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corresponding with the twelfth day of the fourth moon of the twenty third year

of the reign of Kwang-hsu.

For the Imperial Chinese Telegraph Administration—

(L. S.): The Director General (signed) SHENG. For the Great Northern Telegraph Company of CopenhagenThe Manager in China (signed) HENNINGSEN.

Vu et approuvé

Le Chargé d'Affaires de Russie et de Danemark.
(L. S.) (signé): A. PAVLOW.

(L. S. du Tsung-li-yamen.)

Note.

An additional article to this agreement was signed on March 6, 1899, in the following terms (as given in Recueil, p. 355):

Additional Article to Telegraph Convention of 1897.-March 6, 1899.

"In connection with the Agreement entered into on the 13-th of May 1897 between the Imperial Chinese Telegraph Administration on the one part and the Great Northern Telegraph Company of Copenhagen on the other part the following 'Additional Article' has been agreed upon and under date given signed by the Administration represented by their Director General Sheng and by the Company represented by their Manager in China Mr. J. Henningsen both duly furnished with full and special powers for this purpose, and now witness; that in the interest of both parties to the Agreement dated the 13-th of May 1897, and for the same term of years that is till the 31-st December 1910 no other party will be allowed without the consent of both the said parties to land telegraph cables on the coast of China and islands belonging thereto or to work such cables in connection with the Chinese lines or otherwise to establish telegraph connection which might create competition with or injure the interests of the existing lines belonging to China or to the Great Northern Telegraph Company of Copenhagen. This shall however not prevent the Chinese Government from establishing local internal cables where no competition can arise nor from consenting to the junction by cable of Port Arthur with the Russian telegraph system for the exchange of limitrophe local traffic neither shall it prevent the transmission of terminal Formosa traffic over the Foochow-Formosa cable now belonging to Japan whilst other traffic must not be exchanged by this line except with the consent of China and of the Great Northern Telegraph Company of Copenhagen.

"The present additional Article shall be confirmed by the Tsung-li-yamen and by the Minister at Peking for Russia and Denmark.

"In witness whereof the undersigned duly authorized to this effect have signed the present additional Article.

"Done in Shang-hai in the Chinese language and in the English language. Three expeditions duly compared and found to be in agreement have been signed in each of three languages on the sixth day of the month of March eighteen hundred and ninety nine corresponding with the twenty-fifth day of the first moon of the twenty-fifth year of Kuanghsü.

"(L. s.) For the Imperial Chinese Telegraph Administration-the Director General: (Signature): SHENG.

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"(L. s.) For the Great Northern Telegraph Company of Copenhagen-the Manager in China,

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(Signature): J. HENNINGSEN.

"(L. S.) Vu et approuvé: le Ministre de Russie et de Danemark.

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(Signé) MICHEL DE GIERS."

In connection with this convention see also the convention between the Chinese Telegraph Administration and the Great Northern and Eastern Extension Companies, July 11, 1896 (No. 1896/3, ante).

NUMBER 1898/1.

GREAT BRITAIN AND CHINA.

Declaration concerning the non-alienation of the Yang-tsze region.*—February 11, 1898.

SIR C. MACDONALD TO THE TSUNG-LI YAMÊN.

PEKING, February 9, 1898.

MM. LES MINISTRES,

Your Highnesses and your Excellencies have more than once intimated to me that the Chinese Government were aware of the great importance that has always been attached by Great Britain to the retention in Chinese possession of the Yang-tsze region, now entirely hers, as providing security for the free course and development of trade.

I shall be glad to be in a position to communicate to Her Majesty's Government a definite assurance that China will never alienate any territory in the provinces adjoining the Yang-tsze to any other Power, whether under lease, mortgage, or any other designation. Such an assurance is in full harmony with the observations made to me by Your Highnesses and Your Excellencies. I avail, &c.

(Signed)

CLAUDE M. MACDONALD.

THE TSUNG-LI YAMÊN TO SIR C. MACDONALD.

Kuang-hsü, 24th year, 1st moon, 21st day. (February 11, 1898.)

The Yamên have the honour to acknowledge the receipt of the British Minister's despatch of the 9th February, stating that the Yamên had more than once intimated to him that the Chinese Government were aware of the great importance that has always been attached by Great Britain to the retention in Chinese possession of the Yang-tsze region, now entirely hers, as providing security for the free course and development of trade. The British Minister would be glad to be in a position to communicate to Her Majesty's Government a definite assurance that China would never alienate (any territory) in the provinces adjoining the Yang-tsze to any other Power, whether under lease, mortgage, or any other designation.

* Translation and text as reprinted in Rockhill, p. 174, from China, 1898, No. 2. Printed also in Hertslet, p. 119; Kent, p. 299; Recueil, p. 297.

In connection with this declaration see other non-alienation declarations noted under that concerning Hai-nan, March 15, 1897 (No. 1897/2, ante). See also the arrangement between the Hongkong and Shanghai Banking Corporation and the British and Chinese Corporation, and a German syndicate, concerning spheres of interest in respect to railway construction, signed September 2, 1898, printed as an annex to the Anglo-German agreement of October 16, 1900 (No. 1900/5, post).

The Yamên have to observe that the Yang-tsze region is of the greatest importance as concerning the whole position (or interests) of China, and it is out of the question that territory (in it) should be mortgaged, leased, or ceded to another Power. Since Her Britannic Majesty's Government has expressed its interest (or anxiety) it is the duty of the Yamên to address this note to the British Minister for communication to his Government.

They avail themselves, &c.

NUMBER 1898/2.

GREAT BRITAIN AND CHINA.

Declaration that the Inspector-General of Maritime Customs shall be a British subject while British trade predominates.*-February 13, 1898.

THE TSUNG-LI YAMÊN TO SIR C. MACDONALD.

Kuang-hsü, 24th year, 1st moon, 20th day. (February 10, 1898.)

The Yamên have the honour to acknowledge the receipt on the 3rd February of a note from the British Minister, to the effect that on the 17th January, when calling at the Yamên, he had informed the Ministers present that he had received telegraphic instructions from Her Majesty's Government that in view of the immense preponderance of British trade with China over that of other countries, Her Majesty's Government regarded it as vital to the commercial interests of Great Britain that the Inspector-General of Maritime Customs should in the future, as in the past, be of British nationality. The Yamên had agreed to this, and in order that there might be no room for misunderstanding, the Minister now addressed this note to the Yamên to place the matter formally on record.

The Yamên have to observe that ever since the opening of Chinese ports to foreign trade, commerce and revenue have been steadily increasing. The duties paid by British merchants are nearly 80 per cent. of the whole amount paid by foreign countries, and, therefore, a British subject (Sir Robert Hart) has been employed as Inspector-General of Maritime Customs.

The said Inspector-General is versed in commercial matters, just in his dealings, experienced and upright, faithful and sincere, a man on whom reliance can be placed, and China has in the past leant much upon him. If he were to ask for leave China must (try to) detain him, but if some cause were to necessitate his returning home, China, thoroughly investigating the trade at the various ports, (and finding that) British merchants are in the majority, will *Text and translation as reprinted in Rockhill, p. 176, from China, 1899, No. 1, p. 18. Printed also in Hertslet, 1151. See Note to this document, post, p. 106.

certainly direct the said Inspector-General to recommend an Englishman of equal ability with himself to take charge, and the Yamên will, after inquiry, appoint him as successor to manage Chinese Customs matters. The object being the protection of commerce at the various ports, (the Yamên) could not possibly regard this selection as a light matter, and so do injury to important public interests.

The Yamen beg to make this reply to the British Minister for his information.

They avail themselves, &c.

(Seal of Yamên.)

THE TSUNG-li Yamên tO SIR C. MACDONALD.

Kuang-hsü, 24th year, 1st moon, 23rd day.

(February 13, 1898.)

The Yamên have the honour to address the British Minister with regard to the continued employment in the future of an Englishman in succession to the Inspector-General of Maritime Customs, on which subject they addressed a reply to his Excellency a few days ago.

They have to observe that British trade with China exceeds that of all other countries, and, as the Yamên have frequently agreed and promised, it is intended that as in the past, so in the future, an Englishman shall be employed as Inspector-General.

But if at some future time the trade of some other country at the various Chinese ports should become greater than that of Great Britain, China will then of course not be bound to necessarily employ an Englishman as InspectorGeneral.

The Yamên write this further despatch for the information of the British Minister, to be placed on record.

They avail themselves, &c.

(Seal of Yamên.)

Note.

In connection with this declaration see also China, 1906, No. 1, in which are given the following translations of an imperial edict of May 9, 1906, and of a note under date of June 1, 1906, from the president of the Wai-wu Pu (Prince Ch'ing) to the British chargé d'affaires, in reference thereto :

Imperial Edict of May 9, 1906: "Tieh Liang, President of the Board of Revenue, is appointed Imperial High Commissioner of Customs, and T'ang Shao-yi is appointed Imperial Vice-Commissioner of the same. All Chinese and foreign employees of the said Customs are to be under the control and direction of the above-named High Commissioners.' (See circulars of the Inspector-General of Customs of September 22, 1906, No. 1369, Second Series, and October 30, 1906, No. 1381, Second Series.)

Note of Prince Ch'ing to the British chargé d'affaires, June 1st, 1906: "Sir: I had the honor to inform you in a note of the 27th May that the special appointment by China of High Commissioners for the exclusive control (or management) of the Maritime Customs made no change in the mode of administration laid down in the Loan Agreements.

At an interview at the Wai-wu Pu on the 28th May you intimated that the terms of this note were not sufficiently explicit as to China's intentions, and requested a further statement in the matter.

"In the 7th Article of the Loan Agreement of 1896 and in the 6th Article of the Loan Agreement of 1898 it is stipulated that the administration of the Chinese Imperial Maritime Customs shall remain as at present constituted during the currency of this loan,' and I have the honor to state that the Imperial Decree of the 9th May specially appointing High Commissioners to control (or manage) revenue affairs does not make any change in the method of Administration laid down in the Loan Agreements.

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While communicating the above to you, for the information of His Majesty's Government, I avail, etc."

The references in the second paragraph of the above note are to the loan agreements concluded with the Hongkong and Shanghai Banking Corporation and the DeutschAsiatische Bank, March 23, 1896 (No. 1896/2, ante) and March 1, 1898 (No. 1898/3, post).

NUMBER 1898/3.

GERMANY (Deutsch-Asiatische Bank), GREAT BRITIAN (Hongkong and Shanghai Banking Corporation) AND CHINA.

Agreement for the Chinese Imperial Government 42% Gold Loan of 1898.*-March 1, 1898.

This Agreement is made between the Tsungli Yamen Peking acting on behalf of the Imperial Government of China of the one part and the Hongkong and Shanghai Banking Corporation and the Deutsch Asiatische Bank, hereinafter called "the Banks" of the other part.

Whereas a simple Memorandum of Agreement for an Imperial Chinese Government four and a half percent Gold Loan of Sixteen Million pounds sterling was executed between the Imperial Government of China and the Hongkong and Shanghai Banking Corporation on the nineteenth day of February last; and Whereas on the twenty-fifth day of February last telegraphic advice was received from the Banks in Europe that they are prepared to issue the loan on the conditions specified in that Memorandum of Agreement:

It is now agreed as follows.

1.—The Imperial Government of China hereby authorizes the Banks to issue an Imperial Chinese four and a half percent Gold Loan for the amount of Sixteen Million pounds sterling. The Loan shall be dated the first day of March One thousand eight hundred and ninety eight.

2. The rate of interest for the loan shall be four and a half per cent per annum on the nominal principal, that is shall be seven hundred and twenty thousand pounds Sterling per annum: the interest on the loan shall be calculated from the first day of March One thousand eight hundred and ninety eight, and shall be paid by the Chinese Imperial Government to the Banks in monthly

* In connection with this agreement see also the Agreement for the Chinese Imperial Government 5% sterling loan of 1896, signed March 23, 1896 (No. 1896/2, ante).

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