the reception of Chinese 
 officials, and lots shall also be set apart for the construction of branch offices of 
 the Tiehlu Chiaoshieh Tsung Chu at all stations on the line. The Chinese Eastern 
 Railway Company shall not pay for these lands, and they shall be under Chinese 
 jurisdiction, which however should not interfere with administrative measures or 
 public order. 
 
 Article 7. — Towns, villages, houses, market places and graves situated at 
 the expropriated stations should be passed around, in accordance with Article 
 2 of the agreement for the construction of the Chinese Eastern Railway. Such 
 sums as have already been paid for this and also for the lands which are being 
 returned, are to be deducted by the Chinese Eastern Railway Company from the 
 payments due for lands expropriated under the present agreement. If, however, 
 these lands shall be really indispensable for the railway and it would be difficult 
 to pass around them, payment should be made by the Chinese Eastern Railway 
 Company for the houses, yards, wells, trees and graves, at a price that will be 
 fair in view of the actual conditions, so that they can be removed to another 
 place and be rebuilt. 
 
 Article 8. — When choosing locations for the construction of railway bridges 
 over navigable rivers, the locations should be examined in conjunction with a 
 Chinese official in order not to interfere with navigation. In the same manner, 
 if it shall be found that there are not enough places where sand, lime, stone and 
 water can be obtained on the lands expropriated by this present agreement, and 
 also if it shall become necessary to take measures against floods, the lands 
 necessary for these purposes may be acquired only after an examination in con- 
 junction with a Chinese official, and with the approval of the Chinese authorities, 
 it being understood, moreover, that the quantity of such lands shall not be con- 
 siderable, and that they shall be used only for the purposes above set forth. 
 
 Article 9. — Trees growing on the expropriated land, whether belonging to 
 the government or to private owners, must be paid for separately. If mineral 
 deposits shall be found to exist on the expropriated area it will be necessary to 
 come to a special agreement in order to work them, and no claim can be based on 
 this agreement in case such questions shall arise. 
 
 Article 10. — The owners of buildings situated on the expropriated lands 
 may use them for the period of three years from the date that this agreement is 
 signed. If, however, the Chinese Eastern Railway Company shall find it neces- 
 sary, the said buildings must be surrendered and the money due must be paid in 
 accordance with Article 7 of this agreement.
 
 NUMBER 1907/13: AUGUST 30, 1907 665 
 
 Article 11. — Surveyors and Chinese officials should be detailed by the 
 Chinese Eastern Railway Company and by the Chinese authorities to inspect and 
 measure in shaiigs the expropriated areas, in accordance with the annexed sched- 
 ule, and to fix the boundaries of the concession, after which a plan and a list 
 of the expropriated lands shall be prepared. One copy of the plan and list shall 
 be delivered through the Chinese authorities to the governor for his information. 
 The total quantity of land, both that which has been paid for and that which has 
 not been paid for, in the various sections must be verified, and must not exceed 
 the total area fixed by this present agreement. The deeds should be compared 
 with the old documents, and they should be paid for fairly. 
 
 Article 12. — The Chinese Eastern Railway Company will make its forth- 
 coming payments for privately owned land in the presence of Chinese officials who 
 shall be sent for the purpose by the Chinese authorities, immediately upon receipt 
 of notice from the management of the railway. 
 
 The deeds and plans shall be authenticated by the seal of the Chinese 
 authorities. 
 
 Article 13. — After the conclusion of this present agreement, the agreement 
 formerly concluded by the management of the railway with Taotai Chou i\Iien 
 shall be considered as void. 
 
 Article 14. — This agreement shall be w^ritten in the Chinese and Russian 
 languages and shall be signed and sealed by both parties. One copy of this 
 agreement shall be kept in the Yamen of the Governor of Heilungkiang, and the 
 other in the general office of the railway. In case of dispute the Chinese text shall 
 be considered authoritative. 
 
 The original was signed by : 
 
 Major General Horvath, 
 General Manager of the Chinese Eastern Railway. 
 Daniel, 
 Agent of the General Manager of the 
 Chinese Eastern Railway for Relations tvitJi the Chinese Authorities. 
 
 (Signed in Chinese) 
 Expectant Taot'ai Decorated with the Peacock Feather, 
 Delegate of Heilungkiang Province. 
 Harbin, August 17, 1907 (August 30, 1907, new style) ; 22nd day of the 
 7th month of the 33rd year of the reign of Kuang Hsii. 
 
 SCHEDULE OF THE LANDS EXPROPRL\TED ON THE WESTERN LINE. 
 
 Versts. Names of Stations. Number of 
 
 Shang. 
 
 1 Manchuria Station 6.000 
 
 8 2 Abagatui Siding, No. 1 350 
 
 17 3 Kosinovo Siding, No. 2 350 
 
 29 4 Talainor Station 6.000 
 
 37 5 Mutnv Siding, No. 3 571 
 
 46 6 Argun Siding, No. 4 890 
 
 57 7 Jakang Station 1,000 
 
 67 8 Holmy Siding, No. 5 350 
 
 75 9 Bezvodny Siding, No. 6 350 
 
 85 10 Harhontu Station • • 600 
 
 97 11 Peschany Siding, No. 7 300
 
 666 CHINA TREATIES AND AGREEMENTS 
 
 Versts. Names of Stations. Number of 
 
 Shang. 
 
 Stepnoi Siding, No. 8 300 
 
 Wankung Station 600 
 
 Ravniny Siding, No. 9 350 
 
 Mergal Siding, No. 10 350 
 
 Ukunor Station ' 600 
 
 Vysoki Siding, No. 11 300 
 
 Kulakofski Siding, No. 12 300 
 
 Hailar Station 6,500 
 
 Ryzhofski Siding, No. 13 350 
 
 Zalivnoi Siding No. 14 350 
 
 Hakei Station 1,700 
 
 Mokry Siding, No. 15 350 
 
 Bozhko Siding, No. 16 300 
 
 Jaromte Station 1,000 
 
 Pesochny Siding, No. 17 300 
 
 Nizina Siding, No. 18 300 
 
 Yakoshi Station • 1,500 
 
 Jadungol Siding, No. 19 350 
 
 Nadriechny Siding, No. 20 350 
 
 Mientuho Station 6,000 
 
 Krivoi Siding, No. 21 350 
 
 Serbski Siding, No. 22 350 
 
 Unur Station 1,000 
 
 Korgo Siding, No. 24 350 
 
 Puchinny Siding, No. 25 350 
 
 Irekte Station 600 
 
 Hingan Station 600 
 
 Petlya Siding, No. 26 500 
 
 Saltanovo Siding, No. 27 350 
 
 Puhato Station 6,000 
 
 Moroz Siding, No. 28 
 
 Gorigol quarry 2,600 
 
 Debidergol Siding No. 29 
 
 Yalu Station 1,000 
 
 Tryacina Siding, No. 30 350 
 
 Lamashan Siding, No. 31 700 
 
 Barim Station 800 
 
 Plafski Siding, No. 32 350 
 
 Abnur Siding, No. 33 850 
 
 Halasu Station 1,200 
 
 Amiho Siding, No. 34 350 
 
 Semenof ski Siding, No. 35 350 
 
 Jalantun Station 6,000 
 
 Sara Siding, No. 36 600 
 
 Kulikin Siding, No. 37 350 
 
 Jenghiskhan Station 3,000 
 
 Goriely Siding, No. 38 350 
 
 Kosinho Siding, No, 39 500 
 
 Nientzushan Station, 3,000 
 
 Suhoi Siding, No. 40 350 
 
 Imahino Siding, No. 41 350 
 
 Turchiha Station 3,000 
 
 Gershevo Siding, No. 42 461 
 
 Litifangtzu Siding, No. 43 461 
 
 PRIVATE LAND. 
 
 Kukuluh Station 1,545 
 
 Fuliaerhti Siding, No. 44 1,746 
 
 Tsitsihar Station 6,500 
 
 Unuchi Siding, No. 46 461 
 
 Uchiatzu Siding, No. 47 461 
 
 Yientutun Station 2,057 
 
 Utai Siding, No. 48 461 
 
 Lieschik Siding, No. 49 •• 461 
 
 Hsiaohaotzu Station 1,543 
 
 Wungchihai Siding, No. 50 461 
 
 106 
 
 12 
 
 116 
 
 13 
 
 126 
 
 14 
 
 137 
 
 15 
 
 146 
 
 16 
 
 154 
 
 17 
 
 166 
 
 18 
 
 175 
 
 19 
 
 185 
 
 20 
 
 194 
 
 21 
 
 201 
 
 22 
 
 210 
 
 23 
 
 219 
 
 24 
 
 227 
 
 25 
 
 236 
 
 26 
 
 245 
 
 27 
 
 252 
 
 28 
 
 262 
 
 29 
 
 272 
 
 30 
 
 283 
 
 31 
 
 293 
 
 32 
 
 302 
 
 33 
 
 312 
 
 34 
 
 323 
 
 35 
 
 332 
 
 36 
 
 346 
 
 37 
 
 348 
 
 38 
 
 354 
 
 39 
 
 364 
 
 40 
 
 372 
 
 41 
 
 379 
 
 42 
 
 
 43 
 
 389 
 
 44 
 
 399 
 
 45 
 
 409 
 
 46 
 
 419 
 
 47 
 
 429 
 
 48 
 
 439 
 
 49 
 
 448 
 
 50 
 
 459 
 
 51 
 
 469 
 
 52 
 
 479 
 
 53 
 
 489 
 
 54 
 
 496 
 
 55 
 
 506 
 
 56 
 
 517 
 
 57 
 
 526 
 
 58 
 
 535 
 
 59 
 
 544 
 
 60 
 
 554 
 
 61 
 
 564 
 
 62 
 
 573 
 
 63 
 
 582 
 
 64 
 
 592 
 
 65 
 
 602 
 
 66 
 
 611 
 
 67 
 
 623 
 
 68 
 
 631 
 
 69 
 
 640 
 
 70 
 
 653 
 
 71 
 
 661 
 
 72 
 
 669 
 
 73 
 
 678 
 
 74 
 
 688 
 
 75
 
 NUMBER 1907/14: AUGUST 30, 1907 667 
 
 Versts. Names of Stations. Number of 
 
 Shang. 
 
 698 76 Bezlyudny Siding, No. 51 461 
 
 707 77 Lamatientzu Station 1,594 
 
 717 78 Solonchaki Siding, No. 52 . • 461 
 
 727 79 Saertu Station 1,544 
 
 737 80 Siding No. 53 461 
 
 748 81 Siding No. 54 461 
 
 757 82 Abta Station 6,000 
 
 767 83 Siding No. 55 421 
 
 777 84 Siding No. 56 461 
 
 787 85 Sung Station 1,539 
 
 797 86 Siding No. 57 461 
 
 807 87 Siding No. 58 771 
 
 817 88 Mongko Station 1,543 
 
 827 89 Siding No. 59 771 
 
 837 90 Siding No. 60 771 
 
 847 91 Tueichingshan Station 1.813 
 
 857 92 Siding No. 61 769 
 
 867 93 Siding No. 62 771 
 
 877 94 Zaton Station 6,800 
 
 For the line between the stations, sidings and platforms, 544 versts, at 11.25 
 
 shang per verst, the width being 35 sazhen (245 ft.) 6,098 
 
 The original was signed by : 
 
 Total 126,000* 
 
 Major General Horv.ath, 
 General Manager of the Chinese Eastern Railway. 
 
 Daniel, 
 Agent of the General Manager of the Chinese Eastern 
 Railway for Relations with the Chinese Authorities. 
 
 (Signature in Chinese) 
 Expectant Taot'ai, Decorated with the Peacock 
 Feather, Delegate of Heiltmgkiang Province. 
 
 • NUMBER 1907/14. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Kirin Province). 
 Contract for the expropriation of lands in Kirin Province.'^ — August 30, 1907. 
 
 In order to establish a definite system for the expropriation of lands in 
 Kirin Province for the requirements of the Chinese Eastern Railway, we the 
 undersigned, Major General Horvath, General Manager of the Chinese Eastern 
 Railway, and Daniel, Agent of the General Manager of the Chinese Eastern 
 Railway, on the one hand, and Expectant Taot'ai Tu Hsiao-Ying, Decorated with 
 the Peacock Feather, Delegate of Kirin Province, on the other, have concluded 
 the following agreement : 
 
 Art. 1. — After the conclusion of this present agreement both contracting 
 parties must strictly observe it forever, and since the whole quantity of land 
 
 * 120,000 shang equal 220,500 acres or 344^2 square miles. 
 t Translation from the Russian text as printed in Sogla-shenia, p. 38. 
 In connection with this contract see also a similar contract in regard to Heilungkiang" 
 Province (No. 1907/13, ante).
 
 668 CHINA TREATIES AND AGREEMENTS 
 
 required for the railway has been included in this agreement, the Chinese Eastern 
 Railway Company will never make any further expropriation. 
 
 Art. 2. — The total quantity of land expropriated along the eastern line 
 in Kirin Province is fixed at fifty-five thousand Chinese shang, starting from 
 Pogranitchnaya Station on the east and continuing westward as far as Ashiho 
 Station. This quantity shall be divided among the stations and along the line of 
 the railway in accordance with the special schedule attached to this agreement, and 
 the boundaries of the expropriated land shall be indicated by ditches. When paid 
 for, the lands shall pass into the possession of the Chinese Eastern Railway 
 Company in accordance with the contract for the construction of this road. 
 
 Art. 3. — The prices of lands belonging to private owners lately expropri- 
 ated (with the exception of those already paid for) are fixed according to the 
 following three categories : 
 
 (a) For cultivated lands : At Ashiho Station, seventy-two rubles ; at the 
 stations of Erhtsungtientzu, Hailin, Maoershan, Pogranitchnaya, Imianpo, and 
 Hungtaohotzu, forty-five rubles; at the stations of Uchimi, Shaosuifen, Shaoyeh- 
 ling, Kaolingtzu, Weishaho, Mutanchiang, Taimako, Shangshi, Mulin, Shitohotzu, 
 Mutaoshi, Machiaho, Taipingling, and Shilinho, thirty-seven ruoles, for each 
 Chinese shang. 
 
 (b) For good lands that are not cultivated; Ashiho, thirty rubles ; Erhtsung- 
 tientzu and others (six places), twenty-two rubles; Uchimi and others (fourteen 
 places), sixteen rubles 50 kopecks for each Chinese shang. 
 
 (c) For wet meadows: Ashiho, fifteen rubles; the remaining twenty places, 
 eleven rubles, for each Chinese shang. 
 
 Art. 4. — The Chinese Eastern Railway Company agrees also to pay for 
 government land expropriated, at the rate of eight rubles for each Chinese 
 shang of land, irrespective of quality. Lands belonging to towns and villages 
 shall be paid for at the same rate. Payment shall be made upon completion of 
 the surveys. 
 
 Art. 5. — When investigating the local conditions and fixing the boundaries 
 of the large and small stations in conjunction with the Chinese officials, tracts 
 of land near the stations, that shall be suitable and sufficient, in view of local 
 conditions, shall be set apart for Chinese traders. These tracts shall be under 
 the jurisdiction of the Chinese administration. 
 
 Art. 6. — At the four large stations of Ashiho, Imianpo, Hungtaohotzu 
 and Pogranitchnaya, appropriate places, situated near the station building, shall 
 be set apart for the construction of quarters for the reception of Chinese 
 officials, and lots must also be set apart for the construction of branch offices 
 of the Tiehlu Chiaoshieh Tsung Chu at all stations on the line. The Chinese 
 Eastern Railway Company shall not pay for these lands, and they shall be under 
 Chinese jurisdiction, which however should not interfere with administrative 
 measures or public order. 
 
 Art. 7. — Towns, villages, houses, market places and graves situated at the 
 expropriated stations should be passed around, in accordance with Article 2 
 of the agreement for the construction of the Chinese Eastern Railway. Such 
 sums as have already been paid for this and also for the lands which are being
 
 NUMBER 1907/14: AUGUST 30, 1907 669 
 
 returned, are to be deducted by the Chinese Eastern Railway Company from 
 the payments due for lands expropriated under the present agreement. If, 
 however, these lands shall be really indispensable for the railway and it would be 
 difficult to pass around them, payment should be made by the Chinese Eastern 
 Railway Company for the houses, yards, wells, trees and graves, at a price that 
 will be fair in view of the actual conditions, so that they can be removed to 
 another place and be rebuilt. 
 
 Art. 8. — When choosing locations for the construction of railway bridges 
 over navigable rivers, the locations should be examined in conjunction with a 
 Chinese official in order not to interfere with navigation. In the same manner, if 
 it shall be found that there are not enough places where sand, lime, stone and 
 water can be obtained on the lands expropriated by this present agreement, and 
 also if it shall become necessary to take measures against floods, the lands 
 necessary for these purposes may be acquired only after an examination in 
 conjunction with a Chinese official, and with the approval of the Chinese author- 
 ities, it being understood, moreover, that the quantity of such lands shall not be 
 considerable, and that they shall be used only for the purposes above set forth. 
 
 Art. 9. — Trees growing on the expropriated land, whether belonging to the 
 government or to private owners, must be paid for separately. If mineral de- 
 posits shall be found to exist on the expropriated area it will be necessary to 
 come to a special agreement in order to work them, and no claim can be based 
 on this agreement in case such questions shall arise. 
 
 Art. 10. — The owners of buildings situated on the expropriated lands may 
 use them for the period of three years from the date that this agreement is 
 signed. If, however, the Chinese Eastern Railway Company shall find it neces- 
 sary, the said buildings must be surrendered and the money due must be paid in 
 accordance with Article 7 of this present agreement. 
 
 Art. 11. — Surveyors and Chinese officials should be detailed by the Chinese 
 Eastern Railway Company and by the Chinese authorities to inspect and measure 
 in sJiangs the expropriated areas, in accordance with the annexed schedule, and 
 to fix the boundaries of the concession, after which a plan and a list of the ex- 
 propriated lands shall be prepared. One copy of the plan and list shall be de- 
 livered through the Chinese authorities to the governor for his information. 
 The total quantity of land, both that which has been paid for and that which 
 has not been paid for, in the various sections must be verified, and must not 
 exceed the total area fixed by this present agreement. The deeds should be com- 
 pared with the old documents, and they should be paid for fairly. 
 
 Art. 12. — The Chinese Eastern Railway Company will make its forth- 
 coming payments for privately owned land in the presence of Chinese officials 
 who shall be sent for the purpose by the Chinese authorities, immediately upon 
 receipt of notice from the management of the railway. 
 
 The deeds and plans shall be authenticated by the seal of the Chinese 
 authorities. 
 
 Art. 13. — This agreement shall be written in the Chinese and Russian 
 languages, and shall be signed and sealed by both parties. One copy of this agree- 
 ment shall be kept in the Yamen of the Governor of Kirin and the other in the
 
 670 CHINA TREATIES AND AGREEMENTS 
 
 general office of the railway. In case of dispute the Chinese text shall be con- 
 sidered authoritative. 
 
 (Signed) Major General Horvath, 
 
 General Manager of the Chinese Eastern Railway. 
 
 Daniel, 
 Agent of the General Manager of the Chinese Eastern 
 Railway for Relations with the Chinese Authorities. 
 
 (Signature in Chinese.) 
 Expectant Taot'ai, Decorated with the Peacock 
 Feather, Delegate of Kirin Province. 
 
 Harbin, August 17, 1907 (August 30, 1907, new 
 ^ style) ; 22nd day of the 7th Month of the 33rd year of 
 
 the Reign of Kuang Hsii. 
 
 [Seal of the Governor of Kirin Province.] 
 
 SCHEDULE OF THE LANDS EXPROPRIATED ON THE EASTERN LINE. 
 
 Versts. Names of Stations and Sidings. Number of 
 
 Shang. 
 
 934 1 Ashiho Station 1,000 
 
 943 Tai-wa-ko Platform, No. 132 300 
 
 953 2 Erh-tsung-tien-tzu Station 800 
 
 959 Lime Platform, No. 133 400 
 
 978 Erh-tao-ho-tzu, No. 134 600 
 
 989 4 Mao-erh-shan Station, and quarry 1,200 
 
 999 Hunghutze Siding, No. 135 400 
 
 1,010 New Siding, No. 136 400 
 
 1,018 5 U-chi-mi Station 1,100 
 
 1,028 U-chi-mi-ho Siding, No. 137 600 
 
 1,037 Ya-ku-niang Platform, No. 138 800 
 
 1,047 6 I-mian-po Station 5,600 
 
 1,056 Lukashoff Platform, No. 139 200 
 
 1,065 Samchvalovo Siding, No. 140 200 
 
 1.075 7 Wei-sha-ho Station 1,000 
 
 1,085 Kozantzevo Siding, No. 141 300 
 
 1,094 Yablonya Siding, No. 142 250 
 
 1,104 8 Shi-to-ho-tzu Station 1,500 
 
 1,108 Tu-tao-ho-tzu Siding, No. 143 100 
 
 1,115 Li-tao-ho-tzu Siding, No. 144 100 
 
 1,121 Shi-ma-ho-tzu Siding, No. 145 100 
 
 1,128 9 Kao-lingtzu Station 300 
 
 1,133 Wei-la-ho-tzu Platform, No. 146 200 
 
 1,139 Sa-la-ho-tzu Siding, No. 147 400 
 
 1,144 ]\Iiedviezhii Platform, No. 148 200 
 
 1,149 10 Hung-tao-ho-tzu Station 3,500 
 
 1,159 Shan-tao-wa-ti Siding, No. 149 500 
 
 1,170 Chi-lin-tzu Platform, No. 150 400 
 
 1.179 11 Shang-shi Station 1,000 
 
 1,189 Hsi-han Siding, No. 151 200 
 
 1,198 Ah-tu Platform, No. 152 200 
 
 1,207 12 Hailin Station 1,500 
 
 1,217 La-chu Platform, No. 153 750 
 
 1,227 13 Mu-tan-chiang Station 1,400 
 
 1.237 Platform No. 155 700 
 
 1,233 14 Yeho Station 5,500 
 
 1,248 15 Mu-tao-shi Station 600 
 
 1,254 Siding No. 156 100 
 
 1,259 Nagornii Siding, No. 157 100 
 
 1,266 Siding No. 158 200 
 
 1.272 16 Tao-ma-ko Station 800 
 
 1,277 Tieh-ling-ho Siding, No. 159 300
 
 NUMBER 1907/15 : AUGUST 30, 1907 671 
 
 1,284 Siding No. 160 200 
 
 1,290 Siding No. 161 700 
 
 1,297 17 Mu-lin Station 3,500 
 
 1,308 Ilyinski Siding, No. 162 300 
 
 1.318 Sueh-ching-tzu Siding, No. 163 200 
 
 1,327 18 Ma-chia-ho Station 900 
 
 1,332 Platform No. 164 200 
 
 1,339 Mu-mien-ho Siding, No. 165 200 
 
 1,343 La-mien-ho Platform, No. 166 ....'. 200 
 
 1,349 19 Tai-ping-ling Station 700 
 
 1.354 Tiefenbach Siding, 167 350 
 
 1,361 Lishnii Platform, No. 168 300 
 
 1,364 20 Shi-lin-ho Station •• 700 
 
 1,374 Siding No. 169 200 
 
 1.384 21 Shao-sui-fen Station 750 
 
 1,394 Pei-la-ho-tzu Siding, No. 170 200 
 
 1,400 Platform No. 171 500 
 
 1,407 22 Pogranitchnaya Station • • 5,000 
 
 1,413 Platform • • 500 
 
 For the line between the stations, sidings and platforms, at a width of 
 
 Z2 sazhen (224 feet), 10.3 shangs per verst, 300 versts 3,100 
 
 Total 55,000 1 
 
 The original was signed by : 
 
 Major General Horvath, 
 
 General Manager of the Chinese Eastern Railway. 
 Daniel, 
 
 Agent of the General Manager of the Chinese 
 Eastern Raihvay for Relations zvith the Chinese Au- 
 thorities. 
 (Signed in Chinese.) 
 Expectant Taotai, Decorated with the Peacock Feather, Delegate of Kirin Province. 
 
 NUMBER 1907/15. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Kirin Province). 
 Agreement for the Felling of Timber in Kirin Province.'^ — August 50, 1907. 
 
 Tu HsuEH-YiNG, Expectant Taotai, with Peacock's Feather, Special Delegate of 
 the Kirin province ; 
 
 Major-General Horward, manager of the Chinese Eastern Railway Company ; and 
 E. Daniel, representative of the said manager with full powers ; have agreed 
 upon the following regulations governing the cutting, within certain specified 
 sections, by the Chinese Eastern Railway Company, of the timber required 
 for the Company's use. 
 1. — The Chinese Eastern Railway Company shall be allowed to fell all kinds 
 
 of timber at three places in the Kirin province as follows : — 
 
 * Translation, from the Chinese text, as printed in Customs, vol. I, p. 260. Russian 
 text printed in Soglashcnia, p. 51. 
 
 In connection with this agreement, see also the similar agreement in regard to Heilung- 
 kiang Province, April 5, 1908 (No. 1908/6, post). 
 
 $55,000 shang equal 96,107 acres or 150 square miles.
 
 672 CHINA TREATIES AND AGREEMENTS 
 
 (a.) A section near Shih-t'ou-ho-tzu, the plan of which is hereto appended. 
 
 (b.) A section near Kao-Hng-tzu, the plan of which is hereto appended. 
 
 Those two sections comprise the former Frank's concession, measur- 
 ing 85 // in length. 
 
 (c.) A section near I-mien-po, which shall not exceed 25 li in length or 
 breadth, or 625 square li in area. The plan of this section, when pre- 
 pared, shall be annexed hereto. 
 
 2. — Prior to the commencement of felling operations, the Railway Company 
 shall notify to the Head Office for Foreign Business connected with the railway 
 the quantity and kind of timber to be felled, applying for the necessary license, in 
 which the same particulars shall be given. On payment of one-third of the 
 amount of license fees due on the quantity of timber as apphed for by the Rail- 
 way Company, the license shall be issued by the Chinese authorities, and the 
 remainder of the fees due on the actual quantity taken, as noted on the license, 
 shall be paid after all the timber has been collected. 
 
 3. — On the 1st day of the 8th month in every year (Russian calendar) new 
 licenses for timber felling shall be issued to the Railway Company to be valid for 
 one year, at the end of which the license fees due on the actual quantity of 
 timber felled during the period shall be calculated and paid. In the event of the 
 quantity of timber actually felled being less than one-third of the total quantity 
 as stated in the license, the license fees prepaid thereon shall belong to the 
 Chinese Government and shall not be refunded ; and in the event of the timber 
 felled exceeding the quantity stated in the license, the fees on the surplus shall 
 be paid in accordance with these regulations. If the Railway Company fails to 
 pay the license fees when due or infringes any of the articles of this Agreement, 
 the licenses issued shall be annulled, and the timber-cutting rights in the specified 
 sections shall be withdrawn. So long as the Railway Company pays the license 
 fees in accordance with the regulations and adheres to the articles of this Agree- 
 ment, the Chinese authorities shall renew the licenses annually, according to these 
 regulations, on the date above stated. 
 
 4. — The Railway Company shall, at its own expense, mark the boundaries 
 of the sections granted to it for timber felling. The Railway Company shall 
 not cut timber outside these boundaries, while the Chinese authorities shall not 
 allow, and shall do their utmost to prevent, the cutting of timber by others within 
 the assigned sections. 
 
 5. — The Railway Company shall leave sufficient space for thoroughfares at 
 such places as touch the railway line. 
 
 6. — The Railway Company shall make its own arrangements in connection 
 with the felling of timber in the aforesaid sections for which licenses shall have 
 been issued, and shall be at liberty to stack timber, to put up sawmills, to erect 
 dwelling-houses, and to make side roads for the transportation of timber. The 
 Railway Company shall permit Chinese soldiers to go within the boundaries for 
 the capture of brigands, and shall in no way interfere with Chinese who may be 
 hunting or gathering ginseng within the boundaries. If there be any tillable land 
 within the timber-felling sections, the Chinese authorities remain at liberty to 
 bring in emigrants to open up the land, and to this the Railway Company shall
 
 NUMBER 1907/15: AUGUST 30, 1907 673 
 
 offer no obstruction. The local inhabitants shall be permitted to cut timber 
 within the said sections for their own use, for purposes of building, and for fuel, 
 but on such occasions the resident Weiyiian shall notify the Railway Company, 
 and the section on which the cutting is to take place will be indicated, the quantity 
 of timber to be taken will be settled, and a special permit will be issued. On no 
 account shall such timber be sold to outsiders. On the grass lands within the 
 said sections the Railway Company shall be at liberty to feed their cattle and 
 to cut grass for their sheep on payment to the Chinese authorities at the rate of 
 1 copeck for every pound. 
 
 7. — For all timber cut under a license the Railway Company shall pay license 
 fees at the rate of four-tenths of a copeck for every length of 1 arshine (equal 
 to 2 feet 2 inches building measure) with a thickness of 1 vershok (equal to 
 1.375 inches building measure). This applies only to large timber measuring 16 
 inches (Russian) in diameter and 12 feet (Russian) in length. f When the 
 timber exceeds these dimensions, either of length or diameter, the charge shall 
 be half a copeck for every arshine in length and every vershok in thickness. The 
 license fees on firewood shall be one ruble for every ku-pang,X and on railway 
 sleepers 3% copecks apiece. The diameter of large timber shall be that of the 
 small end, and in this measurement a fraction exceeding six-tenths of a Russian 
 inch shall be taken as a full Russian inch, and a fraction of less than six-tenths 
 shall not be counted. In measuring the length of timber, fractions less than one- 
 fourth of a Russian foot shall not be taken into account. § The scale of license 
 fees now fixed shall hold good for five years from the date of the signature of 
 this Agreement, and shall then be reconsidered. Should the Railway Company 
 purchase timber from merchants whom the Chinese authorities shall have per- 
 mitted to fell timber, the Company shall pay license fees according to the above 
 scale on the timber so purchased at the time when it is taken over. 
 
 8. — The Chinese authorities shall send Weiyiian to reside permanently in the 
 defined areas in order to supervise the timber felling and to note the kinds, di- 
 mensions, and quantities, of which, conjointly with the Russian officials, they 
 shall keep a record to serve as a basis for the calculation of license fees. 
 
 9. — For land taken up by the Railway Company for making side tracks, stack- 
 ing timber, erecting machine buildings and dwelling-houses, etc., the rental for 
 every Chinese shang without distinction as to quality shall be 3 rubles per 
 annum in the case of Government land. In the case of land belonging to indi- 
 viduals, the consent of the owner shall be obtained and an annual rental 
 paid. 
 
 10. — As all forests are now under the care of the Chinese Government, the 
 Railway Company in cutting timber shall not contravene the forestry regula- 
 tions which the Chinese Government may issue. 
 
 11. — Under present circumstances there is required for railway purposes 
 in the Kirin province 200,000 ku-pang of firewood, 800,000 railway sleepers, and 
 200,000 pieces of large timber annually, but the Chinese authorities will consent 
 
 t The Russian text here gives 16 vershok in diameter and 12 arshine in length. 
 
 t The Russian text here gives "cubic sajen" =343 English cubic feet. 
 
 § In the Russian text the fractions are six-tenths vershok and one-quarter arshine.
 
 674 CHINA TREATIES AND AGREEMENTS 
 
 to an increase in these quantities if the future development or improvement of 
 the railway should make it necessary. 
 
 12. — If it is desired to sell any surplus of timber cut for railway purposes, 
 such timber shall pay taxes according to the established tariff. 
 
 13. — After the signature of this Agreement it shall be observed by both 
 parties, and all other agreements previously made and all licenses previously issued 
 shall be cancelled. 
 
 14. — This Agreement is done in duplicate, in Chinese and Russian, with 
 plans II annexed of the sections in which timber may be felled, and after it has 
 been signed and sealed by both parties, one copy will be kept in the yamen of the 
 Kirin Governor and one copy by the Chinese Eastern Railway Company. In 
 the event of any dispute arising as to the interpretation of this Agreement, the 
 Chinese version shall be held to be correct. 
 
 Dated at Harbin : 
 
 22nd day, 7th moon, 33rd year of Kuang Hsu: 
 17th day, 8th month, 1907 (Russian calendar). 
 
 NUMBER 1907/16. 
 
 GREAT BRITAIN AND RUSSIA. 
 Convention relating to Persia, Afghanistan, and Thibet* — August 31, 1907. 
 
 His Majesty the King of the United Kingdom of Great Britain and Ireland 
 and of the British Dominions beyond the Seas, Emperor of India, and His 
 Majesty the Emperor of All the Russias, animated by the sincere desire to 
 settle by mutual agreement different questions concerning the interests of their 
 States on the Continent of Asia, have determined to conclude Agreements 
 destined to prevent all cause of misunderstanding between Great Britain and 
 Russia in regard to the questions referred to, and have nominated for this 
 purpose their respective Plenipotentiaries, to wit : 
 
 His Majesty the King of the United Kingdom of Great Britain and Ireland 
 and of the British Dominions beyond the Seas, Emperor of India, the Right 
 Honourable Sir Arthur Nicolson, His Majesty's Ambassador Extraordinary and 
 Plenipotentiary to His Majesty the Emperor of All the Russias; 
 
 His Majesty the Emperor of All the Russias, the Master of his Court 
 Alexander Iswolsky, Minister for Foreign Affairs; 
 
 * Translation, as printed in Am. Int. Law Journal, supplement, 1907, p. 398, from 
 French text. Printed also in British Treaty Series. 1907. No. 34, and in Hertslet, p. 620 
 (omitting conventions in regard to Persia and Afghanistan). 
 
 In connection with this convention, see also the convention between Great Britain and 
 China respecting Tibet, April 27, 1906 (No. 1906/2, ante). 
 
 II Not printed.
 
 NUMBER 1907/16: AUGUST 31, 1907 675 
 
 Who, having communicated to each other their full powers, found in good 
 and due form, have agreed on the following : — 
 
 AGREEMENT CONCERNING PERSIA. 
 
 The Governments of Great Britain and Russia having mutually engaged to 
 respect the integrity and independence of Persia, and sincerely desiring the 
 preservation of order throughout that country and its peaceful development, as 
 well as the permanent establishment of equal advantages for the trade and in- 
 dustry of all other nations; 
 
 Considering that each of them has, for geographical and economic reasons, 
 a special interest in the maintenance of peace and order in certain provinces 
 of Persia adjoining, or in the neighborhood of, the Russian frontier on the one 
 hand, and the frontiers of Afghanistan and Baluchistan on the other hand ; and 
 being desirous of avoiding all cause of conflict between their respective interests 
 in the above-mentioned provinces of Persia ; 
 
 Have agreed on the following terms : — 
 
 I. — Great Britain engages not to seek for herself, and not to support in 
 favour of British subjects, or in favour of the subjects of third Powers, any 
 Concessions of a political or commercial nature — such as Concessions for rail- 
 ways, banks, telegraphs, roads, transport, insurance, &c. — beyond a line starting 
 from Kasr-i-Shirin, passing through Isfahan, Yezd, Kakhk, and ending at a 
 point on the Persian frontier at the intersection of the Russian and Afghan 
 frontiers, and not to oppose, directly or indirectly, demands for similar Conces- 
 sions in this region which are supported by the Russian Government. It is under- 
 stood that the above-mentioned places are included in the region in which Great 
 Britain engages not to seek the Concessions referred to. 
 
 II. — Russia, on her part, engages not to seek for herself and not to support, 
 in favour of Russian subjects, or in favour of the subjects of third Powers, any 
 Concessions of a political or commercial nature — such as Concessions for rail- 
 ways, banks, telegraphs, roads, transport, insurance, &c. — beyond a line going 
 from the Afghan frontier by way of Gazik, Birjand, Kerman, and ending at 
 Bunder Abbas, and not to oppose, directly or indirectly, demands for similar 
 Concessions in this region which are supported by the British Government. It 
 is understood that the above-mentioned places are included in the region in which 
 Russia engages not to seek the Concessions referred to. 
 
 III. — Russia, on her part, engages not to oppose, without previous 
 arrangement with Great Britain, the grant of any Concessions whatever to 
 British subjects in the regions of Persia situated between the lines mentioned 
 in Articles I and II. 
 
 Great Britain undertakes a similar engagement as regards the grant of 
 Concessions to Russian subjects in the same regions of Persia. 
 
 All Concessions existing at present in the regions indicated in Articles I and 
 II are maintained. 
 
 IV. — It is understood that the revenues of all the Persian customs, with the 
 exception of those of Farsistan and of the Persian Gulf, revenues guaranteeing 
 the amortization and the interest of the loans concluded by the Government of the.
 
 576 CHINA TREATIES AND AGREEMENTS 
 
 Shah with the " Banque d'Escompte et des Prets de Perse " up to the date of the 
 signature of the present Agreement, shall be devoted to the same purpose as in the 
 past. 
 
 It is equally understood that the revenues of the Persian customs of Farsistan 
 and of the Persian Gulf, as well as those of the fisheries on the Persian shore of 
 the Caspian Sea and those of the Posts and Telegraphs, shall be devoted, as in the 
 past, to the service of the loans concluded by the Government of the Shah with the 
 Imperial Bank of Persia up to the date of the signature of the present Agreement. 
 
 V. — In the event of irregularities occurring in the amortization or the pay- 
 ment of the interest of the Persian loans concluded with the " Banque d'Escompte 
 et des Prets de Perse " and with the Imperial Bank of Persia up to the date of 
 the signature of the present Agreement, and in the event of the necessity arising 
 for Russia to establish control over the sources of revenue guaranteeing the 
 regular service of the loans concluded with the first-named bank, and situated in 
 the region mentioned in Article II of the present Agreement, or for Great Britain 
 to establish control over the sources of revenue guaranteeing the regular service 
 of the loans concluded with the second-named bank, and situated in the region 
 mentioned in Article I of the present Agreement, the British and Russian Gov- 
 ernments undertake to enter beforehand into a friendly exchange of ideas with a 
 view to determine, in agreement with each other, the measures of control in 
 question and to avoid all interference which would not be in conformity with 
 the principles governing the present Agreement. 
 
 CONVENTION CONCERNING AFGHANISTAN. 
 
 The High Contracting Parties, in order to ensure perfect security on their 
 respective frontiers in Central Asia and to maintain in these regions a solid and 
 lasting peace, have concluded the following Convention : — 
 
 Article I. — His Britannic Majesty's Government declare that they have no 
 intention of changing the political status of Afghanistan. 
 
 His Britannic Majesty's Government further engage to exercise their in- 
 fluence in Afghanistan only in a pacific sense, and they will not themselves take, 
 nor encourage Afghanistan to take, any measures threatening Russia. 
 
 The Russian Government, on their part, declare that they recognize 
 Afghanistan as outside the sphere of Russian influence, and they engage that all 
 their political relations with Afghanistan shall be conducted through the inter- 
 mediary of His Britannic Majesty's Government; they further engage not to send 
 any Agents into Afghanistan. 
 
 Article II. — The Government of His Britannic Majesty having declared in 
 the Treaty signed at Kabul on the 21st March, 1905, that they recognize the 
 Agreement and the engagements concluded with the late Ameer Abdur Rahman, 
 and that they have no intention of interfering in the internal government of 
 Afghan territory, Great Britain engages neither to annex nor to occupy in con- 
 travention of that Treaty any portion of Afghanistan or to interfere in the in- 
 ternal administration of the country, provided that the Ameer fulfils the engage- 
 ments already contracted by him towards His Britannic Majesty's Government 
 under the above-mentioned Treaty.
 
 NUMBER 1907/16: AUGUST 31, 1907 677 
 
 Article III. — The Russian and Afghan authorities, specially designated for 
 the purpose on the frontier or in the frontier provinces, may establish direct 
 relations with each other for the settlement of local questions of a non-political 
 character. 
 
 Article IV. — His Britannic Majesty's Government and the Russian Gov- 
 ernment affirm their adherence to the principle of equality of commercial oppor- 
 tunity in Afghanistan, and they agree that any facilities which may have been, 
 or shall be hereafter, obtained for British and British-Indian trade and traders, 
 shall be equally enjoyed by Russian trade and traders. Should the progress of 
 trade establish the necessity for Commercial Agents, the two Governments will 
 agree as to what measures shall be taken, due regard, of course, being had to 
 the Ameer's sovereign rights. 
 
 Article V. — The present arrangements will only come into force when 
 His Britannic Majesty's Government shall have notified to the Russian Govern- 
 ment the consent of the Ameer to the terms stipulated above. 
 
 agreement concerning THIBET.f 
 
 The Governments of Great Britain and Russia recognizing the suzerain 
 rights of China in Thibet, and considering the fact that Great Britain, by reason 
 of her geographical position, has a special interest in the maintenance of the 
 status quo in the external relations of Thibet, have made the following Agree- 
 ment : — 
 
 Article I. — The two High Contracting Parties engage to respect the terri- 
 torial integrity of Thibet and to abstain from all interference in its internal 
 administration. 
 
 Article II. — In conformity with the admitted principle of the suzerainty 
 of China over Thibet, Great Britain, and Russia engage not to enter into negotia- 
 tions with Thibet except through the intermediary of the Chinese Government. 
 This engagement does not exclude the direct relations between British Commercial 
 Agents and the Thibetan authorities provided for in Article V of the Convention 
 between Great Britain and Thibet of the 7th September, 1904, and confirmed 
 
 t Simultaneously with the conclusion of this convention, an agreement was effected by 
 an exchange of notes of which the tenor is indicated by the following translation of the 
 note of the British Ambassador to the Russian Minister for Foreign Affairs : 
 
 " With reference to the Agreement regarding Thibet, signed to-day, I have the honour 
 to make the following Declaration to your Excellency : — 
 
 "His Britannic Majesty's Government think it desirable, so far as they are concerned, 
 not to allow, unless by a previous agreement with the Russian Government, for a period of 
 three years from the date of the present communication, the entry into Thibet of any 
 scientific mission whatever, on condition that a like assurance is given on the part of the 
 Imperial Russian Government. 
 
 "His Britannic Majesty's Government propose, moreover, to approach the Chinese 
 Government with a view to induce them to accept a similar obligation for a correspond- 
 ing period : the Russian Government will, as a matter of course, take similar action. 
 
 " At the expiration of the term of three years above mentioned His Britannic Majesty's 
 Government will, if necessary, consult with the Russian Government as to the desirability 
 of any ulterior measures with regard to scientific expeditions to Thibet." 
 
 This agreement was not renewed upon its expiration on August 31, 1910: notice of 
 its lapse was published on the authority of the Information Bureau in the Novoye Vremya 
 and other St. Petersburg newspapers of December 29/January 11, 1911.
 
 678 CHINA TREATIES AND AGREEMENTS 
 
 by the Convention between Great Britain and China of the 27th April, 1906 ; % 
 nor does it modify the engagements entered into by Great Britain and China in 
 Article I of the said Convention of 1906. 
 
 It is clearly understood that Buddhists, subjects of Great Britain or of 
 Russia, may enter into direct relations on strictly religious matters with the 
 Dalai Lama and the other representatives of Buddhism in Thibet; the Govern- 
 ments of Great Britain and Russia engage, so far as they are concerned, not to 
 allow those relations to infringe the stipulations of the present Agreement. 
 
 Article III. — The British and Russian Governments respectively engage 
 not to send Representatives to Lhassa. 
 
 Article IV. — The two High Contracting Parties engage neither to seek 
 nor to obtain, whether for themselves or their subjects, any Concessions for 
 railways, roads, telegraphs, and mines, or other rights in Thibet. 
 
 Article V. — The two Governments agree that no part of the revenues of 
 Thibet, whether in kind or in cash, shall be pledged or assigned to Great Britain 
 or Russia or to any of their subjects. 
 
 annex to the agreement between great BRITAIN AND RUSSIA CONCERNING 
 
 THIBET 
 
 Great Britain reaffirms the Declaration, signed by his Excellency the Viceroy 
 and Governor-General of India and appended to the ratification of the Convention 
 of the 7th September, 1904, to the effect that the occupation of the Chumbi 
 Valley by British forces shall cease after the payment of three annual instal- 
 ments of the indemnity of 2,500,000 rupees, provided that the trade marts 
 mentioned in Article II of that Convention have been effectively opened for 
 three years, and that in the meantime the Thibetan authorities have faithfully 
 complied in all respects with the terms of the said Convention of 1904. § It is 
 clearly understood that if the occupation of the Chumbi Valley by the British 
 forces has, for any reason, not been terminated at the time anticipated in the 
 above Declaration, the British and Russian Governments will enter upon a 
 friendly exchange of views on this subject. 
 
 The present Convention shall be ratified, and the ratifications exchanged at 
 St. Petersburg as soon as possible. || 
 
 In witness whereof the respective Plenipotentiaries have signed the present 
 Convention and affixed thereto their seals. 
 
 Done in duplicate at St. Petersburgh, the 18th (31st) August, 1907. 
 
 (L. S.) .A. NicoLSON. 
 
 (L. S.) ISWOLSKY. 
 
 tNo. 1906/2, ante. 
 ^ %Hertslet (p. 622) notes that the final instalment of the indemnity was paid on January 
 27, 1908, and the Chumbi Valley was evacuated on February 8, 1908. 
 II Ratifications were exchanged on September 23, 1907.
 
 NUMBER 1907/17: OCTOBER 7, 1907 679 
 
 NUMBER 1907/17. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA. 
 
 Agreement in regard to the zvorking of the telegraph lines of the Chinese Eastern 
 
 Railzvay.*— October 7, 1907. 
 
 Agreement made the 1-st day of the 9-th moon of the 33-rd year of the 
 reign of Kwang-Hsu corresponding with the 7-th day of October 1907 between the 
 Imperial Chinese Telegraph Administration (hereinafter called the Telegraph 
 Administration) of the one part and the Chinese Eastern Railway Administra- 
 tion (hereinafter called the Railway Administration) of the other part. 
 
 Whereas the forwarding or permitting others to forward public telegraph 
 messages within the Empire of China is an Imperial prerogative administered 
 by the Telegraph Administration, 
 
 and whereas the concession granted by the Imperial Chinese Government to 
 the Railway Administration permits the latter to erect and work such telegraph 
 lines as may be necessary for the working of its railway system, restricting, 
 however, the use of such telegraph lines to the special requirements of the 
 railway service, 
 
 and whereas it is considered to be in the mutual interests of the two Adminis- 
 trations to have an understanding regarding the working of the telegraph lines 
 within the sphere comprised under the concession granted to the Railway 
 Administration, 
 
 It is therefore mutually agreed upon between the parties hereto, each of 
 them agreeing for and in respect of the acts and observances in and by this agree- 
 ment made and expressed to be made obligatory upon it, as follows : 
 
 Article 1. — A. In order to facilitate the exchange of telegraphic traffic, the 
 Telegraph Administration will connect the more important railway stations with 
 its own local telegraph stations. 
 
 B. At the actual railway stations the Railway Administration undertakes to 
 accept and transmit telegraph messages from the public and will, for those mes- 
 sages destined for places on the railway, or within the Russian Empire, when 
 forwarded exclusively over the Railway and Russian Telegraph lines, charge such 
 rates as may be fixed by the Russian Government, but on all such traffic (both 
 forwarded and received) the Railway Administration will credit the Telegraph 
 Administration a terminal fee of two Mexican Dollar cents per word, it being, 
 however, understood that messages dealing exclusively with the railway service are 
 exempt from all tax, as well as messages to or from Russian telegraph stations 
 transiting the Chinese Eastern Railway telegraph system. 
 
 C. All other traffic handed in at the railway stations will be transmitted to the 
 Telegraph Administration's nearest public telegraph station, and on such traffic 
 
 * Text as printed in 5"o5'/avr/ie«ja, p. 57. , ,, ^, ,«„- .xr ,^a^ ,. xx 
 
 In connection with this agreement see also that of May 23, 1907 (No. 1907/4, ante), 
 and Note to this document, post, p. 681.
 
 680 CHINA TREATIES AND AGREEMENTS 
 
 (as well as on that under B specified traffic if handed over to the Telegraph 
 Administration) the Railway Administration will credit the Telegraph Adminis- 
 tration full further transmission less five Mexican Dollar cents per word, these 
 five cents being considered as the fee due to the Railway Administration for 
 handling this traffic. 
 
 D. The Telegraph Administration will at its various public offices accept 
 telegrams for all places on the railway and will, at its nearest telegraph station, 
 transmit such messages to the Railway Administration for further transmission 
 and credit it five Mexican Dollar cents per word for all such traffic. 
 
 Article IL — The Railway Administration undertakes under no circum- 
 stances to establish competition, by lower rates or other means, against the Tele- 
 graph Administration, except for traffic destined for those places which are 
 specified in Article I under B when forwarded exclusively over the Railway and 
 the Russian lines. 
 
 Article III. — The rules laid down in the International Telegraph Convention 
 and the Service Regulations attached thereto as to the general treatment of tele- 
 graphic messages shall be followed by the contracting parties with regard to all 
 messages handled by them. 
 
 Article IV. — Special accounts of all telegraphic traffic exchanged shall be 
 kept at the stations where such exchange takes place, these accounts to be com- 
 pared and checked daily. 
 
 All telegrams referring to the service or to the settlement of accounts shall be 
 transmitted free of charge. 
 
 The settlement of accounts shall take place at the end of each month, and 
 the resulting balance shall be paid two months after the end of the month in 
 account to the Railway Administration in Harbin or to the Telegraph Adminis- 
 tration in Shanghai. 
 
 The month shall be reckoned according to the European Calendar. 
 
 Article V. — The collection of charges at all the stations as well as the liqui- 
 dation of the mutual accounts shall be made in Mexican Dollars. 
 
 As regards outpayments to Telegraph Administrations beyond China, the 
 collecting rate shall be agreed upon between the contracting parties during the 
 month preceding each quarter on the basis of the average rate of exchange during 
 the three months preceding that during which the rate is fixed. 
 
 Article VI. — During the rebuilding or repairs of any part of the lines 
 belonging to the Telegraph Administration or when it is found necessary to inspect 
 the lines or telegraph stations near the railway, the employes, whether foreign or 
 Chinese, of the Telegraph Administration shall be entitled to a free pass (1-st, 
 2-nd, or 3-rd class as the case may be) with all trains over the section under con- 
 struction, repairs or inspection. 
 
 The free pass to be returned to the Railway Administration as soon as the 
 work is completed. 
 
 AH instruments, stores and telegraph material emanating from and destined 
 for telegraph stations belonging to the Telegraph Administration and situated 
 within the sphere of the railway shall be transported by the Railway Administra- 
 tion at three-quarters of the ordinary freight for their respective kinds, but shall
 
 NUMBER 1907/17: OCTOBER 7, 1907: NOTE 681 
 
 nevertheless be forwarded with the same despatch and care as if paying full 
 freight. 
 
 Article VII. — Neither the Telegraph Administration nor the Railway- 
 Administration will engage into their service any person who is engaged or who 
 has within three months previously been engaged on the staff of the other 
 Administration, without in each case obtaining the special consent of the latter. 
 
 Article VIII.— All telegraph lines constructed by the Russian Government 
 in the North of Manchuria outside the railway territory will, at the signing of 
 the present convention, be handed over to the Telegraph Administration at a 
 price mutually agreed upon between the two contracting parties. 
 
 Article IX. — In case that the Japanese and the Russian railway system or 
 railway telegraphs in Manchuria should be connected, it is understood that the 
 Railway Administration will only allow bona fide railway service telegrams to be 
 exchanged over the two systems. 
 
 Article X. — Should there be any discussion regarding the interpretation of 
 the sense as expressed in this agreement, the English text shall, in all cases, 
 be held as the correct one. 
 
 The present agreement shall come into force from the 1-st of November 
 1907 and will remain in force until twelve months after one of the contracting 
 parties shall have given notice of the intention to modify or to abrogate it. 
 
 This agreement shall be confirmed by the Russian Minister to Peking and 
 the Chinese Foreign Office. 
 
 In witness whereof the undersigned duly authorized to this effect have signed 
 the present agreement. 
 
 Done at Peking in the English language and in the Chinese language. Two 
 expeditions, duly compared and found to be in agreement, have been signed in 
 each of these languages on the 7-th day of the month of October 1907 correspond- 
 ing with the 1-st day of the 9-th moon of the 33-rd year of the reign of Kwang- 
 Hsu. 
 
 (Signed) J. Cheshev. (L. S.) 
 
 (Signed) Yang Wen-chun. (L. S.) 
 Read and approved October 2 (15), 1907. 
 
 (Sgd.) D. Pokotiloff. (Seal.) 
 
 Signed by the Vice-President of the Wai-wu-pu, 
 
 Liang Tun-yen. 
 (Seal of the Wai-wu-pu.) 
 
 Note. 
 
 With the text of this agreement as given in Soglashcnia is printed the following letter 
 to the Russian Minister in behalf of the Chinese Telegraph Administration: 
 
 "Peking, October 16th, 1907. 
 " His Excellency 
 
 " The Minister for Russia 
 " Peking. 
 "Sir: 
 
 " In connection with the Telegraph Convention made between the Imperial Chinese 
 Telegraph Administration and the Russian Chinese Eastern Railway Administration, which
 
 582 CHINA TREATIES AND AGREEMENTS 
 
 convention was ratified by Your Excellency and the Wai-wu-pu on the 15th of October, 1907, 
 1 hereby on behalf of the Director General of the Imperial Chinese Telegraph Admin- 
 istration beg to confirm the additional verbal arrangement made regarding the future 
 working of the two existing Harbin-Mihailo-Semenovsk telegraph wires, viz. : 
 
 "While the two wires in question are the actual property of the Imperial Chinese 
 Telegraph Administration and are under its absolute management and control, it is hereby 
 agreed that if the Railway Administration at a future date should for the sake of the 
 exchange of bona fide service telegrams, consider it necessary to lease one of the two wires, 
 the Telegraph Administration will agree to place one of these wires at the disposal of the 
 Railway Administration on conditions hereafter to be agreed upon between the two parties 
 concerned. 
 
 " I have the honor, etc. 
 
 " (Signed) F. N. Dresing, 
 
 "Foreign Adviser and Chief Superintendent 
 
 Imperial Chinese Telegraph Administration." 
 
 NUMBER 1907/18. 
 
 INTERNATIONAL AND CHINA. 
 
 Conventions and declarations of the First and Second Hague Peace Conferences, — 
 July 29, 1899, and October 18, 1907. 
 
 [The international acts concluded at the First Peace Conference at The Hague, under 
 date of July 29, 1899, and those concluded at the Second Conference, under date of October 
 18, 1907, appear not to have such a particular interest in reference to China as to warrant 
 their inclusion in the present compilation. The texts (in English translation) are to be 
 found in The Hague Conventions and Declarations of i8gg and 1907, edited by James 
 Brown Scott (Carnegie Endowment for International Peace, Division of International Law: 
 New York: Oxford University Press; 1915), and in Malloy, pp. 2016-2057, and 2220-2389. 
 
 The action taken by the Chinese Government in reference to the several acts of those 
 conferences is indicated by the following table (condensed from those given in Scott, op. 
 cit., pp. 229 and 240) : 
 
 (I) Convention I of 1899 for the Pacific Settlement of International Disputes.! 
 Signature, July 29, 1899; ratification, November 21. 1904. 
 Convention I of 1907 for the Pacific Settlement of International Disputes.f 
 Signature, October 18, 1907 ; ratification, November 27, 1909. 
 (II) Convention II of 1907 respecting the Limitation of the Employment of Force 
 for the Recovery of Contract Debts. 
 Adherence, January 15, 1910. 
 
 (III) Convention III of 1907 relative to the Opening of Hostilities. 
 
 Adherence, January 15, 1910. 
 
 (IV) Convention II of 1899 respecting the Laws and Customs of War on Land. 
 
 Adherence, June 12, 1907. 
 
 (China neither signed nor adhered to the similar convention of 1907.) 
 (V) Convention V of 1907 respecting the Rights and Duties of Neutral Powers and 
 Persons in Case of War on Land. 
 Adherence, January 15, 1910. 
 (VI) Convention VI of 1907 relating to the Status of Enemy Merchant Ships at the 
 Outbreak of Hostilities. 
 
 (China neither signed nor adhered.) 
 
 t In connection with the conventions for the pacific settlement of international disputes, 
 it is to be noted that China is a party to the following conventional acts with particular 
 Governments: With Brazil, Arbitration Convention, August 3, 1909 (No. 1909/5, post); 
 with the Netherlands, Treaty providing for obligatory arbitration, June 1, 1915 (No. 
 1915/9, post); with the United States, Arbitration Convention, October 8, 1908 (No. 
 1908/14, post), and Treaty for the advancement of the general cause of peace, Septem- 
 ber 15, 1914 (No. 1014/10, post).
 
 NUMBER 1907/19: NOVEMBER 19, 1907 
 
 683 
 
 (VII) Convention VII of 1907 relating to the Conversion of Merchant Ships into 
 War-Ships. 
 
 (China neither signed nor adhered.) 
 (VIIIj Convention VIII of 1907 relative to the Laying of Automatic Submarine Con- 
 tact Mines. 
 
 (China neither signed nor adhered.) 
 (IX) Convention IX of 1907 concerning Bombardment by Naval Forces in Time of War. 
 
 Adherence, January 15, 1910. 
 (X) Convention III of 1899 for the Adaptation to Maritime Warfare of the Prin- 
 ciples of the Geneva Convention. 
 
 Signature, July 29, 1899; ratification, November 21, 1904. 
 Convention X of 1907 for the Adaptation to Maritime Warfare of the Prin- 
 ciples of the Geneva Convention. 
 
 Signature, October 18, 1907, and ratification, November 27, 1909, under 
 reservation of Article 21. 
 (XI) Convention XI of 1907 relative to certain Restrictions with regard to the Exer- 
 cise of the Right of Capture in Naval War. 
 (China neither signed nor adhered.) 
 (XII) Convention XII of 1907 relative to the Creation of an International Prize Court. 
 (China neither signed nor adhered.) 
 
 (XIII) Convention XIII of 1907 concerning the Rights and Duties of Neutral Powers 
 
 in Naval War. 
 
 Adherence, January IS, 1910, with reservation of paragraph 2 of Article 
 14, paragraph 3 of Article 19, and Article 27. 
 
 (XIV) Declaration 1 of 1899 to prohibit the Launching of Projectiles and Explosives 
 
 from Balloons. 
 
 Signature, July 29, 1899; ratification, November 21, 1904. 
 Declaration XIV of 1907 prohibiting the Discharge of Projectiles and Explo- 
 sives from Balloons. 
 
 Signature, October 18, 1907 ; ratification, November 27, 1909. 
 (XV) Declaration 2 of 1899 concerning Asphyxiating Gases. 
 
 Signature, July 29, 1899; ratification, November 21, 1904. 
 (XVI) Declaration 3 of 1899 concerning Expanding Bullets. 
 
 Signature, July 29, 1899; ratification, November 21. 1909. 
 (XVII) Final Act of the First International Peace Conference at The Hague. 
 Signature, July 29, 1899.t. 
 Final Act of the Second International Peace Conference at The Hague, 
 Signature, October 18, 1907.t] 
 
 NUMBER 1907/19. 
 
 CHINA. 
 
 Experimental regulations for the collection of duty on native and foreign goods 
 shipped to the new ports in Manchuria* — November ip, ipo/. 
 
 I. — All foreign goods which have paid the regular import duty at Tientsin, 
 New-chwang, Antung, or Dalny, as well as all native goods which have paid the 
 coast-trade half-duty (except such as may be sent into the interior either under 
 transit pass or by paying likin, as may still be done at the discretion of the owner 
 and under the old regulations) and which are intended for transhipment to any 
 of the newly opened ports in Manchuria, will be given a special certificate 
 
 * Translation, as printed in For. Rel., 1908, p. 127, from Chinese text. 
 
 In connection with these regulations, see the additional agreement between Japan and 
 China, December 22, 1905 (No. 1905/18, ante), particularly Article 1. 
 
 t The final acts being summaries of the proceedings of the conferences, are not con- 
 ventional agreements and accordingly are not ratified.
 
 684 CHINA TREATIES AND AGREEMENTS 
 
 exempting them from the payment of further duty, and this is irrespective of how 
 such goods are to be transhipped to their destination. This special certificate 
 will be stamped in accordance with regulations, and will be good for two months 
 only. 
 
 Whenever such certificates are applied for, a signed declaration must be 
 presented showing to what port the goods are consigned, and stating that in case 
 evidence of the arrival of the goods in the port mentioned is not forthcoming with- 
 in the two months limit, the applicant will be willing to forfeit three times the 
 amount of the half-duty. In order to avoid the trouble of preparing a guarantee 
 on each occasion, however, it will be permissible to draw up a bond of a similar 
 nature which will hold for a year, and to deposit the same in the Customs-house. 
 Such bond, if presented by a foreigner, must be sealed by a consular officer, and 
 if presented by a Chinese, must be sealed by the Commissioner of Customs. If a 
 yearly bond is not furnished, then a signed declaration made for each shipment will 
 suffice. The forms for these bonds and declarations shall be determined upon by 
 the Imperial Maritime Customs. 
 
 II. — In all cases where goods are shipped to the newly opened ports under 
 special certificate, such goods must correspond exactly with the declaration. 
 
 In case of any discrepancy or of the shipment of any goods not on the 
 declaration, not only will the Customs-house where such declaration was made 
 collect a fine amounting to three times the half-duty levied upon the entire ship- 
 ment, but the goods which have been shipped to the newly opened port will there 
 be confiscated. 
 
 NUMBER 1908/1. 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT BRITAIN (Chinese Central 
 Railways, Limited) AND CHINA. 
 
 Agreement for the Imperial Chinese Government five per cent Tientsin-Pukou 
 Railway loan."^ — January i^, ipo8. 
 
 This Agreement is made at Peking on the 10th day of the 12th Moon of the 
 33rd year of Kuang Hsii, corresponding to the 13th day of January, 1908, and 
 the contracting parties are : 
 
 His Excellency Liang Tunyen, Acting Junior Vice President of the 
 Wai-wu Pu, duly authorized to act on behalf of the Imperial Government of 
 China, of the one part, and (a) the Deutsch-Asiatische Bank, Shanghai, (b) the 
 Chinese Central Railways, Limited, London, hereinafter called " The Syndicate," 
 of the other part. 
 
 Article I. — The Imperial Government of China authorizes the Syndicate to 
 issue a 5% Gold Loan for an amount of five million pounds sterling (£5,000,- 
 000.00). The loan shall be of the date on which the first series of bonds is issued 
 
 * Text as printed in Wang, p. 395. See Note to this document, post, p. 694.
 
 NUMBER 1908/1 : JANUARY 13, 1908 685 
 
 to the public and shall be called the " Imperial Chinese Government Five Percent 
 Tientsin-Pukou Railway Loan." 
 
 Article II. — The loan is designed to provide capital for the construction of 
 a government railway line from a point connecting the Imperial Railways of 
 North China at or near Tientsin through Techou and Tsinanfu to Ihsien near 
 the southern frontier of Shantung, hereinafter known as the Northern Section 
 of the Tientsin-Pukou Railway Line, and from Ihsien to a point at or near Pukou 
 (opposite Nanking on the Yangtze-kiang), hereinafter known as the Southern 
 Section of the Tientsin-Pukou Railway Line. 'I'he total length of these two 
 sections being about 1085 kilometres, equal to about 2170 Chinese Li. The survey 
 line shall be open to revision by the Director General of the Railway. 
 
 Article III. — The capital so provided shall be solely devoted to the con- 
 struction of the railway line including the purchase of land, rolling stock and 
 other equipment, and to the working of the line and to payment of interest on the 
 loan during the period of construction, which is estimated at four years from the 
 actual beginning of the works, the commencement of the works not to be delayed 
 beyond six months after this agreement has been signed, within which period the 
 Syndicate shall notify the Director General that the sum of five hundred thousand 
 pounds (£500,000.00) has been placed at his disposal, to be held in Europe 
 or remitted to China as he may direct, as a first instalment on account of the 
 proceeds of the loan. This amount of £500,000.00, or whatever portion thereof 
 is actually advanced, together with interest thereon not exceeding a charge of 
 six percent per annum, shall be deducted from the proceeds of the first sale of 
 the bonds. 
 
 Article IV.— The rate of interest for the loan shall be five per cent per 
 annum on the nominal principal and shall be paid to the bondholders half-yearly. 
 The said interest shall be calculated from the date on which the loan is issued 
 to the public and shall be paid by the Imperial Chinese Government during the 
 time of construction either from the proceeds of the loan or from other sources, 
 and afterwards, in the first place, out of the revenue of the Railway, and then 
 from such other revenues as the Chinese Government may think fit to use for the 
 purpose in half-yearly instalments according to the amounts specified in the 
 schedule attached to this agreement and fourteen days before their due dates, 
 Western Calendar, as calculated half-yearly from the date on which the loan is 
 issued to the public. 
 
 Article V. — The term of the loan shall be thirty years. Repayment of 
 principal shall commence after the expiry of ten years from the date of the loan 
 and except as provided in Article VI. hereinafter, shall be made by yearly 
 amortization to the Deutsch-Asiatische Bank and the Hongkong and Shanghai 
 Banking Corporation in half-yearly instalments out of the revenues of the line or 
 such other revenue as the Chinese Government may think fit to use for the pur- 
 pose, according to the amount specified in the schedule attached to this agreement, 
 but fourteen days before their due date. Western Calendar, as calculated half- 
 yearly, from the date on which the loan is issued to the public. 
 
 Article VI. — If at any time after the lapse of ten years from the date of 
 the loan the Imperial Chinese Government should desire to redeem the whole
 
 586 CHINA TREATIES AND AGREEMENTS 
 
 outstanding amount of the loan, or any part of it, not yet due for repayment in. 
 accordance with the schedule of repayments hereto attached, it may do so until 
 the 20th year, by payment of a premium of 2>^ per cent, on the face value of the 
 bonds (that is to say, by payment of £102. 10s. for each £100 bond) and after the 
 20th year without premium ; but in each and every case of such extra redemption, 
 the Imperial Chinese Government shall give six months notice in writing to the 
 Syndicate and such redemption shall be effected by additional drawings of bonds, 
 to take place on the date of an ordinary drawing, as provided for in the prospectus 
 of the loan. 
 
 Article VII. — The Deutsch-Asiatische Bank and the Hongkong and Shang- 
 hai Banking Corporation having been appointed by the German and British parties 
 of the Syndicate, respectively. Agents for the service of the loan, the half-yearly 
 payments due for amortisation and interest, referred to in Articles IV. and V., 
 shall be made, in accordance with the amounts of the Schedule attached to this 
 Agreement, and fourteen days before their due dates as fixed by Articles IV. 
 and v., to those Banks by the Director General of- the Railway, who shall hand 
 to said Banks in Shanghai or in Tientsin fourteen days before the said due dates, 
 in shares to be arranged by the Banks, funds in Shanghai or Tientsin sycee 
 sufficient to meet such payments in gold in Europe, exchange for which shall be 
 settled with the said Banks on the same day, the Railway Administration having, 
 however, the option of settling exchange with the two banks at any date or dates 
 within six months previous to any due date for the repayment of interest and 
 principal. These payments may, however, be made in gold, if the Imperial 
 Chinese Government should happen to have gold funds boiid fide at their disposal 
 in Europe not remitted from China for the purpose and desire so to use them. 
 
 In reimbursement of expenses connected with the payment of interest and 
 the repayment of principal of the loan, the Hongkong and Shanghai Banking 
 Corporation and the Deutsch-Asiatische Bank will receive a commission of one 
 quarter per cent, on the annual loan service. 
 
 Article VIII. — The Imperial Government. of China hereby engages that the 
 interest and principal of this loan shall duly be paid in full, and should the 
 revenue of the Railway and/or the proceeds of the loan not be sufficient to provide 
 for the due and full payment of interest and repayment of principal, the Director 
 General shall memorialize the Throne and the Imperial Government of China will 
 thereupon make arrangements to ensure that the amount of the deficiency shall 
 be met from other sources and handed over to the banks on the date upon which 
 funds are required, to complete full payment of interest and repayment of 
 principal. 
 
 Article IX. — The loan is hereby secured : 
 
 1. By likin and internal revenues of the province of Chihli to the amount of 
 1,200.000 Haikuan taels a year. 
 
 2. By likin and internal revenues of the province of Shantung to the amount 
 of 1.600,000 Haikuan taels a year, and 
 
 3. By the revenue of the Nanking likin collectorate (to the amount of 
 900.000 Haikuan taels a year) and of the Huai-an native customs (to the 
 amount of 100,000 Haikuan taels a year) in the province of Kiangsu.
 
 NUMBER 1908/1 : JANUARY 13, 1908 687 
 
 The provincial revenues as above stated are hereby declared to be free from 
 all other loans, charges or mortgages. 
 
 So long as principal and interest of the loan are regularly paid, there shall 
 be no interference with these provincial revenues ; but if the principal or interest 
 of the loan be in default at due date, then, after a reasonable period of grace, 
 likin and suitable internal revenues of the three provinces sufficient to provide 
 the amounts above stated shall forthwith be transferred to and administered by 
 the Imperial ]\Iaritime Customs, in the interest of the bondholders. And so long 
 as this loan or any part thereof shall remain unredeemed, it shall have priority 
 both as regards principal and interest over all future loans, charges and mortgages 
 charged on the above-mentioned revenues of the three provinces. No loan, charge 
 or mortgage shall be raised or created which shall take precedence of, or be on 
 equality with this loan, or which shall in any manner lessen or impair its security 
 over the revenues of the three provinces as above stated ; and any further loan, 
 charge or mortgage charged on the said revenues of the three provinces shall be 
 made subject to this loan, and it shall be so expressed in every agreement for 
 every such future loan, charge or mortgage. 
 
 It is understood and agreed that so long as this loan is unredeemed the 
 railway shall under no circumstances be mortgaged nor its receipts given as 
 security to any other party. 
 
 In the event of the Chinese Government, during the currency of this loan, 
 entering upon definite arrangements for the revision of customs tariff accompanied 
 by stipulations for the decrease or abolition of likin, it is hereby agreed, on the one 
 hand that such revision shall not be barred by the fact that this loan is secured by 
 likin and provincial revenues, and, on the other hand, that whatever likin is 
 required to provide the security of this loan shall neither be decreased nor 
 abolished except by previous arrangement with the Syndicate, and then only in so 
 far as an equivalent is substituted for it in the shape of a first charge upon the 
 increase of customs revenue consequent upon such revision. 
 
 Article X. — The Syndicate is hereby authorized to issue to the subscribers 
 to the loan, Bonds for the total amount of the loan for such amounts as may 
 appear advisable to the Syndicate. The form of the Bonds shall be settled by 
 the Syndicate in consultation with the Director General or the Chinese minis- 
 ters in London and Berlin. The Bonds shall be engraved in English or 
 Chinese and German as may be required ; they shall bear the facsimile of the 
 signature of the Director General and of his Seal of Office, in order to dispense 
 with the necessity of signing them all in person. But the Chinese ]\Iinister in 
 London or Berlin, as the case may be, shall, previous to the issue of any Bonds, 
 put his seal upon each Bond with a facsimile of his signature, as a proof that the 
 issue and sale of the bonds are duly authorized by, and binding upon, the Imperial 
 Chinese Government, and the representatives of the Syndicate in London and/or 
 Berlin shall countersign the bonds as agents for the issue of the loan. 
 
 In the event of bonds issued for this loan being lost, stolen or destroyed, the 
 Syndicate shall immediately notify the Director General and the Chinese Minister 
 in London and/or Berlin, as the case requires, who shall authorize the Syndicate 
 to insert an advertisement in the public newspapers notifying that payment of same
 
 688 CHINA TREATIES AND AGREEMENTS 
 
 has been stopped and to take such other steps as may appear advisable or neces- 
 sary according to the laws and customs of the country concerned, and should 
 such bonds not be recovered after a lapse of time to be fixed by the Syndicate, 
 the Director General or the Chinese Minister in London or Berlin, as the case may 
 be, shall seal and execute duplicate bonds for a like amount and hand them to the 
 Syndicate, by whom all expenses in connection therewith shall be defrayed. 
 
 Article XI. — All bonds and coupons and payments made and received in 
 connection with the service of this loan shall be exempt from all Chinese taxes 
 and imposts during the currency of this loan. 
 
 Article XII. — All details necessary for the prospectus and connected with 
 the payment of the interest and repayment of the principal of this loan, not 
 herein explicitly provided for, shall be left to the arrangement of the Syndicate 
 in consultation with the Chinese Ministers in London and Berlin. The Syndicate 
 is hereby authorized to issue the prospectus of the loan as soon as possible after 
 the signing of this Agreement; and the Imperial Government will instruct the 
 Chinese Ministers in London and Berlin to co-operate with the Syndicate in any 
 matters requiring conjoint action and to sign the prospectus of the loan. 
 
 Article XIII. — The loan shall be issued to the public in two or more series 
 of bonds, the first issue to be made to the amount of £3,000,000 as soon as possi- 
 ble after the signature of this agreement and not later than twelve months from 
 the date thereof. The price to the Imperial Chinese Government of the first 
 series of bonds shall be 93 per cent, of their nominal value. The second and any 
 subsequent series shall be issued in time to permit of uninterrupted continuance of 
 the work of construction, in amounts to be determined by the Director General, 
 and the price payable to the Chinese Government in respect of these series shall 
 be the actual rate of their issue to the public, less flotation charges of 5^ points 
 retainable by the Syndicate (that is to say, a charge of £S 10s. Od. for every ilOO 
 bond issued). Subscriptions will be invited by the Syndicate in Europe and in 
 China both from Chinese and Europeans on equal conditions, preference being 
 given to the application of the Chinese Government, provided such application be 
 made before the issue of the prospectus to the public. 
 
 Article XIV. — The proceeds of the loan shall be paid to the credit of the 
 Tientsin-Pukou Government Railway account with the Hongkong and Shanghai 
 Banking Corporation and the Deutsch-Asiatische Bank in China, London or 
 Berlin, as the case may be. Payments of loan proceeds into the credit of this 
 account shall be made in instalments and on dates conforming to the conditions 
 allowed to the subscribers to the loan. Interest at the rate of 4 per cent, per 
 annum shall be granted on the credit balance of the portion of this account kept 
 in London and Berlin, and interest on the credit balance of the portion kept in 
 China will be allowed at the Banks' rates for current account or fixed deposits, 
 as the case may be, to be arranged. After deduction of the funds required 
 for the service of interest and for commission on this service during the 
 time of construction, the Banks will hold the net proceeds with accrued interest 
 to the order of the Director General, who, in ordering payment of any sums 
 exceeding i20,000 shall give notice to the Banks ten days before the day on which 
 they are required. Requisitions on the loan funds will be drawn in amounts to
 
 NUMBER 1908/1 : JANUARY 13, 1908 689 
 
 suit the progress of construction of the Railway by orders on the Hongkong and 
 Shanghai Banking Corporation and the Deutsch-Asiatische Bank respectively, 
 signed by the Managing Director of the Railway, or, in his absence, by his duly 
 authorized representative, and accompanied by his certificates stating the nature 
 and cost of the work to be paid for. 
 
 Such amounts as may be required in China may at any time be trans- 
 ferred by the Managing Director, at his discretion, to Shanghai, the transfers 
 being effected through the Hongkong and Shanghai Banking Corporation and 
 the Deutsch-Asiatische Bank respectively, and the transferred funds shall remain 
 on deposit with those banks until required for railway purposes. 
 
 The accounts of the railway will be kept in Chinese and English in accordance 
 with accepted modern methods, and will be supported by all necessary vouchers. 
 During the period of construction the said accounts and vouchers will be open at 
 any time to the inspection of an Auditor, appointed and paid by the Syndicate, 
 whose duties will be confined to certifying to the Syndicate to the due expenditure 
 of the loan funds in accordance with the provisions of Article 3 of this agreement, 
 and to certifying to a monthly statement of the foreign materials purchased by 
 the railway administration under the provisions of Article 18 hereinafter. He will 
 arrange with the Railway Administration that his inspections shall take place 
 on such dates and at such intervals as will enable him to efficiently carry out his 
 duties as herein provided. The Railway Administration will publish annually 
 upon the close of its financial year, a report, in the Chinese and English languages, 
 showing the working accounts and traffic receipts of the Railway, which report 
 shall be procurable by the public on application. 
 
 Article XV. — If during the time of construction the net proceeds of the 
 present loan with accrued interest should, after deduction of the sums necessary 
 for the service of interest on the loan, not be sufficient to complete the construc- 
 tion and equipment of the railway line, the amount of deficiency shall be provided, 
 in the first place, from such Chinese funds as may be available so as to permit of 
 the uninterrupted continuance of the work of construction, any balance then 
 uncovered being supplemented by a further foreign loan for the amount required, 
 to be issued by the Syndicate. f The interest and other conditions of such supple- 
 mentary loan will be the same as in the present Agreement, and the price will be 
 determined as in the case of the second and subsequent issues of the present loan. 
 If after the completion of the line there should be a balance at credit of the rail- 
 way account, such unused balance will be transferred to the credit of the interest 
 reserve fund hereinafter mentioned in Article 21 as a provision for payments 
 for which the Imperial Chinese Government is responsible under this Agreement. 
 
 Article XVI. — If, before the publication of the prospectus for the issue of 
 the loan, any political or financial crises should take place by which the market 
 and the prices of existing Chinese Government stocks are so aflfected as to render, 
 in the opinion of the Syndicate, the successful issue of the loan impossible on the 
 terms herein named, the Syndicate shall be granted further extension of time, 
 but not beyond 18 months from the date of this Agreement, for the performance 
 of their contract. If within this time limit the first series of the loan shall not 
 
 t See the supplementary loan agreement of September 28, 1910 (No. 1910/4, post).
 
 590 CHINA TREATIES AND AGREEMENTS 
 
 have been issued, then this contract shall become null and void, and any advances 
 made by the Syndicate under the provisions of Article 3 shall be repaid by the 
 Chinese Government with accrued interest, but without any other compensation 
 or remuneration whatsoever. 
 
 Article XVII. — The construction and control of the railway will be entirely 
 vested in the Imperial Chinese Government. For the work of construction of the 
 Northern and Southern sections respectively the Imperial Chinese Government 
 will select and appoint fully qualified German and British Chief Engineers, accept- 
 able to the Syndicate. In the event of the Syndicate objecting to any proposed 
 appointment, the cause of such objection shall be definitely stated. These two 
 Chief Engineeers shall be under the orders of the Managing Director, or, in his 
 absence, his duly authorized representative, and will carry out all the wishes of the 
 Railway administration with regard to the plan and construction of the line. In 
 their general conduct they shall pay all due respect to the Director General and 
 the Managing Director, The terms of their respective agreements will be ar- 
 ranged by the Director General at his sole authority. 
 
 Whenever appointments are to be made or functions are to be defined of the 
 technical employes on the railway staff as well as in the case of their dismissal, 
 the Managing Director or, in his absence, his duly appointed representative, will 
 act in consultation with the Chief Engineer of the section concerned and, in the 
 case of disagreement, the matter will be referred to the Director General whose 
 decision shall be final. 
 
 After completion of construction the Imperial Chinese Government will 
 administer both sections as one undivided Government Railway and will appoint 
 an Engineer-in-Chief, — who during the period of the loan shall be a European, — 
 without reference to the Syndicate. 
 
 Article XVIII. — For the Northern and Southern sections of the Railway 
 respectively the Deutsch-Asiatische Bank and the Chinese Central Railways 
 Limited will act as Agents of the Railway Administration during construction 
 for the purchase of all materials, plant and goods required to be imported 
 from abroad. For all important purchases of such materials, tenders shall be 
 called for by the Managing Director; in the case of all tenders, indents and 
 orders for the importation of goods and materials from abroad, the said Agents 
 shall purchase the materials required on the terms most advantageous to the 
 Railway, and shall charge the original net cost of the same plus a commission of 
 five per cent. It is understood that no orders for materials shall be executed 
 or any expenditure incurred without due authorization by the Managing Director. 
 
 In return for payment of commission as above stated the Deutsch-Asiatische 
 Bank and the Chinese Central Railways Limited as Agents within their respective 
 sections, shall be prepared to superintend the purchase of all foreign materials 
 required for the construction and equipment of the Railway, which shall be pur- 
 chased in the open market at the lowest rate obtainable, it being understood that 
 all such materials shall be of good and satisfactory quality, and that the Railway 
 Administration shall have the right to reject on arrival in China materials which 
 do not come up to specifications. At equal rates and qualities goods of German 
 and British manufacture shall be given preference over other goods of foreign
 
 NUMBER 1908/1 : JANUARY 13, 1908 691 
 
 origin for the Northern and Southern sections respectively. The Railway Admin- 
 istration reserves the right, while paying the above stipulated commission to the 
 said Agents in respect of all purchases of foreign materials, to avail itself of the 
 services of other agents in China or abroad should it see fit to do so. Original 
 invoices and inspector's certificates are to be submitted to the Managing Director ; 
 all return commissions and rebates of every description shall be credited to the 
 Railway; and all purchases made by the Agents on behalf of the Railway shall 
 be supported by manufacturer's original invoices and inspector's certificates. 
 
 No commission shall be paid to the Agents except as above provided ; but it 
 is understood that the Railway Administration shall provide out of the Railway 
 funds for the remuneration of consulting engineeers whenever their services are 
 engaged. 
 
 With a view to the encouragement of Chinese industries, preference will be 
 given, at equal prices and qualities, over British, German or other foreign goods, 
 to Chinese materials and goods manufactured in China. No commission will be 
 paid on purchases of such materials and goods. 
 
 It is understood and agreed that after the construction of the line is completed, 
 the Deutsch-Asiatische Bank and the Chinese Central Railways Limited, within 
 their respective sections, will be given the preference for such agency business 
 during the currency of the loan for the supply of foreign materials as the Railway 
 Administration may require, on terms to be hereafter mutually agreed upon. 
 
 Article XIX. — Branch lines in connection with the Railway line mentioned 
 in this agreement that may appear profitable or necessary later on shall be built 
 by the Imperial Chinese Government with funds at their disposal from Chinese 
 sources, and if foreign capital is required preference will be given to the 
 Syndicate. 
 
 Article XX. — By the preliminary agreement under Imperial sanction a 
 participation of 20 per cent, of the net profits of the Railway had been promised to 
 the Syndicate in remuneration for their general responsibility and services. In 
 commutation of this participation in net profits the Syndicate is granted the 
 right to retain £200,000 out of the first issue of this loan, in instalments and on 
 dates based on, and in proportion to, the terms of subscription to the loan as 
 stated in the prospectus. No further payment in respect of commutation of 
 profits will be allowed on any subsequent series of the loan, or on any supple- 
 mentary loan. 
 
 Article XXI. — After payment of interest and repayment of principal of 
 the loan for any current year, the Railway Administration will deposit with the 
 Deutsch-Asiatische Bank and the Hongkong and Shanghai Banking Corporation 
 in Shanghai or Tientsin any surplus of the net revenue of the railway line for that 
 year up to the amount required to pay the following year's instalments of interest 
 on the loan; the rate of interest on the deposit being arranged with the Banks 
 from time to time with due regard to the conditions of the market. 
 
 Article XXII.— The Deutsch-Asiatische Bank and the Chinese Central 
 Railways Limited may, subject to all their obligations under this agreement, trans- 
 fer or delegate all or any of their rights, powers and discretions thereunder to 
 any German or British Company, Directors, or Agents with power of further
 
 692 
 
 CHINA TREATIES AND AGREEMENTS 
 
 transfer, and sub-delegation; such transfer, sub-transfer, delegation or sub- 
 delegation to be subject to the approval of the Director General. 
 
 Article XXIII. — This Agreement is signed under authority of an Imperial 
 Edict dated this 10th day of the 12th Moon of the 33rd year of Kuang Hsu, 
 corresponding to the 13th day of January, 1908, Western Calendar, which has 
 been officially communicated to the ministers of Great Britain and Germany in 
 Peking by the Wai-wu Pu. 
 
 Article XXIV. — Five sets of this Agreement are executed in English and 
 Chinese, three sets to be retained by the Imperial Chinese Government and two 
 by the Syndicate. 
 
 In the event of any doubt arising regarding the interpretation of the Contract 
 the English text shall rule. 
 
 Signed at Peking by the contracting parties this 10th day of the 12th Moon 
 of the 33rd year of Kuang Hsu, corresponding to the 13th day of January, 1908, 
 Western Calendar. 
 
 [Seal of Waiwupu.] Liang Tunyen. 
 
 H. CORDES, 
 
 For Deutsch-Asiatische Bank. 
 
 J. O. P. Bland, 
 For Chinese Central Railways Limited, 
 
 Their Representative. 
 
 TiENTsiN-PuKou RAILWAY LoAN. £5,000,000 AT 5%, 30 Years. 
 Schedule of payments of interest and repayments of principal. 
 
 Years. 
 
 Interest. 
 
 Principal. 
 
 Total 
 
 principal 
 
 repaid. 
 
 Principal 
 still out- 
 standing. 
 
 1 
 
 il25.000 
 125.000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,D00 
 125,000 
 125.000 
 125,000 
 125,000 
 
 
 
 £5,000,000 
 
 2... 
 
 5.000,000 
 
 3 
 
 5.000,000 
 
 4 
 
 5,000,000 
 
 5 
 
 5,000,000 
 
 6 
 
 5,000.000 
 
 7 
 
 5,000,000 
 
 8 
 
 5,000,000 
 
 9 
 
 5,000,000 
 

 
 NUMBER 1908/1 : JANUARY 13, 1908 
 
 693 
 
 Years. 
 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 29 
 30 
 
 Interest. 
 
 Principal. 
 
 125,000 
 
 125,000 
 
 125,000 
 
 125,000 
 
 118,750 
 
 118,750 
 
 112,500 
 
 112,500 
 
 106,250 
 
 106,250 
 
 100,000 
 
 100,000 
 
 93,750 
 
 93,750 
 
 87,500 
 
 87,500 
 
 81,250 
 
 81,250 
 
 75,000 
 
 75,000 
 
 68,750 
 
 68,750 
 
 62,500 
 
 62,500 
 
 56,250 
 
 56,250 
 
 50,000 
 
 50,000 
 
 43,750 
 
 43,750 
 
 37,500 
 
 37.500 
 
 31,250 
 
 31,250 
 
 25,000 
 
 25,000 
 
 18,750 
 
 18,750 
 
 12,500 
 
 12,500 
 
 6,250 
 
 6,250 
 
 il25,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 125,000 
 
 Total 
 
 principal 
 
 repaid. 
 
 £250,000 
 500,000 
 750,000 
 1,000,000 
 1,250,000 
 1,500,000 
 1,750,000 
 2,000,000 
 2,250,000 
 2,500,000 
 2,750,000 
 3,000,000 
 3,250,000 
 3.500,000 
 3,750,000 
 4,000,000 
 4.250.000 
 4,500.000 
 4,750,000 
 5,000,000 
 
 Principal 
 still out- 
 standing. 
 
 5,000,000 
 4,750,000 
 4,500,000 
 4,250,000 
 4,000,000 
 3,750,000 
 3,500,000 
 3,250,000 
 3.000,000 
 2,750,000 
 2.500,000 
 2,250,000 
 2,000,000 
 1,750,000 
 1,500,000 
 1,250,000 
 1,000,000 
 750,000 
 500,000 
 250,000 
 
 Note. — Pending the issue of the final series of this loan in terms of Article 13 of the 
 agreement, the half-yearly interest on the series actually issued shall be calculated pro rata 
 in respect to the amounts of such series on the basis of the present schedule for the total 
 amount of i5,000,000, but it shall be so arranged that the dates of payment of the second 
 and any subsequent series shall coincide with those of the first series, in such way that, 
 when all the series have been issued, the half-yearly service of principal and interest of 
 the loan may be brought into line in respect to dates of payment.
 
 694 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 RockhiU, p. 355, reproduces from China, 1900, No. 1, p. 175, the text of the following 
 preliminary agreement relating to the construction of a railway between Tientsin and 
 Chinkiang, which was signed May 18, 1899, and ratified May 24, 1899: 
 
 Preliminary Agreement for Tientsin-Chinkiang Railway, May i8, 1899. 
 
 " This Preliminary Agreement relating to the construction of railways between 
 Tien-tsin and Chinkiang is made between their Excellencies Hsu and Chang, duly 
 authorized to act on behalf of the Imperial Government of China, hereinafter called 'the 
 Imperial Directors,' of the one part; and (a) the Deutsch-Asiatische Bank; {b) the 
 Hong Kong and Shanghae Banking Corporation for themselves and on behalf of Messrs. 
 Jardine, Matheson, and Co., as Joint Agents for the British and Chinese Corporation 
 (Limited), hereinafter called 'the Syndicate,' of the other part. 
 
 " 1. — The Imperial Government of China authorizes the Syndicate to issue an Imperial 
 Government 5 per cent, gold loan for an amount of about 7,400,000/.^ this amount being 
 subject to modification later after the completion of the survey. 
 
 "2. — The loan is designed to provide the capital for the construction of Government 
 railway lines from a point at or near Tien-tsin, through Titchow and Tsinanfu to Thsien 
 [sic. Ihsien?] near the southern frontier of Shangtung, hereinafter known as the northern 
 part of the Tien-tsin-Chinkiang railway lines, and from Thsien to Kuachao (Chinkiang) 
 on the Yang-tsze Kiang, hereinafter known as the southern part of the Tien-tsin-Chinkiang 
 railway lines, the total length of these lines being about 982 kilom., equal to about 1,800 
 Chinese li. 
 
 " 3. — The capital so provided will include the funds required for rolling stock and 
 other equipment and for working the lines together with interest on the loan during the 
 period of construction, which is estimated to occupy about five years from the date of the 
 loan, but which will finally be fixed after survey. 
 
 " 4. — The rate of interest for the loan shall be 5 per cent, per annum on the nominal 
 principal and shall be paid during the time to be fixed for the construction out of the 
 proceeds of the loan, and afterwards out of the revenue of the lines named, in half-yearly 
 instalments, according to the amounts and dates of a Schedule which will be attached to 
 the Final Agreement. 
 
 " 5. — The term of the loan shall be fifty years. Repayment of principal shall com- 
 mence in the eleventh year from the date of the loan, and shall be made by a yearly sink- 
 ing fund in shares to be determined in the Final Agreement to the Deutsch-Asiatische 
 Bank, and the Hong Kong and Shanghae Banking Corporation m yearly instalments out 
 of the revenue of the lines according to the amounts and dates of the Schedule to be 
 attached to the Final Agreement. 
 
 " 6. — In the event of the Imperial Government of China wishing to redeem, after the 
 lapse of thirty years from the date of the loan, the outstanding amount of the loan, or 
 any portion of it not yet due, from funds bond fide belonging to the Chinese Government 
 or subscribed by Chinese merchants, the conditions for such redemption must first be 
 arranged with the Syndicate when the time arrives. 
 
 " 7. — The yearly payments due for amortization and the half-yearly payments due for 
 interest, except as otherwise provided in clause 4, shall be made in accordance with the 
 amounts and dates of a Schedule to be attached to the Final Agreement, in shares to be 
 determined by the Final Agreement, out of the joint net revenues of the railway lines to 
 the Deutsch-Asiatische Bank and the Hong Kong and Shanghae Banking Corporation by 
 the Boards of Commissioners hereinafter mentioned, who shall hand to those banks, at 
 their branches in Shanghae, twenty-one days before the due date named in the Schedule 
 funds in Shanghae Sycee, sufficient to meet such payment in sterling in Europe, the rate 
 of exchange for which shall be settled with those two banks on the same day on a fair 
 basis. 
 
 " In reimbursement of expenses connected with the service of interest and principal 
 of the loan, the two banks will receive a commission of one-quarter per cent, on the 
 annual loan service. 
 
 "8. — The Imperial Government of China hereby engages that the interest and principal 
 of this loan shall duly be paid in full, and should the revenues of the railways not be 
 sufficient to provide for the due and full payment of interest and repayment of principal 
 of this loan, the Imperial Directors must memorialize the Throne, and the Imperial Gov- 
 ernment of China will thereupon make arrangements to insure that the amount of defi- 
 ciency shall be met from other sources and handed over to the banks twenty-one days 
 before the due date of the funds required to complete full payment of interest and repay- 
 ment of principal. 
 
 " This clause to be open to reconsideration in the Final Agreement. 
 
 " 9. — This entire loan shall be secured by a first mortgage on the permanent way roll- 
 ing stock and entire property together with the revenue of the lines named in clause 2.
 
 NUMBER 1908/1 : JANUARY 13, 1908 : NOTE 695 
 
 No further loan, charge or mortgage, shall be charged on this security, except with the 
 written consent of the two banks, until the present loan is returned. In the event of 
 default in payment of interest or repayment of principal of this loan on due date the 
 railway lines and property so mortgaged shall be handed over to the Syndicate to be dealt 
 with in such a manner as may be legal and necessary for the full and effective protection 
 of the bondholders. When the loan is completely redeemed, clause 29 of this Agreement 
 shall take effect. 
 
 " 10. — The Syndicate will be authorized to issue to the subscribers to the loan, bonds 
 for the total amount of the loan in pounds sterling in such form, in such languages, and 
 for such amounts as shall appear advisable to the Syndicate, and these bonds shall be 
 sealed in China by the Imperial Directors and in Europe by the Minister for China, in 
 Berlin or London as evidence that the Imperial Government of China is bound thereby as 
 debtor of the loan. Provision will be made in the Final Agreement for the case of bonds 
 lost, stolen, or destroyed. 
 
 "11. — All bonds and coupons and payments made and received in connection with the 
 service of this loan shall be exempt from all Chinese taxes and imposts for ever. 
 
 " 12. — All details necessary for the prospectus and connected with the service of the 
 interest and repayment of the principal of this loan, not explicitly provided for by the 
 Final Agreement, shall be left to the arrangement of the Syndicate who will be authorized 
 to issue a prospectus of the loan as soon as possible after the signing of the Final Agree- 
 ment. 
 
 " The Imperial Government of China will instruct the Chinese Ministers in Berlin 
 and London to co-operate with the representatives of the Syndicate in any matters requir- 
 ing conjoint action, and the Chinese Alinister in Berlin will sign the prospectus of the loan 
 as required by the Rules of the Berlin Stock Exchange. 
 
 " 13. — The loan shall be floated in one or more series at the discretion of the Syndicate, 
 due regard being had to the interest of China ; but the floating of the loan shall not be 
 delayed more than necessary, subscriptions being invited by the Syndicate in Europe and 
 in China from both European and Chinese on equal conditions. 
 
 " 14. — The price of the loan shall be 90 per cent, net on the nominal principal to the 
 Chinese Government. The proceeds of the loan shall be paid to the credit of a Tien-tsin- 
 Chinkiang Imperial Government railway account with the Deutsch-Asiatische Bank, Berlin, 
 and to the credit of a Tien-tsin-Chinkiang Imperial Government railway account with the 
 Hong Kong and Shanghae Banking Corporation, London. The payment into the credit of 
 these accounts shall be made in such instalments and on such dates as the conditions 
 allowed to the subscribers to the loan shall admit. 
 
 " Interest at a rate to be arranged from time to time shall be granted on the credit 
 balance of the railway accounts. 
 
 " After deduction of the funds required for the service of interest and for commis- 
 sion on this service during the time of construction, the Deutsch-Asiatische Bank will hold 
 the proceeds with accrued interest to the order of the Board of Commissioners appointed 
 for the northern part of the Tien-tsin-Chinkiang Railway lines, and the Hong Kong and 
 Shanghae Banking Corporation will hold the proceeds with accrued interest to the order 
 of the Board of Commissioners appointed for the southern part of the Tien-tsin-Chinkiang 
 Railway line. The Commissioners, in drawing the sums necessary for the construction, 
 shall give notice to the banks fourteen days before the day on which they are required. 
 
 " 15. — If during the time of construction the whole amount of the instalments with 
 accrued interest to be paid by the Syndicate should, after deduction of the sums necessary 
 for the service of interest on the loan, not be sufficient for the construction of the railway 
 lines, the amount of deficiency shall be provided by a supplementary loan to be issued 
 by the Syndicate, the interest and other conditions of which are to be the same as in this 
 Agreement, but the price must be arranged when the time arrives. 
 
 " If after the completion of the lines there should be a balance at credit of the 
 Tien-tsin-Chinkiang Railway account, the Syndicate shall transfer such unused balance to 
 the credit of the loan service reserve fund, hereinafter mentioned as a provision for pay- 
 ments to which the Government is bound by clause 8 of this agreement. 
 
 " 16. — If before the publication of the prospectus for the issue of the loan any political 
 or financial crisis should take place in Europe or elsewhere, by which the markets and 
 the prices of existing Chinese Government stocks are so affected as to render the suc- 
 cessful issue of the loan impossible on the terms herein-named, the Syndicate shall be 
 granted such extension of time for the performance of their contract as the circumstances 
 demand, or shall have the right to withdraw from their contract with the Chinese Imperial 
 Government, which shall in that case become null and void. 
 
 " 17. — The Deutsch-Asiatische Bank on the one side, and the Hong Kong and Shanghae 
 Banking Corporation for themselves and on behalf of ^lessrs. Jardine, Matheson, and Co., 
 as joint agents for the British and Chinese Corporation (Limited), on the other side, 
 shall take the loan in shares to be agreed upon by the Syndicate, and without respon- 
 sibility for each other. 
 
 " 18. — The northern part of the railway lines shall be constructed, equipped, and
 
 596 CHINA TREATIES AND AGREEMENTS 
 
 worked on behalf of the Imperial Chinese Government by the Deutsch-Asiatische Bank, 
 and the southern part of the railway lines shall be constructed, equipped, and worked on 
 behalf of the Imperial Chinese Government by the British and Chinese Corporation 
 (Limited), under conditions as follows: — For each of these parts a Board of Commis- 
 sioners shall be appointed to superintend the construction, equipment and working of the 
 railway lines in accordance with regulations to be arranged between the Imperial Directors 
 and the Deutsch-Asiatische Bank and the British and Chinese Corporation (Limited). 
 
 '• 19. — An office shall be provided for the Imperial Directorate, and a head office shall 
 be established for each Board of Commissioners. The Board of Commissioners for the 
 northern and southern parts of the lines respectively appointed to superintend the con- 
 struction and administration shall each consist of five members : two Chinese managers 
 representing the Imperial Directors and nominated by them, and three European mem- 
 bers, namely, a representative of the Bank concerned, the Manager and the Chief Engineer, 
 to be nominated by the Deutsch-Asiatische Bank, and the British and Chinese Corporation 
 (Limited). 
 
 " In case any foreign or Chinese members of the Boards of Commissioners do not 
 work well together, it shall be open to the Imperial Directors, the Deutsch-Asiatische 
 Bank, and the British and Chinese Corporation (Limited), to mutually discuss means to 
 arrange and deal with the matter. 
 
 " The foreign and Chinese railway staff, including a T'i-tiao, shall be appointed by 
 the Boards of Commissioners, who will report the appointment to the Imperial Directors. 
 In the event of an important appointment the two Chinese members of the Boards may 
 first consult the Imperial Directors. 
 
 " The principal members of the railway staff shall be capable and experienced 
 Europeans, but Chinese with sufficient experience in engineering or traffic may also be 
 appointed. 
 
 " Foreign and Chinese members of the railway staff shall, in the event of incapacity 
 or misconduct, be dismissed by the Boards of Commissioners, who will inform the Impe- 
 rial Directors of the same. 
 
 " The salaries of the five members of each Board of Commissioners and of the foreign 
 and Chinese railway staff shall be arranged by the Deutsch-Asiatische Bank, the British 
 and Chinese Corporation (Limited), and the Imperial Directors, and paid by the head 
 office of their respective sections. 
 
 " 20. — The plans, estimates and all matters relating to survey must be submitted for 
 approbation to the Board of Commissioners. The Chief Engineer shall indicate to the 
 (ihinese Commissioners the land which it is necessary to purchase, and which must be 
 sufficient for the construction of a permanent way with double lines and dependencies, 
 and the Chinese Commissioners shall thereupon effect such purchases at a price to be 
 based on a scale to be arranged after survey. In the event of the route proposed by the 
 Chief Engineer passing through towns, villages, graveyards, or other points, where much 
 obstruction is encountered, the Chief Engineer will, together with the Board of Com- 
 missioners, consider means of diverting the proposed railway route in order to avoid 
 difficulties. 
 
 "21. — After completion of the survey and due inquiry as to the prevailing provincial 
 li-kin and customs dues, the Imperial Directors will arrange with the Deutsch-Asiatische 
 Bank and the British and Chinese Corporation (Limited), regulations for the payment 
 of li-kin and duty upon merchandize and live-stock in transit over the railway lines. 
 
 " 22. — All materials necessary for the construction and working of the lines obtained 
 either from foreign countries or from other provinces of China and the revenues derived 
 from the railway shall be exempt from duty or taxation of all kinds, and the Imperial 
 Government of China will instruct the customs and li-kin authorities accordingly. 
 
 " All material, plant and goods, shall be ordered from the Deutsch-Asiatische Bank 
 and the British and Chinese Corporation (Limited), on conditions to be arranged in the 
 Final Agreement. 
 
 " The plans, estimates and requisitions for materials shall be submitted to the Board 
 of Commissioners by the Chief Engineer for reference at their discretion to the Imperial 
 Directors, and the same shall be furnished by the Deutsch-Asiatische Bank and the British 
 and Chinese Corporation on the best possible terms. 
 
 " Due consideration will be extended to materials from the Hanyang Iron Works, if 
 available when required and of a quality satisfactory to the Chief Engineers of the 
 Syndicate. 
 
 "23.— The Deutsch-Asiatische Bank and the British and Chinese Corporation (Limited), 
 shall during the working of the lines maintain the railways, buildings, works, rolling 
 stock and dependencies in good order and condition. 
 
 " 24. — Branch lines or extensions in connection with the Tien-tsin-Chinkiang Railway 
 lines that may appear profitable or necessary later on shall be the subject of negotiations 
 between the Imperial Directors and the Syndicate. 
 
 " 25. — The tariff to be introduced by the European Manager shall be approved by the 
 Boards of Commissioners who will take into consideration the tariffs of other existing
 
 NUMBER 1908/1: JANUARY 13, 1908: NOTE 697 
 
 railway lines in China, while keeping in view the necessity for attracting traffic. The 
 European Manager may also be instructed to enter into arrangements for tariffs on 
 through traffic over connecting lines. In case of war, foreign or internal, the railway 
 lines shall be reserved in the first instance for the transport of Chinese troops, commis- 
 sariat and munitions of war under the order of Imperial Directors and at half the ordinary 
 tariff rates, and the railways shall not engage in any service injurious to China. In case 
 of famine, grain will also be transported over the lines at half the ordinary tariff rate 
 under orders of the Imperial Directors. 
 
 " 26. — All payments made and received in connection with the railway lines will be 
 subject to the control of the Boards of Commissioners, and after the line is working esti- 
 mates of receipts and expenditure shall be similarly submitted to the Boards. Regular 
 accounts shall be furnished through the Imperial Directors to the Railway and Mining 
 Bureau of the Tsung-li Yamen and the Board of Revenue, Peking. All payments made 
 must be represented by Chinese or foreign vouchers, as the case may be. 
 
 "27. — The profits from working completed sections of the railways during the time 
 of construction shall be credited to railway construction account. 
 
 " 28. — Should any traffic business be apparent later on as likely to benefit the Impe- 
 rial Government of China and increase the earning power of the railway lines, the Deutsch- 
 Asiatische Bank and the British and Chinese Corporation (Limited) shall represent the 
 same to the Imperial Directors, and request them to obtain the necessary authority to 
 arrange the business. 
 
 "29. — The Deutsch-Asiatische Bank and the British and Chinese Corporation (Limited) 
 shall work the lines on behalf of the Imperial Government of China until the present loan 
 is redeemed. As soon as the loan has been completely redeemed, this Agreement shall 
 become null and void, and the railway lines and property named in this Agreement shall 
 be handed over to the absolute disposal of the Chinese Government. 
 
 "30. — The annual net revenue is understood to be that resulting from the gross receipts 
 of the passengers and goods traffic and the income from other sources, after deducting 
 all working expenses, including maintenance of the permanent way, repairs and renova- 
 tion of machinery and rolling stock, and all expenses of administration, besides deducting 
 an amount to be determined by the Deutsch-Asiatische Bank and the British and Chinese 
 Corporation (Limited) as sufficient for accumulating a reserve fund for extraordinary 
 improvements or repairs. Of the surplus of the joint net annual revenue of the northern 
 and southern railway lines, after payment of interest and repayment of principal of the 
 loan, first, a participation of 20 per cent, will be granted to the Syndicate in remuneration 
 for their management of the construction and the working of the railway lines; secondly, 
 an amount equal to 10 per cent, of the gross earnings will be transferred to a loan service 
 reserve fund, deposited with the two Banks, and the remainder will be at the disposal of the 
 Imperial Government of China. An account of the said loan service reserve fund will be 
 rendered yearly to the Railway and Mining Bureau of the Tsung-li Yamen and to the 
 Board of Revenue, and the fund will be drawn upon only in the case of the revenue of the 
 railway lines being insufficient to meet the service of interest and principal of the loan. 
 On redemption of the loan being completed, the balance of this fund will revert to the 
 Chinese Government. 
 
 '<31._The powers and authority given and delegated to the Imperial Directors by the 
 Imperial Government of China shall, in the case of their promotion or removal, be trans- 
 ferred to their successors, and the Deutsch-Asiatische Bank, the Hong Kong and Shanghae 
 Banking Corporation, Messrs. Jardine, Matheson, and Co., and the British and Chinese 
 Corporation (Limited) may, subject to all their obligations, transfer or delegate all or any 
 of their rights, powers, and discretions to any German or English Company, Directors, or 
 agents with or without power of further transfer and sub-delegation. 
 
 "32. — Differences arising between the Imperial Directors and the Syndicate will be 
 taken up and decided with equity and justice by the Tsung-li Yamen on the one side, and 
 the Minister for Germany and the Minister for Great Britain in China on the other side. 
 
 "33.— As soon as possible after the signature of this Agreement the Engineers of the 
 Syndicate will be authorized by the Imperial Chinese Government to survey and report upon 
 the proposed railway lines, when, subject to such report being satisfactory to the Syndicate, 
 this Preliminary Agreement will be ratified by the Syndicate and replaced by a Fmal Agree- 
 ment containing all necessary details. Modifications in the conditions of this Prelimmary 
 Agreement may be made subject to the consent of both parties. 
 
 "34 —The provision^ of this Prcliminarv Agreement shall, immediately after signature. 
 be ratified by an Imperial Edict, which shall be communicated by the Tsung-li Yamen to 
 the Ministers for Germany and Great Britain in Peking. 
 
 "35 —Five sets of this Agreement are executed in English and Chinese, one set to be 
 retained by the Tsung-li Yamen, one by the Railway and Mining Bureau, and one by each 
 
 Contracting Party. ,. , . • r .. /- ^ *. 4.u^ 
 
 " In the event of any doubt arising regarding the interpretation of the Contract, the 
 
 English text shall rule."
 
 698 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1908/2. 
 
 GREAT BRITAIN (Pekin Syndicate, Ltd.) AND CHINA (Shansi Province). 
 
 Agreement for the redemption of the syndicate's mining rights «'« the Province 
 
 of Shansi * — January 21, 1908. 
 
 In 1898 the Shansi Bureau of Trade and the Pekin Syndicate, Limited, agreed 
 upon twenty regulations for opening mines, working iron, and transporting mine 
 products of all kinds in the province of Shansi, Subsequently in 1905 a supple- 
 mentary covenant in four articles was entered into by H. E. Sheng, Director 
 General of Railways, and the Pekin Syndicate. f 
 
 Difftculties having arisen as to the fulfilment of these covenants and H. E. 
 Ting Pao-chuan, Provincial judge of Shansi Province, having been summoned by 
 imperial command to come to Peking and negotiate for a settlement of all ques- 
 tions connected therewith, now, it has been mutually agreed as follows : 
 
 1. — The Shansi Bureau of Trade has now made to the Pekin Syndicate a 
 proposal to redeem these principal and supplementary convenants and the Pekin 
 Syndicate, after discussion, having recognized the earnest desire of the Shansi 
 people to manage their own mining affairs, has consented in the interest of 
 public peace, and international comity, after full consideration of all the circum- 
 stances, to allow the province of Shansi to redeem the aforesaid convenants for 
 mining, working of iron and transporting of minerals, in order that the province 
 itself may carry out the work detailed therein. 
 
 2. — The Shansi Bureau of Trade undertakes to pay to the Pekin Syndicate 
 in full on the due dates the amount agreed upon for redemption of the aforesaid 
 covenants, namely : Hong-Ping-Hua-Pao taels two millions seven hundred and 
 fifty thousand (H-P-H-P taels 2, 750,000). 
 
 3. — The sum mentioned in the foregoing article is to be paid by the Province 
 of Shansi and accepted by the Pekin Syndicate as full indemnity for all claims, 
 losses, and damages of whatsoever kind on the part of the syndicate in connection 
 with the aforesaid covenants. When this amount has all been paid, money spent 
 by the Pekin Syndicate in enterprises in other provinces is no concern of the 
 Province of Shansi. 
 
 4 — It is agreed that, of the redemption amount mentioned above, one-half 
 namely Hong-Ping-Hua-Pao taels one million three hundred and seventy-five 
 thousand (H-P-H-P taels 1,375,000) shall be paid in cash on the 21st day of 
 February 1908 and that the balance shall be divided into three equal instalments, 
 each to be paid on the 1st day of the 4th Chinese month of each immediately 
 succeeding year commencing with 1909, namely on the 19th day of May 1909 
 the first instalment of Hong-Ping-Hua-Pao taels four hundred and fifty-eight 
 
 *In reference to the syndicate's rights in the Province of Honan, see the regu- 
 lations of June 21, 1898 (No. 1898/12, ante), and agreement of May 7, 1915 (No. 
 1915/6, post). As to the syndicate's rights in the Taokow-Chinghua Railway, see the 
 agreements of July 3, 1905 (No. 1905/5, ante). 
 
 t See Note to this document, post, p. 700.
 
 NUMBER 1908/2: JANUARY 21, 1908 699 
 
 thousand three hundred and thirty-three (H-P-H-P taels 458,333) ; on the 
 9th day of May 1910 the second instahnent of Hong-Ping-Hua-Pao taels four 
 hundred and fifty-eight thousand three hundred and thirty-three (H-P-H-P 
 taels 458,333) ; and on the 29th April 1911 the third instalment of Hong-Ping- 
 Hua-Pao taels four hundred and fifty-eight thousand three hundred and thirty- 
 four (H-P-H-P taels 458,334). 
 
 5. — The redemption amount is to be paid in the Hong-Ping-Hua-Pao taels 
 without any deduction of discount whatsoever. The responsibility for remittance 
 charges between Shansi and Pekin together with the interest on money borrowed 
 in advance for this purpose shall be borne by the Province of Shansi. 
 
 6. — This case originated in a request of the Shansi Bureau of Trade which 
 was granted by the Governor of Shansi and afterwards authorized by the 
 Throne on a memorial from the Tsung-li Yamen. Now, since the Province of 
 Shansi is providing funds to redeem and cancel the covenants, the Wai-wu-pu 
 should be moved to instruct the Governor of Shansi to see to it that the money 
 is paid by the Bureau of Trade on the due dates not permitting any excuse. 
 
 7. — The Province of Shansi having recovered control of its mining affairs 
 for its own working and the Pekin Syndicate having surrendered all its rights 
 under the principal and supplementary agreements for the opening of mines, 
 working of iron and transport of minerals, the Province of Shansi has no 
 intention whatsoever of raising a foreign loan, but seeing that the Pekin Syndi- 
 cate has hereby made a complete surrender of all its privileges if by any possible 
 chance the Province of Shansi shall hereafter desire to raise a foreign loan in 
 connection with mines, working of iron, or transporting of minerals, the Province 
 of Shansi shall notify the Pekin Syndicate and if the Pekin Syndicate's proposals 
 are in all respects fair and moderate shall then proceed to further negotiations, 
 otherwise arrangements with others may be made for a loan and neither party 
 shall object. 
 
 8. — All that the Pekin Syndicate possesses at Ping-ting-chou in the way of 
 compounds and buildings shall be evacuated and with all machinery now there 
 shall be delivered over to the Bureau of Trade within three months of the signing 
 of this settlement. The Syndicate will surrender any and every property acquired 
 in any of the five areas mentioned in the original convenant. 
 
 9. — All claims for compensation on the part of employees of the Syndicate, 
 whether engineers or otherwise, for loss of occupation and prospects shall be 
 borne by the Syndicate. 
 
 10. — The amount for indemnity shall be raised in advance by the Bureau of 
 Trade from the people of Shansi by appropriating the whole of the funds of the 
 Shansi Province acreage tax {mu-chnan) which is a fund managed by the people 
 as a whole for the general good of the Province and should therefore be used 
 to redeem the mineral resources which are the inheritance of the people as a 
 whole. This acreage tax shall not be changed in character nor reduced so long 
 as any part of the indemnity remains unpaid to the Syndicate. Should the 
 acreage tax prove insufficient for the purpose it shall be supplemented, as required, 
 by the provincial authorities from other funds. 
 
 11. — As the original covenant in twenty articles was confirmed by the
 
 700 CHINA TREATIES AND AGREEMENTS 
 
 Tsung-li Yamen so this document of a settlement should also be confirmed 
 by the Wai-vvu-pu and recognized by the British Minister who respectively 
 guarantee its fulfilment by their respective nationals. 
 
 12.— Done in English and Chinese this 21st day of January 1908 in duplicate 
 one copy being held as evidence by each party. 
 Signed on 21st of January 1908. 
 
 By Liu Tu Ch'ing, 
 {Head of the Shansi Bureau of Trade.) 
 George Brown, 
 (General Agent Pekin Syndicate.) 
 
 Note. 
 
 The text of the supplementary covenant of 1905 is not available : the regulations of 
 May 21, 1898, are reprinted in Rockhill, p. 305, from China, 1899, No. 1, p. 112, as follows: 
 
 Regulations for Mining Purposes, etc., in Shansi, May 21, 1898. 
 
 " Regulations agreed upon by the Shansi Bureau of Trade and the Pekin Syndicate 
 for mining purposes, ironworks, and transporting mine products of all kinds in the Prov- 
 ince of Shansi. 
 
 " 1.— The Governor of Shansi having sanctioned the request of the Shansi Bureau of 
 Trade for the special right to open and work coal and iron mines throughout the districts 
 of Yu-hsien and Ping-ting-chou, and the Prefectures of Luan-fu, Tsechow-fu and Ping- 
 wang-fu and also petroleum wherever found, the several concessions granted are now 
 transferred for operation to the Pekin Syndicate for the period of sixty years. 
 
 " Mining engineers shall first be sent to find in what township and hills the mines 
 are situated and what they produce, and make maps thereof with explanations inserted 
 which shall be submitted to the Governor of Shansi, that he may see that local conditions 
 present no obstacle to the proposed works ; and he shall report thereon to the Tsung-li 
 Yamen for record, and at the same time issue a permit for the mines to be opened with- 
 out the least delay. If mining lands belong to the people, lease or purchase shall be made 
 by arrangement with the owners for a reasonable price; if it be Government land, the 
 tax to be paid on it shall be double the ordinary land tax for that locality. 
 
 " 2. — The Governor of Shansi has authorized the Bureau of Trade to negotiate a 
 foreign loan not to exceed 10,000,000 taels. Should the mining engineers employed find 
 this sum insufficient, the Bureau may borrow more only of the Pekin Syndicate. 
 
 "3. — All matters of administration, exploitation, employes, and finances shall be con- 
 trolled by the Board of Directors of the Pekin Syndicate, and the Chief of the Shansi 
 Bureau of Trade shall co-operate. 
 
 " 4. — Each mine must have, one foreign and one Chinese manager, the foreigner to 
 control the works, the Chinese to attend to all matters between natives and foreigners. 
 Accounts will be kept by the foreign system ; receipts and payments of money to be con- 
 trolled by the foreign manager and audited by the Chinese manager. At all mines Chinese 
 should be employed as much as possible. All salaries to be paid by the Syndicate. 
 
 "5. — When prospecting for mines, if there be any boring or sinking of pits to examine 
 mineral deposits, an arrangement should first be made with the land-owner to compensate 
 him for any crops injured. If any mine be opened on private land, an arrangement must 
 be made with co-operation of the local officials to lease or buy the land for a price fair 
 to both parties as a measure of justice. Whenever land leased or bought for mines con- 
 tains cemeteries or mortuary shrines, some plan must be devised to avoid them : there 
 must be no excavation. After mines are opened, should there be damage to life or build- 
 ings from subsidence in the mines, the Syndicate shall make charitable compensation. 
 
 " 6. — Wherever mines are worked there shall be paid yearly to the Chinese Govern- 
 ment as producers tax {' lo-ti-shui') 5 per cent, on the cost of extracting the output of 
 the mines. From the profits shown by the yearly accounts there shall first be paid 6 per 
 cent, on the capital employed, and next 10 per cent, shall be set aside as a sinking fund 
 for yearly repayment of capital and consequent reduction of interest, payments to sinking 
 fund ceasing when the invested capital is wholly repaid ; and from the remaining net 
 profit 25 per cent, shall be paid to the Chinese Government, and the remainder shall go
 
 NUMBER 1908/2: JANUARY 21, 1908: NOTE 701 
 
 to the Syndicate for its own disposition. In future, wherever capital is used to work 
 coal or iron mines in China this rule for a 5 per cent. Government tax on the output shall 
 be enforced, so that all may be treated alike. This capital being money lent by merchants 
 for mining purposes, the Chinese Government will not in any way be responsible for losses 
 incurred in the business. 
 
 "7. — The area of the mineral districts of Yu-hsien, Ping-ting-chou, Tsechou-fu, 
 Luan-fu is very extensive, and many mines may be worked therein. But the accounts and 
 profits of each mme must be kept distinct from the others ; the gains of one mine should 
 not be made to offset the losses of another, and so cause the Government income to 
 suffer reduction. 
 
 " 8. — All machinery, materials, and supplies needed for the mines shall on importation 
 be subject to the rules in force with the Kaifung and other mining Companies, and pay 
 one custom duty and a half to the maritime customs, and shall be exempt from all inland 
 li-kin taxes. The products of the mines when exported from a seaport shall pay export 
 duty according to the Customs 1 ariff. 
 
 " 9. — The Syndicate is to control the mines for sixty years, on expiration of which 
 term all the mines of the Syndicate, whether new or old, profitable or not, shall, with all 
 plant, materials, buildings, land, railways, bridges, and all property acquired by the capital 
 of the mines, be handed over gratis to the Chinese Government, and in due time the 
 Bureau shall request the Governor of Shansi to send Deputies to take delivery. 
 
 " 10. — It is important that at each mine measures should be taken to prevent discord 
 between officials and people. For this purpose the Bureau should request the Governor 
 to appoint a Deputy, and the Syndicate should nominate one of the gentry, the salaries of 
 both to be paid by the Syndicate. 
 
 " 11. — On first opening of the mines foreigners must, of course, be employed as mining 
 engineers and foremen, but later on the Bureau and the Syndicate should arrange to select 
 for such positions any Chinese who may be proficient in mining, engineering, or managing 
 work. For subordinate positions of little responsibility Chinese should be entirely employed, 
 and Shansi natives as much as possible, so as to encourage improvement. 
 
 " 12. — The miners employed should be chiefly Shansi men, and should be paid fair 
 wages. After the mines are opened the Bureau and the Syndicate should select from 
 European and American Mining Regulations suitable ones to apply to questions of com- 
 pensation to miners for injuries while at work, to pensions for the aged after long service, 
 the limit of daily working hours, &c., and obtain for such Regulations the approval of 
 the Governor. 
 
 " 13. — In opening the mines the Syndicate shall establish a school of engineering on 
 mining in some locality convenient to the mines, and there shall be selected twenty or 
 thirty promising youths by the local officials and gentry to study in this school under 
 foreign instructors, and thus prepare for future employment on railways and in mines. 
 The expenses for this school to be met by the Syndicate. 
 
 " 14.— The 10,000,000 of silver taels to be loaned to the Bureau of Trade by the Pekin 
 Syndicate is an estimated sum. After the capital necessary for opening each mine has 
 been supplied by the Syndicate, the Syndicate will be authorized to print shares, certificates, 
 and conditions for the capital furnished, and fix the time of sale. Chinese merchants who 
 apply for shares within a fixed time shall be allowed to buy of shares for sale any number 
 they wish. 
 
 " 15. — Chinese merchants who wish to buy shares may get them from the Bureau, who 
 will procure them at current market rates : or they may themselves buy or sell the shares 
 at pleasure. If any Chinese gentry or merchants shall, within the term of sixty years, 
 acquire three-fourths of all the shares of any one mine, that mine may then be redeemed 
 from the Syndicate, and the Bureau shall report upon same, and direct that shareholder 
 to take charge of the mine. 
 
 "16. — If within the area authorized for opening mines there be mines already worked 
 by the people, such private mines shall not be appropriated, but if a proprietor be willing 
 to lease or sell his mine the Bureau and the Syndicate shall offer a reasonable price for 
 it, but no compulsion shall be used. 
 
 "17. — Whenever it may be necessary for any mine to make roads, build bridges, open 
 or deepen rivers or canals, or construct branch railways to connect with main lines or 
 with water navigation to facilitate transport of Shansi coal, iron, and all other mineral 
 products from the province, the Syndicate on reporting to the Governor of Shansi is 
 authorized to proceed with the works, using its own capital, without asking for Govern- 
 ment funds. Regulations for branch railways are to be made in due time. With reference 
 to the Chengting to Taiyuan Railway, for the construction of which the Bureau has bor- 
 rowed capital from others, the Pekin Syndicate, to avoid disputes, shall not construct any 
 railway within 100 li on each side of it. Private land required for the works authorized 
 as above shall be leased or bought according to the Rules already in force with other 
 public Companies. No encroachment of private property shall be allowed, and the local 
 authorities must be applied to for protection. 
 
 " 18. — At the end of every year a printed account of profit and loss shall bc rendered
 
 702 CHINA TREATIES AND AGREEMENTS 
 
 by each mine to the Bureau, and each mine shall appoint one Chinese and one foreign 
 auditor to examine the accounts and certify that they are correct ; and a general account 
 of profit and loss for all the mines shall be jomtly prepared and submitted to the Gov- 
 ernor, who will send copies to the Tsung-li Yamen and Board of Revenue for audit. 
 Payments due to the Government shall be reported at the same time. 
 
 " 19. — These mines being under the sovereignty of China, should China ever be at 
 war with another country, the Syndicate will obey the orders of the Chinese Government 
 prohibiting any aid to the enemy. 
 
 " 20. — These Regulations shall be made out both in Chinese and foreign text ; each 
 party to have a copy for reference. 
 
 " Signed in Peking on this 21st day of May, 1898, being the second day of the fourth 
 month of the twenty-fourth year of the Emperor Kuang Hsii. 
 
 " Seals of Mr. A. Luzzatti, General Agent of the Pekin Syndicate (Limited), and of 
 the Shansi Bureau of Trade." 
 
 NUMBER 1908/3. 
 
 GREAT BRITAIN (British & Chinese Corporation, Limited) AND CHINA. 
 
 Agreement for the Imperial Chinese Government five per cent. Shanghai-H ang- 
 chow-Ningpo Railway Loan* — March 6, 1908 . 
 
 This Agreement is made at Peking on the fourth day of the second month of 
 the thirty-fourth year of Kuang Hsu, corresponding to the sixth day of March 
 1908, and the contracting parties are : — 
 
 The Waiwupu (Board of Foreign Affairs) and 
 
 The Yuchuanpu (Board of Communications), acting under the authority of 
 an Imperial Decree, of the one part, and the British and Chinese Corporation, 
 Limited (hereinafter called "The Corporation") of the other part. 
 
 Article 1. — The Imperial Government of China authorizes the Corporation 
 to issue a five per cent gold loan for the amount of £1,500,000 sterling. The loan 
 shall be of the date on which it is issued to the public and shall be called " The 
 Imperial Chinese Government five per cent Shanghai-Hangchow-Ningpo Railway 
 Loan." 
 
 Article 2. — The loan is designed to provide capital for the construction of a 
 railway fine (hereinafter called *' the railway ") from a point connecting with the 
 Shanghai-Nanking Railway at or near Shanghai in Kiangsu to the cities of Hang- 
 chow and Ningpo in Chekiang. The railway shall follow a line from Shanghai 
 through Fengchingchen to Kahsingfii ; and thence to Hushu and Hangchow ; and 
 thence from Chiangkan to Ningpo, on which line certain construction work has 
 already been locally undertaken under authority of the Imperial Chinese Govern- 
 ment. 
 
 The survey line shall be open to revision by the Yuchuanpu. 
 
 Article 3. — The Chinese Government guarantees that the capital so pro- 
 vided shall be solely devoted to the construction of the railway including the 
 
 *Text as printed in Wang, p. 467. Printed also in "China's foreign raihvay agree- 
 ments," in supplement, November. 1909, F. E. Revieiv, vol. V, p. 127. See Note to this 
 document, post, p. 711.
 
 NUMBER 1908/3 : MARCH 6, 1908 703 
 
 purchase of rolling stock and other equipment and to the working of the line 
 during construction ; it is understood, however, that the cost of the land required 
 for the railway and the payment of interest on the Loan during construction are 
 not to be met out of Loan funds, but will be paid by the Imperial Chinese Govern- 
 ment from other sources. It is understood that the railway will be completed 
 within three years from the date of signature of this Agreement ; and that within 
 a period of six months from that date the Corporation shall notify the Yuchuanpu 
 that the sum of £100,000 has been placed at their disposal, to be held in Europe 
 or remitted to China as they may direct, as a first instalment on account of the 
 proceeds of the Loan. This amount of i 100,000, or whatever portion thereof 
 is actually advanced, together with interest thereon not exceeding a charge of 
 six per cent per annum, shall be deducted from the proceeds of the sale of the 
 bonds. 
 
 Article 4. — The rate of interest for the Loan shall be five per cent per 
 annum on the nominal principal and shall be paid to the bondholders half-yearly. 
 The said interest shall be calculated from the date on which the Loan is issued 
 to the public and shall be paid by the Imperial Chinese Government during the 
 time of construction from Chinese sources, and afterwards, in the first place 
 out of the revenues of the railway, and should these be insufficient then from the 
 surplus earnings of the Imperial Railways of North-China (excluding the section 
 of the Hsinmintun-Mukden line to the East of the Liao River) and thereafter, 
 if necessary, from such other revenues as the Chinese Government may see 
 fit to use for the purpose, in half-yearly instalments according to the amounts 
 specified in the schedule attached to this Agreement and fourteen days before 
 their due dates. Western Calendar, as calculated half-yearly from the date 
 on which the Loan is issued to the public. 
 
 Article 5. — The term of the Loan shall be thirty years. Repayment of 
 principal shall commence after the expiry of ten years from the date of the Loan, 
 and, except as provided in Article 6 hereinafter, shall be made by yearly amortisa- 
 tion to the Hongkong and Shanghai Banking Corporation in half-yearly instal- 
 ments, out of the revenues of the railway, and should these be insufficient, then 
 from the surplus earnings of the Imperial Railways of North-China (excluding 
 the section of the Hsinmintun-Mukden line to the East of the Liao River) and 
 thereafter, if necessary, from such other revenues as the Imperial Chinese 
 Government may think fit to use for the purpose, according to the amounts 
 specified in the schedule attached to this Agreement, and fourteen days before 
 their due dates, Western Calendar, as calculated half-yearly from the date on 
 which the Loan is issued to the public. 
 
 Article 6. — If at any time after the lapse of ten years from the date of 
 the Loan, the Imperial Chinese Government should desire to redeem the whole 
 outstanding amount of the Loan, or any portion of it, not yet due for repayment 
 in accordance with the schedule of repayments hereto attached, it may do so 
 until the twentieth year by payment of a premium of 2^ per cent on the face 
 value of the bonds (that is to say, by payment of £102.10/- for each £100 bond) 
 and after the twentieth year, without premium; but in each and every case 
 of such extra redemption the Imperial Chinese Government shall give six months
 
 704 CHINA TREATIES AND AGREEMENTS 
 
 notice in writing to the Corporation, and such redemption shall be effected by 
 additional drawings of bonds, to take place on the date of an ordinary drawing 
 as provided for in the prospectus of the Loan. 
 
 Article 7. — The Hongkong and Shanghai Banking Corporation having been 
 appointed by the British and Chinese Corporation, Limited, Agents for the 
 service of the Loan, the half-yearly payments due for amortization and interest, 
 referred to in Articles 4 and 5, shall be made in accordance with the amounts of 
 the schedule attached to this Agreement, and fourteen days before their due dates, 
 as fixed by Articles 4 and 5, to the Hongkong and Shanghai Banking Corporation 
 by the Yuchuanpu or its duly appointed representative, who shall hand to the 
 said Bank in Shanghai, fourteen days before the said due dates, funds in 
 Shanghai sycee sufficient to meet such payments in sterling in London, exchange 
 for which shall be settled with the Bank; the Yuchuanpu, or its duly appointed 
 representative, having, however, the option of settling exchange with the Bank 
 at any date or dates within six months previous to any due date for the repay- 
 ment of interest and principal. These payments may, however, be made in 
 Gold if the Imperial Chinese Government should happen to have Gold funds 
 " bona fide " at their disposal in Europe, not remitted from China for the pur- 
 pose, and desire so to use them. 
 
 In reimbursement of expenses connected with the payment of interest and 
 the repayment of principal of the Loan, the Hongkong and Shanghai Banking 
 Corporation will receive a commission of one quarter per cent on the annual 
 Loan service. 
 
 Article 8. — The Imperial Government of China hereby engages that the 
 interest and principal of this Loan shall duly be paid in full, and should the 
 revenues of the Railway, together with the surplus earnings of the Imperial 
 Railways of North China (excluding the section of the Hsinmintun-Mukden 
 line to the East of the Liao River) not be sufficient to provide for the due and 
 full payment of interest and repayment of principal, the Yuchuanpu shall me- 
 morialize the Throne and the Imperial Government of China will thereupon 
 make arrangements to ensure that the amount of deficiency shall be met from other 
 sources and handed over to the Bank at the date upon which funds are required 
 to complete full payment of interest and repayment of principal. 
 
 Article 9. — The Loan is hereby secured upon the surplus earnings of the 
 Imperial Railways of North China (excluding the section of the Hsinmintun- 
 Mukden line to the East of the Liao River), that is to say, that after deducting 
 from the net earnings of that railway the amounts required to meet the payments 
 of interest and repayments of principal due in terms of the Agreement of 
 10th October, 1898 (Kuang Hsu 24th year, 8th moon, 25th day) to the bond- 
 holders of the Imperial Chinese Government Loan of that year, then the payment 
 of interest and repayment of principal of the present Loan shall be a first 
 charge upon the said surplus earnings of the Imperial Railways of North China 
 (excluding the section of the Hsinmintun-Mukden line to the East of the Liao 
 River) and no deductions or payments shall be made from the earnings of the 
 said railway other than those required to meet the obligations stated in the Loan 
 Agreement of 10th October. 1898 (Kuang Hsu 24th year, 8th moon, 25th day)
 
 NUMBER 1908/3 : MARCH 6, 1908 705 
 
 until an amount sufficient to pay the next half-yearly instalment of interest and 
 principal of the present Loan shall have been placed on deposit with the Hong- 
 kong and Shanghai Banking Corporation as security for the due payment of the 
 same. 
 
 Article 10. — The Corporation is hereby authorized to issue to subscribers 
 to the Loan, bonds for the total amount of the Loan for such amounts as may 
 appear advisable to the Corporation. The form of the bonds shall be settled 
 by the Corporation in consultation with the Yuchuanpu or its duly authorized 
 representative or with the Chinese Minister in London. The bonds shall be 
 engraved in Chinese and English ; they shall bear the facsimile of the signature 
 of the Yuchuanpu's duly authorized representative and of his seal of office (in 
 order to dispense with the necessity of his signing them all in person), but the 
 Chinese Minister in London shall, previous to the issue of any bonds, put his seal 
 upon each bond with a facsimile of his signature as a proof that the issue and 
 sale of the bonds are duly authorized by, and binding upon, the Imperial Chinese 
 Government, and the representative of the Corporation in London shall counter- 
 sign the bonds as agents for the issue of the Loan. 
 
 If any of the bonds herein mentioned are lost or destroyed a reissue of any 
 thereof is to be made in the amounts respectively called for by such lost or 
 destroyed bonds, but proper proof of the loss or destruction must be given in 
 the usual form to the Corporation and the Chinese Minister in London for 
 examination and record, and the requisite guarantee is to be obtained by the 
 Corporation from the respective claimants concerned, who shall defray all 
 expenses connected with such reissue of bonds lost or destroyed and who under 
 the said guarantee shall undertake to indemnify the Imperial Chinese Government 
 and/or the Corporation for any loss sustained by reason of the issue of bonds 
 in the place of bonds lost or destroyed. 
 
 Article IL — All bonds and coupons and payments made and received in 
 connection with the service of this Loan shall be exempt from all Chinese taxes 
 and imposts during the currency of this Loan. 
 
 Article 12. — All details necessary for the prospectus and connected with 
 the payment of the interest and repayment of the principal of this Loan not 
 herein explicitly provided for shall be left to the arrangement of the Corporation 
 in consultation with the Chinese Minister in London. The Corporation is hereby 
 authorized to issue the prospectus of the Loan as soon as possible after the signing 
 of this Agreement and the Imperial Government will instruct the Chinese 
 Minister in London to co-operate with the Corporation in any matters requiring 
 conjoint action and to sign the prospectus of the Loan. 
 
 Article 13.— The Loan shall be issued to the public in one series of bonds, 
 as soon as possible after signature of this Agreement and not later than twelve 
 months from the date thereof. The price to the Imperial Chinese Government 
 shall be 93% of the nominal value of the bonds. Subscriptions will be invited 
 by the Corporation in England and in China both from Chinese and Europeans 
 on equal conditions, preference being given to the application by the Chinese 
 Government provided that such application be made before the issue of the 
 prospectus to the public.
 
 706 CHINA TREATIES AND AGREEMENTS 
 
 Article 14. — The proceeds of the Loan shall be paid to the credit of the 
 Yuchuanpu with the Hongkong and Shanghai Banking Corporation in China 
 or London as the case may be. Payments of the Loan proceeds into the credit 
 of this account shall be made in instalments and on dates conforming to the 
 conditions allowed to the subscribers to the Loan. Interest at the rate of four per 
 cent per annum shall be granted on the credit balance of the portion of this 
 account kept in London and interest on the credit balance of the portion kept 
 in China will be allowed at the Bank's rates for current account or fixed deposits, 
 as the case may be, to be arranged. 
 
 The Bank will hold the net proceeds of the Loan with accrued interest to 
 the order of the Yuchuanpu, or its duly authorized representative, who, in 
 ordering payment of any sums exceeding £20,000 shall give notice to the Bank 
 ten days before the day on which they are required. Requisitions on the Loan 
 funds will be drawn in amounts to suit the progress of construction of the Rail- 
 way by orders on the Hongkong and Shanghai Banking Corporation, signed by 
 the Yuchuanpu or its duly authorized representative, and accompanied by his 
 certificates or those of the said Board stating the nature and cost of the work to 
 be paid for. 
 
 Such amounts as may be required for expenditure in China may be trans- 
 ferred under the instructions of the Yuchuanpu at their discretion, to Shanghai, 
 the transfers being effected through the Hongkong and Shanghai Banking Cor- 
 poration, and the transferred funds shall remain on deposit with that Bank until 
 required for railway purposes. 
 
 The Yuchuanpu will cause to be published annually, upon the close of the 
 Railway's financial year, a report in the Chinese and English languages showing 
 the working accounts and traffic receipts of the Railway, which report shall be 
 procurable by the public on application. 
 
 Article 15. — If, during the time of construction the net proceeds of the 
 present Loan with accrued interest should not be sufficient to complete the con- 
 struction and equipment of the Railway line, the amount of deficiency shall be 
 provided in the first place from such Chinese funds as may be available so as to 
 permit of the uninterrupted continuance of the work of construction, any 
 balance then uncovered being supplemented by a further foreign loan for the 
 amount required, to be issued by the Corporation. The interest and other con- 
 ditions of such supplementary Loan will be the same as in the present agreement, 
 and the price payable to the Imperial Chinese Government will be the actual rate 
 of its issue to the public less flotation charges of 5}4 points retainable by the 
 Corporation, that is to say, £5. 10/- for every ilOO bond issued. 
 
 If, after completion of the line, there should remain a balance of Loan 
 funds at the credit of the Railway account, such unused balance shall be at the 
 disposal of the Yuchuanpu to be used either for the purpose of paying interest 
 on the Loan or for the equipment of the Railway, or for the construction and 
 equipment of branch lines beneficial to the Railway. 
 
 Article 16. — If, before the publication of the prospectus for the issue of 
 the Loan, any political or financial crisis should take place by which the market 
 and the prices of existing Chinese Government stocks are so affected as to render
 
 NUMBER 1908/3 : MARCH 6, 1908 707 
 
 in the opinion of the Corporation the successful issue of the Loan impossible 
 on the terms herein named, the Corporation shall be granted further extension 
 of time, but not beyond eighteen months from the date of this Agreement, for 
 the performance of their contract. If, within this time limit the Loan shall not 
 have been issued, this contract shall become null and void, and any advances 
 made by the Corporation under the provisions of Article 3 shall be repaid by 
 the Chinese Government with accrued interest, but without any other compensa- 
 tion or remuneration whatsoever. 
 
 Article 17. — The construction and control of the Railway will be entirely 
 vested in the Imperial Chinese Government. For the work of construction the 
 Yuchuanpu, or its duly appointed Managing Director, will select and appoint a 
 British Chief Engineer, who shall be a professional man of established reputa- 
 tion to be selected either in England or from the staff of one of the existing 
 Chinese Government Railways. The Chief Engineer will be under the orders 
 of the Managing Director, or, in his absence, of his duly authorized representa- 
 tive. In his general conduct he shall pay all due respect to the Managing 
 Director. The terms of the Chief Engineer's agreement will be arranged by the 
 Yuchuanpu or its duly appointed Managing Director. 
 
 Whenever appointments are to be made or functions are to be defined of 
 the technical employees on the Railway staff, as well as in the case of their 
 dismissal, the Managing Director, or in his absence, his duly appointed repre- 
 sentative, will act in consultation with the Chief Engineer and, in the case of dis- 
 agreement, the matter will be referred to the Yuchuanpu, whose decision shall be 
 final. After completion of construction the Imperial Chinese Government will 
 retain the services of an Engineer-in-Chief who during the period of the Loan 
 shall be a British subject. 
 
 Article 18. — During the construction of the Railway the Corporation will 
 act as its Agents for the purchase of all materials, plant and goods required to 
 be imported from abroad. For all important purchases of such materials, tenders 
 shall be called for by the Managing Director; in the case of all tenders, indents 
 and orders for the importation of goods and materials from abroad the said 
 Agents shall purchase the materials required on the terms most advantageous to 
 the Railway. It is understood that no orders for materials shall be execcuted 
 or any expenditure incurred without due authorization by the Managing 
 Director. 
 
 As remuneration for its services as Agents of the Railway during con- 
 struction, the Corporation shall receive the sum of £35,000, half of which shall 
 be paid when the construction work is half completed but not later than eighteen 
 (18) months from the date of this agreement, and the other half upon completion 
 of the line. This amount shall be regarded as commutation of all commissions 
 to which the Corporation and its Agents would properly be entitled and of 
 payments for all services rendered in the construction and equipment of the Rail- 
 way in respect of the present Loan; but in the event of a further Loan being 
 required under the provisions of Article 15 hereinabove, then a further payment of 
 commuted commission, proportionate to the amount of such supplementary Loan 
 and calculated at the same rate as the commutation hereinabove mentioned, shall
 
 708 CHINA TREATIES AND AGREEMENTS 
 
 be made to the Corporation as commutation of its commission for all services in 
 respect of construction. 
 
 In return for this commuted commission the Corporation as Agents shall 
 be prepared to superintend the purchase of all foreign materials required for 
 the construction and equipment of the Railway which shall be purchased in the 
 open market at the lowest rate obtainable, it being understood that all such 
 materials shall be of good and satisfactory quality. At equal rates and qualities 
 goods of British manufacture shall be given preference over other goods of 
 foreign origin. The Managing Director shall have the right, while paying the 
 above stipulated commutation of commission to the said Agents, in respect of 
 all purchases of foreign materials, to avail himself of the services of other Agents 
 in China or abroad should he see fit to do so. 
 
 Original invoices and inspectors' certificates are to be submitted to the 
 Managing Director ; all return commissions and rebates of every description shall 
 be credited to the Railway ; and all purchases made by the Agents on behalf of 
 the Railway shall be supported by manufacturers' original invoices and inspectors' 
 certificates. 
 
 No commission shall be paid to the Agents except as above provided ; but 
 it is understood that the Yuchuanpu or its duly authorized representative shall 
 provide out of Railway funds for the remuneration of Consulting Engineers 
 whenever their services are required for general assistance and advice or for the 
 inspection abroad of materials requiring supervision of technical experts. 
 
 With a view to the encouragement of Chinese industries, preference shall be 
 given, at equal prices and qualities, over British and other foreign goods, to 
 Chinese goods and materials manufactured in China. No commission will be 
 paid on purchases of such materials and goods. 
 
 It is understood and agreed that after the construction of the line is com- 
 pleted, the Corporation will be given the preference for such Agency business 
 during the currency of the Loan for the supply of foreign materials as may be 
 required for the Railway, on terms to be hereafter mutually agreed upon. 
 
 Article 19. f — Branch lines in connection with the Railway mentioned in this 
 Agreement, that may appear profitable or necessary later on, shall be built by the 
 Imperial Chinese Government with funds at their disposal from Chinese sources, 
 and if foreign capital is required, preference will be given to the Corporation. 
 
 Article 20. — By the preliminary agreement dated October 15, 1898 (Kuang 
 Hsu 24th Year, 9th Moon, 1st Day)J participation of twenty per cent of the net 
 profits of the Railway had been promised to the Corporation in remuneration 
 for their general responsibility and services. In commutation of this participation 
 in net profits, the Corporation is granted the right to retain £67,500 out of the 
 
 fit is understood that in a note dated June 21, 1918, the Wai Chiao Pu had occasion 
 to address the British Legation to the following effect : 
 
 " Regarding the claim based on the Hu-Hang-Yung (Shanghai-Hangchow-Ningpo) 
 Agreement, in the 19th Article of the said Agreement it is specifically stated that the 
 Agreement includes the construction of branch roads. The Wen-Hang (Wenchow- 
 Hangchow) Railway is a main line of the Chinese system, in length 400 to 500 //, and 
 cannot be considered a branch road of the Hu-Hang-Yung line. Since this road cannot 
 be considered a branch of the Hu-Hang-Yung Railway, Article 19 of the Agreement can 
 have no reference to it." 
 
 t No text of this preliminary agreement is available.
 
 NUMBER 1908/3 : MARCH 6, 1908 709 
 
 proceeds of the Loan in instalments and on dates in proportion to, and based on, 
 the terms of subscription to the Loan, as stated in the prospectus. No further 
 payment in respect of commutation of profits will be allowed on any supple- 
 mentary Loans. 
 
 Article 21. — After payment of interest and repayment of principal of the 
 Loan for any current year, the Yuchuanpu shall deposit with the Hongkong and 
 Shanghai Banking Corporation in Shanghai any surplus of the net revenue of the 
 Railway line for that year up to the amount required to pay the following year's 
 instalments of interest on the loan; the rate of interest on the deposit being 
 arranged with the Bank from time to time with due regard to the conditions of 
 the market. 
 
 Article 22. — The Corporation may, subject to all its obligations under this 
 Agreement, transfer or delegate all or any of its rights, powers or discretions 
 thereunder to any British Company, Director or Agent, with power of further 
 transfer and subdelegation, such transfer, subtransfer, delegation or subdelegation, 
 to be subject to the approval of the Yuchuanpu. 
 
 Article 23. — This Agreement is signed under authority of an Imperial 
 Decree of this date which has been officially communicated to the Minister of 
 Great Britain in Peking by the Waiwupu. 
 
 Article 24. — Three sets of this agreement are executed in English and 
 Chinese, two sets to be retained by the Imperial Chinese Government and one by 
 the Corporation; in the event of any doubt arising regarding the interpretation 
 of the contract the English text shall rule. 
 
 Signed at Peking by the contracting parties this fourth day of the second 
 month of the thirty-fourth year of the Emperor Kuang Hsu, being the sixth day 
 of March nineteen hundred and eight. 
 
 [Signed in Chinese] 
 [Seal of Waiwupu]. Hu Wei-teh. 
 
 Liang Shih-yi. 
 Kao Erh-ch'ien. 
 For the British and Chinese Corporation, Ltd., 
 
 J. O. P. Bland, 
 Representative in China.
 
 710 
 
 CHINA TREATIES AND AGREEMENTS 
 
 SHANGHAI-HANGCHOW-NINGPO RAILWAY. 
 
 £1,500,000 at 5%. 30 Years. 
 
 Amortisation Schedule. 
 
 Years 
 
 1 
 
 2 
 3 
 4 
 5 
 6 
 7 
 8 
 9 
 10 
 11 
 12 
 13 
 14 
 15 
 16 
 17 
 18 
 19 
 20 
 21 
 22 
 23 
 24 
 25 
 26 
 27 
 28 
 29 
 30 
 
 Interest 
 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 37,500 
 35,625 
 35,625 
 33,750 
 33,750 
 31,875 
 31,875 
 30,000 
 30,000 
 28,125 
 28,125 
 26,250 
 26,250 
 24,375 
 24,375 
 22,500 
 22,500 
 20.625 
 20.625 
 18,750 
 18,750 
 16,875 
 16,875 
 15,000 
 15,000 
 13,125 
 13,125 
 11,250 
 11,250 
 9,375 
 9,375 
 7,500 
 7,500 
 5,625 
 5,625 
 3.750 
 3.750 
 1,875 
 1,875 
 
 Principal 
 £ 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37,500 
 
 37.500 
 
 37,500 
 
 37,500 
 
 Principal 
 Repaid 
 
 37,500 
 75,000 
 112,500 
 150,000 
 187,500 
 225,000 
 262,500 
 300,000 
 337.500 
 375,000 
 412,500 
 450,000 
 487.500 
 525,000 
 562,500 
 600,000 
 637,500 
 675,000 
 712,500 
 750,000 
 787,500 
 825,000 
 862,500 
 900,000 
 937,500 
 975,000 
 1,012,500 
 1,050,000 
 1,087,500 
 1,125.000 
 1,162,500 
 1.200,000 
 1,237,500 
 1,275,000 
 1,312,500 
 1,350,000 
 1,387,500 
 1,425,000 
 1.462,500 
 1,500,000 
 
 Principal 
 Outstanding 
 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,500,000 
 1,425,000 
 1,350,000 
 1,275,000 
 1,200,000 
 1,125,000 
 1,050,000 
 975,000 
 900,000 
 825,000 
 750,000 
 675,000 . 
 600,000 
 525,000 
 450,000 
 375,000 
 300,000 
 225,000 
 150,000 
 75,000
 
 NUMBER 1908/3: MARCH 6, 1908: NOTE 711 
 
 Note. 
 
 The construction of the railway was in fact undertaken by Chinese provincial enter- 
 prise — the Shanghai-Fengching section by the Kiangsu Provincial Railway Company, and 
 the section from there to Ningpo by the Chekiang Provincial Railway Company,— under 
 concessions from the Central Government. 
 
 The Far Eastern Review of July, 1913 (vol. X, p. 72) gives, without indication of 
 date or source, the following version (presumably translated from a Chinese text) of 
 an agreement for the nationalization of the Kiangsu section of this railway : 
 
 Agreement with Provincial Company for Nationalization of Kiangsu Section of 
 Shanghai-Hangchow-Ningpo Railway. 
 
 " Agreement made between the Kiangsu Railway Company (hereinafter called the 
 Company) represented by Yang Ting-tung (hereinafter called the Representative) of the 
 one part, and the ^linistry of Communications (hereinafter called the Ministry) of the 
 other part, for the nationalization of a Railway line belonging to the Company, under 
 the following terms and conditions : 
 
 "Article 1. — The Company hereby agrees to surrender completely to the Government, 
 according to the resolution of the Shareholders' Meeting of the Company, all the properties 
 and privileges of the Shanghai-Kashing Line, i.e. the Railway Line from Shanghai to 
 Fengching, which shall be controlled and managed direct by the IMinistry ; and to cancel 
 the concession of all privileges previously granted to the Company by the Government. 
 
 "Article 2. — The ^linistry hereby agrees to refund to the Company all the Capital 
 of the line, namely :— Proper Shares $3,476,523 and Interest Shares $1,073,895 (the latter 
 amount is not yet considered settled until proper calculation is made), by issuing to the 
 Company a number of Bonds of fi.xed dates. This Capital shall be repaid in five years 
 from the date of the taking over of the line, and the repayment shall be made in three 
 instalments in each year, in accordance with the separate schedule. It is, however, under- 
 stood that any of the instalments of each year may be made before the stipulated time, 
 provided two months' previous notice shall be given by the Ministry to the Company to 
 this effect. 
 
 "Article 3. — From the date of the taking over of the line, the Capital which has not 
 yet been repaid by the Ministry shall also bear yearly interest at the usual rate originally 
 decided upon by the Company, and this interest shall be paid by the Ministry at the same 
 time together with the repayments of the Capital, when the instalments become due. 
 
 "Article 4. — All Bonus or Founder's Shares which formerly existed shall be null and 
 void. They shall not be considered as Capital nor shall they be entitled to the repayment 
 of principal or the payment of interest. 
 
 "Article 5. — Of the 14 Regulations regarding Deposits of the Kiangsu and Chekiang 
 Railways, drawn up by the former Board of Posts and Communications on the ISth 
 day, 3rd month, of the 34th year of Kuang Hsii in the late Ching Dynasty, all those 
 which refer to the Kiangsu Railway shall be annulled from the date of the taking over 
 of the line. 
 
 " Article 6. — After the closing of the Company, an organ of account-calculation 
 shall be established. How this organ is to be established shall be decided separately. 
 
 "Article 7. — All the liabilities and assets which really belong to the Company shall be 
 transferred to the Ministry, but the amounts of them shall be determined by those con- 
 tained in the 6th Report of the Company. 
 
 "Article 8. — After the signing of this Agreement and before the taking over of the 
 line, the Company shall be fully responsible for all the properties, incomes and expenses 
 of the Company itself. 
 
 "Article 9.— With the exception of cases having special reasons, all the terminable 
 agreements and contracts of employment, transportation, lease, etc., entered into between 
 the Company and other parties, shall continue to be in force until the expiration of their 
 respective terms. 
 
 "Article 10.— On the signing of this agreement, the Ministry shall depute officials to 
 the Company to calculate carefully the accounts, and the Company shall instruct its respon- 
 sible officers to prepare detailed lists of properties together with all the books, documents 
 and vouchers, and to submit them to the ^Ministerial Officials for comparison and signature. 
 
 "Article 11.— It is mutuallv agreed that the taking over of the line shall be effected 
 on the 1st day of the 7th month, of the 2nd year of the Republic [i.e., July 1, 1913]. 
 
 "Article 12.— The Ministry shall not be responsible for the repayment of any money 
 that has not been stipulated in this agreement. 
 
 "Article 13.— Should any detailed procedure be required for carrying out the terms 
 and conditions of this agreement, it shall be decided by the Representative and the Mm- 
 istry after mutual agreement." 
 
 The Ministrv of Communications thereafter (on February 14, 1914), concluded with 
 the British and Chinese Corporation, Limited, a memorandum of agreement for the pay-
 
 712 CHINA TREATIES AND AGREEMENTS 
 
 ment, from the proceeds of the loan of 1908, of the funds required for the redemption and 
 nationalization of this section of the railway, the text of which agreement is thus given 
 in Wang, p. 497: 
 
 Agreement with British & Chinese Corporation regarding Nationalization of Kiangsu 
 Section of Shanghai-Hangchow-Ningpo Railway, February 14, 1914. 
 
 " WHEREAS arrangements have been concluded between the Ministry of Communi- 
 cations (hereinafter called 'the Ministry') and the Kiangsu Provincial Railway Com- 
 pany (hereinafter called 'the Company') for the resumption as a Government Railway 
 of the railway constructed by the Company from Shanghai to Fengching: 
 
 " and WHEREAS the said railway was placed on January 1, 1914, under a Managing 
 Director appointed by the Ministry and it is now necessary to commence making payment 
 of the instalments of redemption money which the Ministry has agreed to pay to the 
 Company : 
 
 " and WHEREAS the British and Chinese Corporation Limited (hereinafter called 
 'the Corporation') has agreed that the Company shall be paid from the funds of the 
 Chinese Government 5% Shanghai-Hangchow-Ningpo Railway Loan of 1908 such amount 
 as may represent the actual value of the said railway, on condition that the said railway be 
 forthwith administered as a Government line in a satisfactory manner: 
 
 " This AGREEMENT between the IMinistry, of the one part, and the Corporation, of 
 the other part, WITNESSETH AS FOLLOWS: 
 
 " 1. — The Ministry declares the said railway to be free from all mortgage of property 
 or charge on revenue, and that all outstanding liabilities of the Company are provided for 
 in the payments which the Ministry has agreed to make to the Company. 
 
 "2. — The actual value of the railway having been estimated by the INIinistry and the 
 Corporation at Shanghai Taels 3,150,000 it is hereby agreed that the following amounts 
 shall be paid from the loan funds aforesaid on the dates herein stated, namely : 
 
 On February 20th, 1914, Shanghai Taels • • 1,150,000 
 
 On May 20th, 1914, Shanghai Taels 920,000 
 
 On August 20th, 1914, Shanghai Taels 770.000 
 
 On November 20th, 1914, Shanghai Taels 310,000 
 
 " The said amounts will be held available to the order of the Ministry by the Hongkong 
 and Shanghai Banking Corporation, Shanghai. 
 
 "3. — From the date of the first payment of loan funds as above agreed the railway will 
 be effectively administered by the Ministry, and it has been agreed by the Company that 
 they will from that date relinquish all their rights in respect to the railway and will look 
 solely to the Chinese Government for the payment of all further instalments, without 
 recourse against the Railway : a declaration to which effect will be stamped on the Chinese 
 Government bonds which are to be issued to the Company by the Ministry. 
 
 " 4. — The administration of the railway will be conducted by a Chinese Managing 
 Director. An Engineer-in-Chief, a Traffic Manager and a Chief Accountant, all of whom 
 shall be British subjects acceptable to the Corporation, shall be appointed forthwith, 
 together with the necessary staff. The aforesaid officers shall be under the orders of the 
 Managing Director or his duly authorised representative. 
 
 " The connection of the railway with the Shanghai-Nanking Railway shall be under- 
 taken by the Administration of the railway without delay. 
 
 " 5. — The Chief Accountant shall have sole charge under the authority of the Managing 
 Director of all receipts and disbursements of railway funds, and shall sign in conjunction 
 with the Managing Director all documents appertaining to the disbursements of railway 
 funds. The receipts of the railway will be deposited by him to the credit of the railway 
 account with the Hongkong and Shanghai Banking Corporation at Shanghai : and any net 
 revenue after payment of working expenses will be available for the payment of interest 
 on the bonds of the Shanghai-Hangchow-Ningpo Railway loan of 1908. 
 
 "6. — This Memorandum of Agreement is made subject to and in amplification of the 
 Shanghai-Hangchow-Ningpo Railway loan agreement of March 6th, 1908. In the event of 
 any doubt arising regarding its interpretation the English text shall rule. 
 
 " Signed at Peking, this fourteenth day of February, 1914, corresponding to the four- 
 teenth day of the second month of the third year of the Chinese Republic. 
 
 " [Chinese signature of 
 
 ■' Chu Ch'i-ch'ien. 
 
 and seal of 
 
 THE MINISTER OF COMMUNICATIONS.] 
 
 (Signed) S. F. Mayers. 
 
 for THE BRITISH AND CHINESE CORPORATION LIMITED." 
 
 (Seal)
 
 NUMBER 1908/3: MARCH 6, 1908: NOTE 713 
 
 The Kiangsu Railway had meanwhile been mortgaged, at the time of the revolution, 
 as security for a loan of Yen 3,000,000 from Okura & Company to the Nanking Provisional 
 Government ; and the funds for the redemption of that mortgage were borrowed by the 
 Chinese Government from the British and Chinese Corporation under an agreement of 
 February 14, 1914, of which the text is thus given in Wang, p. 503: 
 
 Agreement for a Loan for Redemption of Mortgage on Kiangsu Section of Shanghai- 
 Hangchow-Ningpo Railway, February 14, 1914. 
 
 "WHEREAS AX AGREEMENT dated January 27th, 1912, was made between the 
 NANKING PROVISIONAL GOVERNMENT and MESSRS. OKURA of Japan for a 
 loan of Yen three millions, secured by mortgage of the Kiangsu Section of the Shanghai- 
 Hangchow-Ningpo Railway : 
 
 AND WHEREAS the Chinese Government is now desirous of redeeming the said loan 
 and lifting the said mortgage which conflicts with the Shanghai-Hangchow-Ningpo Railway 
 loan agreement of Ivlarch 6th, 1908, the present AGREEMENT is made between the Gov- 
 ernment of the Republic of China acting through its Ministry of Communications, of the 
 one part, hereinafter called 'the Ministry,' and the British and Chinese Corporation 
 Limited, hereinafter called ' the Corporation,' of the other part. 
 
 "Article 1. — The Ministry hereby contracts to borrow from the Corporation a loan of 
 £375,000 to be evidenced by the issue of Chinese Government bonds for that amount which 
 the Corporation is hereby authorised to prepare in such form and for such amounts as 
 the Corporation shall decide in consultation with the Chinese Minister in _ London. The 
 bonds shall bear the facsimile of the signature of the Minister of Communications and of 
 his seal of office, and the Chinese Minister in London shall sign and seal them in the usual 
 manner as a proof that their sale is duly authorised by and binding upon the Chinese Gov- 
 ernment. The loan shall be entitled : ' The Chinese Government 6% Shanghai-Fengching 
 Railway Mortgage Redemption loan of 1914.' 
 
 " The proceeds of the loan will be placed by the Corporation to the credit of the Min- 
 istry at the Hongkong and Shanghai Banking Corporation in London on the date upon 
 which duly executed bonds (or provisional certificates representing the same) are handed 
 to the Corporation by the Chinese IMinister in London. 
 
 " Article 2.— These bonds shall bear interest at the rate of six per cent. (6%) per 
 annum on the nominal principal which will be paid to the Corporation half-yearly. The 
 said interest shall be calculated from the date on which the bonds (or provisional certifi- 
 cates representing the same) are handed to the Corporation and shall be paid by the Min- 
 istry from Chinese Government sources, and should these be insufficient then from the 
 surplus earnings of the Peking-Mukden Railway, as laid down in Article 4 hereinafter. 
 
 " The payment of interest to the Corporation will be made through its duly appointed 
 Agents, the Hongkong and Shanghai Banking Corporation, in accordance with the amounts 
 of the schedule attached to this agreement and 14 days before their due date, by the 
 Ministry, who shall hand to the said Bank in Shanghai 14 days before due date, funds 
 in Shanghai sycee and/or coin of the National Currency so soon as the said currency shall 
 have been effectively established, sufficient to meet such payment in sterling in London, 
 exchange for which shall be settled with the Bank. These payments may however be made 
 in Gold if the Ministry should happen to have Gold funds 'bona fide' at their disposal 
 in Europe and desire so to use them. 
 
 " In reimbursement of expenses connected with the payment of interest and repay- 
 ment of principal of the loan the Hongkong and Shanghai Banking Corporation will receive 
 a commission of %% on the annual loan service. • , , ,, 
 
 " Article 3.— The term of the loan shall be 20 years. Repayment of principal shall 
 commence after the expiry of 10 years from the date on which the bonds (or provisional 
 certificates representing the same) are handed to the Corporation, and shall be made by 
 yearly amortisation to the Hongkong and Shanghai Banking Corporation from the surplus 
 earnings of the Peking-Mukden Railway as laid down in Article 4 hereinafter, and if 
 necessary, from such other sources as the Ministry may think fit to use for the purpose 
 according to the amounts specified in the schedule attached to this agreement, and 14 
 days before their due dates, as calculated from the date on which the bonds (or provi- 
 sional certificates representing the same) are handed to the Corporation. 
 
 "If at any time after the lapse of 10 years from the date on which the bonds (ot 
 provisional certificates representing the same) are handed to the Corporation the Ministry 
 should desire to redeem the loan or any portion of it not yet due for repayment m accord- 
 ance with the schedule of repayments hereto attached, it may do so by payment of a 
 premium of 2i/4% on the face value of the bonds, that is to say by payment of £102. lU/— tor 
 
 each £100 bond. , ^-l- 1 u ^.u-,* tUa. 
 
 " Article 4 —The Government of the Republic of China hereby engages that the 
 interest and principal of this loan shall duly be paid in full, and pledges as security for 
 the loan the surplus earnings of the Peking-Mukden Railway (excluding the section of 
 the Hsinmintun-Mukden line to the East of the Liao River) that is to say, that after 
 deducting from the net earnings of that railway the amounts required to meet the pay-
 
 714 CHINA TREATIES AND AGREEMENTS 
 
 ments of interest and repayments of principal due in terms of the agreement of October 
 10th, 1898, to the bondholders of the Chinese Government loan of that year, and after 
 deducting from the balance of the net earnings of that railway the amounts required to 
 meet the payments of interest and repayments of principal due in terms of the Agreement 
 of March 6th, 1908, to the bondholders of the Chinese Government Shanghai-Hangchow- 
 Ningpo Railway loan of that year, then the payment of interest and repayment of prin- 
 cipal of the present loan shall be a first charge upon the said surplus earnings of the 
 Peking-Mukden Railway (excluding the section of the Hsinmintun-Mukden line to the 
 East of the Liao River) and no deduction or payments shall be made from the earnings 
 of the said railway other than those required to meet the obligations stated in the Loan 
 Agreements of October 10th, 1898, and 6th March, 1908, until an amount sufficient to pay 
 the next half-yearly instalment of interest and yearly instalment of principal of the present 
 loan shall have been placed on deposit with the Hongkong and Shanghai Banking Cor- 
 poration as security for the due payment of the same. 
 
 " Article 5. — The Corporation undertakes to purchase the aforesaid bonds to the total 
 nominal value of £375,000 at the price of £91 for each £100 bond. 
 
 " Article 6. — The Ministry hereby undertakes that the proceeds of this loan shall be 
 solely devoted to the redemption of the loan of Yen 3,000,000 mentioned in the preamble 
 of this Agreement, and hereby declares formally that on redemption of the said loan the 
 Kiangsu Section of the Shanghai-Hangchow-Ningpo Railway will be free from all loans, 
 charges or mortgages whatsoever (the Chinese Government 5% Shanghai-Hangchow- 
 Ningpo Railway Loan of 1908, and outstanding liabilities of the Company for which the 
 Ministry of Communications has made provision, excepted) and that the Chinese Goyern- 
 rnent will not permit any other loan charge or mortgage to be created by the Provincial 
 Company of Kiangsu on the security of the aforesaid section of the Shanghai-Hangchow- 
 Ningpo Railway. 
 
 " Article 7. — If any of the bonds mentioned in this agreement are lost or destroyed 
 a reissue of any thereof will be made in the amounts respectively called for by such lost 
 or destroyed bonds, but proper proof of the loss or destruction must be given in the usual 
 form by the Corporation to the IMinistry. All expenses connected with the reissue of such 
 lost or destroyed bonds will be borne by the Corporation. 
 
 " Article 8. — All bonds and coupons and payments made and received in connection 
 with the service of this loan shall be exempt from all Chinese taxes and imposts during 
 the currency of this loan. 
 
 " Article 9. — This Agreement is signed under the authority of a Presidential Order 
 of February 14th, 1914, which has been officially communicated to the Minister of Great 
 Britain in Peking by the Waichiaopu. 
 
 " Article 10. — Three sets of this agreement are executed in English and Chinese, two 
 sets to be retained by the Ministry and one by the Corporation : in the event of any doubt 
 arising regarding the interpretation of the agreement the English text shall rule. 
 
 " Signed at Peking by the contracting parties this fourteenth day of February, Nine- 
 teen hundred and fourteen. 
 
 [Chinese signatures & seals of 
 " Chu ch'i-ch'ien, 
 
 "Minister of Communications. 
 " Chou Tzu-ch'i, 
 
 Minister of Finance. 
 
 (Sgd.) "S. F. Mayers. 
 
 "for The British and Chinese Corporation, 
 Limited.
 
 NUMBER 1908/3: MARCH 6, 1908: NOTE 
 
 715 
 
 " SHANGHAI-FENGCHING RAILWAY : MORTGAGE REDEMPTION LOAN 
 
 AGREEMENT. 
 
 £375,000 at 6%. 20 Years. 
 AMORTISATION SCHEDULE. 
 
 Years 
 
 1 
 
 2 
 
 3 
 
 4 
 
 5 
 
 6 
 
 7 
 
 8 
 
 9 
 
 10 
 
 11 
 
 12 
 
 13 
 
 14 
 
 15 
 
 16 
 
 17 
 
 18 
 
 19 
 
 20 
 
 Interest 
 
 £11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 11,250 
 
 10,125 
 
 10,125 
 
 9,000 
 
 9.000 
 
 7,875 
 
 7,875 
 
 6,750 
 
 6,750 
 
 5,625 
 
 5,625 
 
 4.500 
 
 4.500 
 
 3,375 
 
 3,375 
 
 2,250 
 
 2,250 
 
 1,125 
 
 1,125 
 
 Principal 
 
 Principal 
 Outstanding 
 
 
 £375,000 
 
 
 375,000 
 
 
 375,000 
 
 
 375,000 
 
 
 375,000 
 
 
 375.000 
 
 
 375,000 
 
 
 375,000 
 
 
 375,000 
 
 
 375,000 
 
 £37,500 
 
 337,500 
 
 37,500 
 
 300,000 
 
 37,500 
 
 262,500 
 
 37,500 
 
 225,000 
 
 37,500 
 
 187,500 
 
 37,500 
 
 150,000 
 
 37,500 
 
 112,500 
 
 37,500 
 
 75,000 
 
 37,500 
 
 37,500 
 
 37,500 
 
 
 The Chekiang section of the railway was likewise nationalized by an agreement (of 
 which no version is available) with the Chekiang Provincial Railway Company, the funds 
 for the purpose being obtained by the Chinese Government from the proceeds of the loan 
 of 1908, under the terms of a memorandum of agreement, dated September 19, 1914, of 
 which the text is thus given in Wang, p. 491 : 
 
 Agreement with British & Chinese Corporation regarding Nationalization of Chekiang 
 Section of Shanghai-Hangchow-Ningpo Railway, September ig, 1914. 
 
 " WHEREAS arrangements have been concluded between the Ministry of Communi- 
 cations (hereinafter called 'the Ministry') and the Chekiang Provincial Railway Com- 
 pany (hereinafter called 'the Company') for the resumption as a Government Railway 
 of the Chekiang Section of the Shanghai-Hangchow-Ningpo Railway (hereinafter called 
 'the Section ') : 
 
 " AND WHEREAS the said section was placed on June 16th, 1914, under a Managing 
 Director appointed by the Ministry, and it is now necessary to commence making payment
 
 716 CHINA TREATIES AND AGREEMENTS 
 
 of the instalments of redemption money which the Ministry has agreed to pay to the 
 Company : 
 
 "AND WHEREAS the British and Chinese Corporation Limited (hereinafter called 
 'the Corporation') has agreed that the Company shall be paid from the funds of the 
 Chinese Government 5% Shanghai-Hangchow-Ningpo Railway Loan of 1908 such amount 
 as may represent the actual value of the said Section, on condition that the entire Shanghai- 
 Hangchow-Ningpo Railway (hereinafter called 'the Railway') be forthwith administered 
 as a Government line in a satisfactory manner. 
 
 " THIS AGREEMENT between the Ministry, of the one part, and the Corporation, of 
 the other part. 
 
 "WITNESSETH AS FOLLOWS:— 
 
 " 1. The Ministry hereby declares the said Section to be free from all mortgage of 
 property or charge on revenue, and that all outstanding liabilities of the Company are 
 provided for in the payments which the Ministry has agreed to make to the Company. 
 
 "2. The actual value of the Section having been estimated by the Ministry and the 
 Corporation at Shanghai Taels 8,000,000 it is hereby agreed that the following amounts 
 shall be paid from the loan funds aforesaid on the dates herein stated, namely. 
 
 On September 24th, 1914, Shanghai Taels 2,000,000 
 
 On December 24th, 1914, Shanghai Taels 2,000,000 
 
 On March 24th, 1915, Shanghai Taels 2,000,000 
 
 On June 24th, 1915, Shanghai Taels 2,000,000 
 
 " The said amounts will be held available to the order of the Ministry by the Hong- 
 kong and Shanghai Banking Corporation, Shanghai, but with the condition that if after 
 defraying from loan funds, from time to time, the expenditure for repairing and construc- 
 tion work of the railway and for constructing the connecting line with the Shanghai- 
 Nanking Railway there should be insufficient loan funds remaining over to meet the final 
 instalment above stated the deficiency shall be met from the proceeds of the Shanghai- 
 Hangchow-Ningpo Railway Supplementary Loan. 
 
 " 3. From the date of the first payment of loan funds as above agreed the railway will 
 be effectively administered by the Ministry, and it has been agreed by the Company that 
 they will from that date relinquish all their rights in respect to the Section and will look 
 solely to the Chinese Government for the payment of all further instalments, without 
 recourse against the Railway; a declaration to which effect will be stamped on the Chinese 
 Government bonds which are to be issued to the Company by the Ministry. 
 
 " 4. The administration of the Railway will be conducted by a Chinese Managing 
 Director. An Engineer-in-Chief, a Traffic Manager, a Locomotive Superintendent and a 
 Chief Accountant, all of whom shall be British subjects acceptable to the Corporation, 
 shall be appointed forthwith, together with the necessary staff, including a Chief Store- 
 keeper, who shall be a British subject. The aforesaid officers shall be under the orders 
 of the Managing Director or his duly authorised representative : and in order to secure 
 efficiency and economy of administration the said Chinese Managing Director and officers 
 shall be the Chinese Managing Director and staff of the Shanghai-Nanking Railway. Their 
 full salaries and allowances shall be charged to the administration of the Shanghai-Nanking 
 Railway and the Shanghai-Hangchow-Ningpo Railway in proportion to_ the respective 
 mileage of these lines. The connection of the railway with the Shanghai-Nanking Rail- 
 way shall be undertaken immediately on signature of the present Memorandum of Agree- 
 ment. Funds for the purchase of the necessary land will be furnished by the Ministry, 
 and the expenditure necessary for the construction of this connecting line will be met 
 from loan funds. 
 
 " The completion of the Railway from Hangchow to Ningpo shall be undertaken by 
 the Administration as soon as practicable. 
 
 " 5. The Chief Accountant shall have sole charge under the authority of the Managing 
 Director of all receipts and disbursements of railway funds and shall sign in conjunction 
 with the Managing Director all documents appertaining to the disbursement of railway 
 funds. The receipts of the railway will be deposited by him to the credit of the Railway 
 Account with the Hongkong and Shanghai Banking Corporation at Shanghai ; and any 
 net revenue after payment of working expenses will be available for the payment of 
 interest on the bonds of the Shanghai-Hangchow-Ningpo Railway Loan of 1908. 
 
 "6. This Memorandum of Agreement in English and Chinese is made subject to and 
 in amplification of the Shanghai-Hangchow-Ningpo Railway Loan Agreement of March 6th, 
 1908. In the event of any doubt arising regarding its interpretation the English text shall 
 rule. 
 
 " Signed at Peking, this nineteenth day of September, 1914, corresponding to the nine- 
 teenth day of the ninth month of the third year of the Chinese Republic. 
 
 " [Chinese signature and Seal of 
 "THE MINISTER OF COMMUNICATIONS] 
 
 (Sgn.) "S. F. Mayers 
 
 (Seal) "for The British and Chinese Corporation, 
 
 Limited."
 
 NUMBER 1908/4: MARCH 12, 1908 717 
 
 NUMBER 1908/4. 
 
 CHINA. 
 
 Memorial of the Ministry for Foreign Affairs, and imperial rescript, in regard 
 
 to the revision of the procedure governing intercourse betiveen the local 
 
 officials and missionaries* — March 12, 1908. 
 
 A memorial was presented by the former Tsung Li Yamen, enclosing five 
 articles on the subject of intercourse between the local officials and missionaries, 
 which was approved by an imperial rescript, dated Kuang Hsu, 25th Year, 2nd 
 Month, 5th day (March 16, 1899). f 
 
 We would note that in the memorial it is stated that when the Archbishops 
 or Bishops apply for an interview with the Viceroys, Governors, Provincial 
 Judges, Taotais, Prefects, or District Magistrates, the said officials will treat with 
 them according to their respective ranks. 
 
 At the time the memorial was presented the Tsung Li Yamen hoped that the 
 procedure which they drew up to govern intercourse between the local officials 
 and missionaries would be of benefit to the church. But the Bishops and others 
 who are preaching the Gospel in China can not be said to have official rank, 
 and they certainly can not hold the same rank as Viceroys, Governors, and other 
 officials. 
 
 Of late the practice of the local officials, based on treaty, in their relations 
 with the missionaries, does not agree with the conditions which were prevalent 
 at the time the last regulations were drawn up. Furthermore, since the regula- 
 tions in question were put into eiTect, the missionaries and others have constantly 
 made use of the ceremonial customs and insignia of the local officials, thereby 
 causing misunderstandings among the stupid people. Such was certainly not the 
 original intent of the regulations, and it is urgently necessary to draw up a pro- 
 cedure more in accord with present conditions. 
 
 We accordingly petition the Throne to cancel the memorial of the Tsung 
 Li Yamen. In future the intercourse between the local officials and the mis- 
 sionaries should be carried on as before, in accordance with the treaties. 
 
 When the Throne has approved this memorial, this board will communicate 
 with the different provinces that they may issue instructions to have the memorial 
 observed. 
 
 Reverently submitted to Their Majesties, the Empress Dowager and the 
 Emperor. 
 
 RESCRIPT : Approved. 
 
 Kuang Hsu, 34th Year, 2nd Month, 10th day (March 12, 1908). 
 
 * Translation from the official Chinese text, 
 t See Note to this document, post, p. 718.
 
 713 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 Rockhill, p. 424, and Hertslet, p. 1154, reprint from China, 1900, No. 1, p. 142, the fol- 
 lowing translation of that memorial: 
 
 Memorial and Rescript concerning Intercourse between local Officials and 
 Missionaries, March i6, 1899. 
 
 " China has long ago given her consent to the establishment of Mission stations of the 
 Roman Catholic religion in the various provinces. With the desire of maintaining peaceful 
 relations between ordinary Chinese subjects and the converts, and of facilitating protective 
 measures, the following proposals as to the reception of missionaries by local officials are 
 
 submitted : — .... 
 
 " 1.— To define the various ranks of missionaries. 
 
 " Bishops rank with Governors-General and Governors. They may ask for interviews 
 with these officers. If a Bishop returns to his country or vacates his post on account of 
 sickness, the priest who acts for him can also ask for interviews with the Governor-General 
 
 and Governor. , , . . • , ^^ t j j 
 
 " Provicaires and Head Priests can ask for interview with Treasurers, Judges, and 
 Taotais. Other priests can ask for interviews with Prefects and Magistrates. 
 
 " The Chinese officials of all ranks above mentioned will return the courtesy in accord- 
 ance with the rank of the priest. 
 
 "2.— Bishops must furnish the provincial authorities with a list giving the names of 
 the priests deputed to transact international business with the Chinese officials, and of the 
 places where missions are established, so that the provincial authorities can instruct their 
 subordinates to treat with such priests according to these regulations. 
 
 " All those priests who ask for interviews, and those specially deputed to transact such 
 business, must be Westerners, but in cases in which the Western Priest cannot speak 
 Chinese, a Chinese priest may interpret. 
 
 " 3.— In cases in which the Bishop lives away from the provincial capital, he need not 
 naturally go to the said capital to ask for an interview with the Governor-General or Gov- 
 ernor without cause. On occasions of a change of Governors or Bishops, or of New Year's 
 congratulations, the Bishop may write to the provincial authorities or send his card as a 
 matter of courtesy, and the provincial authorities will reciprocate. 
 
 " In cases of change of priests, the newcomer must have a letter from the Bishop, 
 before he can ask for interviews with the Chinese officials as above. 
 
 " 4. — In grave cases connected with the mission. Bishops and priests must request the 
 Minister of the nation specially intrusted by the Pope with the protection of Roman 
 Catholic missionaries or the Consul of that nation to arrange the affairs with the Tsung-li 
 Yamen or the local officials. They may also discuss and arrange the matter in the first 
 instance with the local officials, so as to avoid complications. The local officials, when applied 
 to in such cases, must at once discuss and arrange the affair in an equitable and friendly 
 manner. 
 
 " 5. — The local officials must, as occasion arises, exhort and constrain the ordinary 
 Chinese to look upon the converts as comrades, and not to pick quarrels with them. 
 
 " The Bishops and priests on their side must instruct their converts to lead blameless 
 lives, and so preserve the good name of the religion and the respect and goodwill of the 
 non-converts. 
 
 " Should lawsuits arise between converts and others, the local authorities must decide 
 the same with impartiality. The priests must not interfere or favour their people. Thus it 
 may be hoped that converts and people will live together on friendly terms. 
 
 " The same day the Imperial assent was given."
 
 NUMBER 1908/5 : MARCH 25, 1908 719 
 
 NUMBER 1908/5. 
 
 GREAT BRITAIN (British and Chinese Corporation, Limited) AND CHINA. 
 
 Agreement in regard to the Shanhaikuan-Sinminting section of the Peking- 
 Mukden Raikvay.*— March 25, 1908. 
 
 THIS AGREEMENT is made at Peking on the twenty-third day of the 
 second month of the thirty-fourth year of Kuang Hsu, corresponding to the 
 twenty fifth day of March 1908, between the Director General of the Imperial 
 Railways office of the Board of Communications, hereinafter referred to as the 
 Director General of the one part, and the British and Chinese Corporation 
 Limited hereinafter called " The Corporation " of the other part. 
 WHEREAS : 
 
 L— In the year 1899 the Chinese Imperial Railway 5% Gold Loan was 
 issued for the total sum of £2,300,000 sterling in 23,000 Bearer Bonds of ilOO 
 each, the said loan being unconditionally guaranteed by the Imperial Government 
 of China and each of the said bonds being sealed by the Chinese Minister in 
 London and being, by the terms of the bond, declared to be entitled to a first 
 charge upon the permanent way rolling stock and entire property with the freight 
 and earnings of the then existing railway lines then partly constructed or in the 
 course of construction or about to be constructed from Shanhaikuan to Sinmin- 
 ting and from a point on the last mentioned line near Shih-san-chan to Yingtzu and 
 (by way of a branch line) from Nu-erh-ho to the collieries of Nanpiao and each 
 of the said bonds being expressed to be issued subject to and with the benefit 
 of the agreement next hereinafter stated. 
 
 2. — Under an Agreement (hereinafter called the "Loan Agreement") 
 dated the 10th October 1898 f and made between H. E. Hu Governor of Peking 
 as Director General of the Railways of North China within and without Shan- 
 haikuan acting under the authority of the Imperial Chinese Government of the 
 one part, and the Hongkong and Shanghai Banking Corporation (hereinafter 
 called "the said Bank") for themselves and on behalf of the firm of Jardine 
 Matheson & Company representing as Joint Agents the Corporation of the other 
 part, the said loan was issued on behalf of the Director General aforesaid by the 
 Corporation. 
 
 3. — By the provisions of the loan agreement the proceeds of the loan were to 
 be paid over in London to the order of the Director General and were to be 
 applied (amongst other purposes) to the construction of the said railways men- 
 tioned in the said bonds as being then partly constructed or in course of construc- 
 tion or about to be constructed including the said branch line from Nu-erh-ho to 
 the collieries of Nanpiao. 
 
 4. — The said railways mentioned in the said bonds as being then partly con- 
 structed or in course of construction or about to be constructed (except the said 
 
 * Text as printed in Wang, p. 169. 
 tNo. 1898/20, ante.
 
 720 CHINA TREATIES AND AGREEMENTS 
 
 branch line from Nu-erh-ho to Nanpiao) have now been constructed and opened 
 for traffic and it is contended by the Director General that the several purposes for 
 which the proceeds of the said loan were applicable under the loan agreement 
 except the construction of the said branch line to Nanpiao have been fulfilled. 
 
 5. — In accordance with the provisions of the said bonds and of the loan 
 agreement, bonds to the aggregate amount of £57,500 were drawn and paid off in 
 each of the years 1905, 1906 and 1907 (except certain drawn bonds which have 
 not yet been presented for payment) with the result that the outstanding bonds 
 of the said loan do not in the aggregate exceed the sum of £2,127,500. 
 
 6. — All interest which has accrued due under the bonds of the said loan up 
 to the date of this agreement has been duly paid. 
 
 7. — At the time of the issue of the said loan it was believed that good coal 
 could be obtained from Nanpiao for general purposes and in particular for the 
 purposes of working the said railways mentioned in the said bonds. The 
 Imperial Chinese Government have now ascertained that the coal at Nanpiao is 
 generally of an inferior quality and in particular is of little use for locomotive 
 purposes and consequently the Director General refuses to proceed with the 
 construction of the said branch line to Nanpiao. 
 
 8. — The estimated cost of the branch line from Nu-erh-ho to Nanpiao was 
 £150,000, which estimate is more than covered by the remainder of the capital of 
 the loan so far unexpended and lying in the Hongkong and Shanghai Bank in 
 London to the credit of the Imperial Railways of North China. 
 
 9. — Under the circumstances the Corporation are satisfied that it will be 
 generally for the benefit of the security of the said bonds that such arrangement 
 shall be effected (subject to the sanction of the High Court in England) as is 
 hereinafter expressed. 
 
 NOW IT IS HEREBY AGREED AS FOLLOWS:— 
 1. — The Director General and the Imperial Chinese Government shall be free 
 and discharged from any obligation either under the said bonds or under the loan 
 agreement to construct the branch line from Nu-erh-ho to Nanpiao or any 
 part thereof. 
 
 2. — No part of the unexpended loan funds shall be reserved for the construc- 
 tion of the branch line from Nu-erh-ho to Nanpiao, but all of the said unex- 
 pended loan funds so far as they are not already applicable by the Imperial Rail- 
 ways of North China to reimbursement for work of construction, improvement 
 and equipment already performed by the latter, shall be disposed of under the 
 terms of the original loan agreement of 1898, that is to say, in the further con- 
 struction of extensions or improvement of existing lines or railway equipment 
 under the terms of the said loan agreement other than the construction and 
 equipment of the said branch line from Nu-erh-ho to Nanpiao. 
 
 3. — Each of the said bonds remaining outstanding is hereby declared to be 
 entitled to a first charge upon the permanent way rolling stock and entire property 
 with the freight and earnings of the railway already constructed from Peking to 
 Tungchow and also of all railways and railway equipment the construction or 
 purchase of which or of any part of which shall be paid for out of the said funds 
 standing to the credit of the Imperial Railways of North China as aforesaid and
 
 NUMBER 1908/6: APRIL 5, 1908 721 
 
 SO that all the agreements and provisions of the said bonds and of the loan agree- 
 ment for the security of the said bonds or the benefit of the bondholders shall, 
 so far as may be, apply in respect of the said railways and property of every 
 kind included in this present charge in like manner as if such railways and 
 property had been originally included in the security of the said bonds. 
 
 4. — The Director General will execute and do or cause to be executed and 
 done all (if any) instruments acts and things which according to the law of China 
 may be necessary or proper to effectuate this agreement and the charge herein 
 contained. 
 
 5. — All the costs, charges, and expenses of the Corporation of and incidental 
 to the negotiations for and the preparation and execution of this agreement and 
 of and incidental to the carrying the same into effect including the costs charges 
 and expenses of all parties of and incidental to the proceedings to be taken under 
 the next following clause shall be paid out of the said funds at the said Bank. 
 
 6.— Proceedings shall forthwith be commenced in the High Court of Justice 
 in England for obtaining the sanction of the said Court to this agreement on 
 behalf of the holders of the said bonds. 
 
 7. — This agreement is to be sealed with the official seal of the Chinese 
 Minister in London in testimony of the authority of the Director General to 
 execute and effectuate this agreement. 
 
 IN WITNESS WHEREOF the contracting parties have signed this agree- 
 ment this twenty third day of the second month of the thirty fourth year of 
 Kuang HsU; corresponding to the twenty fifth day of March 1908. 
 
 (Sgd.) Liang, 
 
 Director General. 
 (Sgd.) J. P. Bland, 
 for The British and Chinese Corporation Limited. 
 
 NUMBER 1908/6. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Heilungkiang 
 
 Province). 
 
 Agreement for the felling of timber in Heilungkiang Province* — April 5, 1908. 
 
 Article I.— The Chinese Eastern Railway Company is hereby granted the 
 privilege of felling all kinds of timber in the Province of Heilungkiang: (1) 
 Huo Liao Kou, near branch line No. 384, in length not more than thirty 
 Chinese //, in breadth not more than ten Chinese //"; (2) P'i de I, near Pa Lin 
 Station, in length not over thirty li, in breadth not more than ten li; (3) along 
 
 * Translation from Chinese text. Russian text printed in Soglashenia, p. 46. 
 In connection with this agreement, see the similar agreement in regard to Kirin 
 Province, August 30, 1907 (No. 1907/15. ante).
 
 722 CHINA TREATIES AND AGREEMENTS 
 
 the banks of the Ch'uan Lin River, from the point where it enters the Sungari 
 River, upstream for the distance of fifty li, in breadth twenty li on the right bank 
 and fifteen li on the left bank. 
 
 Article II' — The said railway company shall, before commencement of the 
 operations of felling any timber, notify the Chief Bureau of railway relations of 
 the region, of the quantity and kinds of timber the said company intends to fell, and 
 request the authority of the said Bureau that a license be issued in which are 
 enumerated the desired quantity and kinds of timber. The said license shall be 
 issued after one-third of the fee required for the enumerated quantity and kinds 
 of timber has been received ; the other two-thirds shall be paid after the quantity 
 as enumerated in the license has been felled. 
 
 Article III. — A timber license shall be issued annually on the first day 
 of August (Russian Calendar) in favor of the said railway company, which 
 license is to last one year. All fees of the previous year shall be fully paid at 
 the above date. If at the end of the year the quantity of timber felled is not 
 equal to one-third of that stated in the license, the fees already paid shall, 
 according to the Chinese Treasury rules, not be refunded. If on the contrary, 
 the quantity of timber felled exceeds one-third, a proportionate fee, shall, how- 
 ever, be paid, according to the rate fixed in this agreement. In case the license 
 fee due at the end of the stated period is not paid, or the said company fails 
 to comply with the articles of this agreement, the license already issued shall be 
 nullified and the privilege of felling timber withdrawn. If the said company duly 
 pays the license fee, and acts according to the articles of this agreement, the 
 Chinese authority shall, in accordance with the provisions of this agreement, 
 renew the license annually on the dates stated above. 
 
 Article IV. — The area granted to the said company on which to procure 
 timber shall be marked out clearly in the locality at the said company's expense. 
 The said company shall not procure timber beyond the limits thus marked out. The 
 Chinese authority shall not grant the privilege of felling timber within the said 
 areas to any other party. The Chinese authority will make every effort to stop 
 the unauthorized felling of timber within the said areas by any other party. 
 
 Article V. — Sufficient space must be reserved in the said timber areas 
 near the railway for public roads, spacious enough for the passage of vehicles, 
 horses, etc. 
 
 Article VI. — The said railway company may make any arrangements 
 within the said timber areas for the felling of timber, the storage of the same, 
 the establishment of sawmills, the erection of dwelling houses, the repair of 
 branch lines for the transportation of wood. Chinese police must be permitted 
 to enter said areas for the arrest of criminals. Chinese subjects shall not be 
 prevented from entering the said areas for the purpose of hunting and 
 the collection of ginseng roots. Chinese authority shall be at liberty to 
 dispose of any tillable land that may be found within the said areas to Chinese 
 subjects for agricultural purposes ; the said company shall not exercise any inter- 
 ference. The inhabitants of the said timber area may procure therefrom such 
 timber as is used for building material and fuel, but this must be made known to 
 the said railway company through the deputy residing in the areas, who will
 
 NUMBER 1908/6 : APRIL 5, 1908 723 
 
 designate the locality, make an estimate of the quantity of timber, and issue a 
 special certificate, but the wood thus procured shall not be sold to another 
 party. If any pasturage is found within the said areas, the said company may 
 breed cattle thereon, and procure therefrom hay for sheep and goats. One kopeck 
 shall be paid to the Chinese government treasury for each pood of hay. 
 
 Article VII. — The said company shall procure such timber from the said 
 areas as are stated in the license. Four-tenths (4/10) of a kopeck shall be paid 
 for each arshin (twenty-eight English inches) length and one vershok (1.75 
 English inches) in thickness of wood; this applies to lumber sixteen inches (Rus- 
 sian inch same as English), Russian measure, in diameter, and twelve feet (Rus- 
 sian foot same as English), Russian measure, in length only; for any size exceed- 
 ing this, half a kopeck shall be paid for each arshin (twenty-eight English inches) 
 length and one vershok (1.75 English inches) in thickness of wood. One rouble 
 shall be paid for every cubic sashen (one sashen equals seven English feet) of 
 wood used for fuel. Three and one-half kopecks shall be paid for each piece 
 of track wood (sleeper?). The diameter of any lumber of large size shall be 
 measured by the small end. Any fraction more than six-tenths of an inch shall 
 be considered as one inch; if less than six-tenths the fraction shall be dropped. 
 As to lengths, such sizes as reach one-fourth of a foot will be taken into account. 
 This tariff shall continue in force for five years after the date on which this 
 agreement is signed. After the expiration of that period, the license questions 
 shall be taken up for reconsideration. If the said railway company shall pur- 
 chase any lumber from merchants who received their permission from the 
 Chinese authorities, the said company shall pay license fees according to the 
 tariff of this article, upon receiving the consignment of lumber. 
 
 Article VIII. — The Chinese authority shall appoint deputies to reside in 
 the areas above stated, who will, in conjunction with the Russian officers, keep 
 records of the varieties, sizes and quantities of lumber procured from the said 
 areas, for the purpose of calculating the license fee. 
 
 Article IX. — For every shang (0.6 acre) of government land, without 
 reference to quality of soil, that may be occupied for the purpose of the building 
 of dwelling houses, the storage of lumber, and the establishment of factories at 
 the junction of roads, the said company shall pay three roubles annually as rental. 
 If it be private land, the annual rental shall be agreed upon with the owner. 
 
 Article X. — As the forests are subject to the conservation measures of the 
 Chinese Government, the privilege of felling timber granted to the said railway 
 company shall not interfere with any regulations that may be promulgated by the 
 government for the conservation of forests. 
 
 Article XL — According to the present condition of the railway in Heilung- 
 kiang Province, two hundred thousand cubic sashen are consumed annually as 
 fuel, eight hundred thousand pieces of track wood (sleepers?), and two hundred 
 thousand pieces of timber of considerable size. If, in future, the railway prospers 
 and consumes or requires more wood than the present estimates, the Chinese 
 authorities may grant more. 
 
 Article XII. — The said railway company may sell such of its superfluous 
 wood, but tax must be paid according to the prevailing tariff.
 
 724 CHINA TREATIES AND AGREEMENTS 
 
 Article XIII. — After this agreement is ratified, it shall be binding upon 
 both parties. All previous agreements and licenses shall be superseded.! 
 
 Article XIV.— This agreement shall be drawn in Russian and Chinese, two 
 copies of which shall be made, with charts of the timber areas appended, which 
 shall be sealed and signed. One copy shall be deposited in the Yamen of the 
 Governor of Heilungkiang ; another copy delivered to the Chinese Eastern Rail- 
 way Company. In the event of controversy, the Chinese text shall be authori- 
 tative. 
 
 34th year of Kuang Hsii, 3rd moon, 5th day : Russian Calendar, March 23, 
 1908 (April 5, 1908). 
 
 (Signed) Sung Hsiao-Lien, 
 Expectant Taot'ai, Wearer of the one-eyed Peacock Feather. 
 (Signed) General Horvath, 
 Manager of the Chinese Eastern Railway. 
 
 (supplementary agreement.) 
 
 In the 11th Article of these regulations the words 200,000 cubic sashens of 
 fire wood should be changed to 100,000 cubic sazhens; the 800,000 pieces of 
 track wood should be changed to 300,000 pieces; the 200,000 pieces of large 
 timber should be changed to 100,000. 
 
 (Signed) Sung Hsiao-Lien, 
 Expectant Taot'ai, Wearer of the one-eyed Peacock Feather. 
 (Signed) G^w^ra/ Horvath, 
 Manager of the Chinese Eastern Railway. 
 
 NUMBER 1908/7. 
 
 GERMANY (Ching Ching Minen Gesellschaft) AND CHINA. 
 Agreement in regard to the Ching Hsing mines.* — April 14, 1908. 
 
 Agreement made between H. E. Tsai Superintendent of Customs and H. E. 
 the Brevet Taotai Li, by appointment of H. E. the Viceroy of Chihli Yang, Direc- 
 tor General and Director of the Chihli Ching Hsing Mining Administration and 
 all business connected herewith of the one part and Mr. C. von Hanneken acting 
 on behalf and in the name of the Ching Ching Minen Gesellschaft m. b. h., a 
 German Company, of the second part. 
 
 Whereby it has been agreed as follows: — 
 
 The said " Ching Hsing Mining Administration " being hereafter referred to 
 as the " Administration " — the Ching Ching Minen Gesellschaft m. b. h. as the 
 
 * See Note to this document, post. p. 729. 
 
 t One such agreement had been concluded at Harbin, February 22/]\Iarch 6, 1904.
 
 NUMBER 1908/7: APRIL 14, 1908 725 
 
 " Company " — the association of both parties to bear the name of the " Ching 
 Hsing Mines " and to be referred to in this Agreement as the " Mines." 
 
 Article 1. — The "Administration" being Superintendent and Concessionar 
 over the geological coal-fields and mineral deposits of the Chihli District of 
 Ching Hsing decides and agrees to enter into an association with the " Company " 
 subject to the Articles of this Agreement. 
 
 Article 2. — The " Company " decides and agrees to enter into an association 
 with the " Administration " and to hand into the " Mines " all its property and 
 assets consisting in lands, pits, machinery, plant, houses, and buildings, furniture, 
 live stock, underground developments, stock of coal and stocks of materials, tools 
 and stores. All the lands acquired by the " Company " for mining purposes are 
 to be returned to the " Administration," who will hand same to the " Mines." 
 
 Article 3. — The business year of the " Mines " shall commence with the date 
 of the Imperial sanction of this agreement. At this date the Company assures and 
 warrants that all accounts and debts have been settled and that any claimants 
 against the Company shall have no claim against the " Mines." 
 
 Article 4. — During the continuance of the present agreement the " Mines " 
 shall be worked jointly by both parties. The ** Administration " shall appoint by 
 mutual agreement with the " Company " the Chinese staff and in particular the 
 Chinese Manager and Chinese Engineer, the " Company " shall appoint by 
 mutual agreement with the " Administration " the Foreign staff and the For- 
 eign Manager. 
 
 Before any projected works and innovations are undertaken, they are to be 
 approved of by the two co-managers or their deputies who must in everything 
 act in perfect harmony ; all accounts to be kept by competent Foreign or Chinese 
 accountants and to be translated into Chinese so that they might be equally con- 
 trolled, and passed by both co-managers ; every formal document to be signed by 
 the two co-managers or their deputies, who shall act in the name of and on 
 account of the " Mines," all official correspondence to be conducted in Chinese ; 
 business correspondence, accounts and documents may be conducted in English 
 but must be kept on file in both languages. 
 
 Article 5. — The value and assets of the " Mines " to be accounted for in 
 the capital of the enterprise of the development of the Ching Hsing district 
 consist of : — 
 
 (a) The geological coal-fields within the district of Ching Hsing as shown on 
 the attached map f and declared to be presently intended for development 
 and estimated to amount to Hang Ping Taels Two Hundred and Fifty 
 Thousand (Tls. 250,000). 
 
 (b) The entire assets of the ** Company " brought in by this Company in 
 accordance with Article 2 and the necessary sum of money for further 
 development also estimated to amount to Hang Ping Taels Two Hun- 
 dred and Fifty Thousand (Tls. 250,000) of which Hang Ping Taels 
 Two Hundred Thousand represent the agreed value of the entire assets 
 of the '* Company " as per Article 2 on the first day first moon of the 
 32 year Kuang Hsii. 
 
 t Not printed.
 
 726 CHINA TREATIES AND AGREEMENTS 
 
 Thus the nominal Capital of the " Mines " will be Hang Ping Taels Five 
 Hundred Thousand, of which Tls. 250,000 (fully paid up) shares will be handed 
 to the Administration and remain under control of the Director General and Tls. 
 250,000 shares, of which Tls. 200,000 are paid up will be handed to the 
 " Company." 
 
 The " Company " will have to pay up their shares Hang Ping Taels Fifty 
 Thousand as demand arises and interest thereon to begin from date of payment. 
 It is understood that the Taels Two Hundred and Fifty Thousand shares handed 
 to the " Administration " will receive interests and dividends at the rate as if 
 they were paid up at the dates as the shares of the " Company." 
 
 Article 6. — If in the course of time the funds of the " Mines " should 
 prove to be insufficient to carry on the business and if new funds must be 
 provided for, this might be done either by increasing the Capital of the '* Mines " 
 and in such case the " Administration " and the " Company " shall each have 
 to provide one half of this increase, or the " Mines " shall be authorised to 
 supply the necessary funds by raising a loan. Which of the two ways will have 
 to be adopted shall be a matter to be mutually decided by the two co-managers. 
 
 Article 7. — The annual net profits of the undertaking shall be applied as 
 follows : 
 
 (a) Interest at the rate of seven per cent (7%) per annum on the total paid 
 up capital of Tls. 500,000 shall be paid yearly to the shareholders. 
 
 (b) Of the remaining profits ten per cent (10%) shall be paid to the "Ad- 
 ministration " to form an amortisation fund, to refund the original 
 capital of the Company. 
 
 (c) A sum of Hang Ping Taels Five Thousand (Tls. 5,000) to be paid to 
 the Bureau of Mines of Chihli Province. 
 
 (d) The remaining profit shall be divided in equal parts between the " Ad- 
 ministration " and the " Company." 
 
 Article 8. — This Agreement is made for a term of thirty years from the 
 date of the Imperial sanction being given. During the first fifteen years interest 
 and profits shall be paid as stated in Article 7. From the sixteenth year the 
 amount of Capital actually invested by the " Company " shall be repaid, by the 
 *' Administration " at the rate of one fifteenth a year, so that in fifteen years 
 time the Capital shall be fully redeemed; the redeemed sums not bearing any 
 more than interest of 7%. During this term (i.e. from the 16th to the 30th year) 
 the division of the profits shall be as follows : one half to the '* Administration " 
 and one half to the '* Company," from the 16th to the 20th year whereas from 
 the 21st to 30th year only 40% of the total remaining profits will go to the " Com- 
 pany," the "Administration" receiving 60%. 
 
 At the end of the thirtieth year the total amount of Capital invested by the 
 " Company " shall be fully redeemed after which all connections between the 
 " Administration " and the " Company " will cease and this Agreement be void. 
 
 Article 9. — If at the end of the 15th year the *' Administration " should 
 wish that all connections between the " Administration " and the '* Company " 
 should cease and that this Agreement should be terminated the " Administration " 
 will give the " Company "12 months notice.
 
 NUMBER 1908/7: APRIL 14, 1908 727 
 
 In such case the " Administration " shall have the right to take over, and the 
 *' Company " shall have the obligation to deliver all her interests in the " Mines " 
 against receiving from the "Administration" the sum of Tls. 250,000 as an 
 equivalent for the original Capital invested by the '* Company " and besides a 
 bonus equal to 15 times the average dividend as per Article 7 paragraph (d) 
 during the last 5 working years, after payment of which all connections between 
 the " Administration " and the " Company " will cease and this Agreement be 
 void. 
 
 If on the other hand the " Company " should desire to retire from the 
 " Mines " then the " Administration " will return to the " Company," the capital 
 invested by the " Company " and no other profits will be paid. 
 
 Article 10. — It is understood and agreed that all financial obligations 
 between the " Administration " and the ** Company " provided for in this Agree- 
 ment, shall be a first charge upon the property and assets of the " Mines " and in 
 case such properties and assets should prove insufficient to repay the share- 
 value, or interest thereon, or any part of such share-value, no residual liability 
 shall rest with the Chinese Government or authorities nor with the members of 
 the Shareholders of the " Administration " or the " Company " beyond their in- 
 terest in the " Mines " themselves. 
 
 Article 11. — During the continuance of the association between the 
 " Administration " and the " Company," the " Administration " shall not be 
 entitled to enter into any engagement without the consent of the " Company " 
 and preference shall be given to the " Company " to negotiate or take up any 
 loan, which the " Administration " might wish to raise in connection with the 
 development of Mining in the District of Ching Hsing. But if after 15 years 
 Article 9 should come into force the " Administration " shall be free to enter into 
 engagements or conclude loans without reference to the " Company." 
 
 On the other hand the " Company " shall not without the consent of the 
 " Administration " transfer its rights or shares in the " Mines " to any other 
 party. 
 
 Article 12. — H. E. the Director General on behalf and with the assistance 
 of H. E. the Viceroy of Chihli will exert all his influence to secure for the 
 " Mines " the same terms and rates of transportation on the railways of China 
 for its coal and other products and for its incoming machinery and supplies as 
 may from time to time be enjoyed by the most favored of other concerns of the 
 same character. The " Mines " shall have the right to build Byeroads and Rail- 
 ways for the transportation of their output within the limits of the geological 
 property of the " Administration " and further on to join on to the great trunk 
 lines, provided such rights do not interfere with the Ching-Han Tcheng-Tai 
 Railway lines $ and with the temple buildings and grave yards. 
 
 In case the " Mines " wish to make use of this right beyond a radius of 10 
 li from the mining area, it will be necessary to hand in a general plan of such 
 proposed railways to the Director General who will apply for a special permission 
 from the Government. 
 
 t The " Ching-Han " is the Peking-Hankow, the " Tcheng-Tai " is the Chengtingfu- 
 Taiyuanfu Railway.
 
 728 CHINA TREATIES AND AGREEMENTS 
 
 Article 13. — The royalties to be paid to the Chinese Government and to the 
 local and provincial authorities shall not exceed in the aggregate five per cent 
 (5%) on the tonnage extracted from the mines. This tax shall be paid on the 
 basis of the output at the pitsmouth being one Ku-Ping Hai Kwan Pei-Pao tael 
 per ton. Duty and Likin shall be the same as paid by the Chinese Engineering 
 and Mining Company Limited, namely eighty four (84) large cash per ton for 
 Likin and twelve and a half Ku-Ping Hai Kwan Pei-Pao tael cents (Tls. 0.125) 
 per ton for duty. 
 
 Besides the Likin and Royalty no other duties shall be payable except the 
 ordinary land tax. Coal sold to the Railways, Government offices and other 
 official undertakings shall only pay the official Royalty. It is agreed that in the 
 event of other foreign-Chinese Company's coal and mining output paying Likin 
 and duties lower than those mentioned, such reduced rates shall also be applied 
 to the output from the " Mines." 
 
 In case of any new mining regulations being issued by the Board of Agricul- 
 ture Works and Commerce in the future, it will be decided by his Excellency the 
 Viceroy of Chihli how far such new regulations are to be adopted as binding for 
 the *' Mines " who will act in conformity with such decision. 
 
 Article 14. — All materials and other things destined for the Mines shall 
 pay the Imperial Customs duty but shall be free of all other dues or Likin. 
 
 Article 15. — H. E. the Viceroy of Chihli will give his protection and sup- 
 port to all the enterprises of the " Mines," shall exercise full authority over the 
 " Mines " and his orders shall be obeyed and respected as far as they are not con- 
 trary to the interest of the undertaking. 
 
 Article 16. — In case disputes shall arise between the parties hereto, each 
 of them, the " Administration " and the " Company " shall appoint an arbitrator to 
 settle the difference and in case of disagreement between the arbitrators, an 
 umpire shall be appointed by the arbitrators whose decision shall be final. 
 
 Article 17. — ^The Chinese version of this agreement is drawn up in six 
 copies which will be signed by the Representatives of the " Administration " and 
 the ** Company." 
 
 An English version of the Agreement shall be attached to each copy, both 
 versions having been carefully compared are acknowledged to be fully alike ; if 
 however in later time any difference of opinion should arise as to the terms of 
 this Agreement the Chinese version thereof shall be treated as authoritative. 
 
 After the six copies have been duly signed, they shall be submitted to his 
 Excellency the Viceroy, who shall affix his seal thereto, after which this Agree- 
 ment shall be presented for Imperial sanction. 
 
 One set shall be kept in the Viceroy's Yamen. 
 
 One set shall be kept in the Customs Taotai's Yamen. 
 
 Two sets shall be kept by the " Administration." 
 
 Two sets shall be kept by the " Company." 
 
 To each set is attached a copy of the map. 
 Tientsin the 14th April, 1908.
 
 NUMBER 1908/7: APRIL 14, 1908: NOTE 729 
 
 Note. 
 
 On June 10, 1910, the Ching Hsing Mines entered into the following mortgage inden- 
 ture with the Banque de I'lndo-Chine : 
 
 Mortgage of Ching Hsing Mines to Banque de I'lndo-Chine, June lo, igio. 
 
 THIS INDENTURE made this 10th day of June, 1910, at Tientsin, in the Empire 
 of China. 
 
 BY AND BETWEEN THE CHING HSING KUANG WU CHU (Ching Hsing 
 Mines) an Association formed by the CHIHLI CHING HSING MINING ADMIN- 
 ISTRATION, and the CHING CHING GESELLSCHAFT m.b.h. a hmited Hability joint 
 stock company registered under the German law in the German Consulate at Tientsin, 
 under the terms of an agreement between the said Administration and the said Company 
 dated the 14th day of April, 1908, and which received Chinese Govermental sanction by 
 Imperial Rescript on the 5th day of August, 1908, to own and operate certain coal mines 
 in the said District of Ching Hsing in the Province of Chihli, of the Empire of China, 
 party of the first fpart] hereinafter referred to as the KUANG WU CHU and the 
 BANQUE DE LTNDO-CHINE, a banking society organized under the laws of France 
 and having a branch office at Tientsin aforesaid, hereinafter referred to as the BANK, 
 
 WITNESSETH THAT: 
 
 WHEREAS the aforesaid agreement of association forming the Kuang Wu Chu by 
 Article VI thereof, empowers the Chinese and foreign managers of the said Kuang Wu 
 Chu, acting conjointly to borrow money for the purposes expressed in said agree- 
 ment, and, by Article X thereof, limits the liability of the parties to said agree- 
 ment to the actual investment of the said parties in the said Kuang Wu Chu for the 
 time being, and excludes all liability for further contribution by the said parties. The 
 Articles VI & X of the Agreement of association between the Chihli Ching Hsing Admin- 
 istration and the Ching Ching Minen Gesellschaft m.b.h. forming the Kuang Wu Chu and 
 referred to above are to be part of this IMortgage Indenture and read in accordance with 
 the original agreement as follows : 
 
 "Article VI. — If in the course of time the funds of 'the Mines' should prove to 
 be insufficient to carry on the business and if new funds must be provided for, this might 
 be done by increasing the Capital of ' The Mines ' and in such a case the ' Administra- 
 tion ' and the 'Company' shall have each to provide one-half of this increase or 'the 
 Mines' shall be authorized to supply the necessary funds by raising a loan. Which of 
 the two ways will have to be adopted shall be a matter to be mutually decided by the 
 two co-managers. 
 
 " Article X. — It is understood and agreed that all financial obligations between the 
 ' Administration ' and the ' Company ' provided for in this agreement, shall be a first 
 charge upon the property and assets of ' The Mines ' and in such a case such properties 
 and assets should prove insufficient to repay the share-value or interest thereon or any 
 part of such share-value, no residual liability shall rest with the Chinese Government or 
 Authorities nor with the members of the shareholders of the ' Administration ' or the 
 ' Company ' beyond their interest in ' The Mines ' themselves " and, 
 
 WHEREAS the Kuang Wu Chu by resolution of its Chinese and foreign managers 
 has authorised a loan of Tientsin Hongping Hupao Taels Seven hundred and Fifty thou- 
 sand (TIs. 750,000) secured by bonds to be issued in three series of Tls. 250,000 each, the 
 first series on the first day of July, 1910, the second series on the first day of July, 1912, 
 and the third series on the first day of July, 1914, or as to the second and third series at 
 such other times as the Chinese and foreign co-managers may determine upon the following 
 conditions, that is to say: 
 
 (a) The said Bonds and the interest thereon are payable at the Offices of the Kuang 
 Wu Chu in Tientsin in Hupao Silver by weight in Tientsin Hongping Taels, or if the 
 same be not then current, in the reformed Imperial Chinese silver coin when the same 
 is established, at the rate per Tientsin Hongping Hupao Tael in force in the Imperial 
 Government mints at the respective times of payment. 
 
 (b) The said Bonds bear INTEREST at the rate of SEVEN per centum per annum, 
 payable at the Offices of the Kuang Wu Chu in Tientsin semi-annually on the first days 
 of January and July in each year after the year of issue. 
 
 (c) The said Bonds shall be issued to bearer only. 
 
 (d) Repayment of the principal sum of the said Bonds .shall begin on the first day 
 of July, 1916, and shall be completed by the first day of July, 1923, the designation of 
 the Bonds to be repaid in each year being made by lot, but at any time within the eight 
 year period of repayment so provided, the Kuang Wu Chu has the right to redeem at 
 par on six months notice published once a month for six months in the official organ 
 of the French Municipality at Tientsin, and in one English newspaper published in 
 Tientsin, the whole sum of Bonds, principal and accrued interest, then outstanding.
 
 730 CHINA TREATIES AND AGREEMENTS 
 
 NOW THEREFORE, for the better security of the said Bonds, the Kuang Wu Chu 
 hereby mortgage to the Bank, its successors or assigns all its property of whatsoever 
 description, movable or immovable, corporeal or incorporeal, situated within the Dis- 
 trict of Ching Hsing or elsewhere, now owned by the Kuang Wu Chu or hereafter 
 
 flCQUirCQ 
 
 ON 'condition, however, that so long as the Kuang Wu Chu shall well and 
 truly pay all instalments of interest and principal of the said Bonds as and when they 
 fall due, the Bank shall not enter into possession of the said property nor in any manner 
 interfere with the operation of the Kuang Wu Chu but in the event that the Kuang Wu 
 Chu shall continue for ten days in default in the complete payment of any sum due 
 according to the terms of any of the said Bonds outstanding when such payment is due, 
 then the right of the Bank to take possession on behalf of the Bondholders of the prop- 
 erty hereby mortgaged shall at once mature and shall be exercised by the Bank. There- 
 after, in such event the Bank shall, so soon as may be, by four weeks' notice published 
 once a week for four weeks in the official organ of the French Municipality at Tientsin, 
 and in one English newspaper published in Tientsin, call a meeting of the holders of 
 the outstanding Bonds and shall act in accordance with the instructions of any com- 
 mittee selected by such meeting, but not otherwise than to operate the mines of the 
 Kuang Wu Chu and to employ its other property with the sole object of recovering by 
 such operation and employment, after payment of all expenses, the balance due upon the 
 Bonds then outstanding, and the interest thereafter accruing, after which recovery in full 
 the property taken into possession by the Bank shall be returned to the Kuang Wu Chu. 
 
 The committee appointed at the first meeting may be replaced in whole or in part, 
 and the instructions given by the committee to the Banque de ITndo-Chine may be modi- 
 fied, at any subsequent meeting : 
 
 For the first meeting, the holders of a simple majority of the Bonds then outstanding 
 shall constitute a quorum, and all resolutions shall be binding which are carried by a 
 majority of the Bonds represented by those present. In the event of a failure of a 
 quorum, the meeting shall stand adjourned to reconvene four weeks later, when any 
 number of bonds represented shall form a quorum. 
 
 The first meeting provided for in the paragraph next above shall establish rules for 
 the calling of subsequent meetings and fix the powers of such meetings. 
 
 At any time during the possession of the mortgaged property by the Bank, the Kuang 
 Wu Chu may redeem the same by paying in full all amounts then due on account of the 
 principal and interest of the Bonds then outstanding and the outlay of the Bank in the 
 expense of taking possession and of operation and maintenance so far as such outlay has 
 not been recovered from profits of operation. 
 
 No sale of the mortgaged property nor any part of it by the Bank, whether privately 
 or by auction, shall be valid without the sanction of the Imperial Government, excepting 
 always current sales of mine products and sales of disused or useless plant and materials, 
 while the property is in the possession of the Bank. 
 
 During the life of this mortgage, the Kuang Wu Chu shall make no sale of any of 
 the mortgaged property, excepting always sales of its mine products and of disused or 
 useless plant and materials, without the consent of the Bank. 
 
 So soon as all the Bonds, principal and interest secured by this mortgage, and all 
 outlay of the Bank on their behalf are fully paid this mortgage shall be null and void, 
 and each party shall cancel and deliver up to the other the original executed copy held by 
 it, otherwise it shall remain always in full force. 
 
 Neither the Kuang Wu Chu, nor either party to the agreement of association forming 
 the Kuang Wu Chu, nor anyone holding a share therein derived of either such party, nor 
 the Imperial Chinese Government Central, Provincial or Local, shall be liable for any 
 deficit after the exhaustion of the property hereby mortgaged, but the Bondholders shall 
 look to such property alone and the operation of the mines hereby mortgaged for repay- 
 ment of principal and interest. 
 
 The Bank shall have no liability whatever to the Bondholders in respect of any pay- 
 ment due by the Kuang Wu Chu or in respect of any act of the Bank in pursuance of the 
 provisions of this mortgage, or, so soon as the Bank in the event of default by the Kuang 
 Wu Chu has issued a call for a meeting of Bondholders, for any omission of the Bank. 
 
 The Kuang Wu Chu covenants that it is the sole proprietor of the mortgaged property 
 and that it has good right to mortgage the same. 
 
 The Kuang Wu Chu further covenants that the mortgaged property is free and unen- 
 cumbered and that this mortgage constitutes a first mortgage upon the mortgaged prop- 
 erty having priority over all other claims whatsoever, saving Imperial Chinese Govern- 
 ment taxes which taxes the Kuang Wu Chu covenants always to pay as and when they 
 become due. 
 
 IN WITNESS WHEREOF, the parties hereto have hereunto set their names and 
 seals by their duly authorised officers at Tientsin aforesaid, the day and year first above 
 written.
 
 NUMBER 1908/8: MAY 14, 1908 731 
 
 NUMBER 1908/8. 
 
 JAPAN AND CHINA. 
 
 Agreement for a Chinese-Japanese Joint Stock Lumber Company for the Ex- 
 ploitation of the Yalu Timber*— May 14, 1908. 
 
 Natung, a Minister of the Chinese Wai-wu Pu, and Baron Gonsuke 
 Hayashi, Minister Plenipotentiary of Japan, being duly authorised thereto by 
 their respective Governments, have drawn up Regulations for a joint Chinese 
 and Japanese Timber Company, as provided for in Article X of the Supplemen- 
 tary Manchurian Agreement of 1905,t as follows : — 
 
 Article I. — An area shall be marked out on the right bank of the Yalu, 
 extending from Maoerhshan to Erhshihszetaok9U and measuring 60 // inland 
 from the main stream. (A delegate shall be appointed by the Fengtien province 
 to define the area and put up boundary marks conjointly with a Japanese dele- 
 gate.) The gathering of timber within the area will be carried on with the 
 joint capital and under the joint management of China and Japan. As a begin- 
 ning, both countries shall appoint officers who shall open offices and commence 
 work. At the end of a year, when all arrangements have been completed and 
 agreed on, the two countries shall invite their merchants to take up the enter- 
 prise. 
 
 Article II. — The joint Chinese and Japanese Timber Company shall be 
 styled the Yalu River Timber Company. 
 
 Article III.— The capital of the Company shall be $3,000,000, of which 
 China and Japan shall each contribute half. 
 
 Article IV. — The head office of the Company shall be established at Antung, 
 and the Company, upon report to the Superintendent, shall open branch offices 
 wherever they are deemed necessary. 
 
 Article V.— The Company shall protect the existing Chinese timber-cutting 
 industry. Except the area to be marked out in accordance with Article I and 
 in which the Company shall cut timber, all places beyond its boundaries, as well as 
 the forests of the Hun River, shall continue as before to be worked by Chinese 
 wood-cutters. These shall apply to the Company for loans wherewith to carry 
 on their industry, and all timber cut by them — with the exception of sleepers 
 for the railway companies in Kiangsu and Chekiang provinces, and timber for 
 the use of the inhabitants along the river, which shall be purchased direct from 
 the said wood-cutters — shall be sold exclusively to the Company. In the dis- 
 posal of timber, the Company shall sell at market prices, and shall not create a 
 monopoly. 
 
 Article VI. — When the Chinese Government, or Government offices, pur- 
 
 * Translation, as printed in Customs, vol. II, p. 760, from the Chinese text. 
 tNo. 1905/18, ante.
 
 732 CHINA TREATIES AND AGREEMENTS 
 
 chase under huchao timber which has either been felled by the Company or 
 bought from wood-cutters, the Company shall sell at cost price. 
 
 Article VII. — The Company shall be allowed to carry on their business for 
 a term of 25 years, on the expiration of which, if the Chinese Government shall 
 be satisfied with the working of the Company, a petition may be sent to the 
 Chinese Government for an extension of the term. 
 
 Article VIII. — The Company shall have one Superintendent who shall 
 be the Taotai of the Eastern Circuit, appointed by the Governor of Fengtien ; 
 and two Managers, one Chinese and one Japanese, whose appointments shall 
 be made by their respective countries. Other assistants, skilled employes, etc., 
 shall be appointed by joint selection and consent of the managers. The man- 
 agers shall not employ persons of other nationalities in connexion with wood- 
 cutting in the assigned area without the approval of the Superintendent. 
 
 Article IX. — The Company shall, at the end of each year, prepare a re- 
 port on the year's business and a statement of receipts and expenditure, to be 
 submitted to the proper authorities of the two countries. 
 
 Article X. — After the expenditure of the Company shall have been de- 
 ducted from the receipts, five per cent, of the net profit shall be appropriated 
 to the Chinese Government, and the remainder shall be distributed among 
 the shareholders of the two countries. The disbursements of the Company shall 
 be under due control, and periodical estimates of salaries and other expenditure 
 shall be submitted to the Superintendent for his approval. 
 
 Article XI.$ — Within one month after the conclusion of this Agreement, 
 the Governor of Fengtien and the Japanese Consul-General at Fengtien shall 
 each appoint a delegate to draw up detailed regulations for the management of 
 the Company, which, when agreed upon, shall become the regulations of the 
 Company; and within three months thereafter the Company shall commence 
 business. For new rules subsequently enacted by the Company the Superin- 
 tendent's approval will be necessary. 
 
 Article XII. — As to the duties payable by the Company on timber, when 
 the discussion of the detailed regulations takes place at Fengtien (Aloukden), 
 the delegates of the two countries shall inquire into the established rates of 
 timber taxes and shall negotiate with the local authorities with a view to a 
 reduction of such taxes. The machinery and the implements necessary for 
 wood-cutting imported by the Company shall be exempted from duty and likin. 
 
 Article XIII. — After the inauguration of the Company the Japanese Gov- 
 ernment shall eflfect the removal of the timber sheds now in existence on the Yalu. 
 
 Peking : 
 
 15th day, 4th moon, 34th year of Kuang Hsii: 
 14th day, 5th moon, 41st year of Meiji. 
 
 X See Note to this document, post, p. 7Zi.
 
 NUMBER 1908/8: MAY 14, 1908: NOTE 733 
 
 Note. 
 
 The following is a translation from a Japanese text of the regulations agreed upon 
 September 11, 1908, in pursuance of the provisions of Article XI: 
 
 Regulations for Sino-Japanese Yalu Timber Company, September ii, 1908. 
 
 " S. Okabe, His Imperial Japanese Majesty's Consul, and Chang Hsi-Lan, Imperial 
 Chinese Commissioner of the Finance Department at Mukden, having received instructions 
 from their respective Governments, have in accordance with Clause XI of the Agreement 
 of the 14th of May, 1908, for the establishment of a Yalu Timber Company, agreed upon 
 the following regulations for the governance of the said Company, to wit: 
 
 _ " 1. — The Company will be conducted in accordance with the agreement between the 
 Chinese and Japanese Governments of the 14th of May, 1908, for the joint exploitation of 
 the Yalu Timber, and in accordance with the present Regulations it has been agreed that 
 the Company will be established from the 25th of September, 1908. 
 
 " 2. — In accordance with the agreement signed in Peking the two Governments will 
 appoint officials to establish a company. 
 
 " (a) After the lapse of one year, when everything is in working order, merchants 
 will be requested to undertake the business. 
 
 " (b) Regulations for the issue of shares will be drawn up after the inauguration of 
 the present Company. 
 
 " 3. — The Capital of the said Company is fixed at $3,000,000 which on the day of the 
 establishment of the Company is to be contributed in equal shares by the Chinese and 
 Japanese Governments. When the Company is transferred to a merchant association, the 
 whole of the said capital will be withdrawn. 
 
 " 4. — The Capital is to be paid up in Chinese Dollars and all receipts and expendi- 
 tures must be calculated in such currency. The money will be deposited partly in Chinese 
 and partly in Japanese Banks as shall be determined by the Managers of the Company. 
 
 " 5. — The following shall be the officers of the Company : 
 
 1) One Superintendent 
 
 2) Two Chief Managers 
 
 3) Two or more sub-Managers 
 
 4) Experts and other officials. 
 
 " (a) The Viceroy and Governor of Fengtien Province have appointed the Taotai of 
 the Eastern Frontier as Superintendent of the Company. 
 
 " (b) Of the Chief Managers one shall be appointed by the Chinese and one by the 
 Japanese. 
 
 " (c) The sub-Managers shall be appointed by the Chief Managers in consultation. 
 
 " (d) Experts and other officials will also be appointed by the Chief Managers, but 
 such appointments must be distributed equally between Chinese and Japanese subjects. 
 
 "6. — The salary of the Superintendent shall be $15,000 per annum, that of the Chief 
 Managers $10,000 per annum. The salaries of the sub-Managers will be determined by the 
 Chief Managers in consultation. 
 
 " 7. — The number and salaries of the Experts and other officials will be determined by the 
 Chief Managers in consultation with the Superintendent. 
 
 " 8. — The correspondence and accounts of the Company, being of the greatest im- 
 portance, will be rendered in both Chinese and Japanese. The two Governments will ap- 
 point auditors who will inspect the working of the Company and all the accounts and cor- 
 respondence. The^ shall be empowered to demand from the Company all kinds of docu- 
 ments and any information as to the condition of the Company. 
 
 " 9 — The accounts of the Company will be rendered in accordance with the Chinese 
 Calendar. 
 
 " (b) When the Company is handed over to a mercantile association a final balance 
 sheet will be at once issued. 
 
 " 10. — The Company is formed from Capital supplied jointly by China and Japan. Un- 
 less by mutual agreement the Company may not of its own initiative borrow money to 
 extend its operations. 
 
 "11. — Five per cent of the profits of the Company must be placed to a Reserve Fund. 
 When such reserve fund has reached an amount equal to one-third of the capital of the 
 Company, it shall remain at that amount. Just as is laid down in the preceding clause 
 this reserve must not be used except under mutual agreement. 
 
 " 12.— The Chief Managers must prepare and submit to the Superintendent for ap- 
 proval a statement of their estimates for the receipts and expenditures of each year. In 
 such estimates there must be a clear discrimination between the items of expenditure and 
 
 income. ,. ,, • 1 
 
 "13 To all that relates to receipts and expenditures as well as m other matters m- 
 
 volving joint calculations the Chief Managers must after consultation report their decision 
 to the Superintendent.
 
 734 CHINA TREATIES AND AGREEMENTS 
 
 " 14. — As regards the taxes on the timber cut by the Company they must be paid in 
 accordance with the old ' Shan-chia-Ko ' tariff but with a twenty per cent reduction. The 
 Company has nothing to do with the boat tax as levied under former conditions. Other 
 charges such as inspection of timber, police protection and similar taxes are altogether 
 remitted. If timber is exported by steamer the export duty in accordance with the Customs 
 Tariff will be paid as a substitute for the boat tax. Payment of the ' Shan-chia-Ko ' tax in 
 accordance with precedent will be made by the Company at the time of the sale of the 
 timber. The business of the Company, its receipts, implements used in cutting logs, etc., will 
 be free from taxation. The local land tax must, however, continue to be paid, in accordance 
 with former regulations. 
 
 " 15. — The Chekiang Railway Company may contract for, and buy timber needed by 
 them from lumber merchants, but a document must be given by the said Company stating 
 the particulars of all such timber which must be presented to the Taotai of the Eastern 
 Frontier and sealed by him. At the time of the export of any such consignment the 
 Superintendent of the Company will depute an officer to inspect the lumber before releas- 
 ing it. 
 
 " 16. — With the exception of the wood required for their own needs, the settlers on 
 either bank of the Hun river must sell their timber exclusively to the Company. It has 
 already been provided in the Peking Agreement that the local authorities must issue a 
 proclamation to this effect. Hereafter, if there should be any violation of the Peking 
 Agreement, the Company will inform the local authorities who shall take measures to 
 punish the offenders without leniency. 
 
 " 17. — The Company will undertake the responsibility of making suitable arrangements 
 for the supervision of rafting logs — such arrangements must be decided upon by the two 
 Chief Managers conjointly, and submitted to the Superintendent for his approval. 
 
 " (b) The Timber companies now in existence must at the time of the establishment 
 of this Company be dissolved and the local authorities shall issue proclamations to this 
 effect. 
 
 " 18. — In accordance with the Peking Agreement the Company may cut timber on the 
 right bank of the Yalu from Maoerhshan as far as the 24th tributary within a distance 
 of sixty (60) Chinese li on either side of the main said stream. The two Governments will 
 appoint officers who will conjointly make a survey map and mark on it the extent of such 
 concession. 
 
 "19. — The Company must investigate the conditions of the forests to be cut down, 
 the order in which the trees are to be cut, the extent of the district in which cutting will 
 take place in each year, and the nature of the trees, must be shown on a map and reported 
 for the approval of the Viceroy and Governor. 
 
 "20. — Chinese laborers only must be employed by the Company in cutting and moving 
 timber and in constructing and navigating rafts, so as to help the inhabitants of the dis- 
 trict in their livelihood. In the event of the engagement of a person of any other national- 
 ity, the consent of the superintendent must be obtained. 
 
 " 21. — Although the timber business is to be conducted by the Company, Chinese timber 
 brokers may continue their business as heretofore but at the proper time they must make 
 satisfactory arrangements with the Company. 
 
 " SUPPLEMENTARY AGREEMENT 
 
 " 1. — The Chinese Dollars mentioned in Clause 4 of the main Agreement are Peiyang 
 Dollars. Hereafter, should the Manchurian dollar obtain a stable circulation the change 
 from Peiyang to Manchurian dollars will be discussed. 
 
 "(b) The original capital may be subscribed in Taels to be converted into Peiyang 
 Dollars at the current rate of the day of the inauguration of the Company. 
 
 " 2. — In accordance with Article VI of the Peking Agreement timber required by the 
 Chinese Government or Chinese yainens or offices will be furnished by the Company at the 
 cost of labor plus the duty. The Company may charge in addition the amount of the wages 
 of its employees. 
 
 " 3. — The initial outlay for the establishment of the Company not exceeding $70,000 
 will be temporarily advanced by the two Governments. 
 
 "4. — Requests to the banks for providing money, will be signed jointly by the two Chief 
 Managers. 
 
 " 5. — China will make necessary arrangements for any police work required by the 
 Company. 
 
 " 6. — The above arrangements are provisional but when the Company is turned into a 
 mercantile association, if found satisfactory they may be continued. 
 
 "(b) At the time of handing over the Company to the merchants the question as to 
 which officials in the employ of the Company are to be retained and which dropped will be 
 continued. 
 
 " (Signed and sealed 11th September, 1908.) "
 
 NUMBER 1908/9 : MAY 19, 1908 735 
 
 NUMBER 1908/9. 
 
 JAPAN AND THE UNITED STATES. 
 
 Convention for the reciprocal protection of inventions, designs, trademarks and 
 copyrights in China*— May 19, 1908. 
 
 The President of the United States of America and His Majesty the Emperor 
 of Japan being desirous to secure in China reciprocal protection for the inventions, 
 designs, trade marks and copyrights of their respective citizens and subjects have 
 resolved to conclude a convention for that purpose and have named as their Pleni- 
 potentiaries, that is to say : 
 
 The President of the United States of America, Robert Bacon, Acting 
 Secretary of State of the United States ; and 
 
 His Majesty the Emperor of Japan, Baron Kogoro Takahira, Shosammi, 
 Grand Cordon of the Imperial Order of the Rising Sun, His Ambassador Extraor- 
 dinary and Plenipotentiary to the United States of America ; 
 
 Who, after having communicated to each other their Full Powers, found 
 to be in good and due form, have agreed upon and concluded the following 
 articles : 
 
 Article I. — Inventions, designs and trade marks duly patented or registered 
 by citizens or subjects of one High Contracting Party in the appropriate office 
 of the other Contracting Party shall have in all parts of China the same protec- 
 tion against infringement by citizens or subjects of such other Contracting Party 
 as in the dominions and possessions of such other Contracting Party. 
 
 Article II. — The citizens or subjects of each of the two High Contracting 
 Parties shall enjoy in China the protection of copyright for their works of litera- 
 ture and art as well as photographs to the same extent as they are protected 
 in the dominions and possessions of the other party. 
 
 Article HI. — In case of infringement in China by a citizen or subject of 
 one of the two High Contracting Parties of any invention, design, trade mark or 
 copyright entitled to protection in virtue of this convention the aggrieved party 
 shall have in the competent territorial or consular courts of such Contracting 
 Party the same rights and remedies as citizens or subjects of such Contracting 
 Party. 
 
 Article IV. — Each High Contracting Party engages to extend to the citizens 
 or subjects of the other Contracting Party the same treatment in China in the 
 matter of protection of their commercial names as they enjoy in the dominions 
 and possessions of such Contracting Party under the convention for the protec- 
 tion of industrial property signed at Paris March 20, 1883. " Hong " marks 
 shall be considered to be commercial names for the purpose of this convention. 
 
 Article V. — Citizens of possessions belonging to the United States and 
 
 *Text as printed in U. S. Treaty Series, No. 507. Printed also in Malloy, p. 1043; Am. 
 Int. Law Journal, Supplement, 1908, p. 353; Traites et Conventions, Supplement, p. iv.
 
 736 CHINA TREATIES AND AGREEMENTS 
 
 subjects of Korea shall have in China the same treatment under the present 
 convention as citizens of the United States and subjects of Japan respectively. 
 
 Article VI. — It is mutually agreed between the High Contracting Parties 
 that the present convention shall be enforced so far as applicable in any other 
 country in which either Contracting Party may exercise extraterritorial juris- 
 diction. 
 
 All rights growing out of the present convention shall be recognized in the 
 insular and other possessions and leased territories of the High Contracting 
 Parties and all legal remedies provided for the protection of such rights shall 
 be duly enforced by the competent courts. 
 
 Article VII. — Any person amenable to the provisions of this convention 
 who possesses at the time the present convention comes into force merchandise 
 bearing an imitation of a trade mark owned by another person and entitled to 
 protection under said convention shall remove or cancel such false trade mark 
 or withdraw such merchandise from market in China within six months from the 
 date of the enforcement of this convention. 
 
 Article VIII. — Unauthorized reproductions by the citizens or subjects of 
 one High Contracting Party prior to the operation of this convention of the 
 works of literature and art as well as photographs of the citizens or subjects of 
 the other Contracting Party published after the 10th day of May, 1906, and en- 
 titled to protection in virtue of this convention shall be withdrawn from sale or 
 circulation in China within one year from the date of the enforcement of this 
 convention. 
 
 Article IX. — The present convention shall be ratified and the ratifications 
 thereof shall be exchanged at Tokyo as soon as possible.f It shall come into 
 force together with the convention relative to the protection of inventions, de- 
 signs, trade marks and copyrights in Korea, ten days after such exchange of 
 ratifications. 
 
 In witness whereof, the respective Plenipotentiaries have signed the present 
 convention in duplicate and have thereunto affixed their seals. 
 
 Done at the City of Washington the 19th day of May in the nineteen 
 hundred and eighth year of the Christian era corresponding to the 19th day of the 
 5th month of the 41st year of Meiji. 
 
 Robert Bacon [seal.] 
 K. Takahira [seal.] 
 
 t Ratifications exchanged August 6, 1908.
 
 NUMBER 1908/10: MAY 30, 1908 737 
 
 NUMBER 1908/10. 
 
 INTERNATIONAL AND CHINA. 
 Revised regulations for arms and ammunition* — May 30, 1908. 
 
 1°. — Military Arms and Ammunition. — Before arms and ammunition are 
 imported by any department of the Chinese Government, the particulars (denom- 
 ination, number of packages, port of entry, destination, etc.) must be telegraphed 
 to the Ministry of War (Lu-chiin Pu) by the Tartar General, Viceroy, or Gov- 
 ernor concerned, who may issue the necessary Hiichao only after receipt of the 
 Ministry's telegraphic approval. These particulars will be sent on to the Shui-wu 
 Ch'u by the Ministry for transmission to the Superintendents and — through the 
 Inspector General — to the Commissioners of Customs concerned. Permission to 
 land such cargo will then be given, provided that the number of packages is found 
 to be in agreement with the Hiichao. The date of actual importation is to be 
 reported in every instance to the Shui-wu Ch'u, for transmission to the ^Ministry 
 of War. 
 
 2°. — Samples of Military Arms and Ammunition. — Foreign merchants 
 desiring to import samples of arms and ammunition for exhibition to Chinese 
 Government departments must obtain from the Superintendent of Customs, 
 through their Consuls, a Permit to Import, upon presentation of which at the 
 Custom House, together with the Application, permission to release will be 
 given. 
 
 On each occasion not more than four rifles of any one kind and ammunition 
 for same not exceeding two thousand rounds in all may be imported. 
 
 The merchant concerned is to give a bond to the Customs guaranteeing that 
 the samples in question will not be sold to any person whatever. Such samples 
 of arms, etc., must be produced for Customs inspection whenever demanded. 
 
 In the event of suspicious circumstances the Superintendent of Customs 
 can refuse to issue a Permit, informing the Consul in writing of his decision. 
 
 3°. — Arms and Ammunition for Self-defence. — (a.) Every respectable 
 foreigner entering China from abroad, by sea or land, may carry in his luggage 
 for self-defence one pistol and one revolver and a supply of cartridges for the 
 same not exceeding five hundred rounds in all, but must declare them at. time of 
 entry to the Customs, who will release them after examination. Any contra- 
 vention of this provision entails confiscation of the arms, etc., not declared. 
 
 (&.) Every respectable foreign resident in China desiring to import arms 
 and ammunition for self-defence must, previous to their importation, obtain 
 
 * Translation (from Chinese text) furnished by the Inspectorate General of Customs, 
 as printed in the minutes of the Meeting of the diplomatic body at Peking, June 13, 1908. 
 Printed also in Inspectorate-General's Circular No. 1520 (Second Series), May 30, 1908. 
 
 These regulations were adopted at the instance of the diplomatic body, in amendment 
 of Rule III appended to the revised import tarifif of 1902 (here printed as an annex to the 
 American commercial treaty of October 8, 1903, No. 1903/5, ante). 
 
 See Note to this document, post, p. 740.
 
 738 CHINA TREATIES AND AGREEMENTS 
 
 from the Superintendent of Customs, through his Consul, a Permit to Import, 
 upon presentation of which at the Custom House, together with the Application, 
 permission to release will be given. Each person is allowed to import for self- 
 defence, once only during any one year, one pistol, one revolver, and a supply 
 of cartridges for same not exceeding five hundred rounds in all. 
 
 In the event of suspicious circumstances the Superintendent of Customs may 
 refuse to issue a Permit, informing the Consul in writing of his decision. 
 
 (c.) Foreigners, duly provided with passports, proceeding as travellers to 
 the interior of China, or to Tibet, Mongolia, Turkestan, etc., will be allowed 
 to carry with them, declaration having been duly made, arms and ammunition 
 for self-defence not exceeding twice the quantities fixed above. 
 
 (d.) No other arms may be imported by foreigners for self-defence under 
 the above provisions except pistols and short-barrelled revolvers carried on the 
 person. 
 
 The importation of any other kind of military and naval arms and ammu- 
 nition is only permitted (i) if they are for use as samples and covered by a 
 Permit to Import issued by the Superintendent of Customs, (ii) if they are 
 imported on behalf of Chinese Government departments, military, naval, or civil, 
 and covered by a genuine certificate which has been duly recognised by the 
 Superintendent of Customs. 
 
 Foreigners must not fraudulently import military arms and ammunition 
 under pretext of their being for personal use. 
 
 4°. — Sporting Arms and Ammunition, — (a.) Every respectable foreigner 
 entering China from abroad, by sea or land, may carry in his luggage not more 
 than three sporting guns and a supply of cartridges for same not exceeding three 
 thousand rounds in all, but must declare them at time of entry to the Customs, 
 who will release them after examination and payment of duty. Any contra- 
 vention of this provision entails confiscation of the guns, etc., not so declared. 
 In the event of old guns being thus imported with fresh ammunition, both may 
 be passed free of duty. 
 
 (&.) Every respectable foreign resident in China desiring to import sporting 
 guns or cartridges must, previous to their importation, obtain from the Super- 
 intendent of Customs, through his Consul, a Permit to Import, upon presentation 
 of which at the Custom House, together with the Application, permission to release 
 will be given. 
 
 Each foreign resident is only allowed to import, once in any one year, a 
 number of sporting guns not exceeding three and a supply of cartridges for same 
 not exceeding three thousand rounds in all. In the event of suspicious circum- 
 stances the Superintendent of Customs can refuse to issue a Permit, informing 
 the Consul of his decision in writing. 
 
 (c.) Respectable foreign firms are permitted to import sporting shot-guns 
 and ammunition only, for which they must likewise obtain a Permit to Import 
 from the Superintendent of Customs through their Consuls. At the time of 
 importation they must also hand a bond to the Custom House guaranteeing that 
 ■such articles will not be sold, directly or indirectly, to law-breakers of any kind. 
 The number of sporting guns which may be thus imported by any one firm at
 
 NUAIBER 1908/10: MAY 30, 1908 739 
 
 one time is not to exceed six if ordered by specified persons, whose names and 
 addresses have to be reported to the Custom House on the Import Apphcation, but 
 may not exceed four if not so ordered and if bought for stock. Registers are 
 to be kept by the firm, in which are to be entered in detail the number of sporting 
 guns and ammunition thus imported, the names and addresses of the purchasers, 
 and the dates of deHvery. These registers will be open for Customs inspection 
 when called for. 
 
 The total number of all kinds of sporting cartridges combined imported 
 by a foreign firm in one consignment must not exceed ten thousand 
 rounds. 
 
 (d.) The expression " sporting guns and cartridges imported by foreigners " 
 refers exclusively to sporting shot-guns and ammunition for same. Military 
 arms and ammunition must not be fraudulently imported under any pretext. 
 
 5°. — Registers. — A special record of all importations of arms and ammu- 
 nition for the personal use of foreigners, giving the importer's name and national- 
 ity, the date, number of packages, etc., will be kept at every port by the Superin- 
 tendent as well as by the Commissioner of Customs, in which the amount of 
 duty collected in every instance will also be noted. Similarly, a special record 
 of arms and ammunition imported by or for the Chinese Government is to be 
 kept, giving the purchasing Government department, the provincial authority 
 which issued the Huchao and the number of such Huchao, the number of pack- 
 ages, etc. At the end of every year copies of these records will be submitted to 
 the Shui-wu Ch'u. 
 
 6°. — Prohibition on Importation of Military Arms and Ammunition. — 
 The importation of such military or naval arms and ammunition as have not 
 been purchased by Chinese Government departments, military, naval, or civil, 
 continues to be prohibited in accordance with the existing treaties. 
 
 7°. — Duty Treatment. — Duty at the rate of 5 per cent, ad valorem will 
 be collected on arms and ammunition imported under the provisions of rules 2°, 
 3°, and 4°. 
 
 8°. — Transhipment. — Permission to tranship at Shanghai arms and ammu- 
 nition imported for purposes of self-defence or sport by foreigners residing at 
 other ports will be given if the Shanghai Consul concerned applies to the Shanghai 
 Customs, giving the name of the purchaser and the number of packages. On 
 arrival of such transhipment cargo at the port of destination, the purchaser 
 will still have to obtain from the Superintendent of Customs, through his Consul, 
 the necessary Permit to Import to be presented with the cargo in question to 
 the Customs, who will release it after examination and payment of duty. 
 
 9°. — Provision against Abuses. — The above regulations, based on the new 
 rules drawn up by the Shui-wu Ch'u, have been revised in a liberal sense with a 
 view to obviating certain inconveniences pointed out by the Diplomatic Corps. 
 They are to come into force from the 1st July 1908, the beginning of the 192nd 
 quarter. Arms and ammunition imported before that date are to be dealt with 
 in accordance with the original regulations. 
 
 The present revised rules will be amended from time to time as required, 
 to provide against such abuses as may arise after they have come into operation,.
 
 740 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 A tenth (and additional) article, regarding the procedure for better control of arms 
 and ammunition stored by Foreign Merchants, was proposed by the Chinese Government 
 to the diplomatic body on November 20, 1915, and accepted by the dean in its behalf by 
 a note to the Wai Chiao Pu under date of January 5, 1916. The official English version is 
 as follows: 
 
 Tenth (Additional) Article of the revised Regulations for Arms and Ammunition 
 
 May 30, 1908. 
 
 " (o) With regard to fire-arms and ammunition, of any kind whatsoever, now in the 
 possession of foreign firms or merchants — with the exception of revolvers for personal self- 
 defence or sporting guns, as also ammunition for the said revolvers and sporting guns, as 
 well as samples of arms and ammunition, no matter where they are stored (foreign settle- 
 ments included) or when and under what authority they were imported, the owner, holder, 
 or agent shall report to the Customs before the 31st January, 1916, the exact numbers held 
 by him and deliver a bond testifying that these numbers are correct. Should the report 
 not be made out within the above time limit or should a false report be made out, on dis- 
 covery or denunciation of the fact the stock shall be confiscated to the Chinese Govern- 
 ment. If it is necessary for Chinese officials to enter a Settlement for purposes of inspec- 
 tion, an official communication may be addressed to the foreign officials of the Settlement 
 requesting their assistance. Inspection shall be efifected by the competent foreign authorities 
 at the request of the Chinese officials; the latter shall be allowed when it is deemed 
 necessary to attend the said inspection. 
 
 " ib) After the Customs Officers have verified the exact figures of the quantity of 
 arms and ammunition declared and guaranteed as correct by the owner, holder, or agent 
 of the arms and ammunition, a certificate shall be issued to the said owner, holder, or agent, 
 who will remove the exact quantity of arms and ammunition specified on the said certificate 
 to the Customs special warehouse. 
 
 " As regards warehouse charges and all such matters in this general connexion, the said 
 owner, holder, or agent must abide by the regulations governing the Customs warehouse 
 concerned. Such arms and ammunition may not be sold to other persons unless a Huchao 
 permitting it is issued by the Chinese Ministry of War or of Marine. 
 
 " (c) Any arms and ammunition that have already been imported into a Chinese port 
 by a foreign firm and that it is desired to forward to a foreign port shall be reported to the 
 Maritime Customs, and the Customs shall instruct the said merchant to deliver a bond 
 specifying the steamer by which they are to be shipped and the country they are sent to. 
 
 " (d) Whenever a foreign merchant vessel arrives at a Chinese port the munitions of 
 war carried by the said vessel for self-defence must be entered in a list, which is to be 
 signed by the master of the vessel and sent to the Customs for inspection. Should the 
 quantity of arms and ammunition actually carried by the vessel exceed the amount specified 
 in the list, then the matter shall be treated as a case of smuggling. When a merchant 
 vessel is about to depart the Customs officers should carefully ascertain whether the quantity 
 of munitions of war carried agrees with the list or not. 
 
 " (e) Arms and ammunition for foreign troops stationed in China are not affected by 
 the paragraphs (a) to (d) above." 
 
 NUMBER 1908/11. 
 
 SWEDEN AND CHINA. 
 
 Treaty of friendship, commerce and navigation (zvith additional article of May 
 
 24, 1909).''— July 2, 1908. 
 
 His Majesty the King of Sweden and His Majesty the Emperor of China, 
 desiring to maintain firm, lasting and sincere friendship and to extend further 
 
 * Official English text as published by the Swedish Government in Svensk Forfattings- 
 samling, 1909, No. 113. Printed also in Customs, vol. II, p. 97; Am. Int. Law Journal, 
 Supplement, 1910, p. 2>Z7 ; Tyau, p. 258; B. ^ F. State Papers, vol. 101 (1907-1908), p. 945.
 
 NUMBER 1908/11 : JULY 2, 1908 741 
 
 the commercial relations between their respective countries, and having resolved 
 to conclude a Treaty of Friendship, Commerce and Navigation, have for that 
 purpose named as their Plenipotentiaries, that is to say : 
 
 His Majesty the King of Sweden: 
 
 Gustaf Oscar Wallenberg, His Majesty's Envoy Extraordinary and Minister 
 Plenipotentiary at the Court of Peking, and 
 
 His Majesty the Emperor of China : 
 
 His Excellency Lien Fang, His Majesty's High Commissioner Plenipotentiary 
 and Senior Vice-President of the Wai Wu Pu ; 
 
 Who having communicated to each other their respective Full Powers, and 
 found them to be in good and due form, have agreed upon and concluded the 
 following Articles : 
 
 Article I. — There shall be, as there have always been, perpetual peace and 
 friendship between His Majesty the King of Sweden and His Majesty the Em- 
 peror of China, and between their respective subjects, who shall enjoy equally in 
 the respective countries of the High Contracting Parties full and entire pro- 
 tection of their persons and property. 
 
 Article H. — It is agreed by the High Contracting Parties that His Majesty 
 the King of Sweden may, if he see fit, accredit a Diplomatic Representative to 
 the Court of Peking, and His Majesty the Emperor of China may, if he see fit, 
 accredit a Diplomatic Representative to the Court of Stockholm. 
 
 The Diplomatic Representatives thus accredited shall enjoy all the preroga- 
 tives, privileges and immunities accorded by international usage to such Repre- 
 sentatives, and they shall also in all respects be entitled to the treatment extended 
 to similar Representatives of the most favoured nation. 
 
 Their persons, families, suites, establishments, residences and correspondence 
 shall be held inviolable. They shall be at liberty to select and appoint their 
 own employes, couriers, interpreters, servants and attendants without any kind 
 of molestation. 
 
 His Royal Swedish IMajesty's Representative shall be given audience of His 
 Majesty the Emperor of China whenever necessary to present his Letters of 
 Credence or any communication from the King of Sweden. His Imperial Chinese 
 Majesty's Representative shall be given audience of His Majesty the King of 
 Sweden whenever necessary to present his Letters of Credence or any communi- 
 cation from the Emperor of China. The ceremonial adopted at the Courts of 
 the High Contracting Parties as regards the Representatives above mentioned 
 shall conform in all respects with the usages of nations of equal rank, without 
 any loss of prestige on one side or the other. 
 
 The English text of all notes or despatches from Swedish officials, and the 
 Chinese text of all notes or despatches from Chinese officials, shall be authori- 
 tative. 
 
 Article III. — His Majesty the King of Sweden may appoint Consuls-Gen- 
 eral, Consuls, Vice-Consuls and Consular Agents to reside at such of the ports, 
 cities and towns of China, which are now or may hereafter be opened to for- 
 eign residence and trade, as the interests of the Kingdom of Sweden may require. 
 
 His Majesty the Emperor of China may appoint Consuls-General, Consuls,
 
 742 CHINA TREATIES AND AGREEMENTS 
 
 Vice-Consuls and Consular Agents to reside at all places in Sweden where Con- 
 sular officers of other nations are now or may hereafter be allowed to reside, as 
 the interests of the Empire of China may require. 
 
 The Consuls and other officials of the High Contracting Parties shall treat 
 each other with due respect, and they shall enjoy each in the other's country 
 all the attributes, authority, privileges and immunities, which are or may hereafter 
 be extended to similar officers of the most favoured nation. 
 
 On the arrival of a Consul, who has been duly appointed, at his post, it 
 shall be the duty of the Diplomatic Representative to inform the Minister of 
 Foreign Affairs, who shall in accordance with international usage forthwith issue 
 the proper recognition of the said Consul, without fee or charge. Such recogni- 
 tion, however, may be withdrawn, should it be found that the said Consul has 
 contravened international usage in the performance of his duties. At places 
 where no Consul is appointed as aforesaid, the Consul of a friendly nation may 
 be requested to perform the functions. At places where there is no Consular 
 Representative the local authorities shall see that the subjects of the other Con- 
 tracting Party enjoy the benefits of the present Treaty. 
 
 Article IV. — Chinese subjects may proceed to and from any place in Sweden 
 with their merchandise for purposes of trade. Swedish subjects may proceed 
 to and from any place in China which is now or may hereafter be opened to 
 foreign Commerce, with their merchandise for purposes of trade. The subjects 
 of the High Contracting Parties may in accordance with existing rules and with 
 the privileges enjoyed by subjects of the most favoured nation carry on trade, 
 industries and manufactures or pursue any other lawful avocations at all the 
 places above mentioned, rent or purchase houses for residence and for business 
 purposes, rent or lease land, build houses, churches, cemeteries and hospitals, 
 and take persons into their service and employ them in any lawful capacity 
 without restraint or hindrance from the local authorities. They shall in all respects 
 enjoy the same privileges and immunities as are now or may hereafter be granted 
 by the High Contracting Parties to the subjects of the most favoured nation. 
 
 Article V. — The Tariff and Tariff Rules f now in force, or hereafter con- 
 cluded, between China and the Foreign Powers shall be applicable to all articles 
 imported into China by Swedish subjects or from Sweden, or exported from 
 China by Swedish subjects or to Sweden. In no case shall the import or export 
 duty thus paid be other or higher than the duty on similar articles which is paid 
 by subjects of the most favoured nation. 
 
 The Tariff Rules now in force, or hereafter concluded, between China and 
 the Foreign Powers shall also be applicable to articles the importation and ex- 
 portation of which is prohibited, and to duty free articles. 
 
 Articles duly imported into China by Swedish subjects, upon which import 
 duty has been paid, and which it is desired to convey to an inland market and 
 to clear of all Transit duties by payment of a single commutation Transit tax 
 or duty ; and articles for export purchased in China elsewhere than at an open 
 port, upon which export duty has been paid, and which it is desired to clear of 
 
 t See tariff and rules, here printed as an annex to the American commercial treaty of 
 October 8, 1903 (No. 1903/5, ante).
 
 NUMBER 1908/11: JULY 2, 1908 743 
 
 all Transit duties by payment of a single commutation tax or duty; shall be 
 treated according to the existing Rules between China and the Foreign Powers. 
 The transit tax or duty shall in no case exceed that which is paid by subjects 
 of the most favoured nation. 
 
 Goods transported from one Treaty Port to another, or temporarily stored 
 in a bonded warehouse at a Treaty Port, or re-exported, by Swedish subjects, 
 shall be subject to the general Regulations now in force, or the new supplementary 
 Regulations v/hich may hereafter be negotiated, between China and the Foreign 
 Powers. 
 
 Chinese articles imported into Sweden, or articles of other nations imported 
 into Sweden by Chinese subjects, shall pay an import duty no higher or other 
 than that which is paid by the subjects of the most favoured nation. 
 
 The Chinese Authorities at the several open ports shall adopt such means as 
 they may judge most proper to prevent the revenue suffering from fraud or 
 smuggling. 
 
 Article VI.| — Swedish merchant vessels may proceed to all the Treaty Ports 
 of China already opened or which may hereafter be opened, for the transportation 
 of merchandise and for purposes of trade. They may also proceed to the inland 
 waters in China which foreign merchant vessels are at liberty to navigate, and to 
 the ports of call along the rivers for the purpose of landing and shipping pas- 
 sengers and goods. In all these matters they shall be subject to the Rules and 
 Regulations concluded by China with other foreign powers. 
 
 If a Swedish vessel should unlawfully enter ports other than open ports and 
 ports of call in China, or carry on clandestine trade along the coast or rivers, the 
 vessel with her cargo shall be subject to confiscation by the Chinese Government. 
 
 Chinese merchant vessels may proceed to and from any of the harbours in 
 Sweden which other foreign merchant vessels are at liberty to frequent, for pur- 
 poses of trade and for the shipping and landing of passengers and goods. 
 
 The merchant vessels of the High Contracting Parties shall enjoy most 
 favoured nation treatment in each other's dominions. 
 
 Merchant vessels of the High Contracting Parties may hire boats in each 
 other's ports for the conveyance of passengers and goods, and may engage the 
 services of pilots for the purpose of entering or leaving port. They shall pay 
 the tonnage dues or other fees or charges according to the existing Regulations 
 in the two countries, but they shall not be required to pay other or higher tonnage 
 dues or fees or charges than the vessels of the most favoured nation. Should a 
 vessel of either of the High Contracting Parties be stranded or wrecked on the 
 coast of the other, the local authorities shall immediately adopt measures for 
 rescuing the passengers and crew and to give the most favoured nation treatment. 
 In the case of a vessel sustaining injury, or being compelled for other reason to 
 seek a place of refuge, such vessel shall be permitted to enter any near port and to 
 anchor there temporarily, without being subject to the payment of tonnage dues. 
 The cargo, if landed in order to effect the necessary repairs to the vessel, but not 
 for sale, shall not be liable to pay duties, provided that it remains under the super- 
 vision of the Customs Authorities. 
 
 tin connection with this article, see the additional article of May 24, 1909 (p. 747).
 
 744 CHINA TREATIES AND AGREEMENTS 
 
 Article VII. — The vessels of both the High Contracting Parties, which are 
 at liberty to trade freely at open ports in time of peace, shall, in the event of 
 either of the High Contracting Parties being at war with any foreign nation 
 and for that reason excluding the vessels of that nation from her ports, be 
 entitled none the less to continue to pursue their commerce in freedom and 
 security and to transport goods to and from the ports of the belligerent powers, 
 full respect being paid to the neutrality of the flag in strict compliance with 
 the usages of neutrality, provided that the said neutral flag shall not protect 
 vessels engaged in the transportation of troops, and that the said flag shall not 
 be illegally used to enable the enemy's ships with their cargoes to enter the 
 ports of the High Contracting Party concerned. Vessels offending against 
 the above provisions shall be subject to confiscation by the Government offended. 
 
 Article VIII. — The ships of war of either of the High Contracting Parties, 
 provided previous notice has been given, shall be admitted into the ports of the 
 other, where such vessels of other nations are allowed to enter, and shall receive 
 the same treatment as ships of war of the most favoured nation. They shall 
 receive from the local Authorities every facility for the purchase of coal and 
 provisions, for procuring water, and if occasion requires, for the making of 
 repairs. 
 
 Ships of war shall be exempt from the payment of all duties both on arrival 
 and departure. 
 
 The Commanders of ships of war shall hold intercourse with the superior 
 officers of ports on terms of equality. 
 
 Article IX. — Swedish subjects may travel to all parts of the interior of 
 China under passports issued by Swedish Consuls and countersigned by the 
 local authorities. These passports, if demanded, must be produced for examina- 
 tion in the localities passed through. If the passports be not irregular, the 
 bearers will be allowed to proceed and they shall be at liberty to hire persons, 
 animals, carts or vessels for their own conveyance or for the carriage of their 
 personal effects or merchandise. If the Swedish subjects be without passports 
 or if they commit any offence against the law, they shall be handed over to the 
 nearest Consul for punishment; but they shall only be subject to necessary 
 restraint and in no case to ill usage. Such passports shall remain in force for 
 a period of twelve months from the date of issue. Swedish subjects travelling 
 in the interior without passports shall be liable to a fine not exceeding three 
 hundred taels. They may, however, go without passports on excursions from 
 any of the ports open to trade, to a distance not exceeding one hundred Chinese 
 li and for a period not exceeding five days. The provisions of this Article do not 
 apply to crews of ships. 
 
 Chinese subjects shall be at liberty to travel throughout the territory of 
 Sweden, provided that they conduct themselves peaceably and do not violate the 
 laws and regulations of the country. 
 
 Article X. — The duly authorized Swedish Authorities shall hear and decide 
 all cases brought against Swedish subject by Swedish subjects, or by the subjects 
 or citizens of any other foreign Power, without the intervention of the Chinese 
 Authorities.
 
 NUMBER 1908/11: JULY 2, 1908 745 
 
 However, as China is now engaged in reforming her judicial system it is 
 hereby agreed that as soon as all other Treaty Powers have agreed to relinquish 
 their extra-territorial rights, Sweden will also be prepared to do so. 
 
 Charges or complaints of a civil nature brought by the subjects of either of 
 the High Contracting Parties against the subjects of the other shall be heard and 
 decided impartially by the Authorities who have jurisdiction over the defendants, 
 in accordance with the procedure observed in similar charges or complaints 
 brought by subjects of the most favoured nation. 
 
 Subjects of either of the High Contracting Parties charged with the commis- 
 sion of any crimes or offences shall be tried by the Authorities who have juris- 
 diction over the accused with the procedure observed in similar cases of the most 
 favoured nation, and, if found guilty, shall be punished in accordance with the 
 laws of their own country. 
 
 Article XI. — If Swedish subjects in China, who have committed offences or 
 have failed to discharge debts and fraudulently abscond in order to evade a sum- 
 mons or a warrant of arrest, should flee to the interior of China or take refuge in 
 houses occupied by Chinese subjects or on board Chinese ships, the Chinese 
 Authorities shall, at the request of the Swedish Consul, deliver them to the 
 Swedish Authorities. 
 
 In like manner, if Chinese subjects in China, who have committed offences or 
 have failed to discharge debts and fraudulently abscond, should take refuge in 
 houses occupied by Swedish subjects in China or on board Swedish ships in 
 Chinese waters, they shall be delivered up at the request of the Chinese Authori- 
 ties made to the Swedish Authorities. 
 
 Such offenders shall in no case be shielded or withheld from arrest by either 
 of the High Contracting Parties. 
 
 Article XII. — The principles of the Christian religion, as professed by the 
 Protestant and Roman Catholic churches, are recognized as teaching men to do 
 good and to do to others as they would have others to do to them. Those who 
 quietly profess and teach these doctrines shall not be harassed or persecuted on 
 account of their faith. Any person, whether Swedish subject or Chinese convert, 
 who, according to these tenets, peaceably teaches and practises the principles of 
 Christianity shall in no case be interfered with or molested therefor. No restric- 
 tions shall be placed on Chinese joining Christian Churches. Converts and non- 
 converts, being Chinese subjects, shall alike conform to the laws of China; and 
 living together in peace and amity, shall pay due respect to those in authority. 
 The fact of being a convert shall not protect a Chinese subject from the conse- 
 quences of any offence he may have committed before or may commit after his 
 admission into the church, or exempt him from paying legal taxes levied on 
 Chinese subjects generally, except taxes and contributions levied for the support 
 of religious customs and practices contrary to their faith. Missionaries shall not 
 interfere with the exercise by the native authorities of their jurisdiction over 
 Chinese subjects; nor shall the native authorities make any distinction between 
 converts and non-converts, but shall administer the laws without partiality so 
 that both classes may live together in peace. 
 
 Swedish missionary societies shall be permitted to rent and to lease in per-
 
 746 CHINA TREATIES AND AGREEMENTS 
 
 petuity, as the property of such societies, buildings or lands in all parts of the 
 Empire for missionary purpose, and, after the title deeds have been found in 
 order and duly stamped by the local authorities, to erect such suitable buildings 
 as may be required for carrying on their good work. 
 
 Article XIII. — It is hereby declared that the provisions of the Treaty now 
 existing between Sweden and China, in so far as they are not modified by stipula- 
 tions of the present Treaty, shall continue in full force, and it is further expressly 
 stipulated that the Governments, Officers and Subjects of both of the High Con- 
 tracting Parties shall be allowed free and full participation in all privileges, 
 immunities, and advantages which have been or may hereafter be granted by 
 either of the High Contracting Parties to the Governments, Officers and Subjects 
 of any other Treaty Powers, in regard to commerce, navigation, shipping, indus- 
 tries or property. 
 
 The High Contracting Parties reserve to themselves the right to conclude 
 agreements regarding frontier trade with neighbouring countries, and it is under- 
 stood that, in case either of the High Contracting Parties should hereafter grant 
 to any other nation advantages subject to special conditions, the other High Con- 
 tracting Party shall enjoy said advantages only provided it complies with the 
 conditions imposed therein or their equivalent, to be mutually agreed upon. 
 
 Article XIV. — The Agreements, Rules and Regulations subsisting between 
 and binding both China and the Treaty Powers, so far as they are applicable and 
 not inconsistent with the provisions of this Treaty, shall be binding on both of 
 the High Contracting Parties. 
 
 Article XV. — It is agreed that either of the High Contracting Parties may 
 demand a revision of the Articles of this Treaty at the end of ten years from the 
 date of the exchange of the ratifications ; but if no such demand for the revision 
 is expressed on either side within six months after the end of the first ten years, 
 then the Treaty in its present form shall remain in force for ten years more, 
 reckoned from the end of the preceding ten years, and so it shall be at the end 
 of each successive period of ten years. 
 
 Article XVI. — This Treaty, shall on the exchange of ratifications by His 
 Majesty the King of Sweden and by His Majesty the Emperor of China, be kept 
 and sacredly guarded in the following manner, viz : 
 
 The original Treaty as ratified by the Emperor of China shall be deposited 
 at Stockholm, the capital of His Majesty the King of Sweden, in charge of the 
 Ministry of Foreign Afifairs ; and as ratified by the King of Sweden shall be 
 deposited at Peking, the capital of His Majesty the Emperor of China, in charge 
 of the Wai-Wu-Pu. 
 
 The High Contracting Parties agree that immediately after the exchange of 
 ratifications, the provisions of this treaty shall be published in order that the 
 officials and people of the two countries may know and observe them. 
 
 Article XVII. — The present Treaty is signed in the Swedish, Chinese and 
 English languages. In order, however, to prevent future discussions, the Pleni- 
 potentiaries of the High Contracting Parties have agreed that in case of any 
 divergence in the interpretation between the Swedish and Chinese text of the 
 Treaty, the difiference shall be settled by reference to the English text.
 
 NUMBER 1908/12: OCTOBER 8, 1908 747 
 
 The ratifications of this Treaty, under the hand of His Majesty the King 
 of Sweden and of His Majesty the Emperor of China respectively, shall be 
 exchanged at Peking within a year from the date of signature. § 
 
 In token whereof the respective Plenipotentiaries have signed and sealed this 
 Treaty — two copies in Swedish, two in Chinese and two in English. 
 
 Done at Peking, this second day of July in the Year of Our Lord One Thou- 
 sand Nine Hundred and Eight corresponding with the Chinese date the Fourth 
 Day of the Sixth Moon of the Thirty-Fourth Year of Kwang Hsu. 
 
 (Signed) G. O. Wallenberg. Lien Fang. 
 
 ADDITIONAL ARTICLE. 
 
 The following additional article which has to-day been concluded and signed 
 by the undersigned Gustaf Oscar Wallenberg, His Swedish Majesty's Envoy 
 Extraordinary and Minister Plenipotentiary at the Court of Peking, and by His 
 Excellency Lien Fang v. President of the Wai-Wu-Pu, both being duly authorised 
 thereto by their respective Governments, shall form part and be appended to the 
 Treaty between Sweden and China which was signed and concluded at Peking on 
 the 2nd of July 1908, corresponding with the Chinese date the Fourth Day of the 
 Sixth Moon of the Thirty-Fourth Year of Kwang Hsu. 
 
 Additional Article : — It is expressly agreed by the High Contracting 
 Parties, that the provisions of Article IV of the present Treaty shall in no respect 
 whatever confer upon Swedish subjects in China or upon Chinese subjects in 
 Sweden any privileges or immunities, other than those already granted or which 
 may hereafter be granted to the subjects or citizens of the most favoured nation. 
 
 Done at Peking, May twenty fourth in the Year of Our Lord One Thousand 
 Nine Hundred and Nine corresponding with the Chinese date sixth day of the 
 fourth moon of the first year of Hsuan Tung. 
 
 (Signed) G. O. Wallenberg. Lien Fang. 
 
 NUMBER 1908/12. 
 
 FRANCE (Banque de ITndo-Chine), GREAT BRITAIN (Hongkong & Shang- 
 hai Banking Corporation) AND CHINA. 
 
 Agreement for a loan of £5,000,000 to the Board of Posts and Communica- 
 tions.''— October 8, 1908. 
 
 This agreement is made between the Board of Posts and Communications at 
 Peking, acting for and on behalf of the Imperial Government of China under 
 
 *Text as printed in Wang, p. 79. Printed also in For. Rel, 1908, p. 203. 
 
 The primary purpose of this loan was the redemption of the Peking-Hankow Railway 
 loan issued under the contract of June 26, 1898 (No. 1898/13, ante). See also the prospectus 
 of the seven per cent. Peking-Hankow Railway redemption loan of the same date (No. 
 1908/13, post). 
 
 § Ratifications were exchanged at Peking, June 14, 1909.
 
 748 CHINA TREATIES AND AGREEMENTS 
 
 the authority of an Imperial Edict dated the fourteenth day of the ninth month 
 of the thirty-fourth year of the Emperor Kuang-hsii (being the 8th day of 
 October 1908), hereinafter called the Board, of the one part, and the Hongkong 
 and Shanghai Banking Corporation and the Banque de I'lndo-Chine, hereinafter 
 called the Contracting Banks, of the other part. 
 
 1. — The Imperial Chinese Government hereby authorizes the contracting 
 Banks, either by themselves or associated with others, to issue an Imperial Chi- 
 nese Government Gold Loan, in one issue, of the amount of Five million pounds 
 sterling. 
 
 Of the proceeds of this loan the Imperial Chinese Government will employ 
 eighty per cent in Europe to complete the redemption of certain railway loans; 
 the balance of the proceeds, namely twenty per cent, will be employed by the 
 Board of Posts and Communications in productive works of public utility com- 
 ing within the Department and functions of that Board. 
 
 2. — The term of the loan shall be thirty years, and the principal shall be 
 repaid to the bondholders in twenty equal annual instalments of Two hundred 
 and fifty thousand pounds (£250,000) commencing with the eleventh year; but 
 the Imperial Chinese Government on giving a previous notice of six months to 
 the contracting Banks, shall have the right to redeem the whole loan, or increase 
 the regular redemption by extra drawings, after the fifteenth year and up to the 
 twenty-third year inclusive by the payment of a premium of two and one half 
 per cent upon the par value of each extra bond so redeemed, that is to say by the 
 payment of £102.10 for each ilOO bond, and shall have the right to redeem the 
 whole loan or increase the regular redemption by extra drawings, after the 
 twenty-third year at par. Any such extra drawings must take place in Europe 
 on the date of an ordinary drawing provided for in the Prospectus of the loan. 
 
 3. — The loan shall bear interest during the first fifteen years at the rate of 
 five per cent per annum, and thereafter from the sixteenth year, at the rate of 
 four and one half per cent per annum on the nominal principal from time to time 
 outstanding, and the interest shall be paid to the bondholders half-yearly. The 
 interest shall commence from the date on which the loan is issued to the public, 
 and will cease upon complete redemption of the loan. 
 
 4. — The service of principal and interest of this loan due to the bond- 
 holders shall be paid in equal shares to the contracting Banks in Shanghai by 
 the Board, who will hand to those Banks, ten days before the due date 
 of every yearly payment of principal and half-yearly payment of interest as 
 calculated from the date of issue of the loan, funds in Shanghai sycee 
 sufficient to meet each payment in gold in Europe, the exchange for which 
 will be settled by the contracting Banks on the same day on a fair basis 
 after arrangement with the Board ; but the Board will have the option of settling 
 exchange in equal shares with the two contracting banks at any date or dates with- 
 in six months previous to the due date of any payment. These payments may be 
 made in gold in Europe should the Imperial Chinese Government have funds in 
 Europe at its disposal, not remitted for the purpose, and desire so to employ 
 them. 
 
 In reimbursement of expenses connected with the payment of interest and
 
 NUMBER 1908/12: OCTOBER 8, 1908 749 
 
 the repayment of principal of the loan to the bondholders, the Board will pay to 
 the contracting banks with each payment of the loan service a commission of two 
 per mille on such payment, that is to say a commission of i2 on every ilOOO. 
 
 5. — The service of principal and interest of this loan will be paid from the 
 surplus revenues of the various productive works of public utility controlled by 
 the Board of Posts and Communications ; in the event of these surplus revenues 
 being insufficient, other revenues will be selected to make up the deficiency. 
 
 The Board will further, from and after the date of the first coupon, and 
 during the currency of this loan, leave on fixed deposit in equal shares with the 
 two contracting banks in Shanghai, the estimated silver equivalent of the pay- 
 ment of interest next due. In like manner, from and after the end of the 
 tenth year, the Board will also leave on fixed deposit with the contracting 
 banks in Shanghai the estimated silver equivalent of the instalment of principal 
 next due. These fixed deposits will be renewed and adjusted half yearly on 
 the dates on which interest coupons become due to the bondholders, the silver 
 equivalents of interest and/or principal which they represent being calculated 
 at the rate of exchange or average rate of exchange, settled for the remittance of 
 loan service made ten days previously. Interest on these deposits shall be allowed 
 by the contracting Banks at their advertised rates for the time being for twelve 
 months fixed deposits, subject to any change of rate from the date of such 
 change and will be payable half-yearly. 
 
 6. — The contracting Banks shall issue, and are hereby authorised to issue 
 to subscribers to the loan, bonds for the total amount of the loan in gold, in such 
 languages and for such amounts as shall appear advisable to the contracting 
 Banks. The form of the bonds shall be decided in consultation with the Chinese 
 Ministers in London and Paris, who shall seal the bonds with their official seals 
 as evidence that the Imperial Chinese Government is bound thereby. 
 
 Cancelled bonds will be handed by the contracting Banks to the Chinese 
 Minister in London or Paris. 
 
 In the event of bonds issued for this loan being lost, stolen or destroyed, 
 the contracting Banks shall immediately notify the Chinese Minister in London or 
 Paris thereof, who shall authorise the contracting Banks to insert an advertise- 
 ment in the public newspapers notifying that payment of the same has been 
 stopped, and to take such other steps as required by the laws of the country. 
 Should such bonds not be recovered after the lapse of time provided by the 
 law, the Banks will require from the claimants the requisite guarantees together 
 with proof of loss in the usual form for examination by the Chinese Minister in 
 London or Paris as the case may be, who will then, without further authority 
 from the Chinese Government, seal and execute duplicate bonds for a like 
 amount, and hand them to the contracting Banks, by whom all expenses in con- 
 nection therewith shall be defrayed. 
 
 Coupons and drawn bonds not presented for payment within thirty years 
 after the date of their maturity shall be forfeited to the Imperial Chinese 
 Government. 
 
 7. — The Imperial Chinese Government hereby unconditionally guarantees 
 and declares itself responsible for the due payment of the principal and interest
 
 750 CHINA TREATIES AND AGREEMENTS 
 
 of this loan, which is further hereby secured by a first charge, free from all 
 encumbrances, upon the following provincial revenues : 
 
 Province of Chekiang. 
 
 House tax wine excise, pawn-shop licenses, title deeds tax, amounting per annum 
 
 to . . . ; Tls. 400,000 
 
 Old and new additional tax on salt, amounting per annum to 600,000 
 
 Province of Kiangsu. 
 
 New additional tax on salt, amounting per annum to Tls. 700,000 
 
 House tax, amounting per annum to 300,000 
 
 Province of Hupei. 
 Old and new additional tax on Szechuan and Huai Salt, amounting per annum to Tls. 600,000 
 Tax on tobacco, wine and sugar, house and land title deeds tax, amountmg per 
 
 annum to 400,000 
 
 Province of Chihli. 
 
 Tobacco, wine and miscellaneous Duties, amounting per annum to Tls. 800,000 
 
 Salt Commissioner's Treasury, revenue from additional salt tax, amounting 
 
 per annum to 200,000 
 
 New additional tax on salt, amounting per annum to 250,000 
 
 Total Kuping Tads 4,250,000 
 
 It is understood that the security of this loan over the above annual revenues 
 is limited to Kuping Taels Four millions two hundred and fifty thousand (Kuping 
 Taels 4,250,000) irrespective of collection; if more is collected it will not be 
 included in the security. 
 
 In the event of default of payment of any installment of principal and/or 
 interest of this loan at due date, the Imperial Chinese Government will instruct 
 the provincial authorities in control of the said provincial revenues to hand them 
 over to the contracting Banks. 
 
 So long as this loan or any part thereof shall be unredeemed, it shall have 
 priority, both as regards principal and interest, over all future loans, charges and 
 mortgages charged on the said security of the provincial revenues herein assigned. 
 No loan, charge or mortgage shall be raised or created which shall take prece- 
 dence of or be on an equality with this loan, or which shall in any manner lessen 
 or impair its security over the said provincial revenues as stipulated above, and 
 any future loan, charge or mortgage charged on the said provincial revenues 
 shall be made subject to this loan, and it shall be so expressed in every agreement 
 for every such future loan, charge or mortgage. 
 
 8. — All bonds and coupons, and payments made and received in connection 
 with the service of this loan, shall be exempt from Chinese taxes and imposts. 
 
 9. — All details necessary for the Prospectus and connected with the service 
 to the bondholders of the interest and repayments of the principal of this loan, not 
 herein explicitly provided for, shall be left to the arrangement of the con- 
 tracting Banks, who shall issue and are hereby authorized to issue a Prospectus 
 of the loan. The Imperial Chinese Government will instruct the Chinese Ministers 
 in London and Paris to co-operate with the contracting Banks in any matters 
 requiring conjoint action, and the Chinese Ministers in London and Paris will 
 approve and sign the Prospectus of the loan. 
 
 10. — The contracting Banks hereby take this entire loan of Five million 
 pounds firm at the price of Ninety-four per cent (94 per cent) to the Chinese
 
 NUMBER 1908/12: OCTOBER 8, 1908 751 
 
 Government. Of the resulting net proceeds of this loan, namely Four million 
 seven hundred thousand pounds (£4,700,000), the sum of Three million seven 
 hundred and sixty thousand pounds (£3,760,000) will be held to the order of the 
 Board in Europe on the tenth day of December 1908, and the balance, namely 
 Nine hundred and forty thousand pounds (£940,000) will be held to the order of 
 the Board in Europe on the fifth day of February, 1909. 
 
 Transfers of the loan funds to China will be made by the contracting 
 Banks at rates of exchange which wull be settled on a fair basis after ar- 
 rangement with the Board. The Board will give to the contracting Banks ten 
 days previous notice of the transfer to China of any sum exceeding £20,000. 
 
 If any of the loan funds are left on deposit with the contracting Banks in 
 London or Paris, interest will be allowed at rates to be settled by mutual arrange- 
 ment between the contracting Banks and the Board. 
 
 11. — All expenses in connection with the flotation and issue of this loan, such 
 as underwriting, commission and brokerage telegraph charges, advertising, postage, 
 printing of Prospectus and bonds, stamp duty and legal fees, shall be borne by the 
 contracting Banks. 
 
 12. — In the event of an extraordinary political or financial crisis in Europe 
 or elsewhere, by which the prices of Chinese, British or French securities become 
 so seriously affected as to render it impossible to float this loan on the terms 
 herein named, the contracting Banks shall have the right to withdraw from 
 this contract, which shall in that case become null and void, subject to any 
 arrangement between the contracting parties for an extension of time. 
 
 13. — The Hongkong and Shanghai Banking Corporation and the Banque de 
 ITndo-Chine shall take the loan in equal shares and without responsibility for 
 each other, 
 
 14. — This agreement is signed under the authority of an Imperial Edict 
 dated the fourteenth day of the ninth month of the thirty-fourth year of the 
 Emperor Kuang-hsii (being the 8th day of October, 1908) which will be officially 
 communicated without delay by the Wai-wu-pu to the Ministers for Great 
 Britain and France in Peking. 
 
 15. — Quadruplicate sets of this agreement are executed in English and 
 Chinese, one set to be retained by the Board, one set by the Wai-wu-pu, and 
 one set by each of the contracting Banks. In the event of any doubt arising 
 with regard to the interpretation of this contract, the English text shall rule. 
 
 Signed at Peking by the contracting parties this Fourteenth day of the Ninth 
 month of the Thirty fourth year of the Emperor Kuang Hsii, being the Eighth 
 day of October, One thousand nine hundred and eight, Western Calendar. 
 [Seal] For the [Seal of the BOARD OF POSTS 
 
 HONGKONG AND SHANGHAI AND COMMUNICATIONS] 
 
 BANKING CORPORATION, [Chinese Signatures] 
 
 Agents, 
 [Signed] E. G. Hillier. 
 J. McArthur. 
 [Seal and Signatures of the 
 
 BANQUE DE LTNDO-CHINE]
 
 752 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1908/13. 
 
 CHINA. 
 
 Prospectus of the Seven Per Cent Peking-Hankow Raihvay redemption loan 
 for $10,000,000.''— October 8, 1908.^ 
 
 1. — The Board of Posts and Communications, for the purpose of redeeming 
 the Peking-Hankow Railway, has decided to raise a loan to be called " The 
 Peking-Hankow Railway Redemption Loan." 
 
 2.— The total amount of the first issue of the Loan will be $10,000,000 (Ten 
 Million Dollars) payable in any kind of dollars obtaining currency. 
 
 3. — The Loan will bear interest at 7 per cent per annum payable half yearly, 
 in the 3rd and the 9th moon, either by the Committee in charge appointed 
 by the Board ; or by the Head and Branch Offices of the Chiao-tung Bank, 
 or by any of the Chinese Imperial Railway Offices, or by the Head Office 
 of the Chinese Imperial Telegraph Administrations and its branch offices, 
 or by the Agents hereafter to be appointed for this service whose addresses 
 will be published in the newspapers. All the foregoing will be authorised 
 to pay the amount due for interest and extra dividend on presentation of 
 the Loan Bonds issued by the Board. 
 
 4. — In the event of the Chinese Government deriving a profit from the earnings 
 of the Peking-Hankow Railway, the Bondholders, besides the yearly interest 
 on the Loan, will also participate in this profit to be called extra dividend. 
 The capital of the line amounts to Tls. 58,000,000 (Fifty Eight Million 
 Taels). If in any year the Government's share of the profit should amount 
 to Tls. 4,000,000 (Four Million Taels), the Board will then reserve one 
 quarter of this sum, i.e. Tls. 1,000,000 (One Million Taels), for distribu- 
 tion as extra dividend which will be divided proportionately according to 
 the whole capital of fifty eight million taels. The Board will memorialize 
 the Throne and publish annually the amount of profit, % of which will 
 be made available for extra dividends. This privilege of participating in 
 the extra dividends does not however confer upon Bondholders the right 
 to interfere with or examine the accounts. 
 
 5. — The Loan is guaranteed by the Board of Posts and Communications which 
 undertakes to repay both the Capital and Interest under all circumstances. 
 In the event of a loss in the working of the Railway, Bondholders will not 
 be held liable for any such loss. 
 
 6. — A special Committee in charge of the Loan service shall be appointed by 
 
 the Board. The Head and Branch Offices of the Chiao-tung Bank and 
 
 all the Chinese Imperial Railway and Telegraph Offices are also authorised 
 
 to receive subscriptions for Bonds of this Loan. 
 
 * English text as published by the Board of posts and communications. See Note to 
 this document, post, p. 755. 
 
 t The date is that of the imperial edict sanctioning the prospectus.
 
 NUMBER 1908/13: OCTOBER 8, 1908 753 
 
 7. — The Loan :s fixed for a term of 12 years, and redeemable by annual draw- 
 ings commencing from the 8th year, and thereafter for 5 years to the 
 12th year. 
 8. — Interest on the Loan shall commence from the day following that on which 
 
 subscriptions are paid in at the Agencies. 
 9. — The drawn Bonds may, for commercial business, be circulated as dollars 
 of currency among the Head and all Branch Offices of the Chiao-tung 
 Bank established by the Board of Posts and Communications, as well as 
 at the Chinese Imperial Railway and Telegraph Offices and all the Rail- 
 way Stations. 
 
 10. — The Loan is issued in Bonds to Bearers regardless of holders' names and 
 they may be bought or sold freely. The Bearers of the Bonds are rec- 
 ognized only and all persons holding them will be treated in the same way 
 as native subjects and must obey the Regulations of this Prospectus. 
 
 11. — In the event of the loss or destruction of Bonds, such loss or destruction 
 will be treated in accordance with the regulations of the public Banks for 
 the loss of a Bank note. 
 
 12. — Bonds, the words or numbers of which have been either obliterated or 
 altered, are declared nil and useless. The Bonds are printed in the Chinese 
 language. 
 
 DETAILS. 
 
 1.— The first issue of the Loan will be for a sum of $10,000,000 (Ten Million 
 Dollars) to be divided into one hundred thousand Bonds of $100 (One 
 Hundred Dollars) each and numbered consecutively 1 — 100,000. 
 
 2. — The term of the Loan is for a period of 12 years with Interest payable 
 twice a year, so that there will be 24 periods for paying Interest. Separate 
 Interest Coupons are also given which are the only evidence recognized for 
 drawing Interest on each period. 
 
 3. — All Bonds are stamped on their faces with the Seal of the Board of Posts 
 and Communications. 
 
 4. — All Bonds are only marked with Numbers and not with the names of their 
 holders. They may be sold or bought freely, and are only recognized by 
 their Bearers. 
 
 5. — The Board of Posts and Communications will appoint a Committee to 
 control all the affairs of the Loan, and Agencies for other places will be 
 decided upon by the Board and made known to the public in due time by 
 advertisement in the newspapers. 
 
 6. — The dates of issuing, payment, and closing will be notified in the news- 
 papers by the Committee in charge at the order of the Board. 
 
 7. — The Loan is to be issued at par. Each Bond will be sold for $100 (One 
 Hundred Dollars) according to its face value, and will be redeemed also 
 at par. 
 
 8. — The Loan, after deducting the amounts contracted for by underwriters, is 
 to be raised from the public by Agents at different places. In the event
 
 754 CHINA TREATIES AND AGREEAIENTS 
 
 of any person or persons undertaking to underwrite for the whole amount 
 of the Loan, then there will be no necessity for soliciting subscriptions 
 from the public. 
 9. — Any one desiring to sell the Bonds on behalf of the Board must first 
 register his name at the Agent's office. 
 
 10. — On the closing of the applications, if the sum applied for just cover or be 
 under that required, then the full number of Bonds shall be allotted to 
 those who applied for that number. This rule excludes the underwriters. 
 
 11. — But if the number of Bonds applied for be over that required to be raised, 
 then the Bonds will be allotted proportionately to those who applied for 
 them. The allotment, which depends upon the total number of Bonds 
 applied for, can only be settled after the time of closing. This rule 
 excludes the underwriters. 
 
 12. — Interest on payments made after the date of issuing, but before the date 
 of closing, shall commence from the day following that on which such 
 payments are made. 
 
 13. — Payments are to be accepted in dollars of currency, and if it is paid with 
 silver in taels, the taels must be reduced into dollars according to the local 
 rate of exchange on that date. 
 
 14. — The Loan fund shall be deposited at the Chiao-tung Bank, and an account 
 of it kept for report to the Committee in charge who will draw on the 
 funds from time to time to meet expenditures, the balance to be treated 
 under the Bank regulations governing ordinary Cash deposits. 
 
 15. — The Interest of the Loan will be payable in two periods each year, i.e., on 
 the first day of the third and the ninth moon and may be drawn any time 
 after it becomes due, but if not drawn within three months after it is due, 
 it will be carried forward to the next period. The first payment of the 
 interest (depending upon the dififerent dates when Loan funds are paid), 
 shall be reckoned by the number of days. 
 
 16. — When Interest becomes due. Bondholders may receive or draw money in 
 dollars from the Agents. 
 
 17. — All payments of Interest will be paid with dollars of currency. 
 
 18. — In the payment of Interest, Coupons are the only proof required. When 
 ' Bondholders receive or draw their Interest and Extra Dividend they must 
 bring the Coupons and show them to the Agents. After being examined 
 and paid, the Coupons shall be stamped and returned to their owners. 
 
 19. — The amount of Extra Dividend for each Bond will be paid once a year 
 on the first day of the 9th moon together with the Interest payable on 
 that date. The Extra Dividend for the 1st year wnll commence from the 
 1st January, 1909 (Western Calendar), and distributed the following year 
 on the 1st day of the 9th moon (Chinese Calendar). 
 
 20. — The period of the Loan is for 12 years. Commencing from the date when 
 the Loan begins down to the end of the 7th year, interest only is to be 
 paid but not the Loan Capital. The Loan Capital will be repaid from the 
 8th year down to the end of the 12th year. The total number of Bonds 
 to be redeemed each year will be advertised 6 months in advance.
 
 NUMBER 1908/13: OCTOBER 8, 1908: NOTE 755 
 
 21. — Two months previous to the date of annual repayment of Loan Capital, 
 the drawing of the Bond numbers will take place. 100,000 tickets con- 
 secutively numbered will be put together into the same receiver and sepa- 
 rately drawn according to the amount of repayment required for that 
 year. For instance if $1,000,000 (One Million Dollars) are to be repaid, 
 10,000 (Ten Thousand) tickets must be drawn out. The Bonds will, when 
 drawn, be paid off. 
 
 22. — The drawn numbers will be published next day in the new^spapers and in 
 due time the Bondholders, on surrendering their Bonds to their respective 
 agents, will be paid in dollars. 
 
 23. — Bondholders, on their Bond numbers being drawn, must take all their 
 Bonds and interest Coupons when going to their respective agents for 
 money, in order that these may be cancelled after the money is paid and 
 sent to the Committee in charge for inspection. 
 
 24. — If after three years from the due date of payment, owners of drawn Bonds 
 fail to present their Bonds to the Agent for payment, the said Bonds will 
 be declared nil and void. 
 
 25. — Agents who, on behalf of the Board, sell the Bonds at or exceeding a value 
 of $10,000 (Ten Thousand Dollars) will be given a discount of >^%, at 
 or above $100,000 (One Hundred Thousand Dollars) 1%, at or above 
 $1,000,000 (One Million Dollars) 13^%, and at or above $3,000,000 
 (Three Million Dollars) 2%. 
 
 26. — Agents undertaking to contract for the loan for a sum of $10,000 (Ten 
 Thousand Dollars) or over will be given a discount of 1%, at or above 
 $100,000 (One Hundred Thousand Dollars) 13^%, at or above $500,000 
 (Five FTundred Thousand Dollars) 2%, at or above $1,000,000 (One Mil- 
 lion Dollars) 2>4%. 
 
 27. — Those who sell Bonds to the total value of $125,000 (One Hundred and 
 Twenty Five Thousand Dollars) will, besides their discount, be given 
 rewards for services rendered (by memorial), and special rewards will be 
 given (by memorial) to those who sell Bonds to the total value of $500,000 
 (Five Hundred Thousand Dollars). 
 
 28. — The Loan Bonds are to be purchased by the free will of the people and 
 must not be given to the local officials to force the rich gentry to buy 
 against their will. 
 
 Note. 
 
 In connection with this loan see also the Peking-Hankow Railway loan agreement of 
 June 26, 1898 (Nn. 1898/13, ante) : and the loan agreement between the Board of Com- 
 munications and the Hongkong & Shanghai Bank and the Banque de I'lndo-Chine, October 
 8, 1908 (Xo. 1908/12, ante). 
 
 It is understood that by an agreement with the Chiao-tung Bank (i.e., the Bank of 
 Communications) under date of August 1, 1910 — no text of which is available — Messrs. Dunn, 
 Fischer & Company, of London, purchased bonds of this redemption loan to the nominal 
 value of $5,000,000 : these bonds were thereafter floated by the company, jointly with the 
 London Citv and Midland Bank, as indicated by the following extracts from their prospectus 
 of September 24, 1910:
 
 756 CHINA TREATIES AND AGREEMENTS 
 
 "The List will open on Monday, the 26th day of September, 1910, and close on or before 
 Wednesday, the 28th day of September, 1910. 
 
 IMPERIAL CHINESE GOVERNMENT 7 PER CENT. PEKING-HANKOW 
 RAILWAY REDEMPTION LOAN. 
 
 (issued by the board of posts and communications.) 
 
 "Entitled in addition to the fixed interest of 7 per cent, to a partkipation in the profits result- 
 ing from the operation of the Railway, as mentioned herein. 
 
 "authorized by imperial edict of 8th OCTOBER, 1908. 
 
 "SALE OF £450,000 (STERLING) OF BONDS. 
 (part of the above loan.) 
 
 " represented by bond certificates as mentioned below. 
 
 " The total amount of the first issue of the Loan is $10,000,000 (Peking Currency), but in 
 respect of the $5,000,000 of Bonds (equal to £450,000 as above), the Board of Posts and 
 Communications of the Imperial Chinese Government has undertaken to guarantee the pay- 
 ment of Capital and Interest in sterling. This undertaking will be endorsed on every Bond. 
 
 "The Bonds are to Bearer in denominations of $100 (Peking Currency) each, the 
 equivalent being fixed at £9 (sterling). They are redeemable at par by annual drawings 
 during the period commencing in 1916 and ending in 1920. The number of Bonds to be 
 redeemed each year will be advertised six months in advance. The Principal and Interest 
 of the Bonds are payable free from all Chinese Taxes and Imposts, present or future. 
 
 " The Coupons are payable at the Chiao-tung Bank in Peking, half-yearly, on the 1st day 
 of the 3rd and 9th Moon of the Chinese Calendar. The extra dividend (if any) resulting 
 from the profits of operation of the railway will be paid on the 1st day of the 9th Moon of 
 each year. 
 
 "THE LONDON CITY & MIDLAND BANK, LIMITED, 
 
 AND 
 
 Messrs. DUNN, FISCHER & COMPANY 
 are prepared to receive applications for the purchase of the above-mentioned Bond Certifi- 
 cates of £99 each issued by the London City & Midland Executor and Trustee Company, Ltd., 
 representing £450,000 (Sterling) 7 per cent. Imperial Chinese Government Bonds 
 AT THE PRICE OF £108 PER CENT. 
 (Being £106 18s. 5d. for every Bond Certificate of £99), payable as follows: 
 £10 on Application. 
 £11 18 5 " Acceptance. 
 £85 0" 23rd October, 1910. 
 
 £106 18 5 
 "The following is a copy of a letter, addressed to Messrs. Dunn, Fischer, and Co., from 
 His Excellency the Minister for China in London : 
 
 " Chinese Legation, London, 
 
 August 31st, 1910. 
 "Messrs. DUNN, FISCHER & CO., 
 
 41, Threadneedle Street, London, E.C. 
 " Gentlemen, 
 
 "IMPERIAL CHINESE GOVERNMENT 7 PER CENT. PEKING-HANKOW 
 RAILWAY REDEMPTION LOAN. 
 " In reply to your letters of the 26th, 27th, and 29th instant, I have to acquaint 
 you that I have received a telegram from the Board of Posts and Communications in 
 Peking instructing me to hand to you : — 
 
 " 1. Copy of the Agreement entered into by you with Lee Fong, the appointed 
 Agent of the Chiao-tung Bank, for the sale to you of 50,000 Bonds of $100 each (Peking 
 Currency), equivalent to £9 each, being part of the above-mentioned loan. 
 
 " 2. Power of Attorney by the Board of Posts and Communications authorizing 
 the said Lee Fong to enter into the above-mentioned Agreement. 
 
 "3. Copy of the Imperial Edict sanctioning the issue of the Loan, and translation 
 of the same. 
 
 "4. Copy of the Prospectus of issue, and translation of the same. 
 "I further beg to inform you that the Board of Posts and Communications of the 
 Imperial Chinese Government has undertaken to guarantee the repayment of the Capi-
 
 NUMBER 1908/13: OCTOBER 8, 1908: NOTE 757 
 
 tal of the aforementioned 50,000 Bonds of $100 each (Peking Currency) in sterling at 
 the rate of nine pounds (£9) for every Bond and also to guarantee the payment of Inter- 
 est thereon at the fixed value of Six Shillings and Three and Six-Tenths Pence (6s. 
 3 6-lOd.) for every Coupon, payable half-yearly, free from all Chinese Taxes and Im- 
 posts, present or future. 
 
 " I am, Gentlemen, Yours faithfully, 
 
 " (Signed) Li-Ching-Fong. 
 
 " The following is an extract from the Prospectus issued by the Board of Posts and 
 Communications of the Imperial Chinese Government in respect of these Bonds and relat- 
 ing to the participation in the profits of the operation of the railway to which the Bond- 
 holders are entitled, viz. : — 
 
 " In the event of the Chinese Government deriving a profit from the earnings of 
 the Peking-Hankow Railway, the Bond-holders, besides the yearly interest on the loan, 
 will also participate in this profit to be called extra dividend." 
 
 "The Capital of the line amounts to 58,000,000 Taels. [Approximately equivalent 
 of £7,400,000 sterling.] If in any year the Government Share of the profit should 
 amount to 4,000,000 Taels, the Board will then reserve one-quarter of this sum, i.e., 
 1,000,000 Taels, for distribution as extra dividend, which will be divided proprotion- 
 ately according to the whole Capital of 58,000,000 Taels. The Board will memorialize 
 the Throne and publish annually the amount of profit, one-quarter of which will be 
 rnade available for extra dividends. This privilege of participating in the extra 
 dividends does not, however, confer upon Bondholders, the right to interfere with or 
 examine the accounts." 
 
 "The Peking-Hankow Railway has a total length of approximately 760 miles. 
 " The gross earnings and the Government's share of the net profits of the Railway are 
 officially reported by the Chiao-tung Bank of Peking as follows : 
 
 Government's Share of 
 Gross Earnings. the Net Profits. 
 
 1908 .. .. $11,034,610 = £965,528 .. $3,063,723 = £268,0/5 
 
 1909 .. .. $11,114,614 = £972,528 .. $3,645,797 = £319,007 
 
 " In respect of the year 1910, the Bonds will only entitle the Holder to a pro rata share 
 of the profits (if any) of the Railway representing the period from the date of payment 
 for the Bonds to the 31st December, 1910. Such pro rata share (if any) will be paid on the 
 1st day of the Ninth Moon, 1911 (22nd October, 1911), together with the fixed interest then 
 due." 
 
 The Yokohama Specie Bank also purchased these bonds to the nominal value of 
 $2,500,000, by an agreement with the Bank of Communications, dated August 15, 1910, of 
 which the following is a summary : 
 
 Agreement for Purchase of Bonds of Peking-Hankow Redemption Loan by 
 Yokohama Specie Bank, August 15, 1910. 
 
 " 1. — The Yokohama Specie Bank to purchase 25,000 bonds, each of the nominal value of 
 100 current silver dollars, at the agreed equivalent of 88 yen: repayment of principal and 
 payment of interest to be reckoned in yen. 
 
 " 2. — ^Bonds to bear 7% interest, payable semi-annually to the Shanghai Branch of the 
 Yokohama Specie Bank. 
 
 "3. — Interest coupons to be met by the Shanghai Branch of the Bank of Communi- 
 cations on the 1st of the 3rd and 9th moons, Chinese calendar, each year. 
 
 "4. — Interest for the first period payable upon receipt of principal; thereafter, Y. 3.08 
 to be paid as interest, each half year, upon each bond. 
 
 " 5. — The Edict of October 8th, 1908, having provided a term of 12 years, with interest 
 payable semi-annually, the first of the 24 interest dates is to be taken as October 8th, 
 1908: amortization to begin with the 15th period. Three interest periods having elapsed, 
 the amortization of principal will begin from the 15th period but will be decreased to 
 allow for the interest periods already elapsed. 
 
 "6. — Delivery of the 25,000 bonds by the Bank of Communications, and payment of 
 Y. 2,200.000 therefor by the Yokohama Specie Bank, to be efi"ected in Shanghai by the 
 two parties, in five equal weekly instalments, beginning September 5th, 1910. 
 
 " 7. — Payments of principal and of interest, and repayments of principal, all to be 
 made at the rate of exchange for the day for yen as posted at the Shanghai Branch of 
 the Yokohama Specie Bank — or, in case of difference, at the rate posted by the other 
 banks. 
 
 " 8. — Issue price 97^, discount to be reckoned after the paying in of the entire pro- 
 ceeds of the bonds. 
 
 "9. — Amortization to begin February 3rd, 1916, and to be completed February 7th, 
 1921, 5000 of the bonds purchased by the Yokohama Specie Bank being drawn by lot and 
 redeemed each year during that period. 
 
 " 10. — From the date of payment for the bonds, profits of the Peking-Hankow Rail- 
 way to be set aside as security for them.
 
 758 CHINA TREATIES AND AGREEMENTS 
 
 "11. — The Board of Posts and Communications to confirm officially the provisions 
 of the Agreement in regard to the payments of interest and amortization. The Agree- 
 ment to be formally cancelled after redemption of the bonds. 
 
 "12. — These Bonds to be subject to the original Regulations concerning the Domestic 
 Loan Bonds, in addition to the terms of this Agreement." 
 
 Other bonds of this redemption loan were subsequently used as the security for a 
 loan of il50,000 from The City Safe Deposit and Agency Company, Limited, of London, 
 under the following agreement of December 11, 1912: — 
 
 Agreement for Loan upon Bonds of Peking-Hankow Redemption Loan by City Safe 
 Deposit and Agency Company, December ii, 1912. 
 
 " THIS AGREEMENT made the eleventh day of December, one thousand nine hun- 
 dred and twelve, BETWEEN The Chinese Republic acting by His Excellency Lew Yuk 
 Lin its officially accredited representative in London and duly authorised to enter into 
 this Agreement on its behalf (hereinafter called 'the Republic') of the one part and 
 The City Safe Deposit and Agency Company, Limited, a company incorporated under the 
 Companies Acts 1862 to 1890 whose registered office is situated at No. 13 Throgmorton 
 Avenue in the City of London, England (hereinafter called 'the Company') of the 
 other part WHEREAS it has been arranged that the Company shall purchase from the 
 Republic Treasury Bills of the Republic for the amount of one hundred and fifty thou- 
 sand pounds AND WHEREAS it is one of the terms of the said arrangement that the 
 said bills shall be secured as hereinafter provided NOW IT IS AGREED as follows: — 
 
 " 1. THE Republic shall sell and the Company shall purchase at par one hundred 
 and fifty Treasury Bills of the Republic each for the sum of one thousand pounds payable 
 at the Head Ofiice for the time being in London, England (now No. 38 Bishopsgate in 
 the said City of London) of the Chartered Bank of India, Australia and China (hereinafter 
 called the 'Bank'). The said Bills shall be a direct obligation of the Republic and shall 
 be signed by the said representative in London and the Republic shall give to the said 
 representative due instructions and authority so to do. 
 
 "2. THE Republic shall pay to the Company as the consideration to the Company 
 for entering into this Agreement the sum of Three thousand seven hundred and fifty 
 pounds to be paid to the Company on the execution hereof. 
 
 " 3. FORTHWITH after delivery to the Company in London of the said Bills 
 signed as provided in Clause 1 hereof and of evidence to the satisfaction of the Com- 
 pany that the bonds mentioned in Clause 4 hereof have been deposited as thereby pro- 
 vided and after the execution by the representative of the Republic to the satisfaction 
 of the Company of this Agreement, the sum of One Hundred and fifty thousand pounds 
 shall be paid by the Company to the Republic in London, but the Company shall be 
 entitled to deduct thereout the said sum of three thousand seven hundred and fifty pounds 
 and a sum of ten thousand five hundred pounds being seven per cent discount on one 
 hundred and fifty thousand pounds paying to the Republic the balance of one hundred 
 and thirty-five thousand seven hundred and fifty pounds. 
 
 " 4. THE payment of the said Bills to the holders for the time being thereof shall 
 be secured by the deposit with the bank in the name and to the order of the Company as 
 trustees of bonds of the Chinese Government Seven per cent Peking-Hankow Railway 
 Redemption Loan of the value at par of two million one hundred and sixty thousand 
 Peking dollars hereinafter called 'the said Bonds.' 
 
 "5. EACH of the said Bonds shall be signed and sealed by the Board of Posts and 
 Communications of the Republic and shall bear a statement certified by the signature and 
 seal of the Board to the effect that the value of one hundred dollars is nine Pounds 
 English sterling and that the said Bonds are payable in Peking in English sterling at that 
 rate of exchange both as to principal and interest. 
 
 "6. THE Bonds shall be deposited in the first instance at the Branch office of the 
 Bank in Peking and/or Tientsin in the name and to the order of the Company. 
 
 " 7. THE Bonds when so deposited shall be held in trust to secure the payment to 
 the holders for the time being and from time to time of the Bills aforesaid of the prin- 
 cipal moneys and interest payable in respect of the said Bills. 
 
 "8. THE principal moneys received by the Bank in respect of the said Bonds 
 whether upon the redemption of any of the said Bonds according to their tenor or other- 
 wise as well as any interest from time to time received by the Bank in respect of the 
 said Bonds, shall be held by the Bank in the name and to the order of the Company and 
 together with all moneys arising under the last preceding clause hereof shall be applicable 
 by the Company in or towards paying off all of the said Bills pari passu and the surplus 
 (if any) shall be paid to the Republic. 
 
 "9. THE Republic hereby grant to the Company an option of purchasing from the 
 Republic the said Bonds at the price of ninety-seven dollars for every Bond of one 
 hundred dollars, and at a proportionate price in respect of Bonds for amounts greater 
 or less than one hundred dollars, which option may be exercised at any time and from 
 time to time by notice in writing to the Representative of the Republic in London specify-
 
 NUMBER 1908/14: OCTOBER 8, 1908 759 
 
 ing the number of the said Bonds purchased and may be exercised at any time within one 
 year after the day of the execution hereof. 
 
 " 10. This Agreement is signed by the said Lew Yuk Lin as the Representative of 
 the Chinese Government and will be forthwith officially communicated to the Minister of 
 Great Britain in Peking by the Wai Chiao Pu (Chinese Foreign Office) and a copy of 
 such formal notification and any reply thereto shall be communicated to the Company. 
 
 "The Common Seal of the City Safe Deposit and Agency Company, Limited, was 
 hereto affixed in the presence of : — 
 
 " (Signatures of) Directors 
 
 " (signature of) Asst. Secretary." 
 
 [Seal.] 
 
 NUMBER 1908/14. 
 
 THE Ux\ITED STATES AND CHINA. 
 Arbitration convention.'^ — October 8, 1908. 
 
 The President of the United States of America and His Majesty the 
 Emperor of China, taking into consideration the fact that the High Contracting 
 Parties to the Convention for the pacific settlement of international disputes, 
 concluded at The Hague on the 29th July, 1899, have reserved to themselves, 
 by Article XIX of that Convention, the right of concluding Agreements, with 
 a view to referring to arbitration all questions which they shall consider pos- 
 sible to submit to such treatment, have resolved to conclude an Arbitration Con- 
 vention between the two countries, and for that purpose have named as their 
 Plenipotentiaries, that is to say : 
 
 The President of the United States of America, Elihu Root, Secretary of 
 State of the United States of America; and 
 
 His Majesty the Emperor of China, Wu Ting-fang, Envoy Extraordinary 
 and Minister Plenipotentiary to the United States of America, Mexico, Peru, 
 and Cuba; 
 
 Who, after having communicated to each other their Full Powers, found 
 to be in good and due form, have agreed upon and concluded the following 
 Articles : — 
 
 Article I. — Differences which may arise of a legal nature or relating to 
 the interpretation of treaties existing between the two Contracting Parties, and 
 which it may not have been possible to settle by diplomacy, shall be referred to 
 the Permanent Court of Arbitration established at The Hague by the Conven- 
 tion of the 29th July, 1899, provided, nevertheless, that they do not affect the 
 vital interests, the independence, or the honor of the two Contracting States, 
 and do not concern the interests of third Parties. 
 
 Article II. — In each indi'vidual case the High Contracting Parties before 
 
 *Text as printed in U. S. Treaty Series, No. 522. Printed also in Malloy, p. 290; 
 Am. Int. Law Journal, Supplement, 1909, p. 221 ; Customs, vol. I, p. 764. 
 
 In connection with this convention see also the Treaty for the advancement of the 
 general cause of peace, September 15, 1914 (No. 1914/10, post).
 
 760 CHINA TREATIES AND AGREEMENTS 
 
 appealing to the Permanent Court of Arbitration shall conclude a special Agree- 
 ment defining clearly the matter in dispute, the scope of the powers of the 
 Arbitrators, and the periods to be fixed for the formation of the Arbitral Tri- 
 bunal and the several stages of the procedure. It is understood that such special 
 agreements will be made on the part of the United States by the President of the 
 United States by and with the advice and consent of the Senate thereof. 
 
 Article III. — The present Convention shall remain in force for the period 
 of five years from the date of the exchange of the ratifications. 
 
 Article IV. — The present Convention shall be ratified by the High Con- 
 tracting Parties, and the ratifications thereof shall be exchanged at Washington 
 as soon as possible. f 
 
 In witness whereof, the respective Plenipotentiaries have signed the present 
 Convention, and have thereunto affixed their seals. 
 
 Done at the City of Washington, in duplicate, this 8th day of October, one 
 thousand nine hundred and eight, corresponding to the 14th day of the 9th 
 month of the 34th year of Kuang Hsii. 
 
 Elihu Root • [seal] 
 
 Wu Ting Fang [seal] 
 
 NUMBER 1908/15. 
 
 JAPAN AND CHINA. 
 
 Convention concerning the telegraph cable hetzveen Kivantung and Chefoo, and 
 the Japanese telegraph lines in Manchuria.* — October 12, 1908. 
 
 The undersigned, respectively duly authorised by the Governments of 
 Japan and China to adjust in a friendly manner and spirit of mutual accom- 
 modation the questions of the submarine telegraph cable, between the Province 
 of Kwantung and Chefoo, and the Japanese telegraph lines in Manchuria, have 
 agreed as follows: 
 
 Article 1. — A submarine cable will be laid by the Governments of Japan 
 and China between a point in the Kwantung Province and Chefoo. Japan will 
 lay and maintain the section of the submarine cable from Kwantung to within 
 7^ miles of Chefoo and China will lay and maintain the section of said 
 cable from Chefoo to a point 7^^ miles from Chefoo. At said point the two 
 sections of the cable shall be connected. The Kwantung end shall be worked 
 entirely by Japan and the Chefoo end by China, but, in order to meet the 
 special requirements of Japan, the cable shall be connected up direct to the 
 
 * In connection with this convention see also the agreement concerning the working of 
 the Kwantung-Chefoo cable (No. 1908/16, post), and the agreement concerning the work- 
 ing of the Japanese and Chinese telegraph lines in Manchuria (No. 1908/17, post), both 
 of November 7, 1908. 
 
 t Ratifications exchanged April 6, 1909.
 
 NUMBER 1908/15 : OCTOBER 12, 1908 761 
 
 Japanese Post Office at Chefoo during such sufficient time each working day 
 as may be agreed upon and such Post Office shall have the right to transmit 
 over the said cable from and to places under the direct control of the Japanese 
 telegraph system terminal Chefoo Japanese Government messages as well as 
 private terminal Chefoo telegrams, provided these latter be written in Kana. 
 Japan shall pay to China on such traffic a certain terminal fee to be agreed 
 upon. The connecting line between the Chinese Chefoo Telegraph Office and 
 the Japanese Post Office at Chefoo will be constructed and maintained by 
 China. Japan engages to do all in her power to prevent the retransmission at 
 Chefoo of traffic from or to any other part of China and she also undertakes, 
 under the reserve of most favored nation treatment for the future, not to land 
 submarine cables or to construct telegraph or telephone land-lines or to estabhsh 
 any kind of wireless communication in China, outside her leased or railway 
 territories, without in every case first having obtained the consent of the 
 Chinese Government. All details as to terminal and transit rates over the 
 Chefoo-Kwantung cable shall be settled by a special agreement. 
 
 Article 2. — Japan undertakes immediately to hand over to China, against 
 the payment of 50,000 Yen, all Japanese telegraph lines in Manchuria outside 
 the railway territory. Japan is prepared to enter into negotiation with China 
 with a view to coming to a certain arrangement concerning the Japanese tele- 
 phone service in Manchuria outside the railway territory. Pending the con- 
 clusion of such an arrangement, Japan undertakes neither to extend her present 
 telephone system in Manchuria without having first obtained the consent of 
 the Chinese Government, nor to use her telephone lines for the transmission 
 of telegrams in competition with the Chinese telegraph lines. 
 
 Article 3. — At open marts or treaty ports in Manchuria, which are in 
 close proximity to the Japanese railway territory, namely at: Antung, New- 
 chwang, Liaoyang, Moukden, Teh-ling and Chang-chun, the Chinese Government 
 agrees, for a period of fifteen years, to place one or two special telegraph wires 
 from the said open marts or treaty ports to such railway territory at the exclu- 
 sive disposal of the Japanese Government telegraph service. Such wire or 
 wires shall be maintained in good order and condition by the Chinese Govern- 
 ment up to the railway territory. 
 
 Article 4. — The special wire or wires mentioned in Article 3 shall be 
 worked from the Chinese telegraph buildings by Japanese clerks in the employ 
 of the Japanese Government, and the Chinese Government undertakes to pro- 
 vide, at a total yearly rent of 700 Mexican Dollars, suitable special offices and 
 accommodations for this purpose, it being, however, understood that the said 
 accommodations do not include dwelling quarters for the clerks. 
 
 Article 5. — The special wire or wires mentioned in Article 3 can only be 
 used for the exchange of telegrams emanating from or destined to places under 
 the direct control of the Japanese telegraph system. 
 
 Article 6. — At the open marts or treaty ports mentioned in Article 3 the 
 Japenese telegraph Department will have its receiving office in the Chinese tele- 
 graph buildings and delivery of Japanese traffic shall be made by messengers 
 wearing no special uniform.
 
 762 CHINA TREATIES AND AGREEMENTS 
 
 Article 7. — The Japanese Government undertakes to pay to the Chinese 
 Government an annual sum of three thousand Yen as a royalty on all messages 
 forwarded over the Japanese Manchurian telegraph lines. 
 
 Article 8. — The present convention shall be confirmed by the two Govern- 
 ments concerned and shall be put into force when detailed agreements shall 
 have been concluded with regard to the Chefoo-Kwantung cable and the 
 Japanese Manchurian telegraph lines. 
 
 In witness whereof the undersigned have signed this agreement. 
 
 Done at Tokio in English in duplicate this 12th day of the month of 
 October, 1908. 
 
 NUMBER 1908/16. 
 
 JAPAN AND CHINA 
 
 Agreement concerning the zvorking of the Chefoo-Kwantung cahle.'^ — Novem^ 
 
 her 7, 1908. 
 
 In conformity with the provisions of the Telegraph Convention of the 
 12th October, 1908, between Japan and China, the two Governments have, for 
 the purpose of facilitating the due and proper w'orking of the Chefoo-Kwantung 
 submarine cable, concluded the following Supplementary Agreement : 
 
 Article I. — Japan and China undertake, as quickly as circumstances per- 
 mit after the present Agreement takes efifect, to provide a submarine cable 
 between Chefoo (Shantung) and a point in the Kwantung Province within the 
 leased territory of the Liaotung Peninsula, either by restoring the old cable or 
 by laying a new one, in accordance with the stipulations contained in Article 1 
 of the Convention above mentioned. 
 
 Article II. — The two contracting parties engage to maintain the said 
 cable, at all times, in good working order and condition and, in case of interrup- 
 tion, to effect repairs as quickly as possible. 
 
 Should the cable be damaged at the connecting point, i.e., at 7% miles 
 from Chefoo, the cost of the repairs shall be borne one half by Japan and the 
 other half by China. 
 
 Article III. — Each of the contracting parties agrees to provide and main- 
 tain at its own cost the cable house, landing connection and the necessary equip- 
 ment of the ofifice at its own shore end of the said cable. 
 
 Article IV. — The telegraph instruments to be employed for working the 
 said cable shall, unless otherwise agreed, be Morse or Wheatstone. 
 
 Article V. — The cost of the equipment and maintenance of the Japanese 
 telegraph office at Chefoo shall be borne by Japan. 
 
 * Text as printed in Customs, vol. II, p. 744. 
 
 In connection with this agreement see also the Sino-Japanese telegraph convention of 
 October 12, 1908 (No. 1908/15, ante).
 
 NUMBER 1908/16: NOVEMBER 7, 1908 763 
 
 Article VI. — The Chinese telegraph office at Chefoo shall daily switch the 
 Japanese telegraph office at that place into direct communication with the said 
 cable for one hour in every three hours between six o'clock in the morning and 
 eleven o'clock at night, and thereafter the said Japanese office shall be similarly 
 switched into direct communication with the cable during the remaining seven 
 hours in each day of twenty-four hours that the cable is not actually required 
 by the said Chinese office. 
 
 It is further agreed that for the due and proper working of the said cable, 
 every convenience and facility shall be given reciprocally by the two offices 
 which shall do their utmost to work in a friendly and harmonious way so as 
 to cause as little delay as possible to the legitimate traffic of both parties. 
 
 Article VII. — Japan and China shall, as quickly as circumstances permit, 
 arrange to connect the nearest Chinese telegraph office outside the leased ter- 
 ritory of Liaotung Peninsula with the most convenient Japanese telegraph office 
 having direct connection with the Japanese cable office. This connecting line 
 shall be constructed, maintained and worked by each contracting party within 
 its own territory and used for tHe exchange of traffic to and from places within 
 the Chinese system North of the said leased territory. 
 
 Article VIII — A. The special cable rates per word for correspondence 
 exchanged over the said cable between the Japanese and Chinese offices are 
 fixed as follows : 
 
 1. Japan. 
 
 a. For terminal Kwantung traffic Mex. $0.15 
 
 b. For traffic transiting Kwantung " 0.10 
 
 2. China. 
 
 For terminal Chefoo traffic " 0.04 
 
 B. The charges per word on the Japanese landlines beyond Kwantung shall 
 be 5 Mexican Dollar cents. 
 
 For Chinese telegrams the text of which is composed entirely of 4-figured 
 groups, Japan's proportion of rate shall be 8 Mexican Dollar cents per word. 
 
 For telegrams emanating from or destined to countries beyond China, 
 Japan's proportion of rate shall be 10 Mexican Dollar cents per word. 
 
 For telegrams transmitted over the said cable, Japan shall collect the rates 
 fixed for the time being by China, and on such traffic Japan shall credit China 
 with full transmission rate less Japan's proportion as fixed above. It is, how- 
 ever, understood that the total charges for such telegrams shall not, in any case, 
 be higher than for telegrams to the same destination via other Chinese routes. 
 The necessary tarilT schedule shall be supplied to Japan by China. 
 
 Article IX. — Until otherwise agreed upon it is understood that the Chef oo- 
 Kwantung cable can not be used for Japanese traffic emanating from or destined 
 to places beyond China with the exception of Chefoo terminal Japanese Gov- 
 ernment traffic and Chefoo terminal traffic written in Kana. 
 
 Article X. — On telegrams handled by the Japanese OfHce at Chefoo, 
 according to Article I of the Convention above mentioned, Japan shall credit
 
 754 CHINA TREATIES AND AGREEMENTS 
 
 China with 10% of the total rates charged. The amount of such credit shall 
 be accounted for in the monthly balance sheet. 
 
 Article XI. — The checking of the amount of correspondence exchanged 
 over the said cable shall take place daily by wire between the offices of exchange. 
 
 The settlement of accounts shall take place at the end of each month, and 
 the resulting balance shall be paid one month thereafter either to Japan in 
 Tokio or to China in Shanghai, as the case may be. 
 
 For the purposes of this Arrangement the year and month shall be reck- 
 oned according to the Gregorian calendar and the English language shall be 
 used in all communications between the telegraph offices of the two contracting 
 parties. 
 
 Article XII. — The liquidation of accounts shall be made in Mexican Dol- 
 lars. As regards outpayments to other telegraph Administrations the collecting 
 rate shall be quarterly agreed upon between the two contracting parties during 
 the month preceding the quarter for which the rate is to rule, on the basis of 
 the average bank rate of exchange at Shanghai for the three months preceding 
 that in which the rate is fixed. 
 
 In case it is necessary at any time to fix the collecting rate for the fraction 
 of a quarter, the average bank rate of exchange ruling at Shanghai for the 
 quarter immediately preceding such fraction of a quarter shall be taken as the 
 basis. 
 
 Article XIII. — The charges for press telegrams via the said cable shall 
 be fixed by a later agreement between Japan and China. 
 
 Article XIV. — Unless otherwise provided in the present Agreement, the 
 rules laid down in the existing International Telegraph Convention and the 
 Regulations attached thereto shall be observed with regard to telegrams trans- 
 mitted over the said cable. 
 
 Article XV. — The present Agreement shall be submitted to the Govern- 
 ments of Japan and China respectively for approval and shall come into opera- 
 tion from the day on which announcements of such approval are exchanged. 
 It shall remain in force until modified or abrogated by mutual consent. 
 
 In witness whereof the undersigned, duly authorised by their respective Gov- 
 ernments, have signed the present Agreement. 
 
 Done in Tokio, in English, in duplicate, this seventh day of the month 
 of November, 1908. 
 
 (Signed) Chow Wan Pang. 
 
 (Signed) K. Ishii, 
 
 (Signed) T. Kurachi. 
 
 (Signed) J. Tanaka.
 
 NUMBER 1908/17: NOVEMBER 7, 1908 765 
 
 NUMBER 1908/17. 
 
 JAPAN AND CHINA. 
 
 Agreement concerning the zvorking of the Japanese and Chinese telegraph lines 
 in Manchuria.'^ — November 7, 1908. 
 
 In conformity with the provisions of the Telegraph Convention of the 
 12th October, 1908, between Japan and China, the two Governments have, for 
 the purpose of facihtating the due and proper working of their respective tele- 
 graph lines in South Manchuria, concluded the following Supplementary 
 Agreement : 
 
 Article I — a. In order to facilitate the exchange of telegraphic traffic 
 between the Japanese and Chinese systems, China shall connect her telegraph 
 offices at Antung, Newchwang, Liaoyang, ]\Iukden, Tehling and Changchun 
 with the respective Japanese telegraph offices within the railway zone at these 
 places. 
 
 b. On the telegraphic traffic handled by the Japanese offices in Manchuria, 
 a royalty will be paid by Japan to China. 
 
 c. All messages destined for places in China, outside the Japanese system, 
 and beyond, directed by the senders " via the Chinese lines," duly tendered for 
 transmission to the Japanese offices within the railway zone, as well as diverted 
 Japanese traffic, shall be accepted by such offices and handed over to the nearest 
 connecting Chinese offices, full transmission rate being credited by Japan to 
 China on such traffic less 5 Mexican Dollar cents per word. 
 
 d. All messages destined for places in China and beyond, directed by the 
 senders " via the Chef oo-Kwantung cable," duly tendered to a Chinese office 
 for transmission shall be accepted by it and handed over to the nearest con- 
 necting Japanese office. On such traffic China shall credit Japan with the 
 rates specified in Article VIII of the Agreement regarding the working of the 
 Chefoo-Kwantung cables. 
 
 e. All traffic destined for places on the Japanese system in Manchuria, 
 duly handed in at or transmitted to a Chinese office in Manchuria for trans- 
 mission, shall be handed over to the nearest connecting Japanese office. On 
 such traffic China shall credit Japan with 5 Mexican Dollar cents per 
 word. 
 
 Article II. — Japan undertakes not to establish competition, by lower rates 
 or other means, against China. This engagement does not, however, apply to 
 traffic forwarded exclusively over the Japanese lines. 
 
 Article III. — For telegrams handed over to the connecting Chinese offices 
 in Manchuria, Japan shall collect the rates fixed for the time being by China, 
 
 * Text as printed in Customs, vol. II, p. 749, with addition of preamble. 
 In connection with this agreement see also the Sino-Japanese telegraph convention of 
 October 12, 1908 (No. 1908/15, ante).
 
 766 CHINA TREATIES AND AGREEMENTS 
 
 and on such traffic Japan shall credit China with full transmission rates less 
 5 Mexican Dollar cents per word. The necessary tariff schedule shall be 
 supplied to Japan by China. 
 
 Article IV. — Unless otherwise provided in the present Agreement the 
 rules laid down in the existing International Telegraph Convention and the 
 regulations attached thereto shall be observed with regard to telegrams trans- 
 mitted over the connecting lines. 
 
 Article V. — The charges for press telegrams exchanged between the 
 Japanese and Chinese offices in Manchuria shall be fixed by a later agreement 
 between Japan and China. 
 
 Article VI. — Special accounts of all telegraphic traffic exchanged shall be 
 kept at the offices where such exchange takes place, and shall be compared and 
 checked daily. The settlement of accounts shall take place at the end of each 
 month and the resulting balance shall be paid, one month thereafter, to Japan 
 in Tokio or to China in Shanghai, as the case may be. For the purposes of 
 this arrangement the year and month shall be reckoned according to the 
 Gregorian calendar and the English language shall be used in all communica- 
 tions between the telegraph offices of the two contracting parties. 
 
 Article VII. — The liquidation of accounts shall be made in Mexican Dol- 
 lars. As regards outpayments to other telegraph Administrations the collecting 
 rate shall be quarterly agreed upon between the two contracting parties during 
 the month preceding the quarter for which the rate is to rule, on the basis of 
 the average bank rate of exchange at Shanghai for the three months preceding 
 that in which the rate is fixed. In case it is necessary at any time to fix the 
 collecting rate for the fraction of a quarter, the average bank rate of exchange 
 ruling at Shanghai for the quarter immediately preceding such fraction of a quar- 
 ter shall be taken as the basis. 
 
 Article VIII. — Neither of the contracting parties shall take into its tele- 
 graph service in Manchuria or Chefoo any person who is engaged or has been 
 engaged within the three previous months in the same service of the other 
 party without in each case obtaining the special consent of the latter. 
 
 Article IX. — All telegraph lines constructed by Japan in South Man- 
 churia outside the railway territory shall, at the time the present Agreement 
 takes effect, be delivered to China and the sum of Yen 50,000 shall be paid 
 by China to Japan in Tokio as soon as such delivery shall have been com- 
 pleted. 
 
 The delivery of the telegraph lines mentioned above shall be effected by 
 special commissioners appointed by the two contracting parties for that 
 purpose. 
 
 Article X. — The present Agreement shall be immediately submitted to 
 the Governments of Japan and China respectively for approval and shall come 
 into operation from the day on which announcements of such approval are 
 exchanged. It shall remain in force until modified or abrogated by mutual 
 consent. 
 
 In witness whereof the undersigned, duly authorised by their respective 
 Governments, have signed the present Agreement.
 
 NUMBER 1908/18 : NOVEMBER 12, 1908 767 
 
 Done at Tokio, in English, in duplicate, this seventh day of the month of 
 November, 1908. 
 
 (Signed) Chow Wan Pang. 
 
 (Signed) K. Ishii. 
 
 (Signed) T. Kurachi. 
 
 (Signed) J, Tanaka. 
 
 NUMBER 1908/18. 
 
 JAPAN AND CHINA. 
 
 Supplementary agreement for a loan for the Hsinmint'un-Mukden and Kirin- 
 CJi'angch'un raikvays* — November 12, 1908. 
 
 According to Article 4 of the Hsin-Feng {i.e., Hsinmin-Mukden) and Chi- 
 Ch'ang (i.e., Kirin-Changchun) Railway agreement between the two Governments 
 of Japan and China, dated Meiji, 40th year, 4th month, 15th day/KuangshiA 
 33rd year, 3rd month, 3rd day (April 15, 1907), it was agreed that, before settling 
 the loan contract for the said railways, the two Governments should draw up a 
 supplementary agreement regarding matters not settled in the original agree- 
 ment. 
 
 Now the two officials designated below have concluded the following 
 agreement : 
 
 Article I. — It is agreed by Articles 1 and 2 of the Hsin-Feng and Chi- 
 Ch'ang Railway agreement between the Governments of Japan and China (here- 
 after to be called the "Agreement") that half of the capital needed for that 
 portion of the Ching-Feng (f. e., Peking-Mukden) Railway lying east of the 
 Liao River amounting to Yen 320,000, and half of the capital needed for the 
 Chi-Ch'ang Railway amounting to Yen 2,150,000 should be borrowed from the 
 South Manchuria Railway Company. 
 
 Article II. — The interest on this loan shall be at the rate of five per cent 
 
 per annum. 
 
 Article III. — The actual rate at which the loan shall be realized shall be 
 93 for every 100 as agreed upon in Article 6 of the " Agreement." 
 
 * Translation from the Chinese text, as printed in For. Rel, 1908, p. 207. Printed also 
 (in Chinese and Japanese texts) in Wans,, p. 149, and (in translation) in F. E. Review, 
 vol. 11, p. 391. 
 
 In connection with this supplementary agreement see also the convention regarding 
 the Hsinmin-Mukden and Kirin-Ch'angch'un railways, April 15, 1907 (No. 1907/3, ante) : 
 agreement for the handing over of the Hsinmin-Mukden Railway, May 27, 1907 (Na 
 1907/5, ante) : detailed agreements concerning the Hsinmin-Mukden and Kirin-Ch'angch'un 
 railway loans, August 18, 1909 (Nos. 1909/6 and 1909/7, post) ; also, with particular ref- 
 erence to the Kirm-Ch'angch'un Railway, see Article 6 of the agreement relating to 
 Chientao, September 4, 1909 (No. 1909/10, post), and Article 7 of the Sino-Japanese treaty 
 respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 1915/8, post).
 
 768 CHINA TREATIES AND AGREEMENTS 
 
 Article IV. — It is stipulated in Article 3 of the " Agreement " that dur- 
 ing the term of the loan, the Chinese Government shall employ a Japanese 
 engineer-in-chief for that portion of the Ching-Feng Railway which lies east 
 of the Liao River. For the present the Japanese engineers now in the employ 
 of the Ching-Feng Railway may continue to act and as at present will con- 
 tinue to be under the control of the director and engineer-in-chief of the Ching- 
 Feng Railway. If, in future, changes are made in the engineering staff, as pro- 
 vided in the " Agreement," application shall be made to the South Manchuria 
 Railway which will make appointments after full consultation. The status of 
 these engineers shall be as stated above. 
 
 Article V. — Since it is difficult for the Chinese Government to keep 
 separate accounts for that portion of the Ching-Feng Railway which lies east 
 of the Liao River, the Japanese Government consents that no Japanese account- 
 ants shall be specially appointed, and the Japanese Government consents that 
 the Chinese Government shall set aside monthly a sum calculated to be suf- 
 ficient for the monthly payment of capital and interest on the amount of the 
 loan for the said section of railway. This sum shall be deposited on the first 
 day of every month in some Japanese Bank in China, designated by the South 
 Manchuria Railway Company. This deposit shall be regarded as a sinking 
 fund for the redemption of the capital and interest of the loan when due. The 
 manner of making the payments of the capital and interest of the loan when 
 due, and the interest which shall be allowed by the bank on the sums deposited 
 shall be decided when the detailed loan contract is drawn up. The Chinese 
 Government also consents that the monthly balance sheets for the whole Ching- 
 Feng Railway Line and the annual exact statement of accounts in English shall 
 be sent monthly and annually to the South Manchuria Railway Company for 
 inspection. 
 
 Article VI. — The engineer-in-chief and the accountants of the Chi-Ch'ang 
 Railway should all be Japanese as provided in Article 3 of the " Agreement." 
 The method of appointment shall be as follows : The Chinese Government will 
 select a well trained and capable engineer-in-chief and appoint him, after full 
 consultation with the South Manchuria Railway Company, The accountants 
 shall be selected by the South Manchuria Railway Company, and after consulta- 
 tion with the Chinese Government the Chinese Government shall appoint them. 
 If in future it shall be necessary to change the engineer-in-chief or accountants, 
 there must be consultation with the South Manchuria Railway Company accord- 
 ing to the " Agreement," and the appointments must be made as arranged 
 above. 
 
 Article VII. — The special loan contract must conform to the stipulations 
 of the " Agreement " and of this " Supplementary Agreement." It will be 
 drawn up between the South Manchuria Railway Company and an official 
 appointed by the Board of Posts and Communications. 
 
 This supplementary agreement will be in force w^hen ratified by the two 
 Governments.
 
 NUMBER 1908/19 : NOVEMBER 30, 1908 769 
 
 Signed at Peking, Meiji, 41st year, 11th month, 12th day/Kuang-hsii, 34th 
 year, 10th month, 19th day (November 12, 1908), by 
 
 (Signed) Moritaro Abe, 
 First Secretary of Legation. 
 Liang Shih-i, 
 Director of the Head Railway 
 Office of the Board of Posts 
 and Communications. 
 
 NUMBER 1908/19. 
 
 JAPAN AND THE UNITED STATES. 
 Exchange of notes declaring their policy in the Far East* — November 30, 1908. 
 
 I. 
 
 IMPERIAL JAPANESE EMBASSY 
 WASHINGTON. 
 
 November 30, 1908. 
 Sir: 
 
 The exchange of views between us, which has taken place at the several 
 interviews which I have recently had the honor of holding with you, has shown 
 that Japan and the United States holding important outlying insular posses- 
 sions in the region of the Pacific Ocean, the Governments of the two countries 
 are animated by a common aim, policy, and intention in that region. 
 
 Believing that a frank avowal of that aim, policy, and intention would not 
 only tend to strengthen the relations of friendship and good neighborhood, 
 which have immemorially existed between Japan and the United States, but 
 would materially contribute to the preservation of the general peace, the Impe- 
 rial Government have authorized me to present to you an outline of their 
 understanding of that common aim, policy, and intention : 
 
 1. It is the wish of the two Governments to encourage the free and peace- 
 ful development of their commerce on the Pacific Ocean. 
 
 2. The policy of both Governments, uninfluenced by any aggressive tend- 
 encies, is directed to the maintenance of the existing status quo in the region 
 above mentioned and to the defense of the principle of equal opportunity for 
 commerce and industry in China. 
 
 3. They are accordingly firmly resolved reciprocally to respect the ter- 
 ritorial possessions belonging to each other in said region. 
 
 *Text as printed in U. S. Treaty Seri-es (No Number). Printed also in Malloy, p. 1045. 
 In connection with this exchange of notes see also that of November 2, 1917 (No. 
 1917/12, post).
 
 770 CHINA TREATIES AND AGREEMENTS 
 
 4. They are also determined to preserve the common interest of all powers 
 in China by supporting by all pacific means at their disposal the independence 
 and integrity of China and the principle of equal opportunity for commerce and 
 industry of all nations in that Empire. 
 
 5. Should any event occur threatening che status quo as above described 
 or the principle of equal opportunity as above defined, it remains for the two 
 Governments to communicate with each other in order to arrive at an under- 
 standing as to what measures they may consider it useful to take. 
 
 If the foregoing outline accords with the view of the Government of the 
 
 United States, I shall be gratified to receive your confirmation. 
 
 I take this opportunity to renew to Your Excellency the assurance of my 
 
 highest consideration. -rr t- 
 
 *= K. Takahira. 
 
 Honorable Elihu Root, 
 
 Secretary of State. 
 
 II. 
 
 Department of State, 
 
 Washington, November 30, 1908. 
 Excellency : 
 
 I have the honor to acknowledge the receipt of your note of to-day setting 
 forth the result of the exchange of views between us in our recent interviews 
 defining the understanding of the two Governments in regard to their policy in 
 the region of the Pacific Ocean. 
 
 It is a pleasure to inform you that this expression of mutual understand- 
 ing is welcome to the Government of the United States as appropriate to the 
 happy relations of the two countries and as the occasion for a concise mutual 
 affirmation of that accordant policy respecting the Far East which the two 
 Governments have so frequently declared in the past. 
 
 I am happy to be able to confirm to Your Excellency, on behalf of the 
 United States, the declaration of the two Governments embodied in the fol- 
 lowing words : 
 
 1. It is the wish of the two Governments to encourage the free and peace- 
 ful development of their commerce on the Pacific Ocean. 
 
 2. The policy of both Governments, uninfluenced by any aggressive tend- 
 encies, is directed to the maintenance of the existing status quo in the region 
 above mentioned, and to the defense of the principle of equal opportunity for 
 commerce and industry in China. 
 
 3. They are accordingly firmly resolved reciprocally to respect the ter- 
 ritorial possessions belonging to each other in said region. 
 
 4. They are also determined to preserve the common interests of all powers 
 in China by supporting by all pacific means at their disposal the independence 
 and integrity of China and the principle of equal opportunity for commerce 
 and industry of all nations in that Empire. 
 
 5. Should any event occur threatening the status quo as above described
 
 NUMBER 1909/1 : FEBRUARY 9, 1909 771 
 
 or the principle of equal opportunity as above defined, it remains for the two 
 Governments to communicate with each other in order to arrive at an under- 
 standing as to what measures they may consider it useful to take. 
 
 Accept, Excellency, the renewed assurance of my highest consideration. 
 
 Elihu Root. 
 His Excellency 
 
 Baron Kogoro Takahira, 
 
 Japanese Ambassador. 
 
 NUMBER 1909/1. 
 
 GREAT BRITAIN (India) AND CHINA. 
 
 Arrangement for the exchange of correspondence between the postal administra- 
 tion of India and the postal administration of China. — February 9 , 1909. 
 
 In order to establish an exchange of correspondence between India and 
 China, the undersigned, duly authorised for that purpose, have agreed upon the 
 following articles : — 
 
 Article 1. — There shall be between the Postal Administration of India and 
 the Postal Administration of China regular exchanges (1) via Bhamo and Teng- 
 yueh, of correspondence of all kinds, namely letters, postcards (both single 
 and with reply paid), printed papers, business papers and samples of merchandise, 
 both ordinary and registered, by means of any services, ordinary or special, now 
 established and hereafter established, which each Administration may have at its 
 disposal. [Samples of merchandise cannot, at present, be carried by the ordinary 
 letter mail, but will be forwarded twice a month by special couriers.] 
 
 Article 2.— Each Administration shall be entitled to send through the inter- 
 mediate agency of the other either closed mails or correspondence a decouvert to 
 any other country with which the latter Administration has postal relations. The 
 charges payable by the despatching Administration in respect of such transit 
 correspondence shall be at the rates prescribed by the Principal Convention of 
 the Postal Union in force for the time being, and the amount of the total yearly 
 payment shall be assessed on the basis of statistics which shall be taken as may 
 be agreed upon hereafter between the two Administrations. 
 
 Article 3. — The offices of exchange shall be on the side of India, Bhamo, 
 and on the side of China, Tengyueh. [The Tengyueh couriers will carry the mails 
 only to and from Nampaung, on the frontier.] 
 
 Article 4. — The postage on articles exchanged between the two Administra- 
 tions shall be paid by means of postage stamps, and this postage, if fully prepaid 
 at the equivalents in India and China, respectively, of the rates laid down by 
 Article 5, paragraph 1, of the Principal Convention of Rome, shall entitle the 
 articles to be delivered free of all charges irrespective of their destinations.
 
 772 CHINA TREATIES AND AGREEMENTS 
 
 provided only that correspondence addressed to places in China where no Chinese 
 post offices exist shall be forwarded by the Chinese Administration to destination 
 through private agencies at the risk and expense of the addressees. Articles other 
 than letters and postcards shall be prepaid at least partly. In case of insufficient 
 prepayment, correspondence of every kind shall be liable to a charge, to be paid 
 by the addressee, equal to double the amount of the deficiency; but this charge 
 shall not exceed that which is levied in the country of destination on unpaid 
 correspondence of the same nature, weight and origin. The two Administrations 
 shall communicate to each other their tariffs of postal charges. 
 
 Article 5. — Each Administration shall keep the whole of the sums which it 
 collects. 
 
 Article 6. — No supplementary postage shall be chargeable for the redirection 
 of articles of correspondence. Undelivered correspondence shall not, when re- 
 turned, give rise to the repayment of the transit charges due to the Administra- 
 tions concerned for the previous conveyance of such correspondence. Unpaid 
 letters and postcards and insufficiently paid articles of every description, which 
 are returned to the country of origin as redirected or as undeliverable, are liable, 
 at the expense of the adressees or senders, to the same charges as similar articles 
 addressed directly from the country of the first destination to the country of 
 origin. The treatment of redirected and undelivered correspondence shall be 
 governed by Articles XXVII and XXVIII of the Detailed Regulations for the 
 execution of the Principal Convention of Rome. 
 
 Article 7. — The preparation, transmission and verification of mails ex- 
 changed between the two countries shall be governed by the rules contained in 
 Articles IX, X, XI, XXI, XXIV and XXV of the Detailed Regulations referred 
 to above. 
 
 Article 8. — Business papers, samples and printed papers which do not 
 fulfil the conditions laid down in Article 5 of the Principal Convention of Rome 
 and Articles XVII, XVIII, XIX and XX of the Detailed Regulations for the 
 execution of that Convention, shall not be forwarded. Should occasion arise, 
 these articles shall be sent back to the post office of origin and returned, if possible 
 to the senders. Articles of correspondence falling under any of the prohibitions 
 of paragraph 3 of Article 16 of the Principal Convention of Rome, which have 
 been erroneously given transmission, shall be returned to the country of origin, 
 except in cases where the Administration of the country of destination is 
 authorised by its laws or by its internal regulations to dispose of them otherwise- 
 Explosive, inflammable, or dangerous substances, however, shall not be returned 
 to the country of origin; when their presence is detected by the Administration of 
 the country of destination, they shall be destroyed on the spot under the direction 
 of that Administration. 
 
 Article 9. — The exchange of registered correspondence between the two 
 countries shall be effected according to the conditions and procedure prescribed 
 by Articles XII and XXII of the Detailed Regulations referred to above. 
 
 Article 10. — The two Administrations shall accept responsibility for the 
 loss of registered articles (except in the case of vis major) up to a limit of 50 
 francs in respect of each such article and according to the conditions laid down
 
 NUMBER 1909/2: FEBRUARY 6/19, 1909 TJZ 
 
 in Article 8 of the Principal Convention of Rome and Article XIII of the 
 Detailed Regulations for the execution of that Convention. 
 
 Article 11. — Acknowledgments of receipt in respect of registered articles 
 and enquiries as to the disposal of such articles shall be exchanged between the 
 two Administrations in accordance with the procedure described in Article XIV 
 of the Detailed Regulations already referred to. 
 
 Article 12. — Applications for ordinary and registered articles which have 
 failed to reach their destination shall be dealt with according to Articles XXIX 
 and XXX, respectively, of the said Detailed Regulations, such applications being 
 transmitted, when they concern the Indian Administration, to the Director-General 
 of the Post Office of India, Calcutta, and when they concern the Chinese Adminis- 
 tration, to the Inspector-General of the Chinese Imperial Posts, Peking. 
 
 Article 13. — The present arrangement shall take effect on the first of May 
 1909. It shall then continue in force until it shall be modified or determined by 
 mutual consent of the contracting parties or until six months after the date on 
 which one of contracting parties shall have notified the other of its intention to 
 terminate it. 
 
 Executed in duplicate and signed : — 
 
 At At Peking 
 
 The 190. ., The 9th February 1909. 
 
 Officiating Director-General Acting Inspector-General of 
 
 of the Post Office of the Chinese Imperial 
 
 India, Posts, 
 
 (Signed) Robt. E. Bredon. 
 
 NUMBER 1909/2. 
 
 RUSSIA (Chinese Eastern Railway Company) AND CHINA. 
 
 Arrangement for the transportation of mails of the Chinese Imperial Posts* — 
 
 February 6/19, 1909. 
 
 1. — A compartment measuring from one and one-half to two metres in 
 length of a Russian car, in each mail car, is put at the disposal of the Chinese 
 Postal Administration for the conveyance of Chinese official mails. 
 
 2. — All official Chinese mails will be transported in these compartments 
 without charge; a Chinese official and a messenger will be admitted there to 
 accompany the mails. 
 
 3. — For the transportation of public mails in these compartments, the Chinese 
 
 * Translation from the French text as printed in Soglashenia, p. 74. 
 
 In this connection, see also the agreement of the same date concerning postal relations 
 between Russia and China, under the heading of the Rome Postal Conventions May 26 
 1906 (No. 1906/3, ante), at p. 597, ante.
 
 774 
 
 CHINA TREATIES AND AGREEMENTS 
 
 administration is to pay the Chinese Eastern Railway a sum of ten thousand 
 eight hundred roubles (Rs. 10,800) for the first year. Payments will be made 
 quarterly. 
 
 4. — All such public mails as can not be put into these compartments, for lack 
 of space, will be carried in the baggage cars or goods cars of the mail trains and 
 mixed trains (i.e., for the conveyance of mails and passengers), and will pay 
 twice the tariff for baggage in force on the lines of the Chinese Eastern Railway. 
 
 Note. — Exception is to be made in the case of printed matter, newspapers, 
 etc., the price of transporting which will be the subject of a special agreement. 
 
 5.— The expenses incident to the alteration and putting into order of the 
 compartments in the mail cars for the transportation of Chinese official mails will 
 be chargeable to the Chinese Postal Administration, which will furthermore pay 
 a sum of three hundred roubles (Rs. 300) per year per car for the upkeep and 
 ordinary repairs of these compartments. 
 
 6. — It is strictly forbidden to carry anything but postal matter in the com- 
 partments reserved for the Chinese posts in the mail cars. 
 
 7. — The Chinese Eastern Railway assumes no responsibility in regard to 
 the safety of the Chinese mails transported in its cars. 
 
 Done in double original at Peking, February 6/19, 1909, and signed: 
 
 For the Chinese Eastern For the Chinese Postal 
 
 Railway Administration, Administration, 
 
 (Sgd.) R. Barrier, T. Piry, 
 
 Chief of the Peking Section. Secretary-General of Imperial Posts. 
 
 and approved : 
 
 J. KOROSTOVETZ, 
 
 Envoy Extraordinary and Minister 
 
 Plenipotentiary of Russia. 
 
 (Seal) 
 
 Robert E. Bredon, 
 Acting Inspector-General of 
 Imperial Customs and Posts. 
 (Seal) 
 
 NUMBER 1909/3. 
 
 GREAT BRITAIN (Pauling & Company, Limited) AND CHINA. 
 
 Agreement for a preliminary survey for a railway line from Kueilin to Ch'uan- 
 
 chou.—May 19, 1909. 
 
 CHANG, Governor of Kwangsi, Vice President of the Army Board, being 
 about to engage engineers to make a preliminary survey of a railway line 
 from Kueilin to Ch'uan-chou, such survey to be used for the eventual construction 
 of the line, hereby enters into the following agreement with Messrs. Pauling & 
 Company Limited to undertake a preliminary survey and engage two engineers 
 to proceed to Kueilin and Ch'uan-chou and conduct such survey.
 
 NUMBER 1909/3: MAY 19, 1909 775 
 
 1. — ^Messrs. Pauling & Company Limited undertake to make a survey from 
 Kueilin to the boundary of Kwangsi and Hunan provinces at the Huang Sha 
 River in Ch'uan-chou with a view to its being used for the eventual construction 
 of a section of railway by the provincial authorities, between these two places. 
 
 Such survey is to be carried out in accordance with the terms of the Memo- 
 randum drawn up by the Engineer-in-Chief of the Canton-Kowloon Railway 
 which forms a separate document. 
 
 Messrs. Pauling and Company Limited undertake to engage two first class 
 engineers whose salaries and expenses from England to Kueilin, during the survey 
 operations between Kueilin and Ch'uan-chou and on their return to England, are 
 all included in the lump sum of three thousand four hundred pounds sterling 
 which the provincial authorities of Kwangsi undertake to pay for the survey. 
 
 2. — Messrs. Pauling and Company Limited having undertaken to engage, on 
 behalf of the authorities of Kwangsi two engineeers to undertake the survey in 
 accordance with the terms of the Memorandum forming the separate document, 
 it is hereby stipulated that there will be no careless or inadequate work per- 
 formed in connection with the survey. 
 
 If it should prove that there has been any careless or inadequate work, 
 Messrs. Pauling and Company Limited will send another engineer to make a 
 fresh survey. 
 
 3. — ]\Iessrs. Pauling and Company Limited shall only be concerned with the 
 survey. If eventually, the province of Kuangsi wishes to build the railway no 
 matter whether it is built by the province itself or whether the contract for its 
 construction is given to foreigners, the provincial authorities reserve the right 
 to form an independent decision in which Messrs. Pauling and Company shall 
 have no concern. 
 
 4. — The distance between Kueilin and Ch'uan-chou via the Huang Sha River 
 is roughly 100 English miles, or 330 Chinese li. If, when the survey comes to be 
 made, it is found that the exact distance is less or more than the estimate, the 
 contract price of £3,400 shall nevertheless be adhered to and no extra charge shall 
 be made over and above this amount on the score of the estimated length of 100 
 miles having been exceeded. 
 
 5. — Messrs. Pauling and Company Limited shall supply all necessary survey- 
 ing instruments. 
 
 6. — All living expenses of the engineers conducting the survey together with 
 all expenses for servants, bearers, transport of baggage, and surveying instru- 
 ments, boats, and coolies, will be borne by Messrs. Pauling and Company 
 Limited. 
 
 7. — It will be necessary to provide an escort to protect the engineers in making 
 their survey. The salaries of the officers and the pay of the men will be 
 defrayed by the Kwangsi authorities. 
 
 8. — Two Chinese interpreters conversant with the English language will be 
 required for the survey. Their salaries will be paid by the provincial authorities. 
 These interpreters shall be graduates of the Naval College who have qualified in 
 surveying. These interpreters will accompany the engineers over the whole route. 
 The engineers will utilise all occasions to teach them surveying methods in order
 
 776 CHINA TREATIES AND AGREEMENTS 
 
 that, on completion of the survey and plans they will not be liable to fall into 
 any errors. 
 
 9. — The contract price of i3,400 will be paid in five instalments. The first 
 instalment of i500 will be paid on the date of signature of this agreement. 
 £500 will be paid on arrival of the engineers at Kueilin. £1,000 will be paid when 
 more than half the survey is completed. £1,000 will be paid when, on completion 
 of the survey, the estimate and plans are handed in. As soon as the estimates and 
 plans have been passed by an engineer of standing, and it is established that they 
 do not deviate in any way from the lines laid down in the memorandum forming 
 the separate document, the remaining £400 will be paid. 
 
 10. — The engineers sent by Messrs. Pauling & Company Limited must obey 
 the regulations of the Board of Communications. 
 
 In the event of misconduct on the part of the engineers or infringement of 
 the Board's regulations, Messrs. Pauling & Company Limited shall immediately 
 dismiss the offending party and substitute another engineer at their own expense, 
 the Provincial Authorities not being answerable in any way. 
 
 Messrs. Pauling & Company will be careful to select highly qualified engi- 
 neers of good conduct for these appointments. 
 
 IL — The engineeers engaged by Messrs. Pauling & Company Limited must 
 reach Kueilin within three months from the date of signature of the agreement. 
 If they fail to arrive within the time limit, this agreement will become null and 
 void and the first instalment of £500 will be repayable to the Provincial 
 Authorities. 
 
 12. — This agreement will be signed in duplicate, one copy being kept by each 
 party. 
 
 Taotai Wei Han, Director of the Canton-Kowloon Railway will sign on 
 behalf of the Governor of Kwangsi and Oswald Christian Ormsby on behalf of 
 the firm of Messrs. Pauling & Company Limited. 
 
 (Signed) 
 
 H. Wei, on behalf of the Governor of Kwangsi. 
 O. C. Ormsby, on behalf of Pauling & Co., Ltd. 
 
 Signatures certified to by H. H, Fox, H. B, M. Consul General. 19-5-'09. 
 
 NUMBER 1909/4. 
 
 GREAT BRITAIN (Hongkong) AND CHINA. 
 
 Arrangement regulating the exchange of postal parcels.* — June 5 and 22, 1909. 
 
 The exchange of postal parcels between the Administration of Posts of 
 
 Hongkong and the Administration of Customs and Posts of China, provided for 
 
 * The terms of this arrangement would appear to have been modified by the fact or 
 the Chinese Government's adherence, from September 1, 1914, to the parcels post conven- 
 tion concluded at Rome, May 26, 1906 (No. 1906/3, ante).
 
 NUMBER 1909/4: JUNE 5 AND 22, 1909 771 
 
 in Article VIII of the Postal xA^rrangement concluded on the 12th December 1904 
 between the two above-mentioned Administrations,! shall be regulated according 
 to the conditions hereunder stated. 
 
 Article I. — Weight of Parcels. — The maximum weight of a parcel, 
 whether of declared value or not, shall not exceed five kilogrammes (eleven 
 pounds). 
 
 However, there shall be an exception made for parcels destined for Offices 
 of the Administration of Customs and Posts of China that are not connected by 
 railway or by steamer, in which case the limit shall be three kilogrammes (six 
 pounds) ; but this limit may at any time hereafter be raised by mutual agreement 
 between the two Administrations. 
 
 Article II.— Dimensions of Parcels. — The postal parcels to which this 
 Convention is for the present to apply shall be those of which no dimension shall 
 exceed sixty centimetres (two feet) in any one direction and of which the volume 
 shall not exceed twenty-five cubic decimetres (one cubic foot). 
 
 Parcels, however, containing umbrellas, walking-sticks, charts, plans, and 
 such-like articles shall be accepted if they do not exceed one metre (three feet 
 three inches) long and twenty centimetres broad or thick. 
 
 The limits of weight, dimensions, and volume herein determined may be 
 increased by mutual agreement. 
 
 Article III. — Exchange of Parcels. — The exchange of postal parcels shall 
 take place through the intermediary of the British Offices established in China 
 and the Chinese Offices established in the same localities as these British Offices ; 
 and where there are no British Offices between the British and Chinese Post 
 Offices at Shanghai for postal parcels to or from river and coast ports north of 
 Shanghai ; but for postal parcels to or from southern ports, direct between the 
 Offices of China and Hongkong. 
 
 Article IV. — Transmission of Parcels. — 1. — The Hongkong Administra- 
 tion shall be intermediary (by means of the services it may maintain) for the 
 exchange of parcels between China on the one part and the United Kingdom, 
 British possessions, and foreign countries on the other. 
 
 2. — The Administration of Customs and Posts of China engages on its part 
 to assure the transmission by its services of all parcels that shall be handed to it 
 by the Hongkong Administration. 
 
 Article V. — Tariffs and Postage. — Each Administration shall itself deter- 
 mine the taxes and duties to be collected on postal parcels forwarded by its own 
 Offices. 
 
 The prepayment of postage on postal parcels shall be obligatory before 
 departure. However, the fee for delivery shall be payable by the addressee. 
 
 Moreover, parcels destined for places in China not connected by railway or 
 by steamer may be further charged for transmission beyond railway or steamer 
 services, at the expense of the addressee, supplementary taxes the amount of 
 which shall be determined by the Administration of Customs and Posts of 
 China. 
 
 t For the text of this arrangement, see note concerning the Rome conventions of May 
 26, 1906 (No. 1906/3, ante).
 
 778 CHINA TREATIES AND AGREEMENTS 
 
 It is understood that the Hongkong Administration shall not tax parcels 
 exchanged between its Offices in China at rates lower than those charged by the 
 Chinese Administration of Posts. 
 
 Article VI. — Transit Charges. — 1. — The Administration of Customs and 
 Posts of China shall pay to the Administration of Posts of Hongkong the follow- 
 ing charges : — 
 
 For each parcel destined for Hongkong or any of its x\gencies in China, 
 
 an inland postage of fr. 0.25. 
 For parcels destined for the United Kingdom, British possessions, and 
 foreign countries, the charges indicated in Table A drawn up by the 
 Administration of Posts of Hongkong. 
 For each closed box containing parcels exchanged between two Chinese 
 Post Offices through the intermediary of Hongkong, a transship- 
 ment charge of $1 Mex. 
 2. — The Administration of Posts of Hongkong shall pay to the Administra- 
 tion of Customs and Posts of China the following charges : — 
 
 (a.) For each parcel handed to the Chinese Administration, fr. 0.25. 
 (b.) For each parcel necessitating maritime or territorial transit within 
 the limits of steam communications, an additional charge of 
 fr. 0.50. 
 (c.) For parcels destined for places outside of China, the additional 
 charges indicated in Table A drawn up by the Administration 
 of Customs and Posts of China. 
 N.B. — Each parcel destined for a place beyond the limits of steam 
 communication (i.e., not over three kilogrammes weight) will pay at 
 destination the Chinese domestic tariff. 
 Article VII. — Parcels of Declared Value. — Besides the transit charges, 
 the Administration of origin shall pay, in respect of insurance fees on parcels of 
 declared value, to the other Administration, and, if need be, to each Administra- 
 tion participating in the transmission when such Administration is under guaran- 
 tee of responsibility, a proportional part of the determined insurance fees, viz. : 
 for 300 francs or fraction of 300 francs, fr. 0.05 for territorial transit, and fr. 
 0.10 for maritime transit. 
 
 Article VIII. — Acknowledgement of Receipt. — The sender of a postal 
 parcel may obtain an acknowledgement of receipt of his parcel by paying a fee 
 that shall not exceed fr. 0.25. 
 
 The same fee may be charged when, subsequent to posting, inquiries are 
 made about a parcel, provided the special fee for an acknowledgment of receipt 
 has not been paid already. 
 
 This charge shall accrue entirely to the Administration of origin. 
 Article IX. — Delivery and Customs Formalities. — It shall be allowable 
 for the country of destination to collect from the addressee a fee that shall not 
 exceed fr. 0.25 per parcel for delivery and Customs formalities. 
 
 Article X. — Annulment of Customs Duties. — In the caSe of the retrans- 
 mission or of the return of a parcel to the Office of origin, the Customs duties 
 that have been paid on the parcel in the country of first destination shall be 
 annulled.
 
 NUMBER 1909/4: JUNE 5 AND 22, 1909 779 
 
 Article XL — Responsibility. — 1. — Except in cases of force majeure, if a 
 postal parcel be lost, despoiled, or damaged, the sender or, in his default or by 
 his request, the addressee shall be entitled to an indemnity corresponding to the 
 actual amount of the loss, the spoliation, or the damage, unless this damage be 
 caused by the fault or by the negligence of the sender, or be due to the nature 
 of the parcel itself; but this indemnity shall not exceed 25 francs for ordinary 
 parcels and the declared value for parcels of declared value. 
 
 Besides, the sender of a lost parcel shall be entitled to refund of the postage 
 on the parcel and also to the postage expenses connected with making the inquiries 
 when the cause of the claim is due to the fault of the Post Office. However, the 
 insurance fee shall be retained by the Postal Administrations. 
 
 2. — The obligation to pay the indemnity shall be incumbent upon the 
 Administration of the Office of origin ; it shall then rest with this Administration 
 to prefer a claim against the responsible Administration, that is to say, against 
 the Administration upon whose territory or in whose services the loss, spoliation, 
 or damage shall have taken place. 
 
 3. — Until proved to the contrary, the responsibility shall remain with the 
 Administration which, having received the parcel without making any remark, 
 can establish neither its delivery at its destination nor, as may happen, its regular 
 transmission to the next Administration. 
 
 4. — The payment of the indemnity by the Office of origin shall be made as 
 soon as possible, and not later than one year after the date of the claim. The 
 responsible Office shall refund without delay to the Office of origin the amount 
 of the indemnity paid by the latter. 
 
 The Office of origin shall be authorised to indemnify the sender on behalf 
 of the intermediary Office or of the Office of destination which, having been 
 regularly notified, shall have allowed one year to elapse without having settled the 
 claim. Moreover, in the case of an Office, whose responsibility shall be duly estab- 
 lished, which shall decline altogether to pay the indemnity, it shall undertake to 
 pay, besides the indemnity, the necessary expenses resulting from undue delay 
 in making the payment. 
 
 5. — It is understood that a claim shall be admitted only if made within one 
 year from the date of posting the parcel ; after this limit the claimant shall not 
 be entitled to any indemnity. 
 
 6. — If the loss or damage happen during transmission between the Offices 
 of exchange of the two Administrations, thus rendering it impossible to decide 
 upon which of the two territories the act took place, the two Administrations 
 concerned shall share the loss equally. 
 
 7. — The Administrations shall cease to be responsible for postal parcels 
 delivery of which shall have been taken by the persons entitled to receive them. 
 
 8. — The Administration of Posts of Hongkong shall not be liable for loss or 
 damage to contents of parcels exchanged in closed mails between two Chinese 
 Post Offices through the intermediary of the Hongkong Administration. 
 
 Article XII. — Offices authorised to exchange Parcels. — The Postal 
 Administrations of Hongkong and of China shall designate the Offices or the 
 localities at which the exchange of postal parcels is to be allowed. 
 
 They shall supply each other with a list of the places open to this service.
 
 780 CHINA TREATIES AND AGREEMENTS 
 
 Article XIII. — Articles prohibited. — Parcels shall not contain any letter 
 or note, either sealed or open, that might establish a correspondence between the 
 sender and the addressee. Exception may be made only in the case of invoices, 
 price lists, and other open documents that relate exclusively to the contents of the 
 parcel. 
 
 The sender shall also be forbidden to enclose in a parcel any explosive or 
 inflammable material and generally all articles the transmission of w^hich presents 
 any danger whatsoever, or the importation of which shall be contrary to the 
 laws or to Customs regulations or otherwise not authorised. 
 
 Parcels containing money, articles made of gold or of silver, and other precious 
 articles must have their value declared. 
 
 In case of infraction of these above rules the parcel shall simply be returned 
 to the place of origin. 
 
 The two Administrations shall communicate to each other a list of things 
 and products forbidden importation into their territories. 
 
 Article XIV. — Suspension of the Service. — In extraordinary circumstan- 
 ces, of a nature to justify the measure, each Administration may temporarily 
 suspend the parcel post service, either entirely or partially, on condition that 
 immediate notice be given, if need be by telegraph, to the other Administration 
 concerned. 
 
 Article XV. — Fulfilment of the Convention. — The Postal Administra- 
 tions of Hongkong and of China shall settle all matters of detail and of disposition, 
 in order to ensure the fulfilment of the present Convention. 
 
 They shall supply to each other a list of the countries with which they may 
 respectively serve as intermediaries. 
 
 Article XVI. — General Provision. — The internal legislation of each of 
 the contracting countries, as well as the dispositions of the International Conven- 
 tion of Washington and of the " Reglement de detail " thereto annexed, shall 
 remain applicable to all points not herein provided for or not contrary to the 
 present Convention. 
 
 Article XVII. — Duration of the present Convention, — The present 
 Arrangement shall be put into operation from a day mutually to be agreed upon 
 by both Administrations, and it shall remain in force for an indefinite period. 
 However, the contracting parties reserve to themselves the right to make at any 
 time such modifications therein as they may by mutual agreement judge neces- 
 sary, or to terminate the Arrangement by giving at least six months notice in 
 advance. 
 
 Done in duplicate and signed at : 
 
 Hongkong, 22nd June 1909: Peking, 5th June 1909: 
 
 In the name of the In the name of the 
 
 Postal Administration of Hongkong : Postal Administration of China : 
 
 C. McI. Messer, T. Piry, 
 
 Postmaster General, Postal Secretary, 
 
 Chinese Imperial Post Office.
 
 NUMBER 1909/5 : AUGUST 3, 1909 781 
 
 NUMBER 1909/5. 
 
 BRAZIL AND CHINA. 
 Arbitration Convention* — August 3, 1909. 
 
 The President of the United States of Brazil and his Majesty the Emperor 
 of China, desiring to conclude an Arbitration Convention in application of the 
 principles enounced in Articles 15 to 19 and 21 of the Convention for the Pacific 
 Settlement of International Disputes, signed at the Hague on the 29th July, 1899, 
 and in Articles Z7 to 40 and 42 of the Convention signed in the same city of the 
 Hague on the 18th October, 1907, have named as their plenipotentiaries, that is 
 to say : 
 
 The President of the United States of Brazil, Mr. M. C. Goncalves Pereira, 
 Envoy Extraordinary and Minister Plenipotentiary to China and to Japan; 
 
 His ^Majesty, the Emperor of China, Mr. Lien Fang, Vice-President of the 
 Board of Foreign Affairs; 
 
 Who, being duly authorized, have agreed upon the following articles : 
 
 Art. I. — Differences which may arise of a legal nature or relating to the 
 interpretation of treaties existing between the two Contracting Parties, and which 
 it may not have been possible to settle by diplomacy, shall be referred to the 
 Permanent Court of Arbitration established at the Hague by the Convention 
 of the 29th July, 1899, provided, nevertheless, that they do not affect the vital 
 interests, the independence, or the honor of the two Contracting States, and do" 
 not concern the interests of Third Parties ; it being further understood that, if 
 one of the two Contracting Parties prefer it, all arbitration resulting from the 
 present Convention shall be submitted to a Head of a State, to a friendly 
 Government, or one or more arbitrators chosen outside the list of the Tribunal of 
 the Hague. 
 
 Art. II. — In each individual case the High Contracting Parties before appeal- 
 ing to the Permanent Court of Arbitration at the Hague, to other arbitrators 
 or to a sole arbitrator, shall conclude a special agreement defining clearly the 
 matter in dispute, the scope of the powers of the arbitrator or arbitrators, and the 
 periods to be fixed for the formation of the arbitral tribunal or the choice of an 
 arbitrator or of arbitrators, as well as the rules of the procedure. 
 
 It is understood that with respect to the United States of Brazil, such special 
 agreement will be made by the President of the Republic with the consent of 
 the National Congress, and with respect to the Chinese Empire, by the Emperor 
 in such form and under such conditions as he shall deem necessary or con- 
 venient. 
 
 Art. hi. — The present Convention shall remain in force for the period 
 
 * Translation, as printed in Am. Int. Law Journal, Supplement, 1910, p. 255. 
 Portuguese, French and Chinese texts printed in Customs, vol. II, p. 824; French text 
 in Hsiian Tung Tiao Yiieh, vol. I, p. 6.
 
 782 CHINA TREATIES AND AGREEMENTS 
 
 of five years from the date of the exchange of ratifications. If it is not 
 denounced six months before the expiration of this period it will continue to 
 remain in force for a new period of five years and so successively. 
 
 Art. IV. — The present Convention will be ratified after the legal formalities 
 in the two countries have been observed, and the ratifications will be exchanged 
 at Rio de Janeiro as soon as possible. 
 
 The present Convention is drawn up in the Portuguese, Chinese and French 
 languages. Four copies have been prepared. In case of disagreement, the 
 French text alone shall be authoritative. 
 
 In testimony whereof we, the above-named plenipotentiaries, have signed 
 the present Convention and affixed our seals thereto. 
 
 Done at Peking the third of August, one thousand nine hundred and nine, 
 corresponding to the eighteenth day of the sixth moon of the first year of Hsiian 
 Tung. 
 
 (Signed) M. C. Goncalves Pereira. 
 Lien Fang. 
 
 NUMBER 1909/6. 
 
 JAPAN (South Manchuria Railway Company) AND CHINA. 
 
 Detailed Agreement for the Hsinniint'im-Mukden Railway loan* — 
 
 August 18, 1909. 
 
 The deputy, named below, of the Chinese Board of Posts and Communica- 
 tions (hereinafter called the Board of Posts and Communications) and the 
 deputy, named below, of the South Manchuria Railway Joint Stock Company 
 (hereinafter called the Company), acting in accordance with the Hsinmintun- 
 Mukden and Kirin-Changchun Railway agreements between the Chinese and 
 Japanese Governments of the 33rd year of Kuanghsii, 3rd moon, 3rd day, or the 
 40th year of Meiji, 4th month, 15th day (April 15, 1907), and also in accord- 
 ance with the supplementary agreement of the 34th year of Kuanghsii, 10th moon, 
 19th day, or the 41st year of Meiji, 11th month, 12th day (November 12, 
 1908) (hereinafter called the Supplementary Agreement), have drawn up the 
 following agreement providing for a loan for that part of the Hsinmint'un- 
 Mukden Railway lying east of the Liao River. 
 
 Article 1. — In accordance with Article 1 of the Supplementary Agreement, 
 
 * Translation from the Chinese text as printed in Wang, p. 137. 
 
 In connection with this agreement see also the Convention regarding the Hsinmin- 
 Mukden and Kirin-Changchun railways, April 15, 1907 (No. 1907/3, ante) : the Agreement 
 for the handing over by Japan of the Hsinmin-Mukden Railway, May 27, 1907 (No. 1907/5, 
 ante) : the Supplementary Agreement for a loan for the Hsinmin-Mukden and Kirin- 
 Ch'angch'un railways, November 12, 1908 (No. 1908/18, ante).
 
 NUMBER 1909/6: AUGUST 18, 1909 783 
 
 the Company agrees to make a loan of half the amount required for the con- 
 struction of that part of the Hsinmint'un-AIukden Railway lying east of the 
 Liao River, namely yen 320,000, Japanese currency, at a discount of 93, to be 
 handed over at Tokyo to the Chinese Minister to Japan, the Chinese Minister 
 there to hand over to the Company a certificate as per Form A attached to this 
 agreement. 
 
 Article 2. — After this agreement has been drawn up, within one month 
 after a note is addressed thereon to the Japanese Minister at Peking, the loan 
 fixed as above will be paid in full in one instalment on the date, fixed by the 
 Chinese Government. The date for the receiving of the loan by the Chinese 
 Government will be notified to the Company ten days before the loan is paid. 
 
 Article 3. — The loan will be for a term of eighteen years, and will be 
 repaid in thirty-six equal instalments, beginning from the date when the loan is 
 paid to China, every half year (Gregorian Calendar), in accordance with the 
 attached amortization table. Interest on that part of the capital which is repaid 
 will cease on the date of payment. 
 
 Article 4. — Interest will be reckoned from the date of the payment of the 
 loan to China, and will be payable once every half year (Gregorian Calendar) 
 in accordance with the attached table. 
 
 Article 5. — The Director General of the Peking-Mukden Line will turn 
 over the capital and interest, as payment thereof falls due, to the Company at 
 Dairen or Tokyo, as convenient to the Chinese Government. The Company will 
 then deliver to the Director General of the Peking-Mukden Line certificates as 
 per Forms B and C attached to this agreement, in accordance with the amount 
 of capital and interest paid, as per the attached amortization and interest tables. 
 
 Article 6. — In accordance with Article 5 of the Supplementary Agreement, 
 the capital and interest due annually will be reduced to Hang P'ing Hua Pao 
 Taels due each month, and deposited at the Tientsin branch of the Yokohama 
 Specie Bank. 
 
 Interest on the deposits referred to in the preceding paragraph will be paid 
 to the Peking-Mukden Line by the Tientsin branch of the said bank in accord- 
 ance with the current advertised rate of interest. 
 
 The matters referred to in the preceding two paragraphs will be carried 
 on during the life of the said bank. 
 
 If the life of the said bank should expire and should be extended, the 
 same procedure will continue to be followed. 
 
 If the life of the said bank should not be extended, the Company will 
 then indicate another bank, and the same procedure will be continued. 
 
 Article 7. — All matters in this agreement pertaining to the payment of 
 capital and interest, which may not have been clearly stated, may be discussed 
 and settled by the Chinese Railway Administration (hereinafter called the Ad- 
 ministration) and the Company, as occasion therefor arises. 
 
 Article 8. — This agreement must be approved by the Governments of the 
 two nations, after which it will be put into efifect . 
 
 Article 9. — After the agreement has been signed and sealed, the Director 
 General of the Administration will refer it by memorial to the Throne, and the
 
 784 CHINA TREATIES AND AGREEMENTS 
 
 edict of the Throne will be communicated by a note from the Chinese Board of 
 Foreign Affairs to the Japanese Minister at Peking. 
 
 Article 10. — This agreement will become invalid after the principal and 
 interest have been paid in full. 
 
 Article 11. — The original copies of this agreement will be drawn up in 
 quadruplicate, in Chinese and Japanese, and one copy be given to each of the 
 following: the Chinese Board of Foreign Affairs, the Administration, the 
 Japanese Minister at Peking, and the Company. 
 
 Article 12. — Should there be a disagreement in regard to the interpretation 
 of the terms of this agreement, the Administration and the Company will each 
 choose a person from outside as arbitrator. If the arbitrators can not come 
 to a decision, they will then both choose a person from outside to be chief 
 arbitrator. If the two arbitrators can not agree in their choice, then each will 
 choose one person, one of whom will be confirmed by lot. Among these men the 
 decision of the majority will rule, and each side must abide thereby without 
 further question. 
 
 The 1st year of Hsiian T'ung, 7th moon, 3rd day: 
 The 42nd year of Meiji, 8th month, 18th day : 
 (August 18, 1909). 
 
 (Signed and sealed) Lu Tsu-Hua. 
 
 Expectant Prefect, Wearer of the Peacock Feather, 
 Deputy of the Board of Posts and Communications. 
 
 (Signed and sealed) 
 
 The Director-General of the South Manchuria 
 Railway Joint Stock Company. 
 Attached herewith : f 
 
 Certificate Forms A, B, and C; 
 Interest and Amortization Tables. 
 
 t Not printed.
 
 NUxMBER 1909/7: AUGUST 18, 1909 785 
 
 NUMBER 1909/7. 
 
 JAPAN (South Manchuria Railway Company) AND CHINA. 
 Detailed Agreement for the Kirin-Changchiin Railway loan* — August 18, 1909. 
 
 The deputy, named below, of the Chinese Board of Posts and Communica- 
 tions (hereinafter called the Board of Posts and Communications) and the 
 deputy, named below, of the South IManchuria Railway Joint Stock Company 
 (hereinafter called the Company), acting in accordance with the Hsinmintun- 
 Mukden and Kirin-Changchun Railway agreements between the Chinese and 
 Japanese Governments of the 33rd year of Kuanghsii, 3rd moon, 3rd day, or the 
 40th year of Meiji, 4th month, 15th day (April 15, 1907), and also in accord- 
 ance with the Supplementary Agreement of the 34th year of Kuanghsii, 10th 
 moon, 19th day, or the 41st year of Meiji, 11th month, 12th day (November 
 12, 1908) (hereinafter called the Supplementary Agreement), have drawn up the 
 following agreement providing for a loan for the Kirin-Changchun Railway. 
 
 Article 1. — In Accordance wnth Article 1 of the Supplementary Agreement, 
 the Company agrees to make a loan of half the amount required for the con- 
 struction of the Kirin-Changchun Railway, namely yen 2,150,000, Japanese 
 currency, at a discount of 93, to be handed over at Tokyo to the Chinese 
 Minister to Japan, the Chinese Minister there to hand over to the Company a 
 certificate as per Form A attached to this agreement. 
 
 Article 2. — After this agreement has been drawn up, within one month 
 after a note is addressed thereon to the Japanese Minister at Peking, the loan 
 fixed as above will be paid in full in one instalment on the date fixed by the 
 Chinese Government. The date for the receiving of the loan by the Chinese 
 Government will be notified to the Company ten days before the loan is paid. 
 
 Article 3. — The loan will be for a term of twenty-five years, reckoning 
 from the date when payment is made to China. Beginning from the sixth year it 
 will be repaid in forty equal instalments once every half year (Gregorian Cal- 
 endar), in accordance with the attached amortization table. Interest on that 
 part of the capital which is repaid will cease on the date of repayment. 
 
 Article 4. — Interest will be reckoned from the date of the payment of the 
 loan to China, and will be payable once every half year (Gregorian Calendar) in 
 accordance with the attached table. 
 
 Article 5. — The Director General of the Railway Administration of the 
 Chinese Board of Posts and Communications (hereinafter called the Administra- 
 
 * Translation from the Chinese text as printed in Wang, p. 155. 
 
 In connection with this agreement see also the Convention regarding the Hsinmin- 
 Mukden and Kirin-Changchun railways, April 15, 1907 (No. 1907/3, ante) ; Supplementary 
 Agreement for a loan for the Hsinmin-Mukden and Kirin-Changchun railways, November 
 12, 1908 (No. 1908/18, ante) ; Article 6 of the agreement relating to Chientao, September 
 4,' 1909 (No. 1909/10, post): Article 7 of the Sino-Japanese treaty respecting South Man- 
 churia and Eastern Inner Mongolia, May 25, 1915 (No. 1915/8, post); and the Kirin- 
 Ch'angch'un Railway loan agreement of October 12, 191/' (No. 1917/11, post).
 
 786 CHINA TREATIES AND AGREEMENTS 
 
 tion) or the Director General of the Kirin-Changchun Railway will turn over 
 the capital and interest, as payment thereof falls due, to the Company at Dairen 
 or Tokyo, as convenient to the Chinese Government. The Company will then 
 deliver to the Director General of the Kirin-Changchun Railway certificates as 
 per Forms B and C attached to this Agreement, in accordance with the amount 
 of capital and interest paid, as per the attached amortization and interest tables. 
 
 Article 6. — The traffic receipts of the Kirin-Changchun Railway will be 
 deposited at the branches or suboffices of the Yokohama Specie Bank, either at 
 Changchun or at Kirin. If, however, such receipts should be in a currency 
 ordinarily not accepted by the branches or suboffices of the said bank, they will 
 not be deposited therein. It follows from this that the Company and the said 
 bank can not, in accordance with paragraph (/) of Article 3 of the Convention,! 
 require the Kirin-Changchun Railway Administration to make up the equivalent 
 of such currency which, as stated above, is not ordinarily accepted by the 
 branches or suboffices of the said bank, to be converted at the current rate and 
 deposited at the said bank. 
 
 Of the funds deposited, to which reference is made in the preceding para- 
 graph, if a surplus remains after the Kirin-Changchun Railway has made dis- 
 bursements therefrom, then it will be kept on deposit up to the amount of six 
 months' interest on the loan. Any surplus thereafter will be subject to the dis- 
 position of the Director General of the Administration, who may instruct the 
 Director General of the Kirin-Changchun Railway to apply it to the use of the 
 Chinese Government. 
 
 Interest will be paid by the bank on the deposits referred to above in the 
 first paragraph, in accordance with the current rate of interest advertised by 
 the branch banks or suboffices. 
 
 The matters referred to in the three preceding paragraphs will be carried 
 on during the life of the said bank. 
 
 If the life of the said bank should expire and should be extended, the same 
 procedure will continue to be followed. 
 
 If the life of the said bank should not be extended, the Company will then 
 indicate another bank, and the same procedure will be continued. 
 
 Article 7. — All matters in this agreement pertaining to the payment of 
 capital and interest, which may not have been clearly stated, may be discussed 
 and settled by the Chinese Railway Administration and the Company, as occasion 
 therefor arises. 
 
 Article 8. — This Agreement must be approved by the Governments of the 
 two nations, after which it will be put into effect. 
 
 Article 9. — After this agreement has been signed and sealed, the Director 
 General of the Administration will refer it by memorial to the Throne, and the 
 edict of the Throne will be communicated by a note from the Chinese Board of 
 Foreign Affairs to the Japanese Minister at Peking. 
 
 Article 10. — This agreement will become invalid after the principal and 
 interest have been paid in full. 
 
 Article 11. — The original copies of this agreement will be drawn up in 
 
 "fl.e., the convention of April 15, 1907, referred to above.
 
 NUMBER 1909/8: AUGUST 19, 1909 787 
 
 quadruplicate, in Chinese and Japanese, and one copy be given to each of the 
 following : the Chinese Board of Foreign Affairs, the Administration, the 
 Japanese Minister at Peking, and the Company. 
 
 Article 12. — Should there be a disagreement in regard to the interpretation 
 of the terms of this agreement, the Administration and the Company will each 
 choose a person from outside as arbitrator. If the arbitrators can not come to a 
 decision, they will then both choose a person from outside to be chief arbitrator. 
 If the two arbitrators can not agree in their choice, then each will choose one 
 person, one of whom will be confirmed by lot. Among these men the decision of 
 the majority will rule, and each side must abide thereby without further question. 
 The 1st year of Hsiian T'ung, 7th moon, 3rd day: 
 The 42nd year of Meiji, 8th month, 18th day: 
 (August 18th, 1909). 
 (Signed and sealed) Lu Tsu-Hua 
 
 Expectant Prefect, Wearer of the Peacock Feather, 
 Deputy of the Board of Posts and Communications. 
 
 (Signed and Sealed) 
 
 The Director-General of the South Manchuria 
 Railway Joint Stock Company. 
 Attached herewith :$ 
 
 Certificate Forms A, B, and C; 
 Interest and Amortization Tables. 
 
 NUMBER 1909/8. 
 
 JAPAN AND CHINA. 
 
 Memorandum concerning the reconstruction of the Antitng-Mukden Railway* — 
 
 August 19, 1909. 
 
 The Imperial Japanese Consul General at Mukden, Mr. Koike, and the 
 Viceroy of the Three Eastern Provinces, Hsi Liang, and the Chinese Governor 
 of Mukden, Cheng, in accordance with the orders of their respective Govern- 
 ments, have agreed upon the following in reference to the Antung-Mukden Rail- 
 way : 
 
 1. — The same gauge as that of the Peking-Mukden Railway shall be adopted. 
 
 * Translation from the Japanese text as printed in Shina Kankei Tokushu Joyaku Isan, 
 p. 41. A translation of the five articles is printed also in F. E. Review, vol. VI J I, p. 16, 
 and vol. XI, p. 389. 
 
 In connection with this memorandum see also the additional agreement attached to the 
 Treaty between Japan and China concerning Manchuria, December 22, 1905 (No 1905/18, 
 ante), particularly Article 6: Agreement concerning mines and railways in Manchuria, Sep- 
 tember 4, 1909 (No. 1909/9, post) ; Convention relating to railway connections at Antung, 
 November 2, 1911 (No. 1911/11, post). 
 
 t Not printed.
 
 788 CHINA TREATIES AND AGREEMENTS 
 
 2. Both Japan and China shall recognize and approve, on the whole, the 
 
 line as already surveyed and agreed to by the commissioners of the two Govern- 
 ments, but the location of that portion of the line from Chen-hsiang-tun to 
 Mukden shall remain to be decided by mutual conference between the two 
 
 countries. 
 
 3. — On and from the date when the memorandum is signed, negotiations for 
 the purchase of land and for the adjustment of all other details shall be instituted-! 
 
 4. From the day following the signing of the memorandum, that is from 
 
 the day after the negotiations above mentioned are instituted, the work of recon- 
 struction shall be accelerated. 
 
 5. — China shall instruct the local officials along the line to give every facility 
 regarding the execution of the work. 
 
 Accordingly, two copies of this having been drawn up in Japanese and in 
 Chinese, and sealed, one copy in each language will be retained by each party as 
 evidence of the agreement. 
 
 (l. s.) (Sgd.) Koike Chozo 
 
 (l. s.) (Sgd.) Hsi Liang 
 
 (l. s.) (Sgd.) Cheng 
 
 Note. 
 
 In Chung Hua Fa Kuei Ta Ch'uan is given, without indication of date, the Chinese 
 text of Regulations for the purchase of land for the Antung-Mukden Railway, of which 
 the translation is as follows: 
 
 Regulations for Purchase of Land for Antung-Mukden Railway. 
 
 " The question of the alteration of the Antung-Mukden Railway having been settled, 
 the Comissioner of Foreign Affairs for Fengtien, Teng Hsiao-hsien, appointed Yiian 
 Liang, senior clerk of his office, to negotiate the purchase of land with the head of the 
 Fengtien office of the South Manchuria Railway, Tso-T'eng-An-Chih-Chu. The regulations 
 have now been agreed to. The commissioner petitioned the viceroy and the governor to 
 issue circular instructions to the local officials along the line to issue orders within their 
 districts to act in accordance therewith. Surveying will be commenced after the harvests. 
 The regulations governing the purchase of the land are as follows: 
 
 "Article 1. — A Land Purchase Bureau (Kou Ti Chii) will be established for arrang- 
 ing the purchase of land required for the Antung-lNIukden Railway. The officers of the 
 bureau will be appointed by the Chinese authorities and the South Manchuria Railway 
 Company (hereinafter referred to as 'the Company'). 
 
 "Article 2. — The Land Purchase Bureau will be composed of a general bureau (Tsung 
 Chii) and two subbureaus (Fen Chii). Each subbureau will control six_ surveying parties 
 (Chang Liang Pan). The personnel and organization will be set forth in a supplemenary 
 table. 
 
 " Article 3. — The General Land Purchase Bureau will be established at Mukden and 
 will be composed of two chiefs of bureau, two assistant chiefs, and an executive staff. 
 The positions of chiefs of bureau will be occupied by the senior clerk of the office of the 
 Commissioner of Foreign Affairs and the head of the office of the South Manchuria Railway 
 Company. They will exercise general supervision over all matters connected with the 
 purchase of land. 
 
 " The assistant chiefs will be appointed by the Chinese authorities and the Company. 
 They will have special supervision over the purchase of land by the general bureau and 
 will also act as chiefs of the subbureaus. 
 
 " Positions on the executive staff will be filled by deputies of the Commissioner of 
 Foreign Affairs and appointees of the Company. 
 
 t See Note, infra.
 
 NUMBER 1909/8: AUGUST 19, 1909: NOTE 789 
 
 " Article 4. — A deputy familiar with the purchase of land will be appointed to the 
 subbureaus from each of the districts of Cheng Te, Pen Hsi, Feng Huang, and Antung, to 
 facilitate the purchase of land within these jurisdictions. 
 
 " Article 5. — Should it be necessary a subbureau can move its location out of one district 
 into another. 
 
 " Article 6. — The subbureaus will supervise the surveying parties and give them all 
 the assistance in their power, with a view to the early completion of the survey. They 
 will settle disagreements which may arise between the surveying parties and the owners 
 of the land. 
 
 " Article 7. — Should the subbureaus be unable to solve difficulties relating to land and 
 matters thereto appertaining, they will refer them to the general bureau for settlement. 
 
 " Article 8. — The Land Purchase .Bureau will have printed the forms described below 
 and stationery for distribution to the surveying parties. 
 
 " Article 9. — The deeds of sale will be drawn up on attached duplicate forms. They 
 will be signed and sealed by the seller, middlemen, and also by the village headman. The 
 originals will be deposited at the general bureau to be handed over to the company as 
 evidence of the property of the company. The duplicates will be transmitted to the dis- 
 burser of funds. 
 
 "Article 10. — A disburser of funds will be attached to each subbureau to have special 
 charge of paying out the purchase price of the land. 
 
 "Article 11. — The activities of the surveying parties will in general be as follows: 
 
 " (1) One of the executive staff will first investigate the conditions and ownership 
 of the land, after which, in company with the village headmen and the owners of adjoining 
 property, a survey will be made and an examination conducted of the deeds and other 
 evidence held by the owner of the land. 
 
 " (2) After the surveyors have completed the survey of the land required they will 
 reckon the area thereof and draw up a map. 
 
 " (3) One of the executive stafT will have special charge of the accounts and the 
 drawing up of deeds. 
 
 " Article 12. — The affixing of the seal to the deeds and the handing over of the price 
 of the land will take place at such localities and times, chosen by the subbureaus, as best 
 suit the convenience of the owners of the land. 
 
 " Article 13. — The head of the surveying party in each section will from time to time 
 render reports to the subbureaus, which will as soon as possible collect and submit them 
 to the general bureau. 
 
 "Article 14. — The tariff of prices of land and other property and the procedure as to 
 indemnification for losses will be fixed by another set of regulations. 
 
 " Article 15. — After the land in each section has been purchased a map will be drawn 
 up and an account form filled out of the land required, which will be signed and sealed 
 by the two Chinese and Japanese chiefs of bureau and one copy kept by each as evi- 
 dence. 
 
 "Article 16. — The company will be responsible for all expenses incurred by the Land 
 Purchase Bureau. 
 
 " Article 17. — The salaries and traveling expenses of the Chinese officials in the Land 
 Purchase Bureau will be settled separately. 
 
 " Article 18. — The salaries and traveling expenses of the Japanese officials in the Land 
 Purchase Bureau will be settled in accordance with the rules of the company. 
 
 "Supplementary Tabic of the Organization of the Antung-Mukden Land Purchase Bureau. 
 
 " Personnel of the general bureau : 
 
 2 Chiefs of bureau. 
 
 2 Assistant chiefs of bureau. 
 
 An executive staff. 
 " Personnel of each of the two subbureaus ; 
 
 1 Chief of the subbureau. 
 
 4 Members of the executive staff. 
 
 1 Accountant. 
 
 1 Clerk. 
 
 " Personnel of each of the twelve surveying parties : 
 
 2 Members of the executive staff. 
 1 Surveyor. 
 
 1 Mechanic . 
 
 1 Clerk. 
 
 2 Laborers. 
 
 "Note: — Of the four members of the executive staff of the subbureaus, two will be 
 deputies for purchasing land appointed from the offices of the local officials. The offices 
 of the local official will also appoint a mechanic to assist the surveying parties in matters 
 connected with land measurement.
 
 790 CHINA TREATIES AND AGREEMENTS 
 
 " The first branch bureau will be located at Ch'iao T'ou and will extend from Mukden 
 to Ts'ao Ho K'ou, comprising the first to the sixth surveying parties. 
 
 " The second branch bureau will be located at Chi Kuan Shan and will extend from 
 Ts'ao Ho K'ou to Sha Ho Chen, comprising the seventh to the twelfth surveying parties." 
 
 NUMBER 1909/9. 
 
 JAPAN AND CHINA. 
 Agreement concerning mines and railways in Manchuria* — September 4, 1909. 
 
 The Imperial Government of Japan and the Imperial Government of China, 
 actuated by the desire to consolidate the relations of amity and good neighborhood 
 between the two countries, by settling definitively the matters of common concern 
 in Manchuria, and by removing for the future all cause of misunderstanding, have 
 agreed upon the following stipulations : 
 
 Art. 1. — The Government of China engages that in the event of its under- 
 taking to construct a railway between Hsinmintun and Fakumen, it shall arrange 
 previously with the Government of Japan. 
 
 Art. 2. — The Government of China recognizes that the railway between 
 Tashichao and Yinkow is a branch line of the South Manchuria Railway, and it 
 is agreed that the said branch line shall be delivered up to China simultaneously 
 with the South Manchuria Railway upon the expiration of the term of con- 
 cession for that main line. The Chinese Government further agrees to the 
 extension of the said branch line to the port of Yinkow. 
 
 Art. 3. — In regard to the coal mines at Fushun and Yuentai, the Govern- 
 ments of Japan and China are agreed as follows : 
 
 (a) The Chinese Government recognizes the right of the Japanese Govern- 
 ment to work the said coal mines. 
 
 (&) The Japanese Government, respecting the full sovereignty of China, 
 engages to pay to the Chinese Government tax upon coals produced in those mines. 
 The rate of such tax shall be separately arranged upon the basis of the lowest 
 tariff for coals produced in any other places of China. 
 
 (c) The Chinese Government agrees that in the matter of the exportation 
 of coals produced in the said mines, the lowest tariff of export duty for coals 
 of any other mines shall be applied. 
 
 {d) The extent of the said coal mines, as well as all detailed regulations, 
 shall be separately arranged by commissioners specially appointed for that 
 purpose. t 
 
 * Translation from the Japanese text, as printed in For. Rel., 1909, p. 118. Printed also 
 in Am. Int. Law Journal, Supplement, 1910, p. 130. See Note 1 to this document, post, 
 p. 791. 
 
 t See Note 2 to this document, post, p. 792.
 
 NUMBER 1909/9: SEPTEMBER 4, 1909: NOTES 791 
 
 Art. 4.— All mines along the Antung-Mukden Railway and the main line 
 of the South Manchuria Railway, excepting those at Fushun and Yuentai, shall 
 be exploited as joint enterprises of Japanese and Chinese subjects, upon the 
 general principles which the Viceroy of the Eastern Three Provinces and the 
 Governor of Mukden agreed upon with the Japanese Consul General in the 
 fortieth year of Meiji, corresponding to the thirty-third year of Kuangshu.J 
 Detailed regulations in respect of such mines shall, in due course, be arranged 
 by the Viceroy and the Governor with the Japanese Consul General. § 
 
 Art. 5. — The Government of Japan declares that it has no objection to the 
 extension of the Peking-Mukden Railway to the city wall of Mukden. Practical 
 measures for such extension shall be adjusted and determined by the local 
 Japanese and Chinese authorities and technical experts. || 
 
 In witness whereof, the undersigned, etc., etc. 
 
 Note 1. 
 
 In connection with this agreement see also the Sino-Japanese treaty and exchanges 
 of notes respecting South Manchuria and Eastern Inner I\Iongolia, I^Iay 25, 1915 (No. 
 1915/8, post). 
 
 At p. 117 of For. RcL, 1909, is printed the following translation (from the Chinese 
 text) of a memorandum concerning mines along the line of the Antung-IMukden Railway, 
 signed in 1907 by the Viceroy of Manchuria and the Japanese Consul General at Mukden: 
 
 Memorandum concerning Mines along Antung-Mukden Railway, 1907. 
 
 " 1. — The Japanese Consul General hereby declares that when the present military 
 railway between Antung and Mukden is changed to standard gauge the present route may 
 be slightly changed but will not follow an entirely different route. 
 
 " 2. — The Japanese who are temporarily residing along the line of the railway will be 
 prohibited by the Japanese Consul General from surveying mining properties. Hereafter 
 such work will be carried on under the provisions of Article 3. 
 
 "3. — All coal, iron, tin, and lead mines situated near the railway may be worked con- 
 jointly after officials of both countries have made an inspection. The operators concerned 
 should specify exactly the localities to be worked and petition the Viceroy of Manchuria 
 and the Governor of Fengtien, w^ho, after giving their consent, will ask for an edict per- 
 mitting the work to be carried on. The conditions of working the mines will be similar 
 to those contained in the Agreement of Lin-ch'eng Hsien. [See the agreement of March 
 22, 1905 (No. 1905/1, ante).] 
 
 "4. — If in future operators of other nationalities are permitted to work coal mines 
 and are given better terms than those of the agreement of Lin-ch'eng Hsien in Chihli 
 Province, thereafter the coal mines along the line of this railway which are permitted to 
 be worked jointly shall on petition be granted the same privileges. The iron, tin, and lead 
 
 % Quoted in Note 1 to this document, infra. 
 
 For correspondence between the American and the Chinese and Japanese Governments 
 concerning the effect of this provision, see For. RcL, 1909, pp. 116-124. In the course of 
 that correspondence, the Chinese Foreign Office, under date of November 18. 1909, stated 
 to the American Legation that "the reference in the said agreement to joint Chinese-Japanese 
 exploitation of mines along the two railways mentioned does not involve a monopoly of 
 the rights and privileges of opening mines in the designated territory, nor confer any 
 exclusive rights to mines therein upon Japanese subjects, but that mines in the territory 
 mentioned may with the consent of the Chinese Government be exploited by third parties 
 also." Under date of November 25, 1909, the Japanese Ministry for Foreign Affairs like- 
 wise advised the American Embassy that " the provisions of the agreement of September 4 
 last, in reference to joint exploitation of mines along the said railways do not and were 
 not intended in any way or to any extent to involve a monopoly of the right to discover, 
 open, and operate mines in Manchuria, to the exclusion of American citizens, or any other 
 persons." 
 
 § See Note 3 to this document, post, p. 793. 
 
 II See Note 4 to this document, post, p. 795.
 
 792 CHINA TREATIES AND AGREEMENTS 
 
 mines which are worked jointly shall pay taxes and dues according to such regulations as 
 may hereafter be issued by the Board of Agriculture, Industries, and Commerce. 
 
 "5. — If hereafter operators of other nationalities are permitted to work iron, tin, or 
 lead mines in the province of Fengtien and if after paying the taxes and dues fixed by 
 the board they enjoy any special privileges, thereafter such companies of Chinese and 
 Japanese as may be permitted to work these three sorts of mines along the line of the 
 railway shall on petition be accorded the same privileges." 
 
 Note 2. 
 
 The following is a translation, from the Japanese text printed at p. 44 of Shina 
 Kankei Tokushu Joyaku Isan, of the detailed regulations for the Fushun and Yentai Mines, 
 signed on May 12, 1911 : 
 
 Detailed Regulations for Fushun and Yentai Mines, May 12, 191 1. 
 
 " The delegates of Japan and China, having been duly clothed with authority by their 
 respective Governments, do establish the following detailed regulations in regard to the 
 Fushun and Yentai mines, based on the provisions of Article 3 of the agreement in regard 
 to Manchurian affairs which was concluded by the Governments of Japan and China at 
 Peking on the 4th day of the 9th month of the 42nd year of Meiji (20th day of the 
 7th moon of the first year of Hsiian T'ung: i.e., September 4, 1909). 
 
 " Art. 1. — The South Manchuria Railway Company (hereinafter referred to as the 
 Company) agrees to pay to the Chinese Government a mining tax for the coal of the 
 Fushun and Yentai mines (hereinafter referred to as the two mines), which shall be fixed 
 at five per cent, of its value at the mouth of the mine, provided that as long as the 
 output of coal is less than 3000 tons of coal per day the amount of the tax shall be com- 
 puted by fixing the price at the mouth of the mine at one Kuping tael per ton, and when 
 the output per day exceeds 3000 tons, at one yen (Japanese currency) per ton. 
 
 " Art. 2. — The Company agrees to pay to the Chinese maritime customs for the coal 
 of the two mines exported from a point of maritime navigation an export tax which shall 
 be computed at one-tenth of a Haikwan tael per ton, that is to say, at the rate of one 
 mace silver. 
 
 " The export tax for coal of the two mines exported overland through Chosen or 
 Russia shall be separately decided afterwards. 
 
 " Art. 3. — The tax to be paid mentioned in Article 2 shall apply to coal from the 
 date of the agreement in regard to Manchurian affairs, which was entered into at Peking, 
 that is to say the fourth day of the ninth month of the 42nd year of Meiji (20th day of 
 the 7th moon of the first year of Hsiian T'ung). The Company shall pay to the Chinese 
 Government a mining tax for coal mined subsequent to that date. The export tax which 
 was paid in excess to the Chinese maritime customs from that day shall be refunded by 
 the Chinese Government to the company at the rate of 2 mace per ton. 
 
 " With reference to the mining tax in future, the company shall pay to commissioners 
 designated by the Chinese Government for collecting the taxes the amount for the preced- 
 ing three months four times each year, that is to say in January, April, July and October 
 of the Japanese calendar. The amount of the export tax shall be paid each month for 
 the preceding month as soon as possible to the Chinese maritime customs. 
 
 " Art. 4. — In case coal from the two mines is loaded into a vessel for its own con- 
 sumption, it shall be treated according to the usual rule of the maritime customs. 
 
 " Art. 5. — The Company need not pay a mining tax for coal for its own use, pro- 
 vided however, this amount shall be fixed at 700 tons per day. 
 
 " Art. 6. — In addition to taxes in accordance with Articles 1 and 2, there shall be 
 no other taxes for the coal of the two mines such as the imposition of likin and other 
 fees, but in case the taxes in respect to other coal are fixed at a rate lower than that 
 for the two mines, the Company also shall have the right to have the taxes made equal. 
 
 "In lieu of the likin and other taxes mentioned in the foregoing paragraph, the 
 Company shall pay to the Chinese Government yen 50,000 per annum in four instalments 
 in the same manner as mentioned in paragraph 2 of Article 3. 
 
 " The Chinese authorities shall take steps to make it known generally in the various 
 provinces that the coal has been freed from likin and other charges. 
 
 " Art. 7. — The boundaries of the two mines shall be in accordance with a map which 
 shall be fixed after a conference of the commissioners of the two Governments. 
 
 " Art. 8. — The Chinese Government will agree not to allow anyone outside the com- 
 pany to prospect or mine within the boundaries of the two mines, and speedily to cancel 
 permission which may already have been granted to anybody. 
 
 " Art. 9. — When there is anybody who mines coal or attempts to mine coal within the
 
 NUMBER 1909/9: SEPTEMBER 4, 1909: NOTES 793 
 
 borders of the two mines without the permission or consent of the Company, it shall 
 report it to the Chinese authorities. In such an event the Chinese authorities shall strictly 
 prohibit it. 
 
 " Art. 10. — The Chinese authorities will agree to afford sufficient facilities in mining, 
 transportation of coal and the hiring of laborers. 
 
 "Art. 11.— In case the Company requires private land within the boundaries of the 
 mines, which is necessary for mining purposes, or requires the extension of the railway, 
 it shall be reported to the Chinese authorities, and a decision shall be reached after a 
 mutual consultation. 
 
 " When the Company has finished mining it shall restore to the Chinese Government 
 the land that was used for mining. 
 
 " Art. 12. — When the Company requires the removal of graves or houses within the 
 land that it uses for mining, it shall confer with the owner and shall pay him a suitable 
 fee for removal. In case any damage is done in these matters on account of mining, it 
 shall agree to pay a suitable indemnity. 
 
 " Art. 13. — The Company shall agree to establish appropriate provisions for the con- 
 trol of laborers and for relief. 
 
 " Art. 14. — These detailed regulations shall be effective for sixty years from the date 
 of their enforcement. If when this period is reached the mines are not exhausted, the 
 period shall be extended. 
 
 " These detailed regulations shall be drawn up in Chinese and Japanese, four copies 
 of each. After they have been signed and sealed by the commissioners of each country, 
 the two Governments shall attest them by furnishing one copy in Japanese and one copy 
 in Chinese apiece to the South Manchuria Railway Company and the Governor General 
 of the Three Eastern Provinces. 
 
 " Meiji 44. 5th month, 12th day. 
 
 " Hsiian T'ung 3, 4th month, 14th day. 
 
 " Chozo Koike, 
 Japanese Consul General (Seal) 
 " Shimbo Sakaguchi, 
 Assistant Chief of the Fushun Mine (Seal) 
 " Han Kuo-chun, 
 Chinese Commissioner for Foreign 
 
 Affairs at Mukden (Seal) 
 
 " Hou Kuan Taotai Ch'i Ku-yi is to sign in a few days upon returning to Chir.a." 
 
 Note 3. 
 
 The following Agreement between the Chinese Government and ^Messrs. Okura & 
 Companv, the Japanese holders of the Penhsihu iMine, dated May 22, 1910, is given in 
 Collins, p. 279 : 
 
 Agreement for Penhsihu Coal Mining Company, Ltd., May 22, 1910. 
 
 1. — After this Agreement shall have been sanctioned by the Chinese Government the 
 Penhsihu Coal Mining Enterprise will be registered as a Sino-Japanese Company. The 
 Company will be called the Penhsihu Coal Mining Company, Limited, hereinafter referred 
 to as " the Company." The Japanese firm is hereinafter referred to as " Messrs. Okura 
 & Company." 
 
 2. — The Chinese Government has agreed on a valuation of the properties of the Penhsihu 
 Mine at 350,000 dollars. After the signing of this contract the Company will hand over 
 shares to the value of 350,000 dollars to the Chinese Government. 
 
 3. — The capital of the Company will be 2,000,000 Peiyang dollars. One-half will be 
 subscribed by Chinese merchants, but in view of the fact that the Chinese Government has 
 already 350,000 dollars invested in the mining properties only 650,000 dollars will be sub- 
 scribed to complete the Chinese shares. ^Messrs. Okura & Company will be responsible for 
 the subscription of the remaining 1,000,000 dollars. Interest on mine-shares and the cash- 
 shares will begin to run on the day the Company starts operations in the former case and 
 on the day cash is paid up in the latter case. 
 
 4. — The profits of the Company will be divided as follows : 
 
 (c) Profits up to 8 per cent, will be paid on the 2,000,000 dollars as interest. In case 
 the profit is insufficient for payment of 8 per cent, a lower interest will be paid. 
 (b) After paying the 8 per cent, interest, any profits will be divided into ten equal 
 parts, one of which is to be put aside as a reserve fund, 2^ parts will be paid 
 to the Chinese Government as a contribution, and 6^ parts will be equally 
 divided among the Chinese and Japanese shareholders. When the shareholders 
 consider the reserve fund to be sufficient they may, by mutual agreement, cease
 
 794 CHINA TREATIES AND AGREEMENTS 
 
 putting aside further sums to reserve. No interest is to be paid on the reserve 
 fund. 
 
 5_ There will be two Directors-in-chief, one Chinese and the other Japanese. The 
 
 rest of the posts on the staff will be equally divided amongst Chinese and Japanese by the 
 mutual consent of the two Directors-in-chief. Any enterprise concerning engineering or 
 financial matters must receive the sanction and signatures of the two Directors-in-chief 
 before being put into execution. The Directors-in-chief must make reports to the Director- 
 General on each occasion. All documents and accounts will be managed by qualified officials 
 of the Company in the most up-to-date manner possible and kept in both the Chinese and 
 Japanese languages so that each Director-in-chief may be able to examine the contents. 
 All the Company's aff'airs will be controlled and directed by the two Directors-in-chief or 
 their representatives under the Company's seal, and under the signatures of the two 
 Directors-in-chief. Chinese dates will be used in book-keeping and the paying out of 
 dividends. . 
 
 6.— The Company will be considered formally constituted on the day the Chmese Gov- 
 ernment shall register it. 
 
 7._,After the formation of the Company, when it is considered necessary by the two 
 Directors-in-chief to increase the capital or to contract loans, the shareholders will be con- 
 sulted. Then the shareholders of each nationality will be responsible for half the amount. 
 Loans may not be contracted from persons of any nationality other than Chinese and 
 Japanese. The Company's properties will not be mortgaged unless there be urgent necessity 
 for loans. The shareholders may not sell their shares without the Company's consent. 
 Only Chinese workmen will be employed in the mines. 
 
 8. — The term of this agreement is thirty years, beginning on the day the Company is 
 registered by the Chinese Government. At expiration of this Agreement the Company will 
 enter into voluntary liquidation. The Chinese Government will then return the mine- 
 share certificates to the Company and in return take back the mining area. The Company 
 will as quickly as possible sell off its movable property, rails, mine-timbers and buildings 
 at a fair price. The shareholders of each nationality will take one-half of the proceeds of 
 sale and of the reserve fund. At this time all share certificates will be returned and can- 
 celled unless by mutual consent this agreement is renewed. After expiration of this agree- 
 ment, should the Chinese Government desire to carry on the undertaking by itself it can 
 do so by taking back the mining area and paying adequate compensation for the movable 
 property, rails, mine timbers and buildings. 
 
 9. — For every long ton of coal produced the Company will pay likin of .06 K'u p'ing 
 tael of sycee silver and a tax of .10 K'u p'ing tael of sycee silver. For the mining area 
 the Company will pay .2 K'u p'ing tael of sycee silver for each mow occupied. As export 
 tax the Company shall pay .1 K'u p'ing tael of silver as customs duty. In case, however, 
 the Chinese shall concede any lower rate of taxation to any Sino-Foreign company in the 
 future, this Company may demand the same rate. When the new mining laws are promul- 
 gated by the Board of Agriculture, Industry and Commerce, the Government may, through 
 the Governor of Manchuria, order the Company to alter this Agreement in order to comply 
 with the new laws. 
 
 10.— All the materials needed and purchased by the Company will be exempted from 
 likin. but must pay the usual taxes to the maritime customs. 
 
 11. — In consideration of the capital spent on the mine by Messrs. Okura & Company, 
 in 1905 and 1909, the Company will take over all the property, including engines, buildings, 
 construction and warehouse goods, etc., at a valuation of 1,000,000 dollars, which will be 
 the Japanese capital. Messrs. Okura & Company will make a clear returii of all the pro- 
 ceeds from sale of coal produced within that period. The Company will repay all the 
 money spent by Messrs. Okura & Company, between the third moon and the formation of 
 the Company, on new machinery, etc., and this machinery, etc., will be handed to the Com- 
 pany. Messrs. Okura & Company will hand in all proceeds from the sale of the coal pro- 
 duced within the period, and the coal at surface or in store will be handed to the Company 
 without claim for any payment thereon. 
 
 12. — After the formation of the Company official surveyors will be despatched to make 
 a surface survey of the concession, so as to fix its boundaries. The_ map will be sent to 
 the Company as the official survey. If during the Company's mining operations any 
 ancient objects of art be found these will be handed to the Chinese Government. 
 
 13. — Should the Company be in need of any land a fixed price will be paid as its rent. 
 In case it be found necessary to pull down any buildings, or to remove any tombs, the 
 case will be laid before the local official, who will notify the landowner of the fact, but the 
 Company must pay fair compensation. 
 
 14. — After signing this agreement, the Director-General will, within three months, 
 instruct a representative to draft a set of the Company's Regulations together with Messrs. 
 Okura & Company, preparatory to the operation of the Company. This set of articles will 
 be handed to the Director-General for perusal and for forwarding to the Governor. 
 
 15. — This Agreement will be drawn up in Chinese and Japanese. In case of dispute the 
 Chinese version will be held to rule. There will be five copies of this Agreement : One
 
 NUMBER 1909/9 : SEPTEMBER 4, 1909 : NOTES 795 
 
 copy will be kept at the Governor's Yamen, one at the Bureau of Foreign Affairs, one by 
 Messrs. Okura & Company, one at the Company's Office, and one at the Japanese Consulate. 
 Dated May 22, 1910. 
 
 Signatures: 
 
 Han Kuo Chun, 
 
 Comtnissioner of Foreign Affairs. 
 Hsiao Chih Chang Tsao, 
 
 Japanese Consul. 
 Okura & Company. 
 
 Note 4. 
 
 An agreement for the extension of the Peking-Mukden Line was signed at Mukden, 
 September 2, 1911: the following is a translation from the Chinese text: 
 
 Agreement for Extension of Peking-Mukden Railway into Mukden, September 2, 191 1, 
 
 "In the 5th clause of the agreement concluded in Peking between the Chinese and 
 Japanese Governments on the 20th day of the 7th moon, 1st year of Hsuan T'ung, i.e., the 
 4th day of_ September, 42nd year of Meiji (1909), the Mukden station of the Peking- 
 Fengtien {i.e., ]\Iukden) Railway Administration is to be removed to a location near the 
 city wall. Arrangements have now been made between the representatives of the two 
 Powers as follows : 
 
 " 1. — The Japanese Government agrees to order the South Manchuria Railway Com- 
 pany to raise an embankment and build a bridge over the extension of the Peking-Fengtien 
 Line at the point of intersection of these two lines. 
 
 "The extended line will follow the red dotted lines on plan (No. 1). The proposed 
 station must be built within one mile to the north of the Small West Convenient Gate. 
 
 "2. — The Chinese Government agrees to order the Peking-Fengtien Railway Admin- 
 istration to build a line between their proposed station at Fengtien and the present station 
 of the South INIanchuria Railway Company, in order that the two lines may make good 
 connections and for the convenience of extending traffic. 
 
 " 3. — The extension line and the connecting line are to be built according to the plan 
 specified in the estimate. But the line provided for in Article 2, which is within the South 
 Manchuria Railway Company's area, will be built and supervised by the South Manchuria 
 Railway Company, while outside of the said area the connecting line will be built and 
 supervised by the Peking-Fengtien Railway Administration. 
 
 " 4. — The Japanese Government agrees to order the South Manchuria Railway Com- 
 pany to act in accordance with the plan (No. 2) to raise an embankment and build a bridge. 
 This will necessitate the construction of a temporary track. The expenses thus incurred 
 will amount to yen 24,000 and are to be paid by the Peking-Fengtien Railway Administra- 
 tion to the South Manchuria Railway Company when the construction is completed. 
 
 " 5. — The construction specified in clauses three and four must be completed within 
 three months from the date of the signing of the agreement. 
 
 "6. — Any of the trains of the Peking-Fengtien Railway arriving at Mukden (such as 
 through and express trains), which make connections with the South Manchuria Railway 
 Company's line, must first proceed to the South Manchuria Railway station and then to 
 the City Wall station by the connecting line. Any trains leaving the City Wall station 
 which connect with trains of the South Manchuria Railway Company will proceed to the 
 South ^Manchuria Railway Company's station over the connecting line. This does not 
 apply to special trains and freight trains which do not need to make connections with the 
 trains of the South IManchuria Railway. 
 
 " 7. — With regard to the operation of the connecting trains, together with signals, etc. 
 the former agreement between the South Manchuria Railway Company and the Peking- 
 Fengtien Railway Administration concerning the connecting service is to be adhered to. 
 Any changes made in the future must be made by mutual agreement. 
 
 " 8. — The former agreement concerning the connecting service between the South IMan- 
 churia Railway and the Peking-Fengtien Railway is in no wise affected by the present 
 agreement. This agreement is drawn up in Japanese and Chinese in quadruplicate and 
 held by the Ministry of Posts and Communications, Foreign Office of Mukden, Japanese 
 Consulate General at Mukden, and the South Manchuria Railway Company. 
 
 " Signed on the 2nd day of September of the 44th year of Meiji (1911) by 
 
 " Hsij T'ing Ling, 
 "Commissioner for Foreign Affairs. 
 " Hsuan To Yu, 
 "Engineer of the Ministry of Posts and Communications. 
 
 " C. Koike, 
 "Japanese Consul General. 
 " Horizo Korinoske."
 
 796 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1909/10. 
 
 JAPAN AND CHINA. 
 Agreement relating to the Chientao region."^ — September 4, 1909. 
 
 The Imperial Government of Japan and the Imperial Government of China, 
 desiring to secure for Chinese and Korean inhabitants in the frontier regions the 
 blessings of permanent peace and tranquility, and considering it essential in 
 the attainment of such desire that the two Governments should, in view of their 
 relations of cordial friendship and good neighborhood, recognize the River 
 Tumen as forming the boundary between China and Korea, and should adjust 
 all matters relating thereto in a spirit of mutual accommodation, have agreed 
 upon the following stipulations: 
 
 Art. 1. — The Governments of Japan and China declare that the River 
 Tumen is recognized as forming the boundary between China and Korea and 
 that in the region of the source of that river the boundary line shall start from 
 the boundary monument and thence follow the course of the stream Shih- 
 yishwei. 
 
 Art. 2. — The Government of China shall, as soon as possible after the 
 signing of the present agreement, open the following places to the residence 
 and trade of foreigners, and the Government of Japan may there establish 
 consulates or branch offices of consulates. The date of the opening of such 
 places shall be separately determined: Lungchingtsun ; Chutszchie; Toutaokou; 
 Paitsaokou.f 
 
 Art. 3.— The Government of China recognizes the residence of Korean 
 subjects, as heretofore, on agricultural lands lying north of the River Tumen. 
 The limits of the district for such residence are shown in the annexed map. 
 
 Art. 4. — The Korean subjects residing on agricultural lands within the 
 mixed residence district to the north of the River Tumen shall submit to the 
 laws of China, and shall be amenable to the jurisdiction of the Chinese local 
 officials. Such Korean subjects shall be accorded by the Chinese authorities 
 equal treatment with Chinese subjects, and similarly, in the matter of taxation 
 and all other administrative measures, they shall be placed on equal footing 
 with Chinese subjects. All cases, whether civil or criminal, relating to such 
 Korean subjects shall be heard and decided by the Chinese authorities in accord- 
 ance with the laws of China, and in a just and equitable manner. A Japanese 
 consular officer or an official duly authorized by him shall be allowed freely to 
 attend the court, and in the hearing of important cases concerning the lives of 
 persons, previous notice is to be given to the Japanese consular officers. When- 
 
 * Translation from the Japanese text, as printed in For. Rel, 1909, p. 119. Printed 
 also in Am. Int. Laxv Journal, Supplement, 1910, p. 132. Translation from Chinese text 
 printed in Customs, vol. IT, p. 768. 
 
 See Note to this document, post, p. 797. 
 
 t The Chinese Government later fixed on November 2, 1909, as the date for the open- 
 ing of all these ports.
 
 NUMBER 1909/10: SEPTEMBER 4, 1909: NOTE 797 
 
 ever the Japanese consular officers find that a decision has been given in disregard 
 of law, they shall have right to apply to the Chinese authorities for a new trial 
 to be conducted by officials specially selected in order to assure justice of the 
 decision. 
 
 Art 5. — The Government of China engages that land and buildings owned 
 by Korean subjects in the mixed residence district to the north of the River 
 Tumen shall be fully protected equally with the properties of Chinese subjects. 
 Ferries shall be established on the River Tumen at places properly chosen, and 
 people on either side of the river shall be entirely at liberty to cross to the other 
 side, it being, however, understood that persons carrying arms shall not be 
 permitted to cross the frontier without previous official notice or passports. 
 In respect to cereals produced in the mixed residence district, Korean subjects 
 shall be permitted to export them out of the said district, except in time of 
 scarcity, in which case such exportation may be prohibited. Collection of fire- 
 wood and grass shall be dealt with in accordance with the practice hitherto 
 followed. 
 
 Art. 6. — The Government of China shall undertake to extend the Kirin- 
 Changchun Railway to the southern boundary of Yenchi, and to connect it at 
 Hoiryong (Hueining) with a Korean railway, and such extension shall be effected 
 upon the same terms as the Kirin-Changchun Railway. The date of commencing 
 the work of the proposed extension shall be determined by the Government of 
 China, considering the actual requirements of the situation, and upon consultation 
 with the Government of Japan. 
 
 Art. 7. — The present agreement shall come into operation immediately upon 
 its signature, and thereafter the Chientao branch office of the Residency General, 
 as well as all civil and military officers attached thereto shall be withdrawn, as 
 soon as possible, and within two months. The Government of Japan shall within 
 two months hereafter establish its consulates at the places mentioned in Article 2. 
 
 In witness whereof, the undersigned, duly authorized by their respective 
 Governments, have signed and sealed the present agreement in duplicate, in the 
 Japanese and Chinese languages. 
 
 Note. 
 
 In connection with this agreement see also the detailed agreement for the Kirin- 
 Ch'angch'un Railway Loan, August 18, 1909 (No. 1909/7 ante) : Sino-Japanese treaty and 
 Exchanges of notes respecting South Manchuria and Eastern Inner Mongolia, May 25, 
 1915 (No. 1915/8, post) ; and Kirin-Hueining Railway Loan Agreement of June 18, 1918 
 (No. 1918/9, post). 
 
 As an annex to this agreement, see the following Japanese law (No. 40) relating to 
 adjudication by consular officers in Kanto (Chientao), dated April 5, 1910, as translated 
 from the Japanese Official Gazette of April 6, 1910: 
 
 Japanese Law relating to Adjudication by Consular Officers in Chientao, April 5, 1910. 
 
 " Article 1. — The public trial of offences liable to capital punishment, or penal servi- 
 tude for life or for a limited period of at least one year, or imprisonment, the preliminary 
 examination of which has been conducted by consular offi,cers stationed in Kanto, shall 
 belong to the jurisdiction of the District Courts of the Residency General [i.e., of Korea]. 
 
 " Article 2. — The Minister for Foreign Affairs may, if he deems it necessary in con- 
 nection with a criminal case belonging to the jurisdiction of consular officers stationed in 
 Kanto, order the consular officer concerned to deliver the accused to a prison in Korea.
 
 798 CHINA TREATIES AND AGREEMENTS 
 
 ■■ Article 3. — In cases where, in accordance with the provisions of the preceding 
 article, the accused is delivered to a prison in Korea, the Resident General shall, if the 
 case belongs to the jurisdiction of the district courts, cause a public procurator of the Resi- 
 dency General Court of Appeal having jurisdiction over the locality where the prison to 
 which the accused is delivered is located to apply to such court of appeal for the designa- 
 tion of jurisdiction; and, if the case belongs to the jurisdiction of the local courts, he 
 shall cause a public procurator of the Residency General District Court having jurisdiction 
 over the locality where the prison to which the accused is delivered is located, to apply 
 to such district court for the designation of jurisdiction. 
 
 " In connection with the application and adjudication mentioned in the preceding para- 
 graph, the provisions of Article 33 of the Code of criminal procedure shall be appHed 
 mutatis mutandis. 
 
 [Article 33 of Japanese Code of criminal procedure: "A person desirous of making 
 a motion relative to the designation of the competent Court must declare his intention in 
 writing to the Court competent to rule. 
 
 '■ The Court must decide the motion according to the documents."] 
 
 " Article 4. — Appeals from or protests against decisions rendered by consular officers 
 stationed in Kanto in cases subject to the jurisdiction of a district court shall belong to the 
 jurisdiction of a Court of Appeal of the Residency General. 
 
 " Article 5. — In the cases mentioned in Articles 1 and 4, the Residency General Courts 
 to have jurisdiction shall be determined by the Resident General. 
 
 "Supplementary Clause. 
 
 " Lawsuits and non-contentious matters accepted prior to the enforcement of this law 
 shall be dealt with according to previous practice." 
 
 NUMBER 1909/11. 
 
 FRANCE AND JAPAN. 
 
 Convention for the reciprocal protection of trademarks, patents, designs and 
 copyrights in China.* — September 14, 1909. 
 
 The President of the French Republic and H. M. the Emperor of Japan, 
 desirous to secure in China the mutual protection of inventions, designs, trade- 
 marks and copyrights of their respective citizens or subjects, have resolved to 
 conclude a convention for that purpose and have named as their plenipotentiaries, 
 that is to say: 
 
 The President of the French Republic : 
 
 M. Auguste Gerard, Ambassador of the French Republic to His Majesty the 
 Emperor of Japan, and 
 
 His Majesty the Emperor of Japan: 
 
 M. le Comte Komura Jutaro, Minister of Foreign Affairs. 
 
 Who, after having communicated to each other their full powers, found to 
 be in good and due form, have agreed upon the following articles : 
 
 Article I. — The inventions, designs and trademarks, duly patented or 
 registered by the citizens or subjects of one High Contracting Party in the 
 appropriate office of the other Contracting Party, shall have, in all parts of China, 
 the same protection against every infringement by the citizens or subjects of 
 
 * Translation from the French text.
 
 NUMBER 1909/11: SEPTEMBER 14, 1909 799 
 
 such other Contracting Party as in the dominions and possessions of such other 
 Contracting Party. 
 
 Article II. — The citizens or subjects of each of the two High Contracting 
 Parties shall enjoy in China the protection of copyright for their works of liter- 
 ature and art, as well as photographs, to the same extent as they are protected 
 in the dominions and possessions of the other party. 
 
 Article III. — In case of infringement in China, by a citizen or subject of 
 one of the two High Contracting Parties of any invention, design, or trademark 
 whatsoever, or of the violation of copyright, entitled to protection in virtue 
 of this convention, the aggrieved party shall have in the competent territorial or 
 consular courts of such Contracting Party the same rights and remedies as citizens 
 or subjects of such Contracting Party. 
 
 Article IV. — Each of the High Contracting Parties engages to extend to 
 China the treatment which the citizens or subjects of the other Contracting 
 Party enjoy, in the matter of protection of their commercial names, in the 
 dominions and possessions of such Contracting Party under the Convention for 
 the Protection of Industrial Property, signed at Paris, March 20, 1883. " Hong " 
 marks shall be considered to be commercial names, as regards the effect of the 
 present convention. 
 
 Article V. — Citizens of possessions belonging to the French Republic and 
 subjects of Korea shall have, in China, the same treatment, under the present 
 convention, as citizens of the French Republic and subjects of Japan respectively. 
 
 Article VI. — It is mutually agreed between the High Contracting Parties 
 that the effect of the present convention shall be extended, in the measure in 
 which it is applicable, to every other country where each of them shall have 
 rights of extraterritorial jurisdiction. All the rights resulting from the present 
 convention shall be recognized in the insular and other possessions and in the 
 leased territories of the High Contracting Parties, and all the legal means provided 
 for the protection of the said rights shall be duly applied by the competent 
 tribunals. 
 
 Article VII. — Every person to whom the provisions of this convention are 
 applicable, who, at the moment in which the present convention shall take effect, 
 possesses merchandise bearing the imitation of a trademark owned by another 
 person and entitled to protection by virtue of said convention, shall remove or 
 cancel such false trademark or withdraw such merchandise from the Chinese 
 market within a period of six months from the date of the enforcement of this 
 convention. 
 
 Article VIII. — The unauthorized reproductions, made by the citizens or 
 subjects of one of the High Contracting Parties, prior to the operation of this 
 convention, of works of literature and art, as well as photographs, of the citizens 
 or subjects of the other Contracting Party entitled to protection in virtue of 
 this convention, shall be withdrawn from sale or circulation in China within one 
 year from the date of the enforcement of this convention. 
 
 Article IX. — The present convention shall be ratified, and the ratifications 
 thereof shall be exchanged at Tokio as soon as possible. It shall come into force 
 ten days after the exchange of ratifications.
 
 800 CHINA TREATIES AND AGREEMENTS 
 
 In witness whereof, the respective plenipotentiaries have signed the present 
 convention in dupHcate, in the French and Japanese languages, and have thereunto 
 affixed their seals. 
 
 Done at Tokio, the 14th day of September in the nineteen hundred and ninth 
 year of the Christian era, corresponding to the 14th day of the ninth month of the 
 forty-second year of Meiji. 
 
 (l. s.) (Signed) A. Gerard. 
 
 (l. s.) (Signed) Jutaro Komura, 
 
 In proceeding to the signature of the convention of to-day's date relative to 
 the reciprocal protection in China of inventions, designs, trademarks and copy- 
 rights the undersigned plenipotentiaries, duly authorized by their respective 
 Governments, declare that it is understood that the first paragraph of Article VI 
 of the said convention is not applicable to Korea. 
 Done at Tokio, the 14th September, 1909. 
 
 (Signed) A. Gerard. 
 (Signed) Jutaro Komura 
 
 NUMBER 1909/12. 
 
 GREAT BRITAIN (Pauling & Company), UNITED STATES (American 
 
 Group) AND CHINA. 
 
 Preliminary agreement providing for the financing, construction and operation 
 of the railway from ChincJiou to Aigiin* — October 2, 1909. 
 
 This Preliminary Agreement to provide for the financing, construction and 
 operation of the Railway from Chinchou to Aigun is made between their ex- 
 cellencies the viceroy of Manchuria and the governor of Fengtien, hereinafter 
 called the administration, of the one part, and the American group and its asso- 
 ciates (such associates to be admitted to participation with the full consent of, and 
 to the extent, — not more than forty per cent of the whole, — to be determined 
 by the Chinese Government), hereinafter called the banks, and Pauling & Co., 
 hereinafter called the Contractors, of the other part: 
 
 Now it is hereby mutually agreed by and between the parties hereto as 
 follows : 
 
 I. — The administration engages to borrow from the bank the sum necessary 
 to construct the railway from Chinchou to Aigun. The rate of interest for this 
 loan shall not exceed 5 per cent per annum, and the terms of issue, which shall be 
 the most favorable obtainable, and the other details of procedure shall be arranged 
 in a mutually satisfactory manner. 
 
 * Text as printed in For. Rcl., 1910, p. 232. See Note to this document, post, p. 
 
 802.
 
 NUMBER 1909/12 : OCTOBER 2, 1909 801 
 
 The payment of interest and amortization of this loan shall be guaranteed 
 by the Imperial Chinese Government and the security therefor shall be the railway 
 line. 
 
 Interest payments and amortization shall be met by the receipts of the rail- 
 way or the proceeds of the loan, and if these be insufficient, by Manchurian 
 revenues as may hereafter be selected by the administration and the bank in a 
 manner to be mutually satisfactory. 
 
 The first bond issue shall be for the amount necessary for the construction 
 and equipment of the railway between Chinchou and Tsitsihar. The second shall 
 be for the construction and equipment of the railway between Tsitsihar and 
 Aigun. 
 
 An equitable arrangement shall be made for the redemption of the bond 
 issue by the board of communications prior to the expiration of their term. 
 
 II. — The administration agrees to contract with the contractors for the con- 
 struction and equipment of this road. The contractors engage to build and 
 equip the line using the best possible materials on the cheapest possible terms. 
 
 The detailed terms and conditions, etc., shall be arranged hereafter iri a 
 manner that shall be mutually satisfactory. 
 
 III. — On equal terms Chinese materials shall be given the preference. If 
 however Chinese materials are not available recourse shall be had to other markets. 
 
 The administration shall be liable to the contractors only for the contract 
 price of the railway and it is clearly understood that no commission shall be 
 paid on the purchase of materials. 
 
 IV. — During the construction of this railway the appointment of the chief 
 engineer shall be vested in Pauling & Co. but this appointment must be approved 
 by the president of the railway company to be designated by the Imperial Chinese 
 Government. The chief engineer shall be under the control of the Board of 
 Communications and the Railway Company. 
 
 V. — As the work of construction is completed section by section the railway 
 shall be operated, during the currency of the loan, by a company which shall be 
 under the control of the board of communications. If after the payment of 
 interest and amortization charges, and operating expenses, there be a surplus 
 the railway company shall receive 10 per cent thereof. 
 
 VI. — The company shall be composed of Chinese, Americans and British 
 as may be hereafter arranged, the Chinese to have a majority interest in the 
 control, but under no circumstances shall persons of any other nationality than 
 those herein mentioned have any voice in the management or control of the 
 company without the full permission of the Imperial Chinese Government. 
 
 The company shall have as its president a high official appointed by the 
 Imperial Chinese Government. The other details of organization shall be 
 subsequently arranged in a mutually satisfactory manner. 
 
 VII. — This railway company is to be organized by Chinese, American and 
 British interests. It is recognized however that this line is constructed in Chinese 
 territory for commercial purposes and in case of war may be used only for the 
 transportation of Chinese troops and munitions of war. 
 
 VIII. — This preliminary agreement is signed by their excellencies the viceroy
 
 802 CHINA TREATIES AND AGREEMENTS 
 
 of Manchuria and the governor of Fengtien with the bank and the contractors 
 subject to approval by imperial edict, without which it shall be null and void. 
 
 IX. — In case certain portions of this agreement are characterized as unaccept- 
 able by the imperial edict or in case the administration finds on further considera- 
 tion that there are certain unsatisfactory provisions therein, these clauses, to 
 which exception has been taken, shall be revised in the detailed agreements in a 
 manner which shall be satisfactory to all parties. 
 
 X. — This agreement is executed in triplicate in English and Chinese, one 
 set to be retained by their excellencies the viceroy of Manchuria and the governor 
 of Fengtien, one set by the American group, and one set by Pauling & Co. In 
 case there be any misunderstanding arising from a difference between the English 
 and Chinese texts the matter shall be settled by a mutually satisfactory arrange- 
 ment. 
 
 Signed at Mukden by the contracting parties this nineteenth day of the 
 eighth moon of the first year of the Emperor Hsuan Tung, being the 2d day of 
 October of the Year 1909 of the western calendar. 
 (Signed) 
 
 The Viceroy of Manchuria and the 
 Governor of Fengtien. 
 (Signed) For J. P. Morgan and Company, 
 kuhn, loeb and company, 
 The First National Bank, 
 The National City Bank of New York, 
 Constituting the American Group, 
 WiLLARD D. Straight, 
 
 Agent. 
 (Signed) For Pauling and Company, 
 
 FRENCH, per W. D. S. 
 
 Agent. 
 
 Note. 
 
 The imperial edict of approval, contemplated by Article VIII of the agreement, was 
 issued on January 21, 1910, but no detailed agreement in pursuance of this preliminary 
 agreement has yet been concluded. 
 
 For the protests made in behalf of other nationalities against this agreement, see 
 The Forum, July, 1910, pp. 74-83. 
 
 In connection with this agreement, see the memorandum of agreement between the 
 American group and Pauling & Co., as follows : 
 
 Memorandum of Agreement between the American Group and Pauling & Company, 
 
 October 6, 1909. 
 
 In addition to the provisions of the Preliminary Agreement with Their Excellencies, 
 the Viceroy of Manchuria and the Governor of Fengtien for the financing, construction, 
 and subsequent operation of the Railway from Chinchou to Aigun to which the American 
 Group as well as Pauling and Company are parties. 
 
 It is agreed as between the American Group and Pauling and Company that : 
 I. — Since it may be necessary for the American Group in making its financial arrange- 
 ments with the Chinese Government to furnish funds on terms ensuring a margin of 
 profit _ not commensurate with the risks involved, Pauling and Company will give the 
 American Group not less than 2^/4 per cent, of the contract price for both sections of the 
 railway referred to, such percentage to be paid on the completion of the entire road.
 
 NUMBER 1910/1 : JULY 4, 1910 803 
 
 II. — At least one-half of the materials and equipment purchased in Europe and America 
 shall be American. 
 
 III. — In view of the fact that upon completion the railway will be operated by a Com- 
 pany in which the American Group as well as Pauling and Company will be equally inter- 
 ested (unless otherwise arranged to the satisfaction of both parties), certain American 
 engineers to be recommended by the American Group shall be employed by Pauling and 
 Company during the period of construction. 
 
 IV. — All other details necessary to secure proper cooperation between the parties to 
 this Agreement shall be arranged upon a mutually satisfactory basis. 
 
 V. — Any revision of the above stipulations, if such be found necessary, shall be made 
 by mutual agreement. 
 
 Signed in duplicate at Peking this sixth day of October One Thousand Nine Hun- 
 dred and Nine. 
 
 For J. P. -Morgan and Company, . 
 Kuhn, Loeb and Company, 
 The First X'ational Bank, 
 The National City Bank of New York, 
 constituting the American Group, 
 
 (Signed) W. Str.'^ight. 
 
 Agent. 
 Subject to ratification by my principals. 
 
 For Pauling and Company, 
 
 (Signed) ffrench. 
 
 Agent. 
 Subject to ratification by my principals. 
 
 NUMBER 1910/1. 
 
 JAPAN AND RUSSIA. 
 Convention in regard to Manchuria.* — July 4, 1910. 
 
 The Imperial Government of Russia and the Imperial Government of Japan, 
 sincerely attached to the principles established by the convention concluded be- 
 tween them July 17/30, 1907, and desiring to develop the results of that con- 
 vention w^ith a view to the consolidation of peace in the Far East, have agreed to 
 complete the said arrangement by the following agreements : 
 
 Art. I. — For the purpose of facilitating the communications and developing 
 the commerce of the nations, the two High Contracting Parties engage mutually 
 to lend each other their friendly cooperation with a view to the improvement of 
 their respective lines of railroad in Manchuria, and to the perfecting of the 
 connecting service of the said railways, and to refrain from all competition 
 unfavorable to the attainment of this result. 
 
 Art. II. — Each of the High Contracting Parties engages to maintain and to 
 respect the status quo in Manchuria as it results from all the treaties, conven- 
 tions or other arrangements hitherto concluded, either between Russia and Japan 
 
 * Translation from the official French text as printed in the Russian Government Mes- 
 senger of July 1/14, 1910. 
 
 Other translations printed in F. E. Review, vol. VII, p. 89, and Am. Int. Law Journal, 
 Supplement, 1910, p. 279. 
 
 See Note to this document, post, p. 804.
 
 804 CHINA TREATIES AND AGREEMENTS 
 
 or between these two Powers and China. Copies of the aforesaid arrangements 
 have been exchanged between Russia and Japan. 
 
 Art. III. — In case any event of such a nature as to menace the above- 
 mentioned status quo should be brought about, the two High Contracting Parties 
 will in each instance enter into communication with each other, for the purpose 
 of agreeing upon the measures that they may judge it necessary to take for the 
 maintenance of the said status quo. 
 
 In faith of which the undersigned, duly authorized by their respective 
 Governments, have signed this convention and set their seals thereto. 
 
 Done at St. Petersburg, June 21 (July 4), 1910, corresponding to the 4th 
 day of the 7th month of the forty-third year of Meiji. 
 
 (Signed) Iswolsky (Signed) Motong 
 
 (l.s.) (l.s.) 
 
 Note. 
 
 In connection with this convention, see the Treaty of peace between Japan and Russia, 
 September 5, 1905 (No. 1905/8, ante), and the treaty between Japan and China, Decem- 
 ber 22 1905 (No. 1905/18, ante) : see also the Russo-Japanese political conventions of 
 July 30, 1907 (No. 1907/11, ante), and July 3, 1916 (No. 1916/9, post). 
 
 The following is the translation (as printed in Am. Int. Law Journal, Supplement, 
 1910, p. 279) of the note addressed by the Chinese Government to the several Powers in 
 reference to this convention, under date of July 21, 1910: 
 
 " The Imperial Government having carefully perused the new Russo-Japanese Conven- 
 tion, concluded on July 4, 1910, copies of which were handed to the Wai-wu-pu by the 
 Russian and Japanese Ministers, the following acknowledgment, dated July 21, has been 
 sent to them : 
 
 " ' Since the convention expressly states that each of the high contracting parties engage 
 to respect and maintain the treaties, conventions, and other arrangements concluded between 
 China and Japan, between China and Russia, and between Japan and Russia, it therefore 
 accords with and confirms the principles of the engagements made between Japan and 
 Russia by the Treaty of Peace in 1905, and those of the Treaty and Agreement made 
 between China and Japan relating to matters m the three eastern provinces. For by Article 3 
 of the Russo-Japanese Treaty of Peace, Russia and Japan mutually engage to restore entirely 
 and completely to the exclusive administration of China all portions of Manchuria, and 
 declare that the Imperial Governments have not in Manchuria any territorial advantages 
 or preferential or exclusive concessions in impairment of Chinese sovereignty, or incon- 
 sistent with the principle of equal opportunity ; and by Article 4 Japan and Russia recip- 
 rocally engage not to obstruct any general measures common to all countries which China 
 may take for the development of the commerce and industry of Manchuria. In the same 
 year Japan and China named their plenipotentiaries, and agreed upon and concluded Articles 
 at Peking, based upon the Treaty of Peace concluded at Portsmouth, and relating to mat- 
 ters in the three Manchurian provinces, whereby the opening of Manchuria becomes an 
 accomplished fact. 
 
 " ' The Imperial Government will therefore in the future act in accordance with the prin- 
 ciples declared in the Russo-Japanese Treaty of Peace, and execute the provisions of the 
 Treaty and Agreement with Japan, maintaining with increased efforts such matters as 
 measures arising from the exercise of China's rights of sovereignty, the principle of equal 
 opportunity, and the development of the commercial and industrial prosperity of the three 
 Manchurian provinces, with a view to the promotion of the best interests of all parties.' 
 
 " A copy of the above acknowledgment has been presented to the governments of all the 
 countries with which China enjoys treaty and diplomatic relations."
 
 NUMBER 1910/2: AUGUST 4, 1910 805 
 
 NUMBER 1910/2. 
 
 BELGIUM (Banque Sino-Belge), FRANCE (Banque de I'lndo-Chine), 
 GERMANY (Deutsch-Asiatische Bank), GREAT BRITAIN (Chartered 
 Bank of India, Australia and China, and Hongkong and Shanghai Banking 
 Corporation), JAPAN (Yokohama Specie Bank), RUSSIA (Russo-Chinese 
 Bank), THE NETHERLANDS (Netherlands Trading Society), THE 
 UNITED STATES (International Banking Corporation) ANd' CHINA. 
 
 Agreement for a loan of tads 3,500,000 to the Shanghai Taofai. — August 4, 1910. 
 
 This agreement made between His Honour Tsai Nai-Hwang Taotai of 
 Shanghai for himself and his successors hereinafter called the Taotai of the one 
 part and the 
 
 Hongkong & Shanghai Banking Corporation, 
 
 Chartered Bank of India, Australia & China, 
 
 Deutsch-Asiatische Bank, 
 
 Russo-Chinese Bank, 
 
 Yokohama Specie Bank, 
 
 Banque de ITndo-Chine, 
 
 International Banking Corporation, 
 
 Netherlands Trading Society, 
 
 Banque Sino-Belge, 
 hereinafter called the Banks of the other part, 
 WITNESSETH AS FOLLOWS : 
 
 1. — The Banks agree to lend to the Taotai and the Taotai contracts to borrow 
 from the Banks the sum of Tls. 3,500,000 Shanghai Sycee (Taels Three million 
 Five Hundred Thousand Shanghai Sycee) payment and repayment of the same 
 to be made in Shanghai in Taels of Shanghai Sycee. The proceeds of the Loan 
 will be applied in the first place to the payment of Native Bank Orders in the 
 hands of the Banks issued by the Cheng Yuan, Chien Yii and Chao Kang Banks 
 totalling Tls. 1,399,529.41 as per list handed to the Chinese Chamber of Commerce 
 and later checked and adjusted by Messrs. Shao Gin Tow and J. C. Ferguson on 
 behalf of the Taotai, and in the second place to ensure the prompt payment by 
 the above named Native Banks and other Native Banks of dishonoured Native 
 Orders still in the hands of the Banks or foreign firms, and further, to render 
 assistance to the Native money market in order to restore confidence generally. 
 
 2. — His Excellency Chang Ren-tsing, Viceroy of the Liang Kiang at Nan- 
 king, has reported in a Memorial to the Throne the Taotai's proposals to borrow 
 the above sum of Tls. 3,500,000 from the Banks and the purpose for which the 
 money is to be used. An Imperial Edict sanctioning His Honour the Taotai's 
 proposals has been communicated by the Wai Wu Pu to the Legations concerned. 
 
 3. — The above sum of Tls. 3,500,000 is lent by the Banks in the following 
 proportions :—
 
 806 CHINA TREATIES AND AGREEMENTS 
 
 Hongkong & Shanghai Banking Corporation Tls. 8 lacs, 
 
 Chartered Bank of India, AustraHa & China Tls. 5 lacs, 
 
 Deutsch-Asiatische Bank Tls. 5 lacs, 
 
 Russo-Chinese Bank Tls. 4 lacs, 
 
 Yokohama Specie Bank Tls. 3 lacs, 
 
 Banque de ITndo-Chine Tls. 3 lacs, 
 
 International Banking Corporation Tls. 3 lacs, 
 
 Netherlands Trading Society Tls. 2^ lacs, 
 
 Banque Sino-Belge Tls. 1 >4 lacs. 
 
 4. — The Taotai shall hand to the Banks not later than ten days after date of 
 this Agreement, Bonds in Shanghai Taels of the total amount of the Loan, viz : — 
 Shanghai Tls. 3,500,000. — sealed with the Official Seal of the Taotai, as evidence 
 that he and his successors are bound thereby. The form and amount of the 
 Bonds shall be settled by the Banks in consultation with the Taotai. 
 
 5. — In view of this money being lent by the Banks in the interests of the 
 trade of Shanghai the Banks have fixed the rate of interest at 4% per annum 
 to be payable half yearly from the date of this agreement. The principal shall 
 be repaid in four weekly instalments in 1915 as follows : — 
 
 Tls. 875,000 on or before the 14th July, 1915 
 
 Tls. 875,000 on or before the 21st July, 1915 
 
 Tls. 875,000 on or before the 28th July, 1915 
 
 Tls. 875,000 on or before the 4th August, 1915 
 completing full repayment on the 4th August, 1915. 
 
 Bonds for the amount repaid shall be returned to the Taotai for cancellation. 
 
 Interest on above instalments will be allowed for at the rate of 4% per 
 annum. 
 
 6. — The Taotai of Shanghai for himself and his successors hereby uncon- 
 ditionally guarantees and declares himself responsible for the due repayment 
 of the principal and payment of interest on this Loan. 
 
 7. — Twenty-one copies of this Agreement are executed in English and 
 Chinese, one copy to be retained by the Viceroy, one by the Governor at Soochow, 
 one by the Wai Wu Pu, one by the Taotai, nine by the Banks, and eight by the 
 Legations concerned. 
 
 In the event of any question arising as to the meaning of this contract the 
 English text shall rule. 
 
 Signed at Shanghai by the contracting parties this Twenty-ninth Day of 
 the Sixth Month of the Second Year of the Emperor Hsuan Tung being the 
 Fourth Day of August Nineteen Hundred and Ten Western Calendar. 
 
 [Here follow signatures in behalf of 
 the Banks] 
 
 [Chinese Seal]
 
 NUMBER 1910/3 : AUGUST 8, 1910 807 
 
 NUMBER 1910/3. 
 
 RUSSIA AND CHINA. 
 
 Memorandum of agreement concerning the provisional Siingari River trade 
 Regulations, the provisional regulations of the Harbin River customs, the 
 Sansing customs, and the Lahasusu customs barrier* — August 8, 1910. 
 
 According to the terms of the 18th Article of the Russo-Chinese treaty of 
 the 7th year of Kuang Hsii (1881)t the Chinese Board of Foreign Affairs and 
 the Russian Legation at Peking have mutually agreed upon the following 
 memorandum : 
 
 Article I. — The provisional regulations % relating to the inspection of vessels 
 navigating the Sungari River and of goods imported and exported, which are 
 attached to this memorandum, are hereby approved and copies of the same have 
 been drawn up in Chinese, Russian, and English, and signed by duly authorized 
 Chinese and Russian officials who attest their accuracy. If any doubt should 
 in future arise as to their accuracy the English text will be taken as authoritative. 
 (Note: Whenever allusion is made in the regulations to the Chinese boundary 
 or to the Russian boundary (zone of) one hundred li or fifty versts, this shall be 
 understood to refer to the boundary between the Chinese and Russian Empires.) 
 
 Article II. — Within three weeks after the signing of this memorandum 
 the regulations referred to in Article I shall be published and put into operation 
 by the Harbin commissioner of customs. 
 
 Article III. — During the time when the said regulations are in force if any 
 additions or alterations are to be made, and if special rules have to be published 
 
 * Translation from the Chinese text. Another translation is printed in Customs, vol. I, 
 p. 280. The English text of the provisional regulations, annexed to the agreement, is 
 that of the Harbin customs notification of August 23, 1910 (reprinted in Customs, vol. I, 
 p. 282), which also gives the Chinese and Russian texts. A Russian text is also printed in 
 Soglashenia, p. 102. 
 
 In connection with this agreement, see also the experimental regulations for the estab- 
 lishment of customs houses in Manchuria, July 8, 1907 (No. 1907/10, ante). 
 
 fFor the text of the St. Petersburg treaty of 1881, see Customs, vol. I, p. 168, or 
 Hertslct, p. 483. 
 
 $The regulations thus agreed upon were published in a Customs notification (No. 18) 
 issued by the commissioner of customs at Harbin on August 23, 1910, and became effective 
 August 29, 1910, in substitution for those which had been in force since July 1, 1909, in 
 accordance with the Customs notification (No. 5) issued on June 26, 1909. 
 
 By a notification (No. li) of May 19, 1914, the commissioner at Harbin gave notice, 
 " in accordance with instructions received from the Inspector General of customs, that the 
 said Provisional Regulations will continue in force until the question of their revision shall 
 have been settled by the Governments of China and Russia. From the 7th August next, 
 however, they will be modified to the extent required by the abolition of the Russo-Chinese 
 frontier Free Zone." The commissioner had under date of May 6, 1914 (No. 72), given 
 notice that " the Chinese Government also has now decided on the abolition of the Free 
 
 Zone Accordingly, all goods sent from China to places in the former Russian 
 
 Free Zone, as well as all goods imported from Russia to places in the former Chinese Free 
 Zone, will be liable to Customs Duty and treated in the same way as ordinary Exports and 
 Imports. ..." 
 
 In further reference to the abolition of the free zone, see Note 2 (on page 650) to 
 the Experimental Regulations for the establishment of customs houses in Northern Man- 
 churia, July 8, 1907 (No. 1907/10, ante).
 
 808 CHINA TREATIES AND AGREEMENTS 
 
 whether new or extended to apply to the Sungari River, China and Russia will 
 take action after mutual consultation. 
 
 Article IV. — As the Chinese customs station will be established at the 
 port of Harbin within the territory of the Chinese Eastern Railway it is mutually 
 agreed that if in future there shall be important matters requiring mutual con- 
 sultation no precedent shall be established (for other localities). 
 
 Article V. — All materials required for construction and maintenance by the 
 Chinese Eastern Railway shall be passed free of duty by all customs offices on 
 the Sungari River. The articles required for the railway guards shall be 
 included in the above. 
 
 Article VI. — If foodstuffs are shipped in boats by the Sungari River to 
 Harbin for direct export to foreign countries whether in bags or loose, whether 
 transferred directly from the boats to the railway cars or temporarily stored 
 at the Chinese customs house, or in the warehouses under the control of the 
 Chinese Eastern Railway, or in warehouses under the control of the Chinese 
 customs, when these goods pass the branch customs stations of ]\Ian-chou-li or 
 Sui-fen-ho, they shall be exempt from a second payment of export duty. The exact 
 method of procedure shall be agreed upon between the commissioner of customs at 
 Harbin and the Chinese Eastern Railway Administration within the present year. 
 All foodstuffs from the river directly exported without storing in warehouses 
 will pay the proper export duty either at Man-chou-li or at the Sui-fen-ho 
 branch customs station. But if after the arrival of the goods at Harbin, they are 
 stored at the customs station, or in the warehouses conrolled by the Chinese 
 customs, or in the warehouses controlled by the Chinese Eastern Railway, they 
 shall pay duties on being landed at the Port of Harbin. On all goods from 
 the Sungari region having through bills of lading for exportation at Man- 
 chou-li or Sui-fen-ho any excess export duty shall be returned according to 
 the regulations in force at Man-chou-li and Sui-fen-ho, regardless of whether the 
 goods have or have not been detained at Harbin. But it is noted that up to 
 the present there have been no such goods and therefore it is proper to wait for 
 further investigation of the facts. If there are any such goods, the commissioner 
 of customs and the Chinese Eastern Railway administration will determine 
 the method of procedure. 
 
 Article VII. — All the goods specified in Article 14 of the Regulations for 
 the land Traffic, appended to the St. Petersburg treaty of 1881 shall be exempt 
 from the payment of duty at the customs stations of the Sungari River in 
 accordance with the provisional regulations in force at Man-chou-li and 
 Sui-fen-ho. 
 
 Article VIII. — Up to the end of the present term for navigation tonnage 
 dues shall be collected as before. From the time when the monthly tonnage 
 statements for the use of the shipping during the present period are issued 
 the tax shall be determined by the customs commissioner of Harbin in con- 
 sultation with the chairman of the Chinese Eastern Railway Steamer Company. 
 The total amount fixed must not be more than one-fourth greater than the actual 
 tonnage receipts in the period commencing with the 14th day of the 5th moon of 
 the 1st year of Hsuan-t'ung, which is June 18, 1909, Russian calendar {i. e.,
 
 NUMBER 1910/3: AUGUST 8, 1910: AXXEX 809 
 
 June 31), and extending to the 24th day of the fifth moon of the 2nd year of 
 Hsiian-t'ung, Russian calendar, June 17 {i.e., June 30), 1910. 
 
 xA.RTicLE IX. — During the period in which these regulations are in force all 
 foodstuffs transported on the Sungari River shall be exempt from the provisions 
 relating to security and guaranty. 
 
 Article X. — From the establishment of any customs station on the Sungari 
 River to Hsiian-t'ung 2nd year fourth moon, fourth day (Russian calendar 
 April 29, 1910, i. e., May 12) all accounts for duties and tonnage collected or not 
 collected shall be closed, but from that time until these regulations are published 
 if any taxes are in excess or under those prescribed in the new regulations the 
 owner of the goods may report to the Customs. From the date of returning 
 the original customs receipts, within three weeks the amounts due shall be 
 returned. (The Customs) shall be asked to limit the time for receiving the 
 petitions regarding the return of excess taxes to the 27th day of the 11th moon 
 (Russian calendar December 15, i.e., Dec. 28). The receipts mentioned in the 
 petitions must be dated between the fourth day of the fourth moon of this year 
 (April 29/May 12) and the sixth day of the sixth moon (June 18/31). All 
 extra funds must be temporarily deposited in the Russo-Chinese Bank and after 
 the new regulations come into force these funds must be turned over to the 
 Maritime Customs. 
 
 Article XI. — Russian vessels may use Russian statements of tonnage and 
 goods which will be received by the River Customs, but such statements must 
 be in the form prescribed by the River Customs. 
 
 The above memorandum has been drawn up at Peking in Chinese and 
 Russian in duplicate and the copies compared and verified. 
 
 Date: Hsiian-t'ung, 2nd year, 7th moon, 4th day. 
 
 (July 26/August 8, 1910.) 
 
 ANNEX. 
 
 [Provisional Customs Regulations for Control of Vessels' Movements, Import 
 and Export of Goods on the Sungari River.] 
 
 Part I. 
 General Rules. 
 
 1. — Vessels which have the right of navigation and trade on the Sungari 
 River are subject to the following Regulations. 
 
 2. — Customs Officers will board vessels entering, and inspect them after 
 clearance outwards ; they may claim access to any part of the vessel at any time 
 during her stay in port. 
 
 3. — All vessels must in port anchor at places assigned by the Customs of 
 the port concerned upon their entry within its limits where all formalities of 
 entry will be attended to with despatch.
 
 810 CHINA TREATIES AND AGREEMENTS 
 
 4. — Neither cargo nor passengers may be landed or shipped before permission 
 has been given by the Customs. Cargo landed or shipped without such per- 
 mission is liable to confiscation. 
 
 5. — Manifests as well as Customs covers must be presented to the Customs 
 on arrival. A special Manifest must be handed in to the Lahasusu Customs 
 Barrier by all vessels entering from, or leaving for, the Amoor. It must specify 
 all cargo on board and give place of shipment and intended destination of all 
 goods inwards and outwards. 
 
 6. — Manifests must contain a true and full account of all cargo on board, 
 including duty-free goods, giving marks, numbers and contents and must be 
 signed by the Master or the responsible agent of the vessel concerned who 
 will be held responsible for their correctness. 
 
 7. — Shut-out goods will be recognized as duty-paid goods only on the con- 
 dition that they be presented immediately for re-examination. 
 
 8. — Vessels must produce their papers for inspection when called upon by 
 any Imperial Chinese Maritime Customs or Inland Barrier Official acting on be- 
 half of the Imperial Chinese Maritime Customs boarding them at the ports or 
 en route. 
 
 9. — Customs employees may be put on board of vessels to search them or 
 to accompany them for the purpose of surveillance. 
 
 10. — At the option of the Captain or the responsible agent of the vessel 
 the Customs may seal the hatches of the vessels ; such seals must not be broken 
 until the vessel reaches a port where she has to work cargo and until the necessary 
 permission has been obtained. The breaking of seals or opening of sealed 
 hatches with fradulent intentions will entail liability to a fine not exceeding Hk. 
 Tls. 500. 
 
 11.— For working cargo or passengers on Sundays or holidays as well as 
 on week days out of the regular working hours — 6 a. m. to 6 p. m. — Special Per- 
 mit Fees must be paid. These Fees will be collected according to the Table 
 appended hereto. 
 
 12. — Masters of vessels are expected to report to the Customs any changes 
 in the channel, accidents to shipping, loss of guiding marks, wrecks and other 
 noteworthy events. 
 
 13. — Trade in the following articles, viz. : gunpowder and other explosives, 
 shot, cannon, fowling pieces, rifles, muskets, pistols, saltpetre, sulphur, spelter 
 and all other munitions and implements of war and sport and salt is prohibited 
 on the Sungari ; arms found on board, not covered by certificates showing them 
 to be for self-defence or ship's use, will be confiscated. The export abroad of 
 rice, husked and unhusked, and Chinese copper cash and coins is also prohibited. 
 The importation of foreign copper coin blanks, copper coins, and copper cash is 
 likewise forbidden. 
 
 14. — Infraction of Customs Rules and Regulations will render the vessel 
 liable to the infliction of fines not exceeding Hk. Tls. 500. 
 
 The Russian vessel subjected to a fine has the right to pay the fine to the 
 Customs under protest and petition against it to the Russian Consul. 
 
 In case of the non-payment by a vessel of a fine imposed on her by the
 
 NUMBER 1910/3: AUGUST 8, 1910: ANNEX 811 
 
 Customs, as well as in cases of repetition of a breach of Customs Rules and 
 Regulations by the same vessel, making the infliction of the maximum fine of 
 Hk. Tls. 500 necessary, or in the event of it being necessary to inflict a heavier 
 penalty, the Chinese Customs addresses, whenever Russian subjects are concerned, 
 the Russian Consul for further treatment of the case. 
 
 The present Regulations are to be considered as provisional and will be in 
 force for a period of three years. 
 
 Part II. 
 
 DUES AXD DUTIES. 
 
 1. — The Imperial Maritime Customs on the River Sungari collect on goods 
 carried by vessels exclusively Customs levies and do not levy any Inland or 
 other duties or taxes. They also collect Transit Dues and River Dues. 
 
 All local taxes, when such are due, will be levied on cargoes before their 
 loading into, or after their discharge from, vessels in order to avoid detention 
 of the latter. 
 
 2. — For the present, and until further notice, the existing general system 
 of Tonnage Dues will not be enforced and a system of River Dues will be 
 introduced instead, calculated according to the nature and quantity of cargo and 
 the distance over which it is carried, vide the appended Table. 
 
 3. — Import and Export duties are leviable acoording to the existing Tariffs of 
 the Chinese Maritime Customs. (General Tarifif of 1858 and the Revised Import 
 Tariff of 1902). 
 
 Transit Dues on foreign goods are leviable at one half of the rates enumer- 
 ated in the above-mentioned Revised Import Tariff of 1902. 
 
 Goods unenumerated in the Tariffs, whether Imports or Exports, pay 5% 
 ad valorem. 
 
 4. — Imports from Russian Ports. — On goods coming from Russian ports 
 import duties are leviable in accordance with Art. 3 of Part II when these goods 
 are destined for places beyond the limits of the 100-li (50-versts) Zone. 
 
 Goods, however, imported into the limits of this Zone are not subject to any 
 duty. 
 
 Transit Dues are leviable on duty-free goods at the rate of 2}^% ad valorem, 
 and on dutiable goods — at one half of the rates of the existing tariffs. 
 
 5. — Native Goods. — All Native goods will pay one full Treaty Export duty 
 on their first passing an Imperial Chinese Maritime Custom House at Harbin, 
 Sansing, Lahasusu or any other place on the Sungari River where revenue con- 
 siderations or trade conditions may warrant the establishment of an Imperial 
 Maritime Customs Office. 
 
 The present stipulation does not apply to the following grain products, viz. : 
 Barley, Buckwheat, Buckwheat grit, Kaoliang, Maize, Millet (hsiao mitzu), 
 Oats and Wheat, as well as to Beans and Beancakes, brought by water to Harbin, 
 which goods will provisionally pay the general Treaty Export duty reduced by 
 one-third.
 
 812 CHINA TREATIES AND AGREEMENTS 
 
 Native goods loaded on vessels on the Sungari River and having for their 
 destination one of the places within the limits of the Russian 100-li (50-versts) 
 frontier Zone are exempted from payment of Export Duty. 
 
 Suitable documents will be issued to ensure the exemption of duty-paid 
 goods from a second levy of duty at another Imperial Maritime Customs Office. 
 ' Exemption from a second levy of Export duty will also be granted to cargo 
 exported via the Stations Manchuria and Suifenho (Pogranitchnaya). 
 
 The Outward Transit Pass system remains unaffected by the above. 
 
 The above commutation general Export duty, once paid, will in no case 
 be refunded. 
 
 6. — Documents in proof of payment of duties and dues are issued on the 
 lines of the general rules in force at the Treaty ports of China; cargo from one 
 Trade Mart to another which is not covered by these documents is liable to 
 confiscation. . 
 
 7. — Dues and duties are payable on imports before goods are removed from 
 Customs supervision, on Exports before shipment. 
 
 8. — Re-export and goods under Transit Certificates are entitled to same 
 Customs treatment as at the Treaty Ports of China. 
 
 9. — Before goods can be shipped, application must be made to the Customs, 
 who, after examination of them, will collect duty and issue Permit to ship. 
 
 10. — For presenting a false Manifest the master or the responsible agent of 
 a vessel will subject himself to a fine not exceeding Hk. Tls. 500. 
 
 All unmanifested or contraband goods found on searching a vessel will be 
 dealt with according to Treaties or, in certain cases, also according to the practice 
 of other ports in China. 
 
 For all manifested inward items of cargo found short on board, their 
 respective duties must be paid. 
 
 Harbin River Customs Provisional Regulations. 
 
 Inward bound vessels for Harbin must, on entering the port, present a 
 Manifest of all cargo on board together with all documents received in closed 
 covers from the Sansing and/or Lahasusu Customs, as well as a Memorandum 
 stating places visited en route, passengers and/or cargo discharged and/or 
 shipped at these places. 
 
 Outward bound vessels, when wishing to clear, must present a Manifest 
 giving full particulars of all cargo on board, Nos. of Shipping Orders, marks 
 and number of packages, description of goods, etc., — separate statements for 
 each place of destination. This Manifest will be checked with Customs docu- 
 ments and, if all in order, the vessel will be allowed to leave. 
 
 Duty paid cargo for open Trade Marts will be covered by Cargo Certificates 
 and Certificates proving payment of duty which will be handed to the Captain 
 or the responsible agent of the vessel in sealed cover for delivery to the Customs 
 at the place of destination. 
 
 Vessels passing Customs examination stations without stopping, or stopping 
 at places other than those prescribed by the Customs, will be liable to the penalties 
 laid down in Art. 14 of Part I of the Regulations.
 
 NUMBER 1910/3: AUGUST 8, 1910: ANNEX 813 
 
 Sansing Customs Provisional Regulations. 
 
 Inward bound vessels coming from the Amoor must on entering the port 
 present to the Customs the Manifest received in closed cover from the Lahasusu 
 Customs Barrier. If a vessel has called at places between Lahasusu and Sansing, 
 an additional Statement as to passengers and/or cargo discharged and/or shipped 
 at such places must be handed in. 
 
 When the vessel is ready to proceed up river the Manifest — of original 
 cargo, and of cargo newly shipped at Sansing — for Harbin must be handed to 
 the Captain in a sealed cover for delivery to the River Customs at Harbin. 
 
 Outward bound vessels from Harbin must on entering the port hand in 
 Cargo Certificates covers, and a Manifest of all cargo on board, separate state- 
 ments for each place of destination, with an additional Memorandum giving 
 Inland places called at en route, cargo and/or passengers shipped and/or landed 
 at these places. 
 
 When a vessel is ready to proceed down river, a Manifest, giving so and so 
 many packages original cargo on board and additional statement of cargo taken on 
 board at Sansing, must be handed in. If, after Customs documents have been 
 checked, all is found in order, the vessel is at liberty to leave. 
 
 Vessels passing Customs examination stations without stopping, or stopping 
 at places other than those prescribed by the Customs, will be liable to the penalties 
 laid down in Art. 14 of Part I of the Regulations. 
 
 Lahasusu Customs Barrier Provisional Regulations. 
 
 Inward bound vessels coming from the Amoor must on entering the port 
 produce Manifests (in duplicate) giving full particulars, marks and numbers of 
 packages, etc., of all cargo on board, — separate statements for each place of 
 destination and shipment. After Manifest has been checked with the cargo, 
 one copy is retained for the archives, whilst the other, with any remarks that may 
 be called for, will be signed and sealed by the Lahasusu Office and handed in a 
 closed cover to the Captain or the responsible agent of the vessel for delivery at 
 the next Customs station. 
 
 Outward bound vessels proceeding to the Amoor must stop for examina- 
 tion. A Manifest must be handed in stating particulars of all cargo on board, 
 showing also cargo and/or passengers shipped and/or discharged en route. 
 Failure to observe this rule will render the vessel liable to a fine. 
 
 Vessels passing Customs examination stations without stopping, or stopping 
 at places other than those prescribed by the Customs, will be liable to the penalties 
 laid down in Art. 14 of Part I of the Regulations.
 
 814 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1910/4. 
 
 GERMANY (Deutsch-Asiatische Bank), GREAT BRITAIN (Chinese Central 
 Railways, Limited) AND CHINA. 
 
 Supplementary loan agreement for the Tientsin-Pnkow Raihvaw^ — 
 
 September 28, 1910. 
 
 WHEREAS by an agreement made at Peking on the 10th day of 
 the 12th month of the 33rd year of Kuang Hsu corresponding to the 
 13th day of January 1908, f bctzveen 
 
 HIS EXCELLENCY LIANG TUN YEN, Acting Junior Vice- 
 President of the IVoirvupu, duly authorised to act on behalf of the 
 Imperial Government of China, of tJie one part, and, 
 
 A. THE DEUTSCH ASIATISCHE BANK, SHANGHAI, 
 
 B. THE CHINESE CENTRAL RAILWAYS LIMITED, LON- 
 DON, thereinafter termed the Syndicate, of the other part, 
 
 the Syndicate were authorised to issue, and did issue, a 5% Gold Loan for 
 i5,000,000 for the construction and equipment of a line of railway from 
 Tientsin to Pukow in the Empire of China: and WHEREAS, in order to permit 
 of the uninterrupted continuance of the work of construction provision was 
 made in Article 15 of the aforesaid Loan Agreement, hereinafter called the 
 Original Loan Agreement, for the issue by the Syndicate of a Supplementary 
 Loan of which the interest and other conditions as well as the price payable to the 
 Chinese Government should be governed by the terms of the original loan 
 agreement which still remains in full force and effect ; 
 
 This Agreement is now made at Peking this twenty fifth day of the eighth 
 month of the second year of Hsuan Tung, corresponding to the twenty eighth day 
 of September 1910, between 
 
 The Director General and Assistant Director General of the Tientsin-Pukow 
 Railway, Their Excellencies The Grand Councillor and Assistant Grand Secre- 
 tary Hsu Shih Chang, and the Acting President and Senior Vice-President of 
 the Board of Posts and Communications Shen Yiin Pei, duly authorised to act 
 on behalf of the Imperial Government of China, of the one part, and 
 
 A. THE DEUTSCH ASIATISCHE BANK, SHANGHAI, 
 
 B. THE CHINESE CENTRAL RAILWAYS LIMITED, 
 LONDON, hereinafter called the Syndicate of the other part. 
 
 Article 1. — The Imperial Government of China authorises the Syndicate 
 to issue a 5% Gold Loan for an amount of four million eight hundred thousand 
 pounds sterling (£4,800,000). The Loan shall be of the date on which the first 
 
 * Text as printed in Wang, p. 421. 
 
 With the text as there given are also printed the letters of agreement in regard to 
 advances given in the Note to this document, post, p. 824. 
 t No. 1908/1, ante.
 
 NUMBER 1910/4: SEPTEMBER 28, 1910 815 
 
 series of bonds is issued to the public and shall be called *' The Imperial Chinese 
 Government 5% Tientsin- Pukow Railway Supplementary Loan." 
 
 Article 2. — The Loan is designed to provide further capital for the con- 
 struction of a Government Railway line from a point connecting the Lnperial 
 Railways of North-China at or near Tientsin through Techow and Tsinanfu to 
 Ihsien near the Southern frontier of Shantung, hereinafter known as the North- 
 ern Section of the Tientsin-Pukow Railway line, and from Ihsien to a point at or 
 near Pukow (opposite Nanking on the Yangtsze Kiang), hereinafter known 
 as the Southern Section of the Tientsin-Pukow Railway line, the total length 
 of these two sections being about 1,085 kilometers, equal to about 2,170 
 Chinese li. 
 
 Article 3. — The capital so provided shall be solely devoted to the construc- 
 tion of the Railway line including the purchase of land, rolling stock and other 
 equipment, and to the working of the line and to the payment of interest on 
 the loan during the period of construction, which is estimated at 2 years from 
 the signature of this agreement. 
 
 Article 4. — The rate of interest for the loan shall be 5% per annum on 
 the nominal principal and shall be paid to the bondholders half-yearly. The 
 said interest shall be calculated from the date on which the loan is issued to the 
 public, and shall be paid by the Imperial Chinese Government during the time of 
 construction either from the proceeds of the loan or from other sources, and 
 afterwards, in the first place, out of the revenue of the Railway, and then from 
 such other revenues as the Chinese Government may think fit to use for the 
 purpose in half-yearly instalments according to the amounts specified in the 
 schedule attached to this agreement and fourteen (14) days before their due 
 dates, Western Calendar, as calculated half-yearly from the date on which the 
 loan is issued to the public. 
 
 Article 5. — The term of the loan shall be thirty (30) years. Repayment 
 of principal shall commence after the expiry of ten (10) years from the date of 
 the loan, and, except as provided in Article 6 hereinafter, shall be made by 
 yearly amortisation to the Deutsch Asiatische Bank and the Hongkong and 
 Shanghai Banking Corporation out of the revenue of the line or such other reve- 
 nues as the Chinese Government may think fit to use for the purpose, according 
 to the amounts specified in the schedule attached to this agreement, but fourteen 
 (14) days before their due dates. Western Calendar, as calculated from the date 
 on which the loan is issued to the public. 
 
 Article 6. — If at any time after the lapse of the ten (10) years from the 
 date of the loan the Imperial Chinese Government should desire to redeem the 
 whole outstanding amount of the loan, or any part of it, not yet due for repayment 
 in accordance wnth the schedule of repayments hereto attached, it may do so until 
 the twentieth (20th) year, by payment of a premium of two and one-half (2^4%) 
 per cent on the face value of the bonds (that is to say by payment of a hundred 
 and two pounds and ten shillings (£102.10) for each £100 bond) and after the 
 twentieth (20th) year without premium ; but in each and every case of such extra 
 redemption, the Imperial Chinese Government shall give six (6) months notice 
 in writing to the Syndicate, and such redemption shall be effected by additional
 
 816 CHINA TREATIES AND AGREEMENTS 
 
 drawings of bonds, to take place on the date of an ordinary drawing, as provided 
 for in the Prospectus of the Loan. 
 
 Article 7. — The Deutsch Asiatische Bank and the Hongkong and Shanghai 
 Banking Corporation having been appointed, by the German and British parties 
 of the Syndicate, respectively. Agents for the service of the loan the payments 
 due for amortisation and interest referred to in Articles 4 and 5, shall be made, 
 in accordance with the amounts of the Schedule attached to this agreement, and 
 fourteen (14) days before their due dates as fixed by Articles 4 and 5 to these 
 Banks by the Director General of the Railway, who shall hand to the said Banks 
 in Shanghai or in Tientsin fourteen (14) days before the said due dates, funds in 
 Shanghai or Tientsin Sycee sufficient to meet such payments in Gold in Europe, 
 exchange for ivhich shall be settled zvith the said Banks on the same day, the 
 Railway Administration having, however, the option of settling exchange with the 
 two Banks at any date or dates within six (6) months previous to any due date 
 for the repayment of interest and principal. These payments may, however, be 
 made in Gold if the Imperial Chinese Government should happen to have Gold 
 funds " bona fide " at their disposal in Europe not remitted from China for 
 the purpose and desire so to use them. 
 
 In reimbursement of expenses connected with the payment of interest and 
 the repayment of principal of the loan, the Hongkong and Shanghai Banking 
 Corporation and the Deutsch Asiatische Bank will receive a commission of one- 
 quarter (54) per cent, on the annual loan service. 
 
 Article 8. — The Imperial Government of China hereby engages that the 
 interest and principal of this loan shall duly be paid in full, and should the 
 revenue of the Railway and/or the proceeds of the loan not be sufficient to 
 provide for the due and full payment of the Interest and repayment of principal, 
 the Director General shall memorialise the Throne and the Imperial Government 
 of China will thereupon make arrangements to ensure that the amount of defi- 
 ciency shall be met from other sources and handed over to the Banks on the date 
 upon which funds are required, to complete full payment of interest and repay- 
 ment of principal. 
 
 Article 9. — The loan is hereby secured : — 
 
 1. By a second charge on the likin and internal revenues of the three prov- 
 inces enumerated in Article 9 of the Original Tientsin-Pukow Railway Loan 
 Agreement amounting to Haikuan Taels 3,800,000 a year, after satisfaction of 
 all the obligations contained in the said Article. 
 
 2. By a first charge on the following additional revenues, calculated on the 
 basis of the maximum annual payments of principal and interest due : — 
 
 A. Likin and internal revenues of the Province of Chihli to the amount 
 of Haikuan Tls. 1,000,000 a year; 
 
 B. Likin and internal revenues of the Province of Shantung to the 
 amount of Haikuan Tls. 1,200,000 a year; 
 
 C. Revenue of the Nanking Likin Collectorate (to the amount of 
 Haikuan Tls. 600,000 a year) and of the Huai-an Native Customs (to the 
 amount of Haikuan Tls. 100,000 a year) in the Province of Kiangsu;
 
 NUMBER 1910/4: SEPTEMBER 28, 1910 817 
 
 D. Likin and internal revenues of the Province of Anhui to the amount 
 of Haikuan Tls. 700,000 a year. 
 
 With the exception of the first charge created by the Original Loan Agree- 
 ment the Provincial revenues as above stated are hereby declared to be free from 
 all other loans, charges or mortgages. 
 
 So long as principal and interest of the loan are regularly paid, there shall 
 be no interference with these provincial revenues but if principal or interest 
 of the loan be in default at due date, then, after a reasonable period of grace, likin 
 and suitable internal revenues of the four provinces sufficient to provide the 
 amount above stated shall forthwith be transferred to, and be administered by, 
 the Imperial Maritime Customs, in the interest of the bondholders. And so long 
 as this loan or any part thereof shall remain unredeemed, it shall have priority 
 both as regards principal and interest, subject to the obligations created by 
 Article 9 of the original loan agreement over all future loans, charges and mort- 
 gages charged on the above-mentioned revenues of the four provinces. 
 
 No loan, charge or mortgage shall be raised or created which shall take 
 precedence of, or be on equality with this loan, or which shall in any manner lessen 
 or impair its security over the revenues of the four provinces as above stated ; and 
 any future loan, charge or mortgage charged on the said revenues of the four 
 provinces shall be made subject to this loan, and it shall be so expressed in every 
 agreement for every such future loan, charge or mortgage. It is understood 
 and agreed that so long as this loan is unredeemed the Railway shall under no 
 circumstances be mortgaged nor its receipts given as security to any other party. 
 
 In the event of the Chinese Government, during the currency of this loan 
 entering upon definite arrangements for the revision of Customs Tarifif accom- 
 panied by stipulations for decrease or abolition of likin, it is hereby agreed, on 
 the one hand, that such revision shall not be barred by the fact that this loan is 
 secured by likin and provincial revenues, and, on the other hand, that whatever 
 likin is required to provide the security of this loan shall neither be decreased nor 
 abolished except by previous arrangement with the Syndicate and then only in so 
 far as an equivalent is substituted for it in the shape of a first charge upon the 
 increase of Customs Revenue consequent upon such revision. 
 
 Article 10. — The Syndicate is hereby authorised to issue to subscribers to 
 the loan. Bonds for the total amount of the loan for such amounts as may appear 
 advisable to the Syndicate. The form of the Bonds shall be settled by the 
 Syndicate in consultation with the Director General or the Chinese Ministers in 
 London and Berlin. The Bonds shall be engraved in Chinese and English or 
 Chinese and German as may be required ; they shall bear the facsimile of the 
 signature of the Director General and of his seal of Office, in order to dispense 
 with the necessity of signing them all in person ; and it is hereby agreed that the 
 Chinese Minister in London shall, previous to the issue of any Bonds, put his 
 seal upon each Bond with a facsimile of his signature, as a proof that the issue 
 and sale of the Bonds are duly authorised by, and binding upon, the Imperial 
 Chinese Government, and the representatives of the Syndicate in London shall 
 countersign the bonds as Agents for the issue of the loan.
 
 818 CHINA TREATIES AND AGREEMENTS 
 
 In the event of bonds issued for this loan being lost, stolen or destroyed, the 
 Syndicate shall immediately notify the Director General and the Chinese Minister 
 in London and/or Berlin, as the case requires, who shall authorise the Syndicate 
 to insert an advertisement in the public newspapers notifying that payment of the 
 same has been stopped and to take such other steps as may appear advisable or 
 necessary according to the laws and customs of the country concerned, and 
 should such bonds not be recovered after a lapse of time to be fixed by the Syndi- 
 cate, the Director General or the Chinese Minister in London, shall seal and 
 execute duplicate bonds for a like amount and hand them to the Syndicate, by 
 whom all expenses in connection therewith shall be defrayed. 
 
 Article IL — All bonds and coupons and payments made and received in 
 connection with the service of this loan shall be exempt from all Chinese taxes 
 and imposts during the currency of this loan. 
 
 Article 12. — All details necessary for the prospectus and connected with 
 the payment of the interest and repayment of the principal of this loan, not 
 herein explicitly provided for, shall be left to the arrangement of the Syndicate 
 in consultation with the Chinese Ministers in London and Berlin. The Syndicate 
 is hereby authorised to issue the prospectus of the loan as soon as possible after 
 the signing of this agreement ; and the Imperial Government will instruct the 
 Chinese Ministers in London and Berlin to co-operate with the Syndicate in any 
 matters requiring conjoint action and to sign the prospectus of the loan. 
 
 Article 13. — The loan shall be issued to the public in two or more series 
 of bonds the first issue to be made to the amount of three million pounds sterling 
 (£3,000,000) as soon as possible after the signature of this agreement, and not 
 later than six (6) months from the date thereof. The price to the Imperial 
 Chinese Government of the bonds shall be the actual rate of their issue to the 
 public, less flotation charges of five and a half (S}^) points retainable by the 
 Syndicate (that is to say, a charge of five pounds ten shillings (£5/10/-) for 
 every £100 bond issued). Subscriptions will be invited by the Syndicate in 
 Europe and in China both from Chinese and Europeans on equal conditions, pref- 
 erence being given to the application of the Chinese Government, provided such 
 application be made before the issue of the prospectus to the public. 
 
 If before the issue of this loan has been completed and during the period of 
 construction it is found that the capital to be provided under Article 3 is already 
 sufficient the Director General shall have the power at his discretion, to dispense 
 with the issue of further bonds. 
 
 Article 14. — The proceeds of the loan shall be paid to the credit of a 
 Tientsin-Pukow Government Railway Supplementary Loan Account with the 
 Hongkong and Shanghai Banking Corporation and the Deutsch Asiatische Bank 
 in China, London or Berlin, as the case may be. Payments of loan proceeds into 
 the credit of this account shall be made in instalments and on dates conforming 
 to the conditions allowed to the subscribers to the loan. Interest at the rate of 
 four (4) per cent per annum shall be granted on the credit balance of the portion 
 of this account kept in London and Berlin, and interest on the credit balance of 
 the portion kept in China will be allowed at the Banks' rates for current accounts, 
 or fixed deposits, as the case may be, to be arranged. After deduction of the
 
 NUMBER 1910/4: SEPTEMBER 28, 1910 819 
 
 funds required for the service of interest and for commission on this service dur- 
 ing the time of construction, the Banks will hold the net proceeds with accrued 
 interest to the order of the Director General, who, in ordering payments of any 
 sums exceeding twenty thousand pounds (£20,000) shall give notice to the Banks 
 ten (10) days before the day on which they are required. Requisitions on the loan 
 funds will be drawn in amounts to suit the progress of construction of the Rail- 
 way by orders on the Hongkong and Shanghai Banking Corporation and the 
 Deutsch Asiatische Bank respectively, signed by the Managing Director of the 
 Railway or, in his absence, by his duly authorised representative, and accompanied 
 by his certificates stating the nature and cost of the work to be paid for. 
 
 Such amounts as may be required in China may at any time be transferred 
 by the Managing Director, at his discretion, to Shanghai, the transfers being 
 effected through the Hongkong and Shanghai Banking Corporation and the 
 Deutsch Asiatische Bank respectively, and the transferred funds shall remain 
 on deposit with those Banks until required for railway purposes. 
 
 The accounts of the Railway will be kept in Chinese and English in accord- 
 ance with accepted modern methods, and will be supported by all necessary 
 vouchers. During the period of construction the said accounts and vouchers 
 will be open at any time to the inspection of an Auditor, appointed and paid by 
 the Syndicate, whose duties will be confined to certifying to the Syndicate to the 
 due expenditure of the loan funds in accordance with the provisions of Article 3 
 of this agreement, and to certifying to a monthly statement of the foreign materials 
 purchased by the Railway Administration under the provisions of Article 18 
 hereinafter. He will arrange with the Railway Administration that his inspec- 
 tions shall take place on such dates and at such intervals as will enable him 
 efificiently to carry out his duties as herein provided. The Railway Administra- 
 tion will publish annually upon the close of its financial year, a report in the 
 Chinese and English languages showing the working accounts and traffic receipts 
 of the Railway, which report shall be procurable by the public on application. 
 
 Article 15. — If during the time of construction the net proceeds of the 
 present loan w'ith accrued interest should, after deduction of the sums necessary 
 for the service of interest on the loan, not be sufificient to complete the construc- 
 tion and equipment of the Railway line, the amount of deficiency shall be 
 provided, in the first place, from such Chinese funds as may be available so as to 
 permit of the uninterrupted continuance of the work of construction, any balance 
 then uncovered being supplemented by a further foreign loan for the amount 
 required to be issued by the Syndicate. The interest and other conditions of such 
 supplementary loan will be the same as in the present agreement, and the price 
 will be determined as in the case of the present loan. If after the completion of 
 the line there should be a balance at credit of the Railway Supplementary Loan 
 Account such unused balance will be transferred to the credit of the interest 
 reserve fund hereinafter mentioned in Article 20 as a provision for payments for 
 which the Imperial Chinese Government is responsible under this Agreement. 
 
 Article 16. — If, before the publication of the prospectus for the issue of the 
 loan, any political or financial crisis should take place by which the market and 
 the prices of existing Chinese Government stocks are so affected as to render, in
 
 320 CHINA TREATIES AND AGREEMENTS 
 
 the opinion of the Syndicate, the successful issue of the loan impossible on the 
 terms herein named, the Syndicate shall be granted further extension of time but 
 not beyond nine (9) months from the date of this agreement, for the performance 
 of their contract. If within this time limit the first series of the loan shall not 
 have been issued then this contract shall become null and void. 
 
 Article 17. — The construction and control of the Railway will be entirely 
 vested in the Imperial Chinese Government. For the work of construction of the 
 Northern and Southern Sections respectively the selection and appointment by the 
 Imperial Chinese Government of fully qualified German and British Chief 
 Engineers, acceptable to the Syndicate, which have already been made, will be 
 continued as heretofore. In the event of the Syndicate objecting to any proposed 
 appointment, the cause of such objection shall be definitely stated. These two 
 Chief Engineers shall be under the orders of the Managing Director, or, in 
 his absence, his duly authorised representative, and will carry out all the wishes 
 of the Railway Administration with regard to the plan and construction of the 
 line. In their general conduct they shall pay all due respect to the Director Gen- 
 eral and the Managing Director. The terms of their respective agreements will 
 be arranged by the Director General on his sole authority. 
 
 Whenever appointments are to be made or functions are to be defined of the 
 technical employes on the railway stafif, as well as in the case of their dismissal, 
 the Managing Director, or, in his absence, his duly appointed representative, will 
 act in consultation with the Chief Engineer of the section concerned, and, in the 
 case of disagreement, the matter will be referred to the Director General whose 
 decision shall be final. 
 
 After completion of construction the Imperial Chinese Government will 
 administer both sections as one undivided Government Railway and will appoint 
 an Engineer-in-Chief, who during the period of the loan shall be a European, 
 without reference to the Syndicate. 
 
 Article 18. — For the Northern and Southern Sections of the Railway 
 respectively the Deutsch Asiatische Bank and the Chinese Central Railways 
 Limited will act as Agents of the Railway Administration, during construction, 
 for the purchase of all materials, plant and goods required to be imported from 
 abroad. For all important purchases of such materials, tenders shall be called 
 for by the Managing Director ; in the case of all tenders, indents and orders for 
 the importation of goods and materials from abroad, the said Agents shall pur- 
 chase the materials required on the terms most advantageous to the Railway, and 
 shall charge the original net cost of the same plus a commission of five (5) per 
 cent. It is understood that no orders for materials shall be executed or any 
 expenditure incurred without due authorisation by the Managing Director. 
 
 In return for payment of commission as above stated, the Deutsch Asiatische 
 Bank and the Chinese Central Railways Limited as Agents within their respective 
 sections, shall be prepared to superintend the purchase of all foreign materials 
 required for the construction and equipment of the Railway, which shall be 
 purchased in the open market at the lowest rate obtainable, it being understood 
 that all such materials shall be of good and satisfactory quality, and that the Rail- 
 way Administration shall have the right to reject on arrival in China materials
 
 NUMBER 1910/4: SEPTEMBER 28, 1910 821 
 
 which do not come up to specifications. At equal rates and qualities goods of 
 German and British manufacture shall be given preference over other goods of 
 foreign origin for the Northern and Southern Sections respectively. The Railway 
 Administation reserves the right, while paying the above stipulated commission to 
 the said Agents in respect of all purchases of foreign materials, to avail itself 
 of the services of other Agents in China or abroad should it see fit to do so. 
 Original invoices and Inspectors' Certificates are to be submitted to the Managing 
 Director ; all return commissions and rebates of every description shall be credited 
 to the Railway; and all purchases made by the Agents on behalf of the Railway 
 shall be supported by manufacturers' original invoices and inspectors' certificates. 
 
 No commission shall be paid to the Agents except as above provided ; but it is 
 understood that the Railway Administration shall provide out of Railway funds 
 for the remuneration of consulting engineers whenever their services are engaged. 
 
 With a view to the encouragement of Chinese industries, preference will be 
 given at equal prices and qualities, over British, German or other foreign goods, 
 to Chinese materials and goods manufactured in China. No commission will be 
 paid on purchases of such materials and goods. 
 
 It is understood and agreed that after the construction of the line is completed 
 the Deutsch Asiatische Bank and the Chinese Central Railways Limited, within 
 their respective sections, will be given the preference for such Agency business, 
 during the currency of the loan, for the supply of foreign materials as the Railway 
 Administration may require, on terms to be hereafter mutually agreed upon. 
 
 Article 19.— Branch lines in connection with the Railway line mentioned in 
 this agreement that may appear profitable or necessary later on shall be built by 
 the Imperial Chinese Government with funds at their disposal from Chinese 
 sources, and if foreign capital is required, preference will be given to the 
 Syndicate. 
 
 Article 20. — After payment of interest and repayment of principal of the 
 loan for any current year, the Railway Administration will deposit with the 
 Deutsch Asiatiche Bank and the Hongkong and Shanghai Banking Corporation 
 in Shanghai or Tientsin any surplus of the net revenue of the Railway line for 
 that year up to the amount required to pay the following year's instalments of 
 interest on the loan ; the rate of interest on the deposit being arranged with the 
 Banks from time to time with due regard to the conditions of the market. 
 
 Article 21. — The Deutsch Asiatische Bank and the Chinese Central Rail- 
 ways Limited may, subject to all their obligations under this Agreement, transfer 
 or delegate all or any of their rights, powers and discretions thereunder to any 
 German or British Company, Directors or Agents with powers of further trans- 
 fer, and sub-delegation ; such transfer, sub-transfer, delegation or sub-delegation 
 to be subject to the approval of the Director General. 
 
 Article 22. — This agreement is signed under authority of an Imperial Edict 
 dated the nineteenth day of the eighth month in the second year of Hsuan Tung, 
 corresponding to the twenty second day of September, 1910, Western Calendar, 
 which has been officially communicated to the Ministers of Great Britain and 
 Germany in Peking by the Waiwupu. 
 
 Article 23. — Five sets of this Agreement are executed in English and
 
 822 
 
 CHINA TREATIES AND AGREEMENTS 
 
 Chinese, three sets to be retained by the Imperial Chinese Government and two 
 by the Syndicate. 
 
 In the event of any doubt arising regarding the interpretation of the contract, 
 the EngHsh text shall rule. 
 
 Signed at Peking by the contracting parties this twenty fifth day of the 
 eighth month of the second year of Hsuan Tung, corresponding to the twenty 
 eighth day of September one thousand nine hundred and ten, Western Calendar. 
 
 For the Deutsch Asiatische Bank, 
 
 H. CORDES. 
 
 Director General, Tientsin-Pukozv Railway, 
 Hsu Shih Chang. 
 
 For the Chinese Central Railways Limited, 
 S. F. Mayers. 
 
 Assistant Director General, Tientsin-Pnkow Railway. 
 Shen Yun Pei. 
 
 [Seal of Director General, Tientsin-Pukow Railway.] 
 
 TIENTSIN-PUKOW RAILWAY SUPPLEMENTARY LOAN. 
 £4,800,000 AT 5% : 30 YEARS. 
 
 Schedule of Payments of Interest and Repayments of Principal. 
 
 Year 
 
 Interest 
 
 Principal 
 
 Total Principal 
 Repaid 
 
 Principal still 
 Outstanding 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 1 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 2 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 3 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 4 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 S 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 6 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 7 
 
 120,000 ■ 
 120,000 
 
 
 
 4,800,000 
 
 8 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 9 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 10 
 
 120,000 
 120,000 
 
 
 
 4,800,000 
 
 11 
 
 120,000 
 
 
 
 
 
 120,000 
 
 240,000 
 
 240,000 
 
 4,560,000 
 
 12 
 
 114,000 
 
 
 
 
 
 114,000 
 
 240,000 
 
 480,000 
 
 4,32.0,000 
 
 13 
 
 108,000 
 
 
 
 
 
 108,000 
 
 240,000 
 
 720,000 
 
 4,080,000 
 
 14 
 
 102,000 
 
 
 
 
 
 102,000 
 
 240,000 
 
 960,000 
 
 3,840,000 
 
 15 
 
 96,000 
 
 
 
 
 
 96,000 
 
 240,000 
 
 1,200,000 
 
 3,600,000
 
 NUMBER 1910/4: SEPTEMBER 28, 1910 
 
 823 
 
 Year 
 
 Interest 
 
 Principal 
 
 Total Principal 
 Repaid 
 
 Principal still 
 Outstanding 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 16 
 
 90,000 
 
 
 
 
 
 90,000 
 
 240,000 
 
 1,440,000 
 
 3,360,000 
 
 17 
 
 84,000 
 
 
 
 
 
 84,000 
 
 240,000 
 
 1,680,000 
 
 3,120,000 
 
 18 
 
 78,000 
 
 
 
 
 
 78,000 
 
 240,000 
 
 1,920,000 
 
 2,880,000 
 
 19 
 
 72,000 
 
 
 
 
 
 72,000 
 
 240,000 
 
 2,160,000 
 
 2,640,000 
 
 20 
 
 66,000 
 
 
 
 
 
 66,000 
 
 240,000 
 
 2,400,000 
 
 2,400,000 
 
 21 
 
 60,000 
 
 
 
 
 
 60,000 
 
 240,000 
 
 2,640,000 
 
 2,160,000 
 
 22 
 
 54,000 
 
 
 
 
 
 54,000 
 
 240,000 
 
 2,880,000 
 
 1,920,000 
 
 23 
 
 48,000 
 
 
 
 
 
 48,000 
 
 240,000 
 
 3,120,000 
 
 1,680,000 
 
 24 
 
 42,000 
 
 
 
 
 
 42,000 
 
 240,000 
 
 3,360,000 
 
 1,440,000 
 
 25 
 
 36,000 
 
 
 
 
 
 36,000 
 
 240,000 
 
 3,600,000 
 
 1,200,000 
 
 26 
 
 30,000 
 
 
 
 
 
 30,000 
 
 240,000 
 
 3,840,000 
 
 960,000 
 
 27 
 
 24,000 
 
 
 
 
 
 24,000 
 
 240,000 
 
 4,080,000 
 
 720,000 
 
 28 
 
 18,000 
 
 
 
 
 
 18,000 
 
 240,000 
 
 4,320,000 
 
 480,000 
 
 29 
 
 12,000 
 
 
 
 
 
 12,000 
 
 240,000 
 
 4,560,000 
 
 240,000 
 
 30 
 
 6,000 
 
 
 
 
 
 6,000 
 
 240,000 
 
 4,800,000 
 
 
 Pending the issue of the final series of this loan, in terms of Article 13 of 
 the agreement, the half-yearly interest on the series actually issued shall be cal- 
 culated pro rata in respect to the amounts of such series on the basis of the 
 present schedule for the total amount of £4,800,000, but it shall be so arranged 
 that the dates of payment of the second and any subsequent series shall coincide 
 with those of the first series, in such way that, when all the series have been 
 issued, the service of principal and interest of the loan may be brought into line 
 in respect to dates of payment.
 
 824 CHINA TREATIES AND AGREEMENTS 
 
 Note. 
 
 Letter of Agreement for Advances by Deutsch-Asiatische Bank for Tientsin-Pukow 
 
 Railway, July ii, 1912. 
 
 DEUTSCH-ASIATISCHE BANK. 
 
 Peking, 11th July, 1912. 
 
 The Honourable Mr. Chu Chichien, 
 
 Director General Tientsin-Pukow Railway, 
 Present. 
 Sir, 
 
 I have the honour to inform you that, as the final series of bonds of the Chinese Gov- 
 ernment Five Percent Tientsin-Pukow Railway Supplementary Loan has not yet been issued 
 and with a view to permit of the uninterrupted continuance of the work of construction, the 
 Deutsch Asiatische Bank in Berlin has, in compliance with your request, consented to an 
 advance to the amount of i40,000 (Forty Thousand Pounds Sterling) for the urgent re- 
 quirements in July of the Tientsin-Pukow Railway, Northern Section, under the following 
 terms and conditions : — 
 
 1. — The Deutsch Asiatische Bank agrees to advance the said amount of i40,000 to the 
 Tientsin-Pukow Railway Administration in instalments as required, bearing interest 
 at the rate of seven (7) percent per annum from the date of each instalment, and to 
 be repaid with interest by deduction by the Deutsch Asiatische Bank from the final 
 issue of the Tientsin-Pukow Railway Supplementary Loan Bonds, or, in any case, on 
 the 31st December, 1912. 
 
 2. — The unissued part of the Bonds of the Tientsin-Pukow Railway Supplementary 
 Loan now deposited with the Deutsch Asiatische Bank in Berlin are hereby hypothe- 
 cated as security for this present and former advances made by the Deutsch Asiatische 
 Bank to the Tientsin-Pukow Railway Administration, and these Bonds will in like 
 manner be given as security for any future advances for the completion of Construc- 
 tion which the Deutsch Asiatische Bank may agree to make to the Railway Administra- 
 tion. 
 
 3. — This advance will only be employed for the purposes enumerated in the statement 
 annexed hereto. 
 
 4. — The arrangements made between the Berlin Purchasing Agency and the Tientsin- 
 Pukow Railway, Northern Section, for payments of materials purchased at Berlin will 
 remain unchanged. 
 
 5. — This advance shall be kept in the Deutsch Asiatische Bank until actually required 
 for the purposes specified in the statement annexed hereto and shall be drawn upon as 
 hereinafter provided. 
 
 6. — Requisitions on this advance will be drawn by order issued and signed by the for- 
 eign Chief Accountant of the Tientsin-Pukow Railway, Northern Section, and approved 
 and countersigned by the Managing Director or his Representative. 
 
 7. — Until complete repayment with interest of this advance and of all former advances 
 made by the Deutsch Asiatische Bank to the Tientsin-Pukow Railway Administration, 
 the latter will treat all their traffic Receipts on the Northern Section as funds for 
 construction works and/or the Loan service, and will deposit with the Deutsch 
 Asiatische Bank such amounts thereof as the Engineer-in-Chief will not require imme- 
 diately for construction purposes. The Foreign Chief Accountant of the Northern 
 Section shall every ten days furnish to the IManaging Director for the information 
 of the Engineer-in-Chief a statement of earnings from all sources. The conditions for 
 drawing on the earnings so deposited with the Deutsch Asiatische Bank will be the 
 same as those provided in clause 6 above. 
 
 8.— In the event of the Chinese Government having bona fide Chinese funds at their 
 disposal for carrying on the work of construction, they may at any time utilise such 
 funds for repaying with interest any advances as may then have been made, and thereby 
 render the arrangements made under this Letter of Agreement null and void. 
 9. — The terms and conditions of this Letter of Agreement will forthwith be communi- 
 cated by the Director General of the Tientsin-Pukow Railway through the Board of 
 Communications to the Waichiao Pu and will by the Waichiao Pu be officially com- 
 municated to the Minister for Germany in Peking. 
 
 10. — This Letter is in duplicate in English and Chinese and it is understood that in 
 the event of any doubt arising regarding the interpretation of its terms the English text 
 shall rule. 
 
 I have the honour to request that you will be good enough to signify your acceptance 
 and confirmation of the arrangements and conditions herein contained by affixing your
 
 NUMBER 1910/4: SEPTEMBER 28, 1910: NOTE 825 
 
 signature to the statement to this effect below, retaining one copy of the Letter so executed 
 for your files and returning the other to the undersigned. 
 
 I have the honour to be, Sir, 
 Your obedient servant, 
 For the Deutsch Asiatische Bank, 
 
 H. CORDES. 
 
 I hereby accept and confirm on behalf of the Tientsin-Pukow Railway Administration 
 the arrangements and conditions herein contained. 
 Peking 11th July, 1912. 
 
 (Signed) 
 (Seal) 
 
 Lm JuLI 1912 VORRAUSSICHTLICH ZU LeISTENDE 
 
 Zahlungen in China. 
 
 A-Ausgahen: — 
 
 Shantung Bahn Frachten $ 70,000 
 
 Peking-Alukden Bahn Frachten " 30,000 
 
 Chee Hsin Co., Cementlieferungen "100,000 
 
 Chinese Engineering & M. Co., Kohlen " 98,000 
 
 China Imp. Exp. & Lumber Co., Schwellen "119,000 
 
 $417,000 
 
 Ein Drittel $139,000 
 
 Peking-Mukden Bahn, Vorschuss ■ ■ $ 40,000 
 
 Bau & Betriebsausgaben "250.000 
 
 Gehaelter Europaer " 25,000 
 
 Chinesen " 38,000 
 
 Polizei " 7,000 
 
 Soldaten " 8,000 
 
 Laufende Ausgaben " 20,000 
 
 $527,000 
 B. Einnahmen: — ( V oraussichtlich) 
 
 Deutsch Asiatische Bank Berlin £30,000 $300,000 
 
 Betriebseinnahmen $120,000 
 
 Peking-Hankow Railway • • $ 20,000 
 
 $440,000 
 
 Zu wenig $ 87,000 
 
 Wenn von der Deutsch Asiatischen Bank Berlin statt £30,000 deren £40,000 ueber- 
 wiesen wuerden, so koennten die Ausgaben wie oben gedeckt warden. 
 
 (Gezeichnet) Brickner. 
 
 22/6 1912. 
 
 Letter of Agreement for Advances by Deutsch-Asiatische Bank for Tientsin-Pukow 
 
 Railway, August 12, 1912. 
 
 DEUTSCH-ASL'\TISCHE BANK. 
 
 Peking, 12th August, 1912. 
 The Honourable Mr. Chii Chi-chien, 
 
 Director General of the Tientsin-Pukow Railway, Peking. 
 Sir, 
 
 I have the honour to inform you that, as the final series of bonds of the Chinese 
 Government Five Percent Tientsin-Pukow Railway Supplementary Loan has not yet been 
 issued and with a view to permit of the uninterrupted continuance of the work of construc- 
 tion, the Deutsch Asiatische Bank in Berlin has, in compliance with your request, consented 
 to an advance to the amount of £49,000. — (Forty Xine Thousand Pounds Sterling) for 
 the urgent requirements in August of the Tientsin-Pukow Railway, Northern Section, as 
 specified in the Statement annexed hereto, under the terms and conditions set forth in my 
 Letter of Agreement for the advance of £40,000 for the month of July, dated the 11th of 
 July, 1912. 
 
 It is understood and agreed that this present advance of £49,000 shall be treated in 
 conjunction with the advance for July of £40,000 above referred to and with all previous 
 advances made by the Deutsch Asiatische Bank to the Tientsin-Pukow Railway Administra- 
 tion. 
 
 I have the honour to request that you will be good enough to signify your acceptance
 
 826 CHINA TREATIES AND AGREEMENTS 
 
 and confirmation of the arrangements and conditions herein contained by affixing your 
 signature to the statement to this effect below, retaining one of the two copies of this 
 Letter so executed for your files and returning the other to the undersigned. 
 
 I have the honour to be, Sir, 
 Your obedient servant. 
 For the Deutsch-Asiatische Bank, 
 
 (S d) H. CORDES. 
 
 I hereby accept and confirm on behalf of the Tientsin-Pukow Railway Administration 
 the arrangements and conditions herein contained. 
 Peking 12th August, 1912. 
 
 (S'd) 
 
 (Seal) 
 
 STATEMENT. 
 
 (Extract of the Estimate for the month of August, 1912, signed by the Chief 
 Accountant Mr. Brickner on July 27th, 1912.) 
 
 ( Europeans £1625.-.= $16250.-. 
 
 Salaries] do $ 8000.-. $24,250.-. 
 
 ( Chinese ,,77,255.60 
 
 Wages ,37,708.50 
 
 Contractors ,,85,650.27 
 
 Construction Materials ,,56,766.06 
 
 Store Materials, including Coal $12,300.- ,,76,886.-. 
 
 Current Expenses ,,12,201.21 
 
 $370,697.64 
 Current Account Debts: — 
 
 Shuntung Railway $ 55,387.-. 
 
 Cement Works $110,590.-. 
 
 Lumber Co „ 80,250.-. 
 
 Engineering Co „ 88,519.-. 
 
 Peking Mukden R „ 30,000.-. .' $364,746.-. 
 
 $735,443.64 
 
 Letter of Agreement for Advances by Chinese Central Railways for Tientsin-Pukow 
 
 Railway, August 28, 1912. 
 
 CHINESE CENTRAL RAILWAYS LIMITED. 
 
 Peking, August 28th, 1912. 
 The Honourable Mr. Chu Chi-Chien, 
 
 Minister of Communications, Peking. 
 Sir, 
 
 I have the honour to inform you that, as the final series of bonds of the Chinese 
 Government 5%Tientsin Pukow Railway Supplementary Loan has not yet been issued, 
 and with a view to permit of the uninterrupted continuance of the work of construction 
 and maintenance, Chinese Central Railways Limited, London, has, in compliance with your 
 request, consented to make advances not exceeding £300,000 sterling, in instalments to meet 
 the urgent requirements of the Tientsin Pukow Railway, Southern Section, under the follow- 
 ing terms and conditions : — 
 
 1. Chinese Central Railways Limited agree to make the said advances, not exceeding 
 £300,000 (Three Hundred Thousand pounds) in monthly instalments as required, up to 
 March 31st 1913, bearing interest at the rate of 7% per annum from the date of each instal- 
 ment : these advances together with previous advances already made by Chinese Central 
 Railways Limited to be repaid with interest by deduction by Chinese Central Railways 
 Limited from the final issue of the Tientsin Pukow Railway Supplementary Loan bonds, or 
 in any case on March 31st 1913. 
 
 2. The unissued part of the bonds of the Tientsin Pukow Railway Supplementary Loan 
 (London issue) are hereby hypothecated as security for this present and all former 
 advances made by Chinese Central Railways Limited to the Tientsin Pukow Railway Ad- 
 ministration, and these bonds will in like manner be given as security for any future ad- 
 vances for the completion of construction which Chinese Central Railways Limited may 
 agree to make to the Railway Administration. 
 
 3. It is hereby agreed that these advances will be applied solely to the following pur- 
 poses : — 
 
 a. Payment of the Southern Section's outstanding obligations, and the provision 
 of the necessary rolling stock and ferry between Pukow and Nanking. 
 
 b. Continuance of construction work on the Southern section.
 
 NUMBER 1910/4: SEPTEMBER 28, 1910: NOTE 827 
 
 4. These advances shall be kept in the Hongkong and Shanghai Banking Corporation 
 until actually required for the purposes specified in Clause 3 and shall be drawn upon as here- 
 inafter provided. 
 
 5. Requisitions on these advances will be drawn by orders issued and signed by the 
 foreign Chief Accountant of the Tientsin Pukow Railway Southern Section and approved 
 and countersigned by the Managing Director, or his representative. 
 
 6. Until complete repayment with interest of these advances and of all other advances 
 made by Chinese Central Railways Limited to the Railway Administration the latter will 
 treat their traffic receipts on the Southern Section as funds for construction works and/or 
 loan service, and will deposit with the Hongkong and Shanghai Bank such amounts thereof 
 as the Engineer-in-Chief will not require immediately for construction purposes. The 
 foreign Chief Accountant of the Southern Section shall every ten days furnish to the 
 Managing Director for the information of the Engineer-in-Chief a statement of earnings 
 from all sources. The conditions for drawing on the earnings so deposited with the Hong- 
 kong and Shanghai Bank will be the same as those provided in Clause 5 above. 
 
 7. In the event of the Chinese Government having bona fide Chinese funds at their 
 disposal for carrying on the work of construction, they may at any time utilise such funds 
 for repaying with interest any advances as may then have been made, and thereby render 
 the arrangements made under this letter of agreement null and void. 
 
 8. The terms and conditions of this Letter of Agreement will forthwith be communi- 
 cated by the Ministry of Communications to the Waichiaopu and will by the Waichiaopu be 
 officially communicated to the Minister for Great Britain in Peking. 
 
 This letter is in duplicate in English and Chinese and it is understood that in the 
 event of any doubt arising regarding the interpretation of its terms the English text shall 
 rule. 
 
 I have the honour to request that you will be good enough to signify your acceptance 
 and confirmation of the arrangements and conditions herein contained by affixing your 
 signature to the statement to this effect below, retaining one copy of the letter so executed 
 for your files and returning the other to the undersigned. 
 I have the honour to be, Sir, 
 
 Your obedient servant, 
 (S'd) S. F. Mayers, 
 
 For Chinese Central Railways Limited. 
 
 I hereby accept and confirm on behalf of the Tientsin-Pukow Railway Administration 
 the arrangements and conditions herein contained. 
 
 CHINESE CENTRAL RAILWAYS LnilTED. 
 
 Peking, August 28th, 1912. 
 The Honourable Mr. Cliu Chi-Ckien, 
 
 Minister of Communications, Peking. 
 Sir, 
 
 With reference to the Letter of Agreement of today's date for advances up to £300.000 
 from Chinese Central Railways Limited to the Tientsin Pukow Railway, Southern Section, 
 to be repaid on or before March 31st 1913, and in consideration for which the unissued 
 bonds of the Tientsin Pukow Railway Supplementary Loan (London issue) are hypothecated 
 as security it is understood that if it is possible before 31st March 1913 to issue the balance 
 of the loan, the Chinese Central Railways Limited will be duly authorised to take the 
 necessary steps as on the occasions of previous issues: should no issue appear possible, 
 Chinese Central Railways Limited will notify the Railway Administration one month prior 
 to the date upon which these advances are due for repayment, and if the Railway Adminis- 
 tration is unable to repay all advances at due date it is understood that Chinese Central 
 Railways Limited shall have the option to purchase at 88 sufficient bonds to repay these and 
 previous advances. This price of £88 for each £100 bond is based on the present market 
 price less interest and commission. 
 
 I ?hall be glad if you will favour me with a reply granting this option to Chinese Cen- 
 tral Railways Limited, and assuring them that in the event of its being exercised the Chinese 
 Alinister in London will be called upon to cooperate in taking the steps which would be 
 necessary to obtain quotation of these bonds on the London Stock Exchange. 
 I have the honour to be. 
 Sir, 
 
 Your obedient servant, 
 {S'd) S. F. Mayers, 
 
 For Chinese Central Railways Limited. 
 
 In connection with this agreement see also the agreement of January 13, 1908 (No. 
 1908/1, ante).
 
 g28 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1910/5. 
 
 FRANCE (Banque de I'Indo-Chine), GERMANY (Deutsch-Chinesische Eisen- 
 bahn Gesellschaft), GREAT BRITAIN (British & Chinese Corporation, 
 Limited, and Chinese Central Railways, Limited) AND UNITED STATES 
 (American Group). 
 
 Agreement concerning loans for railway purposes.*' — November 10, 1910. 
 
 MEMORANDUM OF AGREEMENT made the Tenth Day of November One 
 thousand nine hundred and ten Between THE BRITISH AND CHINESE 
 CORPORATION LIMITED having its registered office at 3 Lombard 
 Street in the City of London (hereinafter called "the Corporation") of 
 the first part CHINESE CENTRAL RAILWAYS LIMITED having its 
 registered office at 110 Cannon Street in the said City (hereinafter called 
 "the Central Company") of the second part THE BANQUE DE LTNDO 
 CHINE having its office at 15bis Rue Laffitte Paris (hereinafter called 
 "the French Bank") of the third part THE DEUTSCH-CHINESISCHE 
 EISENBAHN GESELLSCHAFT m. b. H. having its office at 31 Unter 
 den Linden Berlin (hereinafter called "the German Company") of the 
 fourth part MESSRS. J. P. MORGAN & CO., MESSRS. KUHN, LOEB 
 & CO., THE FIRST NATIONAL BANK and THE NATIONAL CITY 
 BANK all of New York (hereinafter called "the American Group") 
 acting as to the United Kingdom by Messrs. Morgan Grenfell & Co. of 
 22 Old Broad Street in the City of London as to Germany by Messrs. 
 M. M. Warburg & Co. of Hamburg and as to France by Messrs. Morgan 
 Harjes & Co. of Paris and Messrs. M. M. Warburg & Co. (all hereinafter 
 collectively called " the American Agents ") of the fifth part. 
 WHEREAS the parties hereto have expressed their willingness to enter 
 into a general understanding for the purpose of governing their action in 
 connection with the negotiations for and making to the Chinese Empire 
 loans for railway purposes NOW IT IS HEREBY AGREED by and 
 between the parties hereto as follows : — 
 
 1. — IN the matter of this Agreement the French Bank is acting on behalf of 
 the French Syndicate for Chinese business consisting of the parties whose names 
 are set forth in the First Schedule hereto, the German Company is acting on 
 behalf of the German Syndicate for Chinese business consisting of the parties 
 whose names are set forth in the Second Schedule hereto, and the American 
 Agents are acting on behalf of the American Group. The French Bank the 
 Germany Company and the American Group reserve to themselves the right of 
 increasing or reducing in each special case the number of parties interested in 
 the French and German Syndicates and the American Group respectively and 
 a similar right is reserved to the Corporation but so that in any such case any 
 party dropping out in any special case shall still remain bound by the restrictive 
 
 * In connection with this agreement see also the Anglo-German bankers' agreement of 
 September 2, 1898 (see p. 266, ante), Anglo-French bankers' agreement of October 2, 
 1905 (No. 1905/11, ante), and Hukuang Railway loan agreement of May 20, 1911 (No. 
 1911/5, post). See Note to this document, post, p. 833.
 
 NUMBER 1910/5: NOVEMBER 10, 1910 829 
 
 provisions hereof, and any party coming in in any special case shall become subject 
 to the restrictive provisions hereof. 
 
 2. — THIS Agreement relates to all loans and advances for railway purposes 
 to be floated out of the Chinese Empire which may be made with the Chinese 
 Imperial Government and/or with Government Departments and Companies 
 having Chinese Imperial or Provincial Government guarantees but does not 
 relate to loans to be floated within the Chinese Empire nor to any loans in con- 
 nection with the Hankow-Canton and Hankow-Chengtu Railways. 
 
 3. — ANY business of the kind hereinbefore defined to which the Agreement 
 relates which may be offered to any of the contracting parties of the first third 
 fourth and fifth parts ( hereinafter jointly referred to as " the lenders ") must be 
 dealt with jointly by them in accordance with the stipulations of this Agreement. 
 
 4. — AS regards joint action in respect of financial operations for railway 
 purposes not having such guarantees special Agreements will have to be made 
 in each separate case. 
 
 5. — THIS Agreement is made on the principle of equality namely equal terms 
 in every respect between the lenders and each of the lenders enters into this 
 Agreement for their respective groups and shall take an equal share in all opera- 
 tions and jointly sign all contracts except as hereinafter provided and shall bear 
 in equal shares all charges in connection with any business (except stamp duties 
 and any charges of and connected with the realisation by each of the lenders in 
 their respective markets of their participation in the operations) and conclude 
 all contracts with equal rights and obligations as between themselves PROVIDED 
 ALWAYS that in cases where the introduction of third parties is calculated to 
 prejudice the success of the negotiations any business falling within the scope of 
 this Agreement may be entertained and negotiations entered upon by any one of 
 the lenders alone but with notice to be given to the other lenders as soon as possi- 
 ble and should it appear in the course of such negotiations that the conditions 
 imposed upon the business preclude joint negotiations and/or joint signatures by 
 the lenders in terms of this Agreement the negotiating party may if mutually 
 agreed upon by the lenders conclude the negotiations and sign the Agreement alone 
 but upon the terms of the other lenders being entitled to all rights or participation 
 under this Agreement other than those involving or arising from joint negotiation 
 and joint signature but it is understood that all the lenders will use their best 
 endeavors to obtain the joint signatures to any contract except where by mutual 
 consent of those lenders who are prepared to participate this is found to be 
 impracticable when the party signing the contract shall by the insertion of a 
 special clause or execution of a separate declaration of trust or otherwise ensure 
 to the other lenders the same rights as regards the taking over the issue and 
 service of the loan which it has obtained under the contract for itself and also 
 the authority required for obtaining official quotations in the respective markets 
 of the said other parties. 
 
 6. — ALL contracts shall so far as possible be made so as not to impose joint 
 liability on the lenders, but each of the parties to the said contracts shall severally 
 liquidate its own engagements and liabilities towards the party of the other side 
 in China. The parties to the said contracts will so far as possible come to an
 
 830 CHINA TREATIES AND AGREEMENTS 
 
 understanding with regard to the reahzation of the operations but so that such 
 reaHzation in whatever manner this may take place shall be for the separate bene- 
 fit of each of the lenders as regards their respective participations therein. 
 
 7. — IN the event of any of the lenders declining a participation in any busi- 
 ness proposed either at the outset or at any time during the course of the negotia- 
 tions the other lenders shall have the option of taking up and carrying out the 
 business either jointly or if only one takes up the business separately on their 
 or its respective accounts and in their or its respective markets without prejudice 
 to the provisions of this Agreement. 
 
 8. — THE lenders will endeavor to secure in their respective markets a suc- 
 cessful issue of any loan the subject-matter of contracts entered into with them 
 jointly or in which they may be jointly interested. 
 
 9. — SUBJECT to the provisions of the Agreement referred to in paragraph 
 14 hereof any participation given in its own market by any one of the lenders 
 shall be for its own account only but any participations given by and in the 
 mutual interest of all the lenders who may be parties to or interested in any 
 contract to any banks or banking firms outside of England France Germany and 
 America respectively shall be borne in equal shares by the parties interested. 
 
 10. — ALL offers shall be made to the Chinese Authorities and loans accepted 
 on terms of control which involve as a minimum : 
 
 (A) The appointment of Engineers in Chief to be approved by the lenders or 
 lender taking a participation in the business and the Chinese to be required to 
 make appointments approved by such lenders or lender alternately according to 
 the order of the parties to this Agreement except where the interest of any other 
 group can be shown to predominate and in that case the Engineer shall be 
 appointed by that Group. 
 
 (B) Until actually required for construction proceeds of Loans to remain 
 under the control of such lenders on terms not less favorable to the lenders than 
 are contained in the Hukuang Loan Agreement initialled Sixth June One Thou- 
 sand nine hundred and nine and in the corresponding official despatch.f 
 
 (C) Provision for proper account keeping and financial control under the 
 direction of a Chief Accountant to be approved by such lenders or lender. 
 
 11. — THE orders for materials required for any railway as far as possible 
 shall be equally divided between the lenders or lender participating and the com- 
 mission receivable from the Chinese on such purchases after provision for the 
 expenses of earning such commission is to be shared between the lenders or 
 lender participating equally or as may be arranged. 
 
 12. — THE Central Company consents to be bound by the terms of this 
 Agreement to the extent of giving effect thereto by granting to each of them the 
 German Company and the American group one fourth interest in all loans for rail- 
 way purposes obtained by it in connection with any part of the Chinese Empire 
 north of the Yangtse River and the German Company and the American Group 
 each agrees to grant to the other of them one-fourth interest in any loans for 
 Railway purposes secured by it in the said area and also agrees to grant to the 
 
 t Quoted in note to final agreement for Hukuang Railway Loan, May 20, 1911 
 (No. 1911/5), p. 880, post.
 
 NUMBER 1910/5: NOVEMBER 10, 1910 831 
 
 Central Company one-half interest in any loans for railway purposes secured by 
 it in the said area and the granting of such interests to the Central Company is 
 hereby accepted by the Corporation and the French Bank as in satisfaction of all 
 rights under this Agreement to participation in such loans. The Central Company 
 not being comprised in the lenders as per Article 3 shall in their negotiations with 
 the Chinese Authorities nevertheless be bound by Clause 10 of the present 
 Agreement. 
 
 13. — IT is distinctly understood that by the foregoing Articles 3 and 12 the 
 German Company and the American Group shall each participate in any business 
 of the kind defined in Article 2 of this Agreement to the extent of one-fourth 
 share. 
 
 14. — SAVE as herein provided and as provided in an Agreement between the 
 Hong Kong and Shanghai Banking Corporation the Deutsch-Asiatische Bank the 
 Banque de ITndo Chine and the American Group proposed to be entered into 
 immediately after this Agreement no business of the kind falling within the 
 scope of this Agreement shall be concluded or entered into either directly or 
 indirectly by any of the parties hereto or by any of those whom they respectively 
 represent without the consent of the others. 
 
 15. — WHERE reference is made in this Agreement to the lenders or lender 
 taking a participation in any business such or any similar expression shall be 
 deemed to include the American Group unless such group shall have declined its 
 participation and notwithstanding that its participation is being issued on its 
 account by one or more of the other parties to the Agreement mentioned in the 
 last preceding clause hereof. 
 
 16. — THE present Agreement shall remain in force until the Thirty-first 
 December One thousand nine hundred and twelve and unless determined on that 
 day by twelve months' previous notice given by any one of the parties to the 
 others then until six months' notice shall be given by any one of the parties 
 such notice to expire on the Thirtieth June or Thirty-first December in any 
 year. Provided nevertheless that if during the continuance of the present agree- 
 ment the Agreement of the Thirtieth June One thousand eight hundred and 
 ninety-eight niade between the Corporation and the Hong Kong and Shanghai 
 Banking Corporation the terms of which have been communicated to the other 
 parties hereto shall be determined by that Bank in pursuance of the power therein 
 contained then the present Agreement shall forthwith upon such determination 
 also cease and determine. Notwithstanding the termination of the present 
 Agreement all contracts made hereunder shall continue in force for their due 
 fulfilment until completely carried out. 
 
 IN WITNESS whereof the duly authorized representatives of the respective 
 parties hereto have set their hands the day and year first above written.
 
 832 CHINA TREATIES AND AGREEMENTS 
 
 FIRST SCHEDULE 
 
 Banque de I'lndo Chine Paris 
 
 Banque de Paris et des Pays-Bas " 
 
 Comptoir National d'Escompte de Paris " 
 
 Credit Lyonnais " 
 
 Societe Generale pour favoriser le developpement du Commerce 
 
 et de ITndustrie en France " 
 
 Societe Generale de Credit Industriel & Commercial " 
 
 Banque de I'Union Parisienne " 
 
 Banque Frangaise pour le Commerce et I'lndustrie " 
 
 SECOND SCHEDULE 
 
 Direction der Disconto-Gesellschaft Berlin 
 
 S. Bleichroder 
 
 Deutsche Bank " 
 
 Berliner Handels-Gesellschaft '' 
 
 Bank f iir Handel & Industrie " 
 
 Mendelssohn & Co 
 
 Dresdner Bank " 
 
 A. Schaaffhausen'scher Bankverein " 
 
 Nationalbank f iir Deutschland " 
 
 Deutsch-Asiatische Bank Shanghai 
 
 Jacob S. H. Stern Frankfurt a/M. 
 
 Sal. Oppenheim jr. & Cie Koln 
 
 Norddeutsche Bank in Hamburg Hamburg 
 
 L. Behrens & Sohne " 
 
 Bayerische Hypotheken-und Wechselbank Miinchen 
 
 For and on behalf of 
 
 THE BRITISH AND CHINESE CORPORATION LIMITED 
 
 W. Keswick 
 
 C. S. Addis. 
 For and on behalf of CHINESE CENTRAL RAILWAYS LIMITED 
 
 Carl Meyer 
 
 G. Jamieson. 
 For and on behalf of THE BANQUE DE LTNDO CHINE 
 
 S. Simon 
 
 E. Ullmann. 
 For and on behalf of THE DEUTSCH-CHINESISCHE EISENBAHN 
 
 GESELLSCHAFT m. b. H. 
 
 Fr. Urbig 
 
 E. Rehders. 
 For and on behalf of 
 
 Messrs. J. P. MORGAN & CO., Messrs. KUHN, LOEB & CO., THE 
 FIRST NATIONAL BANK and THE NATIONAL CITY BANK, 
 
 Morgan, Grenfell & Co. 
 
 M. M. Warburg & Co. 
 
 Morgan Harjes & Co.
 
 NUMBER 1910/5: NOVEMBER 10, 1910: NOTE 833 
 
 Note. 
 
 Under date of July 6, 1909, the British, French and German parties to this agreement 
 had entered into a memorandum of agreement respecting loans to the Chinese Govern- 
 ment for railway purposes, in the following terms : 
 
 Memorandum of agreement among British, French and German Groups in regard to 
 
 Railway Loans, July 6, 1909. 
 
 MEMORANDUM OF AGREEMENT made the Sixth day of July, One thousand nine 
 hundred and nine Between THE BRITISH AND CHINESE CORPORATION, LIM- 
 ITED, having its registered office at 3 Lombard Street in the City of London (hereinafter 
 called -the Corporation") of the first part CHINESE CENTRAL RAILWAYS, LIM- 
 ITED, having its registered office at 110 Cannon Street in the said City (hereinafter called 
 "the Central Company") of the second part THE BANQUE DE LTNDO CHINE, 
 having its off.ce at ISbis Rue Laffitte, Paris (hereinafter called "the French Bank") of 
 the third part and THE DEUTSCH-CHINESISCHE EISENBAHN GESELLSCHAFT 
 m.b.H. having its office at 31 Unter den Linden, Berlin (hereinafter called " the German 
 Company") of the fourth part WHEREAS the parties hereto have expressed their will- 
 ingness to enter into a general Anglo-Franco-German understanding for the purpose of 
 governing their action in connection with the negotiations for and making to the Chinese 
 Empire loans for railway purposes NOW IT IS HEREBY AGREED by and between the 
 parties hereto as follows : 
 
 1. — IN the matter of this Agreement the French Bank is acting on behalf of the French 
 Syndicate for Chinese business consisting of the parties whose names are set forth in the 
 First Schedule hereto and the German Company is acting on behalf of the German Syndi- 
 cate for Chinese business consisting of the parties whose names are set forth in the 
 Second Schedule hereto. The French Bank and the German Company reserve to them- 
 selves the right of increasing or reducing in each special case the number of parties inter- 
 ested in the French and German Syndicates respectively and a similar right is reserved 
 to the Corporation, but so that in any such case any party dropping out in any special case 
 shall still remain bound by the restrictive provisions hereof and any party coming in in 
 any special case shall become subject to the restrictive provisions hereof. 
 
 2. — THIS Agreement relates to all loans and advances for railway purposes to be 
 floated out of the Chinese Empire which may be made with the Chinese Imperial Gov- 
 ernment and/or with Government Departments and Companies having Chinese Imperial or 
 Provincial Government guarantees but does not relate to loans to be floated within the 
 Chinese Empire nor to any loans in connection with the Hankow Canton and Hankow 
 Chengtu Railways. 
 
 3. — ANY business of the kind hereinbefore defined to which this Agreement relates 
 which may be offered to either of the contracting parties of the first, third ■ and fourth 
 parts (hereinafter jointly referred as "the lenders") must be dealt with jointly by them 
 in accordance with the stipulations of this Agreement. 
 
 4. — AS regards joint action in respect of financial operations for railway purposes 
 not having such guarantees, special Agreements will have to be made in each separate case. 
 
 5. — THIS Agreement is made on the principle of equality namely equal terms in every 
 respect between the lenders and each of the lenders enters into this Agreement for their 
 respective groups and shall take an equal share in all operations and jointly sign all con- 
 tracts except as hereinafter provided and shall bear in equal shares all charges in connec- 
 tion with any business (except stamp duties and any charges of and connected with the 
 realisation by each of the lenders in their respective markets of their participation in the 
 operations) and conclude all contracts with equal rights and obligations as between them- 
 selves PROVIDED ALWAYS that in cases where the introduction of third parties is 
 calculated to prejudice the success of the negotiations any business falling within the scope 
 of this Agreement may be entertained and negotiations entered upon by either of the 
 lenders alone with or without notice to the other lenders and should it appear in the course 
 of such negotiations that the conditions imposed upon the business preclude joint negotia- 
 tions and/or joint signatures by the lenders in terms of this agreement the negotiating 
 party may conclude the negotiations and sign the agreement alone but upon the terms of 
 the other lenders being entitled to all rights or participation under this Agreement other 
 than those involving or arising from joint negotiation and joint signature but it is under- 
 stood that all the lenders will use their best endeavours to obtain the joint signatures to 
 any contract wherever possible except where for any reasons this is found to be imprac- 
 ticable when the party signing the contract shall by the insertion of a special clause or 
 execution of a separate declaration of trust or otherwise ensure to the other lenders the 
 same rights as regards the taking over the issue and service of the loan which it has 
 obtained under the contract for itself and also the authority required for obtaining official 
 quotations in the respective .markets of the said other parties. 
 
 6. — ALL contracts shall so far as possible be made so as not to impose joint liability
 
 834 CHINA TREATIES AND AGREEMENTS 
 
 on the lenders but each of the parties to the said contracts shall severally liquidate its own 
 engagements and liabilities towards the party of the other side in China. The parties to 
 the said contracts will so far as possible come to an understanding with regard to the 
 realisation of the operations, but so that such realisation in whatever manner this may take 
 place shall be for the separate benefit of each of the lenders as regards their respective 
 participations therein. 
 
 7. — IN the event of either of the lenders declining a participation in any business pro- 
 posed either at the outset or at any time during the course of the negotiations the other 
 lenders shall have the option of taking up and carrying out the business either jointly or 
 if only one takes up the business separately on their or its respective accounts without 
 prejudice to the provisions of this Agreement. 
 
 8. — THE lenders will endeavour to secure in their respective markets a successful 
 issue of any loan the subject-matter of contracts entered into with them jointly or in which 
 they may be jointly interested. 
 
 9. — ANY participation given in its own market by any one of the lenders shall be for 
 its own account only but any participations given by and in the mutual interest of all the 
 lenders who may be parties to or interested in any contract to any banks or banking firms 
 outside of England, France and Germany, respectively, shall be borne in equal shares by 
 the parties interested. 
 
 10. — ALL offers shall be made to the Chinese Authorities and loans accepted on terms 
 of control which involve as a minimum : 
 
 (a) The appointment of Engineers in Chief to be approved by the lenders or lender 
 
 taking a participation in the business and the Chinese to be required to make 
 appointments approved by such lenders or lender alternately according to the 
 order of the parties to this Agreement except where the interest of any other 
 group can be shown to predominate and in that case the Engineer shall be 
 appointed by that group. 
 
 (b) Until actually required for construction proceeds of Loans to remain under the 
 
 control of such lenders on terms not less favourable to the lenders than are 
 contained in the Hukuang Loan Agreement initialled Sixth June, One thou- 
 sand nine hundred and nine, and in the corresponding official despatch. 
 
 (c) Provision for proper account keeping and financial control under the direction of 
 
 a Chief Accountant to be approved by such lenders or lender. 
 
 n. — THE orders for materials required for any railway as far as possible shall be 
 equally divided between the lenders or lender participating and the commission receivable 
 from the Chinese on such purchases after provision for the expenses of earning such com- 
 mission is to be shared between the lenders or lender participating equally or as may be 
 arranged. 
 
 12. — THE Central Company consents to be bound by the terms of this Agreement to 
 the extent of giving effect thereto by granting to the German Company one-third interest 
 in all loans for railway purposes obtained by it in connection with any part of the Chinese 
 Empire north of the Yangtse River and the German Company agrees to grant to the Centra! 
 Company two-thirds interest in any loans for railway purposes secured by the German 
 Company in the said area, and the granting of such interest to the Central Company is 
 hereby accepted by the Corporation and the French Bank as in satisfaction of all rights 
 under this Agreement to participation in such loans. The Central Company not being 
 comprised in the lenders as per Article 3 shall in their negotiations with the Chinese 
 Authorities nevertheless be bound by Clause 10 of the present Agreement. 
 
 13. — It is distinctly understood that by the foregoing Articles 3 and 12 the German 
 Company shall participate in any business of the kind defined in Article 2 of this Agree- 
 ment to the extent of one-third share. 
 
 14. — Save as herein provided and as provided in an Agreement between the Hong 
 Kong and Shanghai Banking Corporation the Deutsch-Asiatische Bank and the Banque 
 de rindo-Chine proposed to be entered into immediately after this Agreement no business 
 of the kind falling within the scope of this Agreement shall be concluded or entered into 
 either directly or indirectly by any of the parties hereto or by any of those whom they 
 respectively represent without the consent of the others. 
 
 IS. — THE present Agreement shall remain in force until the Thirty-first December, 
 One thousand nine hundred and twelve, and unless determined on that day by twelve 
 months' previous notice given by any one of the parties to the others then until six 
 months' notice shall be given by any one of the parties such notice to expire on 
 the Thirtieth June or Thirty-first December in any year. Provided nevertheless that if 
 during the continuance of the present Agreement the Agreement of the Thirtieth June, 
 One thousand eight hundred and ninety-eight, made between the Corporation and the Hong 
 Kong and Shanghai Banking Corporation the terms of which have been communicated to 
 the other parties hereto shall be determined by that Bank in pursuance of the power therein 
 contained then the present Agreement shall forthwith upon such determination also cease 
 and determine. Notwithstanding the termination of the present Agreement all contracts
 
 NUMBER 1911/1: MARCH 24, 1911 835 
 
 made hereunder shall continue in force for their due fulfilment until completely carried out. 
 IN WITNESS whereof the duly authorised representatives of the respective parties 
 hereto have set their hands the day and year first above written. 
 
 FIRST SCHEDULE. 
 
 Banque de I'lndo-Chine, Paris. 
 
 Banque de Paris et des Pays-Bas, 
 
 Comptoir National d'Escompte de Paris, 
 
 Credit Lyonnais, 
 
 Societe Generale pour favoriser Ic developpement du Commerce et de ITn- 
 
 dustrie en France, Paris. 
 
 Societe Generale de Credit Industriel & Commercial, " 
 Banque de I'Union Parisienne. 
 Banque Franqaise pour le Commerce et ITndustrie 
 
 SECOND SCHEDULE. 
 
 Direction der Disconto-Gesellschaft, Berlin. 
 
 S. Bleichroder, 
 
 Deutsche Bank, 
 
 Berliner Handels-Gesellschaft, 
 
 Bank fur Handel & Industrie, " 
 
 Mendelssohn & Co., 
 
 Dresdner Bank, 
 
 A. Schaaffhausen'scher Bankverein, 
 
 Nationalbank fiir Deutschland, " 
 
 Deutsch-Asiatische Bank, Shanghai. 
 
 Jacob S. H. Stern, Frankfurt a/M. 
 
 Sal. Oppenheim, jr. & Cie, Koln. 
 
 Norddeutsche Bank in Hamburg, Hamburg. 
 
 L. Behrens & Sohne, 
 
 Bayerische Hypotheken-und Wechselbank, Miinchen. 
 For and on behalf of The British and Chinese Corporation, Limited, 
 
 W. KESWICK. C. S. ADDIS. 
 
 For and on behalf of Chinese Central Railways, Limited, 
 
 CARL MEYER. G. JAMIESON. 
 
 For and on behalf of The Banque de lTndo-Chine, 
 
 ULLMANN. St. SIMON. 
 
 For and on behalf of The Deutsch-Chinesische Eisenbahn Gesellschaft m.b.H., 
 Fr. URBIG. REHDERS. 
 
 NUMBER 1911/1. 
 
 JAPAN (Yokohama Specie Bank) AND CHINA 
 
 Agreement for the Imperial Chinese Government five per cent raikuay loan of 
 the 3rd year of Hsilan Tung (1911)*— March 24, 1911. 
 
 WHEREAS the Board of Posts and Communications of the Imperial Gov- 
 ernment of China has, for the purpose of redeeming a loan item which has been 
 contracted for and in connection with the Government Railway and is due to 
 
 * Text as printed in Wang, p. 515. 
 
 In connection with this agreement see also the Board of Posts and Communications 
 Loan, and the seven per cent Peking-Hankow Railway redemption Loan, of October 8, 1908 
 (Nos. 1908/12, and 1908/13, ante).
 
 836 CHINA TREATIES AND AGREEMENTS 
 
 another department of the Government, decided to raise a Gold Loan for an 
 amount of ten million yen (Y 10,000,000), this Agreement is now made at Peking 
 on this twenty-fourth day of the second month of the third year of Hsuan Tung, 
 corresponding to the twenty-fourth day of the third month of the forty fourth 
 year of Meiji (March 24, 1911), between 
 
 THE BOARD OF POSTS AND COMMUNICATIONS, hereinafter called 
 the BOARD, representing the Imperial Government of China, of the one part and 
 
 THE YOKOHAMA SPECIE BANK, LIMITED, hereinafter called the 
 BANK, of the other part. 
 
 ARTICLE 1. — The Imperial Government of China hereby authorises the 
 Bank to issue a Five Per Cent. (5%) Gold Loan for an amount of Ten MilHon 
 Yen (Y10,000,000). 
 
 The Loan shall be of the date on which the same is issued to the public 
 and shall be called "The Imperial Chinese Government Five Per Cent. (5%) 
 Railway Loan of the Third Year of Hsuan Tung ". 
 
 ARTICLE 2.— The price of the bonds agreed upon is ninety five per cent 
 (95%) of the nominal face value, that is to say, the Imperial Government of 
 China shall receive ninety five Yen (Y95) for each one hundred Yen (YlOO) 
 bond, and at the time of the repayment of the Loan, which will be made according 
 to the schedule attached to this Agreement, the bondholders shall receive the 
 face value of the bonds in full, that is to say, one hundred yen for each bond. 
 
 ARTICLE 3. — The rate of interest for the Loan shall be five per cent (5%) 
 per annum on the nominal principal, that is to say, five yen (Y5) per every one 
 hundred yen (YlOO) face value, and the interest shall be paid to the bondholders 
 half yearly through the Bank. The interest shall run from the date on which 
 amounts of the proceeds of the Loan shall have been placed to the credit account 
 of the Board with and in the Bank and the same notified to the Board, and 
 shall be paid by the Imperial Government of China, in the first place, 
 out of the revenue of the Peking-Hankow Railway (after deducting the amounts 
 required for payment of the principal and interest of the Chinese Imperial 
 Five Per Cent. Gold Loan of 1908 and of the Peking-Hankow Railway Redemp- 
 tion Loan of the same year),t but should it be found that the above revenue is 
 not sufficient to meet the amount required, then out of such revenue as the 
 Imperial Government of China may deem fit to use for the purpose. The said 
 payment shall be made to the Bank in half yearly instalments according to the 
 amounts specified in the Schedule attached to this Agreement, and ten days 
 before their due dates. 
 
 The terms mentioned herein and elsewhere in this Agreement shall be 
 calculated according to the Solar Calendar. 
 
 ARTICLE 4. — The term of the Loan shall be twenty five (25) years. Re- 
 payment of the principal shall commence, by annual drawings, after the expiry 
 of ten years from the date of the Loan and shall be made by yearly amortisation 
 to the Bank, by the Imperial Government of China, in the first place, out of 
 the revenue of the Peking-Hankow Railway (after deducting the amounts 
 required for payment of the principal and interest of the Chinese Imperial Five 
 
 t Nos. 1908/12 and 1908/13, ante.
 
 ■NUMBER 1911/1: MARCH 24, 1911 837 
 
 Per Cent. Gold Loan of 1908 and of the Peking-Hankow Railway Redemption 
 Loan of the same year), but should it be found that the above revenue is not 
 sufficient to meet the amount required, then out of such revenue as the Imperial 
 Government of China may deem fit to use for the purpose, according to the 
 amounts specified in the Schedule attached to this Agreement, and ten days before 
 their due dates. 
 
 ARTICLE 5. — If, at any time after the lapse of ten (10) years from the 
 date of the issue of this Loan, the Imperial Government of China should desire 
 to redeem the whole outstanding amount of the Loan, or any part thereof, 
 not yet due for repayment according to the schedule of repayment hereto attached, 
 they may do so until the end of the twentieth year by payment of a premium 
 of two and one half per cent (2^%) on the face value of the bonds, that is to 
 say, by payment of one hundred and two and a half yen (Y102^) for each 
 one hundred yen (YlOO) bond, and after the twentieth year at par, but in each 
 and every case of such extra redemption, the Imperial Government of China 
 through the Board shall give six (6) months prior notice to the Bank, and each 
 redemption shall be effected by additional drawings of bonds to take place on 
 the date of an ordinary drawing. 
 
 ARTICLE 6. — The Bank having [been?] appointed Agent for the service 
 of the Loan, the payments due for amortisation and interest, referred to in Articles 
 3 and 4, shall be made in accordance with the amounts of the Schedule attached 
 to this Agreement as fixed by Articles 3 and 4 to the Bank, by the Board, who 
 shall hand to the said Bank in Shanghai or in Tientsin funds in Shanghai or in 
 Tientsin Sycee or in new national currency after its circulation, sufficient to 
 meet such payments in Gold in Japan, exchange for which shall be settled with 
 the said Bank on the basis of exchange rate of the same day, the Board having, 
 however, the option of settling exchange with the Bank at any date or dates 
 within six (6) months previous to any due date for the payment of interest and 
 the repayment of principal. 1 hese payments may, however, be made in gold, if 
 the Imperial Government of China should happen to have gold funds " bona 
 fide " at their disposal in Japan, Europe or/and America, not remitted from 
 China for the purpose, and desire so to use them. 
 
 In reimbursement of the expenses connected with the payment of interest 
 and the repayment of principal of the Loan, the Bank will receive a commission 
 of two and a half yen (Y2^) per every one thousand yen (Y1,000), or two and 
 one half per mill (21/2O/OO), on the annual Loan service. 
 
 ARTICLE 7. — The Imperial Government of China hereby engages that the 
 interest and principal of this Loan shall duly be paid in full, and should the 
 revenue of the Peking-Hankow Railway not be sufficient to provide for the due 
 and full payment of interest and repayment of principal, the Board shall memo- 
 rialise the Throne and the Imperial Government of China will thereupon make 
 arrangement to ensure that the amount of deficiency shall be met from other 
 sources and handed over to the Bank on the date upon which funds are required, 
 to complete full payment of interest and repayment of principal. 
 
 ARTICLE 8. — This Loan is secured by the first charge, free from all 
 encumbrances, upon the revenue of the Board of Finance (Tuchi Pu) under
 
 838 CHINA TREATIES AND AGREEMENTS 
 
 the item of the " Tribute-Grain Conversion Tax " of the Province of Kiangsu 
 in the Empire of China, to the amount of one milHon Kuping Taels (K. P. 
 Tls. 1,000,000). 
 
 In the event of default of payment of instahnent of the principal and/or 
 interest of this Loan on due date, the Imperial Government of China will instruct 
 the proper authorities in control of the said revenue to hand it over to the Bank 
 in the interests of bondholders. 
 
 It is agreed that so long as this Loan or any part thereof shall remain 
 unredeemed, the same shall have priority, both as regards principal and interest, 
 over all future loans, charges and/or mortgages charged on the above mentioned 
 revenue, and it is further agreed that any and all future loans, charges and/or 
 mortgages on the said revenue shall be made subject to this Loan, and it shall be 
 so expressed in every agreement for such future loan, charge and/or mortgage, 
 and that previous to conclusion of any such agreement express notice thereof shall 
 be given to the Bank. 
 
 ARTICLE 9. — The Bank is hereby authorised to issue to the subscribers to 
 the Loan bonds for the total amount of the Loan. The form of the bonds shall 
 be settled by the Bank in consultation with the Chinese Minister in Tokyo. The 
 Bonds shall be engraved in Japanese and Chinese or in Chinese, Japanese and 
 English according as found convenient; they shall, besides bearing facsimile of 
 the signature of the President of the Board and of his seal of Office, also bear 
 facsimile of the signature of the Chinese Minister in Tokyo and of his seal 
 of Office, latter particularly as a proof that the issue and sale of the Bonds are 
 duly authorised by and binding upon, the Imperial Government of China, and 
 the representatives of the Bank in Japan shall countersign the Bonds as agents 
 for the issue of the loan. 
 
 In the event of bonds issued for this Loan being lost, stolen or destroyed, 
 the Bank shall thereupon immediately notify the Board and the Chinese Minister 
 in Tokyo, who shall authorise the Bank to insert advertisement in the public 
 news-papers notifying that payment of the same has been stopped and to take 
 such other steps as may appear advisable or necessary according to the laws and 
 customs of the country concerned. 
 
 All expenses to be incurred under this article shall be borne by the Bank. 
 
 ARTICLE 10. — All bonds and coupons and payments made and received in 
 connection with the service of this loan shall be exempt from all Chinese taxes 
 and imposts during the currency of this loan. 
 
 ARTICLE 11. — All details necessary for the Prospectus or connected with 
 payment of the interest and repayment of the principal of this loan, not herein 
 explicitly provided for, shall be left to the arrangement of the Bank in consultation 
 with the Chinese Minister in Tokyo. 
 
 The Bank is hereby authorised to issue the Prospectus of the loan as soon 
 as possible after the signature of this Agreement, and the Imperial Government 
 of China will instruct the Chinese IMinister in Tokyo to sign the Prospectus of 
 the Loan, if deemed necessary, and to co-operate with the Bank in any matters 
 requiring conjoint action. 
 
 ARTICLE 12. — The Loan shall be issued by the Bank to the Public
 
 NUMBER 1911/1: MARCH 24, 1911 839 
 
 in one series as soon as possible after the signature of this Agreement, and after 
 issue of the Loan, amounts of the proceeds of the Loan received shall be notified 
 to the Board, and shall be placed to the credit account of the Board with and in 
 the Bank to the disposal of the Board. 
 
 The above funds may be transferred, at the request of the Board from time 
 to time, either to China or any other country or countries, or may be deposited 
 temporarily in Japan to earn interest, such transactions being always effected 
 through the Bank. 
 
 ARTICLE 13. — The Bank agrees to advance to the Board within one 
 month after and from the date of signing this Agreement a sum not exceeding two 
 million yen (Y2,000,000), for the service of which interest at the rate of six 
 per cent (6%) per annum shall be paid commencing from the date of such 
 advance, and it is further agreed and understood that repayment of the sum so 
 advanced with the interest accrued thereon shall be made in full and at once out 
 of the proceeds of the first instalment of subscriptions to this Loan. 
 
 All transactions connected with transferring, depositing, or disposal of this 
 fund shall be done according to the second clause of Article 12 of this Agreement. 
 
 ARTICLE 14. — This Agreement is signed by the President of the Board 
 of Posts and Communications under the authority of an Imperial Edict, dated 
 the twenty-third day of the second month of the third year of Hsuan Tung, 
 corresponding to the twenty-third day of the third month of the forty fourth 
 year of Meiji (March 23, 1911), which will be officially communicated by 
 the Waiwupu to the Minister for Japan in Peking. 
 
 ARTICLE 15. — Five sets of this Agreement are executed in English, 
 Chinese and Japanese, three sets to be retained by the Imperial Government of 
 China and two by the Bank. In the event of any doubt arising as to the interpre- 
 tation of the contract the English text shall rule. 
 
 SIGNED AT PEKING by the contracting parties this twenty-fourth day of 
 the second month of the third year of Hsuan Tung corresponding to the twenty- 
 fourth day of the third month of the Forty-fourth Year of Meiji (March 24th, 
 1911). 
 
 [Chinese Signature & Seal] 
 [Japanese Signature & Seal]
 
 840 
 
 CHINA TREATIES AND AGREEMENTS 
 
 SCHEDULE OF PAYMENTS OF INTEREST AND REPAYMENTS OF PRINCIPAL. 
 
 Years 
 
 Principal still 
 Outstanding 
 
 Interest 
 
 Principal 
 Repaid 
 
 Total Principal 
 and Outstanding 
 
 
 Y 
 
 Y 
 
 Y 
 
 Y 
 
 1 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 2 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 3 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 4 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 5 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 6 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 7 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 8 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 9 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500,000.00 
 
 10 
 
 10,000,000.00 
 
 500,000.00 
 
 
 500.000.00 
 
 11 
 
 9,340,000.00 
 
 500,000.00 
 
 660,000.00 
 
 1,160,000.00 
 
 12 
 
 8,680,000.00 
 
 467,000.00 
 
 660,000.00 
 
 1,127,000.00 
 
 13 
 
 8,020,000.00 
 
 434,000.00 
 
 660,000.00 
 
 1,094,000.00 
 
 14 
 
 7,360,000.00 
 
 401,000.00 
 
 660,000.00 
 
 1.061,000.00 
 
 IS 
 
 6,700,000.00 
 
 368,000.00 
 
 660,000.00 
 
 1,028,000.00 
 
 16 
 
 6,040,000.00 
 
 335,000.00 
 
 660,000.00 
 
 995,000.00 
 
 17 
 
 5,380,000.00 
 
 302,000.00 
 
 660,000.00 
 
 962,000.00 
 
 18 
 
 4,720,000.00 
 
 269,000.00 
 
 660,000.00 
 
 929,000.00 
 
 19 
 
 4,060,000.00 
 
 236,000.00 
 
 660,000.00 
 
 896,000.00 
 
 20 
 
 3,400,000.00 
 
 203,000.00 
 
 660,000.00 
 
 863,000.00 
 
 21 
 
 2,740,000.00 
 
 170,000.00 
 
 660,000.00 
 
 830,000.00 
 
 22 
 
 2,080,000.00 
 
 137,000.00 
 
 660,000.00 
 
 797,000.00 
 
 23 
 
 1,420,000.00 
 
 104,000.00 
 
 660,000.00 
 
 764,000.00 
 
 24 
 
 760,000.00 
 
 71,000.00 
 
 660,000.00 
 
 731,000.00 
 
 25 
 
 
 38.000.00 
 
 760,000.00 
 
 798,000.00 
 
 
 
 9,035,000.00 
 
 10,000,000.00 
 
 19,035,000.00
 
 NUMBER 1911/2: APRIL 15. 1911 841 
 
 NUMBER 1911/2. 
 
 FRANCE (Banque de I'Indo-Chine), GERIMANY (Deutsch-Asiatische Bank), 
 GREAT BRITAIN (Hongkong & Shanghai Banking Corporation), 
 UNITED STATES (American Group) AND CHINA. 
 
 Chinese currency reform and industrial development loan Agreement* — April 
 
 15, 1911. 
 
 Agreement made between the Board of Finance, acting under imperial edict 
 on behalf of the Imperial Chinese Government, of the one part, and Messrs. J. 
 P. Morgan & Co., Messrs. Kuhn, Loeb & Co., the First National Bank, and the 
 National City Bank, all of New York, constituting the American group, the 
 Hongkong & Shanghai Banking Corporation, the Deutsch-Asiatische Bank, the 
 Banque de ITndo-Chine, hereinafter called the " banks," of the other part, 
 witnesseth, as follows : 
 
 Whereas the Imperial Chinese Government desiring to reform, and to render 
 uniform its currency system in accordance with a program which has been pre- 
 pared, and to undertake certain industrial enterprises in Manchuria, proposes to 
 negotiate a loan for these purposes and to evidence the same by the issue of Imper- 
 ial Chinese Government sinking fund gold bonds, hereinafter called the ** bonds," 
 in an aggregate principal amount not exceeding ten million pounds sterling 
 (£10,000,000) in manner and form as hereinafter set forth; and 
 
 Whereas the preliminary agreement providing for the negotiation of this 
 final agreement for the loan for the purposes above mentioned was duly signed 
 by the Board of Finance with the American group at Peking on the twenty-fifth 
 day of the ninth moon of the second year of Hsuan T'ung, being the 27th day of 
 October, 1910, western calendar, and was subsequently ratified by imperial 
 edict; and 
 
 Whereas the American group being now associated with the Hongkong & 
 Shanghai Banking Corporation, the Deutsch-Asiatische Bank, and the Banque 
 de ITndo-Chine, the Imperial Chinese Government has consented that these 
 banks shall, with the American group, participate in the issue of the loan here- 
 under ; therefore it is agreed as follows : 
 
 Article I. — The preliminary agreement hereinbefore mentioned shall be 
 considered binding only as interpreted by this agreement. 
 
 Article II. — The Imperial Chinese Government authorizes the banks to 
 issue a 5 per cent sinking fund gold loan for an aggregate amount of ten million 
 pounds sterling. The loan shall be of the date on which the bonds are issued to 
 the public, and shall "be called the Imperial Chinese Government 5 per cent 
 currency reform and industrial development sinking fund gold loan of 1911. 
 
 Article III. — The proceeds of the loan shall be used and applied as herein- 
 after determined, for the following purposes : 
 
 * Text as printed by the Department of State. Printed also in China Year Book, 1912, 
 p. 288. See Note to this document, post, p. 851.
 
 842 CHINA TREATIES AND AGREEMENTS 
 
 (a) To provide funds for the reform of, and to render uniform, the 
 Imperial Chinese currency system. 
 
 (b) To provide funds for the promotion and extension of industrial enter- 
 prises in the three Manchurian Provinces. 
 
 Article IV. — This loan shall constitute a direct liability and obligation of 
 the Imperial Chinese Government, which hereby pledges its good faith and 
 credit for the punctual payment of the principal and interest of the loan and 
 for the performance of all the undertakings on its part herein assumed. 
 
 Article V. — All advances made under the terms of sections 4, 5, and 6 of 
 Article VIII hereunder and the payments of interests and the repayments of 
 principal of this loan, and all other amounts required for, or incident to, the 
 service of the loan, shall be and hereby are made a first charge on the following 
 revenues : 
 
 (a) Duties on tobacco and spirits in the three Manchurian Provinces, 
 amounting to one million Kuping taels (K. P. tls. 1,000,000) per annum. 
 
 (b) Production tax in the three Manchurian Provinces, amounting to 
 seven hundred thousand Kuping taels (K. P. tls. 700,000) per annum. 
 
 (c) Consumption tax in the three Manchurian Provinces, amounting to 
 eight hundred thousand Kuping taels (K. P. tls. 800,000) per annum. 
 
 (d) Newly added surtax upon salt of all the Provinces of China (authorized 
 by imperial edict in the fifth moon of the thirty-fourth year of His Imperial 
 Majesty Kuang Hsii), amounting to two million five hundred thousand Kuping 
 taels (K. P. tls. 2,500,000) per annum. 
 
 The revenues above pledged amount to five million Kuping taels (K. P. 
 tls. 5,000,000) per annum. 
 
 2. The above provincial revenues are hereby declared to be free from all 
 other loans, liens, charges or mortgages. 
 
 3. Should the above mentioned revenues be insufficient to meet the payments 
 of interest and repayments of principal and all other charges on due dates, the 
 Imperial Chinese Government will, first from Manchurian and then, if necessary, 
 from other sources, supply the balance required to meet such payments. 
 
 4. So long as the principal and interest of this loan and all other charges 
 are regularly paid there shall be no interference with the revenues herein pledged, 
 but if principal and/or interest be in default at due date, then, after a reasonable 
 period of grace, the revenues above pledged, or such part thereof as may be 
 sufficient to provide and pay the amounts stated shall forthwith be transferred 
 to, and shall be administered by, the Imperial IMaritime Customs for the account 
 and in the interest of the bondholders. 
 
 5. So long as this loan shall remain unredeemed it shall have priority, 
 both as regards principal and interest, by way of a lien or charge upon the 
 above revenues over all future loans, charges or mortgages which may be 
 charged on the aforesaid revenues. No loan, mortgage or other charge shall 
 be raised or created which shall take precedence of, or be on an equality with, 
 this loan, or which shall in any manner lessen or impair its security charged 
 upon the aforesaid revenues ; and any future loan, charge or mortgage charged 
 on the said provincial revenues, shall be made subject to this loan, and it shall
 
 NUMBER 1911/2: APRIL 15, 1911 843 
 
 be so expressed in every agreement for every such future loan, charge or 
 mortgage. 
 
 6. In the event of the Imperial Chinese Government, during the currency 
 of this loan, entering upon definite arrangements for the revision of the customs 
 tariff, accompanied by stipulations for the decrease or abolition of likin, it 
 is hereby agreed on the one hand that such revision shall not be barred by the 
 fact that this loan is secured by the above-named revenues, and on the other 
 hand that the revenues required to provide the security of this loan shall neither 
 be abolished nor decreased, except by previous arrangement with the banks 
 and then only in so far as an equivalent satisfactory to the banks is substituted 
 therefor in the shape of a first lien or charge upon other revenues consequent 
 upon such revision. 
 
 Article VI. — The banks are authorized to issue to the subscribers to the 
 loan, gold bonds for the total amount of the loan for such amounts as shall be 
 determined by the banks. The form and language of the bonds shall be settled 
 by the banks in consultation with the Board of Finance or the Imperial Chinese 
 ministers in Washington, London, Berlin or Paris. 
 
 2. The bonds shall be printed and/or engraved and shall bear the facsimile 
 of the signature of the president of the Imperial Chinese Board of Finance, 
 and of his seal of office, in order to dispense with the necessity of his signing 
 them all in person, and the Imperial Chinese minister in Washington and/or 
 London and /or Berlin, and/or Paris at the option of the banks, shall, previous 
 to the issue of the bonds, put his seal upon each bond, with a facsimile of his 
 signature as a proof that the issue and sale of the bonds are duly authorized 
 by, and binding upon, the Imperial Chinese Government. 
 
 3. The representatives of the banks in New York, London, Berlin and 
 Paris, as the case may be, shall countersign the bonds as agents for the issue of 
 the loan. 
 
 Article VII. — All details necessary for the prospectus of the loan and 
 connected with the payment of interest and repayment of principal of the loan, 
 and with the withdrawing of bonds for redemption, not herein explicitly 
 provided for, shall be left to the arrangement of the banks in consultation 
 with the Imperial Chinese ministers in Washington, London, Berlin and 
 Paris. 
 
 2. The banks are hereby authorized to issue the prospectus of the loan as 
 soon as possible after the fulfillment of the conditions in Article VIII hereunder 
 made precedent to the issue of the loan, and the Imperial Chinese Government 
 will instruct the Imperial Chinese ministers in Washington, London, Berlin and 
 Paris to cooperate with the banks in any matters requiring conjoint action, and 
 to sign the prospectus of the loan. 
 
 Article VIII. — On the date of the signature of this agreement the Board 
 of Finance shall hand to the banks : — 
 
 (a) '* The regulations for the unification of the currency on a silver 
 basis," authorized by imperial edict, hereinafter called the program of currency 
 reform. 
 
 (&) A statement showing in what amounts the proceeds of the loan are to
 
 844 CHINA TREATIES AND AGREEMENTS 
 
 be applied to the various expenditures incident to the operation of the said 
 program. 
 
 (c) A statement specifying the nature of the proposed enterprises in 
 Manchuria and showing in what amounts the allotted portion of the proceeds of 
 this loan is to be applied thereto. 
 
 2. The program and the two statements above referred to shall be handed 
 to the banks on the date of the signature of this agreement. The banks shall 
 be given a period not exceeding six months from the said date for the con- 
 sideration and planning of all matters involved and they shall issue this loan to 
 the public as soon as possible after they shall have notified the Board of Finance 
 that they will make the said program and statements the basis for the issue of 
 bonds hereunder. 
 
 3. The price of the bonds to the Imperial Chinese Government shall be 
 ninety-five per cent (95%) of their nominal value. Subscriptions will be invited 
 by the banks in China, the United States and Europe on equal conditions, 
 preference being given to the application of the Imperial Chinese Government 
 provided such application be made to the banks not less than four days before 
 the issue of the prospectus to the public. Seven days' notice of the issue of the 
 prospectus will be given by the banks to the Board of Finance. 
 
 4. In. the event of the Imperial Chinese Government requiring ■ funds 
 immediately for the commencement of any of the undertakings contemplated 
 for Manchuria the banks agree upon the execution of this agreement and so 
 soon as they shall have been furnished with a statement satisfactory to them- 
 selves of the nature of such undertaking or undertakings and the amounts to be 
 applied thereto, to hold in America and Europe at the disposal of the Imperial 
 Chinese Government the sum of one million pounds sterling (£1,000,000), 
 and to advance the same, or such portion thereof as may be required, against 
 the order of the Board of Finance. 
 
 5. The banks further engage that so soon as they shall have handed to 
 the Board of Finance the notification referred to in section 2 of this article, and 
 prior to the issue of this loan to the public, to hold in America and Europe at 
 the disposal of the Imperial Chinese Government a further sum of one million 
 pounds sterling (£1.000,000), which amount, or such portion thereof as may 
 be required, may be withdrawn for preliminary expenses in connection with 
 currency reform by orders of the Board of Finance as provided by section 5 
 of Article IX hereunder. 
 
 6. The above advances to the aggregate of two million pounds sterling 
 (£2,000,000), or such portion or portions thereof as may, from time to time, 
 have been availed of by the Imperial Chinese Government, shall bear interest at 
 the rate of six per cent (6%) per annum from the date on which such several 
 sums may have been withdrawn by the Board of Finance from the banks, and 
 these advances shall be repaid to the banks, with accrued interest from the first 
 proceeds of this loan when issued, or in any case within eighteen months from 
 the signature of this agreement unless otherwise mutually arranged between 
 the Board of Finance and the banks. 
 
 Article IX. — The net proceeds of the loan shall be placed to the credit of
 
 NUMBER 1911/2: APRIL 15, 1911 845 
 
 accounts to be designated respectively as " The Chinese Government Currency 
 Reform Account " and " The Chinese Government Manchurian Development 
 Account " with the American group in New York or such bank or banks in 
 China as from time to time shall be designated by the American group, the Inter- 
 national Banking Corporation being now so designated ; and with the Hongkong 
 & Shanghai Banking Corporation, the Deutsch-Asiatische Bank and the Banque 
 de ITndo-Chine, in China, London, Berlin or Paris, as the case may be Payments 
 of the loan proceeds into the credit of these accounts shall be made in the propor- 
 tions fixed respectively by the statement of expenditures for currency reform and 
 the statement of Manchurian expenditures provided for in Article VIII, section 1, 
 above, in instalments and on dates conforming to the conditions allowed to the 
 subscribers to the loan, and the sums so credited shall be held by the banks above 
 named subject to the order of the Board of Finance. 
 
 2. Transfers of loan funds to China in amounts conforming to the Imperial 
 Chinese Government's requirements as specified in the statements of currency 
 reform and Manchurian expenditures respectively, but not exceeding a maximum 
 of three hundred thousand pounds sterling (£300,000) transferred in any one 
 week, will be made through the Shanghai branches of the several banks named 
 in section 1 of this article by the Board of Finance: — and if such transfer be 
 made through more than one of the several banks exchange therefor shall be 
 settled with the transferring banks on the same day. Funds so transferred shall 
 be held by the transferring banks in Shanghai until required to be withdrawn 
 for the purposes specified in the statements of currency reform and Manchurian 
 expenditures, respectively. 
 
 3. The banks agree to pay interest upon the funds held by them in America 
 and Europe at the rate of 3 per cent per annum and upon the funds tempo- 
 rarily held by them in China at the banks' rates in Shanghai for current 
 accounts. 
 
 4. The Board of Finance shall, in accordance with the Imperial Chinese 
 Government's requirements, as specified in the statements of currency reform 
 and Manchurian expenditures, respectively, make transfers from the loan funds 
 held by the banks in China, to the credit of a " currency reform account " and/or 
 a " Manchurian development account " with the Shanghai and/or Peking 
 branches of such Chinese bank or banks as the Board of Finance may, from time 
 to time, designate to be its agent or agents for financing the operations con- 
 templated under this agreement. 
 
 5. Orders on the banks for such transfers of loan funds held by the banks 
 in China to the Shanghai and/or Peking branches of the designated Chinese bank 
 or banks, shall be signed by the Board of Finance and shall be handed to the 
 banks in Shanghai or Peking three days before the transfers are to be made. Such 
 orders shall be of a form to be stipulated in the statement of expenditures for 
 currency reform and/or the statement of Manchurian expenditures referred to 
 in Article VIII, section 1 above, and shall specify to what item or items of such 
 expenditures the transferred funds are to be applied. Such orders being found 
 correct the banks shall not be entitled to delay the transfer desired and the sum 
 requisitioned shall be immediately transferred to the credit of the " Currency
 
 846 CHINA TREATIES AND AGREEMENTS 
 
 reform account " and/or the " Manchurian development account " with the 
 designated Chinese bank or banks. 
 
 6. In case the Board of Finance should desire to withdraw or transfer funds 
 held by the banks in America or Europe to make gold payments abroad for 
 expenditures contemplated under the statement of expenditures for currency 
 reform and/or the statement of Manchurian expenditures, orders of the form 
 specified in section 5 above shall be handed to the bank or banks concerned in 
 Shanghai or Peking five days before such payments or transfers are to be made 
 and the orders being found correct the bank or banks concerned shall at the 
 expense of the Board of Finance, by telegraph advise the bank or banks concerned 
 in America or Europe, as the case may be, to make the payments or transfers 
 thus requisitioned. 
 
 7. Transfers of loan funds from the banks in America and Europe to China, 
 and transfers from the banks in China to the designated Chinese bank or banks 
 shall be made as nearly as possible in equal amounts. In the event of equal 
 transfers being found to be impracticable, however, a mutually satisfactory 
 procedure for making the transfers above referred to shall be aranged by the 
 Board of Finance with the banks. 
 
 Article X. — The Imperial Chinese Government may at its discretion, instruct 
 the banks to make on its behalf payments in gold abroad from the proceeds of this 
 loan held by them in America and Europe, up to an amount not exceeding two 
 million five hundred thousand pounds sterling (£2,500,000) to meet its obligations 
 due under the terms of the protocol of September 7, 1901. f These disbursements 
 in gold abroad shall be made upon the payment in Shanghai to the credit of the 
 *' Chinese Government currency reform account " and/or the " Chinese Govern- 
 ment Manchurian development account " with the bank or banks concerned, of 
 funds in Shanghai sycee equivalent, at the average indemnity rate of exchange of 
 the preceding month, to the amounts in gold so released. Funds so credited shall 
 be held by the bank or banks concerned in Shanghai until withdrawn for the 
 purposes specified in the statements of currency reform and Manchurian expendi- 
 tures respectively, as provided in sections 4 and 5 of Article IX above. 
 
 Article XI. — Desiring to assure the banks, in the interests of the bondhold- 
 ers, that the loan funds are being expended for the purposes contemplated under 
 this agreement, the Board of Finance engages, until such time as the proceeds of 
 the loan shall have been expended in accordance with the statements of currency 
 reform and Manchurian expenditures, to hand to the banks not later than thirty 
 days after the expiration of each quarterly period Chinese calendar: — 
 
 (c) A quarterly report in Chinese and English showing the disbursements 
 incident to the inauguration and operation of the Imperial Chinese Government's 
 program of currency reform. 
 
 (&) A quarterly report in Chinese and English showing the disbursements 
 for the promotion and extension of Manchurian industry. 
 
 Such quarterly reports shall be of a form to be specified in the statements 
 of currency reform and Manchurian expenditures. 
 
 In addition to such quarterly reports the Board of Finance will also hand to 
 
 tNo. 1901/3, ante.
 
 NUMBER 1911/2: APRIL 15, 1911 847 
 
 the banks a copy of the annual report which is to be published for the information 
 of the Imperial National Assembly or the Imperial Chinese Parliament. 
 
 Article XII. — The rate of interest for the loan shall be five per cent (5%) 
 per annum on the nominal principal and shall be paid to the bondholders half- 
 yearly as calculated from the date on which the loan is issued to the public and 
 according to the amounts specified in the schedule attached to this agreement. 
 
 2. The term of this loan and of the bonds evidencing the same shall be forty- 
 five years. Repayment of principal shall commence with the eleventh year after 
 the date of the loan and shall be made by yearly amortization in half-yearly pay- 
 ments according to the amounts specified in the schedule attached to this 
 agreement. 
 
 3. The Board of Finance shall, twelve days before their due dates, hand to 
 the bank or banks designated from time to time by the American group, the 
 International Banking Corporation being now so designated, and to the Hong- 
 kong & Shanghai Banking Corporation, the Deutsch-Asiatische Bank and the 
 Banque de ITndo-Chine in Shanghai, in equal shares, funds in Shanghai sycee 
 and/or coin of the national currency (so soon as the said currency shall have 
 been effectively established) sufficient to meet each such half-yearly payment 
 of principal and/or interest in gold, in America or Europe. 
 
 4. The rate of exchange for such transactions shall be settled simultane- 
 ously with the banks aforementioned by the Board of Finance either on the day 
 on which such payments in Shanghai sycee and/or coin of the national currency 
 are to be made or, at the option of the Board of Finance, on any date or dates 
 within six months previous to any due date for the payment of interest or the 
 repayment of principal. 
 
 5. Payments may be made in gold twelve days before their due dates to 
 the banks in the United States of America or Europe if the Imperial Chinese 
 Government should happen to have gold funds bona fide at its disposal in the 
 United States of America or in Europe, not remitted from China for the purpose, 
 and desire so to use them. 
 
 6. In reimbursement of expenses connected wath the payment of interest 
 and the repayment of principal of this loan the banks shall receive a commission 
 of one-fourth of one per cent on the annual loan service. 
 
 Article XIII. — If at any time after the lapse of fifteen years from the date 
 of the loan the Government should desire to redeem the whole outstanding amount 
 of the loan or any part of it not yet due for repayment in accordance with the 
 schedule of repayments hereto attached, it may do so up to the end of the twenty- 
 fifth year by payment of a premium of 23^ per cent on the face value of the bonds 
 (that is to say, by the payment of £102 10s for each ilOO bond) and after the 
 lapse of twenty-five years without premium, but in each and every case of such 
 extra redemption the Government will give six months' previous notice in writing 
 to the banks and such redemption shall be effected by additional drawings of 
 bonds to take place on the date of an ordinary drawing as provided in the 
 prospectus of the loan. 
 
 Article XIV. — In the event of any bond or bonds issued for this loan being 
 lost, stolen or destroyed, the group and/or bank or banks concerned may notify the
 
 348 CHINA TREATIES AND AGREEMENTS 
 
 Board of Finance and the Imperial Chinese ministers in Washington, London, 
 Berlin or Paris, as the case may be, who shall authorize the group and/or bank or 
 banks concerned to insert an advertisement in the public newspapers stating that 
 payment of such bond or bonds has been stopped ; and to take such other steps as 
 may appear advisable or necessary according to the laws or customs of the 
 country concerned. Should any bond or bonds be destroyed, or should such lost 
 or stolen bond or bonds not be recovered after a lapse of time to be fixed by the 
 banks the Imperial Chinese ministers in Washington, London, Berlin or Paris, 
 as the case may be, shall seal and execute a duphcate bond or duplicate bonds for 
 a like amount and deliver the same to the group and/or bank or banks representing 
 the owner or owners of such lost, stolen or destroyed bond or bonds, which group 
 and/or bank or banks shall pay all expenses in connection with such delivery and 
 execution of such duplicate bond or bonds for the account of the owner or owners 
 of such bond or bonds. 
 
 Article XV. — All bonds and coupons and payments made and received in 
 connection with the service of this loan shall be exempt from all Chinese taxes 
 and imposts of any and every description during the currency of this loan. 
 
 Article XVI. — If the Imperial Chinese Government should desire to obtain 
 from other than Chinese sources, funds in addition to the proceeds derived from 
 this loan, to continue or complete the operations contemplated under this agree- 
 ment, the Imperial Chinese Government shall first invite the banks to undertake 
 a loan to provide the funds required, but should the Imperial Chinese Government 
 fail to agree with the banks as to the terms of such supplementary loan then other 
 financial groups may be invited to undertake the same ; and should the Imperial 
 Chinese Government decide to invite foreign capitalists to participate with 
 Chinese interests in Manchurian business contemplated under this loan, or to be 
 undertaken in connection therewith, the banks shall first be invited td so 
 participate. 
 
 Article XVII. — If, before the publication of the prospectus for the issue 
 of this loan any political or financial crisis should occur affecting the American, 
 British, German and/or French markets and the prices of Chinese Government 
 securities in such manner or to such a degree as in the opinion of the banks 
 will render impossible the successful flotation and issue of this loan on the terms 
 herein named, the banks shall be granted a period of six months from the 
 date on which they shall have handed to the Board of Finance the notification 
 referred to in section 2, Article VIII above, within which to issue the loan to the 
 public. If, at the expiration of this period the markets are still unfavorable then 
 the banks shall be entitled to ask the Imperial Chinese Government for a reason- 
 able extension of time within which to carry out this contract. If the Imperial 
 Chinese Government should refuse to grant the extension of time requested this 
 contract shall become null and void, subject always to the repayment of advances 
 as provided in section 6, Article VIII above, and the Imperial Chinese Govern- 
 ment shall be liable for no other claims whatsoever. 
 
 Article XVIII. — The American group, the Hongkong & Shanghai Banking 
 Corporation, the Deutsch-Asiatische Bank and the Banque de I'lndo-Chine shall 
 take the loan in equal shares and without responsibility for each other.
 
 NUMBER 1911/2: APRIL 15, 1911 849 
 
 Article XIX. — The American group, the Hongkong & Shanghai Banking 
 Corporation, the Deutsch-Asiatische Bank and the Banque de ITndo-Chine may, 
 subject to all their obligations under this agreement, transfer or delegate all or 
 any of their rights, powers and discretions thereunder to any American, British, 
 German or French company, directors, or agents, with power of further transfer 
 and subdelegation ; such transfer, subtransfer, delegation or subdelegation to be 
 subject to the approval of the Imperial Chinese Government. 
 
 Article XX. — This agreement is signed by the Board of Finance under the 
 authority of an imperial edict dated the 17th day of the third moon of the third 
 year of His Imperial Majesty Hsuan T'ung, corresponding to the 15th day of 
 April, 1911, western calendar, which will be officially communicated to the minis- 
 ters of the United States of America, Great Britain, Germany and France in 
 Peking by the Wai-wu Pu. 
 
 Article XXI. — Eight sets of this agreement are executed in English and 
 Chinese, four sets to be retained by the Imperial Chinese Government and one 
 set by each group and/or bank. In the event of any doubt arising regarding the 
 interpretation of this contract the English text shall rule. 
 
 Signed at Peking this 17th day of the chird moon of the third year of His 
 Imperial Majesty Hsuan T'ung, being the 15th day of April, one thousand nine 
 hundred and eleven, western calendar. 
 
 [Signatures.] 
 
 STATEMENT OF EXPENDITURES FOR CURRENCY REFORM. 
 
 [In accordance with Article VIII (6).] 
 
 [Translation.] 
 
 Taels. 
 The coinage of standard and subsidiary coins in the seven head and branch mints 
 
 will require at least the daily use of approximately . • • 2,333,330 
 
 The coinage of standard and subsidiary coins will require at least the monthly use 
 
 of approximately • • . 10,000,000 
 
 The coinage of standard and subsidiary coins will require at least the half-yearly 
 
 use of approximately 60,000,000 
 
 Included in the above is the sum of taels 20,000,000 to be devoted to currency in 
 Manchuria. 
 
 STATEMENT OF MANCHURIAN EXPENDITURES. 
 
 [In accordance with Article VIII (c).] 
 
 [Translation.] 
 
 Taels. 
 For expenditures in connection with the promotion of immigration, reclamation, 
 
 and pastoral enterprises, approximately • • • 14,000,000 
 
 For expenditures in connection with forestry and other agricultural enterprises 
 
 in Heilungkiang Province, approximately _• 4,000,000 
 
 For expenditures in connection with gold mining at Mo Ho, Kuang Yin Shan, 
 
 and San Hsing, and other mining enterprises, approximately 2,000,000 
 
 For expenditures in connection with branch mints the sum of 20,000,000 
 
 approximately will be appropriated from the currency bureau. 
 
 Should the above enterprises or the amounts decided upon be found inappropriate the 
 matter of changing the same may be taken into consideration at the time, but the principle 
 of the promotion of industries shall be adhered to.
 
 850 CHINA TREATIES AND AGREEMENTS 
 
 The Chinese Board of Finance to the Bankers. 
 [Translation.] 
 
 Received May 6, 1911. 
 The Representatives of the American Group, the Hongkong & Shanghai Banking 
 
 Corporation, the Deutsch-Asiatische Bank, the Banque de I'Indo-Chine, 
 
 Peking. 
 
 Gentlemen : I beg to inform you of the receipt of a letter from His Ex- 
 cellency Chao, the Viceroy of Manchuria, requesting that from the advance of 
 one million pounds (£1,000,000) provided for in Article VIII, section 4, of the 
 Imperial Chinese Government Five Per Cent Currency Reform and Industrial 
 Development Sinking Fund Gold Loan, signed on the 17th day of the third moon 
 (April 15, 1911) the sum of £400,000 be transferred as a first installment to 
 meet Manchurian requirements. 
 
 A statement clearly setting forth the purposes to which the Viceroy proposes 
 to apply these funds is herewith presented for your approval with the request 
 that if the same is considered satisfactory the banks will, as soon as possible, 
 deposit with the Shanghai branch of the Ta Ching Bank to the credit of the 
 Manchurian development account the silver equivalent of the sum of £400,000, 
 the rate of exchange for the same to be settled between the Ta Ching Bank in 
 Shanghai and the transferring banks on the same day. 
 
 (Signed) The Board of Finance. 
 
 [Enclosure.] 
 
 STATEMENT OF ENTERPRISES IN MANCHURIA FOR WHICH THE FIRST 
 INSTALLMENT OF LOAN FUNDS IS REQUIRED. 
 
 (a) For the repayment of funds borrowed from official sources, from various 
 
 banks, and from merchants for plague prevention £300,000 
 
 (b) For initial expenses in connection with agricultural enterprises: 
 
 1. Establishment of administrative bureaus, deputies, renting premises, etc. 
 
 2. For making surveys of agricultural lands, roads, and waterways, and 
 
 for making maps, etc. 
 
 3. For investigations into conditions and reporting thereon. 
 
 4. For compiling reports and making translations of foreign books relat- 
 
 ing to agriculture, industries, and colonization 30,000 
 
 (c) For industrial experimental stations with a view to : 
 
 1. Sugar making. 
 
 2. Paper making. 
 
 3. Dyeing and weaving fabrics from wild silk. 
 
 4. Establishing distilleries. 
 
 5. The making of materials used in house building, such as bricks, timber 
 
 sawing, etc. 
 
 6. Analyzing mining products 35,000 
 
 (d) For iron designing works with a view to the manufacture of agricultural 
 
 and other implements, machinery, etc 30,000 
 
 (e) For the Chen-An cattle ranges 5,000 
 
 Grand total _ £400,000 
 
 Signed and sealed by 
 
 Chao Erh Hsuan, 
 
 Viceroy of Manchuria. 
 Hsuan T'ung, 3d year, 4th moon, 5th day.
 
 NUMBER 1911/2: APRIL 15, 1911: NOTE 851 
 
 Note. 
 
 The negotiations for the currency loan were initiated by the Chinese Government with 
 the American group, with whose representative the following preliminary agreement was 
 concluded on October 27, 1910 : 
 
 Preliminary Agreement for Currency Reform and Industrial Development Loan, 
 
 October 27, 1910. 
 
 " Preliminary agreement made between the -Board of Finance acting on behalf of the 
 Imperial Chinese Government hereinafter called the Government, of the first part 
 
 "and 
 
 " Alessrs. J. P. Morgan & Company, Messrs. Kuhn, Loeb & Company, the First Na- 
 tional Bank and the National City Bank, all of New York City, constituting the American 
 group, hereinafter called the Group, of the second part. 
 
 " Whereas the Government desiring to facilitate certain changes in the administration 
 of Imperial and IManchurian Finance and to undertake certain Industrial Enterprises in 
 Manchuria, proposes to create and issue Imperial Chinese Government Sinking Fund Gold 
 Bonds, hereinafter known as the Bonds in an aggregate principal amount not exceeding 
 fifty million dollars United States gold coin ($50,000,000) and to negotiate a loan in the 
 manner and form to be hereafter determined. 
 
 " It is agreed as follows : 
 
 "Article I. — The government agree to issue and the group agree to offer on behalf 
 of the government a gold loan hereinafter referred to as the loan, for an amount not 
 exceeding fifty million dollars United States gold coin ($50,000,000) on the terms and sub- 
 ject to the conditions to be stated in a final agreement to be negotiated as hereinafter 
 provided. 
 
 " Article II. — The loan shall constitute a direct liability and obligation of the Imperial 
 Government of China which hereby pledges its good faith and credit for the punctual pay- 
 ment of the principal and interest of the loan. 
 
 "Article III. — The rate of interest on the loan shall be 5% per annum; the group 
 shall take the bonds at 95 flat. The net proceeds of the loan shall be deposited with the 
 group or its duly authorized representatives in New York or elsewhere subject to with- 
 drawal for the requirements of the operations contemplated under the loan, and the con- 
 ditions governing such deposit and withdrawal, the term of the loan, the manner and 
 form of payment of the interest and amortization charges, also the date from when 
 interest upon the bonds is to commence and to cease, the creation of a sinking fund and 
 other provisions necessarily incident to the service and redemption of the loan shall be 
 settled in a mutually satisfactory manner and stated in the final agreement.^ 
 
 " Article IV. — Interest and amortization payments and other expenses incident to the 
 service of the loan shall be made the first charge upon such revenues as shall be suitable 
 and sufficient for the purpose to be hereafter agreed upon and stated in the final agreement. 
 
 "Article V. — This preliminary agreement is subject to ratification by imperial edict, 
 which imperial edict when issued shall be officially communicated to the American lega- 
 tion at Peking by the Wai Wu Pu with the request that the group enter at once upon nego- 
 tiations of the final agreement with the board or the high official to be designated by the 
 Imperial Government of China. 
 
 " Article VI. — This agreement is executed in duplicate in English and Chinese, one 
 set to be retained by the government and the other set by the American group. In case 
 there be any misunderstanding arising from a difference between the English and Chinese 
 texts the matter shall be settled by a mutually satisfactory arrangement. In the event of 
 it being impossible to come to a mutual understanding regarding the points not already 
 settled then this preliminary agreement will be cancelled. 
 
 " Signed at Peking by the contracting parties this twenty-fifth day of the ninth moon 
 of the second year of Hsuan T'ung, corresponding to the 27th day of October, 1910, 
 western calendar." 
 
 Thereafter, at the instance of the American group, and upon the solicitation of the 
 American Government, the Chinese Government consented to the participation of the 
 British, French and German Banks, with which the American group had associated itself 
 for the purpose of China business. The outbreak of the revolution against the Manchu 
 Dynasty intervened before satisfactory arrangements had been completed for the flotation 
 of the loan under the terms of the Agreement of April 15, 1911, with this "Four-Power 
 Consortium " ; and under the altered conditions resulting, the banks postponed further 
 •action on this project, in order to undertake a reorganization loan required by the newly 
 established Republican Government. In reference to the subsequent accession of the 
 Japanese and Russian banks to the consortium, the withdrawal of the American gfouP' 
 and the conclusion of the reorganization loan agreement of April 26, 1913, consult No. 
 1913/5, post. 
 
 Despite the withdrawal of the American Group in March, 1913, the American Govern-
 
 g52 CHINA TREATIES AND AGREEMENTS 
 
 ment has for its part maintained its interest in the project of currency reform; and on 
 October 20, 1917, it communicated through its Legation at Pekmg to the Chmese Govern- 
 ment the following statement: 
 
 " Quite apart from any individual contractual interest accruing to ' The American 
 Group' under the Currency Loan Agreement of April 15, 1911, the Government of the 
 United States considers that the whole history of the currency loan project — notably the 
 appeal made to it by the Chinese Government in January, 1904, the conferences with Dr. 
 Jenks in 1903 and 1904, and the request for a loan for the purpose of monetary reform 
 which in 1910 the Chinese Government addressed not to any individuals but directly to 
 the American Government — constitutes in behalf of the Government of the United States 
 such an interest in the project as entitles it to be considered in reference to any action 
 which the Chinese Government may contemplate with a view to carrying that project into 
 effect. This interest has never been abandoned by the Government of the United States." 
 
 It is understood that advances totaling £400,000 have been made to the Government 
 under this agreement. The F. E. Review, vol. VIII, p. 376, prints the following as the 
 text of a letter from President Yuan to the representatives of the four banks, in regard 
 to one such advance of Shanghai taels 1,100,000: 
 
 Letter of Agreement for Advance upon Currency Loan, March g, 1912. 
 
 " REPUBLIC OF CHINA. 
 
 " Office of the President. 
 
 " Peking, March 9th, 1912. 
 "To E. G. Hillier, Esq., C. M. G., Agent, Hongkong & Shanghai Banking Corporation, 
 Monsieur Casenave, Manager, Banque de ITndo-Chine, H. Cordes, Esq., Deutsch-Asiatische 
 Bank, and Willard D. Straight, Esq., Special Representative American Group. 
 
 " Gentlemen : 
 
 " I am in receipt of your letter of today's date informing me that, having obtained the 
 sanction of your Governments to advance to the Chinese Provisional Government funds 
 for their urgent requirements, as stated in the letter of the 2nd March addressed to you 
 by the Acting-Minister of Finance, your Banks are now prepared to hold at the disposal 
 of the Chinese Provisional Government, against the receipts of the Ministry of Finance, 
 the sum of Shanghai Taels One million one hundred thousand (Shanghai Taels 1,100,000) 
 and T note the arrangements proposed for making this sum available. 
 
 "It is understood and agreed: 
 
 " 1.— That the said advance of Shanghai Taels One Million One Hundred Thousand 
 will be treated in conjunction with the advance of Shanghai Taels 2,000,000 made in 
 Shanghai to the Chinese Provisional Government on the 28th day of February last, and 
 that sterling exchange for the same will be settled by the Banks in Shanghai today. 
 
 "2.— That this advance of Shanghai Taels 1,100,000 as in the case of the previous 
 advance of Shanghai Taels 2,000,000 above referred to, will be covered by delivery to 
 the Banks, so soon as arrangements permit, of sterling Treasury Bills bearing date the 
 9th day of March, 1912, and for such amounts as, after being discounted at a rate to be 
 arranged, shall yield the sterling equivalent of the said advance, the said Treasury Bills to be 
 secured, subject to the existing charges, upon the revenue of the Salt Gabelle. 
 
 " 3. — That the Banks hold a firm option for the provision of the further monthly 
 requirements of the Chinese Government for the months of March, April, May, June and 
 possibly July and August which the Four Groups have already been requested to finance, 
 against the delivery of additional sterling Treasury Bills on terms to be arranged. 
 
 " 4. — That in consideration of the assistance rendered by the Groups to China in the 
 present emergency and of their services in supporting her credit on the foreign markets, 
 the Chinese Government assures to the Groups (provided their terms are equally advan- 
 tageous with those otherwise obtainable) the firm option of undertaking the comprehen- 
 sive loan for general reorganization purposes already proposed to them, to be floated as 
 soon as possible, and to be applied in the first instance to the redemption of the sterling 
 Treasury Bills aforesaid. 
 
 " I hereby confirm the arrangements and conditions above stated, and request you to 
 proceed immediately in accordance therewith. 
 
 " I am, Gentlemen, 
 
 " Yours faithfully, 
 
 " (Sgd.) Yuan Shih-kai. 
 
 " (SEAL)" 
 
 In January, 1914, the Chinese Government promulgated a national currency law, and 
 regulations for the enforcement thereof, of which the following translations were printed 
 in the Peking Daily News of January 21, 1914:
 
 NUMBER 1911/2: APRIL 15, 1911: NOTE 853 
 
 The Law for the National Currency.— January, 1914. 
 
 Article 1.— The right of minting and issuance of national currency shall solely belong to 
 the Government. 
 
 Article 2.— The unit of the national coins shall be called yuan, and the yuan shall con- 
 tain six mace, four candareens and eight li (kiiping weight) or 23.97795048 grammes of pure 
 silver. 
 
 Article 3.— The different kinds of national coins are as follows :— 
 
 A. Four kinds of silver coins. 
 
 (1) 1 yuan. 
 
 (2) % " 
 
 (3) 20 cent piece. 
 
 (4) 10 " •• 
 
 B. One kind of nickel coin. 
 (1) 5 cent piece. 
 
 C. Five kinds of copper coins. 
 
 (1) 2 cent copper piece. 
 
 (2) 1 " 
 
 (3) 5 li piece. 
 
 (4) 2 " " 
 
 (5) 1 " " _ 
 
 Article 4.— The value of the national coin shall be in decimal progression. One tenth 
 of a yuan shall make a chio or a 10 cent piece. One hundredth of a yttan shall make 1 
 fen or cent, and one thousandth of a yuan shall make one li. 
 
 Article 5. — The weight and fineness of the coins shall be as follows : — 
 
 1. — 1 yuan, gross weight 72 candareens with 90 per cent, silver and 10 per cent, copper. 
 
 2.— 50 cent piece, gross weight 32.4 candareens, with 70 per cent silver and 30 per cent, 
 copper. 
 
 3. — 20 cent piece, gross weight 12 candareens, with 70 per cent silver and 30 per cent 
 copper. 
 
 4. — 10 cent piece, gross weight 6 candareens, with 70 per cent silver and 30 per cent 
 copper. 
 
 5. — 5 cent nickel piece, gross weight 7 candareens, with 25 per cent nickel and 75 per 
 cent copper. 
 
 6. — 2 cent copper piece, gross weight 28 candareens, with 95 per cent copper, 4 per cent 
 pewter and 1 per cent lead. 
 
 7. — 1 cent copper piece, gross weight 18 candareens, with its fineness same as 2 
 cent copper piece. 
 
 8. — 5 // copper piece, gross weight 9 candareens, with its fineness same as above. 
 
 9. — 2 li copper piece, gross weight 4.5 candareens, with its fineness same as above. 
 10. — 1 li copper piece, gross weight 2.5 candareens, with its fineness same as above. 
 
 Article 6. — No restrictions shall be placed upon the use of 1 yuan piece. The amount 
 of 50 cent pieces involved in one transaction shall not exceed twenty dollars. The amount 
 of 20 cent and 10 cent pieces involved in one transaction shall not exceed five dollars. The 
 amount of nickel or copper pieces involved in one transaction shall not exceed one dollar. 
 This restriction shall not be applied to the collection of taxes and the exchanges in the 
 national banks. 
 
 Article 7. — The designs of the national coins shall be promulgated by a Provisional 
 Order. 
 
 Article 8. — The ratio of the difference between the weight of each silver coin and that 
 of the legal tender shall not exceed 3/1000. 
 
 The ratio of the difference between the total weight of per 1000 pieces of the silver coin 
 and the legal weight of that amount of coins shall not exceed 3/10,000. 
 
 Article 9. — The ratio of the difference between the fineness of any piece of silver coin 
 and the legal fineness shall not exced 3/1000. 
 
 Article 10. — When on account of wear and tear, the 1 yuan silver piece loses one per 
 cent of its weight, it may be exchanged at the government banks for a new dollar. When, 
 on account of wear and tear, the 50 cent silver piece and other kinds of coins lose five per 
 cent of the legal weight, they may be exchanged at the government banks for new coins. 
 
 Article 11. — When a coin is found to be mutilated purposely no one shall be com- 
 pelled to accept it. 
 
 Article 12. — The Government consents^to coin 1 yuan silver pieces for those who give 
 to it silver bullion, and 6 li per yuan shall be charged as minting fee. 
 
 Article 13. — This law shall be in force on the day of its promulgation.
 
 854 CHINA TREATIES AND AGREEMENTS 
 
 Regulations for the Enforcement of the Currency Law, January, 1914. 
 
 Article 1. — The National coins must be used as medium in the transaction of any 
 financial dealing in the country. Special regulations in the Currency Regulations must also 
 be observed. 
 
 Article 2. — The Government shall exchange the silver dollars coined by the old mints 
 with the national coins and remint the dollars. Within a certain period, the old dollar 
 shall possess the same value as the yuan, but as to the length of that period, a Provisional 
 Order shall be issued to fix it. 
 
 Article 3. — The Government shall recall all the old silver pieces of the different denomi- 
 nations, old copper pieces and remint them, but within a certain fixed period, the old 
 coins shall be allowed to be circulated at the market prices. 
 
 * If the old coins are used to pay taxes, every month all the public offices shall issue 
 notices fixing the current rate of the coins at which the offices shall receive old coins. The 
 offices shall take as the current rate an average of the exchange rates of the previous month. 
 The period for the circulation of the old coins shall be fixed by a Provisional Order. 
 
 Article 5. — If taxes are remitted with silver bullion or if any person wants the Govern- 
 ment to mint silver coins for him, in the calculation one dollar shall contain 65.4 candareens. 
 The bullion of other fineness and weight shall be converted according to a table to be 
 attached. 
 
 Article 6. — In the public offices where the receipts and expenditures are calculated in 
 taels, the amount should be converted into the term of yuan in accordance with Article 4. 
 At places where the receipts and disbursements consist of copper coins and cash, the public 
 office shall report to the Ministry of Finance the actual sum of receipts and disbursements 
 with the request for permission to convert the coins into the term of yuan. 
 
 Article 7. — In the collection of various revenues and taxes, Articles 5, 6 and 7 shall 
 be observed. In the calculation, the li shall be the smallest of denominations. All the 
 decimal fractions of the /; shall be treated thus: — when the figure is 4, it shall be discarded, 
 and when it is 5, it shall be considered as one to be added to the other integers. 
 
 Article 8. — When the debts among the people are calculated in the term of taels, they 
 should be converted into the term of the national coin. Where the old subsidiary coins are 
 involved. Article 6 shall be observed in the conversion into the national coins. If the sums 
 in the deeds, contracts and promissory notes are not converted into the term of yuan, and 
 if any lawsuit arises, the exchange rate on the day of the promulgation of these regulations 
 shall be considered as a standard. 
 
 Article 9. — Within the domain of China, no one shall object to the use of the national 
 coins. 
 
 Article 10. — If anybody disregards Article 4 of the Law for the National Currency and 
 Article 9 of the regulations for the enforcement of the Law for the National Currency, 
 the party concerned may bring a lawsuit against him, and when convicted, a fine from 10 
 dollars to 1,000 dollars shall be imposed on the off'ender. Any official or any member con- 
 nected with the government enterprises who commits the same offence, is liable to pay a 
 fine of from 50 to 3,000 dollars after the same procedure has been observed. 
 
 Article 11. — The area and the date for the enforcement of these regulations shall be 
 fixed by a Provisional Order. 
 
 This law and the accompanying regulations are understood to have been approved by 
 the interested banks as a basis for the monetary reform contemplated by the currency loan 
 agreement. On August 10th, 1918, however, the Government promulgated, and the Ministry 
 of Finance simultaneously communicated to the representatives of the British, French, Japa- 
 nese and Russian banks, the following regulations governing the issue of gold currency 
 notes, and rules governing the organization of the Currency Bureau (as printed in transla- 
 tion in the Peking Leader of August 13th, 1918) : 
 
 Regulations Governing the Issue of Gold Currency Notes. — August 10, 1918, 
 
 Article 1. — With a view to facilitating international trade and preparing for the 
 adoption of a currency system with a gold basis the bank or banks appointed by the Currency 
 Bureau shall be allowed to issue gold currency notes. 
 
 Article 2. — The unit of the gold currency shall be one gold dollar which shall con- 
 tain 0.752318 Kungfun of pure gold, that is, 2.01688 candareen of Kuping tael. 
 
 One tenth part of a gold dollar shall be called a " Chao," one hundredth a "fen," one 
 thousandth a " /;," etc. 
 
 Article 3. — The denominations of the gold currency notes shall be : one dollar, five 
 dollars, ten dollars, twenty dollars, fifty dollars and one hundred dollars. 
 
 The Government may order the bank or banks appointed by the Bureau to issue gold 
 
 * [ particle 4.]
 
 NUMBER 1911/2: APRIL 15, 1911: NOTE 855 
 
 currency notes of smaller denominations, such as five-c/tao (half a dollar) two-chao (one 
 fifth of a dollar) and one-chao (one tenth of a dollar) and the Government Mint may be 
 ordered to mint copper coins of one "fen" denomination. 
 
 Article 4. — Before the coinage of such gold dollars the holder of the gold currency 
 notes may remit the money to other cities in this country or to foreign countries through 
 the specified banks and after the coinage of such gold dollars, the holder of such gold 
 currency notes may exchange them for gold coins as well as remit them to any city in the 
 country or to any foreign country. 
 
 The gold currency notes may be exchanged at the specified banks for foreign gold coins 
 or gold bullion. All ornaments made of pure gold shall be considered equivalent to sterling 
 gold and they shall be valued according to the quantity of pure gold they contain. 
 
 Article_ 5.— -The proportionate value of the gold currency notes and the national cur- 
 rency now in circulation will necessarily not always be the same. But it shall be made 
 known to the public by notifications issued by the specified banks from time to time, and 
 gold currency notes and current silver coins in circulation or silver bullion may be ex- 
 changed at the said banks at the notified value. 
 
 Article 6. — The specified banks shall have an adequate gold reserve against the amount 
 of notes issued. This gold reserve shall either be in our national gold dollars, or gold 
 bullion, or foreign gold coins deposited with the exchange banks in both Chinese and 
 foreign commercial ports. The public shall be notified by the specified banks once every 
 ten days about the amount of the gold reserve and the places where this reserve is 
 deposited. 
 
 This gold reserve shall be subject to the inspection of the special delegates of the 
 Currency Bureau at any time. 
 
 Article 7. — The gold currency notes may be used in public and private dealings at the 
 proportionate value as notified from time to time by the specified banks. 
 
 The use of the gold currency notes shall not be restricted. 
 
 Article 8. — The specified banks may deposit and carry on other forms of business 
 with the gold currency notes. 
 
 Article 9. — These Regulations shall be enforced from the date of promulgation. 
 
 The Rules Governing the Organization of the Currency Bureau, August 8, 1918. 
 
 Article 1. — The Currency Bureau shall be under the direct control of the Premier 
 and take charge of the following affairs : 
 
 (1) Those in connection with currency. 
 
 (2) Those in connection with the issue of notes. 
 
 (3) Other matters in connection with ci^rrency. 
 
 Article 2. — The following officers shall be appointed to the Currency Bureau : 
 
 One Director-General : this post shall be held by the Minister of Finance 
 
 concurrently. 
 One Governor : to be specially appointed. 
 One adviser : to be engaged. 
 
 An unlimited number of honorary advisers : to be engaged. 
 Article 3. — In the Currency Bureau, departments shall be established and members 
 appointed to manage the affairs of their respective departments. But before the establish- 
 ment of such departments, an Investigation Committee shall be appointed with a certain num- 
 ber of members, which shall be decided upon by order of the Bureau. 
 
 Article 4. — For copying documents and the management of miscellaneous affairs, 
 clerks shall be employed in the said Bureau. 
 
 Article 5. — All the Mints, Printing Offices, Paper Factories, and the Superintendents 
 of the Banks under the control of the Ministry of Finance shall be under the supervision 
 and direction of the Currency Bureau. 
 
 Article 6. — The Currency Bureau may issue orders independently or, in important 
 matters, may ask for the issuance of Cabinet orders, or it may issue jointly with the 
 Ministry of Finance. 
 
 Article 7. — The Currency Bureau shall be established for a period of ten years. 
 Article 8. — The Regulations governing management of affairs in the Currency Bureau 
 shall be drafted separately. 
 
 Article 9. — These Rules shall be enforced from the date of promulgation. 
 
 The banks have not yet exercised their option under the currency loan agreement, 
 although the time limit fixed by Article XVII has from time to time been extended by the 
 Chinese Government.
 
 856 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1911/3. 
 
 THE NETHERLANDS AND CHINA. 
 
 Consular convention relative to the possessions and colonies of the 
 Netherlands*— May 8, 1911. 
 
 Her Majesty the Queen of the Netherlands and His Majesty the Emperor 
 of China, beheving that, independent of the treaty of commerce and navigation 
 between the Netherlands and China, it is desirable that a special convention 
 should define the rights, duties, powers, privileges, exemptions and immunities 
 of Chinese consular officers in the Dutch possessions or colonies, in order to 
 conclude said convention, have named as their plenipotentiaries, to wit: 
 
 Her Majesty the Queen of the Netherlands Francois Beelaerts van Blokland, 
 Esquire, Knight of the Orders of the Dutch Lion and of Orange-Nassau, invested 
 with the third class of the first grade of the Order of the Double Dragon, her 
 envoy extraordinary and minister plenipotentiary to His Majesty the Emperor 
 of China; 
 
 His Majesty the Emperor of China: Lou Tseng Tsiang, invested with the 
 first class of the second grade of the Order of the Double Dragon, Grand Cross 
 of the Order of Orange-Nassau, of the Order of Saint Stanislas, his envoy extra- 
 ordinary and minister plenipotentiary to Her Majesty the Queen of the Nether- 
 lands, 
 
 Who, after having communicated to each other their full powers, found in 
 good and due form, have agreed upon the following articles : 
 
 Article L — The consuls-general, consuls, vice-consuls and consular agents 
 of China shall be admitted into the ports of the Dutch possessions beyond the 
 sea or into the Dutch colonies where reside or may reside officers of the same class 
 of any other foreign nation. 
 
 Article 2. — The consuls-general, consuls, vice-consuls and consular agents 
 of China shall be considered as commercial agents, protectors of the commerce of 
 their nationals within their consular jurisdiction. 
 
 They shall reside in the ports of the Dutch possessions beyond the sea or in 
 the Dutch colonies indicated in their commissions, and will be subject to the 
 laws of those possessions or colonies, both civil and penal, save such exceptions 
 as the present convention establishes in their favor. 
 
 Article 3. — Before being admitted to the exercise of their functions and 
 enjoying all their powers, privileges, exemptions and immunities therewith con- 
 nected, the consuls-general, consuls, vice-consuls and consular agents must present 
 to the Government of Her Majesty the Queen of the Netherlands, a commission, 
 indicating their consular jurisdiction and their place of residence. 
 
 * Translation from the French text as printed by the Netherlands Government in 
 Staatsblad, 1912, No. 280. French text printed also in Customs, vol. II, p. 352; Hsi'ian 
 Tuncj Tiao Yuch, vol. I, p. 44; Izviestia, 1912, vol. V, p. 67. See also Note to this docu- 
 ment, post, p. 860.
 
 NUMBER 1911/3: MAY 8, 1911 857 
 
 The government of the possession or colony shall deliver to them, free of 
 cost, the exequatur duly countersigned, necessary for the exercise of their func- 
 tions ; and upon having produced this document, the said consular officers of 
 every grade shall be entitled to the protection of the government and to the 
 assistance of the local authorities to insure to them the free exercise of their 
 functions. 
 
 The Government of the Queen reserves unto itself the right to withdraw the 
 exequatur or to have it withdrawn by the government of the possession or colony, 
 stating the reasons for such action. 
 
 In case of the death, incapacity or absence of the consuls-general, consuls, 
 vice-consuls and consular agents, their consular students, their chancellors or 
 secretaries, after their offi<:ial character shall have been notified to and approved 
 by the competent authority, shall by full right be admitted to administer tempor- 
 arily the affairs of the respective posts ; during the entire period of this temporary 
 incumbency, as far as their position as non-commercial foreigners may warrant, 
 in conformity with Article 15, they shall enjoy all the rights, powers, privileges, 
 exemptions and immunities accorded to the incumbents themselves. 
 
 Article 4. — The consuls-general, consuls, vice-consuls and consular agents 
 are authorized to display above the outer door of their residence an escutcheon 
 with the arms of their government, bearing the inscription : Consulate-General, or 
 Consulate, or Vice-Consulate or Consular Agency of China. 
 
 It is well understood that these external marks may never be interpreted as 
 conferring any right of asylum, nor as an indication that the residence and the 
 dwellers therein may not be proceeded against by the territorial courts of justice. 
 
 Article 5. — It is understood that the archives and documents relating to 
 consular affairs shall be protected against searches, and no authority and no 
 magistrate may enter the archives nor seize documents nor gain possession of 
 them in any manner and under any pretext whatever. 
 
 Article 6. — The consuls-general, consuls, vice-consuls and consular agents 
 are not invested with any diplomatic powers. 
 
 No petition may be addressed to the Dutch Government except through the 
 medium of the diplomatic agent accredited to The Hague. 
 
 In case of urgency, the consuls-general, consuls, vice-consuls and consular 
 agents may have direct recourse to the governor of the colony or possession by 
 proving the urgency and stating the reasons for which the petition might not be 
 addressed to the subordinate authorities, or by proving that previous petitions 
 addressed to these authorities had not been acted upon. 
 
 Article 7. — The consuls-general and consuls may appoint consular agents in 
 the ports mentioned under Article 1. 
 
 These consular agents may be Chinese or Dutch subjects, or nationals of any 
 other country residing, or entitled by the terms of the local laws to reside, in the 
 port where the consular officer is appointed. These consular agents, whose 
 appointment shall be submitted to the approval of the governor of the possession 
 or colony, shall be provided with a commission issued by the consul under whose 
 authority they are to exercise their functions. 
 
 The governor of the possession or colony may at any time, by notifying to the
 
 858 CHINA TREATIES AND AGREEMENTS 
 
 consul-general or consul the reasons for such action, withdraw from the consular 
 agents the approval above referred to. 
 
 Article 8. — The passport issued or certified by the consular officers in no 
 way exempts the bearer from the obligation to be provided with all documents 
 required by the local laws or regulations for traveling or establishing himself in 
 the possessions or colonies, and in no way diminishes the right of the government 
 of the possession or colony to order the removal or to prohibit therein sojourn of 
 any individual provided with a passport. 
 
 Article 9. — All operations regarding the salvage of Chinese vessels wrecked 
 on the coasts of the Dutch possessions or colonies shall be directed by the consuls- 
 general, consuls, vice-consuls or consular agents of China. 
 
 The intervention of the local authorities shall take place solely to maintain 
 order, to protect the interests of the salvors if they are not part of the wrecked 
 crews, and to insure the execution of the regulations made for the entry and 
 exportation of property recovered. 
 
 In the absence of and until the arrival of the consuls-general, consuls, vice- 
 consuls or consular agents, the local authorities shall, moreover, take all necessary 
 measures for the protection of individuals and property recovered. 
 
 It is furthermore agreed that the property recovered shall be exempt from 
 customs duties unless it is admitted for consumption in the country. 
 
 Article 10. — The consuls-general, consuls, vice-consuls or consular agents 
 may request the assistance of the local authorities for the arrest, detention and 
 imprisonment of deserters of Chinese merchantmen or war vessels. To this end 
 they shall address to the competent authorities a written request for the deserter, 
 and if it is proven by the registers of the vessel, the enrollment list of the crew, 
 or by any other authentic document, that the men claimed were part of the crew, 
 the surrender of the deserters may not be refused them, unless the individual in 
 question is a Dutch subject. 
 
 The local authorities shall be obliged to exercise all their power to cause the 
 arrest of the deserters ; and after the arrest, the latter shall be placed at the 
 disposal of said consular officers, and they may be detained upon the request and 
 at the expense of those claiming them, to be afterward returned on board the 
 vessels to which they belong or sent on board another vessel of the same nation. 
 But, if these deserters are not returned within four months, reckoned from the 
 date of their arrest, they shall be set free and may never again be arrested for 
 the same cause. 
 
 It is understood, however, that the surrender of the deserter who has com- 
 mitted a crime, violation or infraction against the law, shall be withheld until the 
 tribunal of the possessions, colonies or of the mother-country before which the 
 case is to be tried shall have rendered its decision and the latter have been carried 
 out. 
 
 Article 11. — Whether of their own free will or under compulsion, Chinese 
 vessels put into port, such damages as they may have suffered at sea shall be 
 settled by the consuls-general, consuls, vice-consuls or consular agents of China, 
 unless stipulations to the contrary were entered into between the ship-owners, 
 shippers and underwriters.
 
 NUMBER 1911/3: MAY 8, 1911 859 
 
 If, however, the consular officer is materially interested in the vessel or cargo, 
 or is the agent thereof, or if Dutch subjects or subjects or citizens of a third 
 nation are affected by the said damages, and the parties should be unable to reach 
 an amicable settlement, then recourse may by right be had to the competent 
 local authority. 
 
 Article 12. — Upon the death, in the Dutch possessions or colonies, of a 
 Chinese subject without known heirs or testamentary executors, the Dutch au- 
 thorities charged by the laws or decrees of the possession or colony with the 
 administration of inheritances shall immediately notify the Chinese consular 
 officers of the fact in order that the necessary information may be trans- 
 mited to those interested ; on the other hand, the Chinese consular officers 
 shall, in case they are the first to learn of the fact, give notice thereof to the said 
 authorities. 
 
 The competent local authority shall complete said notification by delivering, 
 in due form and without cost, a copy of the death certificate. 
 
 Article 13. — The consuls-general, consuls, vice-consuls and consular agents 
 shall have the right, in their offices, in their private residence, in the residence of 
 the interested subjects of their country or on board vessels of their nation, to 
 receive the declarations of the captains and crews of vessels of their country, of 
 the passengers on board, and of any other subject of their country. 
 
 Article 14. — The consuls-general, consuls, vice-consuls or consular agents 
 of China shall have exclusive charge of the internal order of all merchantmen of 
 their nation. 
 
 They alone shall have jurisdiction over all controversies which may have 
 arisen at sea or may arise in port between the captain, the officers and men of 
 the crew, including controversies regarding the adjustment of wages and the 
 execution of contracts. 
 
 The tribunals or other authorities of the possession or colony may not for 
 any reason whatever interfere in these controversies unless they should be of 
 such a nature as to disturb the peace and public order on shore or in the port, 
 unless persons not of the crew take part therein, or unless the consuls-general, 
 consuls, vice-consuls and consular agents request the assistance of the said authori- 
 ties to carry out their decisions or to uphold their authority. 
 
 Article 15. — Whereas, in China the same favors are to be reciprocally 
 accorded to the consuls-general, consuls, vice-consuls and consular agents of the 
 Netherlands, therefore the consuls-general, consuls, vice-consuls and consular 
 agents of China, not engaged in trade nor any function or profession other than 
 their consular functions, shall be exempt from all military service, requisitions or 
 billeting, from pecuniary taxes in the place of military service and from any 
 personal tax, as well as from general or municipal taxes of a personal nature, 
 unless they are Dutch subjects. This exemption can never be extended so as to 
 include customs or other indirect or direct taxes. 
 
 The consuls-general, consuls, vice-consuls and consular agents who are not 
 Dutch subjects, even if they do not come under the stipulations of the first 
 paragraph of this article, are exempt from all military services, military requisi- 
 tions and all pecuniary taxes in the place of military service, inasmuch as in
 
 850 CHINA TREATIES AND AGREEMENTS 
 
 China the same privilege is granted to the consuls-general, consuls, vice-consuls 
 and consular agents of the Netherlands. 
 
 The consuls-general, consuls, vice-consuls and consular agents who are 
 subjects of the Netherlands, but who may have been permitted to exercise con- 
 sular functions conferred by the Chinese Government, are obliged to pay all 
 taxes or contributions of whatever nature they might be. 
 
 Article 16. — The consuls-general, consuls, vice-consuls and consular agents, 
 as well as consular students, chancellors and secretaries of China shall enjoy all 
 powers, privileges, exemptions and immunities in the possessions or colonies of the 
 Netherlands which are or may be granted in future to the officers of similar rank 
 of the most favored nation. 
 
 Article 17. — The present convention is entered into for a period of five 
 years and shall go in force four months from the date of the exchange of ratifica- 
 tions, which exchange shall take place at The Hague within four months after the 
 signing of the convention, or sooner if possible. f 
 
 Unless one of the two high contracting parties notifies the other at least one 
 year before the expiration of this period, of its intention to abrogate the conven- 
 tion, the latter shall remain in force for one year from the date of its denunciation 
 by one of the high contracting parties. 
 
 In testimony whereof the respective plenipotentiaries have signed the present 
 convention and affixed their seals thereto. 
 
 Done at Peking, the eighth day of the month of May, one thousand nine 
 hundred and eleven, corresponding to the tenth day of the fourth moon of the 
 third year of Hsiian Tung. . 
 
 (L. S.) Beelaerts van Blokland. 
 (L. S.) Lou Tseng Tsiang, 
 
 Note. 
 
 Simultaneously with the conclusion of this convention, the following notes (as trans- 
 lated from the French texts in Staatshlad, 1912, No. 280) were exchanged between the 
 plenipotentiaries : 
 
 " The Netherlands Minister at Peking to His Excellency Mr. Loii Tseng Tsiang, Envoy 
 Extraordinary and Minister Plenipotentiary of His Majesty the Emperor of China near 
 the Queen of the Netherlands, temporarily at Peking. 
 
 "Peking, May 8, 1911. 
 " Mr. Minister, 
 
 " The consular convention that we have signed to-day speaks in several places of 
 ' Chinese subjects ' and of ' Netherlands subjects.' 
 
 " In consequence of differing legislation of our two countries in the matter of nation- 
 ality, these expressions might give rise to doubts that it seems preferable to dispose of 
 at this time. For this purpose I have the honor to propose to your Excellency that it 
 should be agreed on either side that in the application of the present convention, which 
 has no other purpose than to determine the rights, duties, etc. of the Chinese consular 
 officials in the possessions or colonies of the Netherlands, the doubts to which these two 
 expressions might give rise will be settled, in the possessions and colonies of the Nether- 
 lands, in conformity with the legislation in force in those possessions or colonies. 
 
 " I avail myself of this occasion, etc. 
 
 (Sgd.) "Beelaerts van Blokland." 
 
 t Ratifications exchanged July 28, 1911.
 
 NUMBER 1911/4: MAY 8, 1911 861 
 
 "His Excellency Lou Tseng Tsiging to the Netherlands Minister at Peking. 
 
 " Waizvupu, Peking, 
 "The 10th day of the 4th Aloon of the 3rd year 
 of Hsuan T'ung, corresponding to May 8, 1911. 
 *' Mr. Minister, 
 
 " In reply to your Excellency's note of to-day's date, I have the honor to make known 
 to you that I am authorized to agree with you that in so far as concerns the application 
 of the consular convention that we have signed to-day and which has no other purpose 
 than to determine the rights, duties, etc., of the Chinese consular officials in the posses- 
 sions or colonies of the Netherlands, the doubts to which the expressions ' Chinese sub- 
 jects ' and ' Netherlands subjects ' might give rise will be settled, in the possessions and 
 colonies of the Netherlands, in conformity with the legislation in force in those posses- 
 sions or colonies. 
 
 " I avail myself of this occasion, etc. 
 
 (Sgd.) "Lou Tseng Tsiang." 
 
 NUMBER 1911/4. 
 
 GREAT BRITAIN AND CHINA. 
 Agreement relating to Opium* — May 8, 1911. 
 
 Under the arrangement concluded between His Majesty's Government and 
 the Chinese Government three years ago f His Majesty's Government undertook 
 that, if during the period of three years from the 1st day of January, 1908, the 
 Chinese Government should duly carry out the arrangement on their part for 
 reducing the production and consumption of opium in China, they would continue 
 in the same proportion of 10 per cent, the annual diminution of the export of 
 opium from India until the completion of the full period of ten years in 1917. 
 
 His Majesty's Government, recognising the sincerity of the Chinese Govern- 
 ment and their pronounced success in diminishing the production of opium in 
 China during the past three years, are prepared to continue the arrangement of 
 1907 for the unexpired period of seven years on the following conditions : — 
 
 Article 1. — From the 1st day of January, 1911, China shall diminish annu- 
 ally for seven years the production of opium in China in the same proportion as 
 the annual export from India is diminished in accordance with the terms of. this 
 agreement and of the annex appended hereto until total extinction in 1917. 
 
 Article 2. — The Chinese Government have adopted a most rigorous policy 
 
 * Text as printed in British Treaty Series, 1911, No. 13. Printed also in Customs, vol. 
 I, p. 669; Hsiian T'ung Tiao Viieh, vol. II, p. 12; Am. Int. Lazv Journal, Supplement, 1911, 
 p. 238. 
 
 In connection with this agreement, see the international opium convention of January 
 23, 1912 (Xo. 1912/2, post) ; also the Shanghai and Hongkong opium combines' agree- 
 ment of May 1, 1915 (No. 1915/5, post), and the Shanghai opium combine's agreement of 
 January 28, 1917 (No. 1917/3, post). 
 
 t The arrangement referred to, generally known as the Ten Year Agreement, was arrived 
 at in the course of correspondence between the British Legation at Peking and the Wai 
 Wu Pu, in December, 1907, and January, 1908. The substance of that agreement, as 
 printed in For. Rel., 1908, p. 80, and in China, 1908, No. 2, is given in Note 2 to this docu- 
 ment, post, p. 865.
 
 862 CHINA TREATIES AND AGREEMENTS 
 
 for prohibiting the production, the transport, and the smoking of native opium, 
 and His Majesty's Government have expressed their agreement therewith and 
 wilhngness to give every assistance. With a view to facilitating the continuance 
 of this work, His jVIajesty's Government agree that the export of opium from 
 India to China shall cease in less than seven years if clear proof is given of the 
 complete absence of production of native opium in China. 
 
 Article 3. — His Majesty's Government further agree that Indian opium 
 shall not be conveyed into any province in China which can establish by clear 
 evidence that it has effectively suppressed the cultivation and import of native 
 opium. 
 
 It is understood, however, that the closing of the ports of Canton and Shang- 
 hai to the import of Indian opium shall not take effect except as the final step on 
 the part of the Chinese Government for the completion of the above measure. 
 
 Article 4. — During the period of this agreement it shall be permissible for 
 His Majesty's Government to obtain continuous evidence of the diminution of 
 cultivation by local enquiries and investigation conducted by one or more British 
 officials, accompanied, if the Chinese Government so desire, by a Chinese official. 
 Their decision as to the extent of cultivation shall be accepted by both parties to 
 this agreement. 
 
 During the above period one or more British officials shall be given facilities 
 for reporting on the taxation and trade restrictions on opium away from the 
 treaty ports. 
 
 Article 5. — By the arrangement of 1907 His Majesty's Government agreed 
 to the dispatch by China of an official to India to watch the opium sales on condi- 
 tion that such official would have no power of interference. His Majesty's 
 Government further agree that the official so dispatched may be present at the 
 packing of the opium on the same condition. 
 
 Article 6. — The Chinese Government undertake to levy a uniform tax on 
 all opium grown in the Chinese Empire. His Majesty's Government consent to 
 increase the present consolidated import duty on Indian opium to 350 taels per 
 chest of 100 catties, such increase to take effect as soon as the Chinese Govern- 
 ment levy an equivalent excise tax on all native opium. 
 
 Article 7. — On confirmation of this agreement, and beginning with the 
 collection of the new rate of consolidated import duty, China will at once cause 
 to be withdrawn all restrictions placed by the provincial authorities on the whole- 
 sale trade in Indian opium such as those recently imposed at Canton and else- 
 where, and also all taxation on the wholesale trade other than the consolidated 
 import duty, and no such restrictions or taxation shall be again imposed so long 
 as the additional article to the Chefoo Agreement remains as at present in force. 
 
 It is also understood that Indian raw opium, having paid the consolidated 
 import duty, shall be exempt from any further taxation whatsoever in the port 
 of import. 
 
 Should the conditions contained in the above two clauses not be duly 
 observed, His Majesty's Government shall be at liberty to suspend or terminate 
 this agreement at any time. 
 
 The foregoing stipulations shall not derogate in any manner from the force
 
 NUBMER 1911/4: MAY 8, 1911: ANNEX 863 
 
 of the laws already published or hereafter to be published by the Chinese Govern- 
 ment to suppress the smoking of opium and to regulate the retail trade in the 
 drug in general. 
 
 Article 8. — With a view to assisting China in the suppression of opium, His 
 Majesty's Government undertake that from the year 1911 the Government of 
 India will issue an export permit with a consecutive number for each chest of 
 Indian opium declared for shipment to or for consumption in China. 
 
 During the year 1911 the number of permits so issued shall not exceed 
 30,600, and shall be progressively reduced annually by 5,100 during the remaining 
 six years ending 1917. 
 
 A copy of each permit so issued shall before shipment of opium declared for 
 shipment to or for consumption in China be handed to the Chinese official for 
 transmission to his Government or to the Customs authorities in China. 
 
 His Majesty's Government undertake that each chest of opium for which such 
 permit has been granted shall be sealed by an official deputed by the Indian 
 Government, in the presence of the Chinese official if so requested. 
 
 The Chinese Government undertake that chests of opium so sealed and 
 accompanied by such permits may be imported into any treaty port of China 
 without let or hindrance if such seals remain unbroken. 
 
 Article 9. — Should it appear on subsequent experience desirable at any time 
 during the unexpired period of seven years to modify this agreement or any part 
 thereof, it may be revised by mutual consent of the two high contracting parties. 
 
 Article 10. — This agreement shall come into force on the date of signature. 
 
 In witness whereof the undersigned, duly authorised thereto by their respec- 
 tive Governments, have signed the same and affixed thereto their seals. 
 
 Done at Peking in quadruplicate (four in English and four in Chinese) this 
 8th day of May, in the year 1911, being the 10th day of the 4th month of the 
 3rd year of Hsiian T'ung. 
 
 (L. S.) J.N.Jordan. 
 (Signed in Chinese characters), 
 (L. S.) Tsou Chia-lai. 
 
 Annex. 
 
 On the date of the signature of the agreement a list shall be taken by the 
 Commissioners of Customs, acting in concert with the colonial and consular 
 officials, of all uncertified Indian opium in bond at the treaty ports, and of all 
 uncertificated Indian opium in stock in Hong Kong which is bond fide intended 
 for the Chinese market, and all such opium shall be marked with labels, and on 
 payment of 110 taels consolidated import duty shall be entitled to the same treaty 
 rights and privileges in China as certificated opium. 
 
 Opium so marked and in stock in Hong Kong must be exported to a Chinese 
 port within seven days of the signature of the agreement.
 
 364 CHINA TREATIES AND AGREEMENTS 
 
 All Other uncertificated Indian opium shall, for a period of two months from 
 the date of the signature of the agreement, be landed at the ports of Shanghai 
 and Canton only, and at the expiration of this period all treaty ports shall be 
 closed to uncertificated opium, provided the Chinese Government have obtained 
 the consent of the other treaty Powers. 
 
 The Imperial Maritime Customs shall keep a return of all uncertificated 
 Indian opium landed at Shanghai and Canton during this period of two months, 
 other than opium marked and labelled as provided above, and such opium shall 
 pay the new rate of consolidated import duty, and shall not be re-exported in bond 
 to other treaty ports. 
 
 In addition to the annual reduction of 5,100 chests already agreed upon, His 
 Majesty's Government agree further to reduce the import of Indian opium 
 during each of the years 1912, 1913, and 1914 by an amount equal to one-third 
 of the total ascertained amount of the uncertificated Indian opium in bond in 
 Chinese treaty ports and in stock in Hong Kong on the date of signature plus 
 one-third of the amount of uncertificated Indian opium landed during the ensuing 
 two months at Shanghai and Canton. 
 
 Done at Peking this 8th day of May in the year 1911, being the 10th day of 
 the 4th month of the 3rd year of Hslian T'ung. 
 
 (l. s.) J. N. Jordan, 
 (Signed in Chinese characters), 
 
 (l. s.) Tsou Chia-lai. 
 
 Sir J. Jordan to Prince Ch'ing. 
 
 Your Highness, Peking, May 8, 1911. 
 
 With reference to the Opium Agreement signed this day and the enquiry 
 which your Highness's Board addressed to me regarding the taxation to be im- 
 posed on certificated opium, I have the honour to state that certificated opium 
 removed from bond at the treaty ports or imported into China after the signa- 
 ture of the agreement will be liable to the new duty of 350 taels per chest of 
 100 catties. 
 
 I avail, &c. 
 
 J. N. Jordan. 
 
 Prince Ch'ing to Sir J. Jordan. 
 (Translation.) 
 Sir, Peking, May 8, 1911. 
 
 With reference to the statement in the 6th article of the Opium Agreement 
 which has been signed to-day to the effect that the Chinese Government will levy 
 a uniform excise tax on all native opium, I have the honour to inform your 
 Excellency that the Board of Finance has now decided to levy a tax of 230 taels 
 on every 100 catties of native opium, which is equivalent to the increased rate of 
 duty on Indian opium, such tax to take effect at the same time as the new duty 
 on Indian opium. 
 
 I avail &c. 
 
 Prince Ch'ing.
 
 NUMBER 1911/4: MAY 8, 1911: NOTES 865 
 
 Note 1. 
 
 An imperial edict, of which the translation from the Chinese original is as follows, 
 was issued on May 9, 1911, in pursuance of this agreement: 
 
 Imperial Edict supplementing Anglo-Chinese Opium Agreement, May 9, 191 1. 
 
 " On May 9, 1911, the grand secretariat received an imperial edict based on a memorial 
 submitted by the Board of Foreign Affairs containing supplementary regulations govern- 
 ing the prohibition of opium. 
 
 " A period of ten years was formerly agreed upon for the purpose of gradually putting 
 a stop to the use of opium because the evil habit had become deeply ingrained and a 
 somewhat long period was necessary to put an end to it. But to ensure the absolute 
 removal of the evil as soon as possible action should be taken at once to the end that the 
 malady may be forever cured. 
 
 " The memorial received to-day from the Board of Foreign Afifairs states that three 
 years of the opium prohibition period having elapsed, supplementary regulations had 
 been agreed upon with the British Minister whereby within the seven unexpired years of 
 the period should native opium be entirely prohibited then the import of foreign opium 
 should also be entirely prohibited, and further that this procedure should also be applicable 
 in any one of the provinces. 
 
 " The prohibition of the import of foreign opium should be carried out with due 
 regard for the prohibition of the cultivation of native opium. It is now proposed that 
 the matter be carried out by provinces. Should native opium be prohibited one day earlier 
 then the importation of foreign opium should be stopped one day earlier. The plan pro- 
 posed is satisfactory. 
 
 '' As regards increasing the duties and likin taxes on foreign opium and increasing the 
 duties at the same time on the native drug, it should be stated that this is done with a 
 view to concealing prohibition under the guise of a tax. This proposal should be put 
 into effect at once. 
 
 " The various restrictions imposed on wholesale trade in opium in the provinces and 
 the farming of the tax on opium should be stopped at once in order that confusion may 
 be avoided. 
 
 " Additional taxes should be newly imposed but only sufficient to cover the deficiency. 
 Although the finances are limited, the Throne, having the welfare of the people at heart, 
 does not desire to retain a source of revenue from opium. 
 
 " After the prohibition of the importation of opium has been put into effect in the 
 provinces, measures should be taken to supply the loss in revenue thereby resulting. At 
 this time we can only- issue a stern prohibition in the hope of getting at the root of the 
 matter. The Boards of the Interior and of Finance and the Viceroys and Governors of 
 the provinces are mstructed to carry out strictly the measures relating to the prohibition 
 of the cultivation, the smoking, and the importation of opium, and to issue orders at 
 once with a view to arriving at entire prohibition. It is hoped that thereby harmony may 
 be maintained between government and people and international friendship fostered. 
 
 " Respect this ! 
 
 (Signed) "I K'uang (Prince Ch'ing). 
 
 " [Seal of the Prince Regent.] " 
 
 " Na T'ung. 
 
 " Hsu Shih-ch'ang. 
 
 " Tsou Chia-lai. 
 
 Note 2. 
 
 Ten Year Agreement for Suppression of Exports of Opium from India, 
 January 24(?), 1908. 
 
 " 1. The entire export of opium from India to any country whatsoever is limited to 
 51,000 chests annually and, beginning with 1908, this amount shall be reduced annually by 
 5,100 chests, so that at the end of 10 years the entire export shall be terminated. 
 
 " 2. China shall dispatch officials to Calcutta to keep watch over the packing and 
 export of opium, but who shall meddle with no other matters. 
 
 " 3. The duty on foreign opium shall be doubled ; but further consideration shall be 
 given to the subject before the tax on native opium is increased. 
 
 " 4. Opium prepared in Hongkong shall not be exported to China. Each nation shall 
 take measures to prevent the smuggling of opium into its own territory, and the importa- 
 tion of prepared opium into China from Hongkong and vice versa shall be publicly 
 prohibited. 
 
 " 5. The sale and smoking of opium in the foreign concessions of China are to be
 
 856 CHINA TREATIES AND AGREEMENTS 
 
 stopped. If the Chinese authorities begin to put these rules into operation without the 
 concessions, then the municipal councils shall without further notification put them into 
 effect within the concessions. 
 
 " 6. The restriction of the importation of morphia and hypodermic needles must wait 
 until all the treaty powers consent thereto." 
 
 NUMBER 1911/5. 
 
 FRANCE (Banque de I'lndo-Chine), GREAT BRITAIN (Hongkong & Shang- 
 hai Banking Corporation), GERMANY (Deutsch-Asiatische Bank), 
 UNITED STATES (American Group) AND CHINA. 
 
 Final agreement for the Hnkuang Imperial Government Railways* — 
 
 May 20, 1911. 
 
 THIS AGREEMENT is made at Peking on the twenty second day of the 
 fourth month of the Third year of the Emperor Hsuan T'ung, corresponding to 
 the twentieth day of May, One thousand nine hundred and eleven, Western 
 Calendar, and the Contracting Parties are : 
 
 His Excellency the KUNG-PAO SHENG HSUAN-HUAI. Minister of 
 POSTS AND COMMUNICATIONS, duly authorized by IMPERIAL DE- 
 CREE to act on behalf of the IMPERIAL GOVERNMENT OF CHINA, of 
 the one part, 
 AND 
 
 THE DEUTSCH-ASIATISCHE BANK, 
 
 THE HONGKONG & SHANGHAI BANKING CORPORATION, 
 THE BANQUE DE LTNDO-CHINE, AND 
 
 Messrs. J. P. Morgan & Company, Messrs. Kuhn, Loeb & Company, The 
 First National Bank, and The National City Bank, all of New York, consti- 
 tuting THE AMERICAN GROUP, hereinafter called the *' BANKS " of 
 the other part, WITNESSETH as follows : 
 
 Article I. — The Imperial Government of China authorizes the Banks to 
 issue a Five per cent Gold Loan for an amount of Six Million Pounds Sterling 
 (£6,000,000). The Loan shall be of the date on which the bonds are issued to the 
 public, and shall be called " THE IMPERIAL CHINESE GOVERNMENT 
 FIVE PER CENT HUKUANG RAILWAYS SINKING FUND GOLD 
 LOAN OF 19n." 
 
 Article II. — This Loan is designed to provide capital, first — 
 For the redemption at a premium of Two and one-half per cent, with 
 accrued interest, of certain unredeemed Gold Bonds of the total par value of 
 Dollars Two million two hundred and twenty-two thousand United States 
 Currency, (G. $2,222,000) issued by The American China Development Com- 
 pany on behalf of the Imperial Chinese Government, and secondly — 
 
 For the construction of a Government railway main line from Wuchang, 
 the capital of the Hupei Province, through Yo-chou and Chang-sha, the capital 
 
 * Text as printed by the banking groups. Printed also in Wang, p. 547. 
 See Note 1 to this document, post, p. 880.
 
 NUMBER 1911/5: MAY 20, 1911 867 
 
 of the Hunan Province, to a point in the District of Yi-chang-hsien in the 
 Prefecture of Ch'en-chou on the southern boundary of Hunan, connecting with 
 the Kuang-tung section of the Canton-Hankow Railway hne, the total length of 
 this line, hereinafter known as " The Hupei-Hunan Section of the Canton- 
 Hankow Railway line," being an estimated distance of 1,800 Chinese li, or 900 
 kilometres, and of 
 
 A Government railway main line from a point at or near Kuangshui in the 
 Province of Hupei, connecting with the Peking-Hankow Railway line and passing 
 through Hsiangyang, and Chingmenchou to Ichang, an estimated distance of 
 1,200 Chinese li, or 600 kilometres, and from Ichang to Kueichoufu in the 
 Province of Szechuan, an estimated distance of 600 Chinese li, or 300 kilometres, 
 — this latter section of the main line having been added in substitution for the 
 branch line from Chingmenchou to Hanyang originally agreed upon, — the total 
 length of this main line, hereinafter known as " The Hupei Section of the 
 Szechuan-Hankow Railway line " being about 1,800 Chinese li, or 900 kilometres. 
 
 The survey lines shall be open to revision by the Ministry of Posts and 
 Communications. 
 
 The Chinese Imperial Government undertakes to call in, after having received 
 from the Banks application in writing to do so, the aforesaid Gold Bonds, and 
 the Banks will apply the amount necessary for the said redemption out of the 
 proceeds of the Loan, and will deliver the redeemed Bonds to the Chinese Gov- 
 ernment after having made the Bonds valueless. The Chinese Imperial Govern- 
 ment will, after receipt of the redeemed Bonds, cancel the inscription of the 
 pledge of the Canton-Hankow Railway Line in their archives, and will advise the 
 Banks in writing after having done this. 
 
 It is understood that any surplus of the nominal amount of Five hundred 
 thousand pounds Sterling (i500,000) hereby allotted for the redemption of the 
 Gold Bonds issued by the American China Development Company, aforesaid, 
 which may remain after complete redemption of those bonds, shall be allotted to 
 the above named Railway Lines. 
 
 Article Ill.f — After deduction of the amount required for the redemption 
 of the Gold Bonds referred to in Article II of this Agreement, the balance of the 
 Loan proceeds shall be solely devoted to the construction of the aforesaid 
 railway lines, including the purchase of land, rolling stock and other equip- 
 ment, and to the working of the lines, and to payment of interest on the Loan 
 during the period of construction, which is estimated at three years from the 
 actual beginning of the works, a longer period, however, being allowed for the 
 completion of the section from Ichang to Kuei-choufu in consideration of the 
 engineering difficulties to be encountered. Work shall be commenced simul- 
 taneously at Wu-chang, Chang-sha, Kuang-shui and Ichang within six months 
 after this Agreement has been signed, within which period the Banks shall notify 
 the Ministry of Posts and Communications that the sum of Six Hundred 
 Thousand Pounds Sterling (£600,000) has been placed at its disposal, in case 
 funds should be required for survey or construction purposes, or for ordering 
 of materials, and for the resumption by the Imperial Chinese Government of the 
 
 t See Note 2 to this document, post, p. 895.
 
 868 CHINA TREATIES AND AGREEMENTS 
 
 portion of these lines already constructed by the Provinces concerned, the said 
 sum to be held in Europe and/or in the United States of America or remitted to 
 China as the Ministry may direct as a first instalment on account of the proceeds 
 of the Loan. This amount of £600,000, or whatever portion thereof is actually 
 advanced, together with interest thereon at the rate of Six per cent per annum, 
 shall be deducted from the first proceeds of the sale of the Bonds. 
 
 It is understood that the lines of railway already constructed by the two 
 Provinces of Hupei and Hunan prior to the signature of this Agreement with 
 capital provided by those Provinces themselves, together with the property of 
 those two Provincial Railways shall henceforward be taken over by and incor- 
 porated in the Canton-Hankow and the Szechuan-Hankow Government Railways 
 Administration, and further that any supplementary funds which may be fur- 
 nished in the future by the Ministry of Posts and Communications on account of 
 a deficiency in the amount required for the construction of the Canton-Hankow 
 and Szechuan-Hankow main lines within the boundaries of the two Provinces of 
 Hupei and Hunan, as provided for in Article XV of the present Agreement, shall 
 also rank as capital of the Canton-Hankow and Szechuan-Hankow Railway main 
 lines within the boundaries of the two Provinces aforesaid. But the returns due 
 upon such capital shall not in any manner impair the arrangements for payment of 
 interest and repayment of principal of the present Loan. 
 
 Article IV. — The rate of interest for the Loan shall be Five per cent per 
 annum on the nominal principal, and shall be paid to the bondholders half-yearly. 
 The said interest shall be calculated from the date on which the Loan is issued 
 to the public, and shall be paid by the Imperial Chinese Government during the 
 time of construction either from the proceeds of the Loan or from other sources, 
 and afterwards, in the first place, out of the revenues of the railways, and then 
 from such other revenues as the Chinese Government may think fit to use for the 
 purpose, in half yearly instalments according to the amounts specified in the 
 schedule attached to this Agreement, and twelve days before their due dates, 
 Western Calendar, as calculated half-yearly from the date on which the Loan is 
 issued to the public. 
 
 Article V. — The term of the Loan shall be Forty Years. Repayment of 
 Principal shall commence after the expiry of Ten years from the date of the Loan 
 and except as provided in Article VI hereinafter, shall be made by yearly amorti- 
 zation to the Banks in half-yearly instalments out of the revenues of the lines, or 
 such other revenues as the Chinese Government may think fit to use for the 
 purpose, according to the amounts specified in the Schedule attached to this 
 Agreement, but twelve days before their due dates. Western Calendar, as calcu- 
 lated half-yearly from the date on which the loan is issued to the public. 
 
 Article VI. — If at any time after the lapse of Ten years from the date of 
 the Loan the Imperial Chinese Government should desire to redeem the whole out- 
 standing amount of the Loan or any part of it not yet due for repayment in accord- 
 ance with the Schedule of repayments hereto attached, it may do so up to the end 
 of the seventeenth year by payment of a premium of Two and one-half per cent 
 on the face value of the bonds, that is to say, by the payment of £102 10/- for 
 each £100 bond, and after the lapse of seventeen years without premium: but in 
 each and every case of such extra redemption the Imperial Chinese Government
 
 NUMBER 1911/5: MAY 20, 1911 869 
 
 will give six months previous notice in writing to the Banks and such redemption 
 shall be effected by additional drawings of bonds to take place on the date of 
 an ordinary drawing as provided for in the Prospectus of the Loan. 
 
 When the Loan has been fully repaid this Agreement will immediately become 
 null and void. Bonds and interest coupons which have matured will be collected 
 in due order and cancelled by the Banks as they are presented for payment and 
 v,-ill be delivered by them to the Chinese Ministers in Great Britain, Germany, 
 France and the United States of America. The Banks will refund in full to the 
 Imperial Chinese Government the amounts of any drawn bonds and/or interest 
 coupons which have not been presented for payment within thirty years from the 
 respective due dates for redemption or payment of interest. 
 
 Article VIL — The half-yearly payments due for amortization and interest 
 referred to in Articles IV and V, shall be made in accordance with the amounts 
 of the Schedule attached to this Agreement, and twelve days before their due 
 dates as fixed by Articles IV and V, in equal shares to the Banks by the Ministry 
 of Posts and Communications which shall hand to the Banks in Shanghai or 
 in Hankow, twelve days before the said due dates, funds in Shanghai " Kuei- 
 yuan " sycee or Hankow " Yang-li " sycee and/or coin of the National Cur- 
 rency (so soon as the said Currency shall have been effectively established) 
 sufficient to meet such payments in Gold in Europe and the United States of 
 America, exchange for which shall be settled with the Banks on the same day, 
 the Ministry of Posts and Communications having, however, the option of 
 settling exchange with the Banks simultaneously at any date or dates within six 
 months previous to any due date for the payment of interest and/or principal. 
 These payments may, however, be made in gold in Europe and/or in the United 
 States of America twelve days before their due dates if the Imperial Chinese 
 Government should happen to have gold funds bona fide at their disposal in 
 Europe and/or in the United States of America not remitted from China for 
 the purpose, and desire so to use them. 
 
 In reimbursement of expenses connected with the payment of interest and 
 repayment of principal of the Loan the Banks will receive from the Chinese 
 Government a commission of one quarter per cent on the Annual Loan service. 
 
 Article VIII. — The Imperial Government of China hereby engages that 
 the interest and principal of this Loan shall duly be paid in full and should 
 the revenues of the railways and/or the proceeds of the Loan not be sufficient 
 to provide for the due and full payment of interest and repayment of principal, 
 the Ministry of Posts and Communications shall memoralize the Throne and 
 the Imperial Government of China will thereupon make arrangements to ensure 
 that the amount of deficiency shall be met from other sources and handed over 
 to the Banks on the date upon which funds are required to complete full pay- 
 ment of interest and repayment of principal. 
 
 Article IX. t— The present Loan of Six Million Pounds (£6,000,000) 
 Sterling together with the second series thereof, provision for the issue of which 
 is made under the terms of Article XV hereinafter is hereby secured, in respect 
 to both principal and interest, as a first charge upon : — 
 
 t See exchange of communications, March 1 and 3, 1913, between the Minister of 
 Communications and the representatives of the banks, printed in Note 1, post, p. 888.
 
 870 CHINA TREATIES AND AGREEMENTS 
 
 1. Hupel General Lekin amounting to Two million (2,000,000) Haikwan 
 Taels a year. 
 
 2. Hupei Additional Salt Tax for River Defence amounting to Four 
 Hundred Thousand (400,000) Haikwan Taels a year. 
 
 3. Hupei New Additional Two Cash Salt Tax of September, 1908, 
 amounting to three hundred thousand (300,000) Haikwan Taels a year. 
 
 4. Hupei collection of Hukuang inter-provincial Tax on imported Rice, to 
 the amount of Two hundred and fifty thousand (250,000) Haikwan Taels a year. 
 
 5. Hunan General Lekin amounting to Two million (2,000,000) Haikwan 
 Taels a year. 
 
 6. Hunan Salt Commissioner's Treasury Regular Salt Lekin to the amount 
 of Two hundred and fifty thousand (250,000) Haikwan Taels a year. 
 
 The above Provincial Revenues amounting to a total of Five Million two 
 hundred thousand (5,200,000) Haikwan Taels a year, are hereby declared to be 
 free from all other Loans, Charges or Mortgages. 
 
 So long as principal and interest of this Loan are regularly paid, there shall 
 be no interference with these Provincial revenues ; but if principal or interest 
 of the Loan be in default at due date, theii, after a reasonable period of grace, 
 lekin and other suitable internal revenues of the Provinces of Hupei and Hunan 
 sufficient to provide the amounts above stated shall forthwith be transferred to, 
 and administered by the Imperial Maritime Customs in the interests of the 
 bondholders. And so long as this Loan or any part thereof shall remain unre- 
 deemed, it shall have priority, both as regards principal and interest, over all 
 future loans, charges and mortgages charged on the aforesaid Provincial 
 Revenues. No loan, charge or mortgage shall be raised or created which shall 
 take precedence of, or be on an equality with this Loan, or shall in any manner 
 lessen or impair its security over the aforesaid Provincial Revenues, and any 
 future loan, charge or mortgage charged on the said Provincial Revenues other 
 than the second series of the present loan provided for in Article XV aforemen- 
 tioned shall be made subject to this Loan, and it shall be so expressed in every 
 agreement for every such future loan, charge or mortgage. 
 
 After redemption of the existing gold Bonds referred to in Article H of 
 this Agreement it is understood and agreed that, so long as this Loan is unre- 
 deemed, the railways shall, under no circumstances, be mortgaged nor their 
 receipts given as security to any other party. 
 
 In the event of the Chinese Government, during the currency of this Loan 
 entering upon definite arrangements for the revision of the Customs tariff, 
 accompanied by stipulations for the decrease or abolition of lekin, it is hereby 
 agreed on the one hand, that such revision shall not be barred by the fact that 
 this Loan is secured by lekin and provincial revenues and, on the other hand, 
 that whatever lekin is required to provide the security of this loan shall neither 
 be decreased nor abolished except by previous arrangement with the Banks and 
 then only in so far as an equivalent is substituted for it in the shape of a first 
 charge upon the increase of Customs revenue consequent upon such revision. 
 
 Article X. — The Banks are hereby authorized to issue to the subscribers to 
 the Loan, bonds for the total amount of the Loan in Gold, for such amounts as 
 may appear advisable to the Banks. The form and language of the bonds shall
 
 NUMBER 1911/5: MAY 20, 1911 871 
 
 be settled by the Banks in consultation with the Ministry of Posts and Com- 
 munications or the Chinese Minister in Berlin, London, Paris or Washington: 
 they shall bear the facsimile of the signature of the Minister of Posts and 
 Communications and of his seal of office, in order to dispense with the necessity 
 of signing them all in person, and the Chinese Minster in Berlin and/or London 
 and/or Paris and/or Washington at the option of the Banks shall, previous to 
 the issue of the bonds, put his seal upon each bond, with a facsimile of his 
 signature, as a proof that the issue and sale of the bonds are duly authorized by 
 and binding upon the Imperial Chinese Government. The representatives of the 
 Banks in Berlin, London, Paris or New York, as the case may be, shall counter- 
 sign the bonds as Agents for the issue of the Loan. 
 
 In the event of any bond or bonds issued for this loan being lost, stolen or 
 destroyed, the Group and/or Bank or Banks concerned shall immediately notify 
 the Ministry of Posts and Communications and the Chinese Minister in Berlin, 
 London, Paris or Washington, as the case may be, who shall authorize the 
 Group and/or Bank or Banks concerned to insert an advertisement in the public 
 newspapers notifying that payment of such bond or bonds has been stopped, and to 
 take such other steps as may appear advisable or necessary according to the laws 
 and customs of the country concerned, and should any bond or bonds be destroyed 
 or should such lost or stolen bond or bonds not be recovered after a lapse of 
 time to be fixed by the Group and/or Bank or Banks concerned the Chinese 
 Minister in Berlin, London, Paris or Washington as the case may be, shall seal 
 and execute a duplicate bond or duplicate bonds for a like amount and hand the 
 same to the Group and/or Bank or Banks representing the owner or owners of 
 such lost, stolen or destroyed bond or bonds, which Group and/or Bank or Banks 
 shall pay all expenses in connection with such delivery and execution of such bond 
 or bonds for the account of the owner or owners of such bond or bonds. 
 
 Article XL — All bonds and coupons and payments made and received in 
 connection with the service of this Loan shall be exempt from all Chinese taxes 
 and imposts during the currency of this Loan. 
 
 Article XII. — All details necessary for the Prospectus and connected with 
 the payment of the interest and repayment of the principal of this Loan, not 
 herein explicitly provided for, shall be left to the arrangement of the Banks 
 in consultation with the Chinese Ministers in Berlin, London, Paris and Wash- 
 ington. The Banks are hereby authorized to issue the Prospectus of the Loan 
 as soon as possible after the signing of this Agreement ; and the Imperial Gov- 
 ernment will instruct the Chinese Ministers in Berlin, London, Paris and Wash- 
 ington to co-operate with the Banks in any matters requiring conjoint action, 
 and to sign the Prospectus of the Loan. 
 
 Article XIIL— This Loan of £6,000,000 Sterling shall be issued to the 
 public in one amount as soon as possible after the signature of this Agreement, 
 and not later than twelve months from the date thereof. The price of the bonds 
 to the Imperial Chinese Government shall be Ninety five per cent of their nominal 
 value. Subscriptions will be invited by the Banks in Europe, in the United 
 States of America and in China from Chinese, Europeans and Americans on 
 equal conditions, preference being given to the application of the Chinese Gov- 
 ernment provided such application be made not less than four days before the
 
 872 CHINA TREATIES AND AGREEMENTS 
 
 issue of the Prospectus to the public. Seven days' notice of the issue of the 
 Prospectus will be given by the Banks to the Imperial Chinese Government. 
 
 Article XIV. § — The proceeds of the Loan shall be placed to the credit of 
 a " Hukuang Government Railways Account " with the Deutsch-Asiatische 
 Bank, the Hongkong & Shanghai Banking Corporation, and the Banque de I'lndo- 
 Chine in China, Berlin, London or Paris as the case may be, and with the Amer- 
 ican Group in New York or such Banks in China as from time to time shall 
 be designated by the American Group, the International Banking Corporation 
 being now so designated. Payments of the loan proceeds into the credit of 
 this account shall be made in instalments and on dates conforming to the condi- 
 tions allowed to the subscribers to the loan. 
 
 Interest at the rate of 3% per annum shall be granted on the credit balance 
 of the portion of this account kept in Berlin, London, Paris or New York, and 
 interest on the credit portion kept in China by the above Banks, will be allowed 
 at the Banks' rate for current accounts to be arranged. 
 
 Subject to the payments and deductions to be made from the loan proceeds 
 in terms of Articles II and III of this Agreement the Banks will hold the net 
 balance with accrued interest to the order of the Ministry of Posts and Communi- 
 cations. 
 
 Transfers of the loan funds to China in amounts not exceeding Two hundred 
 thousand Pounds Sterling (£200,000) transferred in any one week, will be made 
 by the Ministry of Posts and Communications at its discretion, the tranfers being 
 effected through the Deutsch-Asiatische Bank, the Hongkong & Shanghai Bank- 
 ing Corporation, the Banque de I'lndo-Chine, and/or the Bank or Banks to be 
 designated by the American Group, the International Banking Corporation being 
 now so designated. 
 
 Transfers of the loan funds to China from the Banks in Europe and 
 America, and transfers from the Banks in China to the Chinese Banks which 
 are hereinafter designated shall be made as nearly as possible in equal amounts 
 from each of the Banks, the rate of exchange for each transfer from Europe and 
 America being settled simultaneously with the transferring Banks, either on 
 the day on which such transfer is to be made, or at the option of the Ministry 
 of Posts and Communications, on any date or dates within six months previous 
 to the day on which the transfer is to be made. In the event of equal transfers 
 being found to be impracticable a mutually satisfactory procedure for making 
 the transfers above referred to shall be arranged between the Ministry of Posts 
 and Communications and the Banks. 
 
 The transferred funds, to the extent of one half of the net balance of the 
 
 Loan proceeds above referred to may, at the discretion of the Ministry of Posts 
 
 and Communications, be deposited in a Hukuang Government Railways Account 
 
 with the Bank of Communications (Chiao-Tung Bank) and/or with the Ta- 
 
 Ching Government Bank, which Banks have been designated by the Ministry of 
 
 Posts and Communications as its Agents for this purpose, and the Imperial 
 
 Chinese Government hereby declares itself responsible for all the funds of this 
 
 Loan deposited with the said Chinese Banks. 
 
 § See exchange of communications, March 1 and 3, 1913, between Minister of Com- 
 munications and representatives of banks; also, memorandum of September 12, 1913, 
 printed in Note 1, post, pp. 888, 889.
 
 NUMBER 1911/5: MAY 20, 1911 873 
 
 The Ministry of Posts and Communications shall from time to time make 
 transfers from the loan funds held in China by the Banks and by the designated 
 Chinese Banks to the credit of a construction account for the Hupei section 
 of the Szechuan-Hankovv Railway Line with the Deutsch-Asiatische Bank and 
 of a construction account for the Hupei-Hunan section of the Canton-Hankow 
 Railway Line with the Hongkong and Shanghai Banking Corporation, in amounts 
 sufficient to cover one month's construction estimates in advance, so as to insure 
 the uninterrupted continuance of construction. The Ministry of Posts and 
 Communications shall hand to the Banks, for the information of the Auditors 
 (hereinafter referred to), quarterly statements of the loan funds held on 
 deposit by the aforesaid designated Chinese Banks, and these funds shall not 
 be withdrawn from the said Banks except for the purpose of transfer to the con- 
 struction accounts above named. Funds shall be drawn from these construction 
 accounts in sycee by the Managing Director as hereinafter provided, and it will 
 rest with the Managing Director under the instructions of the Ministry of 
 Posts and Communications to make all necessary arrangements for the distribu- 
 tion of such funds through Chinese Banks or otherwise to the points where 
 they are required. 
 
 Requisitions upon these Construction Accounts will be drawn in amounts to 
 suit the progress of construction of the railway lines by orders upon the Deutsch- 
 Asiatische Bank or the Hongkong & Shanghai Banking Corporation signed by 
 the Managing Director of the line concerned or, in his absence, by his duly 
 authorized representative, who shall moreover, two days previous to the pre- 
 sentation of such order, issue in duplicate a certificate stating clearly the object 
 for which the funds are to be drawn, handing one copy to the Auditor concerned 
 (hereinafter referred to) and one copy to the Bank concerned. If the Auditor 
 should find that there are irregularities in the payments to be made, he may in 
 the first place ask the Managing Director for specific explanations, and if the 
 Managing Director is unable to furnish definite explanations, the Auditor may 
 refer the matter to the Ministry of Posts and Communications for its instructions. 
 
 The Accounts of the Railways shall be kept in Chinese and English in 
 accordance with accepted modern methods, and will be supported by all necessary 
 vouchers. During the period of construction the said accounts and vouchers will 
 be open at any time to the inspection of two Auditors for the Hupei-Hunan 
 section of the Canton-Hankow Railway Line, and the Hupei section of the 
 Szechuan-Hankow Railway Line respectively, appointed and paid by the Banks, 
 whose duty it will be to satisfy the Banks as to the due expenditure of the loan 
 funds in accordance with the provisions of Article HI of this Agreement, and 
 to certify to monthly statements of the foreign materials purchased by the 
 Railway Administration under the provisions of Article XVHI hereinafter. 
 The Railway Administration will publish annually upon the close of its financial 
 year a Report in the Chinese and English languages, showing the working ac- 
 counts and traffic receipts of the railways, which Reports shall be procurable by 
 the public on application. 
 
 Article XV. — H after the deduction of the amount required for the re- 
 demption of the Gold Bonds referred to in Article H of this Agreement, and of 
 the sums necessary for the service of interest on the Loan during the time of
 
 874 CHINA TREATIES AND AGREEMENTS 
 
 construction, the balance of the Loan proceeds, with accrued interest, should 
 not be sufficient to complete the construction and equipment of the railway lines 
 named in Article II of this Agreement, the amount of deficiency shall be pro- 
 vided, in the first place, from such Chinese funds as may be available so as to 
 permit of the uninterrupted continuance of the work of construction, and any 
 balance then uncovered shall be supplemented by the issue by the Banks, under 
 the terms of the present Agreement, of a second series of the present Loan, for 
 an amount not exceeding Four Million Pounds (£4,000,000) Sterling. This 
 second series shall be secured pari passu as an equal charge in every respect 
 on the internal revenues specified in Article IX of this Agreement, and the time 
 of its issue shall be left to the discretion of the Banks. Should foreign capital 
 still be required for the completion of the Railway Lines aforesaid it shall be 
 provided by a further loan to be issued by the Banks on terms to be arranged. 
 If after the completion of the lines there should be a balance at the credit of 
 the Railways Account, such unused balance will be transferred to the credit 
 of the Interest Reserve Fund, hereinafter mentioned in Article XX, as a provision 
 for payments for which the Imperial Chinese Government is responsible under 
 this Agreement, or will be devoted, if necessary, to the improvement of these 
 railways or otherwise to their advantage. 
 
 Article XVI. — If before the publication of the Prospectus for the issue of 
 the Loan any political or financial crisis should take place by which the markets 
 and the prices of existing Chinese Government Stocks are so afifected as to render, 
 in the opinion of the Banks, the successful issue of this Loan impossible on the 
 terms herein named, the Banks shall be granted a reasonable extension of time 
 for the performance of their contract. If within this time limit, to be arranged, 
 the Loan shall not have been issued, then this contract shall become null and 
 void, and any advances made by the Banks under the provisions of Article III of 
 this Agreement, shall be repaid by the Chinese Government with accrued interest, 
 but without any other compensation or remuneration whatsoever. 
 
 Article XVII. — The construction and control of the railway lines shall be 
 entirely and exclusively vested in the Imperial Chinese Government. For the 
 work of construction the Imperial Chinese Government will select for appoint- 
 ment a fully qualified British Engineer-in-chief for the Hupei-Hunan section 
 of the Canton-Hankow railway line from Wuchang to Yichang-hsien, and a 
 fully qualified German Engineer-in-chief for the Kuangshui-Ichang section of 
 the Szechuan-Hankow railway line, with a fully qualified American Engineer-in 
 Chief for the section of that line from Ichang to Kueichoufu at the same time 
 informing the Banks of the selection made. If the Banks have objections to ofifer 
 against the Engineers-in-chief thus selected for appointment, they shall, in stating 
 their objections, give definite reasons therefor. The said Engineers-in-chief 
 shall be under the orders of the Director General and the Managing Directors 
 of the respective lines or, in their absence, of their duly authorized representatives, 
 and will carry out all the wishes of the Ministry of Posts and Communications 
 with regard to the plan and construction of the lines. In their general conduct 
 they shall pay all due respect to the Ministry of Posts and Communications, the 
 Director General and the Managing Directors. The terms of their respective 
 agreements will be arranged by the Ministry of Posts and Communications.
 
 NUMBER 1911/5: MAY 20, 1911 875 
 
 Whenever appointments are to be made or functions defined of the technical 
 members of the railway stafT, as well as in the case of their dismissal, the Director 
 General, the Managing Director or, in his absence his duly authorized repre- 
 sentative, will act in consultation with the Engineer-in-Chief concerned, and in 
 the case of disagreement the matter will be referred to the Ministry of Posts 
 and Communications, whose decision shall be final. 
 
 After completion of construction, and during the currency of this Loan, the 
 Imperial Chinese Government will continue to employ Europeans and/or Amer- 
 icans as Engineers-in-Chief of the said railway lines, these appointments being 
 made without reference to the Banks. 
 
 Article XVIII. — For the Hupei-Hunan section of the Canton-Hankow 
 railway line, and the Hupei section of the Szechuan-Hankow railway line respect- 
 ively (a) The British & Chinese Corporation, Limited and (b) the Deutsch- 
 Asiatische Bank will act as Agents of the Railway Administration during con- 
 struction for the purchase of all materials, plant and goods required to be im- 
 ported from abroad. From this category rails and their accessories are excepted ; 
 for the purchase of which the Ministry of Posts and Communications has mem- 
 orialized the Throne recommending that they should be manufactured and sup- 
 plied by the Hanyang Iron Works. Their price will be settled by the Ministry 
 of Posts and Communications with the Hanyang Iron Works, after comparison 
 with the current quotations for rails purchased by other lines from Europe or 
 America. No delay will be allowed, and it is understood that if the Hanyang 
 Iron Works are unable to supply the requirements of the lines in question in 
 such manner as to insure uninterrupted construction, the Purchasing Agents will 
 be instructed to procure from abroad the additional supplies required. For all 
 important purchases of materials tenders shall be called for by the Director 
 General or the Managing Director concerned : in the case of all tenders, indents 
 and orders for the importation of goods and materials from abroad, the said 
 Agents shall purchase the materials required on the terms most advantageous 
 to the railways, and shall charge the original net cost of the same, plus a com- 
 mission of five per cent (5%). It is understood that no orders for materials 
 shall be executed or any expenditure incurred without due authorization by the 
 Managing Director concerned. 
 
 In return for payment of commission as above stated the British & Chinese 
 Corporation, Limited, and the Deutsch-Asiatische Bank as Agents for the re- 
 spective railway lines, shall be prepared to superintend the purchase of all 
 foreign materials required for their construction and equipment, which shall be 
 purchased in the open market at the lowest rate obtainable, it being understood 
 that all such materials shall be of good and satisfactory quality and that the 
 aforesaid Agents will avail themselves of the services of engineering experts to be 
 selected by the Ministry of Posts and Communications for the inspection of such 
 materials. The fees of these Inspectors shall be borne in equal shares by the 
 Ministry of Posts and Communications and the Purchasing Agents. At equal 
 rates and qualities goods of British, French, German and American manufacture 
 shall be given impartial preference over other goods of foreign origin. j| The 
 Railway Administration of the Ministry of Posts and Communications reserves 
 
 ^ See Note 3 to this document, post, p. 897.
 
 376 CHINA TREATIES AND AGREEMENTS 
 
 the right, while paying the above stipulated commission to the said Agents in 
 respect of all purchases of foreign materials, to avail itself of the services of other 
 Agents in China, or abroad, should it see fit to do so. 
 
 The most favorable shipping and insurance rates are to be secured and state- 
 ments thereof together with original invoices and Inspectors' certificates are to 
 be submitted to the Director General and the Managing Director concerned: 
 all return commissions and rebates of every description shall be credited to the 
 railways, and all purchases made by the Agents on behalf of the railways shall 
 be supported by manufacturers' original invoices and Inspectors' certificates. 
 No commission shall be paid to the Agents except as above provided; but it 
 is understood that the Railway Administration shall provide out of railway funds 
 for the remuneration of Consulting Engineers whenever their services are en- 
 gaged. 
 
 With a view to the encouragement of Chinese industries, preference will be 
 given, at equal prices and qualities, over British, French, German, American or 
 other foreign goods to Chinese materials and goods manufactured in China, such 
 cases being left to the decision, in consultation with the Engineers-in-Chief, of 
 an Inspector appointed by the Ministry of Posts and Communications. No com- 
 mission will be paid on purchases of such Chinese materials and goods. 
 
 It is understood and agreed that, after the construction of the lines is com- 
 pleted, the British & Chinese Corporation, Limited, and the Deutsch-Asiatische 
 Bank will be given the preference for Agency business for the respective lines, 
 during the currency of the Loan, for the supply of foreign materials which the 
 Railway Administration may require, on terms to be hereafter mutually agreed 
 upon. 
 
 Article XIX. — Should the Imperial Chinese Government itself hereafter 
 consider it desirable to construct extensions in connection with the railway lines 
 named in Article II of this agreement in order that the interests of the country 
 may be better served, such extensions shall be built by the Imperial Chinese Gov- 
 ernment with funds at its disposal from Chinese sources, but if foreign capital 
 is required, and the terms offered by the Banks are as favorable as those offered 
 by others preference will be given to the Banks. 
 
 Article XX. — After payment of interest and repayment of principal of this 
 Loan for any current year, the Railway Administration will deposit with the 
 Banks in Shanghai or Hankow any surplus of the net revenue of the railway lines 
 for that year up to the amount required to pay the following year's instalments 
 of interest on the Loan, the rate of interest on the deposit being arranged with 
 the Banks from time to time with due regard to the conditions of the market. 
 
 Article XXI. — All expenses in connection with the flotation and issue of 
 this Loan, such as underwriting, commission and brokerage, telegraph charges, 
 advertising, postage, engraving and printing of Prospectus and bonds, stamp and 
 legal fees, shall be borne by the Banks. 
 
 Article XXII. — The Deutsch-Asiatische Bank, The Hongkong & Shanghai 
 Banking Corporation, the Banque de I'lndo-Chine and the American Group shall 
 take the Loan in equal shares and without responsibility for each other. 
 
 Article XXIII. — The Deutsch-Asiatische Bank, the Hongkong & Shanghai 
 Banking Corporation, the Banque de I'lndo-Chine and the American Group may,
 
 NUMBER 1911/5: MAY 20, 1911 877 
 
 subject to all their obligations under this Agreement, transfer or delegate all or 
 any of their rights, powers, and discretions hereunder to any German, British, 
 French or American Company, Directors or Agents, with power of further trans- 
 fer and sub-delegation; such transfer, subtransfer, delegation or sub-delegation 
 to be subject to the approval of the Ministry of Posts and Communications. 
 
 Article XXIV. — This Agreement is signed under the authority of an Im- 
 perial Edict dated the twenty-second day of the fourth month of the third year 
 of the Emperor Hsuan T'ung, corresponding to the twentieth day of May, 1911, 
 Western Calendar, which will be officially communicated to the Ministers of Great 
 Britain, France, Germany and the United States of America in Peking by the 
 Wai Wu Pu. 
 
 Article XXV. — Eight sets of this Agreement are executed in English and 
 Chinese, four sets to be retained by the Imperial Chinese Government and four 
 sets by the Banks. In the event of any doubt arising regarding the interpretation 
 of the contract the English text shall rule. 
 
 Signed at Peking by the Contracting Parties this twenty second day of the 
 fourth month of the third year of the Emperor Hsuan T'ung, corresponding to the 
 twentieth day of May, One thousand nine hundred and eleven, Western 
 Calendar. 
 
 THE MINISTER OF POSTS AND COMMUNICATIONS 
 
 Sheng Hsuan-Huai 
 
 [Seal of 
 MINISTRY 
 
 of 
 POSTS AND 
 COMMUNICATIONS.] 
 
 For the DEUTSCH-ASIATISCHE BANK, 
 
 H. CORDES. 
 
 For the HONGKONG & SHANGHAI BANKING CORPORATION 
 
 E. G. HiLLIER, 
 
 Agent. 
 For the BANQUE DE LTNDO-CHINE, 
 R. Saint Pierre. 
 Casenave. 
 For J. P. Morgan & Company, 
 Kuhn, Loeb & Company, 
 The First National Bank, 
 The National City Bank, 
 of New York 
 constituting 
 " THE AMERICAN GROUP " 
 
 Willard Straight, 
 
 Representative.
 
 878 
 
 CHINA TREATIES AND AGREEMENTS 
 
 SCHEDULE OF INTEREST AND AMORTIZATION OF THE IMPERIAL CHINESE 
 
 GOVERNMENT 5% HUKUANG RAILWAYS SINKING FUND GOLD 
 
 LOAN OF 1911 FOR £6,000,000. 
 
 COEFFICIENT 6,505,144 PER CENT. 
 
 TOTAL ANNUAL PAYMENT OF INTEREST AND AMORTIZATION £390,308.12.10. 
 
 Years 
 
 Half-yearly 
 
 Payments of 
 
 Interest. 
 
 Total yearly 
 
 Payments of 
 
 Interest. 
 
 Half-yearly 
 
 Payments of 
 
 Capital. 
 
 Total yearly 
 
 Payments of 
 
 Capital. 
 
 Total annual 
 Payments. 
 
 Principal 
 Outstanding. 
 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 £ 
 
 1 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 nil 
 
 nil 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 2 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 « 
 
 « 
 
 300,000. -/- 
 
 6,000,000. -/. 
 
 3 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 " 
 
 " 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 4 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 " 
 
 « 
 
 300,000. -/- 
 
 6,000,000. -/. 
 
 5 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 <( 
 
 « 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 6 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 u 
 
 « 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 7 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 « 
 
 (( 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 8 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 « 
 
 « 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 9 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 « 
 
 u 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 10 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 « 
 
 « 
 
 300,000. -/- 
 
 6,000,000. -/- 
 
 11 
 
 150,000. -/- 
 150,000. -/- 
 
 300,000. -/- 
 
 45,154. 6/ 5 
 45,154. 6/ 5 
 
 90,308.12/10 
 
 390,308.12/10 
 
 5,909,691. 7/ 2 
 
 12 
 
 147,742. 5/ 8 
 147,742. 5/ 8 
 
 295,484.11/ 4 
 
 47,412. -/ 9 
 47,412. -/ 9 
 
 94,824. 1/ 6 
 
 390,308.12/10 
 
 5,814,867. 5/ 8 
 
 13 
 
 145.371.13/ 8 
 145,371.13/ 8 
 
 290,743. 7/ 4 
 
 49,782.12/ 9 
 49,782.12/ 9 
 
 99,565. 5/ 6 
 
 390,308.12/10 
 
 5,715,302. 0/ 2 
 
 14 
 
 142,882.11/- 
 142,882.11/- 
 
 285,765. 2/- 
 
 52,271.15/ 5 
 52,271.15/ 5 
 
 104,543.10/10 
 
 390,308.12/10 
 
 5,610,758. 9/ 4 
 
 15 
 
 140,268.19/ 3 
 140,268.19/ 3 
 
 280,537.18/ 6 
 
 54,885. 7/ 2 
 54,885. 7/ 2 
 
 109,770.14/ 4 
 
 390,308.12/10 
 
 5,500,987.15/- 
 
 16 
 
 137,524.13/11 
 137,524.13/11 
 
 275,049. 7/10 
 
 57,629.12/ 6 
 57,629.12/ 6 
 
 115,259. 5/ - 
 
 39.0,308.12/10 
 
 5,385,728.10/- 
 
 17 
 
 134,643. 4/ 3 
 134,643. 4/ 3 
 
 269,286. 8/ 6 
 
 60,511. 2/ 2 
 60,511. 2/ 2 
 
 121,022. 4/ 4 
 
 390,308.12/10 
 
 5,264,706. 5/ 8 
 
 18 
 
 131,617.13/ 2 
 131,617.13/ 2 
 
 263,235. 6/ 4 
 
 63,536.13/ 3 
 63,536.13/ 3 
 
 127,073. 6/ 6 
 
 390,308.12/10 
 
 5,137,632.19/ 2 
 
 19 
 
 128,440.16/ 6 
 128,440.16/ 6 
 
 256,881.13/- 
 
 66.713. 9/11 
 66,713. 9/11 
 
 133,426.19/10 
 
 390,308.12/10 
 
 5.004,205.19/ 4 
 
 20 
 
 125,105. 3/- 
 125,105. 3/- 
 
 250,210. 6/- 
 
 70,049. 3/ 5 
 70,049. 3/ 5 
 
 140,098. 6/10 
 
 390,308.12/10 
 
 4,864,107.12/ 6
 
 NUMBER 1911/5: MAY 20, 1911 
 
 879 
 
 Years. 
 
 Half-yearly 
 
 Payments of 
 
 Interest. 
 
 Total yearly 
 
 Payments of 
 
 Interest. 
 
 121,602.13/10 
 121,602.13/10 
 
 117,925. 2/ 2 
 117,925. 2/ 2 
 
 114,063.13/- 
 114,063.13/- 
 
 110,009. 2/ 4 
 110,009. 2/ 4 
 
 105,751.17/ 1 
 105,751.17/ 1 
 
 101,281.14/ 7 
 101,281.14/ 7 
 
 96,588. 2/- 
 96,588. 2/- 
 
 91,659.15/10 
 91,659.15/10 
 
 86,485. 1/ 3 
 86,485. 1/ 3 
 
 81,051.12/- 
 81.051.12/- 
 
 75,346. 9/ 4 
 75,346. 9/ 4 
 
 69,356. 1/ 5 
 69,356. 1/ 5 
 
 63,066. 3/ 2 
 63,066. 3/ 2 
 
 56,461.15/ 1 
 56,461.15/ 1 
 
 49,527. 2/ 6 
 49,527. 2/ 6 
 
 42,245.15/ 3 
 42,245.15/ 3 
 
 34,600. 6/ 9 
 34,600. 6/ 9 
 
 26.572.12/ 9 
 26,572.12/ 9 
 
 18,143.11/ 1 
 18,143.11/ 1 
 
 9,294. -/ 8 
 9,294. -/ 8 
 
 TOTAL; 
 
 243,205. 7/ 8 
 235,850. 4/ 4 
 228,127. 6/- 
 220,018. 4/ 8 
 211,503.14/ 2 
 202,563. 9/ 2 
 193,176. 4/- 
 183,319.11/ 8 
 172,970. 2/ 6 
 162,103. 4/- 
 150,692.18/ 8 
 138,712. 2/10 
 126,132. 6/ 4 
 112,923.10/2 
 99,054. 5/- 
 84,491.10/6 
 69,200.13/ 6 
 53,145. 5/ 6 
 36,287. 2/ 2 
 18,588. 1/ 4. 
 
 Half-yearly 
 
 Payments of 
 
 Capital. 
 
 £8,709,259. 5/- 
 
 73,551.12/ 7 
 73,551,12/ 7 
 
 77,229. 4/ 3 
 77,229. 4/ 3 
 
 81,090.13/ 5 
 81,090.13/ 5 
 
 85,145. 4/ 1 
 85,145. 4/ 1 
 
 89,402. 9/ 4 
 89,402. 9/ 4 
 
 93,872.11/10 
 93,872.11/10 
 
 98,566. 4/ 5 
 98,566. 4/ 5 
 
 103,494.10/ 7 
 103,494.10/ 7 
 
 108,669. 5/ 2 
 108,669. 5/ 2 
 
 114.102.14/ 5 
 114,102.14/ 5 
 
 119,807.17/ 1 
 119,807.17/ 1 
 
 125,798. 5/- 
 125,798. 5/- 
 
 Total yearly ^^^^^ j 
 
 132.( 
 132.( 
 
 3/ 3 
 3/ 3 
 
 138,692.11/ 4 
 138,692.11/ 4 
 
 145,627. 3/11 
 145,627. 3/11 
 
 152,908.11/ 2 
 152,908.11/ 2 
 
 160.553.19/ 8 
 160,553.19/ 8 
 
 168,581.13/ 8 
 168,581.13/ 8 
 
 177.010.15/ 4 
 177,010.15/ 4 
 
 185,860. 5/ 9 
 185,860. 5/ 9 
 
 147,103. 5/ 2 
 154,458. 8/ 6 
 162,181. 6/10 
 170,290. 8/ 2 
 178,804.18/ 8 
 187,745. 3/ 8 
 197,132. 8/10 
 206,989. 1/ 2 
 217,338.10/ 4 
 228,205. 8/10 
 239,615.14/ 2 
 251,596.10/- 
 264,176. 6/ 6 
 277,385. 2/ 8 
 291,254. 7/10 
 305,817. 2/ 4 
 321,107.19/ 4 
 337,163. 7/ 4 
 354,021.10/ 8 
 371,720.11/ 6 
 
 £6,000,000. -/- 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 •390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 390,308.12/10 
 
 Principal 
 outstanding. 
 
 £14,709,259. 5/- 
 
 4,717,004. 7/ 4 
 4,562,545.18/10 
 4,400,364.12/- 
 4,230,074. 3/10 
 4,051,269. 5/ 2 
 3,863,524. 1/ 6 
 3,666,391.12/ 8 
 3,459,402.11/ 6 
 3,242,064. 1/ 2 
 3,013,858.12/ 4 
 2,774,242.18/ 2 
 2.522,646. 8/ 2 
 2,258,470. 1/ 8 
 1,981,084.19/- 
 1,689,830.11/ 2 
 1,384,013. 8/10 
 1,062,905. 9/ 6 
 725,742. 2/ 2 
 371,720.11/ 6
 
 880 CHINA TREATIES AND AGREEMENTS 
 
 Note 1. 
 
 An agreement for a loan for the construction of these railways was originally con- 
 cluded between the Chinese Government and the British, French and German banks, on 
 June 6, 1909, in the following terms: 
 
 Agreement with British, French and German Banks for Hukuang Railways, 
 
 June 6, 1909. 
 
 "This Agreement is made at Peking on the 19th day of the 4th moon in the first year 
 of the Emperor Hsuan-T'ung, corresponding to the 6th of June, one thousand nine hun- 
 dred and nine, western calendar, and the contracting parties are : 
 
 " His Excellency the Grand Secretary Chang Chih-tung, director-general of the Canton- 
 Hankow Railway and of the Hupeh section of the Szechuen-Hankow Railway, duly 
 authorized by imperial decree to act on behalf of the Imperial Government of China, of 
 the one part, and 
 
 " (a) The Deutsch-Asiatische Bank, Shanghai, and 
 
 " (b) The Hongkong and Shanghai Banking Corporation associated with the Banque 
 de rindo-Chine, hereafter called the Banks, of the other part. 
 
 "Article 1. — The Imperial Government of China authorizes the Banks to issue a 5 per 
 cent gold loan for an amount of five million five hundred thousand pounds sterling 
 (f 5, 500.000). The loan shall be of the date on which the bonds are issued to the public, 
 and shall be called ' The Imperial Chinese Government Five Per Cent Hukuang Railway 
 Loan of 1909.' 
 
 " Article 2. — This loan is designed to provide capital (1) for the redemption at a 
 premium of 2^2 per cent, with accrued interest, of certain unredeemed gold bonds of the 
 total par value of two million two hundred and twenty-two thousand dollars United States 
 currency, issued by the American-China Development Company on behalf of the Imperial 
 Chinese Government, and 
 
 " (2) For the construction of a Government railway, main line from Wuchang, the 
 capital of the Hupeh Province, through Yo-chou and Chang-sha, the capital of the Hunan 
 Province, to a point in the prefecture of Ch'en-chou, on the southern boundary of Hunan, 
 connecting with the Kuang-tung section of the Canton-Hankow Railway line, the total 
 length of this line, hereinafter known as ' The Hupeh-Hunan section of the Canton- 
 Hankow Railway line,' being 1,800 Chinese li, or 900 kilometers, and of 
 
 " A Government railway main line from Ichang, in the Province of Hupeh, through 
 Ching-men-chou and Hsiang-yang, to a point at or near Kuang-Hsui, connecting it with 
 the Peking-Hankow, and a branch line from Ching-men-chou, on the aforesaid main hne, 
 through Shasi to Han-yang, t+ie combined length of these two lines, hereinafter known 
 as ' The Hupeh section of the Szechuen-Hankow Railway line,' being about 1,600 Chinese 
 li, or 800 kilometers. 
 
 " The survey line shall be open to revision by the director-general of the railways. 
 
 " The Chinese Imperial Government undertakes to call in, after having received from 
 the Banks application in writing to do so, the aforesaid gold bonds and the Banks will 
 apply the amount necessary for the said redemption out of the proceeds of the loan, and 
 will deliver the redeemed bonds to the Chinese Government, after having made the bonds 
 valueless. The Chinese Imperial Government will, after receipt of the redeemed bonds, 
 cancel the inscription of the pledge of the Canton-Hankow Railway line in their archives 
 and will advise the Banks in writing after having done this. 
 
 " It is understood that the allotment of the aforesaid total nominal capital of £5.500,000 
 will be in the proportion of £2,500,000 to the Hupeh-Hunan section of the Canton-Hankow 
 Railway line, and £2,500,000 to the Hupeh section of the Szechuen-Hankow Railway line, 
 and that any surplus of the nominal amount of the £500,000 hereby allotted for the redemp- 
 tion of the gold bonds, issued by the American-China Development Company aforesaid 
 which may remain after complete redemption of those bonds shall be added to the amount 
 allotted to the Hupeh section of the Canton-Hankow Railway line. 
 
 "Article 3.— After deduction of the amount required for the redemption of the gold 
 bonds referred to in Article 2 of this agreement, the balance of the loan proceeds shall 
 be solely devoted to the construction of the aforesaid railway lines, including the pur- 
 chase of lands, rolling stock, and other equipment, and to the working of the line, and 
 to the payment of interest on the loan during the period of construction, which is esti- 
 mated at four years from the actual beginning of the work. The commencement of the 
 work shall not be delayed beyond six months after this agreement has been signed, within 
 which period the Banks shall notify the director-general that the sum of five hundred and 
 ten thousand pounds sterling (£510,000) has been placed at his disposal in case funds 
 should be required for survey or construction purposes, or for the ordering of material, 
 the said sum to be held in Europe or remitted to China as he may direct, as a first 
 installment on account of the proceeds of the loan. This amount of £510,000, or whatever 
 portion thereof is actually advanced, together with interest thereon, not exceeding a charge 
 of 6 per cent per annum, shall be deducted from the first proceeds of the sale of the bonds.
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 881 
 
 "Article 4.— The rate of interest for the loan shall be 5 per cent per annum on the 
 nominal principal and shall be paid to the bondholders half-yearly. The said interest shall 
 be calculated from the date on which the loan is issued to the public, and shall be paid 
 by the Imperial Chinese Government during the time of construction, either from the 
 proceeds of the loan or from other sources, and afterwards, in the first place, out of the 
 revenues of the railway, and then from such other revenues as the Chinese Government 
 may think fit to use for the purpose, in haJf-yearly installments according to the amount 
 specified in the schedule attached to this agreement and fourteen davs before their due 
 date, western calendar, as calculated half-yearly from the date on which the loan is issued 
 to the public. 
 
 "Article 5. — The term of the loan shall be twenty-five years. Repayment of the 
 principal shall commence after the expiry of ten years from the date of the loan, and, 
 e.xcept as provided in Article 6 hereinafter, shall be made by equal yearly amortization to 
 the Banks in half-yearly installments out of the revenues of the lines or such other 
 revenues as the Chinese Government may think fit to use for the purpose, according to 
 the amounts specified in the schedule attached to this agreement, but fourteen davs before 
 their due date, western calendar, as calculated half-yearly from the date on which" the loan 
 is Issued to the public. 
 
 "Article 6. — If at any time after the lapse of ten years from the date of the loan the 
 Imperial Chinese Government should desire to redeem the whole outstanding amount of 
 the loan or any part of it not yet due for a payment in accordance with the schedule for 
 repayments hereto attached, it may do so up to the end of the seventeenth year by pay- 
 ment of a premium of 2!-2 per cent on the face value of the bonds ; that is to say, by the 
 payment of £102 10s. for each £100 bond, and after the lapse of seventeen years without 
 premium ; but in each and every case of such extra redemption the Imperial Chinese 
 Government will give six months' previous notice in writing to the Banks, and such 
 redemption shall be effected by additional drawings of bonds to take place on the date 
 of an ordinary drawing, as provided for in the prospectus of the loan. 
 
 " .Article 7. — The half-yearly payments due for amortization and interest, referred to 
 in Articles 4 and 5, shall be made in accordance with the amounts of the schedule attached 
 to this agreement and fourteen days before their due date, as fixed by Articles 4 and 5, 
 in equal shares to the Banks by the director-general of the railway, who shall hand to 
 the Banks in Shanghai or in Hankow, fourteen days before the said due date, funds in 
 Shanghai (Kuei-yang) sycee or Hankow ' Yang-li ' sycee sufficient to meet such pay- 
 ments in gold in Europe, exchange for which shall be settled with the Banks on the same 
 day, the railway having, however, the option of settling exchange with the Banks simul- 
 taneously at any date or dates within six months previous to any due date for the pay- 
 ment of interest and/or principal. These payments may, however, be made in gold in 
 Europe if the Imperial Chinese Government should happen to have gold funds bona fide 
 at their disposal in Europe not remitted from China for the purpose and desires so to 
 use them. 
 
 " In reimbursement of expenses connected with the payment of interest and repay- 
 ment of principal of the loan, the Banks will receive from the Chinese Government a 
 commission of one-fourth of 1 per cent on the annual loan service. 
 
 " Article 8. — The Imperial Government of China hereby engages that the interest and 
 principal of this loan shall be duly paid in full, and should the revenues of the railways 
 and/or the proceeds of the loan not be sufficient to provide for the due and full payment 
 of the interest and repayment of the principal, the director-general shall memorialize the 
 Throne and the Imperial Government of China shall thereupon make arrangements to 
 insure that the amounts of the deficiency shall be met from other sources and handed over 
 to the Banks on the date upon which funds are required to complete full payment of 
 interest and repayment of principal. 
 
 " Article 9. — The present loan, in respect to both interest and principal, is hereby 
 secured by — 
 
 " (1) Hupeh general likin, amounting to two million (2,000,000) haikwan taels a year; 
 
 " (2) Hupeh additional salt tax for river defense, amounting to four hundred thousand 
 (400,000) haikwan taels a year; 
 
 " (3) Hupeh new additional 2-cash salt tax of September, 1908, amounting to three 
 hundred thousand (300,000) haikwan taels a year; 
 
 " (4) Hupeh collection of Hukuang interprovincial tax on imported rice, amounting 
 to two hundred and fiftv thousand (250,000) haikwan taels a year; 
 
 " (5) Hunan general likin amounting to two million (2,000,000) haikwan taels a year; 
 
 " (6) Hunan salt commissioner's treasury regular salt likin, amounting to two hundred 
 and fifty thousand (250,000) haikwan taels a year. 
 
 " The above provincial revenues are hereby declared to be free from all other loans, 
 charges, or mortgages. . , . , , , •, .v u ii k 
 
 '• So long as the principal and interest of this loan are regularly paid, there shall be 
 no interference with these provincial revenues; but if principal or interests of the loan 
 be in default at due date, then, after a reasonable period of grace, likin and other suitable
 
 g82 CHINA TREATIES AND AGREEMENTS 
 
 internal revenues of the Provinces of Hupeh and Hunan sufficient to provide the amounts 
 above stated shall forthwith be transferred to and administered by the Imperial Maritime 
 Customs in the interest of the bondholders, and so long as this loan or any part thereof 
 shall remain unredeemed it shall have priority, both as regards principal and interest, over 
 all future loans, charges, and mortgages charged on the aforesaid provincial revenues. 
 No loan, charge, or mortgage shall be raised or created which shall take precedence of or 
 be on an equality with this loan, or shall in any manner lessen or impair its security over 
 the aforesaid provincial revenues, and any future loan, charge, or mortgage charged on 
 the said provincial revenues shall be made subject to this loan, and it shall be so expressed 
 in every agreement for every such future loan, charge, or mortgage. 
 
 " After the redemption of the existing gold bonds referred to in Article 2 of this 
 agreement, it is understood and agreed that so long as this loan is unredeemed the rail- 
 way shall, under no circumstances, be mortgaged, nor the receipts given as security to any 
 other parties. 
 
 " In the event of the Chinese Government, during the currency of this loan, enter- 
 ing upon definite arrangements for the revision of the customs tariff, accompanied by 
 stipulations for the decrease or abolition of likin, it is hereby agreed on the one hand 
 that such provisions shall not be barred by the fact that this loan is secured by likin and 
 provincial revenues, and, on the other hand, that whatever likin is required to provide for 
 the security of this loan shall neither be decreased nor abolished except by previous arrange- 
 ment with the Banks, and then only in so far as an equivalent is substituted for it, in the 
 shape of a first charge upon the increase of customs revenue consequent upon such revision. 
 
 " Article 10. — The Banks are hereby authorized to issue to the subscribers to the loan 
 bonds for the total amount of the loan in gold, for such amounts as may appear advisable 
 to the Banks. The form and language of the bonds shall be settled by the Banks, in 
 consultation with the director-general or the Chinese ministers in Berlin, London, or 
 Paris. They shall bear the facsimile of the signature of the director-general and his seal 
 of office, in order to dispense with the necessity of signing them all in person, and the 
 Chinese minister in Berlin, London, or Paris, as the case may be, shall, previous to the 
 issue of the bonds, put his seal upon each bond, with the facsimile of his signature, as a 
 proof that the issue and sale of the bonds are duly authorized by and binding upon the 
 Chinese Government. The representatives of the Banks in Berlin, London, or Paris, as 
 the case may be, shall countersign the bonds as agents for the issue of the loan. 
 
 " In the event of the bonds issued for this loan being lost, stolen, or destroyed, the 
 bank concerned shall immediately notify the director-general and the Chinese minister in 
 Berlin, London, or Paris, as the case may be, who shall authorize the bank to insert an 
 advertisement in the public newspapers notifying that payment of the same has been 
 stopped, and to take such other steps as may appear advisable or necessary, according to 
 the laws and customs of the country concerned, and should such bonds not be recovered 
 after a lapse of time to be fixed by the Banks, the director-general and the Chinese min- 
 ister in Berlin, London, or Paris, as the case may be, shall seal and execute duplicate bonds 
 for a like amount and hand them to the bank, by whom all expenses in connection there- 
 with shall be defrayed. 
 
 "Article 11. — All bonds and coupons and payments made and received in connection 
 with the service of this loan shall be exempt from all Chinese taxes and imposts during 
 the currency of this loan. 
 
 " Article 12. — All details necessary for. the prospectus and connected with the pay- 
 ment of the interest and repayment of the principal of this loan, not herein specifically 
 provided for, shall be left to the arrangement of the Banks, in consultation with Chinese 
 ministers in Berlin, London, and Paris. The Banks are hereby authorized to issue the 
 prospectus of the loan as soon as possible after the signing of this agreement; and the 
 Imperial Government will instruct the Chinese ministers in Berlin, London, and Paris 
 to cooperate with the Banks in any matters requiring conjoint action, and to sign the 
 prospectus of the loan. 
 
 " Article 13. — The loan shall be issued to the public in one amount as soon as pos- 
 sible after the signature of this agreement, and not later than twelve months after the 
 date thereof. The price of the bonds to the Imperial Chinese Government shall be 95 per 
 cent of their nominal value. Subscription will be invited by the Banks in Europe and in 
 China both from Chinese and Europeans on equal conditions, preference being given to 
 the application of the Chinese Government, providing such application be made not less 
 than four days before the issue of the prospectus to the public. Seven days' notice of the 
 issue of the prospectus will be given by the Banks to the Imperial Chinese Government. 
 
 " Article 14. — The proceeds of the loan shall be paid to the credit of the ' Hukuang 
 Government Railways account' with the Deutsch-Asiatische Bank, the Hongkong and 
 Shanghai Banking Corporation, and the Banque do I'lndo-Chine in China, Berlin, London, 
 or Paris, as the case may be. Payments of loan proceeds into the credit of this account 
 shall be in installments and on dates conforming to the conditions allowed to the sub- 
 scribers to the loan. Interest at the rate of 3 per cent per annum shall be granted on the 
 credit balance of the portion of this account kept in Berlin, London, Paris, and interest on
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 883 
 
 the credit balance of the portion kept in China will be allowed at the Banks' rate for cur- 
 rent accounts, to be arranged. Subject to the payments and deductions to be made from 
 the loan proceeds in terms of Articles 2 and 3 of this agreement, the Banks will hold 
 the net balance, with accrued interest, to the order of the director-general. Transfers of 
 the loan funds to China in amounts conforming to actual construction requirements will 
 be made by the director-general on his sole authority; the transfer being effected through 
 the Deutsch-Asiatische Bank, the Hongkong and Shanghai Banking Corporation, and the 
 Banque de ITndo-Chine, as the case may be ; ten days' previous notice will be given to 
 the bank concerned of the transfer of any sum exceeding twenty thousand (£20,000) 
 pounds, and the transerred funds shall remain on deposit with that bank until required 
 for railway purposes. The director-general shall, at his discretion, make transfers from 
 the loan funds held in China by the Banks to the credit of a construction account for the 
 Hupeh section of the Szechuen-Hankow Railway line with the Deutsch-Asiatische Bank, 
 and of a construction account for the Hupeh-Hunan section of the Canton-Hankow Rail- 
 way line with the Hongkong and Shanghai Banking Corporation. Requisition upon these 
 construction accounts will be drawn in amounts to suit the progress of the construction of 
 the railway lines by orders upon the Deutsch-Asiatische or the Hongkong and Shanghai 
 Banking Corporation, signed by the managing director of the line concerned or, in his 
 absence, by his duly authorized representative, who shall, moreover, two days previous to 
 the presentation of such order, issue in duplicate a certificate stating clearly the object of 
 the funds to be drawn, handing one copy to the auditor (hereinafter referred to) and 
 one copy to the bank concerned. 
 
 " The accounts of the railways will be kept in Chinese and English and/or German, 
 in accordance with accepted modern methods, and will be supported by all necessary 
 vouchers. During the period of construction the said accounts and vouchers will be open 
 at any time to the inspection of two auditors for the Hupeh-Hunan section of the Canton- 
 Hankow Railway line and the Hupeh section of the Szechuen-Hankow Railway line, 
 respectively, appointed and paid by the Banks, whose duty it will be to satisfy the Banks 
 as to the due expenditure of the loan funds in accordance with the provisions of Article 3 
 of this agreement, and to certify to monthly statements of the foreign materials purchased 
 by the railway administration under the provisions of Article 18 hereinafter. The railway 
 administration will publish annually, upon the close of its financial year, a report, in the 
 Chinese and English languages, showing the working accounts and traffic receipts of the 
 railways, which report shall he procurable by the public on application. 
 
 " Article 15. — If, after the deduction of the amount required for the redemption of 
 the gold bonds referred to in Article 2 of this agreement, and of the sums necessary for 
 the service of interest on the loan during the time of construction, the balance of the 
 loan proceeds, with accrued interest, should not be sufiicient to complete the construction 
 and equipment of the railway lines named in Article 2 of this agreement, the amount of 
 the deficiency shall be provided, in the first place, from such Chinese funds as may be 
 available so as to permit of the uninterrupted continuance of the work of construction, 
 and any balance then uncovered shall be supplemented by a further foreign loan for the 
 amount required, to be issued by the Banks. The interest and other conditions of such 
 supplementary loan or loans will be the same as in the present agreement, and the price 
 payable to the Chinese Government in respect to these supplementary loans shall be the 
 actual rate of their issue to the public, less flotation charges of five and one-half points 
 retainable by the Banks — that is to say, a charge of five pounds ten shillings (£5 10s.) 
 sterling for every £100 bond issued. If after the completion of the lines there should be 
 a balance of the railway's accounts, such unused balance will be transferred to the credit 
 of the interest reserve fund hereinafter mentioned in Article 20 as a provision for pay- 
 ments for which the Imperial Chinese Government is responsible under this agreement. 
 
 "Article 16. — If before the publication of the prospectus for the issue of the loan any 
 political or financial crisis should take place by which the markets and the prices of exist- 
 ing Chinese Government stocks are so affected as to render, in the opinion of the Banks, 
 the successful issue of the loan impossible on the terms herein named, the Banks shall be 
 granted a further extension of time, but not beyond eighteen months from the date of this 
 agreement for the performance of their contract. If within this time limit the loan shall 
 have not been issued, then this contract shall become null and void, and advances made by 
 the Banks under the provisions of Article 3 shall be repaid by the Chinese Government 
 with accrued interest, but without any other compensation or remuneration whatsoever. 
 
 " Article 17. — The construction and control of the railway lines shall be entirely and 
 exclusively vested in the Imperial Chinese Government, and shall be organized in accord- 
 ance with the practice at the present time actually in force on the northern section of the 
 Tientsin-Pukow Railway line. For the work of construction the Imperial Chinese Govern- 
 ment will select and appoint a fully qualified British chief engineer for the Hupeh-Hunan 
 section of the Canton-Hankow Railway line and a fully qualified German chief engmeer 
 for the Hupeh section of the Szechuen-Hankow Railway line who shall be acceptable to 
 the Banks. In the event of the Banks objecting to any proposed appointment, the cause 
 of such objection shall be definitely stated. These two engineers shall be under the orders
 
 884 CHINA TREATIES AND AGREEMENTS 
 
 of the managing directors of the respective lines, or, in their absence, of their duly 
 authorized representatives, and will carry out all the wishes of the railway administra- 
 tion with regard to the plan and construction of the lines. In their general conduct 
 they shall pay all due respect to the director-general and the managing directors. The 
 terms of their respective agreements will be arranged by the director-general on his sole 
 authority. 
 
 " Whenever appointments are to be made or functions defined of the technical 
 employees on the railway staff as well as in the case of their dismissal, the managmg 
 director, or in his absence his duly authorized representative, will act in consultation with 
 the chief engineer concerned, and in case of disagreement the matter will be referred to 
 the director-general, whose decision shall be final. 
 
 " After completion of construction, and during the currency of this loan, the Imperial 
 Chinese Government will continue to employ Europeans as chief engineers of the said 
 railway lines, these appointments being made without reference to the Banks. 
 
 ■' Article 18. — For the Hupeh-Hunan section of the Canton-Hankow Railway line, and 
 the Hupeh section of the Szechuen-Hankow Railway line, respectively, (a) a company 
 nominated by the Hongkong and Shanghai Banking Corporation and approved by the 
 director-general and (b) the Deutsch-Asiatische Bank will act as agents of the railway 
 administration during construction for the purchase of all materials, plant, and goods 
 required to be imported from abroad. For all important purchases of such materials 
 tenders shall be called for by the managing director concerned ; in the case of all tenders, 
 indents, and orders for the importation of goods and materials from abroad the said 
 agents shall purchase the materials required on the terms most advantageous to the 
 railways, and shall charge the original net cost of same plus a commission of five per 
 cent (5%). It is understood that no orders for materials shall be executed or any expendi- 
 ture incurred without due authorization of the managing director concerned. 
 
 " In return for payment of commission as above stated the aforesaid company nomi- 
 nated by the Hongkong and Shanghai Banking Corporation and the Deutsch-Asiatische 
 Bank as agents for the respective railway lines shall be prepared to superintend the 
 purchase of all foreign materials required for their construction and equipment which 
 shall be purchased in the open market at the lowest rate obtainable, it being under- 
 stood that all such materials shall be of good and satisfactory quality, and that the 
 railway administration shall have the right to reject, on arrival in China, materials 
 which are not in accordance with the original order. At equal rates and qualities goods 
 of British, French, and German manufacture shall be given the preference over other 
 goods of foreign origin. The railway administration reserves the right, while paying the 
 above stipulated commission to the said agents in respect to all purchases of foreign 
 materials, to avail itself of the services of other agents in China or abroad should it 
 see fit to do so. Original invoices and inspectors' certificates are to be submitted to the 
 managing director concerned ; all return commissions and rebates of every description shall 
 be credited to the railways, and all purchases made by the agents on behalf of the railway 
 shall be supported by manufacturers' original invoices and inspectors' certificates. No com- 
 mission shall be paid to the agents except as above provided; but it is understood that the 
 railway administration shall provide out of the railway funds for the remuneration of 
 consulting engineers whenever their services are engaged. 
 
 " With a view to the encouragement of Chinese industries preference will be given, 
 at equal prices and qualities, over British, French, and German or other foreign goods 
 to Chinese goods and materials manufactured in China, such cases being left to the deci- 
 sion, in consultation with the chief engineer, of an inspector appointed by the Imperial 
 Chinese Government. No commission will be paid on purchases of such Chinese materials 
 and goods. 
 
 " It is understood and agreed that after the construction of the lines is completed the 
 aforesaid company nominated by the Hongkong and Shanghai Banking Corporation and 
 the Deutsch-Asiatische Bank will be given the preference for agency business for the 
 respective lines, during the currency of the loan, for the supply of foreign materials which 
 the railway administration may require on terms hereinafter mutually agreed upon. 
 
 " Article 19. — Branch lines in connection with railway lines named in Article 2 of 
 this agreement that may appear profitable or necessary later on shall be built by the Impe- 
 rial Chinese Government with funds at its disposal from Chinese sources; but if foreign 
 capital is required, preference will be given to the Banks. 
 
 " Article 20. — After payment of interest and repayment of principal of this loan for 
 any current year tKe railway administration will deposit with the Banks in Shanghai or 
 Hankow any surplus of the net revenue of the railway lines for that year up to the amount 
 required to pay the following year's installments of interest on the loan, the rate of 
 interest on the deposit being arranged with the Banks from time to time, with due regard 
 to the conditions of the market. 
 
 " Article 21. — All expenses in connection with the flotation and issue of this loan, 
 such as underwriting, commission and brokerage, telegraph charges, advertising, postage, 
 printing of prospectus and bonds, stamp duty, and legal fees shall be borne by the Banks.
 
 NUMBER 1911/5: MAY 20, 1911: NOTES ' 885 
 
 "The Chinese officials acting in the matter of this loan do not receive any commis- 
 sion whatsoever. 
 
 " Article 22. — The Deutsch-Asiatische Bank, the Hongkong and Shanghai Banking 
 Corporation, and the Banque de ITndo-Chine shall take the loan in equal shares and with- 
 out responsibility for each other. 
 
 " Article 23. — The Deutsch-Asiatische Bank, the Hongkong and Shanghai Banking 
 Corporation, and the Banque de ITndo-Chine may subject to all their obhgations under the 
 agreement, transfer or delegate all or any of their rights, powers, and discretions there- 
 under to any German, British, or French company, directors, or agents, with power of 
 further transfer and subdelegation, such transfer, subtransfer, delegation, or subdelegation 
 to be subject to the approval of the director-general. 
 
 " Article 24. — This agreement is signed under the authority of an imperial edict dated 
 the day of the fourth moon of the first year of the Emperor Hsuan T'ung, correspond- 
 ing to the June, 1909, western calendar, which has been officially communicated to the 
 
 ministers of Great Britain, France, and Germany in Peking by the Wai-wu Pu. 
 
 "Article 25. — Seven sets of this agreement are executed in English and Chinese, four 
 sets to be retained by the Imperial Chinese Government and one set by each bank. In the 
 event of any doubt arising regarding the interpretation of the contract, the English text 
 shall rule. 
 
 " Signed at Peking by the contracting parties this 19th day of the fourth moon of the 
 first year of the Emperor Hsuan T'ung, corresponding to the 6th day of June, 1909, western 
 calendar." 
 
 With the support of the American Government, the American group claimed a right 
 of participation in the loan for this purpose, basmg its claim upon two notes which the 
 Wai Wu Pu had addressed to the American Minister in 1903 and 1904, of which the trans- 
 lations (as printed in For. Rcl. 1909, p. 175) are as follows: 
 
 " The Chinese Foreign Office to Minister Conger. 
 
 " Foreign Office, 
 
 "Peking, August 15, 1903. 
 
 " We have the honor to acknowledge the receipt yesterday of your excellency's note, 
 saying that you had read in a London newspaper a statement to the effect that two British 
 companies had applied to the Chinese Government for a concession to build a railway from 
 Hsin-yang, in Hunan, via Hsiang-yang in Hupeh to Ch'eng-tu, Szechuen ; that the said paper 
 also said that there were Chniese who desired to construct the road, and that in the future, 
 if foreign capital should be borrowed, it was proposed to first consult with the aforesaid two 
 companies ; that your excellency had to state clearly that your countrymen had long ago 
 asked for a concession to build through the region mentioned, and that you had talked 
 with us about it in a personal interview and had said that if it should be desired to borrow 
 money for this purpose offers ought first to be made to the Americans; that if it should be 
 allowed foreigners to construct the road, the concession ought first to be offered to Ameri- 
 cans ; that if arrangements should be made with others which would interfere with the just 
 rights of Americans, you must enter your protest against them. 
 
 " Our board finds on examination that with respect to the building of the Hankow- 
 Szechuen Railway an English company had applied in the XXV year of Kuanghsu for such 
 a concession, which was not granted ; afterwards, in the fourth moon of the present year, the 
 British charge, Mr. Townley, had several times requested that the concession be given to 
 British companies, and at that time our board replied that it had originally been proposed 
 that the Chinese should themselves construct this road ; that if in the future it should appear 
 that the capital was not sufficient or that foreign capital ought to be borrowed, since British 
 and American companies had successively applied for concessions to build the road, when the 
 time came application could be made to the British and American companies. In short, when 
 companies of various nationalities apply to China for railway concessions, it must always 
 remain with China to decide the matter. It is not possible to regard an application not 
 granted as conferring any rights or as being proof that thereafter application must first be 
 made to the persons concerned. 
 
 " As in duty bound, we send this reply for your excellency's information. 
 " We avail, etc. 
 
 "(Sixth moon, 23rd day.)" 
 
 " The Prince of Ching to Minister Conger. 
 
 " Foreign Office, 
 
 "Peking, July 18, 1904. 
 " I have the honor to acknowledge the receipt of your excellency's letter of recent date, 
 as follows :
 
 885 CHINA TREATIES AND AGREEMENTS 
 
 " ' I have the honor to inform Your Imperial Highness that I am in receipt of a 
 letter from Mr. A. W. Bash, agent of the China Investment and Construction Company, 
 requesting me to forward to Your Imperial Highness the inclosed letter, in which he 
 makes application for a concession to provide a loan for the construction of a railway 
 line from Ch'eng-tu, Szechuen, to Chungking and Hankow, in case the viceroy of Sze- 
 chuen should find himself unable to prosecute his reported plan to raise money from 
 native sources for such a line. He begs that your board will place his application on 
 file. I have much pleasure in complying with Mr. Bash's request, and so forward the 
 application inclosed.' 
 
 " In regard to the above I have the honor to state that the viceroy of Szechuen is even 
 now engaged in selling shares and accumulating capital from Chinese sources for the 
 purpose of building the line from Hankow to the Province of Szechuen. It is not intended 
 that foreign capital shall be used, but if in the future the native capital proves to be insuffi- 
 cient, or if a time comes when they wish to borrow funds from foreigners to fill in with, then 
 will the matter be dealt with as proposed in the letter written by my board to your excel- 
 lency in the sixth moon of last year (August 15, 1903), and companies composed of Eng- 
 lishmen and Americans will be consulted. As for the application of the China Investment 
 and Construction Company, it can not be conveniently granted for the present. 
 
 " It is my duty in the premises, therefore, to make this reply to your excellency, that 
 you may be informed of the matter, and I trust that your excellency will issue proper in- 
 structions to the above-mentioned company. 
 " I take, etc." 
 
 Consult For. Rel, 1909, pp. 144-215, and 1910, pp. 269-291, in regard to the negotiations 
 for the admission of the American group to equal participation with the other banks. The 
 terms of cooperation among the banking groups of the four nationalities were settled by an 
 agreement reached at a conference of their representatives at Paris, May 23, 1910, of which 
 the text (together with the minutes of a meeting of their committee on the same date) is 
 thus printed in For. Rel, 1910, p. 280: 
 
 Inter-Bank Railway Agreement among American, British, French and German Banks, 
 
 May 23, 1910. 
 
 " Parties : 
 
 The British and Chinese Corporation, Limited, Chinese Central Railways, Limited, 
 
 representing the British group. 
 The Deutsch-Asiatische Bank, representing the German group. 
 The Banque de I'lndo-Chine, representing the French group. 
 Morgan, Grenfell & Co., representing the American group. 
 
 " 1. The British, German, French, and American groups agree to enter into an agree- 
 ment with the Chinese Government for a loan of £6,000,000 and any supplementary loans 
 to be issued in connection therewith for the above railways on the basis of the two draft 
 agreements approved by the parties hereto and initialed by them, being the draft original 
 loan agreement, with accompanying despatch and a draft supplemental loan agreement. 
 
 "2. This loan to be divided equally between the four groups, and to be issued simul- 
 taneously. 
 
 " 3. All orders for materials to be divided as far as possible equally between the four 
 groups. 
 
 " Za. The American group shall share equally in the commissions on the purchase of 
 materials, plant, and goods allowed by the terms of article 18 of the original loan agreement. 
 
 " 4. In regard to the appointment of chief engineers and subengineers for the lines 
 contemplated by the original loan agreement it is agreed that the chief engineer for the 
 Hankow-Canton Railway is to be appointed by the British and Chinese Corporation, 
 Limited: that the chief engineer for the Ichang-Hsiangyang-Kuangshui line and the Ichang- 
 Hanyang line, to the length of about 800 kilometers, is to be appointed by the German group, 
 which is to provide for the appointment by the American group of a subengineer for a section 
 of these lines to the length of about 200 kilometers. With regard to the proposed exten- 
 sion of the line from Ichang or Hsiangyang to Ch'eng-tu, which is estimated to be 1,600 
 kilometers in length, the chief engineer for the first 400 kilometers is to be appointed by the 
 American group ; the chief engineer for the next 600 kilometers is to be appointed by the 
 British group, and the chief engineer for the remaining 600 kilometers is to be appointed by 
 the French group. If the extension of the line above referred to should be less than 
 1,600 kilometers in length, then the above-mentioned lengths of 400, 600, and 600 kilometers 
 shall abate proportionately. If the extension of the line above referred to should exceed 
 in length 1,600 kilometers, then the appointment of chief engineers of the excess between 
 1.600 kilometers and 2,200 kilometers shall be apportioned equally between the American, 
 British, and French groups. If such extension should exceed in length 2,200 kilometers, then 
 the appointment of chief engineers of the surplus over 2,200 kilometers shall be divided as 
 nearly as possible equally among the four groups.
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 887 
 
 " 5. Each of the groups to apply to their respective bourses for the internationalization 
 of the above loans. 
 
 " 6. The stamp duties on the bonds to be pooled and divided equally between the four 
 groups, but this is not to be treated as a precedent for future loans. All other expenses 
 of issue to be borne by the respective groups. 
 
 "7. The preliminary expenses incurred by the four groups prior to the signing of this 
 agreement shall be shared by the four groups upon an equitable basis. 
 
 " For the British group : Carl Meyer. 
 
 C. S. Addis. 
 G. Jamieson. 
 " For the German group : Fr. Urbig. 
 
 E. Rehders. 
 " For the French group : J. Caillaux. 
 
 St. Simon. 
 Ullmann. 
 Casenave. 
 " For the American group : E. C. Grenfell. 
 
 H. P. Davison. 
 Max Warburg. 
 H. H. Harjes. 
 WiLLARD Straight." 
 
 " FRENCH, BRITISH, GERMAN, AND AMERICAN GROUPS. 
 
 " Mmutes of a meeting held at the Banque de I'Indo-Chine on 23d May, 1910, of the com- 
 mittee appointed at the meeting of the four groups held that day. 
 
 " Present : 
 
 Mr. F. Urbig, in the chair. 
 Mr. M. Casenave. 
 Mr. G. Jamieson. 
 Mr. W. D. Straight. 
 
 " The follovi'ing resolutions were passed : 
 
 " 1. Preliminary expenses. — That to carry out and give effect to clause 7 of the agree- 
 ment between the four groups drafted at the meeting of the groups held that day, the 
 American group pay to the French, British, and German groups respectively the sum of 
 £1,500, being 1 per 1,000 on the share of the loan allotted to the American group. 
 
 " 2. Purchasing arrangements. — That the existing arrangements of article 18 of the 
 original loan agreement be allowed to stand, provided that the two purchasing agents give 
 to the French and American groups a letter in the following terms, and provided more- 
 over that said purchasing agents shall be bound to report as far as possible to any group 
 requesting such information regarding the purchase of materials under the instructions of the 
 director-general in accordance with the provisions of the original loan agreement with 
 accompanying despatch and the supplemental loan agreement : 
 
 " ' We beg to inform you that we have been appointed purchasing agents for Hankow- 
 Canton, Hankow-Szechuen railways, in accordance with article 18 of the Hukuang loan 
 agreement initialed on the 6th June, 1909. 
 
 " ' In view of the terms of said loan agreement with accompanying despatch and the 
 agreement supplementary thereto providing for the admission to participation of the Ameri- 
 can group and securing equal consideration for British, German, French, and American 
 materials and equal facilities for the receipt of tenders in the markets of the four countries, 
 we beg to state that we will take all steps necessary to assure the above-mentioned considera- 
 tion for French-American materials and make all proper provision for the receipt on an 
 absolute basis of equality of tenders from British, German, French, and American manu- 
 facturers.' 
 
 " 3. C ommission on materials. — As regards commission on materials it was resolved that 
 one-fifth be retained by purchasing agents to cover expenses; that the balance be divisible; 
 
 " On Hankow-Canton : One-fourth each to the British and Chinese Corporation, Limited, 
 the French group, the German group, and the American group. 
 
 "On Hankow-Szechuen: Two-fourths to Chinese Central Railways, Limited, one- 
 fourth to the German group, and one-fourth to the American group. 
 
 " 4. Rotation of purchasing agents. — It was also resolved that upon any new loan being 
 negotiated for the purposes of the extension referred to in article 4 of the agreement of the 
 23d May, 1910, the group which is entitled to the appointment of chief engineer shall be 
 entitled to nominate the purchasing agent. 
 
 "(Signed) F. Urbig. 
 
 G. Jamieson. 
 M. Casenave. 
 W. D. Straight."
 
 ggg CHINA TREATIES AND AGREEMENTS 
 
 In connection with the loan agreement of May 20, 1911, consult the following corre- 
 spondence supplementary thereto : 
 
 Exchange of Communications between Ministry and Banks, March i and 3, 1913. 
 
 The Minister of Comviunications to the representatives of the Deutsch-Asiatische Bank, the 
 Hongkong and Shanghai Banking Corporation, the Banque de I'lndo-Chine and the 
 American group. 
 
 [Official translation, as printed in Wang, p. 585.] 
 
 ''Peking, March 1, 1913. 
 " Gentlemen : 
 
 "I duly received the letter of the representatives, dated the Uth of July last, in which 
 were submitted four points for discussion. I beg to state that frequent discussions have 
 already taken place and that more than half a year has elapsed since our joint discussion of 
 the 28th of September. A solution has not yet been arrived at. Construction work is in 
 abeyance for lack of funds. Both parties have agreed that no further delay should occur. 
 
 " We have mutually agreed that this ministry shall address a dispatch to you setting 
 forth a method of procedure and I would request that you will assent thereto and favor us 
 with a reply so that funds to meet requirements may be speedily made available. 
 
 " The method of procedure decided upon, under four headings, is as follows : 
 
 " 1. It has already been arranged that the Ssu-ch'uan Commercial Railway shall be 
 taken over and operated by the Government. The Commercial Railway line of the Canton- 
 Hankow Railway in Hunan has already been taken over by Director General Huang in 
 Hunan. The survey of the Canton-Hankow Railway in Hupei is nearing completion and 
 arrangements have been made for commencing work at the Wuchang end. The German 
 engineer-in-chief and the American engineer-in-chief have already been appointed and before 
 many days will proceed to make the survey of their respective sections. The above may all 
 be considered as a simultaneous commencement of work on the four railway lines. 
 
 " 2. According to the terms of Article 14 of the loan agreement one-half of the pro- 
 ceeds of the loan funds transferred to China shall be deposited with the Chiao-Tung Bank 
 or with the Ta-Ching Bank. It is now agreed that the funds transferred to China shall 
 be temporarily deposited with the Deutsch-Asiatische Bank, the Hongkong and Shanghai 
 Banking Corporation, the Banque de I'lndo-Chine and the International Banking Corporation, 
 designated by the American group, in readiness to be drawn upon from time to time as 
 required for the work until such time as either the Chiao-Tung Bank or the Ta-Ching Bank 
 has been reorganized as the State Bank of China and has established its credit, and business 
 relations with foreign banks have been mutually resumed. When such time comes the 
 Government may consult with the groups as to a reversion to the method of procedure laid 
 down in Article 14 of the loan agreement by which the deposits of the proceeds of the 
 loan funds shall be shared with the Chiao-Tung Bank or the State Bank of China as agents, 
 
 " 3. For the purpose of now removing the bondholders' apprehensions that the amount 
 of the likin specified in the agreement as security may have been decreased, the property 
 and materials of the railway are hereby specially given as a provisional guarantee that the 
 likin is unimpaired. Excepting this all other conditions should be carried out in accord- 
 ance with the loan agreement. In the future whenever the Chinese Government is able to 
 demonstrate that the likin is not only unimpaired but assignable by the Central Govern- 
 ment, or to find some other suitable security then the said guarantee of the security shall 
 be immediately cancelled and annulled and it shall be unnecessary to substitute this with any 
 other guarantee. In the event of the Chinese Government drawing up new regulations 
 consequent upon the abolition of likin the same shall be carried out in accordance with Article 
 9 of the loan agreement. 
 
 " 4. By Article 14 of the loan agreement auditors are to be engaged by the banks for the 
 inspection of the accounts. Their duty, as a matter of course, will be to investigate, to 
 consult and make enquiries. They should therefore be in constant attendance at the railway 
 accounts office so that they may be closely connected and acquainted with the affairs relative 
 to their office and they shall continue to function during the time of construction and so 
 long afterwards as the mortgage of the railway, referred to in heading No. 3 of this letter, 
 shall remain in force. In case of doubt as to the employment of loan funds or of any 
 railway revenues, then the auditors are empowered to suspend payment of requisitions until 
 satisfactory explanations are received by them from the managing director and/or the 
 director general. It has already been decided that railway accounts shall be kept in Chinese 
 and English in accordance with modern methods. China, actuated by the desire to have 
 accounts kept so that they shall be clear for auditing, will herself forthwith engage experi- 
 enced foreign accountants whose executive power and appointment to the various railway 
 sections shall be entirely and exclusively controlled by the director general. The director 
 general shall have the sole power of engaging or dismissing the accountants. These
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 
 
 appointments are made by the Chinese Government and have no concern whatever with the 
 loan agreement. 
 
 " With regard to the control of the railway material during the time of construction it 
 is necessary to make proper arrangements. The managing director and the engineer-in-chief 
 should select a foreign engineer to be stationed at the storeyards to control, supervise and 
 keep records and in the event of damage, loss or misuse the managing director and the 
 engineer-in-chief shall be responsible. 
 
 " The above points having been mutually determined upon verbally I have to request 
 that you — the representatives — will promptly reply and proceed to carry out the agreement 
 and thus avoid further loss upon the part of the railways. 
 " With compliments, etc., 
 
 (Signed) " Chu Chi-chien 
 
 "Minister of Communications." (seal) 
 
 The Representatives of the Banks to the Minister of Communications. 
 
 [Text as printed in Wang, p. 591.] 
 
 "Peking, March 3, 1913. 
 " Sir, 
 
 "We have the honor to acknowledge receipt of your letter of the 1st instant setting 
 forth under four headings the procedure which has been agreed upon for carrying out 
 the purposes of the Hukuang Railways loan agreement, as follows : 
 
 [Headings 1, 2, 3 and 4 as in the letter of the Minister of Communications, above.] 
 " In reply we have the honor to state that we are now prepared to arrange for the 
 transfer of loan funds to China for purposes of survey and/or construction in amounts as 
 may be necessitated by the progress of the work. 
 
 " Arrangements are now being made for the engagement of auditors in terms of the 
 loan agreement, and pending their appointment we are prepared to designate members of our 
 banks' stafifs in Hankow to act provisionally as auditors for the Hupei-Hunan section of the 
 Canton-Hankow line and the Hupei section of the Hankow-Ssu-ch'uan line respectively. 
 
 " We shall be glad to learn from you as soon as possible the names of the foreign 
 accountants whom it is the intention of the Chinese Government to engage in accordance 
 with the provisions of heading No. 4 above. 
 " We have the honor to be, Sir, 
 
 Your obedient servants, 
 " For the Hongkong and Shanghai Banking Corporation. 
 
 (Signed) E. G. Hillier, Agent. 
 
 " For the Deutsch-Asiatische Bank 
 
 (Signed) H. Cordes. 
 
 " For the Banque de L'indo-Chine 
 
 (Signed) R. S./vint Pierre. 
 
 " For the American Group 
 
 (Signed) F. H. McKnight." 
 
 Memoranda of September 12, 1913, and Accompanying Correspondence.* 
 
 Director-General Feng to Representatives of the Four Groups. 
 
 "Peking, 12th September, 1913. 
 " Gentlemen, 
 
 " I have the honour to acknowledge the receipt of your letter of September 4th with 
 reference to the omissions to be made in the Draft Memorandum of September 3rd., Article 
 IV. paragraph (e) and in the Annex, Article II. 
 
 " It has now been agreed to omit the whole of the two Clauses above mentioned. I 
 intend upon my return to Hankow immediately to embody the terms of the two said Clauses 
 in the Departmental Regulations. 
 
 "The two Clauses in question read as follows: 
 
 "Memorandum I. Article IV. Paragraph (£) (Draft of 3rd September.) 
 
 " ' The mode of transmitting all funds required by the Engineer-in-Chief for his District 
 Engineers for survey or construction expenditure, shall be settled by the Managing 
 Director in consultation with the Foreign Accountant concerned, with due regard to their 
 
 * Translation. Bank's print.
 
 890 CHINA TREATIES AND AGREEMENTS 
 
 safe, economical and speedy transmission, full consideration being given to the recommenda- 
 tions of the Engineer-in-Chief. 
 
 " ' The District Engineers shall receive, take charge of and account for all funds sent 
 to their districts.' 
 
 "Memorandum II, Article II {Draft of 3rd September.) 
 
 " ' District Engineers will have charge of all stores and materials in their districts, and 
 will be authorised to call for tenders where necessary for construction work and to submit 
 the same with their recommendations to the Engineer-in-Chief for selection. The Engineer- 
 in-Chief will submit his selection to the Managing Director for approval and sanction, which 
 decision will be given with all possible dispatch in order to avoid delay in construction.' 
 
 " I have the honour to be. Gentlemen, 
 " Your obedient servant, 
 
 "(Sd.) Feng Yuan Ting." 
 
 Director-General Feng to Representatives of the Four Groups. 
 
 "Peking, 12th September, 1913. 
 " To the Hongkong and Shanghai Banking Corporation, 
 " Deutsch-Asiatische Bank, 
 " Banque de I'lndo-Chine, and 
 " American Group. 
 " Peking. 
 
 " Sirs, 
 
 " With reference to the Memorandum, of Procedure for Transfer and Expenditure of 
 Funds and Auditing of Accounts in Five Articles with the Annex regarding Construc- 
 tion and Purchase of Materials in Two Articles, for the Hukuang Railways, as agreed 
 to in our meetings. I beg to enclose you herewith copies of these Memoranda for your 
 information and acceptance, and shall be glad to be favoured with your reply confirming 
 the same. 
 
 " I am Sirs, 
 
 " Your obedient servant, 
 
 " (Sd.) Feng Yuan Ting." 
 
 " Hukuang Railways. 
 
 In order to put into operation the terms of the Letters of Agreement of March 1st 
 and 3rd 1913, the following rules of procedure for the transfer and expenditure of funds in 
 five Clauses and the Annex thereto regarding construction and purchase of materials in two 
 Clauses have been agreed upon. 
 
 "Memorandum of Procedure for the Transfer and Expenditure of Funds. 
 
 " 1. In the second half of each month estimates of construction and administrative 
 expenditure for the following month shall be made out by the Foreign Accountants of the 
 Sections concerned based upon the forecasts {vide also Memorandum regarding construction 
 etc.) supplied to them by the Managing Director and Engineer-in-Chief concerned (signed 
 copies of which forecasts are to be attached thereto.) Each estimate will be accompanied 
 by a statement prepared and signed by the Foreign Accountant concerned, showing: — 
 
 " (a) Available balance at the credit of the Construction Account concerned on date 
 
 of report. 
 " (b) Actual cash balance of all imprest accounts. 
 " (c) Approximate expenditure until the end of the current month. 
 " (d) Gold balances of the Hukuang Government Railways Accounts in Europe 
 and/or America. 
 "2. Funds cannot be expended for any purposes other than those for which they were 
 requisitioned in the estimate. Should it be found that additional funds are required for 
 unforeseen contingencies during any month, such funds must be requisitioned for under a 
 supplementary estimate to be dealt with in accordance with the ordinary procedure for 
 monthly requisitions. 
 
 " 3. The monthly estimates and statements above mentioned shall be submitted for 
 sanction before the 20th of every month to the Director-General of the Railways in Hankow, 
 who has been duly empowered by the Ministry of Communications to act as its representa- 
 tive, and copies will be forwarded in due course to the Banks and Auditors concerned. 
 
 " After the Director General has sanctioned these estimates and statements and after 
 they have been passed with all due dispatch by the Auditor concerned, the Director-General 
 will direct the Banks to transfer to China an equivalent amount from the loan funds 
 to be credited to the Construction Account concerned.
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 891 
 
 " It is understood that the provisions of Article 14 paragraph 5 of the Loan Agreement 
 for the forward settlement of exchange still holds good, subject always to the amounts 
 settled being based upon approximate monthly forecasts by the departments concerned. 
 " 4. Funds having passed into Construction Account are then available for expenditure 
 in accordance with the following procedure devised to meet the conditions of the Loan 
 Agreement Article 14 paragraph 9, and the Letters of Agreement of 1st and 3rd Alarch, 
 which require that : — 
 
 ■ the accounts of the Railways shall be kept in " English and Chinese in accordance 
 with accepted modern methods " ' 
 and that : 
 
 " ' they shall be clear for auditing.' 
 
 "(a) AH bills and paysheets must be certified by the heads of departments con- 
 cerned, and initialled and chopped as correct by the Foreign Accountant before they can be 
 paid, with the exception of payments coming under Clause 5 of this Memorandum and of 
 expenditure incurred by District Engineers from their Imprest Accounts. 
 
 "(b) Wherever practicable, payments must be effected by cheques; where payment 
 by cheque is not practicable such payment will be made in cash by the Cashier from an 
 Imprest Account to be furnished to him by the Foreign Accountant. 
 
 "(c) The Cashier will keep a Cash Book for recording all payments made by him. 
 At the close of each day he will hand to the Foreign Accountant a copy of his cash account 
 for the day, accompanied by all vouchers for entry in the Cash Book kept by the Foreign 
 Accountant, together with a Statement of his balance, and will, if desired, produce his cash 
 for inspection by the Auditor. 
 
 "(d) All cheques shall be prepared by the Foreign Accountant and shall be certi- 
 fied as correct by his signature. He will then present them, together with the relative docu- 
 ments to the ^Managing Director for his approval and signature. 
 
 " After the Managing Director has signed the cheques they will remain in the 
 charge of the Foreign Accountant who will be responsible for the safe delivery of the 
 cheques or their proceeds to the payees. 
 
 "(e) Funds required for land purchase as shown in the Engineer-in-Chief's 
 monthly forecast shall be paid by cheque to the Land Office in amounts to meet immediate 
 requirements, and the relative land transfer certificates must be sent by the Managing 
 Director without delay to the Foreign Accountant for comparison and entry. 
 
 " 5. The expenditure of the Director-General's establishment will be a fixed monthly 
 sum of $15,000 to be paid against the receipt of the Director-General. 
 
 " The salaries and allowances of the Managing-Director's establishment, not in- 
 cluding the Foreign Accountant's department, shall also be a fixed monthly sum to be 
 arranged from time to time with the Auditor concerned, and to be approved by the Director- 
 General. 
 
 " This amount will be paid against the receipt of the Managing-Director. 
 
 "Annex. 
 "Memorandum Regarding Construction and Purchase of Materials. 
 
 "1. In order to secure efficiency of construction of the Railways, which at present form 
 the sole security for the Loan, all executive work comprised under the ten main heads of 
 the form of monthly forecast approved by the Director-General and attached hereto, will 
 be carried out by the Engineer-in-Chief, and all orders for the purchase of materials shall 
 be prepared by him, subject always to the authority and approval of the Managing 
 Director. 
 
 "2. In the case of all orders for the purchase of materials (except Chinese materials 
 and goods manufactured in China on which no commission is chargeable) copies of requisi- 
 tions relating thereto shall be handed to the Purchasing Agents without delay in order to 
 enable them to make the necessary arrangements for calling for tenders or placing the 
 orders on the open market, under the terms of Article 18 of the Loan Agreement. 
 
 "Peking, 12th September, 1913."
 
 892 
 
 CHINA TREATIES AND AGREEMENTS 
 
 " Canton-Hankow Railway. 
 " Hupei-Hunan Section. 
 
 ENGINEERING DEPARTMENT. 
 
 " Forecast of Cash Requirements by Main Heads 
 for Month 
 
 Hankow. 
 
 1913. 
 
 " Main Head. 
 
 1. Preliminary Expenses. 
 
 2. Land. 
 
 3. Formation. 
 
 4. Bridge Work. 
 
 5. Fencing. 
 
 6. Telegraph. 
 
 7. Track. 
 
 8. Stations & Buildings. 
 
 9. Plant. 
 
 10. General Charges. 
 
 Stores. 
 Local Purchases. 
 Foreign Purchases. 
 •■ Total : 
 
 " Approved. 
 " Managing-Director. 
 " 1913. 
 
 Amount 
 
 $ 17,000. 00. 
 
 $ 148,000. 00. 
 
 $ 35,000. 00. 
 
 $ 210,000. 00. 
 
 $ 500. 00. 
 
 $ 2,500. 00. 
 
 $ 25,000. 00. 
 
 $ 150,000. 00. 
 
 $ 10,000. 00. 
 
 $ 37,000. 00 . 
 
 $ 635,000. 00. 
 
 $ 5,000. 00. 
 
 $ 320,000. 00 . 
 
 $ 960,000. 00. 
 
 Dollars Nine Hundred and Sixty Thousand. 
 
 1913. 
 
 Remarks. 
 
 " Designation Engineer-in-Chief, 
 1913." 
 
 The Representatives of the Banks to Director-General Feng. 
 
 "Peking, 12th September, 1913. 
 "The Honourable Mr. FENG YUAN TING, 
 Director-General, 
 
 Hankow-Canton and Hankow-Szechuan Railways. 
 " Sir, 
 
 " We have the honour to acknovi^ledge receipt of your letter of to-day's date, enclosing 
 for our information and acceptance copy of the Memorandum of Procedure for Transfer 
 and Expenditure of Funds and Auditing of Accounts, in Five Articles, with the Annex 
 regarding Construction and Purchase of Materials in Two Articles for the Hukuang 
 Railways, as agreed to in our Meetings. 
 
 " In reply, we have the honour to confirm our acceptance of the same. 
 " We have the honour to be. Sir, 
 
 Your obedient servants, 
 " For the Hongkong and Shanghai Banking Corporation, 
 
 E. G. HILLIER, Agent. 
 " For the Deutsch-Asiatische Bank, 
 
 A. J. EGGELING. 
 " For the Banque de I'lndo-Chine, 
 
 R. SAINT PIERRE. 
 " For the International Banking Corporation, 
 
 D. A. MENOCAL, Manager. 
 On behalf of the American Group." 
 
 Exchange of Communications between the Banks and the Ministry, September 
 26, 1913.— January 23, 1914. 
 
 Banks to Ministry, September 26, 1913. 
 
 "Peking, 26th September, 1913. 
 
 " To The Honourable Mr. Chou Tzu-ch'i, 
 
 Minister of Communications. 
 "Sir: 
 
 " The regulations recently issued by the Director-General of the Hukuang Railways 
 for the transfer and expenditure of Loan funds and for the carrying out of construction
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 893 
 
 and purchase of materials, marked the commencement of active work upon that system 
 of railways, the construction of which with all possible dispatch, the Chinese Govern- 
 ment rightly regards as of the first importance for the improvement of communications 
 and the pacification and development of the provinces to be traversed. 
 
 " Not only is it the desire of the Groups responsible for the financing of these Rail- 
 ways to assist by every means the objects of the Central Government, but the fact that 
 by the special arrangement concluded under the letters of the agreement of the 1st and 
 3rd March last, the Loan is secured by a mortgage on the lines to be constructed, gives 
 them an additional interest in their sound construction and profitable development. 
 
 " Of the railway lines contemplated under the Loan Agreement, the section between 
 Ichang and Kweifu will undoubtedly be the most difficult and costly, and the heavy expendi- 
 ture required for its construction could only be justified by its extension westwards to 
 Chengtu, whereby the wealth and productiveness of the province of Szechuan could be 
 brought into direct communication with the trade of the Lower Yangtze. 
 
 " in order, therefore, that the heavy expenditure upon the section in question may be 
 made remunerative with the least possible delay, and that the earning power of the rail- 
 way line may not be prejudicially affected by the granting of concessions for other lines, 
 the Groups' Representatives feel it their duty to urge that an immediate decision should 
 be come to, with regard to the construction of the required extension, and that arrange- 
 ments should be made for its survey to Chengtu during the coming winter, in order that 
 construction may be commenced as soon as possible. 
 
 " The financing of such an extension is provided for by the terms of Article XIX of 
 the Loan Agreement, under which, in the event of the Chinese Government requiring 
 to borrow foreign capital, preference is to be given to our Groups. 
 
 " It appears to the Groups' Representatives important that the cost of this survey 
 should not be a charge upon the funds of the present loan, which are already clearly 
 insufficient for the work at present in progress, and they would therefore be glad to 
 recommend to their Groups the advance of the necessary funds. 
 
 " We have the honour to submit the foregoing remarks for your consideration, and 
 to request that you will be so good as to inform us as early as possible as to the views 
 of the Chinese Government on the matters in question. 
 
 " We have the honour to be, Sir, 
 
 " Your obedient servants, 
 " (Signed by 
 
 "The Representatives of the Groups.)" 
 
 Banks to Ministry, October 27, 1913. 
 
 " Peking, 27th October, 1913. 
 " To The Honourable Mr. Chou Tzu-chi, 
 Minister of Communications. 
 "Sir, 
 
 " We have the honour to acknowledge receipt of your letter of to-day's date, inform- 
 ing us that your Ministry has now concluded an Agreement with the Hunan Railway 
 Company, whereby the Hunan Section of the Hankow-Canton Railway is to be nationalised 
 forthwith, in consideration of delivery by your Ministry to the Company of Chinese Gov- 
 ernment Treasury bonds for an amount — subject to final adjustment of accounts — of 
 approximately twelve million dollars, the first instalment of which, amounting to $684,950 
 plus the amount of interest due for October of this year amounting to $25,000, making 
 a total of $709,950.00, becomes due on October 31st, 1913. 
 
 " Your Ministry now requests the payment from loan funds of the said sum of 
 $709,950.00 (which does not include the Szechuan-Hupei Line), to be considered as the 
 first instalment of further payments from loan funds up to_ an aggregate amount not 
 exceeding the final valuation of the Hunan Section by the British Engineer-in-Chief. 
 
 " You state that it has been agreed between your jMinistry and the Hunan Railway 
 Company that on payment of the aforesaid first instalment of $709,950, the Company will 
 forthwith relinquish all its rights in respect to the said section, and will look solely to the 
 Chinese Government for the payment, when due, of all further instalments in excess of 
 the estimate of the Engineer-in-Chief, without recourse against the Hukuang Railways. 
 Further that a declaration to the effect that the Chiao Tung Bank has been designated by 
 the Central Government its Agent for the repayment of principal and payment of interest 
 of these bonds without recourse against the Hukuang Railways will be stamped on the 
 Chinese Government bonds above-mentioned before their issue by your Ministry, in order 
 to show clearly that the said railway line is to be forthwith incorporated in the Hupei- 
 Hunan Section of the Canton-Hankow Railway, as part of the security for the Hukuang 
 Railways Loan (that is to say the security mentioned in the letter of March 1st, 1913). 
 
 " As evidence of this understanding your Ministry enclose for our information copies 
 of telegrams which have been exchanged with its four delegates sent to Hunan.
 
 894 CHINA TREATIES AND AGREEMENTS 
 
 " In reply we have the honour to inform you that we agree to the conditions stated 
 in your letter and referred to above, and are prepared to receive your instructions with 
 regard to the transfer from the loan funds of the equivalent of $709,950.00, the proceeds 
 of which our Branches in Hankow will be requested to hold at your disposal for payment 
 to the Hunan Railway Company. 
 " We have the honour to be, 
 
 Sir, 
 
 '■ Your obedient servants. 
 " (Signed by the Representatives of the Groups.)" 
 
 Banks to Ministry, January 22, 1914. 
 [Text as printed in Wang, p. 601.] 
 
 " Peking, 22nd January, 1914. 
 " The Honourable Mr. Feng Yuan Ting, 
 
 Vice-Minister of Communications and 
 Director-General, Hukuang Railways. 
 "Sir: 
 
 " We have the honour to acknowledge the receipt of your letter No. 1 of 22nd January, 
 in which you set forth under five headings the understanding now reached with regard to 
 the redemption of the Hunan and Szechuan Railways as follows: — 
 
 " ' 1. — In accordance with the report of the Engineer-in-Chief, IMr. CoUinson, the 
 materials, and property of the Hunan Railway Company are worth at least $2,300,000. 
 The first instalment of the principal and interest upon the shares amounting to $709,950 
 has been paid, and provision has been made by the above mentioned transfer of £55,000 
 for the payment of $554,150 due on account of the second instalment of the principal and 
 interest of the Hunan Railway Company's shares. In addition, it has been decided to 
 make a provision of $1,000,000 to meet payment of the debts of the Hunan Railway Com- 
 pany on account of materials, &c. The total of the above amounts is within the amount 
 of $2,300,000 estimated to be the minimum value of the line by the Engineer-in-Chief. 
 
 " ' 2. — With the exception of the sums enumerated above, the Ministry of Communica- 
 tion takes full and entire responsibility for the payment of all money due to the Hunan 
 Railway Company for redemption of the railway and for payment of its debts of every 
 description. 
 
 " ' 3. — Should the final estimate of the Engineer-in-Chief exceed the aforesaid sum of 
 $2,300,000, the amount of excess shall be paid from loan funds in terms of the Letter 
 of Agreement of 27th October, 1913. 
 
 " • 4. — In the event of there being a surplus from the $1,000,000 provided for the pay- 
 ment of the debts of the Hunan Railway Company after all claims have been paid, it shall 
 be applied to the payment of the principal and interest upon the shares of the line, in 
 terms of the letter of Agreement of 27th October, 1913. 
 
 " ' 5. — With regard to the payment to be made for the redemption of the Hunan and 
 Szechuan Railways, the Loan Agreement only allows £600,000 for this purpose. The 
 total amount of money for redemption of the two lines from loan funds must therefore 
 not exceed £600,000, but in case this should prove insufficient it is agreed that the neces- 
 sary appropriation shall be made from the second series of the loan provided for under 
 Article 15 of the Loan Agreement, it being understood that the total appropriation of 
 loan funds from the first and second series for the resumption of the said lines shall not 
 exceed their final Valuation by the Engineer-in-Chief.' 
 
 " In reply we have the honour to confirm that we agree to the above five clauses on 
 condition that we receive from the Minister of Communications the reply to our letter 
 of September 26th last respecting the extension of the Szechuan Railway, asked for in 
 our letter Xo. 2 of to-day's date. 
 
 " We have the honour to be. Sir, 
 
 " Your obedient servants, 
 "(Signed) E. G. Hillier, 
 
 " H. Cordes. 
 
 " R. Saint Pierre, 
 
 " D. A. Menocal." 
 
 Banks to Ministry, January 22, 1914. 
 
 " Peking, 22nd January, 1914. 
 "The Honourable Mr. Chou Tzu-ch'i, 
 Minister of Communications. 
 " Sir, 
 
 "On the 26th September and 11th November last we addressed you on the subject 
 of the extension of the Ichang-Kweifu section to Chengtu, and the importance of an
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 895 
 
 immediate decision on this matter being taken by the Chinese Government in view of the 
 expenditure which is now about to be made on the section in question. 
 
 " In the meantime an understanding has been arrived at with the Director-General 
 with regard to the resumption of the Huna (Hunan) and Szechuan Provincial Railways, 
 which makes it desirable to deal comprehensively with the whole question of the Han- 
 Yiieh-Chuan Railways. 
 
 " According to the Loan Agreement the Hupei-Hunan section of the Canton-Hankow 
 Railway stops in the district of Yichanghsien on the border of Hunan Province. Ijut 
 unless this line is extended and connection with Canton completed, it cannot be made a 
 commercial success, and there appears to be no certainty as to when the line now under 
 construction by the Canton Provincial Company will be completed to the border of Hunan. 
 
 " We would therefore beg to state that if the Chinese Government should decide to 
 change the present commercial status of the Provincial Railway, and should find it neces- 
 sary to borrow capital for that purpose, the Group Banks will be prepared to furnish the 
 funds necessary for dealing with this matter in accordance with the intentions of the 
 Chinese Government. 
 
 " We have the honour to request that if the above proposal in regard to the Canton 
 extension meet your wishes, you will be good enough to inform us in this sense, and at 
 the same time favour us with a reply to our letter of 26th September last with regard to 
 the Szechuan extension. 
 
 " We have the honour to be, Sir, 
 " Your obedient servants, 
 
 "(Sd.) E. G. HILLIER, 
 
 HEINRICH CORDES, 
 R. SAINT PIERRE, 
 D. A. DE MENOCAL." 
 
 Ministry to Banks, January 23, 1914. 
 
 [Translation.] 
 
 " To The Hongkong & Shanghai Bank, Deutsch-Asiatische Bank, Banque de ITndo-Chine, 
 
 International Banking Corporation, 
 " Peking. 
 " Sirs : 
 
 " I beg to acknowledge receipt of your letters dated 26th September and 11th November 
 of last year and 22nd January of this year, all of which I have noted. 
 
 " With regard to the extension of the Szechuan line to Chengtu, this ministry intends 
 at an early date to proceed with this extension, and to settle upon a method of procedure 
 in respect of the surveys and other matters as soon as possible, in consultation with the 
 groups. 
 
 " With regard to the extension of the Hupei-Hunan line into Kuangtung territory, 
 this ministry notes that should the Chinese Government, in the future, decide to change 
 the commercial status of the Canton Provincial Railway and have to borrow funds, the 
 groups are willing, in accordance with the intentions of the Chinese Government, to pro- 
 vide a loan for this purpose. With regard to this question it is the intention of this min- 
 istry to consult with the groups at an early date. 
 
 " I have, etc. 
 
 " (Sd.) Chou Tzu Ch'i." 
 " 23rd January, 1914. 
 
 Note 2. 
 
 With a view to the nationalization of the Hunan and Hupei provincial railways, con- 
 templated by Article 3, there was issued on ^lay 9, 1911, an imperial edict of which the 
 translation is as follows : 
 
 Imperial Edict regarding Nationalization of Trunk Lines of Railway, May 9, 1911. 
 
 " The Board of Posts and Communications has memorialized stating that in obedience 
 to instructions the memorial of the supervising censor Shih Ch'ang-lien on the importance 
 of clearly determining the treatment of trunk and branch railway lines has been taken 
 into consideration. 
 
 " The plan proposed is eminently suitable. China has a great area. Her boundaries 
 are far apart. The distances amount to several ten thousands of li, to traverse which 
 requires many months. The court thinks day and night about the difficulty of guarding 
 the frontier, wishing to find a way to overcome it. But there is no other way than to
 
 896 CHINA TREATIES AND AGREEMENTS 
 
 construct railways quickly. Moreover the consultations connected with constitutional gov- 
 ernment, the movements of troops, the transportation of produce, all depend on convenient 
 means of communication. All important reforms depend on this. 
 
 " The Government must have in all directions extending to the borders of the Empire 
 great trunk lines in order to carry on government effectively, and to maintain centralised 
 authority. Hitherto the methods have been ill-conceived and there has been no fixed plan, 
 with the result that the railway administration of the whole country has fallen into con- 
 fusion. There has been no distinction between trunk and branch lines and no estimate of 
 the powers of the people. Requests on paper to act hastily have been granted. Com- 
 mercial railway enterprises have been carried on for many years. In Kuangtung shares 
 have been withdrawn and only a small section of railway has been built. In Szechuan 
 there has been misappropriation of funds and fruitless attempts to recover. In Hunan 
 and Hupei offices have been opened for many years, capital has been vainly wasted to 
 the exhaustion of the people's resources, either by useless extravagance or by fraudulent 
 practices. If this period of waste continues longer the burdens of the people will be the 
 heavier and both Government and people will suffer injury. How can we contemplate 
 the consequences of such mistakes? We now clearly proclaim to the whole Empire that 
 the trunk railway lines are to belong to the Government. This is to be the fixed policy 
 of the Government. All the companies which have been organized in the provinces before 
 the 3rd year of Hsuan-t'ung which have been hindering too long by their failures should 
 at once revert to the Government, which will build the roads without further delay. 
 Branch roads may still be connected by the people according to their ability, but all permits 
 heretofore issued for the building of trunk lines are hereby cancelled. As to the method 
 of taking over these enterprises the Board of Finance and the Board of Communications 
 will carefully work out the details in accordance with this edict, asking without delay for 
 the edict to put them in execution. 
 
 " The ministers concerned must not show indecision nor delay this matter. If any, 
 disregarding the larger interests involved, make disturbances about the railway admin- 
 istration, encourage discontent and opposition, they will be dealt with at once as ofifenders 
 against imperial regulations. 
 
 " Let this be widely proclaimed." 
 
 The text of the agreement by which the Central Government took over the Hunan 
 section of the Canton-Hankow Railway is not available. The following is the translation 
 of the agreement concluded November 2, 1912, between the Department of Communica- 
 tions and the Szechuan-Hankow Railway Company, for the taking over of the company's 
 line : 
 
 Agreement for Purchase by Government of Szechuan-Hankow Railway Company's 
 
 Line, November 2, 1912. 
 
 " Liu Sun-yuan (hereinafter to be called the representative) acting as representative 
 to the Szechuan-Hankow Railway Company (hereinafter to be called the Company) has 
 received full powers from the whole body of shareholders of the said Company, to confer 
 with the Department of Communications (hereinafter to be called the Department) regard- 
 ing the nationalization of the said railway, and has agreed as follows: 
 
 " 1. — The construction work, machinery, workshop, and land, etc., of the whole Ichang- 
 Wanhsien section of the Szechuan-Hankow Railway shall be handed over to the govern- 
 ment, as agreed upon by the whole body of shareholders of the Company, and all other 
 sections of the Szechuan-Hankow Railway (from Chengtu to Wanhsien) shall also be 
 handed over to the Government : but in the future, if the Government alter the location 
 of the railway, in such a way that this railway is not made a trunk line, excepting the 
 Ichang- Wanhsien section, all other sections shall still be turned over to the Company. 
 
 " 2. — All cash funds of the Company shall be taken back by the Company to be used 
 for other industrial purposes : such cash funds are of the following description : — those 
 funds that are deposited with the Bank of Communications, the Hanyang Iron Works, 
 the Cement Company, and all the cash funds of the Company deposited in Shanghai, 
 Hankow, Chungking, Chengtu : in addition to this, the machinery and workshop land and 
 all other appended property of the copper mint of Chengtu, shall also be taken back by the 
 Company, and the Government shall undertake to draw back for the Company all such 
 funds as loaned to the Bank of Communications, and advances made to the Hanyang iron 
 works. 
 
 " 3. — Regarding the public loan bonds issued on account of the payment of con- 
 struction work on the Ichang-Wanhsien section, the outstanding debts on account of 
 materials bought of the various foreign companies, and the loan of the Hupei Army's 
 Payment Bureau Loan, the above three items amounting to about Tls. 900,000 : it is 
 agreed that the said bonds shall be redeemed by the Government, the outstanding accounts 
 with the various foreign companies to be settled by the Government, and the Hupei Army 
 Payment Bureau Loan shall be taken care of by the Company. 
 
 " 4. — The Department shall issue promissory notes to the Company to reimburse all
 
 NUMBER 1911/5: MAY 20, 1911: NOTES 897 
 
 direct and indirect expenditure incurred on construction work by the Company expendi- 
 ture directly or indirectly incurred by the Company, and beginning on the date when the 
 railway is received by the Government, an annual interest of six per cent shall be started 
 on this reimbursement due to the Company, and the interest shall be paid to the Com- 
 pany once a year. All expenditure direct on construction work directly incurred by the 
 Company up to the end of the eighth month of the first year of the Republic (August 
 31, 1912) shall be paid to the Company in instalments, within ten years: all expenditure 
 indirectly on construction work incurred by the Company, such as interest on shares, 
 salaries, students' tuition, etc., shall be reimbursed to the Company in instalments within 
 five years, beginning on the eleventh year of taking over of the railway by the Govern- 
 ment ; the different items are detailed on a separate statement. All the interest on shares 
 due to shareholders before the taking of the railway, shall be reckoned as indirect expendi- 
 ture. All the direct and indirect expenditure shall be calculated according to the records 
 of the Szechuan Railway Company Shareholders' Meeting and the records kept by the 
 Department of Posts and Communications of the former Tsing Dynasty. All direct expendi- 
 ture shall be calculated jointly by a specially appointed officer of the Department and the 
 manager of the Company at Ichang: the indirect expenditure shall be calculated jointly 
 by a specially appointed officer of the Department and the head office of the Company at 
 Chcngtu, so that the railway may be properly handed over. All expenditures that have no 
 bearing on the railway work either directly or indirectly, shall not be taken into account. 
 
 " 5. — All bankrupt accounts at Shanghai shall be attended to by the Company and the 
 Government shall assist in the collecting of such accounts. 
 
 "6. — If in the future the Szechuan-Canton-Hankow General Railway Company be 
 organized, the holders of promissory notes mentioned in Article 4 shall be free to exchange 
 such promissory notes for share certificates of the General Railway Company. 
 
 " 7. — All detail procedures for the carrying out of the above articles shall be further 
 discussed by the representative with the Department. 
 
 " The Department, 
 
 " The Representative." 
 " November 2, 1912. 
 
 Note 3. 
 
 With the object of giving more practical eflFect to the principle of impartial pref- 
 erence, as among the markets of the four nationalities concerned, in respect to the supply 
 of equipment and materials, a conference of directors and engineers-in-chief of the 
 Hukuang railways was held, under the chairmanship of the director General (Dr. Jeme 
 Tien-yu) at Hankow in May, 1914. The following articles were adopted by the con- 
 ference in reference to bridges (May 20 and 21) and in regard to locomotives and rolling- 
 stock (May 25) : 
 
 Hankow Conference Resolutions concerning Equipment and Materials for Hukuang 
 
 Railways, May 20-25, 1914. 
 
 " Bridges. 
 
 " 1. Consulting engineers to be appointed by the Ministry of Communications in each 
 country with authority to approve or reject the designs and workmanship of the manu- 
 facturers and to officially accept the structure on behalf of the section for which the struc- 
 ture is intended. 
 
 "2. All indents must be forwarded by the managing directors of the various sections 
 to the director general, who in sending indents to the purchasing agents will forward 
 copies simultaneously to the groups banks in New York, London, Paris and Berlin for 
 distribution and advertisement, and the representatives of the groups banks in Peking 
 for distribution to the local representatives of the American, British, French and German 
 manufacturers. 
 
 " 3. Sealed bids with recommendations to be presented to the director general at 
 Hankow by the consulting engineers of the various countries interested ninety days from 
 the date indents are forwarded by the director general to the groups banks in New York, 
 London, Paris and Berlin. Local manufacturers forward their bids direct to the director 
 general at Hankow. 
 
 " 4. All tenders to be publicly opened in the presence of the bidders' representatives 
 on that date. 
 
 "5. The specifications of the material to be used throughout in tendering for the 
 supply of bridges and bridge material and for the manufacture and fabrication of same 
 shall be in strict accordance with the recognized standards and best practices prevailing 
 in Great Britain, France, Germany and the United States of America.
 
 898 CHINA TREATIES AND AGREEMENTS 
 
 " For material as accepted from Great Britain, the specifications for same shall be 
 as recommended by the British Standards Committee as affiliated with the International 
 Association for testing materials. 
 
 " For materials as accepted from the United States of America, the specifications for 
 same shall be in accordance with the specifications recommended by the American Society 
 for testing materials affiliated with the International Association for testing materials. 
 
 " For materials as accepted from Germany, the specifications for same shall be in 
 accordance with the specifications as recommended by Konigl. preussische staatseisenbahn 
 verwaltung (Royal Prussian state railway administration). 
 
 " For materials as accepted from France, the specifications for same shall be in accord- 
 ance with the specifications as recommended by a similar society to the above and affiliated 
 v/ith the International Association for testing materials. 
 
 " 6. The chief engineers shall submit the type of bridge required, together with the 
 span, length over-all, depth or height, width or loading, when tenders are invited, and 
 the bidders shall submit tenders each in accordance with the approved specification of the 
 nationality of the bidders. 
 
 " 7. The most favorable American, British, French and German bidders complying 
 with the adopted specifications to be immediately awarded the contract." 
 
 " Locomotives and Rolling Stock. 
 
 " 1. Consulting engineers to be appointed by the Ministry of Communications in each 
 country with authority to approve or reject the designs and workmanship of the manu- 
 facturers and to officially accept the locomotives and rolling stock on behalf of the section 
 for which the locomotives and rolling stock are intended. 
 
 " 2. All indents must be forwarded by the managing directors of the various sections 
 to the director general, who in sending indents to the purchasing agents will forward 
 copies simultaneously to the groups banks in New York, London, Paris and Berlin for 
 distribution and advertisement, and the representatives of the groups banks in Peking for 
 distribution to the local representatives of the American, British, French and German 
 manufacturers. 
 
 " 3. Sealed bids with recommendations to be presented to the director general at 
 Hankow by the consulting engineers of the various countries interested ninety days from 
 the date indents are forwarded by the director general to the groups banks in New York, 
 London, Paris and Berlin. Local manufacturers will forward their bids direct to the 
 director general at Hankow. 
 
 " 4. All tenders to be publicly opened in the presence of the bidders' representatives 
 on that date. 
 
 " 5. The specifications of the material to be used throughout the tendering for the 
 supply of locomotives and rolling stock and for the manufacture and fabrication of same 
 shall be in strict accordance with the recognized standards and best practices prevailing 
 in Great Britain, France, Germany and the United States of America. 
 
 " Only usual tests of quality shall be required and no chemical analysis to be pre- 
 scribed. Furthermore, the production of the stee^ shall be left to the manufacturers. 
 
 " In construction and design of details each country to use its own standards, method 
 of construction, quality of workmanship and tests and all of the foregoing, providing 
 they are standard in one of the four countries, are to be acceptable to the other three 
 countries. 
 
 " All tenders to be accompanied by a certificate from the manufacturer indicating upon 
 the basis of which specifications the tender is made, bidders being privileged to select one 
 of the four following specifications : 
 
 " I. The specifications recommended by the British Standards Committee. 
 " 2. The specifications recommended by the American Society for testing ma- 
 terials. 
 
 " 3. The specifications recommended by the Konigl. preussische Staatseisenbahn 
 
 verwaltung (Royal Prussian state railway administration). 
 
 " 4. The specifications recommanded by the Cahiers des charges unifies des 
 
 compagnies franqaises de chemins de fer. 
 
 " 6. English and metric standard system of measurements. In the event of specifications 
 being issued in the metric system the English equivalent to the nearest sixteenth of an inch 
 higher is to be accepted, and in the event of specifications being issued in the English system 
 the correspondingly higher metric equivalent is to be accepted. 
 
 "7. The engineer-in-chief specifies in the tenders the type of construction of the engines, 
 including the general measurements required, as accurately as possible. All details referring 
 to maximum axle pressure, power of engine, gradients, curves, etc., must be mentioned in the 
 tender-specifications. 
 
 " In the tender-specifications accurate description of special engine fittings should be 
 made by the engineer-in-chief. 
 
 " 8. The construction of the engines shall be under the control of the consulting engi-
 
 NUMBER 1911/6: JUNE 10/23, 1911 899 
 
 neer. He is also responsible for tests of material used for their construction. Any pro- 
 posals made by the consulting engineer should be carefully considered. Parts which are 
 rejected on account of faulty material or bad workmanship must on no account be used. 
 
 " 9. The most favorable American, British, French and German bidders complying with 
 the adopted specifications to be immediately awarded the contract." 
 
 NUMBER 1911/6. 
 
 JAPAN AND RUSSIA. 
 
 Convention for the reciprocal protection of industrial property in China* — 
 
 June 10/23, 1911. 
 
 His Majesty the Emperor of all the Russias, and His Majesty the Emperor 
 of Japan, desiring to assure in China the reciprocal protection of the industrial 
 property of their respective subjects, have resolved to conclude a convention for 
 that purpose, and have named their plenipotentiaries, to wit : 
 
 His Majesty the Emperor of all the Russias, His Ambassador Extraordinary 
 and Plenipotentiary near His Majesty the Emperor of Japan, the Master of his 
 Court and Senator Nicolas Malewsky-Malewitch ; and 
 
 His Majesty the Emperor of Japan, his Minister for Foreign Affairs, Marquis 
 Jutaro Komura, Shosammi, Grand Cordon of the Imperial Order of the Rising 
 Sun (with Paulo wnia flowers), 
 
 who, having communicated to each other their full powers, found to be in 
 good and due form, have agreed upon the following articles : 
 
 Article 1. — The inventions, designs, and trademarks, duly patented or 
 registered by the subjects of one of the high contracting parties in the appro- 
 priate office of the other contracting party, will have in all parts of China the 
 same protection, against any infringement by the subjects of that other contract- 
 ing party, as in the territories and possessions of that other contracting party. 
 
 Article 2. — In cases of infringement, in China, by any subject of one of the 
 two high contracting parties, of any invention, design, or trademark whatsoever, 
 entitled to protection by virtue of the present convention, the injured party will 
 have, before the competent national or consular tribunals of that contracting party, 
 the same rights and recourse as the subjects of that contracting party. 
 
 Article 3. — It is mutually agreed between the two high contracting parties 
 that the effect of the present convention will be extended, in so far as it is 
 applicable, to all other countries where each of them may have the rights of 
 extraterritorial jurisdiction. 
 
 All the rights arising out of the present convention will be recognized in the 
 insular and other possessions and the territories occupied under lease by the high 
 contracting parties, and all the legal means contemplated for the protection of 
 such rights will be duly applied by the competent tribunals. 
 
 * Translation from the French text as printed in Izviestia, 1913, vol. II, p. 12.
 
 900 CHINA TREATIES AND AGREEMENTS 
 
 Article 4. — Every person to whom the provisions of this convention are 
 appHcable, who, at the time when the present convention comes into force, pos- 
 sesses any merchandise bearing an imitation of a trademark belonging to 
 another person and entitled to protection by virtue of the said convention, must 
 remove or cancel this false trademark, or withdraw this merchandise from the 
 Chinese market within a period of six months from the coming into force of this 
 convention. 
 
 Article 5. — The present convention will be ratified, and the ratifications 
 thereof will be exchanged at Tokyo, as soon as possible. It will come into force 
 four months after the exchange of ratifications. 
 
 In faith whereof the respective plenipotentiaries have signed the present 
 convention and affixed their seals thereto. 
 
 Done in duplicate at Tokyo, June 10/23, 1911, corresponding to the 23rd 
 day of the 6th month of the 44th year of Meiji. 
 
 (Sgd) N. Malewsky-Malewitch (L.S.) 
 
 (Sgd) JUTARO KOMURA (L.S.) 
 
 NUMBER 1911/7. 
 
 GREAT BRITAIN AND JAPAN. 
 
 Agreement respecting the integrity of China, the general peace of Eastern Asia 
 and India, and the territorial rights and special interests of the Parties in 
 those regions.^ — July 13, 1911. 
 
 Preamble. 
 
 THE Government of Great Britain and the Government of Japan, having in 
 view the important changes which have taken place in the situation since the 
 conclusion of the Anglo-Japanese Agreement of the 12th August, 1905, and 
 believing that a revision of that Agreement responding to such changes would con- 
 tribute to general stability and repose, have agreed upon the following stipulations 
 to replace the Agreement above mentioned, such stipulations having the same 
 object as the said Agreement, namely ; 
 
 (a) The consolidation and maintenance of the general peace in the regions 
 of Eastern Asia and of India ; 
 
 (&) The preservation of the common interests of all Powers in China by 
 insuring the independence and integrity of the Chinese Empire and the principle 
 of equal opportunities for the commerce and industry of all nations in China; 
 
 (c) The maintenance of the territorial rights of the High Contracting Parties 
 
 *Text as printed in British Treaty Series, No. 18 (1911). 
 
 In connection with this agreement see also the Anglo-Japanese agreements of January 
 30, 1902 (Xo. 1902/2, anie) and August 12, 1905 (No. 1905/6, ante).
 
 NUMBER 1911/7: JULY 13, 1911 901 
 
 in the regions of Eastern Asia and of India, and the defence of their special inter- 
 ests in the said regions : — 
 
 Article I. — It is agreed that whenever, in the opinion of either Great Britain 
 or Japan, any of the rights and interests referred to in the preamble of this 
 Agreement are in jeopardy, the two Governments will communicate with one 
 another fully and frankly, and will consider in common the measures which 
 should be taken to safeguard those menaced rights or interests. 
 
 Article II. — If by reason of unprovoked attack or aggressive action, where- 
 ever arising, on the part of any Power or Powers, either High Contracting Party 
 should be involved in war in defence of its territorial rights or special interests 
 mentioned in the preamble of this Agreement, the other High Contracting Party 
 will at once come to the assistance of its ally, and will conduct the war in com- 
 mon, and make peace in mutual agreement with it. 
 
 Article III. — The High Contracting Parties agree that neither of them 
 will, without consulting the other, enter into separate arrangements with another 
 Power to the prejudice of the objects described in the preamble of this Agreement. 
 
 Article IV. — Should either High Contracting Party conclude a treaty of 
 general arbitration with a third Power, it is agreed that nothing in this Agreement 
 shall entail upon such Contracting Party an obligation to go to war with the 
 Power with whom such treaty of arbitration is in force. 
 
 Article V. — The conditions under which armed assistance shall be afforded 
 by either Power to the other in the circumstances mentioned in the present Agree- 
 ment, and the means by which such assistance is to be made available, will be 
 arranged by the Naval and Military authorities of the High Contracting Parties, 
 who will from time to time consult one another fully and freely upon all questions 
 of mutual interest. 
 
 Article VI. — The present Agreement shall come into effect immediately 
 after the date of its signature, and remain in force for ten years from that date. 
 
 In case neither of the High Contracting Parties should have notified twelve 
 months before the expiration of the said ten years the intention of terminating it, 
 it shall remain binding until the expiration of one year from the day on which 
 either of the High Contracting Parties shall have denounced it. But if, when the 
 date fixed for its expiration arrives, either ally is actually engaged in war, the 
 alliance shall, ipso facto, continue until peace is concluded. 
 
 In faith whereof the Undersigned, duly authorised by their respective 
 Governments, have signed this Agreement, and have affixed thereto their Seals. 
 
 Done in duplicate at London, the 13th day of July, 1911. 
 
 E. Grey, 
 His Britannic Majesty's Principal Secretary of 
 State for Foreign Affairs. 
 Takaaki Kato, 
 Ambassador Extraordinary and Plenipoten- 
 tiary of His Majesty the Emperor of Japan 
 at the Court of St. James.
 
 902 CHINA TREATIES AND AGREEMENTS 
 
 NUMBER 1911/8. 
 
 FRANCE (Banque de I'Indo-Chine), GERMANY (Deutsch-Asiatische Bank), 
 
 GREAT BRITAIN (Hongkong & Shanghai Banking Corporation), 
 
 UNITED STATES (American Group) AND CHINA. 
 
 Agreement for the Hupei Provincial seven per cent silver loan of 1911. — 
 
 August 14, 1911. 
 
 This Agreement is made between His Excellency Jul Cheng, Viceroy of the 
 Hukwang Provinces, of the one part, and the Hongkong and Shanghai Banking 
 Corporation, the Deutsch-Asiatische Bank, the Banque de ITndo-Chine and the 
 American Group represented by the International Banking Corporation, here- 
 inafter called the Banks, of the other part. 
 
 Whereas the Viceroy of the Hukwang provinces, His Excellency Jui Cheng, 
 has for the purpose and with the object of repaying outstanding loans contracted 
 on onerous conditions. Memorialized the Throne for and received an Imperial 
 Edict, authorising him to raise a foreign loan for Taels 2,000,000, and to seal the 
 loan bonds hereinafter referred to, it is hereby Agreed as follows : 
 
 1. — The Loan shall be called "The Hupei Provincial Seven Per Cent Silver 
 Loan of 1911." 
 
 2. — The Banks agree to lend to the Viceroy of the Hukwang Provinces, and 
 the Viceroy agrees to borrow from the Banks, the sum of Two Million Taels 
 (Tls. 2,000,000), the payment and repayment of which said sum and of interest 
 thereon are to be made in Hankow in Taels of Hankow Yang-li Sycee or its 
 equivalent in coin of the National Currency if the said Currency shall have been 
 effectively established. 
 
 3. — The Banks shall, on the execution of this Agreement, pay to the Viceroy 
 in full the sum of Two Million Taels (Tls. 2,000,000) Hankow Yang-li Sycee. 
 
 4. — The period of the said Loan of Tls. 2,000,000 shall be ten years and the 
 interest thereon shall be Seven per cent per annum to be computed from the 
 date of this Agreement, and shall be paid by the Viceroy or his successors in 
 office to the Banks half-yearly in accordance with Schedule attached to this 
 Agreement, but twelve days before the due dates as shown thereon until repay- 
 ment of the Loan has been completed. The principal shall be repaid in ten half- 
 yearly instalments of two hundred thousand Taels (Tls. 200,000) commencing 
 with the Sixth year in accordance with the Schedule attached to this Agreement 
 but twelve days before the due dates shown thereon. 
 
 The first repayment of principal will be made twelve days before the four- 
 teenth day of February, 1917. 
 
 After each instalment of the principal is paid, interest at the rate aforesaid 
 shall only be charged on the principal for the time being remaining owing. 
 
 All payments of interest and repayments of principal shall be made to the 
 four Banks in Hankow in equal shares.
 
 NUMBER 1911/8: AUGUST 14, 1911 903 
 
 5. — This loan is secured by a third mortgage on the Ichang Salt Likin amount- 
 ing to about One Million Taels (Tls. 1,000,000) per annum already charged 
 with the service of the Imperial Chinese Government 4^/2 Per Cent Sterling Loan 
 of 1898 for £16,000.000 and the Silver Loan for Five hundred thousand Taels 
 Hankow Sycee (Hankow Tls. 500,000) made by the Hongkong and Shanghai 
 Banking Corporation to the Hupei Government on the 14th day of August 1909, 
 and shall rank as regards security for principal and interest immediately after the 
 two said loans, which the Viceroy hereby guarantees to be the only existing charges 
 on the said Salt Likin. The Viceroy further guarantees on behalf of himself 
 and his successors in Office that if in future it shall be necessary to employ the 
 said Likin as security, it shall in no wise affect this the third pledge: moreover, 
 there must be an explicit declaration in any subsequent loan agreement that there 
 is already a prior pledge of the said likin to the herein mentioned four Banks as a 
 third loan charge, that is to say, if subsequently there be any pledge of the said 
 likin, such pledge shall rank as fourth, and shall not be allowed to have priority 
 over or equality with the third loan charge to the four Banks. In case of need 
 it shall be open to the Viceroy to supplement the revenue of the Ichang Salt 
 Likin by other revenues of the province of Hupei for the service of the present 
 loan, and in case the Ichang Salt Likin shall, during the currency of the present 
 loan, be altered or abolished, the Viceroy shall forthwith apply to the service 
 of the present loan other approved provincial free revenues in substitution 
 therefor or addition thereto, so as to secure and pledge for the service of the 
 present loan an amount equivalent to the present annual charge upon the Ichang 
 Salt Likin revenue ; but in case of default with regard to a payment of interest 
 or repayment of principal of the present loan, the Viceroy may be called upon by 
 the British, German, French and American Consuls at Hankow to appropriate 
 and place under the administration of the Imperial Maritime Customs other 
 approved free revenue as security. 
 
 6. — This loan shall further be secured by deposit with the Hongkong and 
 Shanghai Banking Corporation of twenty likin half-yearly bonds, similar to the 
 likin half-yearly bonds so deposited under Article 6 of the Agreement for the loan 
 of the 14th of August, 1909, by the Hongkong and Shanghai Banking Corporation 
 to the then Hukwang Viceroy Ch'en K'uei-lung, equal in value altogether to the 
 total amount of the loan principal and interest sealed by the Viceroy of the 
 Hukwang Provinces and by the Provincial Treasurer of Hupei, and countersigned 
 by the foreign Commissioner of Customs in Hankow. In the event of the money 
 to meet a payment of interest or repayment of principal not being handed to the 
 Banks at their branches in Hankow on due date, these likin bonds shall become 
 available for the payment of likin in the Province of Hupei, and the provincial 
 authorities shall be instructed accordingly. As soon as likin to the amount of 
 each bond shall have been paid the bond shall be surrendered for cancellation. 
 These twenty bonds shall be made out in accordance with the amounts and dates 
 specified in the annexed Schedule. On the payment of each instalment, the 
 corresponding bond shall be cancelled and returned. 
 
 7. — The Banks shall prepare and send to the Viceroy bonds in Hankow Taels 
 Yang-li Sycee for the total amount of this Loan namely Tls. 2,000,000, which
 
 904 CHINA TREATIES AND AGREEMENTS 
 
 bonds shall within three months from the execution of this Agreement be returned 
 to the Banks sealed with the Official Seal of the Viceroy and of the Provincial 
 Treasurer of Hupei, as evidence that the Imperial Chinese Government is bound 
 thereby. The Banks in Hankow shall countersign the Bonds as Agents for the 
 Loan. These bonds may either be held by the Banks or, at their option, sold to 
 the public. The form and amount of the Bonds shall be settled by the Banks in 
 consultation with the Viceroy. Bonds drawn for the repayment of any instalment 
 of principal will, as soon as possible after payment, be handed to the Viceroy for 
 cancellation. 
 
 8. — In the event of any bond or bonds of this Loan being lost, stolen or 
 destroyed, the Banks concerned may notify the Viceroy who shall authorise the 
 Banks concerned to insert an advertisement in the public newspapers stating that 
 payment of such bond or bonds has been stopped; and to take such other steps 
 as may appear advisable or necessary according to the laws of the Country con- 
 cerned. Should any bond or bonds be destroyed, or such lost or stolen bond or 
 bonds not be recovered after a lapse of time to be fixed by the Banks, the 
 Viceroy and Provincial Treasurer of Hupei shall seal and execute a duplicate bond 
 or duplicate bonds for a like amount and deliver the same to the Bank or Banks 
 representing the owner or owners of such lost, stolen, or destroyed bond or bonds, 
 which Bank or Banks shall pay all expenses in connection with such delivery and 
 execution of such duplicate bond or bonds for the account of the owner or 
 owners of such bond or bonds. 
 
 9. — All bonds and coupons and payments made and received in connection 
 with the service of this Loan shall be exempt from all Chinese taxes and imposts 
 of any and every description during the currency of this Loan. 
 
 10. — In reimbursement of expenses connected with the payment of interest 
 and the repayment of principal of this Loan the Viceroy shall pay to the Banks 
 a commission of One Quarter of one per Cent on the annual loan service. 
 
 11. — The terms of this present Loan Agreement for Tls. 2,000,000, concluded 
 by the Viceroy of the Hukwang Provinces with the Hongkong and Shanghai 
 Banking Corporation, the Deutsch-Asiatische Bank, the Banque de ITndo-Chine 
 and the American Group represented by the International Banking Corporation, 
 have been sanctioned by Imperial Decree officially communicated by the Wai 
 Wu Pu to the British, German, French and American Ministers in Peking, and 
 in pursuance of the Imperial Authority so received the Viceroy for and on 
 behalf of the Imperial Chinese Government hereby guarantees under his official 
 seal that payment of interest and repayment of principal shall be duly made. 
 
 12. — Eleven sets of this Agreement are executed in English and Chinese, one 
 set to be retained by the Viceroy, one by each of the Banks and one each by the 
 British, German, French and American Ministers in Peking. Of the remaining 
 two sets, one will be forwarded to the Wai Wu Pu by the Viceroy, and one will 
 be handed under a Joint Note to the Wai Wu Pu by the Ministers of the four 
 countries to be placed on record. In the event of any question or dispute arising 
 as to the meaning of this Agreement, the English Text shall rule.
 
 NUMBER 1911/8: AUGUST 14, 1911 
 
 905 
 
 THE HUPEI PROVINCIAL SEVEN PER CENT SILVER LOAN OF 1911. 
 
 Tls. 2,000,000. 
 Schedule of Payments of Principal and Interest. 
 
 Due. 
 
 Interest 
 at 7% 
 
 Princip.il. 
 
 Total. 
 
 14 February, 1912 
 
 14 August, 1912 
 
 14 February, 1913 
 
 14 August, 1913 
 
 14 February, 1914 
 
 14 August, 1914 
 
 Tls. 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 63,000 
 ..56,000 
 49,000 
 42,000 
 35,000 
 28,000 
 21,000 
 14,000 
 7,000 
 
 Tls. 
 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 
 Tls. 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 70,000 
 270 000 
 
 14 February, 1915 
 
 14 August, 1915 
 
 14 February, 1916 
 
 14 August, 1916 
 
 14 February, 1917 
 
 14 August, 1917 
 
 14 February, 1918 
 
 263,000 
 256,000 
 249,000 
 74? nnn 
 
 14 August, 1918 J 
 
 14 February, 1919 
 
 14 August, 1919 
 
 235,000 
 228,000 
 221 000 
 
 14 February, 1920 
 
 14 August, 1920 
 
 14 February, 1921 
 
 14 August, 1921 
 
 214,000 
 207,000 
 
 Hankow Taels 
 
 Yang-li Sycee 
 
 1,085,000 
 
 2,000,000 
 
 3,085,000 
 
 
 THE HUPEI PROVINCIAL SEVEN PER CENT SILVER LOAN OF 1911. 
 
 Tls. 2,000.000. 
 Schedule of Payments of Interest due to 
 
 Date. 
 
 Hongkong 
 
 and 
 
 Shanghai 
 
 Banking 
 
 Corporation. 
 
 Deutsch- 
 
 Asiatische 
 
 Bank. 
 
 Banque de 
 I'Tndo- 
 Chine. 
 
 Tls. 
 
 Inter- 
 national 
 Banking 
 Corpora- 
 tion. 
 
 Total. 
 
 14 Febrnarv 1912 
 
 Tls. 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 15,750 
 
 14,000 
 
 12,250 
 
 10.500 
 
 8,750 
 
 7,000 
 
 5,250 
 
 3,500 
 
 1,750 
 
 Tls. 
 
 17,500 
 
 17,500 
 
 17.500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 15,750 
 
 14.000 
 
 12,250 
 
 10,500 
 
 8,750 
 
 7,000 
 
 5.250 
 
 3,500 
 
 1.750 
 
 17.500 
 
 17,500 
 
 17.500 
 
 17,500 
 
 17,500 
 
 17.500 
 
 17.500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 15,750 
 
 14,000 
 
 12,250 
 
 10,500 
 
 8,750 
 
 7,000 
 
 5.250 
 
 3,500 
 
 1.750 
 
 Tls. 
 
 17.500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 17,500 
 
 15,750 
 
 14,000 
 
 12,250 
 
 10,500 
 
 8,750 
 
 7,000 
 
 5,250 
 
 3,500 
 
 1,750 
 
 Tls. 
 70 000 
 
 14 Aiimist 1912 
 
 70 000 
 
 14 Fehniarv 1913 
 
 70 000 
 
 14 Aiip-iist 19n 
 
 70 000 
 
 14 Fehruarv 1914 
 
 70.000 
 70 000 
 
 14 Aiip-imt 1Q14 
 
 14 Fehniarv 1915 
 
 70 000 
 
 14 Aiicrii(;f 1Q1 S 
 
 70 000 
 
 14 February, 1916 
 
 14 Aiicrii<;t 1916 
 
 70.000 
 70 000 
 
 14 FpVirnarv 1917 
 
 70,000 
 63,000 
 56,000 
 49.000 
 
 14 August, 1917 
 
 14 February, 1918 
 
 14 AiicnT^I- 1918 
 
 14 Fehniarv 1919 
 
 42,000 
 
 14 Anmist 1919 
 
 35.000 
 
 14 February, 1920 
 
 14 August, 1920 
 
 14 Fehniarv 1921 
 
 28,000 
 21,000 
 14.000 
 
 14 August 1921 
 
 7,000 
 
 
 
 Hankow Taels 
 
 Yang-li Sycee 
 
 271,250 
 
 271,250 
 
 271.250 
 
 271,250 
 
 1,085,000 
 

 
 906 
 
 CHINA TREATIES AND AGREEMENTS 
 
 THE HUPEI PROVINCIAL SEVEN PER CENT SILVER LOAN OF 1911. 
 
 Tls. 2,000,000. 
 Schedule of Payments of Principal due to 
 
 Date. 
 
 14 February, 1917 • 
 14 August, 1917 . . . 
 14 February, 1918 • 
 14 August, 1918 . . . 
 14 February, 1919 • 
 14 August, 1919 ... 
 14 February, 1920 • 
 14 August, 1920 . . . 
 14 February, 1921 • 
 14 August, 1921 . . . 
 Hankow Taels 
 Yang-li Sycee 
 
 Hongkong 
 
 
 
 Inter- 
 
 and 
 
 
 
 national 
 
 Shanghai 
 
 Deutsche- 
 
 Banque de 
 
 Banking 
 
 Banking 
 
 Asiatische 
 
 rindo- 
 
 Corpora- 
 
 Corporation. 
 
 Bank. 
 
 Chine. 
 
 tion. 
 
 Tls. 
 
 Tls. 
 
 Tls. 
 
 Tls. 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 50,000 
 
 • 500,000 
 
 500,000 
 
 500,000 
 
 500,000 
 
 Total. 
 
 Tls. 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 200,000 
 
 2,000,000 
 
 Signed at HANKOW by the contracting parties this twentieth day of the 
 intercalary sixth moon of the third year of the Emperor Hsiian T'ung, being the 
 fourteenth day of August, one thousand nine hundred and eleven, Western 
 Calendar. 
 
 [Signatures of the representatives 
 of the four banks.] 
 
 [Signature of Witness. 
 
 [Seal and signature of the Viceroy 
 of the Hukwang Provinces.] 
 
 NUMBER 1911/9. 
 
 FRANCE (Banque de I'lndo-Chine), GERMANY (Deutsch-Asiatische Bank), 
 GREAT BRITAIN (Hongkong & Shanghai Banking Corporation) 
 
 AND CHINA. 
 
 Agreement for the Kwangtung Provincial seven per cent silver loan of 1911. — 
 
 August 30, 1911. 
 
 THIS AGREEMENT is made between His Excellency Chung Ming Chi, 
 Viceroy of the Liang Kwang Provinces, of the one part, and the Hongkong and 
 Shanghai Banking Corporation, the Banque de ITndo-Chine and the Deutsch- 
 Asiatische Bank, hereinafter called the Banks, of the other part. 
 
 WHEREAS the Viceroy of the Liang Kwang Provinces, H. E. Chung Ming
 
 NUMBER 1911/9: AUGUST 30, 1911 907 
 
 Chi has, for the purpose and with the object of reheving the present financial 
 situation in the money markets of Kwangtung, memorialized the Throne for and 
 received an Imperial Edict, authorizing him to raise a foreign loan for FIVE 
 MILLION DOLLARS HONGKONG CURRENCY and to seal the loan bonds 
 hereinafter referred to, it is hereby agreed as follows : — 
 
 1. — The Loan shall be called "the Kwangtung Provincial seven per cent 
 Silver Loan of 1911." 
 
 2. — The Banks agree to lend to the Viceroy of the Liang Kwang Provinces 
 and the Viceroy agrees to borrow from the Banks, the sum of FIVE MILLION 
 DOLLARS HONGKONG CURRENCY, the payment and repayment of which 
 said sum and of interest thereon are to be made in Hongkong in Hongkong Cur- 
 rency Bank Notes. 
 
 3. — The Banks shall, seven days after the execution of this agreement, pay 
 to the Viceroy the sum of ONE MILLION DOLLARS HONGKONG CUR- 
 RENCY Bank Notes. The balance of this loan shall be paid by the Banks to 
 the Viceroy in four consecutive monthly instalments of ONE MILLION DOL- 
 LARS HONGKONG CURRENCY each as follows :— 
 
 ONE MILLION DOLLARS HONGKONG CURRENCY on the 30th 
 day of September, 1911, Western Calendar. 
 
 ONE MILLION DOLLARS HONGKONG CURRENCY on the 30th day 
 of October, 1911, Western Calendar. 
 
 ONE MILLION DOLLARS HONGKONG CURRENCY on the 30th day 
 of November, 1911, Western Calendar. 
 
 ONE MILLION DOLLARS HONGKONG CURRENCY on the 30th 
 day of December, 1911, Western Calendar. 
 
 4.— The period of the said loan for FIVE MILLION DOLLARS HONG- 
 KONG CURRENCY shall be five years, and the interest thereon shall be seven 
 per cent, per annum to be computed on the first payment of ONE MILLION 
 DOLLARS HONGKONG CURRENCY from the date of that payment and on 
 subsequent payments from the dates of such subsequent payments and shall be 
 paid by the Viceroy or his successors in Office to the Banks half-yearly in accord- 
 ance with the Schedule attached to this agreement, but twelve days before the 
 due dates as shown thereon until repayment of the loan shall be completed. The 
 principal shall be repaid in ten half-yearly instalments of FIVE HUNDRED 
 THOUSAND DOLLARS HONGKONG CURRENCY, commencing six months 
 from the date of this agreement, in accordance with the Schedule attached to this 
 agreement, but twelve days before the due dates shown thereon. 
 
 The first payment of interest and repayment of the principal will be made 
 twelve days before the 28th day of February, 1912, Western Calendar. 
 
 After each instalment of the principal is repaid, interest at the rate aforesaid 
 shall only be charged on the principal for the time being remaining owing. 
 
 All payments of interest and repayments of principal shall be made to the 
 three Banks in Hongkong in Hongkong Currency Bank Notes in equal shares. 
 
 5. — In reimbursement of expenses connected with this loan the Viceroy shall 
 pay to the Banks a commission of one quarter of one per cent on the half-yearly 
 service of the loan.
 
 908 CHINA TREATIES AND AGREEMENTS 
 
 6. — The Banks may, at their option, issue this loan in whole or part to the 
 Public in Hongkong or elsewhere on terms to be determined by the Banks. 
 
 7. — This loan is secured by a first mortgage on the Likin dues of the 
 Province of Kwangtung amounting to Two million four hundred thousand Taels 
 per annum and shall rank as regards security for principal and interest as a first 
 charge on the said Likin dues, which the Viceroy hereby guarantees to be at pres- 
 ent free of all mortgage and unincumbered. The Viceroy further guarantees on 
 behalf of himself and his successors in Ofiice that if in the future it shall be neces- 
 sary to employ the said Likin as security, it shall in no wise affect this the first 
 pledge, moreover there must be an explicit declaration in any subsequent loan 
 agreement that there is already a prior pledge of the said Likin to the herein men- 
 tioned Banks as the first loan charge, that is to say, if subsequently there be any 
 pledge of the said Likin, such pledge shall rank as the second, and shall not be 
 allowed to have priority over or equality with the first loan charge to the Banks. 
 In case of need it shall be open to the Viceroy to supplement the revenue of the 
 Kwangtung Likin dues by other approved revenues of the Province of Kwang- 
 tung for the service of the present loan, and in case the Kwangtung Likin dues 
 shall, during the currency of the present loan, be altered or abolished, the Viceroy 
 shall forthwith apply to the service of the present loan other approved Provincial 
 free revenues in substitution therefor or addition thereto, so as to secure and 
 pledge for the service of the present loan an amount equivalent to the present 
 annual charge upon the Kwangtung Likin dues ; but in case of default of any 
 payment of interest or repayment of principal of the present loan the Viceroy or 
 his successors in Office shall forthwith, in consultation with the Banks, make 
 special arrangements for the collection and payment into the Banks of these or 
 other approved free revenues of the Province of Kwangtung in such manner and 
 in such amount as shall secure the due payment of interest and repayment of 
 principal in terms of this agreement. 
 
 8. — The Viceroy shall within three months of the execution of this agreement 
 hand to the Banks Bonds in Hongkong Currency Bank Notes for the total amount 
 of the loan, namely FIVE MILLION DOLLARS HONGKONG CURRENCY, 
 sealed with the Official seals of the Viceroy and of the Provincial Treasurer of 
 Kwangtung as evidence that the Imperial Chinese Government is bound thereby 
 and, if issued to the public, countersigned by the issuing Bank as Agents for the 
 loan. The form and amount of these Bonds shall be settled by the Banks in 
 consultation with the Viceroy. 
 
 Bonds drawn for repayment of any instalment of principal will, as soon as 
 possible after payment, be handed to the Viceroy for cancellation. 
 
 9. — In the event of any such bond or bonds being lost, stolen or destroyed, 
 the Bank interested may notify the Viceroy who shall authorize that Bank to 
 insert an advertisement in the public newspapers stating that payment of such 
 bond or bonds has been stopped ; and to take such other steps as may appear 
 advisable or necessary according to the laws of the country concerned. Should 
 any bond or bonds be destroyed, or such lost or stolen bond or bonds not be 
 recovered after a lapse of time to be fixed by the Bank interested, the Viceroy 
 and the Provincial Treasurer of Kwangtung shall seal and execute a duplicate
 
 NUMBER 1911/10: AUGUST 31, 1911 909 
 
 bond or duplicate bonds for a like amount and deliver the same to the Bank repre- 
 senting the owner or owners of such lost,, stolen or destroyed bond or bonds and 
 the Bank interested shall pay all expenses in connection with such delivery and 
 execution of such duplicate bond or bonds for the account of the owner or 
 owners of such bond or bonds. 
 
 10. — All bonds and coupons and payments made and received in connection 
 with the service of this loan shall be exempt from all Chinese taxes and imposts 
 of any and every description during the currency of this loan. 
 
 11. — The terms of this present loan agreement for FIVE MILLION DOL- 
 LARS HONGKONG CURRENCY concluded by the Viceroy of the Liang 
 Kwang Provinces with the Hongkong and Shanghai Banking Corporation, the 
 Banque de ITndo-Chine and the Deutsch Asiatische Bank, have been sanctioned by 
 Imperial Decree officially communicated by the Wai-Wu-Pu to the British, 
 French and German Ministers in Peking, and in pursuance of the Imperial 
 authority so received the Viceroy for and on behalf of the Imperial Chinese 
 Government hereby guarantees under his official seal that payment of interest 
 and repayment of principal shall be duly made. 
 
 12. — Nine sets of this agreement are executed in English and Chinese, one 
 set to be retained by the Viceroy, one by each of the Banks, one by the British, 
 one by the French and one by the German Ministers in Peking. Of the remaining 
 two sets, one will be forwarded to the Wai-Wu-Pu by the Viceroy, and one will 
 be handed under a joint note to the Wai-Wu-Pu by the Ministers of the three 
 countries to be placed on record. 
 
 In the event of any question or dispute arising as to the meaning of this 
 agreement, the English text shall rule. 
 
 Signed at Canton by the contracting parties this 7th day of the 7th month of 
 the third year of the Emperor Hsuan-t'ung, being the 30th day of August One 
 thousand nine hundred and eleven. Western Calendar. 
 
 NUMBER 1911/10. 
 
 FRANCE AND GREAT BRITAIN (Syndicat du Yunnan, Ltd. )AND CHINA. 
 
 Exchange of notes between the Wai IVu Pu and the French legation in regard to 
 the cancellation of the mining concession of the Syndicat du Yunnan* — 
 
 August 31, 1911. 
 
 Prince Ch'ing, President of the Council and President of the Ministry for Foreign 
 Affairs, to Mr. Georges-Picot, French Charge d' Affaires in China. 
 
 Peking, August 29, 1911. 
 In conclusion of the negotiations that have been carried on between your 
 Excellency and Mr. Kao, Treasurer General of Yunnan, on the subject of the 
 
 * Translations from the French version of the Chinese text, and from the French text. 
 See Xote to this document, post, p. 911.
 
 910 CHINA TREATIES AND AGREEMENTS 
 
 Lung-Hsing Company (Anglo-French Yunnan Syndicate), the concessionaire 
 for the working of the mines in Yunnanfu and six other locahties, an agreement 
 has been arrived at with the British Minister that China will pay the said syndicate, 
 for the cancellation of the original contract, the sum of 1,500,000 taels. 
 
 The payment of this sum will be made in six instalments. On each instalment 
 the sum of 250,000 Kuping taels will be paid. 
 
 The first payment will be made during the course of this moon (August 24 
 to September 21). The five other payments will be made every six months. The 
 French and British Ministers will give notice a month in advance to our ministry, 
 in order that it may provide funds. 
 
 All the property and all the material belonging to the syndicate and to its 
 branch will be turned over entire to China, which will thereafter have no further 
 concern with the said syndicate. 
 
 As an agreement has been reached upon these conditions, the matter will be 
 arranged by an exchange of letters that will be conclusive. 
 
 I am addressing your Excellency the present official communication to be 
 filed in your archives. I have to request that you be so good as to acknowledge 
 its receipt. 
 
 Pray accept, etc. 
 
 Mr. F. Georges-Picot, French Charge d' Affaires in China, to his Highness, Prince 
 Ch'ing, President of the Council and President of the Ministry for Foreign 
 Affairs. 
 
 Peking, August 31, 1911. 
 
 Your Highness has made known to me that the Wai Wu Pu was disposed to 
 pay the sum of fifteen hundred thousand Kuping taels, the payment of which 
 would be guaranteed by the Imperial Government, in compensation for the can- 
 cellation of the contract signed in 1902 between the Imperial Government, the 
 Province of Yunnan, and the Syndicat du Yunnan. You add that this amount 
 will be paid in Peking in half-yearly instalments of 250,000 taels, the first being 
 paid by the Wai Wu Pu before September 22 next. 
 
 I have the honor to inform your Highness that the company concerned 
 accepts this proposal. It acknowledges that by the payment of this sum the 
 Imperial Government frees itself from all the obligations created by the contract 
 cited above. The syndicate moreover undertakes to grant without charge to the 
 Imperial Government all property and things possessed by it in Yunnan, or by its 
 branch (the Compagnie d'Exploitation de Lin Ngan), and to turn them over to 
 the delegate that the Government may be pleased to name. 
 
 I regret that circumstances have compelled us to terminate a contract that 
 seemed to me to be of such a nature as to afford important advantages to each of 
 the contracting parties, and thus contribute to the economic development of China.
 
 NUMBER 1911/10: AUGUST 31, 1911: NOTE 911 
 
 Note. 
 
 The original concession had been granted by a contract concluded June 21, 1902, of 
 which the following translation from the French text is given in Collins, p. 262: 
 
 Agreement for Yunnan Mining Concession, June 21, 1902, 
 
 Whereas the working of the Yunnan mines has continued, up to the present, to be 
 primitive and incomplete, and a company called the " Syndicat du Yunnan, Limited," has 
 been formed in England and France with the object of working these mines by the best 
 methods, with the assistance of engineers, with a competent staff, and with machinery and 
 the capital necessary for giving the fullest development of which they are capable to these 
 undertakings. 
 
 The following Convention lias been agreed on between T. E. the Governor-General of 
 the Yun-Kwei Provinces, the Governor of Yunnan and the Imperial High Commissioner 
 of Mines on the one hand and M. Rocher, Consul-General representing the Syndicat du 
 Yunnan, Limited (Lung Hsing Kung Ssu), on the other hand. 
 
 Article I. — The Governor-General of Yun-Kwei and the Governor of Yunnan, in con- 
 cert with the High Commissioner of Mines, agree to ask the Imperial Government to concede 
 to the Syndicat du Yunnan, Limited, the right to prospect and work the mineral deposits 
 of the departments of Yunnan-fu, Cheng Kiang-fu, Lin Xgan-fu, K'ai Hua-fu, Ch'ou 
 Hsiung-fu, together with Yuan Kiang Chou and Yung Pai T'ing situated in the Province of 
 Yunnan, namely : — 
 
 1. The copper mines which are at present abandoned by the State of China and 
 those which shall be discovered by the Syndicate. 
 
 2. The mines of gold, silver, coal, iron, etc. . . . once worked but now abandoned. 
 
 3. The mines of gold, silver, coal, iron, platinum, tin, as well as the deposits of 
 petroleum, precious stones, and cinnabar which shall be discovered by the Syndicate. 
 
 The High Authorities of Yunnan agree to ask the Imperial Government for the con- 
 cession of the mines of the seven above-mentioned districts to the Syndicat du Yunnan, 
 Limited. No company unconnected with it will be able, in any manner to prospect or work 
 mines in the departments cited above. However, the Government, as well as the Chinese, 
 will be able, as in the past, to work such new deposits as they shall discover, and if com- 
 panies which are purely Chinese, with capital exclusively Chinese, request authorisation to 
 work deposits, the requested authorisation may be granted on condition that the said com- 
 panies shall be subjected to charges and obligations at least equal to those laid upon the 
 Syndicat du Yunnan, Limited. 
 
 Should the Syndicat du Yunnan, Limited, not discover deposits worth working in the 
 above-mentioned departments or districts, the Imperial Government will exchange them 
 against others which the Syndicate will point out, but their total number shall never 
 exceed seven. However, when all the mines of the above-mentioned departments or dis- 
 tricts shall be working, if its duties and profits are regularly paid to the Chinese Govern- 
 ment, the Syndicate will be able to obtain other concessions on appealing to the Provincial 
 Authorities. 
 
 Article II. — Apart from the State mines whose working will be started in the above- 
 mentioned districts, if the Syndicate wishes to work mines belonging to private persons, it 
 will apply to the High Provincial Authorities, who will order an investigation to be made; 
 and if the said investigation does not bring to light any objection the local officials will be 
 authorised to negotiate with the proprietor for hiring the mine or the land for a period 
 which shall not exceed the time during which the present convention will be in force. The 
 expenses of hiring the mine or the land will be chargeable to the Syndicate, which will not 
 under any circumstances be able to buy or hire directly or become proprietor of mines or 
 land. 
 
 If, after authorisation to work any mine has been granted, work on it shall not have 
 been commenced within three years, the mine and the contract will be returned to the 
 proprietors through the authorities. 
 
 Article III. — When, in places determined by the Syndicate, a mine capable of being 
 worked shall have been found, the limits shall be fixed and a plan of it shall be drawn. 
 This shall be submitted to the High Provincial Authorities. These last shall have an 
 investigation made, and should this investigation prove favourable the lands will be hired 
 and handed over to the Company, which will then be able to begin the working. 
 
 Article IV. — On waste lands situated near the mines the Syndicat du Yunnan, Limited, 
 will be able to build railways, roads, canals, and all means of communication which it shall 
 deem necessary for the passage of its workmen, the transport of its material, mineral, etc., 
 etc. If these means of communication are to use land belonging to private persons the 
 Syndicate shall inform the Provincial Authorities, who, after a favourable investigation, 
 will give the order to the local officials to come to terms with the proprietor for the hiring 
 of the land at a reasonable price. The price of this hiring will be chargeable to the Syndi- 
 cate.
 
 912 CHINA TREATIES AND AGREEMENTS 
 
 Since the joining up of the railroads of the Syndicate with the railway has as its 
 object the facilitating of the marketing of its mineral products and the transport of material, 
 as soon as the principal trunk-Tine shall be constructed, special rules will be drawn up by 
 common agreement, and, when the said rules shall have been approved by the Imperial 
 Government, the work of joining up the lines may be commenced. 
 
 Under no circumstances will the Syndicate be able to transport travellers or private 
 merchandise over its mining lines. 
 
 Article V. — The Syndicat du Yunnan, Limited, will be permitted to recruit the labour 
 it considers necessary for its workings m the Province, and, if there is not enough, it may 
 cause workmen to come from neighbourmg Provinces. 
 
 No distinction shall be made between Catholic, Mussulman, or other workmen : all shall 
 be engaged on the same basis according to their aptitude and activity. 
 
 If workmen are injured in the course of work for the Syndicate, and if these injuries 
 entail incapacity for work, or death, the Syndicate shall give equitable compensation. 
 
 Lawsuits, assassinations, robberies, or quarrels which arise in the course of work shall 
 be dealt with according to the treaties. 
 
 Article VI. — In consideration of the facilities which are given it, the Syndicat du 
 Yunnan, Limited, undertakes to furnish annually to the Imperial Government, provided 
 that the working of the mines allows of it, 1,000,000 lbs. of copper. This amount is fixed 
 as follows : 600,000 lbs. three years after the opening of the copper mines, and 400,000 lbs. 
 two years later. Afterwards a fixed quantity of 1,000,000 lbs. shall be furnished in each 
 year. 
 
 The metal delivered shall contain 85 per cent, of copper, and shall be paid for to the 
 Syndicate at the price of twenty Ku p'ing taels per hundred Chinese pounds. When the 
 annual amount due has been delivered the rest of the output shall be offered to the Pro- 
 vincial Government, and to such Provinces as shall ask for it, at market price ; the balance 
 may be exported by the Syndicate. 
 
 The copper for the Central Government shall be liable to no tax, but that which is 
 sold in Yunnan or other Provinces or exported shall pay a 5 per cent. tax. 
 
 Article VII. — In order to avoid all cause of trouble the Syndicat du Yunnan, Limited, 
 undertakes to avoid all operations or encroachments, during the construction of the means 
 of communication or the working of the mines, which may damage houses, fields, or graves. 
 The Syndicate will also respect the customs and usages of Yunnan, the mines worked by 
 the State, and the rights acquired by private persons. 
 
 Article VIII. — The Syndicat du Yunnan, Limited, undertakes to found one or several 
 schools in which Chinese shall be trained in technical subjects for the working of mines 
 and other industries. It shall, in due course, choose according to its needs, from among 
 the pupils who shall have satisfactorily passed the leaving examinations, engineers and 
 foremen for employment in its undertakings. 
 
 Article IX. — By reason of the extent of the mineral land and the difficulties of trans- 
 port, the Imperial Government, in order to facilitate the development of the mineral industry 
 which will be a source of riches to this country, gives the Syndicat du Yunnan, Limited, 
 the right to form exploitation companies, to which it may cede the privileges which it 
 obtains, or transfer concessions, on the express condition that the said companies, whether 
 they work on the Syndicate's account or whether they work on their own account, conform 
 strictly to this Convention. 
 
 Since the Imperial Government does not participate in the losses each mine is to have 
 a separate account, and in no case can the profits of one be used to balance the losses of 
 another. The division of the profits at the end of the year shall be made separately for 
 each mine. 
 
 The Syndicat du Yunnan, Limited, undertakes to cause Chinese capital to participate 
 as far as possible in the public issues of shares of the companies which shall be formed. 
 The officials, merchants, workmen, or proprietors shall be able, at their convenience, to 
 interest themselves in the enterprises of the Syndicate on the same conditions as foreign 
 shareholders. The share-lists shall be opened simultaneously in the principal cities of China 
 and Europe. 
 
 Article X. — The working capital raised by the Syndicate shall not exceed 50,000,000 
 Haikwan taels. However, if at a later date the necessity should make itself felt, the capital 
 may be increased after coming to an agreement with the High Provincial Authorities. 
 
 Article XI. — The sum of the net profits shall be arrived at after deducting the fol- 
 lowing : — 
 
 1. A sum representing general expenses, including customs expenses, the hire of the 
 mines, lands and other taxes. 
 
 2. A sum representing 8 per cent, of the capital as interest. 
 
 3. A sum equal to 10 per cent, as amortisation of plant, of school constructions, build- 
 ings, etc. . . . Once the amortisation is complete, no further sum shall be charged to this 
 account. 
 
 4. A sum representing 10 per cent, of the profits as a reserve fund, of which the 
 Syndicate shall dispose according to necessity. However, when the division of this reserve
 
 NUMBER 1911/10: AUGUST 31, 1911: NOTE 913 
 
 fund takes place, the assignment of its parts shall be made equitably in accordance with 
 Article 12. 
 
 Article XII. — The net profits remaining after the deduction of the above-named prior 
 charges shall be distributed as follows : 
 
 1. The Imperial Government's share 25 per cent. 
 
 2. The Provincial Government's share 10 per cent. 
 
 3. The share of the Syndicate for distribution among its shareholders 65 per cent. 
 At the end of each year the High Provincial Authorities and the Syndicate shall each 
 
 name a commissioner to verify the accounts of the year and take delivery of the sums due 
 to them respectively. 
 
 Article XIII. — X'either the Imperial Government nor the Provincial Authority under- 
 takes any pecuniary responsibility in the operations of the Syndicate, which shall be alone 
 in bearing the risks of the enterprise. 
 
 Article XI"V. — The Imperial Government shall receive 5 per cent, in kind of all mineral 
 extracted, of whatever nature it be. The official living at the mines shall take note of the 
 raising of the products, of coal, or of precious stones; and, after having compared it with the 
 register kept at the mines for that purpose, shall collect, on the mineral raised, once 
 quarterly only. 
 
 The Syndicat du Yunnan, Limited, shall be subjected for the importation of its work- 
 ing material, and for the products exported, to the tariff of the maritime customs. For the 
 ybove-mentioned articles it shall be exempted from likin and the other internal taxes im- 
 posed on merchandise in circulation. 
 
 The Syndicate must respect the general regulations of the Empire, and, in conformity 
 with the treaties, must not transport secretly articles which are either prohibited or dutiable 
 to the customs or revenue. 
 
 Article XV. — Any difference which may arise in the interpretation of the present con- 
 vention or in its execution shall be settled by a tribunal of arbitration, consisting of four 
 members who shall be ap.pointed respectively — 
 
 One by the Imperial Government. 
 One by the Provincial Government. 
 One by the French Legation. 
 One by the British Legation. 
 
 Any decision in arbitration arrived at in this manner shall be communicated through an 
 official channel to the parties interested and shall be final. 
 
 Article XVI. — Since the Imperial Government and the Provincial Authorities share 
 in the profits realised by the Syndicate, they have a considerable pecuniary and fiscal 
 interest in protecting and safeguarding, by all the means in their power, the mining enter- 
 prises of the Syndicate. In consequence, orders will be given to the local authorities to 
 conform in the strictest manner with the clauses of the present Convention. 
 
 Article XVII. — The Syndicate will do all in its power to keep up the best possible 
 relations with the authorities, and will neglect nothing to ensure the maintenance of a cordial 
 understanding and mutual confidence. 
 
 -Any want of respect to an official, and any unfriendly act of which an employee may 
 be guilty, must be reported by the local official. The Syndicate undertakes, after enquiry, 
 to dismiss an official who has been proved guilty and to give him no other employment for 
 two years. If, for special reasons, he cannot be absolutely dismissed, he shall not be allowed 
 to work on the same mine. 
 
 Article XVIII. — Since the working of mines attracts a considerable number of indi- 
 viduals of all kinds to their vicinity, in order to obtain security for the Europeans and all 
 the persons working in the mines ; in order also to ensure peace and tranquillity and to 
 prevent complications, the Syndicat du Yunnan, Limited, may, on giving notice to the local 
 authorities, recruit near its mines native soldiers, who shall be placed under the command of 
 an officer chosen for that purpose, who shall reside, with his men, near the workings. 
 
 If it should become necessary, for the maintenance of order, to reinforce this body, 
 the High Authorities will send regular troops to the spot, but the Syndicate may not cause 
 European troops to enter the Province on any pretext whatever. 
 
 Article XIX. — When the engineers and their staff come to Yunnan to prospect the 
 mineral deposits and to proceed to work them, the Syndicate must inform the local authori- 
 ties in advance of their arrival and movements, in order that they may be able to give them 
 the escorts necessary to ensure their security. In case the precaution should be omitted, and 
 incidents should arise, the Provincial Authorities decline to take any responsibility. 
 
 Article XX. — The maintenance as well as the salaries of provincial agents who shall 
 be detached to the mine shall be paid by the Syndicate. 
 
 The Syndicate shall also, according to circumstances, allot gratuities to the escorts of 
 engineers who shall proceed to prospect for mines. 
 
 Article XXI.-— The present Convention is agreed on for a period of sixty years from 
 the date of its signature. At the expiration of this period the mines which have been 
 worked, whether old or new and whether prosperous or otherwise, as well as the land,
 
 914 CHINA TREATIES AND AGREEMENTS 
 
 houses working material, railroads, roads, canals, etc. . . . belonging to the Syndicate will be 
 handed over to the High Authorities of Yunnan free of cost, by the Syndicate's agents. 
 
 However, if at the end of the above-mentioned period the workings are prosperous, 
 and if the Syndicate wishes to continue them, China will grant an extension. This exten- 
 sion will be for a period of not more than twenty-five years. 
 
 Article XXII.— Since the Province of Yunnan is an integral part of the Empire, the 
 Syndicate undertakes in case of war with any State, to act in conformity with the wishes 
 of China and to lend no assistance to the enemy. 
 
 Article XXIII. — The present Convention, after having been submitted by the Ministry 
 for Foreign Affairs, for the ratification of the Chinese Government, and after having been 
 signed will become a legal concession. 
 
 Article XXIV. — The present Convention is drawn in six originals : three in the 
 Chinese and three in the French language. In case of divergence of interpretation, the 
 French text shall rule. 
 
 Signed at Peking, the twenty-first of June, nineteen hundred and two, the sixteenth 
 day of the fifth moon, in the twenty-eighth year of the reign of the Emperor Kwang-Su. 
 
 The above Convention was, on the tenth day of the 5th moon of the 28th year of 
 Kwang-Su (15 June 1902), the object of a report addressed to the Throne by the Ministry 
 for Foreign Affairs, which has been furnished with the following Imperial ratification — 
 
 " Approved. By Imperial Order." 
 
 NUMBER 1911/11. 
 
 JAPAN AND CHINA. 
 Convention relating to raihvay connections at Antung* — November 2, 1911. 
 
 In effecting through train service across the national boundaries between the 
 Antung-Mukden Railway and the Korean Railway, the Governments of Japan and 
 China have appointed their respective commissioners and have agreed upon the 
 following clauses : 
 
 1. — The Governments of Japan and China consent, in the interest of world 
 communications, to direct connection of trains on the boundary between the two 
 countries. 
 
 2. — For the purpose of through train service over the two railways, the 
 centre of the Yalu iron bridge shall be regarded as the dividing line between the 
 two countries, the western portion being the Chinese boundary and the eastern 
 portion the Japanese. 
 
 3. — When a train crosses the national boundary, the locomotive shall be 
 changed. Locomotives used on the Korean Railway shall not proceed westward 
 beyond the Antung-hsien station; and locomotives used on the Antung-Mukden 
 Railway shall not proceed eastward beyond the Shingishu (Hsin Wiju) station. 
 
 4. — With reference to trains coming from either country, those entering 
 
 * Translation from the Japanese text as published in the Japanese Official Gaacite, 
 November 15. 1911. Another translation, together with the Chinese text, is printed in 
 Customs, vol. II, p. 772). 
 
 In connection with this convention, see the Memorandum concerning the reconstruction 
 of the Antung-Mukden Railway, August 19, 1909 (No. 1909/8, ante) ; agreement concerning 
 mines and railways in Manchuria, September 4, 1909 (No. 1909/9, ante) ; Provisional Regu- 
 lations for the working of the maritime customs office at Antung, March 31, 1912 (No. 
 1912/5, post) ; and arrangement in regard to the reduction of customs duties on goods trans- 
 ported by the Antung-Mukden Railway, May 29, 1913 (No. 1913/7, post).
 
 NUMBER 1911/11: NOVEMBER 2, 1911 915 
 
 Japanese territory shall be limited to the Korean Railway lines, and those entering 
 Chinese territory shall be limited to the lines of the South Manchuria Railway 
 Company. 
 
 5. — When a train of either railway arrives at Antung-hsien station, China, 
 freight, hand baggage and small goods must be unloaded at the goods inspection 
 office and inspected by the customs officials of both countries. 
 
 However, this provision shall not be applicable to goods which the customs 
 officials deem it unnecessary to have unloaded. 
 
 6. — The two countries shall detail their respective customs officials to conduct 
 joint inspection at the Antung-hsien station goods inspection office, and said 
 officials shall act in accordance with the customs regulations of their respective 
 countries and detailed rules determined by themselves. Goods imported into 
 China from Japanese territory shall first be inspected by Japanese customs 
 officials and then by Chinese customs officials ; while goods imported into Japan 
 from Chinese territory shall first be iiispected by Chinese customs officials and 
 then by Japanese customs officials. 
 
 (a) Hand baggage carried by, or small goods belonging to, passengers 
 leaving or arriving at the Antung-hsien station shall be inspected at the Antung- 
 hsien station. 
 
 (b) Hand baggage carried by, or small goods belonging to, passengers pass- 
 ing through Antung-hsien station shall be inspected in the train while it is 
 stopping. 
 
 When inspection is not completed before the train leaves, customs officials 
 shall, according to their convenience, continue inspection on the train while in 
 motion, or shall have hand baggage carried by, or small goods belonging to, 
 passengers unloaded at the goods inspection office and inspected there. 
 
 (c) When customs officials in the course of inspection in accordance with 
 the two preceding paragraphs discover dutiable articles, the duties shall be col- 
 lected directly from the passengers owning such articles. 
 
 (d) Hand baggage or small goods entrusted for shipment shall be brought 
 to the goods inspection station for inspection. 
 
 (e) With reference to small goods and freight leaving or arriving at the 
 Antung-hsien station, the consignors or consignees shall attend to their passage 
 through the customs and any other formalities. 
 
 (f ) With reference to freight and small goods passing through the Antung- 
 hsien station, employees of the South Manchuria Railway Company shall attend 
 to the procedure of passing them through the customs on behalf of the consignors 
 or consignees, and shall have them inspected in the presence of the customs 
 officials ; and the customs duties on dutiable articles shall be advanced by the 
 company. 
 
 (g) The South Manchuria Railway Company and the Railway Bureau of 
 the Government General of Chosen, in order to enable customs officials to conduct 
 inspection on the train, shall issue to such customs officials permanent free passes 
 for both railways. 
 
 7. — Trains crossing the boundary between the two countries may not carry 
 troops.
 
 916 CHINA TREATIES AND AGREEMENTS 
 
 This provision shall not apply to troops whose stationing has oeen permitted 
 by treaty, provided, however, that notice must be given prior to their crossing 
 the national boundary. 
 
 8. — Koreans who have heretofore resided in China shall be dealt with in 
 accordance with usage ; other Koreans not possessing passports may not travel 
 in the interior of China beyond the limits of train journeys. 
 
 9. — When trains of the two railways cross the national boundary, it is 
 necessarily expected that the freight charges on similar goods both for export 
 and for import shall be equal. 
 
 10. — Since, in accordance with treaty, the Antung-Mukden Railway is to be 
 purchased by the Chinese Government after fifteen years, the present convention 
 shall be applicable to said railway only prior to such purchase; and after the 
 purchase the two Governments shall agree upon separate regulations relative to 
 through train service. 
 
 IN WITNESS WHEREOF, the commissioners of the two countries have 
 signed and sealed the present convention in duplicate in the Japanese and Chinese 
 languages. 
 
 Second day of the 11th month of the 44th year of Meiji (November 2, 1911), 
 corresponding to the 12th day of the 9th moon of the 3rd year of Hsuan Tung. 
 
 Chozo Koike, 
 
 Consul-Gencral of the Empire of 
 Japan. 
 GoMPEi Oya, 
 
 Director of Railway Bureau of Gov- 
 ernment-General of Chosen. 
 Shimbei Okazaw^a, 
 
 Vice-President of the South Man- 
 churia Raihvay Company, Limited. 
 Kyusaburo Yang, 
 
 Director of Customs of the Govern- 
 ment-General of Chosen. 
 Seijiro Tanaka, 
 
 Director of tJie South Manchuria 
 Raikvay Company, Limited. 
 Hsu Ting Lin, 
 
 Commissioner of Foreign Affairs at 
 Mukden of the Empire of China. 
 Yuan Yi Ho, 
 
 Secretary of the Department of 
 Communications of the Empire of 
 China. 
 Masaki Taciiibana, 
 
 Representing the Inspector-General 
 of Customs of the Empire of China. 
 T. D. Moorhead, 
 
 Representing the Inspector-General 
 of Customs of the Etnpire of China.
 
 NUMBER 1911/12: DECEMBER 16, 1911 917 
 
 NUMBER 1911/12. 
 
 MEXICO AND CHINA. 
 
 Convention for the payment of an indemnity for injuries to Chinese 
 subjects* — December 16, 1911. 
 
 Chang Ying Tang, Envoy Extraordinary and Minister Plenipotentiary of 
 the Chinese Empire to the United States of Mexico, and Manuel Calero, Secretary 
 of State of the United States of Mexico, have agreed to sign, in behalf of their 
 respective governments, the following protocol : 
 
 Considering: That several Chinese subjects have suffered, within Mexican 
 territory, damages in their persons and property, in some cases in cruel and 
 inhuman form, acts which the Government of the United States of Mexico 
 considers contrary to the sentiments of friendship and amity which should be 
 held for all men and especially for those who are subjects of a friendly nation 
 and for which it has expressed its sorrow to the Government of the Chinese 
 Empire ; 
 
 Considering: That the Government of the United States of Mexico, while 
 it maintains the principle that the nation neither is nor can be responsible for the 
 acts of rebels or riotous mobs, except in the exceptional cases prescribed by 
 international law, which the Government of the United States of Mexico does 
 not consider to include the happenings alluded to in the preceding paragraph, is 
 ready, however, voluntarily and as an act of grace, to indemnify the injured 
 Chinese subjects to the extent provided by the present convention, and with the 
 understanding that this act of grace shall not be considered as establishing a 
 precedent ; 
 
 Considering: That the Chinese Government concurs in the friendly spirit 
 which animates the Mexican Government, it being the wish of both governments 
 to prevent, by a friendly agreement, all discussion or controversy which might 
 arise out of the occurrences mentioned in the preceding considerations : 
 
 Have agreed upon the following articles : 
 
 Article I. — The Mexican Government shall deliver to the Chinese Govern- 
 ment the sum of Three Million One Hundred Thousand Pesos ($3,100,000.00) in 
 Mexican coin of the weight and fineness which are actually in use. 
 
 Article II. — The sum mentioned in the preceding article shall be received 
 by the diplomatic representative of the Chinese Government duly accredited at 
 Mexico, or by some other agent of said government who shall produce his 
 authority, and the delivery shall be made in the city of Mexico on or before the 
 first day of July, one thousand nine hundred and twelve. 
 
 Article III. — It is the express intention of both governments that as a 
 
 * Translation, as printed in Am. Int. Law Journal, Supplement, 1914, p. 147, from the 
 Spanish text as printed in the Boletin oficial de la Secretaria dc Relaciones Exteriores, 
 Mexico, February, 1913, p. 118.
 
 918 CHINA TREATIES AND AGREEMENTS 
 
 consequence of the delivery of the sum to which this convention refers, neither the 
 Chinese Government nor its subjects shall be entitled to make any claim what- 
 soever against the Mexican Government or Mexican citizens for damages to 
 property, bodily harm or loss of lives directly or indirectly suffered by Chinese 
 subjects within the Mexican Republic during the revolution of 1910, or as a 
 result of it, and within the period of time from the 20th of November, 1910, to 
 the date of the present convention. Any claim already formulated or presented 
 by Chinese subjects on account of the aforesaid revolution, shall terminate ipso 
 jure by virtue of the provisions of the present clause. 
 
 Article IV. — The present convention shall be submitted to the ratification 
 prescribed by the laws of both countries, and the exchange of ratifications shall 
 take place at the Mexican Embassy in the City of Washington, United States of 
 America, at the latest on the 15th day of June, 1912. 
 
 In faith whereof, we, the respective Plenipotentiaries, have signed the present 
 convention in the Spanish, Chinese and English languages, and affixed thereto 
 our seals. In case of doubt as to the meaning of any expression or sentence in 
 this convention, the English text shall be decisive. 
 
 Done in duplicate in the City of Mexico, this 16th day of December, one 
 thousand nine hundred and eleven. 
 
 (L. S.) Manuel Calero, 
 (L. S.) Chang Ying Tang. 
 
 Additional protocol signed at Mexico City December 13, 1912 ; ratifications 
 exchanged January 29, 1913. 
 
 The Constitutional President of the Unitfed States of Mexico and the Gov- 
 ernment of China, taking into consideration that the dates fixed in the protocol 
 signed in the City of Mexico on the 16th day of December, 1911, have passed 
 without the exchange of the instruments of ratification of said convention or the 
 payment of the voluntary and gratuitous indemnity which the Mexican Govern- 
 ment promised to pay to the Chinese Government for the damages and injury 
 to property, bodily harm and loss of lives suffered by the Chinese residents in the 
 Mexican Republic during the revolution which took place in its territory in the 
 year one thousand nine hundred and ten or as a consequence of it, have agreed 
 to modify the said convention with an additional protocol, and for that purpose 
 have appointed as their plenipotentiaries, that is to say : 
 
 The Constitutional President of the United States of Mexico : Sefior Licen- 
 tiate Don Julio Garcia, Subsecretary in Charge of the Office for Foreign Affairs ; 
 and 
 
 The Chinese Government : Woo Chung Yen, its Charge d' Affaires ad interim 
 to the Mexican Government ; 
 
 Who, after having communicated to each other their full powers, found in 
 due and good form, agreed upon the following articles. 
 
 .A.RTICLE I. — The Government of the United States of Mexico and the Gov- 
 ernment of China, agree to extend the dates fixed in Articles II and IV of the 
 protocol signed by their respective plenipotentiaries in the City of Mexico on the
 
 NUMBER 1911/13: DECEMBER 20, 1911 919 
 
 16th day of December, one thousand nine hundred and eleven, for the payment of 
 the voluntary and gratuitous indemnity which the Government of Mexico shall 
 pay to the Government of China for the reasons above mentioned, fixing for the 
 first purpose, the 15th day of February, one thousand nine hundred and thirteen, 
 and for the second, the thirty-first day of January of the same year. In conse- 
 quence, the articles referred to will read as follows : 
 
 Article II. — The sum mentioned in the preceding article shall be received 
 by the diplomatic representative of the Chinese Government duly accredited at 
 Mexico, or by some other agent of said government who shall produce his 
 authority, and the delivery shall be made in the City of Mexico on or before the 
 fifteenth day of February, one thousand nine hundred and thirteen. 
 
 Article IV. — The ratifications of this convention shall be exchanged at the 
 Mexican Embassy in the City of Washington, United States of America, at the 
 latest on the thirty-first of January, one thousand nine hundred and thirteen. 
 
 In faith whereof, the said plenipotentiaries have signed the present protocol 
 in duplicate and affixed thereto their seals in the City of Mexico, this thirteenth 
 day of December, one thousand nine hundred and twelve. 
 
 (L. S.) Julio Garcia. 
 (L. S.) Woo Chung Yen. 
 
 NUMBER 1911/13. 
 
 RUSSIA AND CHINA. 
 
 Treaty fixing the national boundary betzveen Russia and China, from Tarbaga 
 Dagh to Abahaitu, and along the Argun River to its confluence zvith the 
 Amur River* — December 20, 1911. 
 
 In view of the age-long and friendly relations between the Russian and 
 Chinese Empires, and with the aim of eliminating frontier disputes, the Govern- 
 
 * Translation from the Russian text as printed in Izviestia, 1913, vol. Ill, p. 65. 
 
 In Izviestia, 1912, vol. II, p. 110, is printed an exchange of notes in regard to this 
 treaty, of vi'hich the substance is contained in the following translation of the note from 
 the Wai Wu Pu to the Russian Legation, under date of December 7/20, 1911 : 
 
 " I had the honor to receive your communication, Monsieur le Charge d'Affaires, in 
 which you stated : 
 
 " ' I had the honor to receive the memorandum of your esteemed ministry, under 
 date of November 28 of this year, regarding the telegram of the Heilungkiang Governor 
 about the signature in Tsitsikhar of the agreement, confided to the commissioners of the two 
 sides, relating to the land and water frontier. Similar notice was simultaneously received 
 from the Russian commissioner also. 
 
 " ' In the text of the acts of agreement signed at Tsitsikhar no further formalities 
 are anticipated for the confirmation of these acts. In consequence of this, the Imperial 
 Government considers that the question of the present agreement has been settled finally 
 on the spot and there only remains to erect the boundary marks provided for in the 
 agreement.' 
 
 " The ministry confided to my charge, fully sharing the above stated point of view, has 
 not failed to furnish the Governor of the Heilungkiang Province with instructions by tele- 
 graph, which I bring to your knowledge, IMonsieur le Charge d'Affaires, in reply to your 
 communication."
 
 920 CHINA TREATIES AND AGREEMENTS 
 
 ments of His Majesty the Emperor of all the Russias and His Majesty the 
 Emperor of China have now appointed their commissioners : on the Russian side, 
 Commissioner by Imperial Command Major General Putiloff, and on the Chinese 
 side by Imperial Command Governor Chow of Heilungkiang Province, Mandarin 
 for the joint inspection of the frontier between Russia and China; who being 
 duly provided with credentials which were found in due and legal form, in the 
 name of their Governments, by mutual agreement, concluded the present treaty 
 act as follows : 
 
 (1) The Land Frontier between the Russian and Chinese Empires on the 
 section between Frontier Post No. 58, Tarbaga Dagh, and Post No. 63, Abahaitu, 
 shown in protocol No. 2 of the agreement concluded in Tsitsikhar on November 
 25, 1911 (Russian style) or the eighteenth of the tenth moon of the third year 
 of Hsiian Tung (Chinese style), and in the maps exchanged as supplement to the 
 same, shall in future consist of the line which passes in straight lines between 
 the undermentioned frontier points, the nomenclature of which corresponds with 
 the points named in the Abahaitu exchange of letters in the year 1727 (Russian 
 style) or fifth year of Yung Cheng (Chinese style). 
 
 The line of frontier is fixed by the red line which is drawn on the above- 
 mentioned maps exchanged, from Frontier Post No. 58 to Post No. 63, and 
 further along the Mutnoi Protok (Muddy Stream) to the River Argun. 
 
 Frontier Points 
 
 (a) Tarbaga Dagh. — The 58th frontier point is due south from the summit 
 of Mount Tarbaga Dagh and 6 Russian versts 312 sajens from same, or 12.64 
 Chinese // (7220.16 metres), on the steppe. 
 
 {h) Tsahan-Ola. — The 59th frontier point is northwest of the northern bank 
 of Lake Kharanor and 7 Russian versts 60 sajens from same or 13.5 Chinese li 
 (7760.8 metres), on the height. 
 
 (c) Tahun-Tologoi. — The 60th frontier point is at the frontier fortification 
 of the beginning of the Ching Dynasty (or Jenghiz Khan's Fort), northwest of 
 the northern bank of Lake Tsahan Nor, and 4 Russian versts, or 7.4 Chinese li 
 (4360 metres) from same. 
 
 id) Soktu. — The 61st frontier point is 4 Russian versts 450 sajens, or 9 
 Chinese li (5341 metres) northeast of the station building of the Chinese Eastern 
 Railway station Manchuli, on the height, and 400 Russian sajens or 1.5 Chinese 
 // (872 metres) south of the frontier fortification of the beginning of the Ching 
 Dynasty (or Jenghiz Khan's Fort). 
 
 (e) Erdyni Tologoi. — The 62nd frontier point is on the northern slope of the 
 Four-Headed Hill and is twelve Russian versts 400 sajens, or 24.4 Chinese li 
 (13952 metres) southeast of the 61st frontier point Soktu. 
 
 (/) Abahaitu. — The 63rd frontier point is on the western bank of the River 
 Dalan Ola or IVIutnoi Protok, and 6 Russian versts 300 sajens, or 12.2 Chinese 
 // (7194 metres) southwest of the Russian village of Abahaitu, and 3 versts 250 
 sajens or 6.5 // (3715 metres) southwest of Mount Krestovoi as it is called in 
 Russian, or Abahaitu, in Chinese. 
 
 (2) The water frontier between the Russian and Chinese Empires from the
 
 NUMBER 1911/13: DECEMBER 20, 1911 921 
 
 mouth of the River Argun, that is from the point of its confluence with the 
 River Amur (Heilungkiang) to the 63rd frontier point (Abahaitu) to be the 
 course of the River Argun, in accordance with the Nerchinsk treaty of 1689 (by 
 Russian reckoning) or the 28th year of the reign of K'ang Hsi (by Chinese 
 reckoning), and the protocols Nos. 1 and 3 of the agreement of 1911 (Russian 
 reckoning) and 3rd year of the reign of Hsiian Tung (Chinese reckoning). 
 
 The ownership of the islands in the River Argun, in accordance with Proto- 
 cols 1 and 3, has been amicably divided in the following way : 
 
 (o) Islands shown on the maps exchanged under numbers 1, 2, 3, 4, 5, 
 7, 8, 11, 12, 13, 14, 15, 16, 17, 18, 19, 21, 23, 26, 28, 29, 32, 34, 35, 36, 38, 43, 44, 45, 
 46, 47, 48, 49, 51, 55, 59, 60, 61, 62, 63, 64, 65, 66, 67, 69, 70, 71, 7Z, 75, 76, 77, 80, 
 83, 84, 86, 87, 88, 90, 92, 93, 94, 101, 102, 104, 106, 107, 108, 109, HI, 112, 113, 
 114, 115, 116, 117, 118, 119, 120, 127, 128, 129, 130, 132, 136, 137, 139, 142, 143, 
 146, 151, 152, 156, 157, 158, 160, 161, 162, 165, 166, 169, 170, 171, 174, 176, 177, 
 178, 180, 182, 193, 194, 197, 200, 202, 203. 206, 209, 211, 212, 214, 215, 216, 218, 
 219, 221, 223, 224, 226, 227, 228, 230, 231, 232, 235, 237, 238, 239, 243, 244, 245, 
 247, 248, 251, 252, 255, 256, 258, 262, 267, 268, 269, 270, 271, 272, 273, 274, 275, 
 276, 278, 279, and 280 belong to Russia. 
 
 (&) Islands shown on the maps exchanged under numbers 6, 9, 10, 20, 22, 
 24, 25, 27, 30, 31, ZZ, Z7 , 39, 40, 41, 42, 50, 52, 53, 54, 56, 57, 58, 68, 72, 74, 78, 79, 
 81, 82, 85, 89, 91, 95, 96, 97, 98, 99, 100, 103, 105, 110, 121, 122, 123, 124, 125, 
 126, 131, 133, 134, 135, 138, 140, 141, 144, 145, 147, 148, 149, 150, 153, 154, 155, 
 159, 163, 164, 167, 168, 172, 173, 175, 179, 181, 183, 184, 185, 186, 187, 188, 189, 
 190, 191, 192, 195, 196, 198, 199, 201, 204, 205, 207, 208, 210, 213, 217, 220, 222, 
 225, 229, 233, 234, 236, 240, 241, 242, 246, 249, 250, 253, 254, 257, 259, 260, 261, 
 263, 264, 265, 266, and 277 belong to China. 
 
 Further details concerning the national boundary from the 58th to 63rd 
 frontier points, and from the mouth of the River Argun to the said 63rd frontier 
 point, are provided in protocols of agreement Nos 1, 2, and 3, and in the maps 
 attached and exchanged with them and the schedules of islands signed and sealed 
 by both commissioners, which protocols, maps and schedules of islands have 
 equal force with the present act, and have to be observed by both sides. 
 
 Done in the town of Tsitsikhar, December 7, 1911 (Russian style, i.e., 
 December 20, new style), and the first of the eleventh moon of the third year 
 of Hsiian Tung (Chinese style), in the Russian and Chinese languages, in two 
 copies in each language, which upon signature and apposition of seals were duly 
 exchanged by the commissioners, so that each side might have original acts in the 
 Russian and Chinese languages. Originals were signed and sealed by Major 
 General Putilofif, Russian High Commissioner, appointed by Imperial Command, 
 and Governor Chow of the Heilungkiang Province, by Imperial Command 
 Mandarin for the delimitation of the frontier of the Ta Ch'ing Empire. 
 
 Protocol of Agreement No. 1. 
 
 Basing themselves on the reports made by the vice-presidents of the Russian 
 and Chinese delimitation commissioners, Messrs. Jdanov and Sun, regarding 
 the section of national river frontier from the mouth of the river Argun to the
 
 922 CHINA TREATIES AND AGREEMENTS 
 
 Cossack post of Argunski and above, the presidents of the Russian and Chinese 
 commissions, after verification decided : 
 
 The islands shown on the maps under numbers 1, 2, 3, 4, 5, 7, 8, 11, 12, 13, 
 14, 15, 16, 17, 18, 19, 21, 23, 26, 28, 29, 32, 34, 35, 36, 38, 43, 44, 45, 46, 47, 48, 
 49, 51, 55, 59, 60, 61, 62, 63, 64, 65, 66, 67, 69, 70, 71, 7}>, 75, 76, 77, 80, 83, 84, 
 86 and 87 to be considered as belonging to Russia; and islands under numbers 
 6, 9, 10, 20, 22, 24, 25, 27, 30, 31, 33, 37, 39, 40, 41, 42, 50, 52, 53, 54, 56, 57, 
 58, 68, 72, 74, 78, 79, 81, 82, and 85, to be considered as belonging to China. 
 
 The numbers of the islands as shown on the maps certified by their seals and 
 exchanged by the two presidents of the preliminary commissions at Manchuli 
 Station do not correspond to the numbers in the protocols of survey by the 
 members of the preliminary commissions, and numbers 85, 86, and 87, do not 
 appear at all on the maps exchanged at Manchuli Station; and, moreover, these 
 three numbers in the protocols of survey by members of both preliminary 
 commissions also dififer from the numbers of the joint survey carried out by 
 Mr. Ousat, member of the Russian Frontier Commission, and Mr. Sun Hsiao 
 Liang, President of the Chinese Frontier Commission. In view of these facts, 
 the numbers are shown in a comparative schedule and a separate detailed map 
 has been drawn showing the numbers according to this protocol of agreement ; this 
 map has been signed, sealed, and exchanged, and is joined to the protocol in 
 order to avoid misunderstanding. The small maps exchanged at first, and the 
 maps exchanged at Manchuli, have been handed back by both parties. 
 
 The originals were signed by Major General Putilofif, Commissioner for 
 Russia, and by Heilungkiang Governor Chow, Mandarin for the delimitation of 
 the Ta Ch'ing frontier.
 
 NUMBER 1911/13: DECEMBER 20, 1911 
 
 923 
 
 Comparative Schedule of the numeration of islands in the River Argun from its 
 MOUTH to the Cossack post of Argunski and above. 
 
 2 <n 
 
 * I-, 
 
 C 
 
 s of 
 pre- 
 ikofif 
 
 ocols 
 
 nber 
 
 usat, 
 
 nary 
 
 ex- 
 
 ex- 
 
 pre- 
 and 
 
 
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 pre- 
 ikoff 
 
 7; a; rt u. X 
 
 c ^.S 
 
 ex- 
 pre- 
 and 
 
 .S.2 
 
 <-• o 5 
 2 \S 
 
 B^Op,. 
 c c o 2 
 
 a > 
 
 •S.2 
 
 2 ^s 
 
 "^^"^ tn 
 
 0. n*!; 2" 
 
 E°^ 
 
 p$- 
 "" S _- 
 
 ^^1 
 
 to W 
 
 2 12- 
 
 "> 5 g p 
 
 r- i; 1 — . 
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 -S^.2 
 
 5^1 
 
 «: E 
 
 o 
 
 tn o 
 P b 
 
 
 ^ ^.2 ^ e 
 
 lU— tn '^ 
 Q, tn j„ 
 
 tn^-g^.P 
 
 ^gEc 
 
 •— CI 
 
 c >> Pr 
 
 t/5 5 ^ 
 
 (« P O 3 ^3 -f 
 
 III 
 
 tn p 
 
 S 
 
 in -g 
 
 1*- bo 
 
 «^ pH 
 
 tn 5 
 
 t!2 = 3-c -■ 
 
 rr > ^ p "^ 
 
 ^ li tn 
 P i_ tn 
 
 p 
 
 ^ = 
 
 ■- >^R.S 
 
 ^ 1- rt o . 
 
 >>n 
 
 O = 
 
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 .^ 1- P3 . 
 
 >> ^ 
 
 O rt 
 
 (U OL" 
 
 3 C-z c >< 
 
 w-^ s 
 
 ^ c3 
 
 <u wv- 
 
 = P-S P >^ 
 
 ^-•^ 8 
 
 f 
 
 M-l > K^ 
 
 u- M--.=; o-^ 
 
 o '^ 
 
 r--P 
 
 «*- > ?« 
 
 <4-i tn-— .— 0^ 
 
 M-« (J 
 
 c u 
 
 O i- 
 
 o E fTi-^ 
 
 
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 O X 
 
 D >> = 
 
 *J .P '^ '^ Ti 
 
 T3 >» 
 
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 3 >, p 
 
 ■^•- £; ^"O 
 
 "73 >> 
 
 ii 
 
 (« (« u o 
 
 c o £ p 
 
 en p-r "-.^ o 
 
 -g-^°--a E 3 
 
 en o J- 
 
 -^I'eS 
 
 15^ 
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 <u a. 
 
 Ie 
 
 tn tn u o 
 
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 Cm-«*- P 0^ 
 
 1 II i 
 
 3-i^-= rt 
 
 3 O O n) w o 
 
 3 o::::c/i 
 
 
 3 C3 tj tj 
 
 p u — C/) 
 
 ;z 
 
 ^ 
 
 2; 
 
 2 
 
 2: 
 
 ^ - 
 
 2 
 
 ic 
 
 1 
 
 87 
 
 
 1 
 
 45 
 
 43 
 
 
 45 
 
 2 
 
 86 
 
 
 
 2 
 
 46 
 
 42 
 
 
 
 46 
 
 3 
 
 85 
 
 
 
 3 
 
 47 
 
 41 
 
 
 
 47 
 
 4 
 
 84 
 
 
 
 4 
 
 48 
 
 40 
 
 
 
 48 
 
 5 
 
 83 
 
 
 
 5 
 
 49 
 
 39 
 
 
 
 49 
 
 6 
 
 82 
 
 
 
 6 
 
 50 
 
 38 
 
 
 
 50 
 
 7 
 
 81 
 
 
 
 7 
 
 51 
 
 27 
 
 
 
 51 
 
 8 
 
 80 
 
 
 
 8 
 
 52 
 
 36 
 
 
 
 52 
 
 9 
 
 79 
 
 
 
 9 
 
 53 
 
 35 
 
 
 
 53 
 
 10 
 
 78 
 
 
 
 10 
 
 54 
 
 34 
 
 
 
 54 
 
 11 
 
 77 
 
 
 
 11 
 
 55 
 
 22 
 
 
 
 55 
 
 12 
 
 76 
 
 
 
 12 
 
 56 
 
 22 
 
 
 
 56 
 
 13 
 
 75 
 
 
 
 13 
 
 57 
 
 31 
 
 
 
 57 
 
 14 
 
 74 
 
 
 
 14 
 
 58 
 
 30 
 
 
 
 58 
 
 15 
 
 72, 
 
 
 
 15 
 
 59 
 
 29 
 
 
 
 59 
 
 16 
 
 72 
 
 
 
 16 
 
 60 
 
 28 
 
 
 
 60 
 
 17 
 
 71 
 
 
 
 17 
 
 61 
 
 27 
 
 
 
 61 
 
 18 
 
 70 
 
 
 
 18 
 
 62 
 
 26 
 
 
 
 62 
 
 19 
 
 69 
 
 
 
 19 
 
 63 
 
 25 
 
 
 
 63 
 
 20 
 
 68 
 
 
 
 20 
 
 64 
 
 24 
 
 
 
 64 
 
 21 
 
 67 
 
 
 
 21 
 
 65 
 
 23 
 
 
 
 65 
 
 22 
 
 66 
 
 
 
 22 
 
 66 
 
 22 
 
 
 
 66 
 
 23 
 
 65 
 
 
 
 23 
 
 67 
 
 21 
 
 
 
 67 
 
 24 
 
 64 
 
 
 
 24 
 
 68 
 
 20 
 
 
 
 68 
 
 25 
 
 63 
 
 
 
 25 
 
 69 
 
 19 
 
 
 
 69 
 
 26 
 
 62 
 
 
 
 26 
 
 70 
 
 18 
 
 
 
 70 
 
 27 
 
 61 
 
 
 
 27 
 
 71 
 
 17 
 
 
 
 71 
 
 28 
 
 60 
 
 
 
 28 
 
 72 
 
 16 
 
 
 
 72 
 
 29 
 
 59 
 
 
 
 29 
 
 72 
 
 15 
 
 
 
 72 
 
 30 
 
 58 
 
 
 
 30 
 
 74 
 
 14 
 
 
 
 74 
 
 31 
 
 57 
 
 
 
 31 
 
 75 
 
 13 
 
 
 
 75 
 
 32 
 
 56 
 
 
 
 32 
 
 76 
 
 12 
 
 
 
 76 
 
 . ZZ 
 
 55 
 
 
 
 Zi 
 
 77 
 
 11 
 
 
 
 77 
 
 34 
 
 54 
 
 
 
 34 
 
 78 
 
 10 
 
 
 
 78 
 
 35 
 
 53 
 
 
 
 35 
 
 79 
 
 9 
 
 
 
 79 
 
 36 
 
 52 
 
 
 
 36 
 
 80 
 
 8 
 
 
 
 80 
 
 Zl 
 
 51 
 
 
 
 27 
 
 81 
 
 7 
 
 
 
 81 
 
 38 
 
 50 
 
 
 
 38 
 
 82 
 
 6 
 
 
 
 82 
 
 39 
 
 49 
 
 
 
 39 
 
 83 
 
 5 
 
 
 
 83 
 
 40 
 
 48 
 
 
 
 40 
 
 84 
 
 4 
 
 25 
 
 84 
 
 41 
 
 47 
 
 
 
 41 
 
 85 
 
 3 
 
 24 
 
 
 42 
 
 46 
 
 
 
 42 
 
 86 
 
 2 
 
 23 
 
 
 43 
 
 45 
 
 
 
 43 
 
 87 
 
 1 
 
 22 
 
 
 44 
 
 44 
 
 
 
 44 
 
 
 

 
 924 CHINA TREATIES AND AGREEMENTS 
 
 The originals were signed by Major General Putiloff, Commissioner for 
 Russia, and by Heilungkiang Governor Chow, Mandarin for the Delimitation of 
 the Ta Ch'ing Frontier. 
 
 Protocol of Agreement No. 2. 
 
 The Russian and Chinese delimitation commissions in Tsitsikhar by mutual 
 agreement have together recognized that the national land frontier between 
 Russia and China on the section from frontier pillar Tarbaga Dagh, No. 58, to 
 frontier pillar Abahaitu, No. 63, shall be the straight lines between the following 
 points, the nomenclature of which corresponds to the frontier points fixed by 
 treaty : 
 
 [Here follows an enumeration of the frontier points Tarbaga Dagh, Tsahan-Ola, 
 Tabun-Tologoi, Soktu, Erdyni-Tologoi. and Abahaitu, in terms identical with those of 
 §§ (a), (b), (c), (d), (e), and (f) of the treaty, as printed on p. 920, ante?[ 
 
 Upon the termination of all negotiations of the two frontier commissions 
 in Tsitsikhar, and after both presidents had signed and sealed the present protocol 
 and had affixed the maps (likewise signed and sealed), we exchanged the same. 
 Thereupon each side shall appoint representatives to the relative places in order 
 to measure on the spot the directions and distances shown in this protocol of 
 agreement and in the maps exchanged and affixed thereto, and in order to mark 
 the frontier points ; and in case the maps exchanged show discrepancies with 
 the locality, such discrepancies are to be corrected on the spot by both representa- 
 tives by mutual agreement. 
 
 In the present year there will only be erected temporary stone pillars to mark 
 the position of the frontier, but next spring, at a time to be appointed, and after 
 jointly ascertaining the longitude and latitude of these points, they shall be marked 
 with frontier pillars on which shall be inscribed in Russian and Chinese the 
 name of the frontier point and the degrees of longitude and latitude. The whole 
 of the frontier line must be marked by digging a trench. 
 
 The additional act, which shall be jointly drawn up by the two representatives 
 after finishing the determination of the frontier on the spot, and which shall be 
 exchanged by them, is to be added as a document to the present protocol of agree- 
 ment. 
 
 Originals were signed and sealed by Major General Putiloff, Russian High 
 Commissioner, appointed by Imperial Command, and Governor Chow of the 
 Heilungkiang Province, by Imperial Command Mandarin for the delimitation 
 of the frontier of the Ta Ch'ing Empire. 
 
 Tsitsikhar, November 25, 1911 (Russian style), and the eighteenth of the 
 tenth moon of the third year of Hsiian T'ung's reign (Chinese Calendar). 
 
 Protocol of Agreement No. 3. 
 
 Having verified the reports made by Messrs. Jdanov and Sun, the assistants 
 to the presidents of the Russian and Chinese delimitation commissions, relative 
 to the section of the River line national boundary from Island No. 87, shown on
 
 NUMBER 1911/13: DECEMBER 20, 1911 925 
 
 the map attached to protocol of agreement Xo. 1, to the frontier pillar No. 63 
 (Abahaitu), shown on the map exchanged and attached to protocol of agreement 
 No. 2, the presidents of the Russian and Chinese commissions have decided : 
 
 (1) In accordance with the previous treaty of 1689, or the twentieth year of 
 K'ang Hsi, to consider the course of the River Argun as the national boundary 
 between Russia and China from the mouth of the River Argun to frontier pillar 
 No. 63 (Abahaitu). 
 
 (2) The islands shown on the maps exchanged under numbers 89, 91, 95, 
 96, 97, 98, 99, 100, 103, 105. 110, 121. 122, 123, 124, 125, 126, 131, 133, 134, 135, 
 138, 140, 141, 144, 145, 147, 148, 149, 150, 153, 154. 155, 159, 163, 164, 167, 168, 
 172, 173, 175, 179, 181, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 195, 196, 
 198, 199, 201. 204. 205, 207, 208, 210. 213, 217, 220. 222. 225, 229, 233, 234, 236. 
 240, 241, 242, 246, 249, 250, 253, 254, 257, 259, 260, 261, 263, 264, 265, 266, and 
 277, belong to China. 
 
 (3) The islands shown on the maps exchanged under numbers 88, 90, 92, 93. 
 94, 101, 102, 104, 106, 107, 108, 109, 113, 114, 116. 118, 119, 127, 128, 129, 130. 
 132, 136, 137, 139, 142, 143, 146, 151, 152, 156, 157, 158, 160, 161, 162, 165, 166, 
 169, 170, 171, 174, 176, 177, 178, 180, 182, 193, 194, 197, 200, 202, 203, 206, 209. 
 212, 214, 215, 216, 218, 219, 221, 223, 224, 228. 230, 231. 232, 235, 237, 238, 239, 
 243, 244, 245, 247, 248, 251, 252, 255, 256, 258, 262, 275, 276, and 278 belong to 
 Russia. 
 
 (4) The islands shown on the exchanged maps under numbers 111, 112. 
 115, 117, 120, 211, 226, 227, 267, 268, 269, 270, 271, 272, 273, 274, 279, and 
 280, being islands formed between the old bed of the Argun, the former national 
 boundary, and the present-day Argun, which in the course of time has shifted to 
 the west, are to remain in Russian possession. The present course of the River 
 Argun is to be considered as the national boundary between Russia and China. 
 
 On the banks of the old and new Argun, opposite the large islands, numbers 
 227, 269, 273, 279, and 280, the representatives who will be sent by both parties 
 next spring at an agreed time shall place stone pillars on which shall be inscribed, 
 in Russian and Chinese, the area of the islands in vcrsts or dessiatincs, the distance 
 to the banks of the old and new Argun, as per maps exchanged and according 
 to the position of the pillars as jointly fixed by longitude and latitude. Until 
 this work is done, temporary signs are to be placed, as was also agreed in the 
 case of the land frontier in protocol of Agreement No. 2. 
 
 For the remaining islands, the proof shall consist of the maps exchanged and 
 certified by seals and signatures. 
 
 (5) For future reference there are added to this protocol maps and ex- 
 planatory schedules of islands, duly signed, sealed, and exchanged by the 
 presidents of the commissions. 
 
 Originals were signed and sealed by Major General Putiloflf, Russian High 
 Commissioner, appointed by Imperial Command, and Governor Chow of the 
 Heilungkiang Province, by Imperial Command Mandarin for the delimitation of 
 the frontier of the Ta Ch'ing Empire. 
 
 Tsitsikhar, November 25, 1911 (Russian style), and the eighteenth of the 
 tenth moon of the third year of Hsiian T'ung (Chinese calendar).
 
 926 
 
 CHINA TREATIES AND AGREEMENTS 
 
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 NUMBER 1911/14: DECEMBER 27, 1911 927 
 
 Original signed and sealed by Major General Putiloff, Russian High Com- 
 missioner, appointed by Imperial Command, and Governor Chow of the Heilung- 
 kiang Province, by Imperial Command Mandarin for the delimitation of the 
 frontier of the Ta Ch'ing Empire. 
 
 Tsitsikhar, November 25, 1911 (Russian style) and eighteenth of the tenth 
 moon of the third year of Hsiian T'ung (Chinese Calendar). 
 
 NUMBER 1911/14. 
 
 FRANCE AND THE UNITED STATES. 
 
 Exchange of notes for the reciprocal protection of copyrights in China* — 
 
 December 27, 1911. 
 
 The French Charge d'Affaires to the American Minister at Peking. 
 
 [Translation.] 
 
 Legation of the French Republic in China, 
 
 Peking, December 26, 1911. 
 Mr. Minister, 
 
 Our Governments being desirous of assuring to French and American citi- 
 zens and subjects reciprocal protection in China of the rights of authors over 
 their literary and artistic productions to the same extent that they are protected 
 in French and American territories and possessions, I have been instructed by 
 the Minister for Foreign Affairs of France to communicate to you the following: 
 
 1st. — By virtue of the civil and criminal jurisdiction with which they are 
 vested and which they exercise in China, the Consuls and Consular Courts of 
 France are competent to take cognizance of all complaints that may be laid before 
 them relative to the violation of the rights of authorship by persons under French 
 jurisdiction. 
 
 2nd. — Consequently, whenever persons under American jurisdiction shall 
 have occasion to address them in order to obtain respect from persons under 
 French jurisdiction of their rights of authorship over their literary and artistic 
 productions, including photographs, the complaints will henceforth be laid, in the 
 first instance, before the Consular Court, and in appeals before the Appellate 
 Courts at Saigon or Hanoi. 
 
 3rd. — The citizens of the possessions of the United States of America will 
 enjoy in China the same treatment as the citizens of the United States of 
 America. 
 
 4th. — Unauthorized reproductions by persons under French jurisdiction, 
 made previous to the first of January next, of literary, artistic, or photographic 
 
 *In this connection, see also the exchange of notes in regard to the reciprocal protec- 
 tion of trademarks, October 3, 1905 (No. 1905/12, ante).
 
 928 CHINA TREATIES AND AGREEMENTS 
 
 works executed by persons under American jurisdiction, will be withdrawn from 
 sale or circulation in China before December thirty-first, 1912. 
 
 5th. — Literary and artistic property in France is regulated by the Law of 
 March 28, 1887, which approves the Convention signed at Berne on September 
 9, 1886, for the protection of literary and artistic productions, and also by the 
 Law of April 15, 1897, which approves the additional enactment and the declara- 
 tion of May 4, 1896, modifying the Convention of Berne. 
 
 I will be under great obligation to you if you will kindly take note of the 
 present declaration and will inform me whether persons under French jurisdic- 
 tion may count on the same legal protection from the consular authorities in 
 China of the United States of America in all that concerns the ownership of 
 literary and artistic productions. 
 
 Accept, Mister Minister, the assurances of my high consideration. 
 
 (Signed) F. Georges Picot. 
 
 The American Minister to the French Charge d' Affaires at Peking. 
 
 American Legation, 
 Peking, December 27, 1911. 
 Mr. Charge d'Aff aires and dear Colleague : 
 
 I have the honor to acknowledge the receipt of your note of December 26, 
 1911, informing me that you have been authorized by your Government to effect 
 with me by an exchange of notes an agreement for the reciprocal protection in 
 China of French and American copyrights for literary and artistic productions. 
 
 I have the honor to inform you in reply that I have been authorized to state 
 that henceforth protection will be afforded in China, in accordance with the 
 laws of the United States and on condition of reciprocity, for the copyrights of 
 French literary, artistic, musical, or dramatic works, including photographs, duly 
 registered in the United States, against infringement by persons under American 
 jurisdiction. To that end the American courts in China will be competent to hear 
 all such cases presented by citizens or subjects of France. 
 
 I have the honor further to inform you that the protection of literary and 
 artistic property in the United States of America is provided for by the act of 
 Congress of March 4, 1909, amending and consolidating previous acts respecting 
 copyright {U. S. Statutes at Large, vol. 35, Chapter 320) ; and that by a Presi- 
 dential proclamation of April 9, 1910, this protection is extended to works of 
 authors or proprietors who are citizens or subjects of France. 
 
 Accept, Mr. Charge d'Affaires and dear Colleague, the renewed assurances 
 of my high consideration. 
 
 (Signed) W. J. Calhoun. 
 Mr. Fr. Georges Picot, 
 
 Charge d'Affaires, 
 
 The Legation of France, 
 etc., etc., etc.
 
 university of Califoma 
 SOOTHERS REGIONAL UBRA«V*Si'-S388 
 "^ %HSg°^l"eS. «UFlkN."90095.138a
 
 AA 000 966 69C 
 
 CENTRAL UNIVERSITY LIBRARY 
 University of California, San Diego 
 
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