"At an interview which had already been arranged for the following day with the Tsung-li Yamên, I took the opportunity to inquire whether the statement issued in the Belgian prospectus was a correct one.

"The Ministers had no knowledge of any such arrangement.

"I pointed out that, according to published reports, the American Syndicate had a preferential right to the Peking-Hankow line if negotiations with the Belgian Syndicate fell through.

The Ministers expressed themselves equally ignorant of this arrangement.

"On the following day I sent two members of the staff to carefully compare our copy of the Chinese text with the original one in the possession of the Tsung-li Yamên, with the result that the comparison showed no material difference.

The Secretaries of the Yamên stated that they had no copy of the French text which is the standard in case of dispute.

"On the 6th instant I addressed an official note to the Tsung-li Yamên requesting to be informed whether such an arrangement as stated in the prospectus had been made, and their Excellencies replied in the negative.

'Copy of my note, together with reply thereto, are herewith inclosed.

"[Inclosure 1.]

"MR. BAX-IRONSIDE TO THE TSUNG-LI-YAMEN.

"MM. LES MINISTRES,

"PEKING, May 6, 1899.

On the 29th April I called at the Yamên and referred to the Agreement made on the 26th June last year with the Belgian Syndicate for the Peking-Hankow Railway. I mentioned that in the prospectus issued by the Belgian Syndicate it was stated that China had promised that if the American Agreement for the Hankow-Canton line fell through, the Belgian Syndicate would be intrusted with the construction of that line.

"Your Excellencies informed me that there was no such stipulation in the Agreement of twenty-nine Articles, or the Supplementary Agreement of ten Articles made with the Belgian Syndicate for the Peking-Hankow line.

"I have heard, however, that the promise referred to was given subsequently to the settlement of the aforesaid Agreements, and I have the honour to request your Highness and your Excellencies to inform me whether such an Agreement has been made. '(Signed) H. O. BAX-IRONSIDE.

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"[Inclosure 2.]

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"THE TSUNG-LI YAMEN TO MR. BAX-IRONSIDE.

"[Translation.]

"PEKING, May 10, 1899.

"SIR, On the 6th instant we received your letter to the effect that in the prospectus issued by the Belgian Syndicate it is stated that China has promised that in the event of the abandonment of the American Contract for the Hankow-Canton Railway the Belgian Syndicate will be intrusted with the construction of that line. You added that you had heard that this promise was given subsequently to the settlement of the Belgian Agreement, and you inquired whether such an arrangement had been made.

"We have the honour to inform you that neither the Belgian Agreement in twenty-nine clauses nor the Supplementary Agreement in ten clauses contains any such stipulation, and that there has been no subsequent arrangement of any kind.

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We have, &c.

"(Cards of their Excellencies the Ministers inclosed.) "

In the 'Memorandum on railway and mining concessions secured by France and French companies," in Documents Diplomatiques, Chine, Juin-Octobre, 1900, p. 23, occurs the following comment (as translated in Rockhill, p. 402) in regard to the Peking-Hankow Railway concession:

"The Société d'études des chemins de fer en Chine, a Franco-Belgian syndicate in which the French element is represented by the big financial establishments of Paris and the big metallurgical industries of France has received a concession for a railway from Peking to Hankow. The two contracts relating to this line, for a loan and for operating, are dated the 26 June 1898. The line will have an extension of about 1,250 kilometers. It is being built and will be operated by the Société d'études for the mutual profit and equal advantage of the French and Belgian parties.

"The loan to be floated is 112,500,000 francs. It has been agreed that the French financial share shall be three fifths, that of Belgium two fifths. A first issue of 133,000 bonds of 500 francs 5% was made at Paris and Brussels on April 19, 1899. 226,800 bonds

were subscribed for, 190,800 at Paris and 36,000 at Brussels. The product of this first issue will suffice to build 500 kilometers of which 300 in the north and 200 in the south, and which will be soon finished. 150 kilometers in the north are already being operated. The building of the remainder will be seen to by a second issue as soon as circumstances permit of it.

"The Société d'études has secured the right to work mines along the line and to make, for the use of these, branch lines.

"A branch company has been organized under the name of 'Société franco-belge de recherches minières en Chine' to work these mines."

On August 13, 1905, was concluded a Contract for a supplementary loan for the purpose of completing the Peking-Hankow Railway, of which the translation (from the French text printed in Wang, p. 73) is as follows:

Contract for Supplementary Loan for Completion of Peking-Hankow Railway.— August 13, 1905.

"Between the undersigned:

"First: The Imperial Chinese Railway Company, represented by His Excellency Sheng Hsüan-huai Kung Pao, Director General, duly authorized by the Chinese Government.

"Second: The Société d'études des chemins de fer en Chine, represented by Mr. Jean Jadot, Engineer-in-chief, Director of the line from Peking to Hankow, holding full powers, "It has been agreed as follows:

ARTICLE I.-To assure the completion in good time of the line from Peking to Hankow and of its branches, and also to assure the payment of interest on the loan, until the whole line has been put into operation, the two contracting parties have decided to issue a supplementary five per cent gold loan, at the issue price of ninety per cent, to the nominal amount of twelve million five hundred thousand francs (frs. 12,500,000), represented by twenty-five thousand bonds of five hundred francs (frs. 500) each.

ARTICLE II.-This loan is subject to all the clauses and conditions of the principal Five Per Cent Loan Contract, under date of June 26, 1898, and of the operating contract annexed thereto, especially as regards the rate of interest, period, amortization, etc.

"ARTICLE III.-This loan, like the principal loan, has the guarantee of the Chinese Government; and it has, furthermore, as a special guarantee, the net revenue from the operation of the Peking-Hankow line, including the extension from Lu-kou-chiao to Peking, and the branches forming part of the same system, after deduction of the sums necessary to assure the services of the principal loan of 1898.

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ARTICLE IV.-The purpose of the present supplementary loan being to assure the completion of the whole line, every effort will be made to avoid exceeding it. If, however, after the completion of the line towards the close of 1905, besides the ordinary expenses of upkeep and current repairs, and besides the service of the loan and the deduction of ten per cent (10%) for rebuilding or extraordinary repairs (according to Article IV of the operating contract)-expenses which will be covered by the operating revenues-there are expenses to be incurred for the final work or orders for new material, or any extension works whatsoever expenses which (according to Article II of the operating contract, and according to the rules generally adopted in railway business) should be charged to the capital account-these expenses will be covered by that share of the net profits which should accrue to the Imperial Chinese Railway Company: if that share should not suffice to cover these expenses, the Imperial Chinese Railway Company should of course, in conformity with the operating contract, furnish the funds to cover them.

"These expenses can only be incurred after a previous agreement with the Director General or his delegate.

"ARTICLE V.-After the completion of the whole line the operating service will become more and more important. The Imperial Chinese Railway Company has named a delegate who (in conformity with Article II of the operating contract) should examine in advance, with the delegate of the Société d'études des chemins de fer en Chine, all measures for the purpose of assuring the perfect organization of the various services and see to the proper execution of those measures, the Société d'études des chemins de fer en Chine being charged by the Chinese Government with the operation of the line, by virtue of the operating

contract.

"ARTICLE VI.-If, in the future, the construction of new branches is decided upon, the Imperial Chinese Railway Company must furnish the necessary funds, either by means of its share of the net profits, or otherwise. The Imperial Chinese Railway Company will be free to choose such means as it sees fit.

“ARTICLE VII.-The present contract is drawn up in four (4) copies, one of them for the Chinese Government, one for the Imperial Chinese Railway Company, one for the Legation of Belgium in Peking, and one for the Société d'études des chemins de fer en Chine.

"In case of doubt or difference, the French text alone will be authoritative for the interpretation of the contract.

'ARTICLE VIII.-When the contract shall have received imperial sanction, the Ministry of Foreign Affairs (Wai-wu Pu) will give instructions by telegraph to his Excellency the Minister of China, in Brussels, for the signature of the twenty-five thousand bonds for the loan, in the name of the Chinese Government.

"Notice of the imperial sanction and of the instructions given to the Chinese Minister at Brussels will be given by the Wai-wu Pu to the Minister of Belgium in Peking.

"If the Minister of Belgium requests it of the Wai-wu Pu, the latter will advise the minister of such foreign country as may be designated to him as taking a part in the subscription for the bonds.

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'Done at Peking August thirteenth, nineteen hundred and five.

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(Signed) J. JADOT. (Signed) SHENG."

On October 8, 1908, the Chinese Board of Posts and Communications concluded with the Hongkong and Shanghai Banking Corporation and the Banque de l'Indo-Chine a loan agreement for the purpose of redeeming the Peking-Hankow Railway Loans (No. 1908/12, post); and on the same date an imperial edict authorized the Bank of Communications to issue a seven per cent Peking-Hankow Railway Redemption Loan of $10,000,000 (No. 1908/13, post). The Chinese Government took control of the railway from January 1, 1909. The line was originally to run, not from Peking but from Lu-kou-chiao (a few miles to the west), to Hankow, and from the first character of each name was known as the Lu-Han Railway upon its extension to Peking, it was known first as the Pei-Han, and later as the Kin-Han Railway (Kin being the French transliteration of the second character in the name Peking).

NUMBER 1898/14.

GREAT BRITAIN AND CHINA.

Convention for the lease of Wei-hai Wei.*—July 1, 1898.

In order to provide Great Britain with a suitable naval harbour in North China and for the better protection of British commerce in the neighbouring seas, the Government of His Majesty the Emperor of China agree to lease to the Government of Her Majesty the Queen of Great Britain and Ireland, Weihai Wei, in the province of Shantung and the adjacent waters, for so long a period as Port Arthur shall remain in the occupation of Russia.

Territory leased.-The territory leased shall comprise the Island of Liukung and all other islands in the Bay of Wei-hai Wei, and a belt of land 10 English miles wide along the entire coast line of the Bay of Wei-hai Wei.

*Text as reprinted in Rockhill, p. 60, from China, 1899, No. 1. p. 199. Printed also in Customs, Vol. I, p. 541; Hertslet, p. 122; Am. Int. Law Journal, Supplement, 1910, p. 297; British Treaty Series, 1898, No. 14.

In connection with this convention see also the following declaration made to the German Government by the British Ambassador at Berlin, by a note dated April 20, 1898, and formally acknowledged on the same date:

"England formally declares to Germany that in establishing herself at Wei-hai Wei, she has no intention of injuring or contesting the rights and interests of Germany in the Province of Shantung, or of creating difficulties for her in that province. It is especially understood that England will not construct any railroad communication from Wei-hai Wei and the district leased therewith into the interior of the Province of Shantung."

For full text of notes, see Hertslet, p. 584. See also Rockhill, p. 180, and China, 1899, No. 1, p. 27.

Within the above-mentioned territory leased Great Britain shall have sole jurisdiction.

Right to fortify.-Great Britain shall have, in addition, the right to erect fortifications, station troops, or take any other measures necessary for defensive purposes, at any points on or near the coast of the region east of the meridian 121° 40′ east of Greenwich, and to acquire on equitable compensation within. that territory such sites as may be necessary for water supply, communications, and hospitals. Within that zone Chinese administration will not be interfered with, but no troops other than Chinese or British shall be allowed therein. Jurisdictional rights.-It is also agreed that within the walled city of Weihai Wei, Chinese officials shall continue to exercise jurisdiction except so far as may be inconsistent with naval and military requirements for the defence of the territory leased.

Rights of Chinese war ships.-It is further agreed that Chinese vessels of war, whether neutral or otherwise, shall retain the right to use the waters herein leased to Great Britain.

Expropriation of natives. It is further understood that there will be no expropriation or expulsion of the inhabitants of the territory herein specified, and that if land is required for fortifications, public offices, or any official or public purpose, it shall be bought at a fair price.

This Convention shall come into force on signature. It shall be ratified by the Sovereigns of the two countries, and the ratifications shall be exchanged in London as soon as possible.†

In witness whereof the undersigned, duly authorized thereto by their respective Governments, have signed the present agreement.

CLAUDE M. MACDONALD,

PRINCE CH'ING,

Senior Member of the Tsung-li Yamên.
LIAO SHOU-HÊNG,

President of the Board of Punishments.

Done at Peking in quadruplicate (four copies in English and four in Chinese) the 1st day of July in the year of our Lord 1898,. being the 13th day of the 5th moon of the 24th year of Kuang-hsü.

Ratifications exchanged at London, October 5, 1898.

NUMBER 1898/15.

RUSSIA (Chinese Eastern Railway) AND CHINA.

Agreement concerning the southern branch of the Chinese Eastern Railway.*— July 6, 1898.

Hsü (Ching-ch'êng), Ambassador (?) of the Imperial Chinese Government, and Yang (-ju), Minister of the Imperial Chinese Government to Russia, have received an Imperial Decree of the 7th of the Fifth Moon, XXIV Year of Kuanghsü, 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 Kuanghsü, i. e. March 15, 1898, Russian Calendar (March 27th, 1898, N. S.)† and those of the Special Supplementary Articles to the same, agreed upon at St. Petersburg on the 17th of the Intercalary Third Moon-April 25, 1898—(May 7th, 1898, N. S.)‡ to the effect that, from the date of the signing of said Treaty by the Chinese Government, in accordance with the permission given in the XXII Year of Kuanghsü (1896) to the Chinese Eastern Railway Company to construct certain railways, a branch line might be built and operated, which should begin at a station, to be selected on the main line of the Chinese Eastern Railway, and extend to the sea-ports, Dalny and Port Arthur in the Liao-tung Peninsula; the said branch line to be dealt with in careful compliance with the terms of the Contract of the 2d of the Eighth Moon, XXII Year of Kuanghsü, August 27, 1896, Russian Calendar (Sept. 8, 1896, N. S.) § between the Chinese Government and the Russo-Chinese Bank.

In accordance with the foregoing provisions, the following Articles 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.

ARTICLE II.-In accordance with Article IV of the Contract of the 2d. of the Eighth Moon, XXII Year of Kuanghsü, August 27, 1896 (Sept. 8th, 1896, N. S.), which provides that the Chinese Government shall take steps as occasion may require to facilitate the bringing in of the materials needed for the 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 * Translation from the Chinese text as printed in Customs, Vol. II, p. 233. See Note to this document, post, p. 156.

† No. 1898/5, ante.

No. 1898/9, ante. § No. 1896/5, ante.