APPENDIX XXIII JAPAN AND RUSSIA Political Convention.-July 30, 1907. The Government of his Majesty the Emperor of Japan and the Government of his Majesty the Emperor of All the Russias, desiring to consolidate the relations of peace and good neighborhood which have happily been re-established between Japan and Russia, and wishing to remove for the future every cause of misunderstanding in the relations of the two Empires, have agreed upon the following provisions: Art. I. Each of the High Contracting Parties engages to respect the actual territorial integrity of the other, and all the rights accruing to one and the other Party from the treaties, conventions and contracts in force between them and China, copies of which have been exchanged between the Contracting Parties (in so far as these rights are not incompatible with the principle of equal opportunity), from the treaty signed at Portsmouth on the 5th of September (23rd of August), 1905, as well as from the special conventions concluded between Japan and Russia. Art. II. The two High Contracting Parties recognise the independence and the territorial integrity of the Empire of China and the principle of equal opportunity in whatever concerns the commerce and industry of all nations in that empire, and engage to sustain and defend the maintenance of the status quo and respect for this principle by all the pacific means within their reach. In witness whereof, the undersigned, duly authorized by their respective Governments, have signed this Convention and have affixed their seals. Done at St. Petersburg, the 30th day of the 7th month of the 40th year of Meiji, corresponding to the 30th (17th) of July, 1907. GREAT BRITAIN APPENDIX XXIV (Pauling & Company), UNITED STATES (American Group) AND CHINA. Preliminary agreement providing for the financing, construction and operation of the railway from Chinchou to Aigun.— October 2, 1909. This Preliminary Agreement to provide for the financing, construction and operation of the Railway from Chinchou to Aigun is made between their excellencies the viceroy of Manchuria and the governor of Fengtien, hereinafter called the administration, of the one part, and the American group and its associates (such associates to be admitted to participation with the full consent of, and to the extent,—not more than forty per cent of the whole,— to be determined by the Chinese Government), hereinafter called the banks, and Pauling & Co., hereinafter called the Contractors, of the other part: Now it is hereby mutually agreed by and between the parties hereto as follows: I. The administration engages to borrow from the bank the sum necessary to construct the railway from Chinchou to Aigun. The rate of interest for this loan shall not exceed 5 per cent per annum, and the terms of issue, which shall be the most favorable obtainable, and the other details of procedure shall be arranged in a mutually satisfactory manner. The payment of interest and amortization of this loan shall be guaranteed by the Imperial Chinese Government and the security therefor shall be the railway line. Interest payments and amortization shall be met by the receipts of the railway or the proceeds of the loan, and if these be insufficient, by Manchurian revenues as may hereafter be selected by the administration and the bank in a manner to be mutually satisfactory. The first bond issue shall be for the amount necessary for the construction and equipment of the railway between Chinchou and Tsitsihar. The second shall be for the construction and equipment of the railway between Tsitsihar and Aigun. An equitable arrangement shall be made for the redemption of the bond issue by the board of communications prior to the expiration of their term. II. The administration agrees to contract with the contractors for the construction and equipment of this road. The contractors engage to build and equip the line using the best possible materials on the cheapest possible terms. The detailed terms and conditions, etc., shall be arranged hereafter in a manner that shall be mutually satisfactory. III.-On equal terms Chinese materials shall be given the preference. If however Chinese materials are not available recourse shall be had to other markets. The administration shall be liable to the contractors only for the contract price of the railway and it is clearly understood that no commission shall be paid on the purchase of materials. IV. During the construction of this railway the appointment of the chief engineer shall be vested in Pauling & Co. but this appointment must be approved by the president of the railway company to be designated by the Imperial Chinese Government. The chief engineer shall be under the control of the Board of Communications and the Railway Company. V.-As the work of construction is completed section by section the railway shall be operated, during the currency of the loan, by a company which shall be under the control of the board of communications. If after the payment of interest and amortization charges, and operating expenses, there be a surplus the railway company shall receive 10 per cent thereof. VI.-The company shall be composed of Chinese, Americans and British as may be hereafter arranged, the Chinese to have a majority interest in the control, but under no circumstances shall persons of any other nationality than those herein mentioned have any voice in the management or control of the company without the full permission of the Imperial Chinese Government. The company shall have as its president a high official appointed by the Imperial Chinese Government. The other details of organization shall be subsequently arranged in a mutually satisfactory manner. VII. This railway company is to be organized by Chinese, American and British interests. It is recognized however that this line is constructed in Chinese territory for commercial purposes and in case of war may be used only for the transportation of Chinese troops and munitions of war. VIII. This preliminary agreement is signed by their excellencies the viceroy of Manchuria and the governor of Fengtien with the bank and the contractors subject to approval by imperial edict, without which it shall be null and void. IX.-In case certain portions of this agreement are characterized as unacceptable by the imperial edict or in case the administration finds on further consideration that there are certain unsatisfactory provisions therein, these clauses, to which exception has been taken, shall be revised in the detailed agreements in a manner which shall be satisfactory to all parties. X. This agreement is executed in triplicate in English and Chinese, one set to be retained by their excellencies the viceroy of Manchuria and the governor of Fengtien, one set by the American group, and one set by Pauling & Co. In case there be any misunderstanding arising from a difference between the English and Chinese texts the matter shall be settled by a mutually satisfactory arrangement. Signed at Mukden by the contracting parties this nineteenth day of the eighth moon of the first year of the Emperor Hsuan Tung, being the 2d day of October of the Year 1909 of the western calendar. (Signed) The Viceroy of Manchuria and the (Signed) For J. P. MORGAN AND COMPANY, THE FIRST NATIONAL BANK, THE NATIONAL CITY BANK OF NEW YORK, Constituting the American Group, WILLARD D. STRAIGHT, (Signed) For PAULING AND COMPANY, Agent. FRENCH, per W. D. S. Note. Agent. The imperial edict of approval, contemplated by Article VIII of the agreement, was issued on January 21, 1910, but no detailed agreement in pursuance of this preliminary agreement has yet been concluded. For the protests made in behalf of other nationalities against this agreement, see The Forum, July, 1910, pp. 74-83. In connection with this agreement, see the memorandum of agreement between the American group and Pauling & Co., as follows: Memorandum of Agreement between the American Group and Pauling & Company, October 6, 1909. In addition to the provisions of the Preliminary Agreement with Their Excellencies, the Viceroy of Manchuria and the Governor of Fengtien for the financing, construction, and subsequent operation of the Railway from Chinchou to Aigun to which the American Group as well as Pauling and Company are parties. It is agreed as between the American Group and Pauling and Company that: I. Since it may be necessary for the American Group in making its financial arrangements with the Chinese Government to furnish funds on terms ensuring a margin of profit not commensurate with the risks involved, Pauling and Company will give the American Group not less than 22 per cent. of the contract price for both sections of the railway referred to, such percentage to be paid on the completion of the entire road. II. At least one-half of the materials and equipment purchased in Europe and America shall be American. III.-In view of the fact that upon completion the railway will be operated by a Company in which the American Group as well as Pauling and Company will be equally interested (unless otherwise arranged to the satisfaction of both parties), certain American engineers to be recommended by the American Group shall be employed by Pauling and Company during the period of construction. IV. All other details necessary to secure proper cooperation between the parties to this Agreement shall be arranged upon a mutually satisfactory basis. V. Any revision of the above stipulations, if such be found necessary, shall be made by mutual agreement. Signed in duplicate at Peking this sixth day of October One Thousand Nine Hundred and Nine. For J. P. Morgan and Company, Kuhn, Loeb and Company, The First National Bank, The National City Bank of New York, constituting the American Group. (Signed) W. STRAIGHT. Agent. Subject to ratification by my principals. |