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-
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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
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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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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
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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 0 0 on Application.
£11 18 5 " Acceptance.
£85 0 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.
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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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243
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118
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248
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249
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121
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129
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194
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3
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130
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195
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259
2
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131
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196
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1
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4
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197
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261
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133
3
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198
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262
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134
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199
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263
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135
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200
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264
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136
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201
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265
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137
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202
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260
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138
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203
8
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267
2
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139
38
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204
7
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268
1
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140
37
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205
6
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269
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Russia
141
36
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206
5
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270
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Russia
142
35
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207
4
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271
Russia
3 43
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208
3
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272
Russia
144
33
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209
2
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273
Reldjinski
Russia
145
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210
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274
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146
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Russia
211
Zorpol
Russia
275
Russia
147
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212
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276
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148
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213
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277
China
149
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214
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278
Russia
150
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215
12
Russia
279
Menkoseli
Russia
151
26
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216
11
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280
Abahaituevski
Russia
152
25
Russia
217
10
China
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
DATE DUE
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