China with 10% of the total rates charged. The amount of such credit shall be accounted for in the monthly balance sheet.

ARTICLE XI.—The checking of the amount of correspondence exchanged over the said cable shall take place daily by wire between the offices of exchange. The settlement of accounts shall take place at the end of each month, and the resulting balance shall be paid one month thereafter either to Japan in Tokio or to China in Shanghai, as the case may be.

For the purposes of this Arrangement the year and month shall be reckoned according to the Gregorian calendar and the English language shall be used in all communications between the telegraph offices of the two contracting parties.

ARTICLE XII.-The liquidation of accounts shall be made in Mexican Dollars. As regards outpayments to other telegraph Administrations the collecting rate shall be quarterly agreed upon between the two contracting parties during the month preceding the quarter for which the rate is to rule, on the basis of the average bank rate of exchange at Shanghai for the three months preceding that in which the rate is fixed.

In case it is necessary at any time to fix the collecting rate for the fraction of a quarter, the average bank rate of exchange ruling at Shanghai for the quarter immediately preceding such fraction of a quarter shall be taken as the basis.

ARTICLE XIII.-The charges for press telegrams via the said cable shall be fixed by a later agreement between Japan and China.

ARTICLE XIV.-Unless otherwise provided in the present Agreement, the rules laid down in the existing International Telegraph Convention and the Regulations attached thereto shall be observed with regard to telegrams transmitted over the said cable.

ARTICLE XV. The present Agreement shall be submitted to the Governments of Japan and China respectively for approval and shall come into operation from the day on which announcements of such approval are exchanged. It shall remain in force until modified or abrogated by mutual consent.

In witness whereof the undersigned, duly authorised by their respective Governments, have signed the present Agreement.

Done in Tokio, in English, in duplicate, this seventh day of the month of November, 1908.

NUMBER 1908/17.

JAPAN AND CHINA.

Agreement concerning the working of the Japanese and Chinese telegraph lines in Manchuria.*-November 7, 1908.

In conformity with the provisions of the Telegraph Convention of the 12th October, 1908, between Japan and China, the two Governments have, for the purpose of facilitating the due and proper working of their respective telegraph lines in South Manchuria, concluded the following Supplementary Agreement:

ARTICLE I-a. In order to facilitate the exchange of telegraphic traffic between the Japanese and Chinese systems, China shall connect her telegraph offices at Antung, Newchwang, Liaoyang, Mukden, Tehling and Changchun with the respective Japanese telegraph offices within the railway zone at these places.

b. On the telegraphic traffic handled by the Japanese offices in Manchuria, a royalty will be paid by Japan to China.

c. All messages destined for places in China, outside the Japanese system, and beyond, directed by the senders "via the Chinese lines," duly tendered for transmission to the Japanese offices within the railway zone, as well as diverted Japanese traffic, shall be accepted by such offices and handed over to the nearest connecting Chinese offices, full transmission rate being credited by Japan to China on such traffic less 5 Mexican Dollar cents per word.

d. All messages destined for places in China and beyond, directed by the senders "via the Chefoo-Kwantung cable," duly tendered to a Chinese office for transmission shall be accepted by it and handed over to the nearest connecting Japanese office. On such traffic China shall credit Japan with the rates specified in Article VIII of the Agreement regarding the working of the Chefoo-Kwantung cables.

e. All traffic destined for places on the Japanese system in Manchuria, duly handed in at or transmitted to a Chinese office in Manchuria for transmission, shall be handed over to the nearest connecting Japanese office. On such traffic China shall credit Japan with 5 Mexican Dollar cents per word.

ARTICLE II.-Japan undertakes not to establish competition, by lower rates or other means, against China. This engagement does not, however, apply to traffic forwarded exclusively over the Japanese lines.

ARTICLE III. For telegrams handed over to the connecting Chinese offices in Manchuria, Japan shall collect the rates fixed for the time being by China,

*Text as printed in Customs, vol. II, p. 749, with addition of preamble.

In connection with this agreement see also the Sino-Japanese telegraph convention of October 12, 1908 (No. 1908/15, ante).

and on such traffic Japan shall credit China with full transmission rates less 5 Mexican Dollar cents per word. The necessary tariff schedule shall be supplied to Japan by China.

ARTICLE IV.-Unless otherwise provided in the present Agreement the rules laid down in the existing International Telegraph Convention and the regulations attached thereto shall be observed with regard to telegrams transmitted over the connecting lines.

ARTICLE V.—The charges for press telegrams exchanged between the Japanese and Chinese offices in Manchuria shall be fixed by a later agreement between Japan and China.

ARTICLE VI.-Special accounts of all telegraphic traffic exchanged shall be kept at the offices where such exchange takes place, and shall be compared and checked daily. The settlement of accounts shall take place at the end of each month and the resulting balance shall be paid, one month thereafter, to Japan in Tokio or to China in Shanghai, as the case may be. For the purposes of this arrangement the year and month shall be reckoned according to the Gregorian calendar and the English language shall be used in all communications between the telegraph offices of the two contracting parties.

ARTICLE VII.-The liquidation of accounts shall be made in Mexican Dollars. As regards outpayments to other telegraph Administrations the collecting rate shall be quarterly agreed upon between the two contracting parties during the month preceding the quarter for which the rate is to rule, on the basis of the average bank rate of exchange at Shanghai for the three months preceding that in which the rate is fixed. In case it is necessary at any time to fix the collecting rate for the fraction of a quarter, the average bank rate of exchange ruling at Shanghai for the quarter immediately preceding such fraction of a quarter shall be taken as the basis.

ARTICLE VIII.-Neither of the contracting parties shall take into its telegraph service in Manchuria or Chefoo any person who is engaged or has been engaged within the three previous months in the same service of the other party without in each case obtaining the special consent of the latter.

ARTICLE IX.-All telegraph lines constructed by Japan in South Manchuria outside the railway territory shall, at the time the present Agreement takes effect, be delivered to China and the sum of Yen 50,000 shall be paid by China to Japan in Tokio as soon as such delivery shall have been completed.

The delivery of the telegraph lines mentioned above shall be effected by special commissioners appointed by the two contracting parties for that purpose.

ARTICLE X.-The present Agreement shall be immediately submitted to the Governments of Japan and China respectively for approval and shall come into operation from the day on which announcements of such approval are exchanged. It shall remain in force until modified or abrogated by mutual

consent.

In witness whereof the undersigned, duly authorised by their respective Governments, have signed the present Agreement.

Done at Tokio, in English, in duplicate, this seventh day of the month of November, 1908.

Supplementary agreement for a loan for the Hsinmint'un-Mukden and KirinCh'angch'un railways.*—November 12, 1908.

According to Article 4 of the Hsin-Feng (i.e., Hsinmin-Mukden) and ChiCh'ang (i.e., Kirin-Changchun) Railway agreement between the two Governments of Japan and China, dated Meiji, 40th year, 4th month, 15th day/Kuangshü 33rd year, 3rd month, 3rd day (April 15, 1907), it was agreed that, before settling the loan contract for the said railways, the two Governments should draw up a supplementary agreement regarding matters not settled in the original agree

ment.

Now the two officials designated below have concluded the following agreement:

ARTICLE I.-It is agreed by Articles 1 and 2 of the Hsin-Feng and ChiCh'ang Railway agreement between the Governments of Japan and China (hereafter to be called the "Agreement") that half of the capital needed for that portion of the Ching-Feng (i. e., Peking-Mukden) Railway lying east of the Liao River amounting to Yen 320,000, and half of the capital needed for the Chi-Ch'ang Railway amounting to Yen 2,150,000 should be borrowed from the South Manchuria Railway Company.

ARTICLE II.—The interest on this loan shall be at the rate of five per cent per annum.

ARTICLE III.-The actual rate at which the loan shall be realized shall be 93 for every 100 as agreed upon in Article 6 of the "Agreement."

*Translation from the Chinese text, as printed in For. Rel., 1908, p. 207. Printed also (in Chinese and Japanese texts) in Wang, p. 149, and (in translation) in F. E. Review, vol. 11, p. 391.

In connection with this supplementary agreement see also the convention regarding the Hsinmin-Mukden and Kirin-Ch'angch'un railways, April 15, 1907 (No. 1907/3, ante): agreement for the handing over of the Hsinmin-Mukden Railway, May 27, 1907 (Na. 1907/5, ante): detailed agreements concerning the Hsinmin-Mukden and Kirin-Ch'angch'un railway loans, August 18, 1909 (Nos. 1909/6 and 1909/7, post); also, with particular reference to the Kirin-Ch'angch'un Railway, see Article 6 of the agreement relating to Chientao, September 4, 1909 (No. 1909/10, post), and Article 7 of the Sino-Japanese treaty respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 1915/8, post).

ARTICLE IV. It is stipulated in Article 3 of the "Agreement” that during the term of the loan, the Chinese Government shall employ a Japanese engineer-in-chief for that portion of the Ching-Feng Railway which lies east of the Liao River. For the present the Japanese engineers now in the employ of the Ching-Feng Railway may continue to act and as at present will continue to be under the control of the director and engineer-in-chief of the ChingFeng Railway. If, in future, changes are made in the engineering staff, as provided in the "Agreement," application shall be made to the South Manchuria Railway which will make appointments after full consultation. The status of these engineers shall be as stated above.

ARTICLE V. Since it is difficult for the Chinese Government to keep separate accounts for that portion of the Ching-Feng Railway which lies east of the Liao River, the Japanese Government consents that no Japanese accountants shall be specially appointed, and the Japanese Government consents that the Chinese Government shall set aside monthly a sum calculated to be sufficient for the monthly payment of capital and interest on the amount of the loan for the said section of railway. This sum shall be deposited on the first day of every month in some Japanese Bank in China, designated by the South Manchuria Railway Company. This deposit shall be regarded as a sinking fund for the redemption of the capital and interest of the loan when due. The manner of making the payments of the capital and interest of the loan when due, and the interest which shall be allowed by the bank on the sums deposited shall be decided when the detailed loan contract is drawn up. The Chinese Government also consents that the monthly balance sheets for the whole ChingFeng Railway Line and the annual exact statement of accounts in English shall be sent monthly and annually to the South Manchuria Railway Company for inspection.

ARTICLE VI.-The engineer-in-chief and the accountants of the Chi-Ch'ang Railway should all be Japanese as provided in Article 3 of the "Agreement.” The method of appointment shall be as follows: The Chinese Government will select a well trained and capable engineer-in-chief and appoint him, after full consultation with the South Manchuria Railway Company. The accountants shall be selected by the South Manchuria Railway Company, and after consultation with the Chinese Government the Chinese Government shall appoint them. If in future it shall be necessary to change the engineer-in-chief or accountants, there must be consultation with the South Manchuria Railway Company according to the "Agreement," and the appointments must be made as arranged above.

Article VII.—The special loan contract must conform to the stipulations of the "Agreement" and of this "Supplementary Agreement." It will be drawn up between the South Manchuria Railway Company and an official appointed by the Board of Posts and Communications.

This supplementary agreement will be in force when ratified by the two Governments.