Mongolia and all other expenses necessary, and shall obtain the approval of the Banks.

ARTICLE 3.-The term of the gold loans of the Four Railways of Manchuria and Mongolia shall be forty years. The redemption of the principal, to be refunded by annual instalments, shall commence after eleven years, counting from the day of the issue of the loan.

ARTICLE 4.-With the conclusion of the loan contract, the Government shall consult the Banks as to the plan of work to be started according to the plan agreed upon, with a view to speedy construction.

ARTICLE 5.-The Government shall offer the following to the Banks as security for the payment of the principal and interest on the loans:-All the property and revenue of the Four Railways of Manchuria and Mongolia, at present and in the future.

The Government shall not offer the above-mentioned property and revenue to other parties unless the approval of the Banks is obtained.

ARTICLE 6.-The issue price, interest, net amount to be received by the Government, and other conditions, shall be agreed upon between the parties in as favorable terms as possible to the Government when the loan is issued.

ARTICLE 7.-Matters which are not provided for in the foregoing Articles shall be agreed upon by consultation between the Government and the Banks.

ARTICLE 8.-A formal loan contract shall be concluded within four months after the conclusion of the present preliminary agreement.

ARTICLE 9.-With the conclusion of the preliminary contract the Banks shall advance twenty million yen of Japanese currency to the Government. The advance shall be delivered without charging any commission.

ARTICLE 10.-Interest on the advance shall be paid at the rate of eight per cent. per annum or Yen Eight per Yen 100.

ARTICLE 11.-The advance shall be delivered in the form of the discount of Treasury bills issued by the Government.

ARTICLE 12.-The Treasury Bills mentioned in the preceding paragraph shall be renewed every six months, and an amount shall be paid into the banks equal to six months' interest.

ARTICLE 13.-After the final agreement for the loan for the Four Railways in Manchuria and Mongolia has been effected, the Government shall repay previous advances preferentially and with

out delay from the funds obtained by the issue of a public loan. ARTICLE 14.-The collection, repayment, payment of interest, and all other payments of the previous advances, shall be made at Tokyo, Japan.

Two sets each in Japanese and Chinese of the preliminary agreement shall be prepared and signed, and the Government and the Banks shall retain a copy of each.

In case a dispute should arise concerning the interpretation of this preliminary agreement, it shall be interpreted according to the Japanese text.

September 28, 7th Year of Taisho.

Note.

[Signed.] INDUSTRIAL BANK OF JAPAN,

EIJIRO ONO,

Vice-President.

CHANG TSUNG-HSIANG,

Envoy Extraordinary and Minister
Plenipotentiary of China.

This preliminary agreement was made in pursuance of an exchange of notes between the Chinese Minister at Tokyo and the Japanese Minister for Foreign Affairs, under date of September 24, 1918.

INDEX

Chiaotou, 10

Chiapikou gold field, 45
Chichakha, 14

Chichiapu, 10

Chien-shan, 211

Chientao, 76, 103

Chihli Province, 45, 47, 155, 236
China, diplomacy, treacherous, 28,
China, Manchurian trade, 264
China-Japan War (see Sino-Japanese
War)

Dairen, city of, building of by Rus-
sians, 72; description, 127
Dairen, port of, port facilities, 127 seq.,
268; shipping at, 269; description of,
127 seq.; wharf compounds, 128; trade
of, 260-261, 265; coclies working at,
269; warehouses at, 270; coolies pass-
3ing through, 155; construction of by
Japanese, 125 seq.; growth of, 265;
bean trade at, 260; Russian efforts to
build it, 126; dry dock at, 126, 269;
steam line connecting it with other
!ports, 128; compared with Tsingtao,
266; with New York, 267.
Dairen Central Laboratory, 165
Dairen Steamship Co., 128
Daiminor coal field, 209
Dalny (see Dairen)
Distilleries, 235, 236, 239
Districts, 285

Chinchou, 95, 155-6. 172-3, 175
Chinchou-Aigun Railway, 95-6, 192
Chinese Eastern Railway, building of,
54-58; concessions for, 50-52; change
in policy of. 89-93, 255; cultural
work of, 255; its welfare work, 255;
Financial condition of, 254; rolling
stock, 254

Chinese Government Railways, 295-98,
300, 310-19

Chinese Immigrants into Manchuria (see
Manchuria), real conqueror of, 43;
secret of their success, 44-45
Chinese trade with Manchuria, Chinese
merchants followed farmers into Man-
churia, 45

Colleges, 131

Colonists, Chinese, 42-44

T

.1

Commerce, Domestic (see Trade)
Commerce, Foreign (see Foreign Trade)
Commodities, 6, 244

Communications (see Railways, Canals,
Rivers, Trade routes, Yalu, Liao, the
Sungari, the Amur-telegraph, &c.)
Concessions, British, 340-41
Concessions, Japanese, 100-101
Consortium, New Four-power, 108; La-

mont statement on, 108; his work in
Tokyo, 109; Japan, its meaning to,
109; Japan's action on, 109-110; mean-
ing of Japan's joining it, 110
Coolies, migrations, 43; their conquests,
44, 45, 47, 175; farming, 156; at
Fushun, 70; Chinese Eastern line,
70

Eternal wall (see Wall, Great)
Experimental stations, 138, 172
Exports (see Foreign Trade)

Factories, Chinese, 237; in Kwantung
Leased Territory, 237-239
Fakumen-Hsinmintun Railway, 95-96
Farms, size of, 145, 147; price of, 149
Farm labor, 155; wages of, 155-156; life
conditions of, 157-158
Fengtien Fu, 13, 280

Fengtien Province (see Mukden Proy
ince)

Fensui Range, 10
Fertilizer, 163.

Finances, 53, 58, 91, 264

Five Boards, 281

Floods, 20, 22, 151-

Flour Mills, history of development,
229, at Harbin. 168, 230, 232; Rus-
sians engaged in, 230; Chinese activi-
ties in, 234; Japanese interest in, 234
Foreign Trade, character of 257; im-
port articles, 258; exports, chief, 258;
growth of, 259 seq. Japan's position
in, 259 seq.; value of, 259-seq.; U. S.
trade with, 263; Japan, Manchuria's
chief customer, 262; Japanese su-
premacy in Manchurian trade, 262;
Chinese competition, 2641
Forests, 23; area, 187, 189; Kirin Prov
>ince, 187, 193, 198; on the Khingans,
188; Sansing District, 1887 along Chi-
nese Eastern, 188, 194