bond or duplicate bonds for a like amount and deliver the same to the Bank representing the owner or owners of such lost, stolen or destroyed bond or bonds and the Bank interested shall pay all expenses in connection with such delivery and execution of such duplicate bond or bonds for the account of the owner or owners of such bond or bonds.

10. All bonds and coupons and payments made and received in connection. with the service of this loan shall be exempt from all Chinese taxes and imposts of any and every description during the currency of this loan.

11. The terms of this present loan agreement for FIVE MILLION DOLLARS HONGKONG CURRENCY concluded by the Viceroy of the Liang Kwang Provinces with the Hongkong and Shanghai Banking Corporation, the Banque de l'Indo-Chine and the Deutsch Asiatische Bank, have been sanctioned by Imperial Decree officially communicated by the Wai-Wu-Pu to the British, French and German Ministers in Peking, and in pursuance of the Imperial authority so received the Viceroy for and on behalf of the Imperial Chinese Government hereby guarantees under his official seal that payment of interest and repayment of principal shall be duly made.

12. -Nine sets of this agreement are executed in English and Chinese, one set to be retained by the Viceroy, one by each of the Banks, one by the British, one by the French and one by the German Ministers in Peking. Of the remaining two sets, one will be forwarded to the Wai-Wu-Pu by the Viceroy, and one will be handed under a joint note to the Wai-Wu-Pu by the Ministers of the three countries to be placed on record.

In the event of any question or dispute arising as to the meaning of this agreement, the English text shall rule.

Signed at Canton by the contracting parties this 7th day of the 7th month of the third year of the Emperor Hsuan-t'ung, being the 30th day of August One thousand nine hundred and eleven, Western Calendar.

NUMBER 1911/10.

FRANCE AND GREAT BRITAIN (Syndicat du Yunnan, Ltd. )AND CHINA. Exchange of notes between the Wai Wu Pu and the French legation in regard to the cancellation of the mining concession of the Syndicat du Yunnan.*

August 31, 1911.

Prince Ch'ing, President of the Council and President of the Ministry for Foreign Affairs, to Mr. Georges-Picot, French Chargé d'Affaires in China.

PEKING, August 29, 1911.

In conclusion of the negotiations that have been carried on between your Excellency and Mr. Kao, Treasurer General of Yunnan, on the subject of the *Translations from the French version of the Chinese text, and from the French text. See Note to this document, post, p. 911.

Lung-Hsing Company (Anglo-French Yunnan Syndicate), the concessionaire for the working of the mines in Yunnanfu and six other localities, an agreement has been arrived at with the British Minister that China will pay the said syndicate, for the cancellation of the original contract, the sum of 1,500,000 taels.

The payment of this sum will be made in six instalments. On each instalment the sum of 250,000 Kuping taels will be paid.

The first payment will be made during the course of this moon (August 24 to September 21). The five other payments will be made every six months. The French and British Ministers will give notice a month in advance to our ministry, in order that it may provide funds.

All the property and all the material belonging to the syndicate and to its branch will be turned over entire to China, which will thereafter have no further concern with the said syndicate.

As an agreement has been reached upon these conditions, the matter will be arranged by an exchange of letters that will be conclusive.

I am addressing your Excellency the present official communication to be filed in your archives. I have to request that you be so good as to acknowledge its receipt.

Pray accept, etc.

Mr. F. Georges-Picot, French Chargé d'Affaires in China, to his Highness, Prince Ch'ing, President of the Council and President of the Ministry for Foreign Affairs.

PEKING, August 31, 1911.

Your Highness has made known to me that the Wai Wu Pu was disposed to pay the sum of fifteen hundred thousand Kuping taels, the payment of which would be guaranteed by the Imperial Government, in compensation for the cancellation of the contract signed in 1902 between the Imperial Government, the Province of Yunnan, and the Syndicat du Yunnan. You add that this amount will be paid in Peking in half-yearly instalments of 250,000 taels, the first being paid by the Wai Wu Pu before September 22 next.

I have the honor to inform your Highness that the company concerned accepts this proposal. It acknowledges that by the payment of this sum the Imperial Government frees itself from all the obligations created by the contract cited above. The syndicate moreover undertakes to grant without charge to the Imperial Government all property and things possessed by it in Yunnan, or by its branch (the Compagnie d'Exploitation de Lin Ngan), and to turn them over to the delegate that the Government may be pleased to name.

I regret that circumstances have compelled us to terminate a contract that seemed to me to be of such a nature as to afford important advantages to each of the contracting parties, and thus contribute to the economic development of China.

Note.

The original concession had been granted by a contract concluded June 21, 1902, of which the following translation from the French text is given in Collins, p. 262:

Agreement for Yunnan Mining Concession, June 21, 1902.

WHEREAS the working of the Yunnan mines has continued, up to the present, to be primitive and incomplete, and a company called the "Syndicat du Yunnan, Limited," has been formed in England and France with the object of working these mines by the best methods, with the assistance of engineers, with a competent staff, and with machinery and the capital necessary for giving the fullest development of which they are capable to these undertakings.

The following Convention has been agreed on between T. E. the Governor-General of the Yun-Kwei Provinces, the Governor of Yunnan and the Imperial High Commissioner of Mines on the one hand and M. Rocher, Consul-General representing the Syndicat du Yunnan, Limited (Lung Hsing Kung Ssu), on the other hand.

ARTICLE I.-The Governor-General of Yun-Kwei and the Governor of Yunnan, in concert with the High Commissioner of Mines, agree to ask the Imperial Government to concede to the Syndicat du Yunnan, Limited, the right to prospect and work the mineral deposits of the departments of Yunnan-fu, Cheng Kiang-fu, Lin Ngan-fu, K'ai Hua-fu, Ch'ou Hsiung-fu, together with Yuan Kiang Chou and Yung Pai T'ing situated in the Province of Yunnan, namely:

1. The copper mines which are at present abandoned by the State of China and those which shall be discovered by the Syndicate. once worked but now abandoned.

2. The mines of gold, silver, coal, iron, etc.

3. The mines of gold, silver, coal, iron, platinum, tin, as well as the deposits of petroleum, precious stones, and cinnabar which shall be discovered by the Syndicate.

The High Authorities of Yunnan agree to ask the Imperial Government for the concession of the mines of the seven above-mentioned districts to the Syndicat du Yunnan, Limited. No company unconnected with it will be able, in any manner to prospect or work mines in the departments cited above. However, the Government, as well as the Chinese, will be able, as in the past, to work such new deposits as they shall discover, and if companies which are purely Chinese, with capital exclusively Chinese, request authorisation to work deposits, the requested authorisation may be granted on condition that the said companies shall be subjected to charges and obligations at least equal to those laid upon the Syndicat du Yunnan, Limited.

Should the Syndicat du Yunnan, Limited, not discover deposits worth working in the above-mentioned departments or districts, the Imperial Government will exchange them against others which the Syndicate will point out, but their total number shall never exceed seven. However, when all the mines of the above-mentioned departments or districts shall be working, if its duties and profits are regularly paid to the Chinese Government, the Syndicate will be able to obtain other concessions on appealing to the Provincial Authorities.

ARTICLE II.-Apart from the State mines whose working will be started in the abovementioned districts, if the Syndicate wishes to work mines belonging to private persons, it will apply to the High Provincial Authorities, who will order an investigation to be made; and if the said investigation does not bring to light any objection the local officials will be authorised to negotiate with the proprietor for hiring the mine or the land for a period which shall not exceed the time during which the present convention will be in force. The expenses of hiring the mine or the land will be chargeable to the Syndicate, which will not under any circumstances be able to buy or hire directly or become proprietor of mines or land.

If, after authorisation to work any mine has been granted, work on it shall not have been commenced within three years, the mine and the contract will be returned to the proprietors through the authorities.

ARTICLE III.—When, in places determined by the Syndicate, a mine capable of being worked shall have been found, the limits shall be fixed and a plan of it shall be drawn. This shall be submitted to the High Provincial Authorities. These last shall have an investigation made, and should this investigation prove favourable the lands will be hired and handed over to the Company, which will then be able to begin the working.

ARTICLE IV. On waste lands situated near the mines the Syndicat du Yunnan, Limited, will be able to build railways, roads, canals, and all means of communication which it shall deem necessary for the passage of its workmen, the transport of its material, mineral, etc., etc. If these means of communication are to use land belonging to private persons the Syndicate shall inform the Provincial Authorities, who, after a favourable investigation, will give the order to the local officials to come to terms with the proprietor for the hiring of the land at a reasonable price. The price of this hiring will be chargeable to the Syndi

cate.

Since the joining up of the railroads of the Syndicate with the railway has as its object the facilitating of the marketing of its mineral products and the transport of material, as soon as the principal trunk-line shall be constructed, special rules will be drawn up by common agreement, and, when the said rules shall have been approved by the Imperial Government, the work of joining up the lines may be commenced.

Under no circumstances will the Syndicate be able to transport travellers or private merchandise over its mining lines.

ARTICLE V.-The Syndicat du Yunnan, Limited, will be permitted to recruit the labour it considers necessary for its workings in the Province, and, if there is not enough, it may cause workmen to come from neighbouring Provinces.

No distinction shall be made between Catholic, Mussulman, or other workmen all shall be engaged on the same basis according to their aptitude and activity.

If workmen are injured in the course of work for the Syndicate, and if these injuries entail incapacity for work, or death, the Syndicate shall give equitable compensation.

Lawsuits, assassinations, robberies, or quarrels which arise in the course of work shall be dealt with according to the treaties.

ARTICLE VI.-In consideration of the facilities which are given it, the Syndicat du Yunnan, Limited, undertakes to furnish annually to the Imperial Government, provided that the working of the mines allows of it, 1,000,000 lbs. of copper. This amount is fixed as follows: 600,000 lbs. three years after the opening of the copper mines, and 400,000 lbs. two years later. Afterwards a fixed quantity of 1,000,000 lbs. shall be furnished in each year.

The metal delivered shall contain 85 per cent. of copper, and shall be paid for to the Syndicate at the price of twenty Ku p'ing taels per hundred Chinese pounds. When the annual amount due has been delivered the rest of the output shall be offered to the Provincial Government, and to such Provinces as shall ask for it, at market price; the balance may be exported by the Syndicate.

The copper for the Central Government shall be liable to no tax, but that which is sold in Yunnan or other Provinces or exported shall pay a 5 per cent. tax.

ARTICLE VII.-In order to avoid all cause of trouble the Syndicat du Yunnan, Limited, undertakes to avoid all operations or encroachments, during the construction of the means of communication or the working of the mines, which may damage houses, fields, or graves. The Syndicate will also respect the customs and usages of Yunnan, the mines worked by the State, and the rights acquired by private persons.

ARTICLE VIII.-The Syndicat du Yunnan, Limited, undertakes to found one or several schools in which Chinese shall be trained in technical subjects for the working of mines and other industries. It shall, in due course, choose according to its needs, from among the pupils who shall have satisfactorily passed the leaving examinations, engineers and foremen for employment in its undertakings.

ARTICLE IX. By reason of the extent of the mineral land and the difficulties of transport, the Imperial Government, in order to facilitate the development of the mineral industry which will be a source of riches to this country, gives the Syndicat du Yunnan, Limited, the right to form exploitation companies, to which it may cede the privileges which it obtains, or transfer concessions, on the express condition that the said companies, whether they work on the Syndicate's account or whether they work on their own account, conform strictly to this Convention.

Since the Imperial Government does not participate in the losses each mine is to have a separate account, and in no case can the profits of one be used to balance the losses of another. The division of the profits at the end of the year shall be made separately for each mine.

The Syndicat du Yunnan, Limited, undertakes to cause Chinese capital to participate as far as possible in the public issues of shares of the companies which shall be formed. The officials, merchants, workmen, or proprietors shall be able, at their convenience, to interest themselves in the enterprises of the Syndicate on the same conditions as foreign shareholders. The share-lists shall be opened simultaneously in the principal cities of China and Europe.

ARTICLE X.-The working capital raised by the Syndicate shall not exceed 50,000,000 Haikwan taels. However, if at a later date the necessity should make itself felt, the capital may be increased after coming to an agreement with the High Provincial Authorities.

ARTICLE XI.-The sum of the net profits shall be arrived at after deducting the following:

1. A sum representing general expenses, including customs expenses, the hire of the mines, lands and other taxes.

2. A sum representing 8 per cent. of the capital as interest.

3. A sum equal to 10 per cent. as amortisation of plant, of school constructions, buildings, etc. . . . Once the amortisation is complete, no further sum shall be charged to this

account.

4. A sum representing 10 per cent. of the profits as a reserve fund, of which the Syndicate shall dispose according to necessity. However, when the division of this reserve

fund takes place, the assignment of its parts shall be made equitably in accordance with Article 12.

ARTICLE XII.-The net profits remaining after the deduction of the above-named prior charges shall be distributed as follows:

1. The Imperial Government's share

2. The Provincial Government's share

25 per cent. 10 per cent.

3. The share of the Syndicate for distribution among its shareholders 65 per cent. At the end of each year the High Provincial Authorities and the Syndicate shall each name a commissioner to verify the accounts of the year and take delivery of the sums due to them respectively.

ARTICLE XIII. Neither the Imperial Government nor the Provincial Authority undertakes any pecuniary responsibility in the operations of the Syndicate, which shall be alone in bearing the risks of the enterprise.

ARTICLE XIV.-The Imperial Government shall receive 5 per cent. in kind of all mineral extracted, of whatever nature it be. The official living at the mines shall take note of the raising of the products, of coal, or of precious stones; and, after having compared it with the register kept at the mines for that purpose, shall collect, on the mineral raised, once quarterly only.

The Syndicat du Yunnan, Limited, shall be subjected for the importation of its working material, and for the products exported, to the tariff of the maritime customs. For the above-mentioned articles it shall be exempted from likin and the other internal taxes imposed on merchandise in circulation.

The Syndicate must respect the general regulations of the Empire, and, in conformity with the treaties, must not transport secretly articles which are either prohibited or dutiable to the customs or revenue.

ARTICLE XV.-Any difference which may arise in the interpretation of the present convention or in its execution shall be settled by a tribunal of arbitration, consisting of four members who shall be appointed respectively—

One by the Imperial Government.

One by the Provincial Government.
One by the French Legation.

One by the British Legation.

Any decision in arbitration arrived at in this manner shall be communicated through an official channel to the parties interested and shall be final.

ARTICLE XVI.-Since the Imperial Government and the Provincial Authorities share in the profits realised by the Syndicate, they have a considerable pecuniary and fiscal interest in protecting and safeguarding, by all the means in their power, the mining enterprises of the Syndicate. In consequence, orders will be given to the local authorities to conform in the strictest manner with the clauses of the present Convention.

ARTICLE XVII.-The Syndicate will do all in its power to keep up the best possible relations with the authorities, and will neglect nothing to ensure the maintenance of a cordial understanding and mutual confidence.

Any want of respect to an official, and any unfriendly act of which an employee may be guilty, must be reported by the local official. The Syndicate undertakes, after enquiry, to dismiss an official who has been proved guilty and to give him no other employment for two years. If, for special reasons, he cannot be absolutely dismissed, he shall not be allowed to work on the same mine.

ARTICLE XVIII.-Since the working of mines attracts a considerable number of individuals of all kinds to their vicinity, in order to obtain security for the Europeans and all the persons working in the mines; in order also to ensure peace and tranquillity and to prevent complications, the Syndicat du Yunnan, Limited, may, on giving notice to the local authorities, recruit near its mines native soldiers, who shall be placed under the command of an officer chosen for that purpose, who shall reside, with his men, near the workings.

If it should become necessary, for the maintenance of order, to reinforce this body, the High Authorities will send regular troops to the spot, but the Syndicate may not cause European troops to enter the Province on any pretext whatever.

ARTICLE XIX. When the engineers and their staff come to Yunnan to prospect the mineral deposits and to proceed to work them, the Syndicate must inform the local authorities in advance of their arrival and movements, in order that they may be able to give them the escorts necessary to ensure their security. In case the precaution should be omitted, and incidents should arise, the Provincial Authorities decline to take any responsibility.

ARTICLE XX.-The maintenance as well as the salaries of provincial agents who shall be detached to the mine shall be paid by the Syndicate.

The Syndicate shall also, according to circumstances, allot gratuities to the escorts of engineers who shall proceed to prospect for mines.

ARTICLE XXI.-The present Convention is agreed on for a period of sixty years from the date of its signature. At the expiration of this period the mines which have been worked, whether old or new and whether prosperous or otherwise, as well as the land,