No. 45. GREAT BRITAIN. CONCESSION AGREEMENT RESPECTING THE NAN P'IAO COAL MINES.@ OCTOBER 10, 1898. This is an Agreement between his Excellency Hu, Governor of Peking, Administrator-General of the railways of North China, within and without Shan-hai-kuan, hereinafter called the "AdministratorGeneral," of the one part, and the Hong Kong and Shanghae Banking Corporation, for themselves and on behalf of the British firm of Jardine, Matheson, and Co., representing as joint agents the British and Chinese Corporation (Limited), hereinafter called the "Corporation," of the other part. 1. The Administrator-General having purchased the coal mines known as Shang P'iao, Chung P'iao, and Hsia P'iao, at Nan P'iao, in the district of Ch'ao Yang, now enters into an Agreement with the Corporation to operate the same on joint account. Any other mines. in the neighbourhood of the above, or of the railway line between Nu-erh-ho and Nan P'iao, and between Nan P'iao and Chinchou that may subsequently be acquired by purchase or otherwise by the Administrator-General, shall also come under the terms of this Agreement for operation either on joint account or by the Corporation alone, it being always provided that all operations under the terms of this Agreement are optional to the Corporation, and subject to a favourable report from its Mining Engineer. 2. The Corporation shall send its own Mining Engineer as soon as possible to examine the property acquired, and will indicate, after consultation with the Administrator-General and the Chief Engineer of the Railway Administration, the points at which it is desirable to sink shaft and commence operations. The Mining Engineer of the Corporation will also make a survey of the whole area above named, with a view to the extension of operations, and on the receipt of his Report upon the same, the Administrator-General will take immediate steps for the purchase of the necessary property at the points recommended in the Report. No compulsion shall be used in the purchase of such property if the owner refuses to part with it, but in such case it will be arranged that the Administrator-General shall have the first refusal thereafter. « British Parliamentary Blue Book, China No. 2 (1899), p. 40. 3. An estimated capital of 1,000,000 Kung-p'ing taels for the opening and working of the mines shall be provided in equal shares by the Administrator-General and the Corporation, either by private subscription, the public issue of script, or in such other manner as each party may deem necessary in its own interests. Of the estimated capital of 1,000,000 taels the sum of 125,000 taels shall be deposited by the Corporation at the Hong Kong and Shanghae Bank, London, in £ sterling not later than the 30th November, 1898, and the sum of 125,000 taels shall be deposited by the Administrator-General at the Tien-tsin branch of the same bank on or before the same date. The balance of the estimated capital, namely, 750,000 taels, shall be similarly provided in equal shares by each party not later than the 30th November, 1899. All such deposits shall be held by the bank to the order of the Corporation for the purchase of plant and the opening and working of the mines. Should an increase of capital be found necessary later on, it shall be similarly provided in equal shares by the Administrator-General and the Corporation. 4. The construction of the branch line from Nu-erh-ho to the Nan P'iao collieries will be carried out by the Administrator-General in terms of his Agreement with the Corporation for the Shan-hai-kuanNewchwang main line and dependencies. 5. All matters of exploitation, administration, employés, and finances shall be undertaken by the Corporation in co-operation with the Administrator-General of Railways. 6. The mines shall have one foreign Manager, appointed by the Corporation, and one Chinese Manager, appointed by the Administrator-General; the foreign Manager will control the works, and the Chinese Manager will attend to all questions between natives and foreigners. Accounts shall be kept on the foreign system by an European Accountant. All receipts and payments of money will be controlled by the foreign Manager, and audited by the Chinese Manager. Chinese shall be employed in the mines as much as possible, and where aptitude is shown, opportunity will be given to Chinese to fit themselves for posts of responsibility. 7. The royalty and taxes to be paid by the mines are restricted to the following: (1.) To the Taotai of Jehol an annual fee of 15 taels. (2.) To the Imperial Government of China a royalty of 5 per cent. of the output of coal, or its value, at the pit's mouth. (3:) To the Mongolian Chief of the district a commuted payment of 1,500 taels per annum. (4.) Duty payable by the Shang, Chung, and Hsia P'iao mines, amounting to a total sum of 790 taels per annum. 8. Machinery and materials required for the use of the mines shall pay one customs duty and a-half on importation, in accordance with the Regulations of the Kaiping mines, and shall thereafter be free from all li-kin or other imposts whatever. The products of the mines when exported from a seaport, shall pay export duty according to the Customs Tariff on the produce of Chinese Government mines. 9. The Railway Administration agrees to carry over its lines the output of the mines at rates not exceeding a basis of 720 big cash per ton from Nan Piao to Nu-erh-ho up to a monthly tonnage of 30,000 tons, anything above that quantity to be carried at 25 per cent. discount on this Tariff, and 10 big cash per ton per mile on the main lines. These rates include conveyance of the coal from the junction of colliery sidings to the Mining Company's yard at Yingkou, the filling and discharge of cars being done by the Mining Company. These rates may be modified from time to time by arrangement between the Administrator-General, the Chief Engineer of the Railways, and the Corporation; cases of dispute shall be referred to an arbitrator to be agreed upon by the parties concerned, and so far as they refer to the handling of coal at the mines, wharves, docks, &c., the rules of the Kaiping mines shall be taken as a precedent. 10. In consideration of the special transport rates given by the Railway Administration to the Mining Company, that Company will provide fuel to the railway at the following rates:— (1.) Best hand-picked lump coal for locomotives, 4,000 big cash, free in cars, per ton at colliery. (2.) Ordinary lump coal for stationary boilers, &c., 3,000 big cash, free in cars, per ton at colliery. (3.) Small coal for kilns and tank heating, 2,200 big cash, free in cars, per ton at colliery. (4.) Best coke, 8,000 big cash, free in cars, per ton at colliery. Other qualities to be arranged on the above basis of charges, as may be from time to time necessary. 11. In matters of compensation to miners for injuries, of limit of working hours, &c., the Corporation shall be guided by European and American Mining Regulations bearing on these questions, so far as these are applicable. 12. Should the Corporation desire to issue a prospectus for the mines and invite subscriptions from the public at any time, the Administrator-General will grant his official seal to such documents. as may be necessary for the ratification to the public of the Corporation's rights. 13. Wherever it shall be necessary to construct roads, bridges, or accessories necessary for the working of the mines, or for the transport of their produce, the Corporation will notify the AdministratorGeneral, who shall thereupon make prompt arrangements with the local officials to facilitate the carrying out of the same. 14. At the end of every half-year, an account of profit and loss, signed by the foreign and Chinese Managers, shall be rendered to the Administrator-General. All the working expenses of the mines, deterioration of plant, salaries of Europeans and Chinese staff, the royalty and taxes on output, customs import and export dues, and disbursements of every nature shall be placed to the debit of this account, the net balance of which, if a profit shall be shared equally by the Administrator-General and the Corporation, if a loss, will fall equally on both parties. 15. Immediately after the signature of this Argeement the Administrator-General will memoralize the Throne, and obtain an Imperial. Edict confirming and sanctioning the provisions of this Agreement. The Imperial Edict so received will be then communicated officially and without delay by the Tsung-li Yamên to the British Minister at Peking, that he may take the usual steps with regard to commercial undertakings. 16. This Agreement is executed in quadruplicate, in English and Chinese, one copy to be retained by the Administrator-General, one by the Tsung-li Yamên, one by the British Minister at Peking, and one by the Corporation. Should any doubt arise as to the interpretation of the contract the English text shall be accepted as the standard. Signed at Peking by the Contracting Parties this twenty-fifth day of the eight month of the twenty-fourth year of the Emperor Kuang Hsü, being the tenth day of October, one thousand eight hundred and ninety-eight, Western Calendar. (Seal of the Railway Administration.) (For the Hong Kong and Shanghae Banking Corporation.) E. G. HILLIER, (Signed.) Agent, Attorney for the British and Chinese Corporation (Limited) No. 46. GREAT BRITAIN. SHAN-HAI-KUAN-NEWCHWANG RAILWAY LOAN AGREEMENT. a SIGNED AT PEKING, OCTOBER 10, 1898. This agreement is made between his Excellency Hü, Governor of Peking, as Administrator-General of the Railways of North China within and without Shan-hai-kuan, acting under the authority of the Imperial Chinese Government, hereinafter called the "AdministratorGeneral," of the one part, and the Hong Kong and Shanghae Banking Corporation, for themselves and on behalf of the British firm of Jardine, Matheson, and Co., representing as joint agents the British and Chinese Corporation (Limited), hereinafter called the "Corporation," of the other part: Whereas, on the 7th day of June, 1898, being the 19th day of the 4th month of the 24th year of the Emperor Kuang-Hsü, a preliminary Agreement was signed at Peking between the Administrator-General and the Hong Kong and Shanghae Banking Corporation, representing a British Syndicate, for a sterling loan for the equivalent of about 16,000,000 taels for the construction of a railway line from Chunghou-so to Hsin-ming-t'ing and a branch line to Ying-tzu, and for the redemption of existing loans made to the Tien-tsin-Shan-hai-kuan and Tien-tsin-Lukouchiao Railway lines; and Whereas in terms of the preliminary Agreement a period of three months from its date was allowed to the Syndicate to accept or decline its conditions; and Whereas the Hong Kong and Shanghae Banking Corporation, before the expiration of the period named, duly notified the AdministratorGeneral that it is prepared, with certain modifications, to arrange the issue of the loan upon the conditions named in the preliminary Agreement: It is now agreed as follows: 1. The Corporation agrees to issue on behalf of the AdministratorGeneral a sterling loan for the amount of 2,300,000Z., the proceeds of which are to be applied in the order following: (1.) To the redemption forthwith or at maturity of the loans and advances specified in the statement attached to this Agreement which a British Parliamentary Blue Book China No. 2 (1899), p. 29. |