necessary, or when the local dealers insist upon a price exceeding the current price.

ARTICLE IX.-As regards the extraction of stone and sand from the quarries, as well as the furnishing of wood from the forests, information will be given in advance to the local authorities, who, after having satisfied themselves of the possibilities, will in as short a space of time as possible give the lands necessary for the purpose of such quarrying, if they are included in public lands. As to forests, even when they are property of the public domain, the purchase of felling rights must be negotiated with the local authorities.

But if such sites are found upon private lands, the materials must be purchased either upon an understanding with the local authorities or by direct bargain made with the owners.

The prices fixed will be paid by the builders.

ARTICLE X.-All the lands which may be used only during the construction of the railway line, such, for example, as the yards and storing-places for materials, the roads for the transportation of materials and approaches to the yards, the quarries, the dumps of earth, the places for excavating earth, the temporary lodgings for workmen and agents of construction, the establishments necessary only during construction, will all be immediately restored to the Authorities of Yunnan from time to time as they are no longer needed.

The Authorities will thereupon return them to their owners.

ARTICLE XI.-When the main line shall have been finished, if the two parties consider it advantageous, then, after an agreement with the High Authorities of Yunnan and an understanding between the Minister of France at Peking and the Wai-wu Pu as to the manner of procedure, branches connecting with the main line may be constructed.

ARTICLE XII.-The engineers, foremen and overseers of the work, as well as all technical employees, may be taken from among foreigners. The rest of the workmen of every sort will be taken first of all from among the people of the province. In the event that the workmen of Yunnan should not be numerous enough, or if the wages demanded by them should be too high, the builders may engage Chinese laborers from the other provinces.

With a view to preventing agitators from making their way into the province, the Chinese laborers coming from other provinces, as well as those recruited in Yunnan, must present themselves to the local authorities to be matriculated.

The various prices and wages for the day or for the job will be equitably fixed. They will be paid either daily or at fixed intervals, in accordance with an agreement between the builders and the laborers.

In the event of a progressive increase of prices or of a combination among the Chinese laborers, resort will be had to the local authorities, who will do all that is incumbent upon them to assist and to fix the wages in agreement with the agents of the railway, and to tranquilize the people.

If the local authorities have fixed a rate, and the Chinese laborers continue to refuse to go to work, the Company shall then, upon determination of that fact by the local authorities, be authorized to have resort to foreign laborers.

ARTICLE XIII.-The Chinese employees and laborers in the service of the

railway shall be treated with kindness. Those who may be sick will receive medical care and medicines. Those who may in the course of the work be injured or incapacitated will be generously assisted, as will also the families of those who may have been accidentally killed.

ARTICLE XIV.-The agents employed and the laborers in the construction yards will all be placed under the authority and supervision of the Engineer-inChief and of his authorized representatives. They may not be ill-treated. All questions and matters of legal procedure, lawsuits, murders, thefts, quarrels and disturbances that may arise among the Chinese laborers will be under the jurisdiction of the competent local authorities, who will make investigations and punish the guilty according to law. If any one of these individuals whatsoever be judged and punished, the agents of the railway must at once deliver him over upon being informed by the local authorities, and they may not stand in the way of justice by extending their protection over him.

The local authorities must likewise, at the request of the European agents, arrest and punish according to law all such Chinese agents as may have been guilty of crimes, thefts or misdeeds towards the foreign agents.

If it be found that any of the foreign agents offend against the proprieties or infringe the rules, they must be dealt with in accordance with the articles of the treaties. The Chinese and foreign laborers, and the agents, without distinction of nationality, must not arbitrarily force their way into the dwelling of anyone else, and thus give rise to incidents with the people. Those who disregard this rule will be severely dealt with, in accordance with the law.

All purchases of articles of provisions must be paid for equitably at the market price.

ARTICLE XV. For the purpose of guaranteeing tranquility in the yards, the Company, in agreement with the High Functionary residing at Mengtsz, may at its own expense enroll native militia, and choose Chinese or European chiefs of police who will command them and will select the important points at which these police forces are to be placed with a view to maintaining order; in case the native militia should be inadequate (impuissantes), the High Authorities of Yunnan must, upon a request being addressed to them by the agents of the railway, dispatch detachments of regular soldiers to such points. The militia enrolled by the Company shall have no other function than to exercise police control over the yards and among the laborers.

After the completion of the line, these militia troops may be employed at the expense of the Company for the upkeep of the line. In all cases, the protection of the work from any trouble on the part of the population is a matter for the Authorities of the Province, on their sole responsibility. The Company must not in any case call in European troops.

ARTICLE XVI.-When the agents of the railway arrive in Yunnan, the Vice Consul at Hokow will give notice thereof to the Vice Commissioner of the Frontier who resides in that City. The latter will within three days deliver to those concerned temporary passports permitting them to enter the territories of Yunnan. When the agents arrive at Mengtsz, the Customs Taotai will within. three days have a regular passport made out, to be substituted for the other.

The agents furnished with such passports in conformity with the rule will receive, in all their movements, complete protection on the part of the local authorities, but the authorities will take no responsibility in regard to any person who should not be supplied with such a passport.

ARTICLE XVII.-When the agents for the work arrive in Yunnan, their names must be transcribed into Chinese characters, and brought by the Consuls to the knowledge of the High Authorities of the Province. A register, in which these names will be recorded, will be kept by both parties. These names cannot thereafter be changed under any pretext.

Every change or change of residence of the agents must likewise be brought to the knowledge of the authorities, in order to facilitate investigations whenever and wherever necessary.

The names carried in the registers must be identical with those written in the passports: there must be no discrepancy.

ARTICLE XVIII.-For the renting of houses for the agents of the work in the vicinity of the line, official notice must be given to the local authorities, after which negotiations are to be carried on with the owners of the houses. A copy of the contract of lease must be sent to the local authorities, who will retain it in their archives.

ARTICLE XIX.-In going about their duties the agents of the work, as also the laborers, must be careful of private property. Whenever damage may have been caused, whether to buildings or to cultivated places, a valuation will be undertaken with the local authorities, and the amount of indemnification to be paid will be determined by agreement in such manner as to show real kindness towards the population.

ARTICLE XX.-The customs regulations forbid in principle the importation of powder and explosives. Inasmuch, however, as these products are indispensable for use in the construction of a railway line, it is necessary to make an exception to the rule, and to permit their entry. A declaration of the quantities of powder and explosives to be entered must as a matter of course be made to the Customs in due time, and after an examination shall have been made of the products, suitable places will be selected, by agreement with the local authorities, for the construction of storage magazines in order to prevent any accident.

If it is more advantageous to manufacture these products locally, that fact should be communicated in advance to the High Authorities of Yunnan, who, on ascertaining that there is no objection, will grant permission to establish special factories, and will name delegates to supervise in common and to control the manufacture. Whether the explosives be imported or manufactured locally, they are in either case to be limited to the quantities absolutely necessary.

A special register will be kept, in which will be noted with the utmost detail the exact quantities of such products on hand in the magazine. Each month, the local authorities will make an inspection thereof and draw up a report. The powder and the explosives will be used strictly for the work of the railway, and none can be sold. All precautions of prudence must be taken so that no harm may result to the population. If by any accident persons or

stock are injured, or if properties are damaged, an indemnification must be paid or a gift for relief be made, in accordance with the circumstances.

ARTICLE XXI.-When the railway has been finished and is in operation, the import and export duties will be levied on imported and exported goods according to the tariff. Goods despatched into the interior, having paid the transit dues, will no longer be liable to any tax at the Likin offices; but they will pay the Customs and Likin duties at the Customs and Likin offices if they have not paid the transit dues.

China must hereafter give attention to the question of increasing the Customs offices in order to facilitate verification. Later, when the rules in regard to the increase of Customs duties shall have been fixed, the goods transported by the line must be dealt with in accordance with these new tariffs.

ARTICLE XXII.-The machinery, equipment and materials necessary for the construction and the operation of the railway shall not be subject to any Customs duties upon importation. These articles will, at the time of being entered, be the subject of a declaration at the first Chinese station at which there is a Customs office, but without the builders having to transport the material beyond the point where it is to be used. This declaration will specify the number and the character of the articles imported.

ARTICLE XXIII.—The passenger and freight tariffs will be fixed by the concessionary Company.

The dispatches and official letters sent by the High Chinese Authorities, as also the mail bags of the Administration of Chinese Imperial Posts, with a messenger, will be transported without charge in the regular trains.

The Chinese Posts may rent from the Company a car for the transportation of letters, or themselves provide a special car which the Company must attach to the trains. They may at any time whatever have a special postal train dispatched. The charge for the rent of a postal car will be half of the price for a passenger car. This price cannot be further reduced.

To send a special postal train, a certificate from the High Authorities of Yunnan will be required. There will be a special reduced price therefor. The price is not to exceed fr. 1.50 per kilometer traversed, with a single engine, or fr. 2.50 per kilometer traversed, with two engines. It is understood, moreover, that the postal regulations in force in China must be complied with.

If the Chinese Government has occasion to dispatch troops of any sort, or arms or munitions or provisions for such troops, or assistance in kind to be distributed gratuitously (in case of famine or other disaster), such consignments shall have the right of way over all other transportation, and the price will be half that of the ordinary tariff. This reduction will not apply to troops traveling in the fourth class.

ARTICLE XXIV.—The present railway line having as its sole purpose the facilitation of commerce, once it has been built and train traffic has commenced, the use of it will not be permitted for the purpose of transporting Annamite salt, or European troops, or military arms, or munitions which might serve for the use of such European troops. It must not carry articles forbidden by the laws of China.

If China has a war with a foreign nation, the railway may not observe the rules of neutrality; it will be at the entire disposal of China.

ARTICLE XXV.-There shall be paid to the Chinese Government by the Railway Administration a yearly sum of twenty francs per kilometer of the railway under construction or in operation, in repayment of its expenses in guarding the railway.

ARTICLE XXVI.-When the railway line shall have been completed, use must so far as possible exclusively be made of Chinese as guards for the track and as laborers on the work of its upkeep. In each locality, one of the elders who is most worthy of confidence will be entrusted with arranging for employment, in order that the individuals so employed may be peaceable and honest folk.

In order to facilitate the control of them, each of the employees will be furnished by the local authorities with a card, which will be asked for them by the notable entrusted with recruiting them.

ARTICLE XXVII.-If in the course of operation of the railway damages should be caused to property, or injuries should be occasioned to individuals, through accidents attributable to the operating Company, the latter must make an allowance for relief, or pay an indemnity to remedy the damage caused by its act.

It will be the same in the case of damages or injuries caused by a faulty management of the trains put into operation before the full completion of the work.

ARTICLE XXVIII.-Special schools may be established at the expense of the Company, where the Chinese will be taught with a view to their becoming interpreters and technical agents.

Afterwards, when the Administration of the Railway is in need of personnel, it shall choose first of all from among the students trained in these schools.

ARTICLE XXIX.-The Administration of the Railway may, as the opening of the several sections proceeds, build the telegraph or telephone line to follow the track. These lines will be solely for the service of the railway, and may not receive or dispatch telegrams for the public.

ARTICLE XXX.-All questions concerning the railway that shall require agreement with the High Provincial Authorities shall be discussed between the Consul General of France and the High Provincial Authorities.

It is understood that when technical questions are concerned, the judgment of the engineers will be accepted.

ARTICLE XXXI.-When the work on the line begins, notice thereof will be given by official letters from the Consul General to the High Authorities of Yunnan, and the latter will immediately designate a high official personage for the purpose of consulting, throughout the length of the line, with the agents of the railway, in order to adjust in accord with them matters concerning the execution of the work in accordance with the understanding arrived at between the Consul General and the High Provincial Authorities. The latter likewise consent to delegate a certain number of functionaries to whom they will give