ASIA MANCHURIA Treaties and Agreements Carnegie Endowment for International Peace division of international law- PAMPHLET No. 44 LUaJion ■i::>5783.7 ajarnell Iniuctaitjj Sithrarg Stljata, Sfew ^nrk {. o.-r Xwt e.v.Te a. e /■ ./ H Cerak Jelnovo Chornaya^ u Chinese ilar Khinaan Tuimel '\ \ ^ o 1S5 O \ A / ChalantaniB .o Mergen o** J u /■ ■— ■\ V /' ■\ (^^ V' v^ ';^ °^aha *rSITSIHAR (Station) 44- ./■ ./^■' / / V. .y / / /' ./ ./ /■ "^ ./ \ x^ '\ N ,a \poclurueJ N "\ ^ I Taonanfu o»*»^^j^^.^etun2 \ %, \3 ^ 5 \ ./■ / <■ y' ^ H 40 <) /■ ./■ .^' Chaoya ivvat ngl X --^ ./ _/•■ ■•- ^ ,/' .x' ') '\ r \ \ i :.> / I ; y^'^fn^tehfu.,-*' \ Cheng-chiatun ^; a.\g^ i^t.*' ^••* Kalyuan O ttiis^"*^*** Vakumeno / ^ ) -O 4M r^ Ku#icViengtze|i^ I .>^hangclnury^- *»^ '*>^ I, •••..•••T4aU-ung \ \ ) Dhow Ch y' Fushun ^KDEN CFengtleTiJ 3hiaotze , t-u \? Pensihu "^^TT^jcang ay- .^^J^ \ /' / ./■ (.ngtai; ings .) ^ ^ ^^ ^ \ Y Tsangohovvl /Chengtingfu iys' LKaoyi Fi-'nchenp Mine r^ ^^m: Pashihkiao I . 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"JO kO\^^J so .V.oV^*'^ ►Chyc O FF Tsuy aroai Off '^^°^ l^Osaks ^ '0' \ ^' RAILWAY MAP OF NORTH CHINA COMPILED BY J.V.A. MAC MURRAY FROM THE RUSSIAIST GOVERNMENT MAP OF THE WAYS OF COMMUNICATION OF ASIATIC RUSSIA (1911) AND OTHER SOURCES. AND DRAWN BY MR. Y. Y. WU UNDER THE SUPERVISION OF MR. MURRAY SULLIVAN OF THE CHUCHOW-CHINCHOW RAILWAY ADMINISTRATION; OCTOBER 1918 Scale, 1:6,300,000 ( 1 OO miles to the Inch) 50 O 5G too 150 200 44 36 I In operation Under construction Projected from 128° Greenv 136° L. L. POATES CO. , N. Y. No. 1 JAPAN AND CHINA Treaty of peace {with separate articles and Convention to prolong armistice)} — April I'j, 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 sub- jects 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, L,i Hung-chang, Senior Tutor to the Heir Apparent, Senior Grand Secretary of State, Minister Superin- tendent 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 Viscount 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 conse- quence the payment 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 Fengtien Province. — China cedes to Japan in perpetuity and full sovereignty the following territories, together with all fortifications, arsenals, and public property thereon: (a) The southern portion of the province of Fengtien, within the fol- lowing boundaries : The line 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 terminates. The mid-channel of the River Liao shall be taken as the line of demarcation. 1 MacMuekay, vol. 1, p. 18. Printed also in Rockhiix, p. 14; Customs, vol. n, p. 590 ; Traites et conventions, p. 209 ; Herstlet, p. 362 ; Recueil, p. 1 ; American Journal International Law, Supplement, 1907, p. 378. See Note 1 to. this document, post, p. 7. 1 2 MANCHURIA : TREATIES AND AGREEMENTS 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 belonging 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 33rd and 34th 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,^ shall be subject to the verification and demarcation on the spot, by a Joint Commission of Delimitation consisting of two or more Chinese and two or more Japanese Delegates to be appointed immediately after the exchange of the ratifications of this Act. In case the boundaries laid down in this act att found to be defective at any point, either on account of topography or in consideration of good administration, it shall also be the duty of the Delimitation Commission 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 appointment. 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. Artici,e 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 ratifica- tions of this Act. The remaining sum to be paid in six equal annual install- ments, 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 begin to run on all unpaid por- tions 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 in- demnity 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. ^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. 2, post). NUMBER 1 : APRIL 17, 1895 3 Article V. — Inhabitants of ceded territory. — The inhabitants of the territory 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 terri- tories 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 ^ and a Conven- tion to regulate Frontier Intercourse and Trade. The Treaties, Conven- tions, and Regulations now subsisting 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 ; navigation ; frontier inter- course 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 present 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 MacMurray, vol. I, p. 68. °In connection with this article, see the procotol concerning Japanese settlements, etc., October 19, 1896 (ibid., p. 91), and attached note giving the agreement for the establishment of a Japanese settlement at Shashi, August 18, 1898 (ibid., p. 93). 4 MANCHURIA: TREATIES AND AGREEMENTS 3nd. — Navigation on Chinese inland waters. — Steam navigation for vessels under the Japanese flag for 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, fro;7i Shanghai to Su-chow and Hang-chow. The Rules and Regulations which now govern the navi- gation 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 ware- houses 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 Com- merce 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. Artici,e VIII. — Temporary military occupation of Wei-hai-wei. Its evacuation. — As a guarantee of the faithful performance of the stipula- tions 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, provided the Chinese Government consent to pledge, under suitable and sufficient arrangements, the Customs Revenue of China as a Security for the payment of the 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. NUMBER 1: APRIL 17, 1895 5 It is, however, expressly understood that no such evacuation shall take place until after the exchange of the ratifications of the Treaty of Com- merce and Navigation. Article IX. — Prisoners of war. — Immediately upon the exchange of the 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 sub- jects accused of being military spies or charged with any other military offenses. China further engages not to punish' in any manner nor to allow to be punished, those Chinese subjects who have in any manner been com- promised in their relations with the Japanese, army during the war. Article X. — Cessation of military operations. — All offensive mili- tary operations shall cease upon the exchange of the ratifications of this Act. Article XI. — The present Act shall be ratified by their Majesties the Emperor of China and the Emperor of Japan, and the ratifications shall be exchanged at Chefoo, on the 14th day of the 4th month of the 31st year of Kwang Hsii, corresponding to the 8th day of the 5th month of the 38th 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 Shimonoseki, in duplicate, this 33d 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 Bmperor of China, Senior Tutor of the Heir Apparent, Senior Grand Secretary of State, Minister Stiperintendent of Trade for the North Ports of China, Viceroy of the Province of Chihli, and Barl of the First Rank. Ivi Ching Fong. Plenipotentiary of His Majesty the Bmperor of China, Bx-Minister of the Diplomatic Service, of the Sec- ond Official Rank. Count Ito Hirobumi. [l. s.] Junii, Grand Cross of the Imperial Order of Paul- lownia. Minister President of State, Plenipotentiary of His Majesty the Bmperor 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 Bmperor of Japan. '^ Ratifications exchanged at Chefoo, May 8, 1895. 6 MANCHURIA: TREATIES AND AGREEMENTS 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 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 tem- porarily 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 ad- ministration 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, main- tenance, safety, distribution or discipline of the Troops. , All military offences committed within the occupied territory shall be subject 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 31st 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 Pleni- potentiaries 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 : NUMBER 1 (NOTE) : AUGUST 1, 1894 7 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 31 days from this date. 11. — 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 31st year of Kwang Hsii, corresponding to the 8th day of the 5th month of the 38th year of Meiji. The rejection in the meantime, how- ever, of the said Treaty of Peace, by either High Contracting Party, shall have the effect of at once terminating this Armistice without previous notice. • In witness whereof the Plenipotentiaries of China and Japan have here- unto set their hands and affixed their seal. Done at Shimonoseki, this 33rd day of the 3rd month of the 31st year of Kuang Hsii, corresponding to the 17th day of the 4th month of the 38th year of Meiji. (April I'Tth, 1895.) (Signatures (4) and titles, same as in Treaty.) Note 1 In connection with this treaty, see the convention for the retrocession of the south- ern portion of Fengtien, November 8, 1895 (No. 2, post). The following is a translation of the Japanese declaration of war against China, dated August 1, 1894: Imperial Rescript. — August 1, 1894 We, by the Grace of Heaven, Emperor of Japan, seated on a Throne occupied by the same dynasty from time immemorial, do hereby make proclamation to all our loyal and brave subjects as follows: We hereby declare war against China and We command each and all of Our com- petent authorities, in obedience to Our wish and with a view to the attainment of the national aim, to carry on hostilities by sea an J by land against China, with all the means at their disposal consistently with the Law of Nations. During the past three decades of Our reign, our constant aim has been to further the peaceful progress of the country in civilization; and being sensible of the evils in- separable from complications with foreign States, it has always been our pleasure to in- struct our Ministers of State to labor for the promotion of friendly relations with our Treaty Powers. We are gratified to know that the relations of Our Empire with those Powers have yearly increased in good will and in friendship. Under the circumstances we were unprepared for such a conspicuous want of amity and of good faith as has been manifested by China in her conduct towards this country in connection with the Korean affair. Korea is an independent State. She was first introduced into the family of nations by the advice and under the guidance of Japan. It has, however, been China's habit to designate Korea as her dependency, and openly and secretly to interfere with her domestic affairs. At the time of the recent civil insurrection in Korea, China dis- patched troops thither, alleging that her purpose was to afford succour to her depend- ent State. We, in virtue of the treaty concluded with Korea in 1882, and looking to possible emergencies, caused a military force to be sent to that country. Wishing to procure for Korea freedom from the calamity of perpetual disturb- ance, and thereby to maintain the peace of the East in general, Japan invited China's J See Note 1 to this document, on this page. 8 MANCHURIA: TREATIES AND AGREEMENTS co-operation for the accomplishment of that object. But China, advancing various pre- texts, declined Japan's proposal. Thereupon, Japan advised Korea to reform her ad- ministration so that order and tranquillity might be preserved at home, and so that the country might be able to discharge the responsibilities and duties of an independent State abroad. Korea has already consented to undertake the task. But China has secretly and insidiously endeavored to circumvent and to thwart Japan's purpose. She has, further procrastinated, and endeavored to make warlike preparations both on land and at sea. When those preparations were completed, she not only sent large reen- forcements to Korea, with a view to the forcible attainment of her ambitious designs, even carried her arbitrariness to the extent of opening fire upon Our ships in Korean waters. China's plain object is to make it uncertain where the responsibility resides of preserving peace and order in Korea, and not only to weaken the position of that State in the family of nations — a position obtained for Korea through Japan's efforts — but also to obscure the significance of the treaties recognizing and confirming that position. Such conduct on the part of China is not only a direct injury to the rights and inter- ests of this Empire ; but also a menace to the permanent peace and tranquility of the Orient. Judging from her actions, it must be concluded that China, from the begin- ning, has been bent upon sacrificing peace to the attainment of her sinister object. In this situation, ardent as Our wish is to promote the prestige of the country abroad by strictly peaceful" methods, we find it impossible to avoid a formal declaration of war against China. It is Our earnest wish that, by the loyalty and valor of our faithful sub- jects, peace may soon be permanently restored and the glory of the Empire be aug- mented and completed. Given this 1st day of the eighth month of the 27th year of the Meiji. (Sign Manual.) (Countersignatures of Minister President of State and other Ministers.) See also the treaty of alliance between Japan and Korea, signed at Seoul, August 26, 1894, of which the following translation is printed in RocKHixi,, 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 en- trusted His Imperial Majesty's Envoy Extraordinary and Minister Plenipotentiary at Soul, Korea, with the expulsion, on their behalf, of Chinese soldiers from Korean ter- ritory, the Governments of Japan and Korea have been placed in a situation to give mutual assistance both offensive and defensive. Consequently the undersigned Pleni- potentiaries, duly authorized by their respective Governments, have, with a view of de- fining the fact and of securing in the premises concerted action on the part of the two countries, agreed to the following Articles: "Artici.E 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 ex- pelling Chinese soldiers from Korean territory. "Art. II. Japan will undertake all warlike operations against China, both offensive and defensive, while Korea will undertake to give every possible facility to Japanese soldiers regarding their movements and supply of provisions. "Art. 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: NUMBER 1 (NOTE) : MARCH 30, 1895 9 Convention of Armistice between Japan and China. — March 30, 1895 "His Majesty the Emperor of Japan having, in view of the untoward event which temporarily interrupted the depending negotiations for peace, commanded His Pleni- potentiaries to consent to a temporary Armistice, the undersigned, Count iTo Hisobumi, 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 Aiiairs, the Plenipotentiaries of His Majesty the Emperor of Japan; and Li Hung-chang, Plenipotentiary of His Majesty the Em- peror 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 Conven- tion 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. "Art. II. The forces affected by this Armistice shall have the right to maintain the positions respectively occupied by them at the time hostilities are actually sus- pended, but they shall not under any circumstances during the existence of this Armis- tice advance beyond such positions. "Art. III. The two Governments engage during the existence of this Conven- tion not to extend, perfect, or advance their attacking works, or to reinforce or in any- wise to strengthen, either for offensive or defensive operations, their confronting mili- tary lines. But this engagement shall not prevent either Government from making any new distribution or arrangement of troops not intended to augment or strengthen the armies now actually in the field and engaged in active mihtary operations. "Art. 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. "Art. V. This Armistice shall be enforced by the Imperial Governments of Japan and China for the period of 31 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 coun- tries shall, upon receipt of such orders, announce the fact to each other and take steps to enforce the Armistice. "Art. VI. This Armistic shall terminate, without notice on either side, at midday on the 30th day of the 4th month of the 38th year of Meiji, corresponding to the 36th day of the 3rd month of the 21st year of Kuang Hsu. If in the meantime the depending negotiations for peace are broken off, this Armistice shall in that case ter- minate at the same time such negotiations cease. "In witness whereof the Plenipotentiaries of Japan and China have hereunto set their hands and afBxed 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 Kuang Hsu. "Count Hirobumi Ito, [L. S.] Junii, Grand Cross of thd Imperial Order of Paullownia, Minister President of State, Plenipotentiary of His Majesty the Bmperor of Japan. "Viscount Mutsu Munemitsu, [L. S.] Junii, First Class of the Imperial Order of the Sacred Treasure, Minister of State for Foreign Affairs, Plenipoten- tiary of His Majesty the Bmperor of Japan. "Li Hung-chang, [L. S.] Plenipotentiary of His Majesty the Em- peror of China, Senior Tutor to the Heir Apparent, Senior Grand Secre- tary of State, Minister Superintendent of Trade for the Northern Ports of China, Viceroy of the province of Chihli, and Earl of the First Rank." 10 MANCHURIA: TREATIES AND AGREEMENTS No. 2 JAPAN AND CHINA Convention for the retrocession by Japan to China of the southern por- tion of the Province of Peng-Tien (i. e., the Liaotung Peninsula)} — November 8, i8pj 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 southern 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 Imperial Order of the Rising Sun, Minister Plenipotentiary and Envoy Extraordinary and His Majesty the Emperor of China — Li Hung-Chang, Minister Plenipotentiary, Senior Tutor of the Heir-Apparent, Senior Grand Secre- tary 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 : Article I. — Territory retroceded. — Japan retrocedes to China in perpetuity and full sovereignty the southern portion of the Province of Feng-Tien, which was ceded to Japan under Article IP of the Treaty of Shimonoseki of the 17th day of the 4th month of the 38th year of Meiji, corresponding to the 33rd day of the 3d month of the 31st year of Kuang Hsti, together with all fortifications, arsenals aad 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 L,iao-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 retrocession of the southern portion of the Province of Feng-Tien, the Chinese Government engage to pay to the Japanese Government 30,000,000 ^ MacMurray, vol. I, p. 50. Printed also in Rockhill, p. 26, B. &■ F. State Papers, vol. 87, p. 1195 ; Recueil, p. 89 ; HertslUT, p. 370, and American Journal of Interna- tional Law, Supplement, 1907, p. 384. NUMBER 2 : NOVEMBER 8, 1895 1 1 Kuping taels on or before the 16th day of the 11th month of the 38th year of Meiji, corresponding to the 30th day of the 9th month, of the Slst 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 li of this Convention, the retroceded territory shall be completely evacuated by the Japanese forces. IV. — Immimity to inhabitants. — China engages not to punish in any manner 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 in- terpretation between the Japanese and Chinese texts, such differences shall be decided 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 ratifi- cations thereof shall be exchanged at Peking within twenty-one days 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 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. Protocol In view of the insufficiency of time to eiifect a formal exchange of the ratifications of the Convention between Japan and China signed this day respecting 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 execution the several provisions of the said Convention, have, through their respective 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 undersigned, their respective Plenipotentiaries, that the said Convention has received the approval of His Majesty the Emperor of Japan and His Majesty the Emperor of China, respectively, and thereupon the said Convention in 1 Ratifications exchanged at Peking, November 29, 1895. 12 MANCHURIA : TREATIES AND AGREEMENTS all its parts shall come into operation as fully and effectually as if the ratifi- cations 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 38th year of ■Meiji, corresponding to the 32nd day of the 9th month of the 31st 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. 1, ante) ; see also the convention for the lease of the Liaotung Peninsula to Russia, March 27, 1898 (No. 4, post), and Article 5 of the treaty of peace between Russia and Japan, September 5, 1905 (No. 12, post). Hertslet (p. 369) also gives the following" translation of a Japanese proclamation dated May 10, 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 Empires 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 recommendation, 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 situation 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 Empire will be compromised by resorting to magnanimous measures, and by taking into consideration tlie general situation of affairs. "We. have therefore accepted the advice of the friendly Powers and have com- manded 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 Government respecting all arrangements for the return of the peninsular districts. The . exchange 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." NUMBER 3: SEPTEMBER 8, 1896 13 In Recueil (p. 63) 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 Min- isters 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 18, 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 Gov- ernment 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 Emperor 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) Penin- sula, and (3) not to make the conclusion of the Treaty of commerce and navigation with China a condition 6i the evacuation of the said Peninsula; and to effect such evacuation within a period of three nflonths from the date of the full payment by China of the said indemnity 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 felici- ■tate 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 knowl- edge 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. "Tokyo, October 6/18, 1895. "(Sgd.) HiTRovo." No. 3 RUSSIA (Russo-Chinese Bank)i AND CHINA Contract for the Construction and Operation of the Chinese Eastern Railway.^ — September 8, i8p6 Between the undersigned. His Excellency Shu King-chen, Minister Plenipotentiary of His Majesty the Emperor of China, at St. Petersburg, acting by virtue of an Imperial Edict, dated Kuang Hsu, 32nd 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 (Kuping Tls. 5,000,000.) to the Russo-Chinese Bank, and will participate in proportion to this payment in the profits and losses of the bank, on condi- tions set forth in a special contract. ' See Note 1 to this document, post, p. 17. " MacMurray, vol. I, p. 74, translation from the French text as printed in Sogla- shenia, p. 4. French text printed also in Customs, vol. i, p. 208; Kent, p. 311; Wang, p. 1. See Note 3 to this document, post, p. 27. 14 MANCHURIA: TREATIES AND AGREEMENTS The Chinese Government having decided upon the construction of a railway Hne, establishing direct communication between the city of Chita and the Russian South Ussuri Railway, entrusts the construction and opera- tion of this railway to the Russo-Chinese Bank upon the following con- ditions : 1. — The Russo-Chinese Bank will establish for the construction and operation 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 Russian usages in regard to railways. ' The shares of the Company can be acquired only by Chinese or Russian subjects, f The president of this company will be named by the Chinese Government, but paid by the Com- pany. ' He may have his residence in Peking. rt will be the duty of the president to see particularly to the scrupulous fulfillment 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 president (named by the Chinese Government) of the Company, in mutual agreement 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. S.^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, etcT , ^ See Note 3 to this document, post, p. 34. NUMBER 3: SEPTEMBER 8, 1896 15 The Chinese Government should, as needed, take measures to facilitate such transportation. 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.^ — 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 indi- viduals, they will be turned over to the Company either upon a single pay- ment or upon an annual rental to the proprietors, at current prices. The lands belonging to the Company >vill 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 ahsolu et exclusif de V administra- 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.^ -^ The income of the Company, all its receipts and the charges for the transportation of passengers and merchandise, telegraph, 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 ma- terial, 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 ' See Note 4 to this document, post, p. 39. ' See Note 5 to this document, post, p. 41. ' See the Agreement of October 7, 1907, in regard to the working of the Railway's telegraph lines (MacMurray, vol. i, p. 679). * 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 requesting their assent to an extension of the passport control ex- ercised by the Russian authorities within the zone of the Chinese Eastern Railway, as a temporary measure necessitated by conditions arising out of the war. See Mac- Murray, vol. 1, p. 90. 16 MANCHURIA: TREATIES AND AGREEMENTS Company 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 Customs, and cannot leave Chinese territory until after the office of the Customs shall have satisfied itself that the seals are intact; should it be established that these cars have been opened on the way without authorization, the merchandise would be confiscated. 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.^ 11. — The charges for the transportation of passengers and of mer- chandise, 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 materials. 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 what- soever of the Company, during the time allotted for the work and there- after for a further eighty years from the day on which the line is finished and traffic is in operation. 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.^ ' See the experimental regulations for the establishment of customs houses in North Manchuria, agreed upon by an exchange of notes between the Chinese and Rus- sian Governments, July 6 and 8, 1907 (No. 19, post), and the provisional regulations for the working of Chinese customs houses at the stations of Manchuria and Pogranich- naya (Suifenho), May 30, 1908 (MacMursay, vol. i, p. 651). ' See Note 6 to this document, post, p. 41. NUMBER 3 (NOTE): DECEMBER 22, 1895 17 If — in case the profit realized exceeds the dividends allowed to the shareholders — 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 possession 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 Com- pany will make to the Chinese Government a payment of five million Kuping taels (Kuping TIs. 5,000,000). Kuang Hsii, 22nd year, 8th month, 3nd day. (Signed) Shu. Berlin, August 27/September 8, "1896. RUSSO-CHINESE BANK (Signed) Rothstein. (Signed) Prince; Oukhtomsky. Note 1 The Russo-Chinese Bank was subsequently merged with the Banque du Nord under the name of the Russo-Asiatic Bank {Banque Russo-Asiatique) by a charter approved by the Russian Minister of Finance on July 30/ August 12, 1910 (Sobranie Uzakonenii i Rasporyazhenii Pravitelstva, § 719, October 2/15, 1910, No. 96, Section 1). A transla- tion of the original charter of the Russo-Chinese Bank, under date of December 10/22, 1895 (published at St. Petersburg in 1904 and certified as conforming to the Russian original by the representative of the Russian Ministry of Finance in London) is here reproduced : Charter of the Russo-Chinese Bank. — December 22, 1895 Part I. Organization and Capital of the Bank §1. In virtue of the present Charter, a Joint-Stock Company is formed in order ';o found a Bank, for transacting commercial operations in the East-Asiatic countries, un- der the name of "Russo-Chinese Bank." The Bank will transact the above operations through its branches, which will be opened in the above named countries, and through its agents. The Board of Directors of the Bank (§37) and the Managing-Directors (§34) will be domiciled in St. Petersburg where a special Russian branch will be established in order to enable the Bank to place in Russia a part of its capital or funds temporarily unemployed ; this branch will have the right to effect the transactions mentioned in Part 11, §14. Remark. The Society is founded by : Prince Hespere Oukhtomsky. Rene Brice, member of the Board of Directors of the Credit Lyonnais. State-Counsellor Jean Goldstand, Baron Rodolphe Hottinguer, Ernest Denormandie, Edouard Noetzlin, Adolphe. Rothstein, Jacques Stern. §2. The Board of Directors of the Bank has the right, in accordance with the decisions taken by the General Meetings of shareholders, which are held in St. Peters- 18 > MANCHURIA: TREATIES AND AGREEMENTS burg, and with the authorization of the Minister of Finance, to open Branches in Russia and abroad where this may be necessary. The management and the transactions of each branch will be stipulated by the Board of Directors of the Bank with the ap- proval of the General Meetings of shareholders on the exact basis of the present Char- ter. The operations of the branches of the Bank are guaranteed by the entire paid up Capital of the Bank, its reserves as well as by all its other assets. §3. The Bank is founded for an unlimited period. §4. The capital of the Bank is fixed originally at six millions Gold Roubles. This capital, formed by the issue of 48000 shares of 125 gold roubles each, may be later on increased by means of new issues of shares of the same nominal value (135 gold roubles) to be decided upon by the General Meeting of shareholders and with the authorization of the Minister of Finance. Remark 1. By the Capital of the Bank is understood the amount of money actually paid in. Remark 2. In compliance with the decision taken by General Meeting of Share- holders on the 27-th of June 1898 and with the authorization of the Minister of Finance, the capital of the Bank has been increased from the 1st of January 1899 by Rs. 2,250,000. — through the issue of 12,000 additional shares of a nominal value of Rs. 187,50 each. Remark 3. In compliance with the decision taken by the General Meeting of shareholders on the 22-nd of June 1902 and with the authorization of the Minister of Finance, the capital of the Bank has been increased by Rs. 3,750,000— through the issue of 20,000 additional shares of a nominal value of Rs. 187,50 each. §5. The founders of the Bank designated in the Remark to §1, and the first sub- scribers to the shares, shall have, during a period of thirty years to begin from the date of the sanctioning of this Charter, the right to reserve to themselves, at the price of issue which shall be fixed by the General Meeting of Shareholders with the author- ization of the Minister of Finance, the fourth part of all the shares, the issue of which may subsequently be decided upon in accordance with §8. For this purpose there shall be created, in representation of the said right. Founders Certificates to be issued in proportion of one certificate for every ten shares. The Bank shall issue in all 4800 Founders Certificates. At the expiration of thirty years to begin from the day of the foundation of the Bank, the rights, conferred by said certificates to the founders and to the first subscribers, shall cease and shall be transfered to the shareholders. The Founders Certificates do not give a right of vote and their holders have to abide with all decisions of the General Meetings of shareholders. §6. The Bank must begin its operations not later than six months after the sanction of the present Charter and only after having presented to the Minister of Finance a certificate proving the payment of 25% of the par value on each share of the original capital of 6 millions gold roubles (i. e. one million five hundred thousand gold rou- bles). In order to carry out this provision, payments made to this extent shall, as soon as effected, be deposited with the State-Bank. Concerning the 75% remaining to be called for, it is left to the decision of the Board of Directors of the Bank to fix the amount and the periods at which such payments have to be made. For this purpose the Board of Directors shall upon each occasion make the necessary publications, at least one month before the periods fixed, in the "Messager Officiel," the "Gazette de Mos- cou" and the "Messager des Finances, de ITndustrie & du Commerce," as also in other Russian and foreign newspapers, chosen by the Board. The capital has to be paid in within two years after the opening of the Bank. §7. After payment of the first 25% of the par value of the shares, the founders shall deliver to the subscribers temporary certificates upon which the Board shall anno- tate the subsequent payments. Upon payment of the last instalment, the temporary cer- tificates shall be exchanged for shares. §8. The General Meeting of shareholders, in deciding, according to §4, the issue of new shares, not below the par value, for the purpose of increasing the capital of the Bank, shall stipulate every time the number of shares intended to be issued and their mode of allotment among shareholders, with exception of those shares which, according to §5, have been taken by the holders of Founders Certificates. The General Meeting shall also determine the conditions of subscription for the remaining shares not disposed of and shall fix the amounts and the dates of payments to be made, pro- vided however, that all these payments are made within one year. NUMBER 3 (NOTE) : DECEMBER 22, 189S 19 §9. The temporary certificates shall be delivered to the first subscribers who are responsible for their full payment. They may be transfered to third parties, but only on condition that their transfer shall be made with the consent of the Board of Di- rectors and that the transfer be registered in the books of the Bank. The consent given by the Board to the transfer of the temporary certificates, relieves the subscriber or the person making such transfer, from the obligation of effecting the payments still remaining due upon the said certificates. The temporary certificates, upon which due payments have not been made and duly annotated, can neither be transferred nor ceded to third parties. §10. If due installments are not paid by the subscribers within the period fixed and published by the Board, they will be liable to pay to the Bank 5% per annum as interest for each day's delay, besides a fine of 5%. The numbers of the certificates, upon which payment shall not have been made at the latest within one month after the fixed period, shall be published in the "Messager Officiel," the "Gazette de Moscou," the "Messager des Finances, de ITndustrie & du Commerce" and in other Russian and for- eign newspapers designated by the Board of Directors ; if within two weeks after this publication the payment shall not have been made, it will be the duty of the Bank to sell the certificates bearing such numbers. Such certificates, after the expiration of all terms of payments, shall then be declared cancelled and to the new purchasers shall be delivered duplicates bearing the same numbers, with inscription thereon stating that these certificates are delivered instead of those upon which the payments have not been made at the fixed terms. The proceeds of the sale, after deducting expenses, interest and fine, shall be applied to the payment of the instalment not made in due time by the de- faulting owners of these certificates ; any balance remaining shall be repaid to them. Remark. The regulations established by §9 & 10, shall be inserted in the text of the temporary certificates. §11. The shares of the Bank, can be registered or to bearer, as may be desired by the shareholders. All the shares must be detached from a book containing a stub, in which the stub shall remain; they shall be numbered and shall bear the signatures of three members of the Board and of the accountant, as likewise the seal of the Bank. Each share shall have a sheet of coupons for ten years. On expiration of this term, will be delivered to the holder of the shares a new sheet of coupons. §12. The transfer of shares issued to bearer may be made without endorsement and the Bank shall always recognize as owner of the share the person having it in his possession. The transfer of registered shares shall be made by notification given to the Board and upon presentation of the shares, on which the Board shall certify the transfer to the new owner. §13, In case of the death of a shareholder, his rights pass to his heirs by law or by will ; but in no case can a share be divided. In case of the loss of a share to bearer, publications shall be inserted during three years in Russian and foreign newspapers, at the expense of the person who has presented to the Board of Directors satisfactory proofs of ownership of the lost shares. These publications shall be made at the same time as those announcing the payment of dividends upon the shares of the Bank. If within three years, nobody shall claim the lost shares, these latter shall be replaced by duplicates which shall remain deposited with the Bank for five years more. Upon the expiration of this latter period, final publication shall be made and six months after this publication, the duplicates shall be delivered to the person who has made the dec- laration of ownership. Part II. Opbeations of the Bank §14. The object of the Russo-Chinese Bank is exclusively to develop the commer- cial relations with the East-Asiatic countries. The Bank will have the right to transact in these countries through its branches and with the authorization of the governments of the respective countries, the following operations : 1) The discount and re-discount of bills of exchange and other commercial papers maturing within one year. , , . , , , 2) The purchase and the sale, for its own account and for the account of private persons and commercial firms, of goods and stocks of every description, as shares, bonds, etc. 20 MANCHURIA : TREATIES AND AGREEMENTS Remark. The total amount of goods or securities not guaranteed by European States of prime order and purchased by the Bank for its own account, shall not exceed one quarter of the paid up capital of the Bank. 3) The purchase and the sale, for its own account or on commission for account of third parties, of precious metals in bullion or coin, of drafts, of transfers and of credits of every kind. 4) The opening of subscriptions for public loans and for issues of bonds and stocks. 5) The forwarding by sea, river and land of goods & the acceptance of goods as collateral for advances made, the issue of warrants, in compliance with the conditions stated in 11-b) section 1 of the present article. 6) The acceptance of bills of exchange with or without guarantee, according to the rules specified in the remark to 11-a) section 1 of the present article. 7) The opening of accounts for the deposit of money for limited or unlimited time as well as of simple current accounts. 8) The deposits and safe keeping of all kinds of securities and other valuables against a fixed commission. 9) The issue of bank notes in Taels, Dollars, Pounds Sterling and in other cur- rency of the country, for an amount not to exceed the paid up capital and the reserves of the Bank. The said banknotes shall be issued to bearer and to be redeemed on demand by the Bank or by those of its branches which have issued same. Remark. The Bank must always have in reserve, an amount in cash not less than one third of the amount of banknotes in circulation. 10) The collection of duties in the Empire of China, and the transactions relating to the State treasury of the respective place, the coinage, with the authorization of the Chmese Government, of the country's money, the payment of the interest on loans, con- cluded by the Chinese Government, the acquisition of concessions for the construction of railways within the boundaries of China and the establishment of telegraph lines. 11) The loans and the opening of credits for a term not exceeding one year : a) against the deposit of Government securities and parts, shares and bonds of private corporations at a valuation not exceeding 90% of their market value. Remark. In special cases, the Bank shall have the right to open to its custo- mers, credits without special guarantee, but upon condition that the total sum of such credits shall not exceed one half of the capital (actually paid in) and of the reserve capital of the Bank, and that the opened credits shall not exceed a period of 4 months, at the expiration of which the Bank must, if the advances made are not refunded or guaranteed by collateral in conformity with the present Charter begin proceedings against the debtors to enforce payment. The members of the Board or the managers of the branches of the Bank, to whom the Board of Directors shall have given the right in question, are responsible for the adoption of measures to carry this into effect. The Board has the right to extend in certain cases the said credits without special guarantee, for a term not exceeding one year. The rules, under which these extensions shall be granted, have to be submitted to the approval of the Minister of Finance of Russia. b) against bills of lading, warrants, receipts of forwarding companies, of railroad companies and of steamship societies, for goods not perishable or subject to easy de- preciation, up to an amount not exceeding 80% of the value of these goods, upon condi- tion that they should be insured for at least 10% above the amount of the loan and for a term exceeding at least one month the term of the loan, and on condition that the poli- cies will be deposited with the Bank. Remark. Advances against tea can be made up to 90% of its value. c) against deposit of precious metals not above their market value. d) against deposits of goods not perishable or subject to easy depreciation, to an amount not exceeding 80% of their value, upon condition that they be stored in fire- proof and perfectly safe warehouses, that they be insured against fire for at least 10% NUMBER 3 (NOTE) : DECEMBER 22, 189S 21 above the amount of the loan demanded and for a period exceeding at least one month the term of the loan, that the policies be deposited with the Bank and that the rent of the warehouse be paid for a term which shall exceed by at least one month the period of the loan against the goods. 12) The insurance of goods against fire and accidents. 13) The purchase and the sale of real estate for account of third parties. Remark. The purchase and sale of real estate in China are only allowed in the places open to foreign trade. 14) Every other credit-operation not mentioned in the preceding sections of the present article and in conformity with the customs and laws of the respective coun- tries but only upon unanimous decision of the Board of Directors with the approval of the Minister of Finance of Russia. II. Within the limits of the territory of the Russian Empire, the Bank has only the right of transacting the following operations : 1) The discount of Russian and foreign drafts and all other commercial papers for a term not exceeding nine months, as well as the rediscount of drafts and papers discounted by the Bank and endorsed by the Bank. 2) The purchase and sale for account of third parties and for its own account of all kinds of securities, issued or guaranteed by the Government and of mortgage se- curities ; the purchase and sale of securities issued or guaranteed by foreign countries. For other securities than those issued by the french, english or german governments, a preliminary authorization from the Minister of Finance must in each case be obtained. 3) The collection of bills of exchange and other commercial papers or obligations matured as well as stocks remitted to the Bank. 4) Payments for account of third parties or companies, in the places in which there are branches or representatives of the Bank, upon condition that these payments be secured in advance either by the balance of current-account with the Bank of the parties or Companies, at whose orders payments will be made, or by deposits of collateral in safe and good securities. 5) The transfer of money in all cities of Russia or of foreign countries in which there are branches or representatives of the Bank. 6) The purchase and the sale for its own account or by order of third parties of precious metals in bullion or in coin, of drafts and transfers upon the interior and upon foreign countries, of certificates issued by mining departments for the receipt of gold in accordance with the mining regulations. 7) The issue of drafts, of transfers and of credits upon all parts of Russia and foreign countries. 8) The opening of subscriptions for public loans and for emissions of bonds and stocks, upon condition that they be approved every time by the Minister of Finance. 9) To give acceptance to drafts issued, on the Bank by its customers, against or without collateral. 10) The forwarding by sea, river and land of goods and the acceptance of goods as collateral for advances, with issue of warrants, but exclusively for business trans- actions relating to Eastern Asia. 11) The purchase and sale of goods, if that purchase and sale derives from the commercial operations in Eastern Asia. Remark. The branches of the Bank in Vladivostok or in other places of Eastern Siberia will be permitted to enlarge the scope of their operations, which will be stipulated by the Minister of Finance at the time when the Board of Direc- tors shajl demand the authorization to open these branches. III. The branches of the Bank established in European countries, Russia excepted, may carry on the operations authorized by the laws of the respective countries. §15. The Bank may discount drafts, bills of exchange and all other commercial paper payable at definite terms bearing at least two signatures. The Bank may dis- count drafts bearing one signature if they are secured by deposits of stocks, precious metals or goods as collateral according to clause 11, section I of. §14. §16. The Bank may deliver, against sums deposited with it, certificates of deposit bearing interest or without any interest; these certificates shall be exclusively to order and transferable to third parties only by endorsement and such transfers have to be registered in the books of the Bank. 22 ' MANCHURIA: TREATIES AND AGREEMENTS §17. The certificates of deposit of the Bank for sums deposited with it, as well as its shares may be accepted in Russia as collateral by all institutions of the State, at the price which shall be fixed by the Minister of Finance. §18. If the borrower should not pay at maturity the amount due by him to the Bank for loans or credits secured by deposits of goods, stocks, etc., as collateral, this collateral shall be immediately sold, for account of the debtor, at public auction, with- out any notification to the debtor and without any judicial procedure. Such sale does not deprive the Bank of the right to bring proceedings for the payment of the balance remaining uncovered in accordance with the existing laws. §19. The sums deposited with the Bank or placed there in account-current cannot be arrested or sequestrated except by due process of law. In such cases, the certifi- cates of deposit, or the accountbooks delivered by the Bank must be presented to the Bank. §20. The metals and other goods, the, bills of lading, the receipts of forwarding companies, of railroad companies & of steamship societies, the stocks of every kind and other effects given to the Bank as security for advances, cannot be arrested nor se- questrated for the settlement of private or Government claims, until the Bank shall first reimburse itself for the sums advanced against these deposits, the interest thereon, fines and other expenses. The sale of collateral for the recovery of amounts due to the Bank cannot, there- fore, be stopped by any judicial measure. §21. The total amount of the sums received by the Bank on deposit or in account- current, of commercial paper re-discounted, notes emitted and of all the other liabilities contracted by it, shall in no case exceed ten times the paid up capital of the Bank and its reserve. §22. The credit opened for each customer of the Bank, shall not exceed a sum equal to one tenth part of the paid up capital of the Bank. The amount of this credit may be increased upon a decision of the Board of Directors approved by the Minister of Finance of Russia. §23. The cash reserves of the Bank together with its deposits on current account with other Banks shall not be less than 10% of the liabilities of the Bank. These re- serves may be used in urgent cases, solely for the purpose of meeting the liabilities contracted by the Bank, upon condition, however, that the Bank shall take measures at once for restricting its loans and operations of discount. §24. The Bank is prohibited to purchase its own shares and grant loans upon them. §25. The Bank is only allowed to purchase such real estate as may be necessary for the use of the Bank or of its branches and for the construction of warehouses. Part III. Board of Directors §26. The management of the Bank shall be entrusted to the Board of Directors. §27. The Board of Directors of the Bank shall be composed of eleven members at most, elected by the General Meetings of shareholders, and their nomination shall be confirmed by the Minister of Finance. Remark. F'or the first time, the President and the members of the Board shall be elected by the founders of the Bank. §28. Any person elected a member of the Board must, upon entering the duties of his office, own at least 100 shares of the Bank, which shall be in custody of the Board and cannot be withdrawn until the General Meetings of shareholders shall have ap- proved the account of operations carried on during the whole period during which he acted as a member of the Board. §29. The members of the Board elected by the General Meetings shall remain in office for three years; at the expiration of this term and during the three following years, three members shall retire each year, either by agreement, or chosen by lot, and they shall be replaced by way of election by other members. Afterwards, three mem- bers shall retire each year, according to the seniority of their election. Remark. The retiring members can be re-elected. §30. After its formation, the Board shall elect from among its members, a presi- dent, who, in case of absence, shall be replaced by another member of the Board also NUMBER 3 (NOTE) : DECEMBER 22, 1895 23 by election. After each Annual General Meeting the Board proceeds to the election of a president. §31. In case a member of the Board should resign before the expiration of the term for which he was elected, in his stead will be elected, at the next General Meeting of shareholders, a new member upon the proposition of the Board, for the unexpired term of office of the retiring member. If, in consequence of resignation or temporary absence of its members, the Board should be reduced to less than four members, it has to designate a temporary member until the next General Meeting of shareholders or until the return of the absentee. §32. In order to be valid, the decisions of the Board must be taken by three mem- bers at least, personally present or participating, in the deliberations by telegraphic or postal communication. The decisions are carried by simple majority of votes. In case of a tie, the vote of the president is decisive. §33. The duties of the Board include : a) the keeping of the registry of the shares; b) the management of all the business of the Bank; c) the appointment of Managing-Directors and Vice-Directors of the Head Of- fice, of Directors of the branches of the Bank and the nomination of representatives ; d) the correspondence with the authorities and functionaries, according to the cus- toms and the laws of the respective countries for all matters which do not concern the current operations of the Bank; e) the presentation of the report, at the end of each year, on the operations and position of affairs of the Bank, and of the budget of expenses for the next year. f) the examination of the proper means of developing the operations of the Bank; g) the general supervision of the business of the Bank; the revision of the oper- ations of the managing Directors by members of the Board designated each time spe- cially, or by other persons authorised by the Board; h) the examination of all questions concerning business matters which do not enter into the current operations of the Bank; i) the preliminary examination of all questions which are to be submitted to the General Meeting of shareholders ; j) the examination of all particularly important questions which may be submitted by Directors to the decision of the Board; k) the designation of the persons who are to sign all engagements contracted by the Bank and the publication of the decisions in newspapers of St. Petersburg, Mos- cow and abroad. §34. The Board of Directors may authorize one or more of its members to con- duct the business of the Bank in the capacity of Managing-Director. The duties of Managing-Directors of the Bank or of members of the Board designated for this pur- pose, include : a) the conduct of the operations of the Bank upon the basis established by the Board. To that effect, the Managing-Directors receive detailed instructions from the Board ; b) the appointment and the discharge of clerks of the Bank and the fixing of their salaries within the limits of the budget established by the Board; c) the investment, according to the Charter, of the free resources of the Bank ; d) the fixing of the rate of interest and of commission for all the operations of the Bank; e) the relations with the local authorities for all the business of the Bank, accord- ing to the customs and laws or the respective countries. §35. The Board, in its capacity of representative of the Bank, will act, under all circumstances, in the name of the latter, without special power of attorney, but no member of the Board shall act separately in the name of the Bank except by virtue of a special power from the Board. Remark. The powers must be signed by at least 2 members of the Board. §36. The members of the Board, the Managing-Directors and the Vice-Directors, the Directors of Branches as well as all other persons engaged in the service of the Bank, are bared [sic] from discounting their notes in the Bank. §37. The President and the Members of the Board, as also the Managing-Direc- tors, are not personally responsible for the liabilities of the Bank; but they are re- sponsible, according to the general laws, if they exceed their power or if the Bank suffers losses through their illegal acts or negligence. 24 MANCHURIA: TREATIES AND AGREEMENTS §38. The president of the Board, the members of the Board selected to perform the duties of Managing-Directors and the other members of the Board shall receive, for their services a remuneration to be determined by the General Meeting of Shareholders. §39. The members of the Board as also all the clerks, must keep secret everything regarding the business of the Bank, the matters of commerce and the private accounts, which are entrusted to them. §40. The Bank shall have a seal, which shall be approved by the Minister of Finance of Russia. Part IV. Gbnerai Meetings of Shareholders §41. All persons possessing shares of the Bank, have the right to assist at the Gen- eral Meetings, but the right of vote pertains only to the shareholders who have at least 25 shares, those who possess 75 shares have two votes, those who possess 150 shares have three, those who possess 250 shares have four, and above 250 shares each 100 shares give the right to one vote. In order to have the right to assist at the General Meetings, the holders of shares to bearer must present their shares to the Board not later than one month before the day fixed for the meeting. The holders of registered shares are not obliged to present them, but only those shall be admitted to the meeting whose shares have been inscribed in the registers of the Board not later than one month before the General Meeting. §42. Shareholders possessing less than 25 shares may unite their shares by collec- tive proxy in order to have the right to one or more votes upon the basis fixed by §41. The shareholder who has in this way obtained the right to vote by the uniting of shares, may receive proxies to vote in the place of other shareholders who are entitled to vote. §43. An absent shareholder having the right to vote may transfer his right to an- other voting shareholder ; however, no person can have more than two proxies and, in no event more than 20 votes both in his own name and as representing others. Remark. The proxies for the right of voting shall be in the form of a letter which must be presented to the Board at least 3 days before the General Meeting. §44. Upon the basis of §41, 43 & 43 there will be drawn up before each General Meeting a list of shareholders having the right to vote; this list shall be printed and distributed among the shareholders upon their entering the meeting; two of the share- holders present will be invited to verify this list and the votes present. §45. The General Meetings are Ordinary or Extraordinary. The first shall take place annually in June at the latest, the latter shall be called by the Board of Directors of the Bank at its discretion in order to deliberate upon questions which may require an immediate decision. Remark. If shareholders possessing togethe;r fifty votes demand to call an extraordinary General Meeting, it will be the duty of the Board to comply to such demand. §46. The call for a General Meeting shall be made by the Board by means of pub- lications in the "Messager Officiel," the "Messager des Finances, de ITndustrie et du Commerce," in the "Gazette de Moscou" and in other Russian and foreign newspapers, selected by the Board, at least six weeks before the day ffxed for the General Meeting. This publication shall indicate the questions which will be submitted to the deliberation of the shareholders. §47. The General Meeting is considered as legally constituted if there are present at least 40 shareholders having the right to vote and possessing together at least one fifth of the shares issued by the Bank. — In a contrary case, a second meeting must be called, not sooner however than two weeks after the first. The decision of the share- holders present at this second meeting shall be final, whatever may be their number and the number of shares which they represent, but, only upon questions which were sub- mitted to the first meeting, except in the cases provided for in §49. §48. The General Meetings shall be presided by a shareholder, chosen by the meet- ing from the shareholders present at the meeting and no business can be transacted before the election of such president. Until his election however the meeting is pre- sided by the president of the Board or a person acting in his name. NUMBER 3 (NOTE) : DECEMBER 22, 1895 25 §49. In order to be valid, the decisions of the General Meeting must be adopted by simple majority of votes. The decisions relative to the questions specified in points 4, 5, & 6 of §51 must be adopted by a majority of two thirds of the votes ; for those rela- tive to points 5 & 6 of §51, it is necessary moreover that the shareholders present at the meeting should have at least either in their own names or as attorneys, one half of all the shares of the Bank. If these questions cannot be decided in the convened General Meeting nor in a subsequent General Meeting, a third General Meeting shall be con- vened, whose decision shall be valid without any regard to the number of shareholders present or of votes represented. §50. The questions submitted to the General Meeting of shareholders shall be ex- amined beforehand by the Board. In case any shareholder should desire to make a proposition or a complaint, even if this latter be directed against the Board, he shall have to present it to the Board. The Board may accept the proposition or reject it. If however the proposition or complaint is presented at least seven days before the Gen- eral Meeting and is signed by shareholders possessing together fifty votes, it must be submitted by the Board with its conclusion thereon to the decision of the General Meeting. §51. The following matters are exclusively within the competence of the General Meeting : 1) the election of the members of the Board, 2) the final approval of the balance sheet and of the annual account rendered. Remark. In order to audit the account rendered and to examine the conduct of operations by the Board of Directors of the Bank, the General Meeting may elect a special commission. 3) The decisions regarding the establishment of Branches of the Bank. 4) The decisions regarding the modifications of the Charter or a complement to the Charter. 5) The decisions regarding the increase of the Capital of the Bank, in accordance with §8. 6) The decisions regarding the closing of the Bank and the winding up of its business. §52. The General Meeting establishes itself the order in which all elections, to which it must proceed, shall take place. §53. 4^ General Meeting may deliberate several days, if necessary, but not more than one week. The Meeting itself also fixes the hours of the sessions. §54. The decisions of the General Meeting rendered according to this Charter shall be obligatory for all the shareholders, whether assenting or not assenting, present or absent. Part V. Balance Sheet §55. The business year of the Bank shall begin on the 1st of January and end on -the 31st of December, according to the Russian style. Remark. In case the Bank should be opened after July first, the accounts of that year will be marged with the accounts of the following year. §56. The balance sheet and the annual report rendered shall be printed at least two weeks before the day fixed for the General Meeting and delivered by the Board of Di- rectors to shareholders who may wish to examine them before the meeting. After the General Meeting, 3 copies of the balance sheet and of the report shall be presented to the Mmister of Finance together with the minutes of the proceedings of the meeting. §57. The balance sheet and the annual report rendered shall be published in the "Messager Officiel," the "Messager des Finances de I'lndustrie et du Commerce" and in three newspapers of St. Petersburg, Moscow and Paris. Remark: The annual reports rendered as well as the monthly balance sheets containing all the operations of the Bank and of its branches, must be submitted to the Ministry of Finance, in three copies. The publication of said reports ren- dered and balance sheet in the newspapers above mentioned, may with the author- 26 MANCHURIA : TREATIES AND AGREEMENTS ization of the Minister of Finance, be made in abbreviated form, indicating only the condition of certain principal accounts, §58. In the annual balance sheet doubtful debts shall be valued approximatively ; Government and other securities shall be valued not above the price at vjrhich they were purchased. If however on the day, when the balance sheet is made, the market price of some securities is lower, such securities have to be valued at the market price. Part VI. Distribution of Profits §59. From the annual net profits computed after deduction of all expenses and losses, there shall be deducted a sum fixed by the Board to be employed for the re- muneration of Managing-Directors and of Vice-Directors of the Bank, as also of the Directors and Vice-Directors of its branches. Besides, at least 10% of the net profits shall be set aside for the ordinary reserve of the Bank (§61). The balance of the net profits, in case it does not exceed 6% of the capital, shall be distributed among the shareholders as dividend. If the balance exceeds 6%, the surplus shall be employed as follows : 15% to the Members of the Board, 5% to the clerks of the Bank, (distributed at the discretion of the Board), and the remaining 80% as dividend to shareholders, or assigned to the formation of a special reserve, if the General Meeting should find it desirable. §60. The payment of dividend is made after preliminary publication and against de- livery of coupons. Dividends, unclaimed during ten years since they are due, shall be- come the property of the Bank. No interest will be allowed on unclaimed dividends. Remark. The part of the net profits obtained upon the operations of the Bank in foreign countries by its branches s^all not be subject to the taxes imposed upon the net profits of joint-stock companies in Russia. Part VII. Ordinary and Special Reserve Capitai, §61. The ordinary reserve capital of the Bank, destinated to cover possible losses resulting from operations, is formed by the sums retained each year for this purpose (§59), as well as by interests thereon. The formation of this capital shall continue until it reaches an amount equal to the half of the capital of the Bank. To this effect there shall b& set aside 10% of the annual net profit until the ordinary reserve capital attains one third of the amount of the capital; when the reserve capital shall have reached this figure, there shall only be set aside 2% of the annual net profits until this ordinary reserve capital shall have attained the maximum figure above set forth. The ordinary reserve capital shall be invested in Russian State's securities or in securities guaranteed by the Russian Government. When the ordinary reserve capital shall amount to a sum equal to l/3rd at least of the capital, the General Meeting of shareholders may cease adding thereto the interest on it. If however it should become necessary in any year to use a part of the ordinary reserve capital in order to cover losses of the Bank, there shall be resumed in the following years the deductions from the net profits of the Bank to repay to the reserve capital the sums drawn therefrom and also the interest upon the said capital, until it shall reach again the prescribed sum. §63. The special reserve capital is intended to cover losses which might result from operations and to complete, in case of need, a dividend of 6% to be distributed to the shareholders. After the exhaustion of the special reserve capital, the losses of the Bank shall be covered from the ordinary reserve capital. Part VIII. Closing of the Operations of the Bank §63. The Bank may cease operations at any time, by virtue of decision of the Gen- eral Meeting held in accordance with §49 of the present Charter. In case the losses of the Bank, not covered by its reserve capitals, should attain a sum equal to a quarter of the capital, the Bank shall be obliged to stop its operations and go into liquidation, unless the shareholders pay in the capital up to former figures. §64. In case of liquidations of the business of the Bank, the General Meeting shall elect one or several liquidators and shall fix the order of procedure of the liquidation, in conformity with the laws. NUMBER 3 (NOTE) : DECEMBER 22, 1895 27 §65. With the nomination of the hquidators shall lapse the rights of the Board of Directors; the rights of the General Meeting shall remain in vigour during the liquida- tion as before it. It shall have the right to audit the accounts of the liquidators and to grant release. Part IX. Generai, Provisions §66. All misunderstandings arising in the interpretation of the present Charter, shall be finally decided by the Minister of Finance, after hearing the report thereon of the Board of Directors. §67. In all cases not provided for in the present Charter, the Bank shall act in ac- cordance with the Russian laws now in force, or to be enacted, concerning joint-stock companies. §68. The Branches and agencies of the Bank situated in Asia are placed under the protection of the representatives of the Russian Government and submitted to the con- sular jurisdiction in the countries where this jurisdiction exists by virtue of treaties. SAN-FRANCISCO AND CALCUTTA BRANCHES KeGUI,ATI0NS Confirmed by the Minister of Finance on the 10th of November 1903 The branches at San-F'rancisco and at Calcutta may, in accordance with section III of §14 of the Charter, carry on the operations authorized by the laws of their respec- tive countries. At page 185 of Shina Kankei Tokushu Joyaku Isan is given the Japanese transla- tion 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. Ilie text, apparently translated from a Chinese original, is obscure; but an approximate rendering of it may be found in MacMurray, vol. i, p. 78. 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. 4, post) ; 2. Additional agreement between Russia and China, defining the boundaries of the leased and neutralized territory in the Liaotung Peninsula, May 7, 1898 (No. 5, post) ; 3. Agreement between the Chinese Eastern Railway Company and the Chinese Government for the Southern Manchurian branch of the railway, July 6, 1898 (No. C, post) ; 4. Exchange of notes between Great Britain and Russia with regard to their re- spective railway interests in China, April 28, 1899 (No. 7, post) ; 5. Declaration of the Chinese Government in regard to railways north and north- east of Peking, June 1, 1899 (No. 8, post) ; 6. Agreement between Russia and China with regard to Manchuria, April 8, 1902 (No. 11, post) ; 7. Treaty of peace between Japan and Russia, September 5, 1905 (No. 12, post) ; 8. Treaty and additional agreement between Japan and China relating to Man- churia, December 22, 1905 (No. 13, post) ; 9. Convention and protocol relating to Japanese and Russian railway connections in Manchuria, June 13, 1907 (No. 18, post) ; 10. Political convention between Japan and Russia, July 30, 1907 (No. 20, post) ; 11. Political convention between Japan and Russia, July 4, 1910 (No. 30, post) ; 12. Agreement between Great Britain and Russia respecting the inclusion of British subjects within the scheme of municipal administration and taxation established in the area of the Chinese Eastern Railway, December 3, 1914 (No. 34, post) ; and 28 MANCHURIA : TREATIES AND AGREEMENTS 13. Treaty between Japan and Russia in regard to cooperation in the Far East, July 3, 1916 (No. 38, post) ; 14. Supplementary contract between Chinese Government and Russo-Asiatic Bank, October 2, 1920 (No. 45, post). It was long persistently rumored that the concession for the Chinese Eastern Rail- way was a first-fruit of a secret political agreement between China and Russia, which attained notoriety under the name of "The Cassini Convention." In its issue of Octo- ber 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 re- production in full, as follows : The Cassini Convention 38th 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 littters were actually standing in the courts of the Russian Legation, but the Minister would not go until he could take with him 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 ieen 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 communi- cations between 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 settlement 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 Minister 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 facilitat- ing 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 completion, China consents to allow Russia to prolong her railway into Chinese terri- tories (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 (6) from a railway station of some city in Siberia to the Chinese town of Alyun 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 €nd 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 inconvenient to build this road she shall allow Russia to provide the funds to build NUMBER 3 (NOTE) : 1896 29 the railway from the city of Kirin, on behalf of China, the redemption of which road shall be permissible 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 buih by China beginning from Shanhaikuan, in Fengtien, to Newch\yang, to Kaiping, to Chinchou, to Lushunk'ou [Port Arthur], and to Talienwan, and their dependencies, shall follow the Russian Railway regulations in order to facil- itate the commercial intercourse between the respective Empires. "5. — With reference to the railways to be built by Russia into Chinese terri- tory, the routes along which the said roads shall pass must be protected, as usual, by the local civil and mihtary 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, 3nd moon [30th February 1863 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 mines therein mentioned; but before doing so they shall be required iirst 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 certain battalions of foreign-drilled troops {Lienchun'} in the Three Eastern Provinces, yet the greater 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 organization 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 accordance with those obtaining in the Liangkiang provinces in regard to the German military 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 pro- vince 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 en- croach upon them. China,. on her part, also binds herself never to cede them to an- other country ; but, if in future the exigencies of the case require it and Russia should 30 MANCHURIA: TREATIES AND AGREEMENTS find herself suddenly involved 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 raiUtary 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 exploita- tion 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 Rus- sian 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 Imperial 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. "It has, furthermore, been agreed upon between the respective Plenipotentiaries of the High Contracting Powers to make this Convention out in 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, further- more, 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 pres- ent. 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 Vladivo- stock. 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 "Manchuj-ia — 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 Rus- sian 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, NUMBER 3 (NOTE) : MAY, 1896 31 and to assist each other as much as possible for the victualHng 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 to Russian warships, which shall find there on the part of the- Chinese authorities all the assistance of wjiich they may stand in need. "Article IV. — In order to facilitate the access of the Russian land troops to the menaced points, and to insure their means of subsistence, the Chinese Government consents to the construction of a railway line across the Chinese provinces of the Amour [i. e., the HeilungkiangJ 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 territory nor for any infringement of the rights of sover- feignty of his Majesty 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 con- tract stipulated in Article IV, shall have been confirmed by his Majesty 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 ade- quately confirmed by the following extract translated from Ma mission en Chine: i8gs- i8<>7 (Paris, Plon-Nourrit, J.918), by M. 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 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 English translation of this text was published fif- teen 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 (Articl'e 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 con- cluded at St. Petersburg in the month of May, 1896, between Li Hung Chang and Prince Lobanofif; 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 32 MANCHURIA : TREATIES AND AGREEMENTS 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 1'918, the rhihtary 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 Government 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 prevented 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 expeditionary 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 March 25, 1918 (MacMurray, vol. n^ p. 1407), had taken possession of the Chinese Eastern Rail- way, 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 American Government offered the suggestion that, for the purpose of more efficient technical management, 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 Gov- ernments 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 agree- ment 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 Rail- ways in the zone in which the Allied military Forces 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. "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 military forces in Siberia, for the purpose of administering technical and economic management 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. "3. — 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 NUMBER 3 (NOTE) : JANUARY 9, 1919 33' preceditig clause. He may appoint assistants and. inspectors in the service of the Board, chosen from among the nationals 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 staff 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 : "Memorandum "American Embassy, Tokyo. '"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 sub- mited 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, Rus- sia, the United States, leaving question of Czecho-Slovaks to be discussed. "Third : That each of the above named Governments shall select one technical railway 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 reference 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 op- eration 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 neces- sary 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 distinguished from. any political or territorial rights or spheres of interest, was later submitted to the other Governments concerned, and accepted by them. The system of technical 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 Rail- way 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. 34 MANCHURIA: 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, end from Guberovo to Habarovsk; Amur Railway, entire; and Trans-Baikal Railway, from Manchuli (inclusive) to Verkhneudinsk (exclu- sive). 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. & P. 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 con- cluded 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 south- em 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 37th 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 line. "Obligation towards the Russian Government. — § 3. In recognition that the enterprise 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. NUMBER 3 (NOTE) : DECEMBER 16, 1896 35 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; "(fc) The traffic on the Chinese Eastern line must be maintained coraformably with the degree of traffic on the Russian railway lines adjoining the Chinese line; "(c) The trains of all descriptions runmng between the Russian Trans-Baikal and Ussuri lines shall be received by the Chinese Eastern Railway and dispatched to their destination in full complement without delay; "(rf) 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 ; "(?) The Chinese Eastern Railway is bound to establish and maintain a telegraph along the whole extent of the Une and to connect it with the telegraph-wire of the Russian adjoining railways, and to receive and dispatch without delay through tele- grams sent from one frontier station of the line to another, as also telegrams sent from Russia to China, and conversely; "{f) Should, with the development of traffic on the Chinese Eastern Railway, its technical organization prove insufficient for satisfying the requirements of a regular and uninterrupted passenger and goods traffic, the Chinese Eastern Railway shall immedi- ately, 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 sub- mit 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 Management 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 trans- mission 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 communica- tion 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 ; "(A) 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 carriage 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 payment 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 Con- cession (§ 2) the following privileges granted to the railway by the Imperial Chinese Government shall remain in force: "(o) Passengers' luggage, as also goods, carried in transit from one Russian sta- tion shall not be liable to any Chinese customs duties, and shall be exempt from all internal Chinese dues and taxes ; 36 MANCHURIA: TREATIES AND AGREEMENTS "(6) The rates for the carriage of passengers and goods, for telegrams, &c., shall be free from all Chinese taxes and dues; "(e) 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 Company shall not be 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 Termina- tion of the Work. — §5. The breadth of the railway track must be the same as that of the Russian lines (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 villages, must as far as possible, be left aside of the railway. "When effecting the connection, in 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 building 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 supplementary carriage rates, shall be determined by the Company itself, within the lirnits 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 Railway 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 conveyance, 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 Government has undertaken to adopt measures for securing the safety of the rail- way 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 appurtenances 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 calcu- lated on the basis of estimates framed when the survey of the line was carried out. The foundation capital shall be charged with — "(o) 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. NUMBER 3 (NOTE) : DECEMBER 16, 1896 37 "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 re- . maining 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. — §13. 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 per- mission of the Russian Minister of Finances, under 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 : "(o) 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; "(&) 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 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 Management 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. "Ti\,e 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, supposing 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; "(b) 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 38 MANCHURIA : TREATIES AND AGREEMENTS 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. — §15. The net revenue of the Company shall be the remainder of the gross receipts, after deduction of working expenses. "Under these expenses are classed: "(o) General outlays, including assignments towards pension and relief funds, if such be established on the line ; "(6) 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. "(rf) Outlays for the maintenance, repair and renewal of the permanent way, works of construction, buildings, rolling-stock, and other appurtenances of the rail- way ; "(?) 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 Gov- ernment in Respect of these Additional Payments. — §16. Should the gross re- ceipts of the railway 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 Com- pany 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. . "[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 apponited 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. "§ 31. 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 NUMBER 3 (NOTE) : AUGUST 2, 1901 39 latter, after the expiration of eighty years of possession of the railway by the Com pany, enters into possession of it and its appurtenances. "Tlie 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 shareholders. "Any money that may remain owing by the Company to the Russian Govern- ment 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 Expira- tion 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 out- lays 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 be- fore 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 post, p. 50, as an annex to the agreement concerning the Southern Manchurian Branch of the Chinese Eastern Railway, July 6, 1898 (No. 6, post). Note 4 See in this connection the agreements of July 5/18, 1901 (No. 10, post) and January 1/14, 1903 (MacMureay, vol. I, p. 321), 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 Ukaz to 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 enterprises 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 Gov- ernment 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 be- tween 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. "Having studied and approved the proposal 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 ex- ploitation of the Chinese Eastern Railway, in matters which are within the com- petence 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. "3 To define as follows the jurisdiction of the judicial institutions mentioned in §1: 40 MANCHURIA: TREATIES AND AGREEMENTS "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 Rus- sians, and in civil matters, where both sides, plaintiff and defendant, are Russian sub- jects : 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 Tem- porary Regulatons 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 For- eign Affairs stationed in Manchuria, or by the Russian Consul in Newchang 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 insti- tutions, 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 institute 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 mainten- ance, rights and privileges established by the Temporary Regulations for the Ad- ministration 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 neces- sary 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 payment of the said sum, to impose upon the said Company the obliga- tion : (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 ex- penses 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 [Re- lating to suits lay or against Governmental institutions. — Editor.] ; Volume XVI, Chapter I, Collection of Laws, edition of 1892), and with the application of the pro- visions 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 provisions established in Articles 1066-1133 of the Judicial Regulations and 1318- 1330 of the 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). NUMBER 4: MARCH 27, 1898 41 "11. — To put the above regulations into force at a time to be determined by the Ministers of Justice and Finance. "13. — 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 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 v^hich the body reads (in translation) as follows : "In discussing § 6 of the contract signed today, 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, em- phasizing 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 Railway." See the agreements for the mining of coal in the Provinces of Heilungkiang and Kirin, August 30, 1907 (MacMurray, vol. i, p. 658). Agreements for the expropriation of lands required for railway purposes in the Manchurian Provinces of Heilungkiang and Kirin were concluded on August 30, 1907 {ibid., vol. I, pp. 663, 667). An agreement concerning timber concessions in Kirin Province was signed on the same date (.ibid., p. 671), and an agreement for similar concessions in Heilungkiang Province on April 5, 1908 {ibid., p. 721). Note 6 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 Com- pany'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 35, 1915 (No. 35, post^ No. 4 RUSSIA AND CHINA Convention for the lease of the Liaotung Peninsula.^ — March 2j, i8g8 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 wish- ing to insure the means whereby to show reciprocal support, have appointed ^ MacMurray, vol. i, p. 119, translation from the Russian text as printed in Recueil, p. 331. Printed also in Russian and Chinese texts in Customs, vol. ii, pp. 319, 323 ; and, in a translation from unofficial versions, in Rockhill, p. 50 ; HerTSLET, p. 505 ; Am. Journal Int. Law, Supplement, 1910, p. 389 ; F. B. Review, vol. 11, p. 395. See Note to this document, post, p. 44. 42 MANCHURIA; TREATIES AND AGREEMENTS as their plenipotentiaries, for the purpose of arriving at an agreement on this matter : His Majesty the Emperor of Russia — M. Alexander Pavlow, Gentle- man of the Court, and His Majesty's Charge d'Aiifaires 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 : ArTici,E 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 Govern- ment, on lease, the Ports Arthur (Liou-choun-kow) and Ta-lien-wan, to- gether 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-mentioned territory. Art. n. The frontier of the territory leased on the above-specified basis, will extend northwards from the Bay of Ta-lien-wan for such dis- tance 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 stipu- lations of the present Convention will be determined by a separate Protocol which shall be concluded 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. hi. The term of the lease shall be twenty-five years from the date of the signature of the present agreement and may be prolonged subse- quently by mutual consent of both Governments.^ 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 admin- istration 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 desire, either to remove beyond the limits of the territory leased by Russia or to remain within such limits without re- striction on the part of the Russian authorities. In the event of a Chinese '■ See, however, the exchange of notes between China and Japan concerning the extension of this term, May 25, 1915 (No. 35, post). NUMBER 4: MARCH 27, 1898 43 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 piinishment 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 Affairs in St. Petersburg. 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 exclu- sively 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 excep- tion of one of the inner bays whiqh, 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 ex- pense 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 gen- erally to take all necessary 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 precaution- ary signs requisite for the security of navigation. Art. VIII. The Chinese Govemmentt 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 con- necting 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 convenient 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 37 (September 8), 1896, shall apply scrupu- lously 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 basis indicated shall never under any form serve as a pretext for the seizure of Chinese territorv 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. 44 MANCHURIA: TREATIES AND AGREEMENTS 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 affixed their seals to two copies of the present Convention in the Russian and Chinese languages. Of the two texts which, upon com- parison, 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 37), 1898, and by the Chinese calendar the 6th day of the 3rd moon of the 24th year of the reign of Kuang-Hsu. (Seal) (Signed) A. Pavlow. (Seal) (Signed) Li-chang. ( Seal of the Tsung-li-yamen) Note In connection with this conventi.on see the additional convention defining the boundaries of the leased and neutralized territory in the Liaotung Peninsula, May 7, 1898 (No. 5, post) ;' see also the convention for the retrocession of the Fengtien (Liao- tung) Peninsula by Japan to China, November 8, 1895 (No. 2, ante) ; treaty of peace between Russia and Japan, September 5, 1905 (No. 12, post) ; treaty and additional agreement between Japan and China concerning Manchuria, December 22, 1905 (No. 13, post) ; and the exchange of notes between Japan and China, in regard to the ex- tension of the term of lease, accompanying the treaty of May 35, 1915, concerning Man- churia (No. 35, post). RoCK-HiLL, 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 11, 1899 "To The Minister of Finance. — Our Empire, comprising as it does immense ter- ritories in Europe and Asia, is called upon by Divine Province to contribute to the pacific intercourse 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 con- tinents of the Old World will very shortly be connected by an uninterrupted line of rails, which will secure for all nations the incalculable advantages of easy communi- cation, 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 : NUMBER 4 (NOTE) : AUGUST 12, 1903 45 "1. The importation and exportation of goods of every kind are allowed free of 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 introduc- tion 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 Em- pire under the general conditions in force for the importation of foreign goods. "Invoking the blessing of the Lord iipon 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 probleiiis of administration in the provinces bordering the eastern frontier of the Empire induce us to be solicitous for the institution of the au- thority 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 Irnperial Lieutenant of the Far East is invested with the supreme (or high) power in respect of civil administration over those provinces and is indepen- dent 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 in- terests 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 ac- cordance with the principle of the Imperial Decree of January 30, 1843, 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 Im- perial Lieutenant. "4. The command of the naval forces in the Pacific and of all military forces stationed 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 committee 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 regulations. 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." 46 MANCHURIA : TREATIES AND AGREEMENTS No. 5 RUSSIA AND CHINA Additional agreement defining the boundaries of the leased and neutral- ized territory in the Liaotung Peninsula} — May 'j, i8p8 The Governments of Russia and China being desirous of adding some stipulations to the Treaty concluded at Peking on the 15/37th March, 1898,^ the Plenipotentiaries of both Governments have agreed upon the following: Articlb 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-tzii-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. Art. 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. Art. hi. 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. Art. 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 ^MacMueray, vol. I, p. 127, translation from the Chinese text as printed in Customs, vol. ii, p. 337. Printed also in translations from unofficial versions in China, No. i {1899), p. 188; RoCKHrLL, p. 53; Am.. Journal Int. Law, Supplement, 1910, p. 291 ; P. E. Review, vol. 11, p. 395 ; HBRTSLST, p. S08. In connection with this agreement see the convention for the lease, March 27, ' 1898 (No. 4, ante) ; also the agreement for the southern Manchurian branch of the Chinese Eastern Railway, July 6, 1898 (No. 6, post). 2 No. 4, ante. NUMBER 6 : JULY 6, 1898 47 to use the roads from Kinchow to the north boundary of the leased terri- tory, and the waters 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). Art. 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. 3. 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, industrial and mercantile privileges shall be granted in the neutral territory. Art. 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 Cal- endar, April 25, 1898 (May 7th, 1898). No. 6 RUSSIA (Chinese Eastern Railway) AND CHINA Agreement concerning the southern branch of the Chinese Eastern Rail- *way.^ — July 6, 1898 Hsii (Ching-ch'eng), Ambassador (?) of the Imperial Chinese Govern- ment, 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 Kuanghsu, i. e. March 15, 1898, Russian Calendar (March 27th, 1898, N. S.)' and those of the Special Supple- mentary 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 ^ MAcMtTRRAY^ vol. I, p. 154, translation from the Chinese text as printed in Customs, vol. ii, p. 333. See Note to this document, post, p. 50. ''No. 4, ante. ° No. 5, ante. 48 MANCHURIA : TREATIES AND AGREEMENTS 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 3d of the Eighth Moon, XXII Year of Kuanghsii, August 27, 1896, Russian Calendar (September 8, 1896, N. S.y between the Chinese Government and the Russo-Chinese Bank. In accordance with the foregoing provisions, the following Articles relating 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 Manchurian Branch of the Chinese Eastern Railway. Art. II. In accordance with Article IV of the Contract of the 2d. of the Eighth Moon, XXII Year of Kuanghsii, August 37, 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 construction 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 Neutral Territory which may prove advan- tageous to the work of constructing this line, and may there discharge cargo. Art. III. In order to facilitate the bringing in by the Chinese Eastern Railway Company of the materials and provisions needed in the construction of the Southern Manchurian Brancn, it is permitted the Com- pany 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. Art. IV. In accordance with the permission granted to the Com- pany 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 Government 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 *No. 3, ante. NUMBER 6: JULY 6, 1898 49 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. Art. 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 Com- pany 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 boundaries 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 territory or from the leased territory to the interior must pay export or import duties respec- tively according to the Imperial Maritime Customs Tariff without increase or reduction. Art. VI. The Company may at its pleasure assume the responsibility 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 respon- sible. 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 enterprise 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 with- but payment, shall not apply to this undertaking. Art. 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 OfHce of the Company, when the Company or its Agent in Peking shall consult with the Director General of the Railway and decide the matter. 1 i. e.. No. 3, ante. 50 MANCHURIA : TREATIES AND AGREEMENTS 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. Com- pany permitted to employ steamships or other vessels flying Company's flag which may enter Liao River and branches 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 ob- tain 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 Tariflf. 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 international trade to establish the Customs at that port and ap- point the Company to act as Agent of Chinese Imperial Board of Revenue, levying and collecting duties, under direct control of Peking Government, and reporting its management to same from time 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 rail- way, 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 in Manchuria by Engineer-in-Chief when Company, or its Agent in Peking will consult with Director General and decide. "The above is translated by Ch'eng Ju-chiang from the complete text of letter re- > ceived from Chinese Eastern Railway, omitting unimportant words and phrases, this third day of Fourth Moon, Kuanghsii XXIV Year (May 23, 1898)." In connection with this agreement see the following translation from the Rus- sian 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 Septem- ber 8, 1896, No. 3), 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 com- NUMBER 6 (NOTE) : FEBRUARY 17, 1899 51 pany 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 Penin- sula, also to operate this branch which shall be named 'the Southern Manchurian Line,' of the Chinese Eastern Railway. "2. By Imperial order of May 29 (June 10), 1898, the company is authorized to construct 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 Railway 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 obligations of Commercial Councillor Sheveleff devolve upon the Chinese Eastern Railway Company, 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 Manchurian 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 commercial 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 stipulations of par. 13 of the treaty of August 37 (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 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 terri- tory leased by Russia into the interior of China, as well as those brought from the in- terior 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 Minister 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 52 MANCHURIA: TREATIES AND AGREEMENTS 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 T'alien-wan, and the es- tablishment of steamship service in the viraters of the Pacific Ocean, the Company is au- thorized to issue, according to its needs, upon conditions determined in paragraphs 11 and 12 of the Company'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 sep- arate accounts and books from that of the railway. "9. During the exploitation of the commercial port at Talien-wa'n as well as the exploitation of the steamship service organized by the Company for the watgrs 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 cornmercial port at Talien-wan and from the steamship 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 possible 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 com- mercial 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 pur- pose of collecting the duty on merchandise exported and imported by rail from and to the part of the Liaotung Peninsula, leased by Russia, the organization and admin- istration 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 ofiScial of Chinese nationality, who shall fill the post of Chinese Agent at that custom house. "11. In all cases, ove^ooked in the supplement, the Company shall be ruled by corresponding regulations 'ef 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. 12, post), and the treaty between Japan and China, December 22; 1905 (No. 13, post), in regard to the transfer to Japan of that portion of the railway be- tween Port Arthur and Chang-chun (Kuan-cheng-tzu). NUMBER 7 : APRIL 28, 1899 53 No. 7 GREAT BRITAIN AND RUSSIA Identic notes exchanged with regard to railway interests in China^ — April 28, i8pp 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 Mouravieff, 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 tha.t 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 concessions 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 com- municate to the Chinese Government the present arrangement, which, by averting all cause of complications between them, is of a nature to consoli- date peace in the Far East, and to serve the primordial interests of China herself. Charles S. Scott.^ St. Petersburg, April 28, i8pp. Sir C. Scott to Count Mouravieff In order to complete the notes exchanged this day respecting the parti- tion of spheres for Concessions for the construction and working of rail- 1 MacMurray, vol. i^ p. 204. Printed also in Rockhill, p. 183 ; B. & F. State Papers, vol. 91, p. 91 ; British Treaty Series, (1899, No. 11) ; Am. Journal, Int. Law, Supplement, 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. 8, post) ; agreement between Rus- sia and China concerning Manchuria, April 8, 1902 (No. 11, 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 (MacMurray, vol. I, p. 331), and the note of the Wai-wu Pu to the Russian Minister, June 10, 1903, attached thereto. 2 The same, mutatis mutandis, was sent the same day by Count Mouravieff, Minister of Foreign Affairs of Russia, to Sir Charles Scott. 54 MANCHURIA: TREATIES AND AGREEMENTS ways in 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 constructon 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 expenditure 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 periodically 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, appli- cations of Russian subjects or establishments for Concessions for railways, which, starting from the main Manchurian line in a southwesterly direction, would traverse the region in which the Chinese line terminating at Sinmint- ing and Newchwang is to be constructed. Charlbs S. Scott.^ St. Pbtbrsburg, April 28, i8pp. No. 8 RUSSIA AND CHINA Note of the Tsung-li Yamen to the Russian Minister at Peking in regard to the construction of railways northward and northeastward from Peking.' — June i, iSpp 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 1 The same, mutatis mutandis, was sent the same day by Count Mouravieff, Minister of Foreign Affairs of Russia, to Sir Charles Scott. 2 MacMureay, vol. 1, p. 307, translation from the Chinese text. See Note to this document, post, p. 55. NUMBER 7 (NOTE) : JUNE 17, 1899 55 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 the railway, and on no consideration will any other Govern- ment 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 addressed to the Tsung-li Yamen by the Russian Minister (Mr. de Giers) under date of June 17, 1899 : Reply of Russian Minister 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 Govern- ment 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 Govern- ment or a syndicate of any other nationality be allowed to construct the railway. "The statements above set forth were communicated, in accordance with your re- quest, to my Government, and I have now received a reply from Count Mouravieff, 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 connecting the main line of the Manchurian Railway with Peking, the demand of Russia for the construction of this road was based on the responsibility _ as- sumed 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 idemnity. This responsibility cannot therefore be allowed to lapse.' " In connection with this note, see the Anglo-Russian exchange of notes of April 38, 1899 (No. 7, ante) ; agreement between Russia and China concerning Manchuria, April 8, 1903' (No. J.1, post) ; agreement for the transfer of the Peking-Shanhaikuan Railway to the Chinese Civil Administration, and the additional agreement respect- ing the management of the northern railways, April 39, 1902 (MacMurray, vol. i, p. 331), and note of the Wai-wu Pu to the Russian Minister, June 10, 1902, attached thereto. 56 MANCHURIA; TREATIES AND AGREEMENTS No. 9 UNITED STATES AND FRANCE, GERMANY, GREAT BRITAIN, ITALY, JAPAN AND RUSSIA Declarations accepting the commercial policy of the "Open Door."^ — March 20, igo& JAPAN Mr. Hay to Mr. Buck No. 363] Department oe State, Washington, November 13, i8pp. 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 opportune moment to make representations in this direction to Germany, Great Britain, and Russia. To obtain the object it has in view and to remove possible causes of international 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 iMacMueray, vol. I, p. 321. Printed also in Rockhill, p. 185; For. Rel., 1899; Maixoy, p. 244; H. Doc. 547, 56th Cong., 1st Sess. In further reference to the "open door" agreement, consult Mooee;, International Law Digest, vol. 5, pp. 534-549, and Chma, No. 5, (/poo). Only the correspondence with Japan and Russia is here printed. For the corres- pondence with France, Germany, Great Britain and Italy, see MacMurr.w, vol. i, p. 231. 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 dis- turbances "which may brin^ 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 prin- ciple of equal and impartial trade with all parts of the Chinese Empire." (For. Rel., 1900, pp. 299 et seq.) 2 The date is that of Secretary Ha^s instruction to American diplomatic repre- sentatives, embodying the notification of the . acceptance of the American proposal by all tl»e Governments concerned. NUMBER 9: MARCH 20, 1900 57 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. They will levy no higher harbor dues on vessels of another nationality frequenting any port in such "sphere" than shall be levied on vessels of their own nationality, and no higher railroad charges over lines built, controlled, or operated within such "sphere" on merchandise belonging to citizens or subjects of other nationalities transported through such "sphere" than shallbe 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 inter- fere 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. It is no less confidently believed that the cortimercial interests of Japan would 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. 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 inter- ested Powers. I am, etc., John Hay. VlSCX)UNT AoKi To Mr. Buck [Translation] Department of Foreign Aeeairs, Tokyo, the 26th day, the 12th month of the 32d year of Meiji. ' (December 36, 1899.) Mr. Minister: I have the honor to acknowledge the receipt of the note No. 176 of the 30th instant, in which, pursuing the instructions of the 58 MANCHURIA: TREATIES AND AGREEMENTS United States Government, Your Excellency was so good as to communi- cate 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. r have the happy duty of assuring Your Excellency that the Imperial Government will have no hesitation to give their assent to so just and fair a proposal of the United States, provided that ah the other Powers con- cerned shall accept the same. I avail myself, etc., Viscount Aoki Siuzo, Minister for Foreign Affairs. RUSSIA Mr. Hay to Mr. Tower No. 83 J Department oe State, Washington, September 6, i8pp. Sir: In 1898, when his Imperial Majesty had, through his diplomatic representative 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 north- eastern 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 affected 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 guaranteed them under existing treaties with China. Assurances of a similar purport were con- veyed to me by the Emperor's Ambassador at this capital ; while fresh proof of this is afforded 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 a!nd reassuring such assurances may be in regard to the territory actually occupied and administered, it can not but be ad- mitted that a further, clearer, and more formal definition of the conditions which are henceforth to hold within the so-called Russian "sphere of inter- est" 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 NUMBER 9: MARCH 20, 1900 59 a disturbing influence during the last four years on its operations in Cliina. The present moment seems particularly opportune for ascertaining whether His Imperial Russian Majesty woyld not be disposed to give per- manent 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 slight- est uncertainty as to the liberal and conciliatory commercial policy His Majesty proposes carrying 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 na- tionality 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 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 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 be- tween 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 Chmese 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 Shan- tung under a lease from China, a free port and has aided in the establish- 60 MANCHURIA: TREATIES AND AGREEMENTS ment 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 inter- fered with, as there is 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 inter- ested, 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. 305. To Berlin, September 6 1899, No. 937.) Count Mouravief? to Mr. Tower • [Translation] Ministry oe Foreign Aeeairs, December 18—30, 18^9. 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 NUMBER 9: MARCH 20, 1900 61 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 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 complied 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 MouRAvieFP. Instructions Sbnt Mutatis Mutandis to the United States Ambas- sadors AT London, Paris, Berlin, St. Petersburg, and Rome, and TO THE United States Minister at Tokyo Department oe State, Washington, March 20, igoo. Sir: The Government having accepted the declaration sug- gested 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,^ you will please inform the Gov- ernment to which you are accredited 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 Gov- ernment will therefore consider the assent given to it by as final and definitive. You will also transmit to the Minister for Foreign Affairs copies of- the present enclosures, and by the same occasion convey to him the ex- pression of the sincere gratification which the President feels at the suc- cessful termination of these negotiations, in which he sees proof of the friendly spirit which animates the various Powers interested in the un- trammeled development of commerce and industry in the Chinese Empire, and a source of vast benefit to the whole commercial world. • I am, etc., John Hay, 1 Those exchanged with Japan and Russia printed ante. 62 MANCHURIA: TREATIES AND AGREEMENTS No. 10 RUSSIA (Chinese Eastern Railway Company) AND CHINA (Provincial Government of Kirin) Agreement regarding jurisdiction over Chinese subjects in the railway zone} — July 5/18, ipoi Under instructions from the Engineer-in-Chief of the Chinese Eastern Railway, 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 37th year of the reign of Kuang Hsii, the following agreement, supplement- ing and amending the agreement concluded on May 19/31, 1899,^ with Chiang-Chun Yang of Kirin for the establishment 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 Railways Affairs. For this purpose, there shall be appointed a special staff of Chinese officials, of whom some shall be sta- tioned 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 interests 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, con- tractors and persons supplying goods to the railway, but also and in the same measure all other Chinese subjects, whether merchants, artisans, do- mestic servants and other Chinese, 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 railway. 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 regulations ; the consideration, however, and decision of the more important cases, such as cases of niurder, 1 MacMurray, vol. I, p. S74, translation from the Russian version printed in Soglashenia, p. 23. In connection with this agreement see Chinese Eastern Railway Contract of Sep- tember 8, J896 (No. 3, ante) ; alsosimilar agreement of January 1/14, 1902, with the provincial authorities of Heilungkiang (MacMurkay, vol. i, p. 321). 2 MacMurray, vol. I, p. 277. NUMBER 10: JULY 18, 1901 63 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 v^rhether 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 superin- tendent. 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 which 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 Engi-" neer-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 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 Engi- neer-in-Chief or his authorized representative. 6. — The Chinese subjects mentioned in Article 2 shall be subject to punishment 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 H), 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. AH 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 li), and also in all cases when the opinions of the members of 64 MANCHURIA: TREATIES AND AGREEMENTS the Harbin Department are hot in harmony with the opinion of the Engi- neer-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, regard- less of the degree of their importance, shall be finally settled and carried into execution by order of the President and Vice-President of the Department by mutual agreement with the Engineer-in-Chief or his authorized repre- sentative. 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 Relations of Kirin Province for preservation in the archives. 8.— All the members of the Harbin Principal Department and the sol- diers shall be appointed by the Chiang-Chun of Kirin; the President and Vice-President 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, enlight- ened and acquainted with railway affairs 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 Department 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 buildings 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 dupli- cate, after its signature by the Kirin Chiang-Chun Chang and by the author- ized representatives of the Engineer-in-Chief, Mr. Daniel, shall be sub- mitted for the signatures of the Engineer-in-Chief of the Chinese Eastern Railway, Yugovitch, 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. NUMBER 11: APRIL 8, 1902 65 No. 11 RUSSIA AND CHINA Convention with regard to Manchuria} — April 8, ipo2 His Majesty the Emperor and Autocrat of All the Russias, and His Majesty the Emperor of China, with the object of re-establishing and con- firming the relations of good neighborhood, which were disturbed by the rising in the Celestial Empire of the year 1900, have appointed their Pleni- potentiaries to come to an agreement on certain questions relating to Man- churia. These Plenipotentiaries, 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 overlo.oking the fact that attacks were first made from frontier posts in Manchuria on peaceable Russian Settlements, agrees to the re-estab- lishment 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 admin- istrative 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 ad- ministrative authority in Manchuria, the Chinese Government confirms, both with regard to the period and with regard to all other Articles, the obliga- tion to observe strictly the stipulations of the Contract concluded with the Russo-Chinese Bank on the 27th August, 1896,^ and in virtue of para- graph 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 1 MacMukray, vol. r, p. 336 ; translation from the French text, as reprinted in RocKHiLL, p. 99, from China, No. 2 iipo4), p. 36. Printed also in HerTslet, p. 509; Am. Journal Int. Law, Supplement, 1910, p. 304; French text in Customs, vol. i, p. 239; Recueil, p. 538 (where also are printed' a Rnssisn Communication Offlcielle en date du s/l6 Decembre, 1900, concernant le Chemin de Per Chinois de Yang-tsoun-Chang-hai Kouan, at p. 416; and a Communique OMciel St. Petersbourg, jo Mars 12 Avril, 1902, at p. 535). See Note 1 to this document, post, p. 68. 2i. e., Contract for the Chinese Eastern Railway, September 8, 1896 (No. 3, ante). 65 MANCHURIA: TREATIES AND AGREEMENTS gradually all its forces from within the limits of Manchuria in the following manner : (a) 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 of Mukden and the Province of Kirin of Imperial troops. (c) 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 necessity 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-Tsurigs, mutually to come to an agreement respecting the numbers and the disposition of the Chinese forces until the Russian forces shall have been withdrawn. At the same time the Chinese Government 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 suppress brigandage and pacify the country. Chinese forces after evacuation. — After the complete evacuation of Manchuria by Russian troops, the Chinese Government shall have the right to increase or djmini.sh the number of its troops in Manchuria, but of this must duly notify the Russian Government, as it is natural that the mainte- nance 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 ex- penditure on military requirements undesirable for both States. Chinese police guard in Manchuria. — For police service and the maintenance 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 railway to be restored. — ^The Russian Government agrees to restore to the owners the railway Shanhaik- wan-Newchwang-Sinminting, which, since the end of September, 1900, has been occupied and guarded by Russian troops.^ In view of this, the Govern- ment of His Majesty the Emperor of China binds itself : 1. China alone to protect this line. — In case protection of the above- mentioned line should be necessary, that obligation shall fall exclusively on 1 See Note 2 to this document, post, p. 69. NUMBER 11 : APRIL 8, 1902 67 the Chinese Government, which shall not invite other Powers to participate in its protection, construction, or working, nor allow other Powers to occupy the territory evacuated by the Russians. 2. Completion and working of this line. — The completion and work- ing of the above-mentioned line shall be conducted in strict accordance with the Agreement 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 tirhe, extensions of the line in Southern Manchuria, or construction of branch lines in connection witli 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 ta 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 working 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 Gov- ernment, shall be found to be due. The stipulations of all former Treaties between Russia and China which are not afJected 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. 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 comparison, 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 36th March (8th April), 1903.^ ij. e., agreement of April J6/28, 1899 (No. 7, ante). 2 i. e., Shanhaikuan-Newchwang Railway loan agreement of October 10, 1898 (Mac- Murray, vol. I, p. 173). 3 This treaty was signed by M. Paul Lessar, Envoy Extraordinary and Minister Plenipotentiary of Russia to China, on the part of Russia, and by Prince Ch'ing and Wang Wen-shao, on the part of China. 68 MANCHURIA: TREATIES AND AGREEMENTS Note 1 In connection with this convention see also the agreement for the transfer of the Peking-Shanhaikwan Railway from the British military authorities to the Chinese civil authorities, and additional agreement respecting the management of the northern rail- ways, April 29th, 1903 (MacMurray, vol. i, p. 331). See also the following arrange- ment between Tseng Chi, Tartar General of Mukden, and Admiral Alexeiefif, Com- mander in Chief of Kuantung Peninsula and of the Russian naval and military forces in the Pacific, as printed (in translation) in Rockhill, p. 301, under the heading "SigTied at Port Arthur, January 30, 1901," and with a footnote statmg tnat "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 offi- cials 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 300. 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 Newchwang customs duties and likin to be collected temporarily by Russians 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. Russian 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 inter- national 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 coopera- tion 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 remain for four years in office in this province to reorganize public affairs after the late disturbances. "KoROSTOVETZ. "Chou Mibn.-" In Shina Kankei Tokushu Joyaki Isan, p. 109, is printed a Japanese version of what purports to be a "Secret Treaty between Russia and China," concluded in February, 1901. This document appears to be a translation from a Chinese original, and is some- what obscure in its phraseology. The following translation is therefore offered with all reserves : Alleged Secret Russo-Chinese Treaty regarding Manchuria. — February, 1901 "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 for- gotten; and when Manchuria is completely restored, the Chinese Administration will be conducted as formerly. NUMBER 11 (NOTE) : SEPTEMBER 22, 1902 69 "2. — In accordance with Article 6 [ ?5] of the Manchurian Railway Treaty [ ? Russo-Chinese Bank Contract for the Construction and Operation of the Chi- nese 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 consultation 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 instructors 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 Septem- ber 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, Mon- golia 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 pay- ment. 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. Compensa- tion 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 beyond the Great Wail — was the subject of a further agreement signed at Peking on September 9/23, 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), 1903, "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.. Plenipotentiaries 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' appoint such assistants as are necessary, and who shall agree upon the procedure to be followed, 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 70 MANCHURIA: TREATIES AND AGREEMENTS with a view toward the upkeep and protection of the railway line, and all utensils and materials provided by the said Russian Military Authorities. "Article III. — 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-Shanhaikuan 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 in the Protocol of August 35 (Sept. 7), 1901; and to facilitate the transfer of time expired men from such detachments, and their replacement by others, vessels transporting Russian troops and military supplies shall enjoy the special privi- lege of priority over other shipping at the railway wharves at Yingk'ou. "Article IV. — Russian troops and military supplies transported between Shanhai- kuan 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 tele- graph 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 Administration 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-shao." 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, J903 (MacMurray, vol. I, p. 331). No. 12 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: 1 MacMurray, vol. i, p. 522. Printed also, in English, in Traiies et Conventions, p. 585 ; in French text, on p. 97 of the Orange Book containing protocols of the Ports- mouth 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. 75. NUMBER 12: SEPTEMBER 5, 1905 71 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 Afifairs, and His Excellency M. Takahira Kogoro, Jusammi, Grand Cordon of the Imperial 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 poiyers 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. Art. II. The Imperial Russian Government, acknowledging that Japan possesses in Corea paramount political, military and economical interests, engage 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. Art. III. Japan and Russia mutually engage: 1. To evacuate completely and simultaneously Manchuria except the territory 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 fhe 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. 72 MANCHURIA: TREATIES AND AGREEMENTS Art. IV. Japan and Russia reciprocally 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. 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, TaHen and adjacent territory and terri- torial 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 con- sent of the Chinese Government mentioned in the foregoing stipulation. The Imperial Government of Japan on their part undertake that the proprietary rights of Russian subjects in the territory above referred to shall be perfectly respected. Art. 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 (Kuancheng-tzu) and Port Arthur and all its branches, together with all rights, privileges and properties appertaining thereto in 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 con- sent of the Government of China mentioned in the foregoing stipulation. Art. VII. Japan and Russia engage to exploit their respective rail- ways 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. Art, VIII. The Imperial Governments of Japan and Russia, with a view to promote and facilitate intercourse and traffic, will, as soon as possible, conclude a separate convention for the regulation of their con- necting railway services in Mianchuria.'- Art. IX. The Imperial Russian Government cede to the Imperial Government of Japan in perpetuity and full sovereignty, the southern por- tion 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 northern boundary of the ceded territory. The exact alignfnent 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 1 Such a convention was concluded June 13, 1907 (No. 18, post). NUMBER 12: SEPTEMBER 5, 1905 73 possessions on the Island of Saghalien or the adjacent islands, any forti- fications 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 L,a Perouse and Tartary. Art. X. It is reserved to the Russian subjects inhabitants of the territory ceded to Japan, to sell their real property and retire to their coun- try; but, if they prefer to remain in the ceded territory, they will be main- tained and protected in the full exercise of their industries and rights of property, on condition of submitting to Japanese laws and jurisdiction. Japan shall have iull liberty to withdraw the right of residence in, or to deport from, such territory, any inhabitants who labour under political or administrative disability. She engages, however, that the proprietary rights of such inhabitants shall be fully respected. Art. XI.^ Russia engages to arrange with Japan for granting to Japanese subjects rights of fishery along the coasts of the Russian posses- sions in the Japan, Okhotsk and Behring Seas. It is agreed that the foregoing engagement shall not afifect rights already belonging to Russian or foreign subjects in those regions. Art. XII. ^ The Treaty of Commerce and Navigation between Japan and Russia having been annulled by the war, the Imperial Govern- ments of Japan and Russia engage to adopt as the basis of their commercial relations, pending the conclusion of a new treaty of commerce and navi- gation 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 admission and treatment of the agents, subjects and vessels of one country in the territories of the other. Art. XIII. As soon as possible after the present Treaty comes into force, all prisoners of war shall be reciprocally restored. The Imperial Governments 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 Govern- ment 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 state- ment of the direct expenditures respectively incurred by them for the care 1 A fisheries convention was concluded between Japan and Russia on July 28, 1907. 2 A treaty of commerce and navigation, with separate articles, protocol and ex- change of notes attached thereto, and a protocol relating to certain Japanese and Russian consulates, were concluded between Japan and Russia on July 38, 1907. See also the political convention of July 30, 1907 (No. 20, post). 74 MANCHURIA: TREATIES AND AGREEMENTS and maintenance of prisoners from the date of capture or surrender up to the time of death or delivery. Russia engages to repay to Japan, as soon as possible after the exchange of the statements as above provided, the difference between the actual amount so expended by Japan and the actual amount similarly disbursed by Russia. Art. XIV. The present Treaty shall be ratified by Their Majesties the Emperor of Japan and the Emperor of all the Russias. Such ratifica- tion 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 Peters- burg 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.^ Art. 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. [i,. s.] (Signed) Sbrge Wttte. [l. s.] (Signed) K. Takahira. [i,. s.] (Signed) Rosen, [l. s.] Additionai, 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 Plenipo- tentiaries have concluded the following additional Articles : I. — To Artici,e III The Imperial Governments of Japan and Russia mutually engage to commence 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 main- 1 Ratifications were exchanged at Washington, November 25, 1905. NUMBER 12 (NOTE) : FEBRUARY 10, 1904 75 tain 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 em- ployed, 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 Articli; 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 possessions on the Island of Saghalien. The Commission shall be bound, so far as topographical considerations permit, 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 deflections 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, correspond- ing to 33rd August, the 1905. 5th September, (Signed) Jutaro Komura. (Signed) Serge Witte. (Signed) K. Takahira. (Signed) Rosen. Note The following is the translation (as printed in For. Rel. of the U. S., 1904, p. 4;14) of the Japanese declaration of war against Russia, dated February 10, 1904: Japanese Declaration of War Against Russia. — February 10, 1904. We, by the grace of heaven, Emperor of Japan, seated on the throne occupied by the satiie dynasty from time. immemorial, do hereby make proclamation to all our loyal and brave subjects as follows: We hereby declare war against Russia, and we command our army and navy to carry on hostilities against that Empire with all their strength, and we also 76 MANCHURIA: TREATIES AND AGREEMENTS command all our competent authorities to make every effort, in pursuance of their duties and in accordance with their powers, to attain the national aim with all the means within the limits of the law of nations. We have always deemed it essential to international relations and made it our constant aim to promote the pacific progress of our Empire in civilization, to strengthen our friendly ties with other states, and to establish a state of things which would maintain enduring peace in the extreme East and assure the future security of our dominion without injury to the rights and interests of other powers. Our competent authorities have also performed their duties in obedience to our will, so that our relations with the powers have been steadily growing in cordiality. It was thus entirely against our expectation that we have unhappily come to open hostilities against Russia. The integrity of Korea is a matter of constant concern to this Empire, not only because of our traditional relations with that country, but because the sepa- rate existence of Korea is essential to the safety of our realm. Nevertheless Russia, in disregard of her solemn treaty pledges to China and her repeated assurances to other powers, is still in occupation of Manchuria and has consoli- dated and strengthened her hold upon those provinces and is bent upon their final annexation. And since the absorption of Manchuria by 'Russia would render it impossible to maintain the integrity of Korea and would, in addition, compel the abandonment of all hope for peace in the extreme East, we determined in those circumstances to settle the questions by negotiation and to secure thereby perma- nent peace. With that object in view, our competent authorities, by our order, made proposals to Russia, and frequent conferences were held during the course of six months. Russia, however, never met such proposals in a spirit of con- ciliation, but by her wanton delays put off the settlement of the question, and by ostensibly advocating peace on the one hand while she was on the other extending her naval and military preparations, sought to accomplish her own selfish designs. We can not in the least admit that Russia had from the first any serious or genuine desire for peace. She has rejected the proposals of our Government; the safety of Korea is in danger; the vital interests of our Empire are menaced. The guarantees for the future which we have failed to secure by peaceful negotiations, we can now only seek by an appeal to arms. It is our earnest wish that by the loyalty and valor of our faithful subjects peace may soon be permanently restored and the glory of our Empire preserved. In connection with this treaty see also the protocol of armistice signed at Ports- mouth, September 1, 1905, as follows : Protocol of Armistice between Japan and Russia. — September 1, 1905 "The undersigned Plenipotentiaries of Japan and Russia duly authorized to that ef- fect by their Governments have agreed upon the following terms of armistice between the belligerents, 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). "3. The naval forces of one of the belligerents shall not bombard territory belong- ing 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." NUMBER 12 (NOTE) : OCTOBER 30, 1905 T] (Translation from the French text printed on p. 96 of the Russian Orange Book containing 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 Manchuria, and transferring the Railways: Protocol concerning Withdrawal of Japanese and Russian Armies from Man- churia and Transfer of Railways. — October 30, 1905 "Article I. — The following agreement has been concluded in accordance with the supplementary agreement relating to Article III of the treaty of peace between Japan and Russia at Portsmouth on September 5 of this year (August 23) : "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. "a. By June 1 (May 19), 1906, the Japanese troops shall be withdrawn to the hne 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 line 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 com- batants 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 croops by April 15 (April 2), 1907. "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 con- tracting 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. "The determination of the extreme northern point of the railways to be trans- ferred 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, Staff of the Japanese Army in Manchuria. "(Signed) Major-General Olanovsky, Second in Command of the Staff of the Russian Army in Manchuria." {For. Rel. of the U. S., J906, 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 33, 1905 (No. 13, post). See also the politi- cal conventions between Japan and Russia of July 30, 1907 (No. 20, post), July 4, 1910 (No. 30, post), and July 3, 1916 (No. 38, post). 78 MANCHURIA: TREATIES AND AGREEMENTS No. 13 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 Plenipo- tentiary; 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 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. Art. II. The Imperial Japanese Government engage that in regard to the leased territory as well as in the matter of railway construction and exploitation, they will, so far as circumstances permit, conform to the 1 Japanese official translation, MacMureay, vol. l, p. 549. Printed also in HerTslet, p. 391; Customs, vol. 11, 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. 13, ante) ; also the Russo-Japanese conventions of July 30, 1907 (No. 30, post), July 4, 1910 (No. 30, post), and July 3, 1916 (No. 38, post) ; the Sino-Japanese treaty and exchanges of notes respecting South Manchuria and Eastern Inner Mongolia, May 35, 1915 (No. 35, post). See also Note 1 to this document, post, p.' 83. NUMBER U: DECEMBER 22, 1905 79 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 consultation with the Chinese Government. Art. 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.^ 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 Komuea 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.] Jushii, Second Class of the Imperial Order of the Ris- ing Sun, Envoy Extraordinary and Minister Plenipo- tentiary of His Majesty the Bmperor of Japan. (Signed) Prince Ching, [r,. s.] Presiding Minister for Foreign Affairs, Councillor of State and Plenipotentiary of His Majesty the Enp- peror of China. (Signed) Chu Hung-chi, [i,. s.] Minister for Foreign Affairs, Councillor of State and Plenipotentiary of His Majesty the Emperor of China. (Signed) Yuan Shih-kai. [r<. 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. Additional. Agreement The Governments of Japaii and China, with a view to regulate, for their guidance, certain questions in which they are both interested in Man- churia, in addition to those provided for in the Treaty signed this day, have agreed as follows: 1 Ratifications were exchanged at Peking, January 23, 1906. 80 MANCHURIA: TREATIES AND AGREEMENTS Art. I. The Imperial Chinese Government agree that as soon as possible 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 ; L,iaoyang; Hsinmintun; Tiehling; Tungki- angtzu and Fakumen. In the Province of Kirin: Changchun (Kuanchengtzu) ; Kirin; Harbin; Ninguta; Hun- chun and Sanhsing. In the Province of Heilungkiang : Tsitsihar ; Hailar ; Aihun and Manchuli.^ Art. 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 agree- ing to the withdrawal of her railway guards, or in case other proper measures are agreed to betweefi China and Russia, consent to take similar steps accordingly. When tranquillity shall have been reestablished in Man- churia and China shall have become herself capable of affording full pro- tection to the lives and property of foreigners, Japan will withdraw her railway guards simultaneously with Russia. Art. 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 dis- turbed 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. Art. TV. The Imperial Government of Japan engage that Chinese 1 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, Hunchun, 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. 21, post). NUMBER 13: DECEMBER 22, 1905 81 public and private property in Manchuria, which they have occupied or expropriated on account of military 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 withdrawal.^ Art. V. The Imperial Chinese Government engage to take all nec- essary 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. Art. VI. The Imperial Chinese Government agree that Japan has 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 improvements 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 of using the existing line for the withdrawal 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 prop- erties by a foreign expert who will be selected by both parties. The con- veyance by the railway of the troops ond 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 effected, it is agreed that the person undertaking the work on behalf of Japan shall consult with the Commissioner dispatched for the purpose by China. The Chinese Govern- ment 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. Art. VII. The Governments of Japan and China, with a view to promote and facilitate intercourse and traffic, will conclude, as soon as 1 See, in connection with Articles II, III and IV, the agreement for the rendition of Yingkou, December 5, 1906 (No. 14, post). 2 See memorandum concerning the reconstruction of the Antung-Mukden Rail- way, August 19,1909 (No. 26, post) ; and the Sino-Japanese agreement of September 4, 1909, Art. 4 (No. 27, post). . 3 i. e., 19S3-4. See, however, the exchange of notes between Japan and Chma, May 25, ' 1915, concerning the extension of the terms of this and other leases (No. 35, ^0.50. ... , * Under date of October 30, 1911,, an agreement on this subject was concluded, of which the translation is given in Mac'Murray, vol. i, p. 574. 82 MANCHURIA: TREATIES AND AGREEMENTS possible, a separate convention for the regulation of connecting services between the railway lines in South Manchuria and all the other railway lines in China.^ Art. VIII. The Imperial Chinese Government engage that all ma- terials required for the railways in South Manchuria shall be exempt from all duties, taxes and likin. Art. IX. The methods of laying out the Japanese Settlement at Ying- kou in the Province of Shengking, which has already been opened to trade, and at Antung and Mukden in the same Province, which are still unopen although stipulated to be opened, shall be separately arranged and deter- mined by officials of Japan and China. Art. 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 for.^ The Japanese and Chinese shareholders shall share equally in the profits of the undertaking. Art. XI. The Governments of Japan and China engage that in all that relates to frontier trade betweeen Manchuria and Corea most favoured nation treatment shall be reciprocally extended.^ Art. XII. The Governments of Japan and China engage that in all matters dealt with in the Treaty signed this day or in the present Agree- ment 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 re- spective Governments, have signed the present Agreement in duplicate in the Japanese and Chinese languages and have thereto affixed their seals. Done at Peking, this 23nd day of the 13th month of the 38th year of Meiji, corresponding to the 36th day of the 11th moon of the 31st year of Kuang Hsu. (Signed) Bakon Komura Jutaro, [i,. s.] Jusammij Grand Cordon of the Imperial Order of the Rising Sun, Minister for Foreign Affairs and Special Ambassador of His Majesty the Emperor of Japan. 1 See the agreement of September 4, 1909 (No. 27, post), Art. 5. 2 See the agreement of May 14, 1908 (No. 22, post), and regulations dated Septem- ber 11, 1908 (MacMurray, vol. I, p. 733). 3 See the arrangement relating to the reduction of customs duties on goods trans- ported by the Antung-Mukden Railway, May 2^, 1913 (No. 32, post). NUMBER 13 (NOTE) : DECEMBER 22, 190S 83 (Signed) Uchida Yasuya, [l. s.] Jushii, Second Class of the Imperial Order of the Ris- ing Sun, Envoy Extraordinary and Minister Plenipo- tentiary of His Majesty the Emperor of Japan. (Signed) Prince Ching, [i<. s.] Presiding Minister for Foreign Affairs, Councillor of State and Plenipotentiary of His Majesty the Em,- peror of China. (Signed) Chu Hung-chi, [l. s.] Minister for Foreign Affairs, Councillor of State and Plenipotentiary of Flis Majesty the Emperor of China. (Signed) Yuan Shih-kai, [i,. 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. Note 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 Plenipo- tentiaries 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 sura 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, redeemable in yearly instalments. "3. The military railway constructed by Japan between, Mukden and Hsin- mintun shall be sold to China at a price to be fairly determined in consultation by Commissioners appointed for the purpose by the two Governments. China engages to reconstruct 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 following, mutatis mutandis, the loan con- tract 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. 84 MANCHURIA: TREATIES AND AGREEMENTS "4. China declares that she will adopt sufRcient 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 communicate to Russia her desire to take part in the negotiations through com- missioners to be despatched by her on the occasion, and Russia consenting shall partici- pate 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 concern in respect of the telegraph lines in the Province of Fengtien and the cables between 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 naviga- tion 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 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 hostilities 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 recently been observed to sometimes interfere with the local Chinese administra- tion 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 friend- ly relations between the two nations, and also for preventing them in future, from interfering with the Chinese administration or inflicting damage to public or private property without military necessity. "13. 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 Jap- panese 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 between 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. NUMBER 13 (NOTE) : JUNE 7, 1906 85 "13. Chinese local authorities, who are to reside at Inkou, shall be allowed, 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 consultation with the Waiwupu. As there is still in that place' a considerable number of Japanese troops, quarantine regulations as well as regulations for the pre- vention 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 ex- penditures, a statement of receipts and expenditures shall be delivered to the Chinese local authorities 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 ordinance 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, Minister 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 Man- churia 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 HI. — 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. — The 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. "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 pre- vented 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. 86 MANCHURIA: TREATIES AND AGREEMENTS "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 meet- ing 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. — Tlie Government shall appoint supervisors for the South Man- churia 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 com- pany, 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 oT 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 de- cisions or dismiss the officers concerned. "Article XV. — When the Government deems it necessary, it may apply to the company 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. "ArTiclS XVI. — When not otherwise provided for in this Ordinance, the pro- visions 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 construction 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 Com- pany- "Article XIX. — llie 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 per- mission 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 commis- sion 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 gov- ernment order of August 1, 1906, concerning the South Manchuria Railway Com- pany, and of the articles -of incorporation of that company: NUMBER 13 (NOTE) : AUGUST 1, 1906 87 Japanese Government Order regarding South Manchuria Railway Company. August 1, 1906 "To Masatake Terauchi, Chairman of the Organizing Commission of the South Manchuria 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, pertaining 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 T'adasu Hayashi, Minister for Foreign Affairs. "Article 1. — In accordance with the Additional Agreement of the Japan-China Treaty relating to Manchuria, signed on December 32nd, 1905, the Company shall en- gage in the traffic of the following railways : "Tairen-Changchun. "Nankuanling-Port Arthur. "Tafangshen-Liushutun. "Tashichiao-Yingkow. "Yentai-Yentai Coal Mine. "Sukiatun-Fushun. "Mukden- Antunghsien. "Article 3. — 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 company 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 arrangements 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, th? company may, subject to the permission of the Gov- ernment, 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 ex- penses. "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 preceding 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. 88 MANCHURIA: TREATIES AND AGREEMENTS "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 sub- scription 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 Governments of Japan and China (hereafter to be styled 'the shareholders'), the Government shall supply, the deficiency for a period of fifteen (15) years only, (or for thirty (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. How- ever, the amount of money to be furnished by the Government to supply the de- ficiency 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 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 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 consolidating or redeeming these debentures. The Government shall, if neces- sary, guarantee the repayment of the principal. "The amount of the face value of the debentures to be guaranteed by the Gov- ernment shall not exceed the amount remaining when the capital paid in by the share- holders 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 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. "Article 15. — When there is any surplus after paying the interest on the de- bentures, as mentioned in the preceding Article, out of the profits of the com- pany'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 indebt- edness to the Government. "When the dividend for all the shares exceeds ten (10) per cent per an- num, the surplus 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 men- tioned in Article 13 shall be deposited with the Division of Deposits in the Depart- ment 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 companydesires to alter the regulations mentioned in the preceding para- graph and the articles of incorporation, similar steps shall be taken. • NUMBER 13 (NOTE) : AUGUST 1, 1906 89 "Article 20. — The plans of the company's business, the estimate of the cost of operation, the budget of income and expenditures connected with the company's busi- ness, the settlement of the same and the rate of the dividend for each business year shall be submitted to the Government for approval. When the company desires to alter the foregoing items, similar steps shall be taken. "Article 31. — 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 ex- penditures 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 obligation at any time to place the railways, land and any other articles at the service of the Government. "Article 36. — 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 confirmed upon the approval of the Imperial Diet." "THE ARTICLES OF INCORPORATION OF THE SOUTH MANCHURIA RAILWAY JOINT STOCK COMPANY "Chapter I. — General provisions "Article I. — This company shall be called the South Manchuria 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 shares owned by them. "Article 3. — This company shall establish its head-ofifice 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 Man- churia : "T"airen-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 subscriptions 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 news- papers in which the public notices of the court of law are published to whose jurisdic- tion the company is subject in Tokyo [the location of the head-office], and in the news- papers in which the public notices of the Government General of Kwantung are pub- lished at Tairen. 90 MANCHURIA: TREATIES AND AGREEMENTS "Chapter ll.—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 sig- nature 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 President 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 ad- vance. However, each call on the shares shall not exceed twenty (20) Yen per share. "Article ll.^If a shareholder fails to make payment by the date fixed for pay- ment 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 ,13. — 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. "In the case mentioned in the previous paragraph, where rights are lost, the appli- cation money previously paid shall not be refuijded. "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 for- feited his rights as such, the company shall notify each assignor [i.e., one who has pre- viously 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 extinguished 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 per- sons 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. — When 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 NUMBER 13 (NOTE): AUGUST 1, 1906 91 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 statement giving the facts in the case and signed by two or more persons as guaran- tors. However, in case of loss, a public notice to that effect shall be given at the ex- pense 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 the said public notice. "Article 18. — If any shareholder wishes to change the denominations of his cer- tificates of shares, the said certificates shall be presented to the company together with the application. "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 pre- ceding 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 Govern- ments of Japan and China, and the subjects of Japan and China. "Article 2S. — The Imperial Japanese Government shall furnish the following properties 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 company 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. "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 num- ber 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 steps 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 adonted 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 92 MANCHURIA: TREATIES AND AGREEMENTS 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 Pro- ceedings 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 oflficers 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 ap- pointed 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 gen- eral meeting of the shareholders. "Article 38. — The Directors are required, during their term of office, to deposit with the Inspectors fifty (50) snares of the company ownf'' "^v them. These shares shall not be returned to their owners even on their retirement from office until all af- fairs 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 ex- traordinary 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 shareholders, 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. "The Vice-President shall represent the President when he is prevented from dis- charging 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 whatever 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 Shareholders and the Ledger of Debentures. "Article 43. — The President shall submit the following documents to the Inspec- tors seven (7) days in advance of the date set for the ordinary general meeting of shareholders : NUMBER 13 (NOTE) : AUGUST 1, 1906 93 "(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 preceding Article and the Inspectors' report. "Article 45. — The President shall submit to an ordinary general meeting of the shareholders 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 sub- mitted 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 condition of its properties. "Chapter VI. — Supervisors "Article 48. — The Supervisors of the South Manchuria Railway Joint Stock Com- 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 belong- ing to it. • "The Supervisors may, whenever they deem it necessary, order the company to re- port 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 cir- cumstances, exceed six (6) per cent per annum on the capital paid in by the share- holders. . "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 issue for the reconstruction of the railways, or for the operation of the accessory busi- ness, 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 Imperial Japanese Government. The amount of the face value of the debentures to 94 MANCHURIA: TREATIES AND AGREEMENTS be guaranteed by the Imperial Japanese Government shall not exceed the amount re- maining 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 cor- responding 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 deben- tures, as mentioned in the preceding Article, out of the profits of the company's busi- ness, 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 share- holders. "Article 51. — The money to be supplied by the Imperial Japanese Government, as provided for in Articles 53 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 com- pany's indebtedness to the Imperial Japanese Government. "When the dividend for all 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 pre- ceding 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 Gov- ernment shall be reimbursed by the company. ' "Supplementary Article "Article 59. — The provisions in Articles 53 to 57 shall be confirmed upon being approved- by the Imperial Diet." Under date of July 31, 1917, were issued the following imperial ordinances re- garding 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 Chair- man 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 Kwan- tung Province. When the Chairman of Directors is prevented (from attend- ing 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 "Supplementary Rule. This Ordinance shall be effective from the date of its promulgation." NUMBER 14: DECEMBER 5, 1906 95 Concerning the Turning qver of the Operation of the Railways under the Jurisdic- tion oiE 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 Company the construction, improvement, preservation and operation of the railways and the undertakings connected therewith under his jurisdiction. "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 promulgation." No. 14 JAPAN AND CHINA Agreement for the rendition of the Port of Ying-k'ou {Port of New- chivang) } — December 5, i<)o6^ In accordance with the Four Articles agreed upon by the Govern- ments of. China and Japan at Peking in the month of October last,^ provid- ing for the return of Ying-k'ou by Japan to the control of China, the two "■ MacMurray, vol. I, p. 612, translation from the Chinese text. In connection with this agreement see also the treaty between Japan and China, December 23, 1905 (No. 13, ante^. 2 Signed at Newchwang. 3 The Chinese text reads "Japanese calendar 10th month (i. e., October) ; Chinese calendar 9th moon (i.e., 18th October-15th November)." The Peking Agreement re- ferred 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 : "(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 epidemics must be determined by the local authorities in consultation with the Japanese Consul. "(3) 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 unsatis- factory in any particular the Japanese Consul may make representations to the lotal authorities, who shall advise with him and take such action as .the circum- stances may require. "(4) Both the Native Customs and the Imperial Maritime Customs shall be undei 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 here- after, as soon as the Bank of the Board of Finance shall have established its branch, these receipts shall be deposited with both banks." 96 MANCHURIA: TREATIES AND AGREEMENTS Governments mentioned 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 pre- vious to the withdrawal of the Japanese Military forces regulations relating to quarantine 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 after- wards, should occasion arise requiring 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 arrange- ments were made at that time shall be taken over by the local authorities, or by them allowed to be undertaken by the Japanese, we now find that the Japanese military authorities have granted permission to a joint stock com- pany 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 lighting, but that it will be .necessary first to send the Regulations adopted by the company 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 ex- cisions from them ; and the said company agrees to comply accordingly. 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 property, 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 Telegraph 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 undertaken by the Japanese military authorities, or arranged for but not yet begun, the Chinese local authorities agree to take over and complete as planned. NUMBER 14: DECEMBER 5, 1906 97 3. Whereas it is provided in Article III of the Peking Memorandum that matters affecting police administration and public health shall be under the control 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 dissatisfaction should arise, the Japanese Consul may notify the local authorities who shall consult with him and take the necessary action; now we, representatives 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 administra- tion of police affairs, 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 documents connected with them, shall be delivered by the military government to the Chinese local authorities for filing. The military gov- ernment 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 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 December, 1906, it will entirely withdraw from said port. (Dated) Ming-chih (Meiji XXXIX Year, 12th Month, 5th Day. Kuang Hsti XXXII Year, 10th Moon, 30th 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-Shan-hai-kuan Circuit, Representative of the Imperial Chinese Gov't. 98 MANCHURIA : TREATIES AND AGREEMENTS No. 15 JAPAN AND CHINA Convention regarding the Hsinmin-Mukden and Kirin-Changchun Railways.^ — April ij, ipoy Gonsuke Hayashi, Envoy Extraordinary and Minister Plenipotentiary of Japan, arid 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 respective 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 1 MacMureay, vol. I, p. 627 ; translation from the Chinese text as printed in Wang, p. 127. Printed also in For. Rel., 1907, p. 776; HertsleT, p. 397; F. B. Re- view, vol. XI, p. 391. In connection with this convention see also the agreement for the handing over ol the Hsinmin-Mukden Railway, May 97, 1907 (No. 16, post) ; supplementary agree- ment for a loan for the Hsinmin-Mukden and Kirin-Changchun Railways, November 12, 1908 (No. 23, post) ; detailed agreements concerning the Hsinmin-Mukden and the Kirin-Changchun Railway loans, August 18, 1909 (Nos. 24 and 35, post) ; also, with particular reference to the Kirin-Changchun Railway, see Article 6 of the agreement relating to Chientao, September 4, 1909 (No. 38, post), and Article 7 of the Sino-Japan- ese treaty respecting South Manchuria and Eastern Inner Mongolia, May 35, 1915 (No. 35, post), and Kirin-rChangchun Railway loan agreement of October 12, 1917 (No. 41, post). For the text of a preliminary agreement of June 38/July 11, 1902, for the con- struction of the Kirin-Changchim Railway by the Chinese. Eastern Railway, see MacMurray, vol. I, p. 639. NUMBER IS : APRIL 15, 1907 99 for that part of the Hsin-min-Mukden Line east of the Liao River 18 years, and for the Kirin-Changchun Line 35 years. No repayment in full of these loans shall be allowed before the expira- tion of the periods named. (b) The security for the loan from the South Manchuria Railway Com- pany for that part of the Hsin-min-Mukden L,ine 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-Chang- chun Railway Administration as well as for the loan to be made from the South Manchuria Railway Company shall be the real property of the said Railway and its earnings. 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-Chang- chun 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 extension, 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 repayment 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. 100 MANCHURIA: TREATIES AND AGREEMENTS (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 em- ployed with the Chinese. If at any time it shall become necessary to change the Engineer-in-Chief, consulation must first be had with the (South Man- churia Railway) Company before appointment may be made. There shall also be appointed one Japanese accountant, who must be thoroughly quali- fied, and who shall have entire responsibility for the arrangement and over- sight of the various accounts of the railways, but in his supervision of re- ceipts 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 affairs 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 snd} deposits shall be made, satisfactory arrangements shall be agreed upon by the parties concerned when the loan contracts 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 Manchuria 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 wi±h 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 Manchuria 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 ap- point officers to take control of the same. Japanese Calendar, Meiji XL Year, Fourth Moon, 15 Day. Chinese Calendar, Kuanghsu XXXIII Year, Third Moon, 3 Day. (April 15, 1907.) NUMBER 16: MAY 27, 1907 101 No. 16 JAPAN (South Manchuria Railway Company) AND CHINA Agreement for the handing over by Japan of the Mukden-Hsinmint'un Railway, together with the rolling-stock and equipment} — May 27, 1907 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 Man- churia Railway, having been duly empowered, have agreed upon the following articles relating to the handing over of the Mukden-Hsinmint'un Railway, together with locomotives, 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 accord- ance with the following articles, for the purpose of handing over to the Chinese Railway Administration the railway between Mukden and Hsin- mint'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. Art. 2. The date of handing over is fixed as the 40th year of Meiji. 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 Administra- tion. Before the road is handed over they will remain under the charge of the South Manchuria Railway Company. Art. 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 1 MacMukray, vol. I, p. 632, translation from' the Chinese text as printed in Wang, p. 131. In connection with this agreement see also the Sino-Japanese conventions re- garding the Hsinmin-Mukden and Kirin-Changchun Railways, April 15, 1907 (No. 15, ante) ; supplementary agreement for a loan for the Hsinmin-Mukden and Kirin- Changchun Railways, November 12, 1908 (No. 23, post) ; detailed agreement con- cerning the Hsinmin-Mukden Railway Loan, August 18, 1909 (No. 24, post). 102 MANCHURIA: TREATIES AND AGREEMENTS therefor. Salaries and expenses during the said period of seven days will be defrayed by the South Manchuria Railway Company, in order to facili- tate the handing over of the road, and as an expression of friendship. Art. 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 Admin- istration wishes to continue their services, the South Manchuria Railway Company will give heed to the wishes of the individuals. Art. 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 ap- pointment of officers by each party will be taken up and settled, that cooperation may be facilitated. Art. 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 Administration in accordance with a list drawn up by the South Manchuria Railway Company, to be handed over as they now stand. Art. 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. Art. 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 Admin- istration will be loaned to it at a just rental, providing the South Manchuria Railway Company suffers no great inconvenience thereby. Art. 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 inconvenience thereby. Art. 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 trans- ported from Hsinmint'un to the South Manchuria Railway by the Chinese Railway Administration 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. Art. 11. Important matters which may arise in the future, in addi- tion to those mentioned in these articles, will be taken up and settled by mutual conference. NUMBER 17: MAY 30, 1907 1()3 Kuanghsii, 33rd year, 4th moon, 16th day : Meiji, 40th year, 5th moon, S7th day: (May 27th, 1907). Chou Ch'ang-Ling, Expectant Taotai, Second Grade Button, Director General of the Raihvay Adininistration Inside and Outside Shanhaikwan. "Chiu-Pao-T'ien-Cheng-Chou," . Director-General of the South Manchuria Railway. No. 17 JAPAN AND CHINA Agreement for the establishment of a maritime customs ofUce at Dairen, and for inland waters steam navigation} — May ^o, 1907 The Governments of Japan and China having agreed to the establish- ment 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 expe- rience of one season there shall be a reconsideration of the present arrange- ment 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 territory 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 Authorities in the 1 Official English text as printed in Customs, vol. ii, p. 740. Printed also in Tra-ites et Conventions, p. 304; For. Rel., 1907, p. 133, MacMureay, vol. 1, p. 634. 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. For a translation from the Japanese text, embodying certain subsequent amend- ments, see MacMurray, vol. 1, p. 638. 104 MANCHURIA: TREATIES AND AGREEMENTS 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 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 Cus- roms 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 nationalities may be provisionally sent to Dairen. 3. The Inspector General of Maritime Customs will inform the Gov- ernor 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 NUMBER 17: MAY 30, 1907 105 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 at 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 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 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 Japanese 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 produced 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 collection 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 Cus- toms Office sufficient space at Dairen 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. 14. The Chief of the Customs Office and the members of the staff shall be free from any obHgation to act as jurors or assessors or from any other personal services. 15. The aforesaid Maritime Customs Office at Dairen shall be charged likewise exclusively with the granting and issuing of Transit Passes for merchandise going into the interior of China, as well as for merchandise 106 MANCHURIA: TREATIES AND AGREEMENTS . 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 Ofhce at Dairen. 17. The procedure to be observed in case of frauds or contraventions committed by merchants against the Maritime Customs rules shall be settled hereafter by a separate Agreement, but it is understood in principle that aJl judicial procedure 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 amend- ments 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) RoBBRT Hart, Inspector General of Customs. Signed and sealed at Peking, the 30th May, 1907. B Ini^ 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 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. Tlie 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 Di- rector-in-chief may be able to examine the contents. All the Company's affairs will be controlled and directed by the two Directors-in-chief of 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 Chinese Government ^hall 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 consulted. 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 with- out 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 Com- pany is registered by the Chinese Government. At expiration of this Agreement the Company will enter into voluntary liquidation. The Chinese Government will then re- turn 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 cancelled unless by mutual consent this agreement is renewed. After expiration of this agreement, should the Chinese Govern- ment 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. 134 MANCHURIA: TREATIES AND AGREEMENTS 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 oc- cupied. 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 promulgated by the Board of Agriculture, Industry and Com- merce, the Government may, through the Governor of Manchuria, order the Com- pany 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 & Com- pany, 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 re- turn of all the proceeds 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 Company. Messrs. Okura & Company will hand in all proceeds from the sale of the coal produced within the period, and the coal at surface or in store will be handed to the Company without claim for any payment thereon. 13. — 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 oper- ations any ancient objects of art be found these will be handed to the Chinese Gov- . ernment. 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 dis- pute the Chinese version will be held to rule. There will be five copies of this Agreement : One 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 33, 1910. Signatures: Han Kuo Chun, Commissioner of Foreign Affairs. Hsiao Chih Chang Tsao, Japanese Consul. Okura & Company. NUMBER 28: SEPTEMBER 4, 1909 135 No. 28 JAPAN AND CHINA Agreement relating to the CHentao region} — September 4, ipop 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*i6 The Imperial Government of Russia and the Imperial Government of Japan, having resolved to unite their efforts for the maintenance of a per- manent peace in the Far East, are agreed upon the following : Artici,e; I. — Russia will not be a party to any arrangement or political combination directed against Japan. Japan will not be a party to any arrangement or political combination directed against Russia. AuTici,i; n. — In the event that the territorial rights or the special in- terests, in the Far East, of one of the Contracting Parties, recognized by the other Contracting Party, should be menaced, Russia and Japan will confer in regard to the measures to be taken with a view to the support or coopera- tion to be given each other in order to safeguard and defend those rights and interests. In faith whereof, the undersigned, duly authorized by their respective Governments, have signed this Convention and affixed their seals thereto. Done at Petrograd, June 30/July 3, 1916, corresponding to the 3rd day of the 7th month of the 5th year of Taisho. (Sgd.) Sazonow. (Sgd.) I. Motono. (Seal) (Seal) Note In the New York ,Evening Post of March 2, 1918, was printed the following trans- lation of what purports to be a secret treaty concluded between Japan and Russia sim- ultaneously with the convention given above, and stated to have been "revealed from the files of the Russian Foreign Office at Petrograd by the Trotzky-Lenine Government": Alleged Secret Treaty of Alliance between Russia, and Japan, July 3, 1916 The Russian Imperial Government and the Japanese Imperial Government, aiming to strengthen the firm friendship between them, established through the secret agree- ments of July 17/30, 1907, June 21/July 4, 1910, and June 25/July 8, 1912, have agreed to supplement the aforesaid secret agreements with the following articles : Article I. Both the high-contracting parties recognize that the vital interests of one and the other of them require the safeguarding of China from the political dom- ^ MacMurray, vol. II, p. 1327, translation from the French text as printed in Rus- sian Bulletin of the Laivs, No. 190, Section I, July 12/2.5, 1916. In connection with this treaty see also Russo-Japanese conven,tions of July 30, 1907 (No. 20, ante) and July 4, 1910 (No. 30, mUe) . See Note to this document, infra. 184 MANCHURIA: TREATIES AND AGREEMENTS ination of any third Power whatsoever, having hostile designs against Russia or Japan; and therefore mutually obligate themselves, in the future at all times when circum- stances demand, to enter into open-hearted dealings, based on complete trust, in order to take necessary measures with the object of preventing the possibility of occurrence of said state of affairs. Art. II. In the event, in consequence of measures taken by mutual consent of Russia and Japan, on the basis of the preceding article, a declaration of war is made by any third Power, contemplated by Article I of this agreement, against one of the contracting parties, the other party, at the first demand of its ally, must come to its aid. Each of the high-contracting parties herewith covenants, in the event such a condition arises, not to conclude peace with the common enemy, without preliminary consent therefor from its ally. Art. III. The conditions under which each of the high-contracting parties will lend armed assistance to the other side, by virtue of the preceding article, as well as the means by which such assistance shall be accomplished, must be determined in common by the corresponding authorities of one and the other contracting parties. Art. IV. It is requisite to have in view that neither .one nor the other of the high-contracting parties must consider itself bound by Article II of this agreement to lend armed aid to its ally, unless it be given guarantees by its allies that the latter will give it assistance corresponding in character to the importance of the approaching conflict. Art. V. The present agreement shall have force from the time of its execu- tion, and shall continue to be in force until July 1/14, of the year 1921. In the event the other of the High-Contracting Parties does not deem it necessary twelve months prior to the end of said period, to declare its unwillingness to continue the present agreement in force, then the said agreement shall continue in force for a period of one year after the declaration of one of the Contracting Parties disclaiming the said agreement. Art. VI. , The present agreement must remain profoundly secret except to both of the High-Contracting Parties. In witness whereof the persons invested with full power by both parties, have signed and affixed their seals to the present agreement at Petrograd on the 20th of June/July 3, of the year 1916, which corresponds in the Japanese calendar to the third day of the seventh month of the fifth year of the reign of Taisho. (Signatures), Sazonoff. MoTONO. No. 39 JAPAN (Okura & Company) AND CHINA (Government of Fengtien Province) Contract for the extension of a loan for yen -1,^00,000} — October 16, ipi6 The Province of Fengtien of the RepubHc of China (hereinafter called the party of the first part, on October 16, 1915, concluded an agree- ment with Messrs. Okura & Co., of Tokio, Japanese Empire (hereinafter called the party of the second part), to extend a loan of Yen 1,500,000. 1 MacMurraY, vol. II, p. 1335, translation from Chinese text. In connection with this loan, consult the Agreement of April 22, 1918, for a loan from the Bank of Chosen to the Fengtien Provincial Government for the readjustment of the reserves of the Provincial Government Bank of Manchuria (ibid., p. 1416). NUMBER 39: OCTOBER 16, 1916 185 This agreement having expired, both parties now agree to extend the term again by one year and have decided upon the following articles : Article 1. The term of the loan of yen 1,500,000, made by the party of the first part from the party of the second part, having expired on the 16th day of the 10th month of the 5th year of the Republic of China, or the 16th day of the 10th month of the 5th year of Taisho (October 16, 1916), the extension will be reckoned from this date. The former agree- .ment is canceled and a new one drawn up, sealed by both parties, and put into effect. Art. 2. The term of this agreement will be reckoned from the date of signature and will be for one year, or until the I6th day of the 10th month of the 6th year of the Republic of China, or the 16th day of the 10th month of the 6th year of Taisho (October 16, 1917), which will be the date of repayment. Within the term of the agreement the capital cannot be repaid, but if it is wished to make repayments at different times, payment of capital and interest may be made in full not more than one month after the expiration of the term. If repayment cannot be made on the due date and it is wished to extend the term or repay the loan in instalments, negotiations to this end may be reopened- Art. 3. The places for the repayment of this loan will be Dairen and Mukden, as convenient to the party of the second part. Art. 4. Under this agreement, for every yen 100 of the loan, the actual amount of yen 95 will be paid. The amount of the loan will be yen 1,500,000, of which the actual amount paid will be 1,435,000, the discount being yen 75,000. Under this extension, the discount of yen 75,000 will as before be paid by the party of the first part to the party of the second part at Mukden on the date of the signature of this agreement. Art. 5. The interest on the loan will be 7j4% per annum, that is for every yen 100 there will be paid an annual interest of yen 7.50. Art. 6. The interest referred to in the preceding Article, will be payable annually in two instalments at the end of June and at the end of December. The date and method of payment will be in accordance with a supplementary agreement. Art. 7. The security for the capital and interest of this loan will be as follows (1) All of the shares of Fengtien province in the Penhsihu Iron Works and the shaft-head tax. (2) All of the shaft-head tax and royalties of the Fushun Collieries. (3) All of the shares of Fengtien province in the Antung Lumber Company. Art. 8. Before this agreement is sealed, it is stated that the se- curity referred to in the preceding Article has not been hypothecated to other Igg MANCHURIA: TREATIES AND AGREEMENTS parties and that before this loan is repaid in full it will not be hypothecated or sold to other parties. Art. 9. If there should be violations of the provisions of the pre- ceding Articles, the party of the second part may at any time demand from the party of the first part that the capital and .interest be at once paid in full or that other security be provided to make good the deficiency. Art. 10. In connection with the exemption of loans from taxation, it is agreed that no taxes or contributions will be levied by the Government of the Republic of China on this loan. Art. 11. This agreement will be drawn up in Chinese and Japanese • and the party of the first part and the party of the second part will each keep one copy. Disagreement in regard to the text will be settled by a com- parison of the Chinese and Japanese copies. The above eleven articles are signed and sealed by the following au- thorized representatives of the party of the first part and the party of the second part : The representatives of the Governor of the Province of Fengtien of the Republic of China,: Ma T'inGtUAng, Commissioner of Foreign Affairs. Wang Shu-han, Chief of the Department of Finance. The representatives of the Messrs. Okura & Company, of Tokio, Japanese Empire: "Wu-kang-wang-t'ai-lang." "Lin-chi-t'ai-lang." 16th day of the 10th month of the 5th year of the Republic of China : 16th day of the 10th month of the 5th year of Taisho (October 16, 1916). NUMBER 40: JANUARY 12-22, 1917 187 No. 40 JAPAN AND CHINA Exchanges 'of notes in regard to {A) the settlement of the Chengchiatnn affair, (B) the employment of Japanese military advisers in South Manchuria, (C) the employment of Japanese m^ilitary instructors^ (D)the establishment of Japanese police stations in South Man- churia and Eastern Inner Mongolia, and (E) the withdrawal of Japanese troops stationed between Ssupingkai and Chengchiatun.^ — January 12-22, ipi^ (A) Ths Setti,e;ment op the Ch^ngchiatun Afi'air Note from the Japanese Minister to the Chinese Minister of Foreign Affairs Peking, the 32nd day of the 1st month of the 6th year of Taisho. I have the honor to inform Your Excellency that with regard to the Chengchiatun affair for the settlement of which several conferences have been held between me and the Chinese Ministry of Foreign Affairs prior to Your Excellency's assumption of office, the articles set forth hereunder have been mutually agreed upon and, with the exception of such modifica- tions and alterations to the phraseology, as have been considered, no further negotiation is possible. I, therefore, take this opportunity to submit the same to Your Excellency's consideration, and to request that a reply to that effect will be given. 1. The General Commanding the 28th Division to be reproved. 2. The Chinese military officers responsible for this incident to be punished according to law. If the law provides for severe punishment such punishment will be inflicted. 3. An official proclamation to be issued in the districts where there is mixed residence for the information of the soldiers and the people in ■general, to the effect that Japanese soldiers and subjects shall be accorded considerate treatment. 4. The Tu Chun of Fengtien Province to express in an appropriate way, his regret to the Governor of Kwantung and the Japanese Consul- ^ MacMurray, vol. II, p. 3.347 ; translations from Chinese texts, as printed with the Chinese official communique published in the Peking Gazette of January 29, 1917. Printed also in American Journal of International Law, Supplement, 1917, p. 113; Tyau, p. 368 ; and F. E. Review, vol. xiii, p. 396, which also reprint the Chinese official communique. In connection with these see also the treaty between Japan and China respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 35, ante), particu- larly Articles 3 to 6, and attached exchanges of notes. 188 MANCHURIA: TREATIES AND AGREEMENTS General in Mukden, when they ate together at Port Arthur, but the method of this expression is left to the discretion of the said Tu Chun. 5. A solatium of $500 is to be given to the Japanese merchant, Yoshimoto. I avail, etc. Reply Peking, the 22nd day of the 1st month of the 6th year of the Republic of China. I have the honour to acknowledge the receipt of Your Excellency's note of to-day, stating [Here follows the Japanese Minister's Note] In reply I have to state that I have taken note of the above articles which I find are contained in the minutes of the several Conferences and the records of this -Ministry. I avail, etc. (Bi^ The Employment of Miutary Advisers Note Verbale handed by the Japanese Minister to the Chinese Minister of Foreign Affairs Peking, the 5th day of the 1st month of the 6th year of Taisho. The statement that if the Chinese Government should employ foreign advisers on military affairs in South Manchuria, Japanese will be employed first^ etc., has been made in the note dated May 35th of the 4th year of the Republic of China, annexed to the treaty respecting South Manchuria and Eastern Inner Mongolia. As the employment of Japanese military advisers will facilitate mutual understanding between the military authorities of the two countries, and further as there is no doubt that this will help to prevent various trouble which may arise out of misunderstanding, the Imperial Government entertain the hope that the Chinese Government will contin- uously employ Japanese military advisers. However, it is not proper for the Imperial Government to insist upon this matter since it concerns the military affairs of the Chinese Government, and should therefore be left to the discretion of the Chinese Government. NUMBER 40: JANUARY 12-22, 1917 189 Reply Peking, the 13th day of the 1st month of the 6th year of the Republic of China. The Minister of Foreign Affairs has the honour to acknowledge the receipt of the Japanese Minister's Note Verbale of January 5, stating that [Japanese Note repeated] The Minister of Foreign Affairs has to state that there is a Japanese military adviser already engaged in the Tuchun's Yamen at Fengtien. The Note Verbale is noted. (C) The Employment of Military Instructors Note Verbale handed by the Japanese Minister to the Chinese Minister of Foreign Affairs Peking, the 5th day of the 1st month of the 6th year of Taisho. The Imperial Government hopes the Chinese Government will employ a number of Japanese military officers to be instructors in military cadet schools. This is aimed at helping the training of military officers who will in the future be appointed to the various localities in Manchuria and Mon- golia, and also to enlighten the spirit of friendship between China and Japan. Thus, it may be expected that unfortunate incidents like the Chengchiatun case will not occur again and that the root of trouble may be exterminated permanently. However, it is not proper for the Imperial Government to insist upon this matter since it concerns the military affairs of the Chinese Government and should therefore be left to the discretion of the Chinese Government. Reply Peking, the 13th day of the 1st month of the 6th year of the Republic of China. The Chinese Minister of Foreign Affairs has the honour to acknowl- edge the receipt of the Japanese Minister's Note Verbale of January 5th, stating that [Japanese Note repeated] The Minister of Foreign Affairs has to state that hitherto the military cadets school has employed only officers of the national army as instructors and there is at present no intention of employing any foreigner. 190 MANCHURIA: TREATIES AND AGREEMENTS (D) The Estabushment of Powce Stations Note Verhale handed by the Japanese Minister to the Chinese Minister of Foreign Affairs Iti an aide memoire handed by the Japanese Minister to (Dr.) Chen, late Minister of Foreign Affairs, on October 18, 1916,^ it was stated that in consequence of the operation of the Treaty respecting South Manchuria and Eastern Inner MongoHa, the Japanese subjects traveling and residing at those places will increase in number and the Imperial Government, with a view to controlling and protecting those Japanese subjects, consider it nec- 1 The English version of this aide memoire, as given with the Chinese official com- munique above cited, is as follows : "Dated 18th day of the 10th month of the 5th year of Taisho. "According to the new treaty concluded last year respecting South Manchuria and Eastern Inner Mongolia, Japanese subjects shall have the right of residence, travel and commercial and industrial trade in South Manchuria, and tne right to undertake agri- cultural enterprises and industries incidental thereto in the eastern part of Inner Mon- golia jointly with Chinese subjects. The number of Japanese subjects in South Man- churia and Eastern Inner Mongolia will, therefore, inevitably increase gradually. The Imperial Government of Japan considers it necessary to station Japanese police officers in these regions for the purpose of controlling and protecting their own subjetts. It is a fact that a number of Japanese police officers have already been stationed in the in- terior of South Manchuria and they have been recognized by the local officials of the localities concerned since intercourse has been conducted between them. The Imperial Government of Japan proposes gradually to establish additional stations for Japanese police officers in the interior of South Manchuria and Eastern Inner Mongolia wher- ever and whenever necessary. The localities where such stations for police officers are to be established will of course depend upon the number of Japanese subjects residing thereat and therefore cannot be specified in advance. Since this will involve great ex- pense, it is unlikely that many police stations will be established at once. The orga- nization of such stations for police officers will also depend upon the existing conditions of the localities selected and the number of Japanese subjects residing at such places. There will be only a few Japanese police officers at each station as established. The more important duties of such police officers are as follows : "1. To prevent Japanese subjects from committing crimes; "2. To protect Japanese subjects when attacked; "3. To search, arrest and escort Japanese prisoners under the jurisdiction of a Japanese consulate ; "4. To attend to the enforcement of consular orders in connection with civil cases, such as the duties of the registrar ; "5. Investigation and supervision of the personal standing of Japanese subjects; "6. Control and discipline of Japanese subjects, who violate the provisions of treaties between Japan and China ; and "7. To see that Japanese subjects abide by the provisions of Chinese police regu- lations when the agreement between Japan and China respecting the same should actu- ally come into force. "In short, the estaLlishment of stations for Japanese police officers in South Man- churia and Eastern Inner Mongolia is based on consular jurisdiction, and its aim is efficiently to protect and discipline Japanese subjects, to bring about a completely satis- factory relationship between the officials and people of the two countries, and gradu- ally to develop the financial relations between Japan and China. The Chinese Govern- ment is requested speedily to recognize the demands precisely as it has the establishment of consulates and consular agents in the interior of South Manchuria in pursuance of the policy to maintain the friendly relations between China and Japan." NUMBER 40: JANUARY 12-22, 1917 191 essary to increase the establishment of police stations, of which the Chinese Minister of Foreign Affairs is already aware. The Imperial Government consider that the said demand, in the event of its withdrawal, will expose the Japanese subjects,, visiting and residing at those places to danger, thus causing trouble and giving rise to serious com- plications with Chinese officials and citizens. Inasmuch as it is the duty of the Imperial Government to protect Japanese subjects and its right to control them, not only it cannot view such occurrences with indifference but, in view of the friendly relations of the two nations, it also deems it its duty to take precautionary measures. As the stationing of Japanese police ofiScers is but a corollary of the right of extra-territoriality, not to speak of the fact that it does not in the least prejudice Chinese sovereignty, it will help to improve the relations of the officials and people of the two countries and bring about the development of economic interests to no srriall degree. Therefore the Imperial Government is convinced that the Chinese Gov- ernment will, without doubt, give its consent and the Imperial Government has to add that while the Chinese Government is rnaking up its mind and withholding its consent the Imperial Government will nevertheless be con- strained to carry it into effect in case of necessity. Dated the fifth day of the first month of the Sixth Year of Taisho. Reply Peking, the 12th day of the 1st month of the 6th year of the Republic of China. The Minister of Foreign Affairs has the honour to acknowledge the receipt of the Japanese Minister's Note Verbale of January 5, stating that [Japanese Note repeated] "In reply the Minister of Foreign Affairs has to state that: Whereas by virtue of the New Chino- Japanese Treaty "Japanese sub- jects shall be free to reside and travel in South Manchuria and to engage in business and manufacture of any kind whatsoever;" and the Japanese and Chinese may jointly undertake agricultural enterprises and industries incidental thereto in Eastern Inner Mongolia, the Chinese Government, in anticipation of the gradual increase in number of the Japanese subjects, therefore caused to be stipulated in Article 5 of the said Treaty that the Japanese subjects in South Manchuria and Eastern Inner Mongolia shall submit to the Chinese police laws and ordinances, so as to enable the Chinese police to effectively discharge the functions of protection and control. 192 MANCHURIA: TREATIES AND AGREEMENTS Since the reason in support of the Japanese proposal to station police officers was with a view to protect and control Japanese subjects, but as there are already treaty provisions, there is no necessity to station Japanese police officers so as to avoid conflict with the Chinese police' rights. As the seven principal functions of the Japanese police officers, detailed in the aide memoire of October 18th last, are those either which should properly belong to the Chinese police, or those which are provided for by the existing treaties or those which are the duties of the constables (mar- shals) of consular courts, there is no necessity for the establishment of a Japanese police force, hence the question of police cannot be associated with extra-territoriality and the Chinese Government cannot recognize it as a corollary (of the right of extra-territoriality). Ever since the conclusion of extra-territoriality treaties between China and the foreign Powers for several decades, no such claim has ever been heard. Although the Japanese Minister has repeatedly declared that the said police would not interfere with Chinese local administration and police rights, yet after serious consideration by the Chinese Government the sta- tioning of foreign police within the confines of Chinese territory, no matter under whatever circumstances, is prejudicial to the spirit and form of Chi- nese sovereignty tending to cause misunderstanding on the part of the people, thus placing an impediment in the friendship of the two nations. As regards the Japanese police stations already established the Chinese Government and the local authorities have repeatedly lodged their protests and have not accorded their recognition, nor is the Chinese Government able to admit the reasons for the stationing of Japanese police officers as stated in the Note Verbale. This matter has no connection with the Chengchiatun case, and at the conferences the Japanese Minister has repeatedly expressed the desire to detach it from the Chengchiatun case. The Chinese Government considers it necessary to request the Japanese Government to abandon the matter. At the same time, it is not to be construed as meaning that the Chinese Government has recognized any action to carry the matter into effect. (E) WlTHDRAWAI, OF JAPANESE) TrOOPS Note from Chinese Minister of Foreign Affairs to Japanese Minister Peking, the 23nd day of the 1st month of the 6th year of the Republic of China. With regard to the Japanese soldiers despatched by the Japanese Gov- ernment and stationed between Ssupingkai and Chengchiatun, I have the NUMBER 41: OCTOBER 12, 1917 193 honour to inquire of Your Excellency as to the date when they will com-- mence to be withdrawn and also the date when the withdrawal will be completed. I shall be obliged by a reply setting forth the above details. I avail, etc. Reply Peking, the 33nd day of the 1st month of the 6th year of Taisho. I have the honour to acknowledge the receipt of Your Excellency's note of to-day, asking for the withdrawal of the Japanese soldiers stationed between Ssupingkai and Chengchiatun. The Imperial Government of Japan is of opinion that the entire additional forces sent to be stationed at the said places in consequence of the occurrence of the Chengchiatun affair will be withdrawn, as soon as the whole arrangement embodied in the five articles which were agreed upon at the Chengchiatun negotiations has been carried out. I avail, etc. No. 41 JAPAN (South Manchuria Railway Company) AND CHINA Agreement for a loan for the Kirin-Ch-angchu-n Railway.'^ — October, 12, 1917 In accordance with Article 7 of the Treaty respecting South Man- churia and Eastern Inner Mongolia, drawn up between the Governments of China and Japan,, on the 35th day of the 5th month of the 4th year of the Republic of China, that is. the 25th day of the 5th month of the 4th year of Taisho (May 25, 1915), the Minister of Finance and the Minister of Communications, representing the Chinese Government (hereinafter re- ferred to as the Government), and the South Manchuria Railway Company (hereinafter referred to as the Company) have drawn up the following articles in revision of the Changchun Railway loan agreement. ■■ MacMurray, vol. II, p. 1390, translation from the Chinese text. In connection with this agreement, see the treaty respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 35, ante) ; also the convention regarding the Hsinmin-Mukden and Kirin-Changchun Railways, April 15, 1907 (No. 15, ante), and supplementary agreement of Noveinber 13, 1908 (No. 23, ante), and detailed agreement for the Kirin-Changchun Railway loan, August 18, 1909 (No. 25, ante). See also the agreement of June 18, 1918, for the extension to Hueining (No. 42, post). 194 MANCHURIA: TREATIES AND AGREEMENTS Article I. — The Government agrees, in accordance with the terms of the articles set forth below, to effect a loan from the Company of yen 6,500,000, for the construction of a railway from Kirin to Changchun (hereinafter referred to as the Railway) . Subtracting from this amount the unredeemed portion of the loan of yen 3,150,000, which was paid over to the Government by the Company in accordance with the Mukden-Hsinmintun and Kirin-Changchun Railway agreement of the 3rd day of the 3rd moon of the 33rd year of Kuanghsu, that is, the 15th day of the 4th month of the 40th year of Meiji (April 15, 1907) and the supplementary agreement of the 19th day of the 10th moon of the 34th year of Kuanghsii, that is, the 12th day of the 11th month of the 41st year of Meiji (November 12, 1908), there remains still to be paid the sum of yen 4,511,250, which will be handed to the Government in specie. (1) The rate of interest of the loan will be 5 per cent per annum. (2) The amount of the loan actually received will be at the rate of $91.50 for each $100.00, but this does not apply to payments already made. (3) The term of the loan will be thirty years and before the expiration thereof it may not be redeemed in full. (4) The security of the loan will be the property and receipts of the Railway. (5) Before the redemption of the loan the Government may not hypothecate the property and receipts of the Railway to the service of other loans. (6) The Government will guarantee the payment of the principal and interest of the loan. In case the Railway should be in arrears, in conneption with the redemption of the principal or the payment of the interest, the Government will, upon notification from the Company, make the payments direct to the Company. If, after the notification above referred to, the Government is unable to raise the sums required for the deferred payments of principal and interest, it must hand the Railway and all the property thereof over to the Company to be temporarily administered, to be returned to the Government after the deferred payments of principal and interest have been liquidated. If the amount owing in principal and interest is not great an extension of term may be allowed by special arrangement, but not for more than three months. Article 2. — The rights of administration of the whole line of the Rail- way are vested in the Chinese Government. The Government will have a Chief of the Administration (Chu Chang), who, representing and acting under the instructions of the Ministry of Communications, will exercise supervisory powers over all the affairs of the Railway. NUMBER 41 : OCTOBER 12, 1917 195 Artici