both the Imperial Maritime Customs and the Native Customs shall be placed under the control of the Customs Taot'ai, and that the Chinese Government shall for the present deposit the receipts of both said customs with the Yokohama Specie Bank, and that hereafter when the Bank of the Board of Finance shall have established a branch (at Ying-k'ou) the receipts shall be deposited with both banks; now therefore we, representatives of the two Governments concerned, have agreed that the local authorities concerned and the Yokohama Specie Bank shall together arrange the terms of such deposit with the Yokohama Specie Bank at Ying-k'ou.

6. The military government at Ying-k'ou agree that on the sixth of December, 1906, it will entirely withdraw from said port.

(Dated) Ming-chih (Meiji) XXXIX Year, 12th Month, 5th Day. Kuang Hsü XXXII Year, 10th Moon, 20th Day. (December 5, 1906.) MORITARO ABÉ,

(Signed)

First Secretary, Japanese Legation,
ANANOSHIN SEGAWA,

Japanese Consul at Newchwang,

Lieut. Colonel KIKEI YOKURA,

Representatives of the Imperial Japanese Gov't.
LIANG JU-HAO [M. T. LIANG],

Intendant of the Chin-chen-Shan-hai-kuan Circuit,
Representative of the Imperial Chinese Gov't.

NUMBER 1907/1.

GERMANY AND RUSSIA.

Exchange of notes concerning the reciprocal protection of trademarks in China.‡ -February 1, 1907.

Note of the GERMAN MINISTER at Peking to THE RUSSIAN MINISTER, UNDER DATE OF JANUARY 19/FEBRUARY 1, 1907.

By your dispatch of today's date § your Excellency was so good as to inform me that as the Government of Russia is desirous of arriving at an understanding with the Government of Germany concerning the reciprocal protection in China of trademarks (i. e., marques de fabrique et de commerce) duly registered in Russia and in Germany, you had been authorized by the Minister for Foreign Affairs of Russia to declare to me that the Government of Russia is ready to enforce, through its consular tribunals in China, all claims relating to the infringement of trademarks (i. e., marques de fabrique et de commerce), duly registered Translation from the French text as printed in Izviestia, 1914, vol. I, p. 7.

The note referred to was identical, mutatis mutandis, with that addressed to the British Minister on October 16/29, 1906 (No. 1906/8, ante).

in Russia, committed by Russian subjects against German nationals (i. e., ressortissants allemands).

In reply to this communication I have the honor to bring it to the knowledge of your Excellency that my Government gladly accedes to the proposed agreement and has authorized me to take steps to that end herewith. I am authorized to declare, for my part, to your Excellency that the Government of Germany will assure the protection in China of trademarks (i. e., marques de fabrique et de commerce), the property of Russian nationals (i. e., ressortissants russes), regularly registered in Germany, which may have been infringed by German nationals (i. e., ressortissants allemands).

The consular tribunals of Germany in China will therefore take jurisdiction of all claims that may be presented them in such cases by Russian nationals (i. e., ressortissants russes).

Accept, etc.

(Sgd.)

REX.

NUMBER 1907/2.

GREAT BRITAIN (British and Chinese Corporation, Limited) AND CHINA. Agreement for the issue and regulation of a loan for the construction of the Canton-Kowloon Railway.*-March 7, 1907.

This Agreement is made at Peking on the twenty-third day of the first month of the thirty-third year of Kwang Hsu, corresponding to the seventh day of March, 1907, and the contracting parties are:

The Wai-Wu-Pu acting under the authority of an Imperial Decree, of the one part, and the British and Chinese Corporation, Limited, (hereinafter called the Corporation) of the other part.

Whereas a preliminary agreement was made on the 28th March, 1899, between H. E. Sheng, Director General of the Imperial Chinese Railway Administration, acting under the authority of the Tsung-li Yamen, of the one part, and the British firm of Jardine, Matheson and Company, for themselves and on behalf of the Hongkong and Shanghai Banking Corporation, representing as Joint Agents the Corporation, of the other part, and it was part of the objects thereof that the terms of another preliminary agreement signed by the same contracting parties on the 13th May, 1898,† should be thereby adopted as a preliminary agreement for the construction and working of a Railway from the city of Canton to the boundary of the Kowloon leased territory under British control, subject, however, as far as might be practicable, to the terms and con*Text as printed in Wang, p. 361. Printed also in Kent, p. 287; F. E. Review, vol. V p. 148. See Note to this document, post, p. 626.

+ Preliminary agreement for the Shanghai-Nanking Railway, attached to the final contract of July 9, 1903 (No. 1903/2, ante).

ditions thereafter agreed to in the final contract for the Shanghai-Nanking Railway when signed and ratified.

Now it is hereby agreed by and between the parties hereto as follows:ARTICLE 1.-The Corporation agrees to issue, on behalf of the Imperial Chinese Government, a sterling loan (hereinafter referred to as "the Loan") for the amount of £1,500,000 on the terms and conditions hereinafter contained. Imperial Chinese Government Bonds are to be issued for the entire amount, similar to the Bonds of the Shanghai-Nanking Railway, with the Railway as first mortgage security therefor. The Loan shall be in one issue, and the price agreed upon is 94% of the nominal value, subject to the other provisions of this Article as hereinafter stated. The interest on the Bonds shall be at the rate of 5% per annum on their nominal value, payable half-yearly, on the first day of June and the first day of December, and shall be calculated from the date of their sale to the public.

The Loan shall be issued to the public as soon as possible after signing this Agreement, but, if at the date of signature thereof, owing to an unfavorable state of the market rendering the issue of the Loan and the payment of its proceeds to the Viceroy of Canton impossible on the terms above named, then in such case the Corporation shall thereafter, at such times as the Chinese Government may decide within a period not exceeding eight (8) months, issue the Loan and pay the proceeds thereof to the Viceroy, deducting and retaining six (6) points from the rate at which the Loan is actually issued to the public, whatever that rate may be, (i. e. if the issue price be 101 the Viceroy will receive 95 and so on).

Subject to the provisions of Article 16, the duration of the Loan is fixed at thirty (30) years commencing from the date of the signature of this Agreement, but no interest shall be paid on any Bonds which may be redeemed or cancelled under the terms hereinafter mentioned after the redemption or cancellation thereof.

On the face of each of these Bonds shall be expressed the value thereof in the sum of £100, or in such different amounts as the Chinese Minister in London in consultation with the Corporation may sanction.

It is understood that the Chinese Government may hereafter, in its discretion, appoint a Director General of the Railway upon whom, in such case, will devolve all the powers, functions and responsibility herein attributed to the Viceroy of Canton (hereinafter called the Viceroy).

ARTICLE 2.-The proceeds of the Loan are to be used in the construction and equipment of the Railway, and in paying interest on the Loan during the course. of construction.

The Railway, being the first mortgage security for the Loan, shall be built and equipped under the direction of the Viceroy, in accordance with the provisions of Article 6 hereinafter, and shall be built as economically as possible in accordance with the best modern system.

It is understood that the Viceroy will secure all the necessary land for the Railway, and will give the necessary instructions to expedite and facilitate the work of construction. The Railway will be built in the first instance as a single

line, but provision will be made, with the approval of the Viceroy, and wherever necessary to meet traffic requirements, for the eventual construction of a double -line.

If, during the time of construction, the proceeds of the Loan, together with the accrued interest thereon, payable by the Corporation, should, after the deduction of the sums necessary for the payments of interest on the Loan, be insufficient to complete the construction of the Railway, the amount of the deficiency shall either be provided from the Chinese Government's own resources or by a Supplementary Loan to be hereafter issued by the Corporation, the interest and other conditions of which Supplementary Loan shall be arranged when the time arrives, having due regard to the conditions of the money market.

When the Railway is complete, if there is a surplus from the sale of Bonds, the said surplus shall be at the disposal of the Chinese Government either to redeem the Bonds in accordance with the terms of this Agreement as hereinafter stated, or to be placed on deposit with the Hongkong and Shanghai Banking Corporation for the purpose of paying interest on the loan, or for other purposes beneficial to the Railway, in regard to which the Viceroy will communicate in due course with the Corporation.

In all matters relating to the construction of the Railway it is expressly agreed that particular heed shall be paid to the opinions and habits of the Chinese people, and that, when practicable, Chinese shall be employed in positions of trust and responsibility in connection with the Railway.

In regard to earthwork, or such other work as Chinese are competent to perform, contracts shall be entered into for such work with Chinese, under the sanction of the Head Office, and the work itself shall be carried out in accordance with plans and specifications of the Engineer-in-Chief and under his supervision.

Detailed plans and estimates of cost, whether of the respective sections of the Railway, or of any alterations of the same, are to be submitted for the approval of the Viceroy, by the Engineer-in-Chief through the Managing Director.

ARTICLE 3.-The Loan shall be secured by mortgage declared to be now entered into in equity by virtue of this Agreement, and shall, as soon as possible hereafter, be secured by a specific and legal first mortgage in favour of the Corporation upon all lands, materials, rolling stock, buildings, property and premises, of every description purchased or to be purchased for the Railway, and on the Railway itself, as and when constructed, and on the revenue of all descriptions derivable therefrom.

The provisions of this Article in respect of the mortgage, are to be construed and treated as equivalent in purport and effect to a mortgage customarily executed and delivered in England to a Trustee for the purpose of securing Loans and Bond Issues upon Railway properties in foreign countries.

ARTICLE 4. It is hereby agreed that in six (6) months after this agreement is signed, the Corporation shall provide the amount necessary to proceed with the detailed survey of the Railway, and for preliminary construction work if

necessary, whether this amount comes from the sale or hypothecation of the Bonds, or from advances made, provided that Bonds for the required amount shall have been executed and delivered to the Corporation. If, after expiration of eight (8) months from the date of the ratification hereof, the work of construction shall not have been begun on the Railway, this Agreement is to become null and void, but if failure to commence construction be due to any cause of force majeure, a reasonable extension of this time limit shall be arranged between the Viceroy and the Corporation.

Of the proceeds realized from the sale of the Bonds, after deducting so much of them as may be required to be kept in England for the purchase of materials and the payments of contracts there, or for repayment of advances, such amounts as may be estimated and certified to by the Engineer-in-Chief to the Viceroy through the Managing Director, as being actually required for the construction of any particular section of the Railway, may be ordered by the Viceroy, after consideration, to be transferred to Hongkong to be kept in the Hongkong and Shanghai Bank, and placed to the credit of the construction account of the Railway for the exclusive purpose of constructing the Railway in the manner herein provided for under the supervision of the Head Office and the Viceroy.

On each occasion of a remittance being made to China, the amount realised in Sycee will be reported to the Viceroy, and any portion which may not be required shall be placed at interest. Similarly, the balance in England shall be placed at interest, to be allowed at the usual rate.

The accounts of the money spent from time to time in England, and of the money transferred to the credit of the construction and other accounts for use in China, are to be submitted quarterly to the Head Office for report to the Viceroy for the information of the Waiwupu, and for his further report to the Board of Revenue, and the Board of Communications, for record therein, after such accounts have been approved and signed by him.

ARTICLE 5.-As to the form of the Bond, it is to be agreed upon by the Viceroy or by the Chinese Minister in London and the Corporation, as soon as possible after the signature of this Agreement, but if, hereafter, the money markets in London or other countries require any modification of the form of the Bond, except in anything that affects the amount of the Loan and the liability of the Chinese Government, which are not to be touched at all, such slight modifications may be made to meet the views of the money markets by the Corporation in consultation with the Chinese Minister in London.

Any modifications are to be reported at once by the Corporation to the Viceroy for the approval of the Waiwupu.

The Bonds are to be engraved entirely in the English language, and shall bear the fac-simile of the signature of the Viceroy and of his seal of office, in order to dispense with the necessity of signing them all in person, but the Chinese Minister in London shall, previous to the issue of any Bonds, put his seal upon each Bond with a fac-simile of his signature, as a proof that the issue and sale of the Bonds are duly authorised and binding upon the Chinese Government.

Such Bonds are to be numbered consecutively, and as many Bonds as may