however, become evident that Corea, owing to its close proximity to the Japanese Empire and its inability to stand alone, must fall under the control and tutelage of Japan.

"His Majesty's Government observe with satisfaction that this point was readily conceded by Russia in the Treaty of Peace recently concluded with Japan, and they have every reason to believe that similar views are held by other Powers with regard to the relations which should subsist between Japan and Corea.

"His Majesty's Government venture to anticipate that the alliance thus concluded, designed as it is with objects which are purely peaceful and for the protection of rights and interests the validity of which cannot be contested, will be regarded with approval by the Government to which you are accredited. They are justified in believing that its conclusion may not have been without effect in facilitating the settlement by which the war has been so happily brought to an end, and they earnestly trust that it may, for many years to come, be instrumental in securing the peace of the world in those regions which come within its scope.

"I am, &c.,

(Signed)

A similar despatch was addressed to the British Ambassador at Paris.

LANSDOWNE."

NUMBER 1905/7.

THE UNITED STATES (American China Development Company) AND CHINA.

Agreement to sell the Canton-Hankow Railway.*—August 29, 1905.

This 29th of August, 1905, Chang, Hukuang Viceroy, representative of the three provinces of Hunan, Hupeh, and Kwantung, and Liang, Envoy to the United States of America and Mexico, acting on behalf of the Government of the Chinese Empire, party of the first part; and the China Development Company, of the State of New Jersey, U. S. A., party of the second part; enter into the following agreement:

WHEREAS, by an Agreement of the 14th April 1898, made at Washington, U. S. A., and by a supplementary agreement on 13th July 1900, the party of the second part was invested with power to construct in the Empire of China a railway from Hankow city to Canton city, together with the right to operate the same; and WHEREAS, previous to the 7th of June 1905, the Imperial Chinese

*For the texts of the contracts of April 14, 1898, and July 13, 1900, granting the concession for the Canton-Hankow (or Yüeh-Han) Railway, see Rockhill, p. 252; and in connection with them, see (in Rockhill, p. 345, and in China, 1899, No. 1, p. 322) the memorandum of agreement between the British and Chinese Corporation and the American China Development Company in regard to participation in railway business in China, signed February 1, 1899, but subsequently determined in accordance with the provisions of its 7th Article.

In reference to the cancellation of the concession, see For. Rel., 1905, pp. 124 et seq. See the agreement between the Viceroy of the Hu-Kuang and the Government of Hongkong for a loan of £1,100,000 for the redemption of the concession (No. 1905/9, post). The construction of the Canton-Hankow Railway has not yet been completed. The southern portion of the line, within the Province of Kuangtung, is owned by a provincial railway company, which has carried construction from Canton to the vicinity of Shiuchow, about seventy miles south of the boundary between Kuangtung and Hunan. The northern section, lying within Hupeh and Hunan, is included under the Hukuang Railway loan agreement of May 20, 1911 (No. 1911/5, post); the line is in operation from Wuchang (on the Yangtsze River, opposite Hankow) to Chuchow (about forty miles south of Changsha), leaving approximately two hundred miles to be constructed in the Province of Hunan.

Government cancelled the two agreements or the special powers aforesaid, declaring its determination itself to deal with the railroad in the said agreement referred to and duly notified the party of the second part of said cancellation of the agreement above mentioned; and WHEREAS, the two parties to the agreement have agreed that the amount as such compensation to be paid by the party of the first part to the party of the second part shall be Six Million, seven hundred and fifty thousand American Gold Dollars; Now the terms decided upon are set forth in a preliminary contract as follows:

PRELIMINARY CONTRACT agreed upon between the Imperial Chinese Government and the China Development Company of the United States of America:—

WHEREAS the Chinese Government cancels and annuls the special powers for building the Yueh-han Railway and its agreement and does not authorize the China Development Co. to proceed with the railway work, but is willing to pay compensation at a fair rate, this compensation is fixed at a total sum of Gold $6,750,000.00. The Chinese Government may take over and control all the Development Company's property in China, the railway already built, the railroad materials, surveys and plans, special mining powers, together with all powers and privileges in China thereunto appertaining, whether express or implied, whatsoever absolutely. The Chinese Government loan bonds already taken up by the Development Company, apart from the $2,222,000.00 already sold, shall all be returned to the Chinese Government's custody. As regards the $2,222,000 already sold, the buyers may either retain or return them at their option and if the buyers choose to retain them either wholly or in part, the amount, at the rate of $90 per $100 shall be deducted from the total sum of $6,750,000. Provided in any case the $55,550 of interests accrued thereon and due on these $2,222,000 bonds upon 1st May 1905 must be duly paid by the Chinese Government within three months from the date of these presents, the Chinese Government must pay an instalment amounting to two millions of the total sum of 634 millions of dollars and the balance within six months of the said date unto the China Development Company. It is agreed that the said payments shall be duly provided by the Chinese Government which shall on each instalment pay in addition interest at the rate of 5% per annum from the first day of May 1905 to the date of the payment of the same.

The foregoing agreement requires confirmation by the Chinese Government and the Development Company's shareholders to render it binding. Signed this 7th of June 1905 by

FOSTER ROOTS,
YING KO-LAN.

AND WHEREAS, the shareholders of the party of the second part did on the 29th of August 1905 in meeting assembled duly confirm the foregoing preliminary contract and a majority of the shareholders and directors of the said party of the second part have authorized the carrying out of the foregoing preliminary agreement, the managers of the party of the second part are able to complete the Agreement necessary for the carrying out of this contract.

AND WHEREAS, a decree of H. M., the Emperor of China, has duly confirmed the above draft and appointed Chang, Hukuang Viceroy, and Liang, Envoy, to carry out the original contract, Now THEREFORE the two parties agree as follows:

The party of the first part agrees to give to the party of the second part American Gold Dollars 634 millions together with interest at 5% per annum from 1st May 1905 to date of payment whether one or several in the manner following, that is to say on or before 7th September 1905 there shall be paid two millions and the balance on or before December 1905 by the party of the first part at New York in American Gold Dollars to the party of the second part in full from the party of the first part, the party of the second part shall thereupon be fully divested of all the special powers arising from all agreements aforesaid and any and every demand which on account of the cancellation of such agreements aforesaid could be made on the Imperial Chinese Government. AND in accordance with the above arrangement, the party of the second part shall return in full to the party of the first part the property in China of the China Development Company, the railroad complete, the railroad materials, plans, surveys, all special mining powers together with all property in China of the China Development Company whatsoever whether express or implied.

The two parties to this agreement both are desirous that the Imperial Government of China shall take over full control of the property in China accruing to the party of the second part under each of the above referred agreements, but they mutually declare that until payment of the final instalment, all present conditions shall remain unchanged and the status and privileges of the party of the second part shall not on any account of this agreement be altered. They mutually declare further that the party of the second part shall within forty days from date hereof notify the party of the first part of the retention or delivery to the party of the first part of the $2,222,000 of loan bonds of the Imperial Chinese Government already sold. Should the holder or holders of such bonds not inform the party of the second part in due time of his or their determination, the said holder or holders shall thereby be taken to have elected to retain the loan bonds and the party of the first part shall be at liberty for every bond retained at the rate of 90 cents to the $ to deduct from the final payment the amount thereof. The party of the first part agrees to pay on the loan bonds already sold the interest from the 1st May 1905 due up to or before the 7th September 1907 and further to pay principal and interest when due to the holders of all loan bonds retained, and it is mutually agreed that the preliminary Agreement of 7th June 1905 having been recognized as valid by both parties shall be thoroughly carried out.

On the day and year just above mentioned the party of the first part through Hukuang Viceroy Chang and Envoy Liang in virtue of Imperial Decree sign this agreement in duplicate and the party of the second part through the General Manager and Secretary of the said Company sign this Agreement in duplicate and affix the seal of the said Company in token of good faith.

Signed by Hukuang Viceroy Chang, representing Hunan, Hupeh and Kwangtung, by Liang, Envoy.

By General Manager of the China Development Company,

By Secretary of the China Development Company,. . . . . . Witnesses:

YING KO-LAN
FOSTER.

WHITTIER.

?

NUMBER 1905/8.

RUSSIA AND JAPAN.

Treaty of peace.*—September 5, 1905.

His Majesty the Emperor of Japan on the one part, and His Majesty the Emperor of all the Russias on the other part, animated by the desire to restore the blessings of peace to Their countries and peoples, have resolved to conclude a Treaty of Peace, and have, for this purpose, named Their Plenipotentiaries, that is to say:

His Majesty the Emperor of Japan:

His Excellency Baron Komura Jutaro, Jusammi, Grand Cordon of the Imperial Order of the Rising Sun, His Minister for Foreign Affairs, and

His Excellency M. Takahira Kogoro, Jusammi, Grand Cordon of the Imperial Order of the Sacred Treasure, His Envoy Extraordinary and Minister Plenipotentiary to the United States of America;

and His Majesty the Emperor of all the Russias:

His Excellency M. Serge Witte, His Secretary of State and President of the Committee of Ministers of the Empire of Russia, and

His Excellency Baron Roman Rosen, Master of the Imperial Court of Russia and His Ambassador Extraordinary and Plenipotentiary to the United States of America;

Who, after having exchanged their full powers which were found to be in good and due form, have concluded the following Articles:

ARTICLE I.-There shall henceforth be peace and amity between Their Majesties the Emperor of Japan and the Emperor of all the Russias and between Their respective States and subjects.

ARTICLE II.-The Imperial Russian Government, acknowledging that Japan possesses in Corea paramount political, military and economical interests, engage

* English text as printed in Traités et Conventions, p. 585. Printed also, in French text, on p. 97 of the Orange Book containing protocols of the Portsmouth peace conference, published by the Russian Ministry for Foreign Affairs, St. Petersburg, 1906; Hertslet, p. 608; Recueil, p. 741. See Note to this document, post, p. 527.

neither to obstruct nor interfere with the measures of guidance, protection and control which the Imperial Government of Japan may find it necessary to take in Corea.

It is understood that Russian subjects in Corea shall be treated exactly in the same manner as the subjects or citizens of other foreign Powers, that is to say, they shall be placed on the same footing as the subjects or citizens of the most favoured nation.

It is also agreed that, in order to avoid all cause of misunderstanding, the two High Contracting Parties will abstain, on the Russo-Corean frontier, from taking any military measure which may menace the security of Russian or Corean territory.

ARTICLE III.-Japan and Russia mutually engage:

1. To evacuate completely and simultaneously Manchuria except the territory affected by the lease of the Liao-tung Peninsula, in conformity with the provisions of additional Article I. annexed to this Treaty; and

2. To restore entirely and completely to the exclusive administration of China all portions of Manchuria now in the occupation or under the control of the Japanese or Russian troops, with the exception of the territory above mentioned.

The Imperial Government of Russia declare that they have not in Manchuria any territorial advantages or preferential or exclusive concessions in impairment of Chinese sovereignty or inconsistent with the principle of equal opportunity.

ARTICLE IV.-Japan and Russia reciprocally engage not to obstruct any general measures common to all countries, which China may take for the development of the commerce and industry of Manchuria.

ARTICLE V.-The Imperial Russian Government transfer and assign to the Imperial Government of Japan, with the consent of the Government of China, the lease of Port Arthur, Talien and adjacent territory and territorial waters and all rights, privileges and concessions connected with or forming part of such lease and they also transfer and assign to the Imperial Government of Japan all public works and properties in the territory affected by the above mentioned lease.

The two High Contracting Parties mutually engage to obtain the consent of the Chinese Government mentioned in the foregoing stipulation.

The Imperial Government of Japan on their part undertake that the proprietary rights of Russian subjects in the territory above referred to shall be perfectly respected.

ARTICLE VI.-The Imperial Russian Government engage to transfer and assign to the Imperial Government of Japan, without compensation and with the consent of the Chinese Government, the railway between Chang-chun (Kuancheng-tzu) and Port Arthur and all its branches, together with all rights, privileges and properties appertaining thereto in that region, as well as all coal mines in the said region belonging to or worked for the benefit of the railway.

The two High Contracting Parties mutually engage to obtain the consent of the Government of China mentioned in the foregoing stipulation.

ARTICLE VII.—Japan and Russia engage to exploit their respective railways