"Having taken His Majesty's orders, I am to-day in a position to inform your Excellency that the Italian Government, recognizing in the Anglo-German Agreement those same principles which rule their own policy in China, do not hesitate to give their adhesion thereto.

"I beg you Excellency to be so good as to bring the above to the knowledge of Her Majesty's Government.

"I have, &c.

"VISCOUNTI-VENOSTA."

น JAPAN.

"SIR

"Mr. Kato to Mr. Whitehead.

" (Translation.)

"Department of Foreign Affairs, "Tokio, October 29, 1900.

I have the honour to acknowledge the receipt of your note of the 24th__instant, in which, in obedience to instructions from the Marquess of Salisbury, Her Britannic Majesty's Principal Secretary of State for Foreign Affairs, you communicated to me the text of an Agreement, signed on the 16th instant by his Lordship and the German Ambassador, which reads as follows:- [See text of principal document.]

"At the same time, in further compliance with Lord Salisbury's instructions, you requested me to inform you whether the Imperial Japanese Government are inclined to accept the principles recorded in said Agreement.

66

The Imperial Government, having received assurances from the contracting Powers to the effect that, in adhering to the Agreement in question, they will be placed in relation to such Agreement in the same position they would have occupied if they had been a signatory instead of an adhering State, do not hesitate to formally declare that they adhere to the said Agreement, and accept the principles embodied therein.

"The Arrangement concluded between Germany and England does not, from our viewpoint, appreciably modify the situation in China.

The first point of this agreement, stipulating that the ports situated on the rivers and on the seacoast of China, wherever the two Governments exercise their influence, remain free and open to commerce, may be favorably received by Russia, inasmuch as this stipulation in no way derogates from the status quo established in China by the existing Treaties.

"The second point is even more responsive to the intentions of Russia, since, from the beginning of the present complications, it has been the first to set up the maintenance of the integrity of the Celestial Empire as the fundamental principle of its policy in China. As to the third point, relative to the eventuality of any derogation from this fundamental principle, the Imperial Government, referring to its Circular of August 12/25th, can only renew the declaration that such an event would compel Russia to modify its atti-. tude in accordance with the circumstances.

"I have the honour to acknowledge the receipt of your note of the 23rd October, inclosing the text of an Agreement between Great Britain and Germany relating to affairs in China, which was signed in London on the 16th instant by the Marquess of Salisbury and the German Ambassador, on behalf of their respective Governments, and inviting the acceptance by the United States of the principles recorded in that Agreement.

"These principles are

"1. It is a matter of joint and permanent international interest that the ports on the rivers and littoral of China should remain free and open to trade, and to every other

legitimate form of economic activity for the nationals of all countries without distinction, and the two Governments agree on their part to uphold the same for all Chinese territory so far as they can exercise influence.

66

2. Her Britannic Majesty's Government and the Imperial German Government will not on their part make use of the present complication to obtain for themselves any territorial advantages in Chinese dominions, and will direct their policy towards maintaining undiminished the territorial condition of the Chinese Empire.'

66

"The United States have heretofore made known their adoption of both these principles. During the last year this Government invited the Powers interested in China to join in an expression of views and purposes in the direction of impartial trade with that country, and received satisfactory assurances to that effect from all of them. [See No. 1900/2, ante. Cf. also China, No. 2 (1900): Correspondence with the United States Government respecting Foreign Trade in China (the Policy of the 'Open Door.')"] When the recent troubles were at their height, this Government, on the 3rd July, once more made an announcement of its policy regarding impartial trade and the integrity of the Chinese Empire, and had the gratification of learning that all the Powers held similar views. And since that time the most gratifying harmony has existed among all the nations concerned as to the ends to be pursued, and there has been little divergence of opinion as to the details of the course to be followed.

"It is therefore with much satisfaction that the President_directs me to inform you of the full sympathy of this Government with those of Her Britannic Majesty and the German Emperor in the principles set forth in the clauses of the Agreement above cited. "The third clause of the Agreement provides

"3. In case of another Power making use of the complications in China in order to obtain, under any form whatever, such territorial advantages, the two Contracting Parties reserve to themselves to come to a preliminary understanding as to the eventual steps to be taken for the protection of their own interests in China.'

66

As this clause refers to a reciprocal arrangement between the two High Contracting Powers, the Government of the United States does not regard itself as called upon to express an opinion in respect to it.

"I have, &c.,

"JOHN HAY."

In connection with this agreement, see also the understanding between the British and German banking groups in regard to railway interests in China, as set forth in the following transcript from China, 1899, No. 1, p. 211:

Anglo-German Bankers' Arrangement regarding Spheres of Interest in Railway Construction.-September 2, 1898.

"

Hongkong and Shanghai Banking Corporation to Foreign Office.-(Received September 3.) "31, Lombard Street, London, "September 3, 1898.

"Dear Mr. Bertie,

As requested I now beg to hand you a copy of the Minutes of the meetings held between M. von Hansemann and ourselves.

"In case it may interest you, I also enclose copy of the telegram I have sent to our people in the East regarding our arrangement with Germany.

"I remain, &c.

"Inclosure 1

:S: EWEN CAMERON.

"Minutes of Meetings held at New Court, St. Swithen's Lane, London, on the 1st and 2nd September, 1898.

"Present:

"Representing the German Syndicate

"Representing the

"Representing the

"M. A. von Hansemann.

British and Chinese Corporation (Limited) —
"Mr. W. Keswick.

Hongkong and Shanghai Banking Corporation-
"Mr. Ewen Cameron.

"Mr. Julius Brussel.

"M. VON HANSEMANN proposed the following, viz.:—

"It is desirable for the British and German Governments to agree about the sphere of interest of the two countries regarding the railway constructions in China, and to mutually support the interest of either country.'

"This proposal was agreed to.

"The following proposal of M. von Hansemann regarding the British and German spheres of interest for applications for Railway Concessions in China, viz.:

"1. British sphere of interest, viz.:

666

The Yangtsze Valley subject to the connection of the Shantung lines to the Yangtsze at Chinkiang; the provinces south of the Yangtsze; the Province of Shansi with connection to the Peking-Hankow line at a point south of Chengting and a connecting line to the Yangtsze Valley, crossing the Hoangho Valley.

"2. German sphere of interest, viz.:

"The Province of Shantung and the Hoangho Valley with connection to Tien-tsin and Chengting, or other point of the Peking-Hankow line, in the south with connection to the Yangtzse at Chinkiang or Nanking. The Hoangho Valley is understood to be subject to the connecting lines in Shansi forming part of the British sphere of interest, and to the connecting line to the Yangtsze Valley, also belonging to the said sphere of interest.' "Was agreed to, with the following alterations, viz.:—

"The line from Tien-tsin to Tsinan, or to another point on the northern frontier of the Province of Shantung, and the line from the southern point of the Province of Shantung to Chinkiang to be constructed by the Anglo-German Syndicate (meaning the German Syndicate on the one part, and the Hongkong and Shanghai Banking Corporation and the British and Chinese Corporation (Limited) on the other part), in the following manner,

viz.:

"1. The capital for both lines to be raised jointly.

"2. The line from Tien-tsin to Tsinan, or to another point on the northern frontier of the Province of Shantung, to be built and equipped and worked by the German group. "3. The line from the southern point of the Province of Shantung to Chinkiang to be built and equipped and worked by the English group.

"4. On completion, the lines to be worked for joint account.'

"So far the Minutes of the proceedings of the meetings, and it is further agreed upon that neither the German group nor the English group will be bound to construct the lines assigned to their sphere unless the Shantung lines be constructed simultaneously.

'London, September 2, 1898.

"P.S.-Wherever the term 'Valley' is used it means 'Flussgebiet,' the signification of which is the districts through which streams flow into the Yangtsze or Hoangho. (initialed) A. VON H.

W. K.

E. C.
J. B."

NUMBER 1900/6.

DENMARK (Great Northern Telegraph Company), GREAT BRITAIN (Eastern Extension, Australasia and China Telegraph Company) AND CHINA. Agreement in regard to the land telegraph lines between Taku and Peking.*— October 26, 1900.

Whereas the Administration is desirous of restoring their telegraph lines between Taku and Peking, and of reopening their stations of Tien-tsin and

*Text as printed in Recueil, p. 412.

In connection with this agreement see the telegraph convention among the same parties, July 11, 1896 (No. 1896/3, ante); see also the agreements of the Chinese Telegraph Administration with the Great Northern, and with the Eastern Extension, October 22, 1902 (No. 1902/10, post).

Peking, and whereas the Companies are willing to assist the Administration in this matter, the following stipulations have been agreed on, and under date below given, signed by the Administration represented by its Director-General Sheng-hsuen-huai, and by the Great Northern Telegraph Company, Limited, of Copenhagen represented by its acting co-managers in China, Mr. Julius V. Petersen and Mr. K. Suenson, and by the Eastern Extension, Australasia. and China Telegraph Company Limited, represented by Mr. William Bullard, all three parties duly furnished with full and special powers for this purpose.

Article I.-The Companies undertake to use their influence with their respective Governments to obtain from the allies permission for the Administration to reerect the landlines between Taku and Peking, and to reopen public stations at Tien-tsin and Peking, on condition that the Companies shall have the absolute control of the working of the above-named landlines, and of the stations at Taku, Tien-tsin and Peking.

Article II.-For the purpose, stated in Article I, the Companies shall have the right to appoint an agent at Tien-tsin and at Peking who shall have complete control of the entire Chinese staff, the working of the lines, and the management of the stations.

The Companies shall further have the right to appoint such other foreigners as they deem necessary to ensure efficient control.

At Taku the above-named lines shall be worked from the present cable station.

Article III.-The Administration shall provide accountants at Tien-tsin and Peking who shall be responsible to the Administration for all monies received for telegrams.

At the Taku station the Companies will receive all monies for all telegrams and will pay the same to the Administration.

Article IV. The Administration undertakes to pay all expenses incurred in connection with the establishment and working of the said lines and stations, and further to reimburse to the Companies all expenses in connection with the Europeans stationed at the afore-named places by the Companies.

Article V. This Agreement shall continue in force until the majority of the foreign troops shall have been withdrawn, and peace and the normal state of affairs in the North of China shall have been reestablished, when the Peking and Tien-tsin stations will be handed over to the Administration for their own management.

In witness whereof the undersigned, duly authorized, have signed the present Agreement.

Done at Shang-hai in the Chinese language and in the English language. Three expeditions duly compared and found to be in agreement have been signed in both languages on the twenty-sixth day of the month of October, nineteen hundred, corresponding with the fourth day of the ninth moon of the twenty-sixth year of the reign of Kwang-hsu.

(L. S.) For the Imperial Chinese Administration-the Director-General (Signed): SHENG-HSUEN-HUAI.

(L. S.) For the Great Northern Telegraph Company Limited of Copenhagen-the acting co-managers in China, KAY SUENSON, JULIUS V. PETERSEN. (L. S.) For the Eastern Extension, Australasia and China Telegraph Company Limited (Signed): W. BULLARD.

NUMBER 1901/1.

GREAT BRITAIN (The British Government, and the Eastern Extension, Australasia and China Telegraph Company)

Agreement for the Provision of a Submarine Cable between Chefoo and Weihaiwei.*-April 23, 1901.

AGREEMENT made the 23rd day of April, 1901, between Henry Torrens Anstruther, Esq., and Ailwyn Edward Fellowes, Esq. (commonly called the Honourable Ailwyn Edward Fellowes), two of the Lords Commissioners of His Majesty's Treasury, for and on behalf of His Majesty's Government of the one part, and the Eastern Extension Australasia and China Telegraph Company, Limited (hereinafter called “the Company "), of the other part.

1. WHEREAS His Majesty's Government, being desirous that a telegraph cable should be laid with all possible dispatch connecting Shanghai with Weihaiwei and Taku, applied to the Company to lay such cable for the account and at the cost of His Majesty's Government, and negotiations have been proceeding as to the terms upon which such cable should be laid;

2. And whereas since the said negotiations were entered on the Imperial Chinese Telegraph Administration (hereinafter called "the Administration ") applied to the Company and to the Great Northern Telegraph Company of Copenhagen (a Danish Company working in connection with the Company hereinafter called the Great Northern Company) to lay a cable for the Administration from Shanghai to Chefoo and Taku; and the Company, with the approval of His Majesty's Government, entered into negotiations with the Administration with regard to the laying of such a cable;

3. And whereas the said negotiations with the Administration resulted in the following basis of Agreement, the terms of which have since been embodied in two formal Agreements duly executed between the Administration of the one part and the Great Northern Company and the Company of the other part, which Agreements bear date respectively the 4th day of August and the 27th day of October, 1900:

(a) The Company and the Great Northern Company are to provide and * Text as printed in Hertslet, p. 1174. See Note to this document, post, p. 273.