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Poshan along the line of the northern railway from Kiao-chau to Tsinan, and Ichow, Laiwuhsien, etc., along the southern or Kiao-chau-Ichow-Tsinan line. Both German and Chinese capital may be invested in these mining and other operations, but as to the rules and regulations relating thereto, this shall be left for future consideration. The Chinese Government shall afford every facility and protection to German subjects engaged in these works, just as provided for above in the article relating to railway construction, and all the advantages and benefits shall be extended to them that are enjoyed by the members of other Chinese-foreign companies. The object in this case is also the development of commerce solely.

SECTION III-Commercial operations in Shantung.

The Chinese Government binds itself in all cases where foreign assistance, in persons, capital or material, may be needed for any purpose whatever within the Province of Shantung, to offer the said work or supplying of materials in the first instance to German manufacturers and merchants engaged in undertakings of the kind in question. In case German manufacturers or merchants are not inclined to undertake the performance of such works, or the furnishing of materials, China shall then be at liberty to act as she pleases.

The above Agreement shall be ratified by the Sovereigns of both the Contracting States, and the ratifications exchanged in such manner that, after the receipt in Berlin of the Treaty ratified by China, the copy ratified by Germany shall be handed to the Chinese Minister in Germany.

The foregoing Treaty has been drawn up in four copies, two in German and two in Chinese, and was signed by the Representatives of the two Contracting States on the 6th March, 1898, corresponding to the 14th day of the second month in the twenty-fourth year Kuang-hsü.

(Great Seal of the Tsung-li Yamên.)
(Signed)

Baron von HEYKING,

The Imperial German Minister.

LI HUNG-CHANG (in Chinese),

Imperial Chinese Grand Secretary, Minister of the
Tsung-li Yamên, &c., &c.

WENG TUNG-Ho (in Chinese),

Imperial Chinese Grand Secretary, Member of the Council of State, Minister of the Tsung-li Yamên, &c., &c.

Note 1.

In the course of a correspondence, initiated by the American Government, as to the construction to be placed upon this convention in the light of the German Government's adherence to the open-door principle as proposed by Secretary Hay under date of September

6, 1899, the German Embassy at Washington submitted to the Department of State on February 14, 1902, the following memorandum :

Memorandum of German Embassy in Washington regarding German Rights in Shantung.-February 14, 1902.

"The Imperial German Government has no intention whatever of abandoning its adherence to the principle of the Open Door recognized also for the province of Shantung; neither does it contemplate any measures which might be used by other powers as an encouragement for further disintegrating on their part the actual state of possessions of the Chinese Empire.

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The Imperial German Government wants to state that any apprehensions in this respect which may possibly have been created by press-dispatches emanating from English sources are without foundation. The facts are that a German corporation has obtained mining concessions for certain strictly defined mineral lands situated in the province of Shantung; but this does in no way mean a monopoly for the whole province.'

Under date of April 19, 1902, the German Foreign Office addressed to the American Embassy in Berlin a memorandum of which the translation is as follows:

Memorandum of German Foreign Office regarding German Rights in Shantung.— April 19, 1902.

April 19, 1902.

"I. The treaty between Germany and China which was concluded on March 6, 1898, regarding the transfer under lease of certain territory on Kiao-chow Bay, was requisitely ratified in due time and has been in force legally between the two contracting parties ever since. "II. The extract from the_treaty which was contained in the Memorandum from the American Embassy, in the English language, is incorrect in its first paragraph. The provisions referred to, in the original text, read verbally rather as follows:

"The Chinese Government binds itself in all cases where foreign assistance, in persons, capital or material, may be needed for any purpose whatever within the Province of Shantung, to offer the said work or furnishing of material, in the first instance, to German industrialists and merchants who are engaged in undertakings of the kind in question.

"In case the German industrialists and merchants are not inclined to undertake the performance of such works or to furnish material, China shall then be at liberty to act as she pleases.'

"III. 1.) The foregoing provisions do not grant any exclusive rights to Germany, they merely bind China to offer the works and schemes concerned to Germans, but leave to persons of other nationality absolute freedom to obtain the contracts for the furnishing of material by offering more favorable terms.

"The Imperial Government has as yet not learned of any instance where Americans or any persons of any other nationality have actually been placed at disadvantage through the application of these provisions.

2.) The declaration of the principle of the Open-Door' by Germany as well as by the other Powers, was made a long time after the Kiao-chow treaty had gone into effect. Hence the later assertion of this principle cannot be applied retroactively to German rights previously obtained, as moreover, none of the other nations has renounced rights already acquired on account or in consequence of its acceptance of the principle of the Open-Door.'

"3.) France, in particular, on the strength of older treaty provisions after which those of the Kiao-chow treaty of 1898 were modeled, claims similar but more far-reaching rights in the southern Provinces of China. So long in the first place as France cannot be induced to renounce these rights the Imperial Government is hardly in a position to consider the renunciation of similar rights obtained by it in Shantung.

"4.) In other parts of China various other nations hold railway and other concessions of so wide a scope that their realization is not to be thought of within any measurable time, and which therefore practically amount to exclusive privileges. If the Government of the United States is inclined to urge the strict carrying out of the principle of the 'Open-Door,' which Germany would only find proper on the supposition that its application would be absolutely the same to all, it would above all be necessary to raise objections to such exclusive rights as are disguised under the name of concession. On the other hand, to begin with a restriction of the German rights in Shantung, which are really quite modest and which in reality seriously prejudice the interests of no one, would neither be just nor acceptable.

5.) Finally, the Imperial Government cannot leave out of consideration, in taking up its position, (the fact) that the American Government has as yet refused to recognize the principle of the Open-Door' in the Philippines-to the serious disadvantage of Germans who have obtained rights there."

Note 2.

In the Claim of China for direct restitution to herself of the Leased Territory of Kiaochow, the Tsingtao-Chinan Railway and other German Rights in respect of Shantung Province, as presented by the Chinese Delegation for the consideration of the Preliminary Peace Conference at Paris, in February, 1919, is given (at p. 35) the following translation of a convention between China and Germany respecting the withdrawal of German troops from the cities of Kiaochow and Kaomi (in the 50-kilometer zone), concluded November 28, 1905:

Agreement for Withdrawal of German Troops from Kiaochow and Kaomi.—
November 28, 1905.

"The Emperor of China has appointed Yang Shih-hsiang, Civil and Military Governor of Shantung, and the German Emperor, Van Semmern, Civil and Military Governor of Kiaochow, who after communicating full powers and finding them in due form have agreed upon the following articles.

"Whereas the German Emperor has, for the purpose of promoting friendly relations, agreed to withdraw the troops stationed at Kiaochow and Kaomi, the following articles are hereby concluded.

"ARTICLE 1.-The German troops at Kiaochow shall withdraw immediately after this Convention has been signed.

"ARTICLE 2.-One fourth of the German troops stationed at Kaomi shall withdraw immediately after the signing of this Convention, and another fourth, within two months therefrom. The remaining troops shall withdraw within the next two months during which period barracks and stables shall be so speedily built in Tsingtao that the said troops may withdraw altogether within this said time-limit. But in case the said works cannot be finished within the two months, a complete withdrawal shall nevertheless be effected-there shall be no further extension of time.

"ARTICLE 3.-from the date of the signing of this Convention, no matter whether the German troops at Kiaochow and Kaomi have completely withdrawn or not, the railways within the surrounding zone shall completely be under the supervision and protection of the Chinese local authorities and police officers. The police officers shall despatch so many policemen as they deem fit, but not more than two hundred and forty, to be evenly stationed at various sections: all matters relating thereto shall be conducted according to the police regulations prevailing beyond the surrounding zone. At some place near the city of Kaomi there shall be established a police office with a police force of not more than one hundred men who shall, by turn, attend to their duty in the protection of the railway and in the suppression of disturbances which may arise. But if China should station troops in the said place, all matters relating thereto shall be governed by the Kiaochow Lease Convention.

"ARTICLE 4.-All the works which Germany has constructed in Kiaochow and Kaomi such as barracks, stables, drill grounds, roads, waterworks, and the like, together with the foundations thereof, houses and the fixtures attached thereto cost. calculated at their original prices, $496,388.48. From this amount are to be substracted $5,000.00 as rent paid for the German Government by the Chinese Government, $21,388.48 expended for annual repairs and considered as representing the annual dimunition of the value of the properties, and $70,000.00 as extra reduction; the net price will then be $400,000.00 at which the said properties will be purchased by and reverted to China under a separate agreement. The price of the buildings shall be paid off in four installments within two years from the day when the barracks at Kiaochow and Kaomi are handed over. After their purchase or reversion, all the buildings shall be reserved for educational and other public uses.

"ARTICLE 5.—In case Germany should, in accordance with the Treaties, require passage for her troops through Kiaochow and Kaomi, and stay there for a few days, a few weeks' notice will be necessary, in order that a vacant place may be assigned for their temporary stay, free of charge.

"Of this Convention there shall be made four copies in Chinese and four in German, identical in sense; and after they have been signed, two copies each of the Chinese and German texts shall be filed at the office of the Governor of Shantung, and the other two copies each of the said two languages, at the office of the Civil and Military Governor of Kiaochow, for reference, transmission and observance.

"The second Day, eleventh Moon of the Reign of Kwanghsu corresponding to the 28th of November, 1905.

"Signed: YANG SHIH-HSIANG.

VAN SEMMERN."

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