VI. The necessary capital and machinery, tools and instruments, shall be provided and bought by the said J. Victor Burn-Murdoch and John A. Hay, or their assigns, but in case of tools or materials to be used for the mines preference shall be given to Korean manufacture if of equally good quality and of the same price. The Imperial Korean Government shall not be responsible for any debts of the mines or for any debts in connection with this undertaking.

VII. Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, may erect godowns, houses, or any other buildings in connection with this undertaking within the limits stated in Article 1, and they may build roads if they consider them necessary, but shall pay for all land taken by such roads and all damages created thereby.

VIII. All establishments and branches, the roads, lands, and the buildings of the mining works are by this concession wholly exempted from every kind of taxes and imposts in Korea; all material necessary for the working of the mines will enter Korea duty free, and all products from the mines will leave Korea duty free.

IX. In case of any private lands, fields, houses, etc., being required by Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, in connection with the mining work, such private lands, fields, houses, etc., shall be purchased by the said J. Victor BurnMurdoch and John A. Hay or their assigns at reasonable prices at their expense, and any damages must also be paid by the said J. Victor Burn-Murdoch and John A. Hay, or their assigns. Tombs must not be interfered with.

X. Of the net profits which will remain after deducting all expenses, Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, engage to pay a royalty of 25% (twenty-five per cent) to the Imperial Korean Government, such payment to be made half-yearly, that is to say, on the 30th of June and 31st of December of each year. The cost of the machinery in the mines shall not be regarded as "expenses" and shall not be deducted from the profits.

XI. The Imperial Korean Government shall send an official and establish an office at the place selected; this official shall have the right to see the accounts, to watch the sale of any products from the mines and to look after the interest of the Imperial Korean Government, but in no way shall he have the right to interfere with the working of the mines or the sale of any products from the mines.

XII. Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, bind themselves to engage Korean coolies and workmen in proportion of 90 in 100, but should these Koreans not be suitable for the working, then Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, are at liberty to engage foreign workmen.

XIII. The Imperial Korean Government will give all facilities for this undertaking, will give full protection to all foreigners employed at the mines, and will grant passports to them.

XIV. After the work is commenced, as here agreed upon, it shall be prosecuted and continued in good faith and with all due diligence, and if the said J. Victor Burn-Murdoch and John A. Hay, or their assigns, fail so to do for a period of six months, then the said mine and all property except machinery thereon, and all rights under this contract shall be forfeited to the Korean Government.

Provided, however, if the said J. Victor Burn-Murdoch and John A. Hay, or their assigns, be prevented from working the mines by force majeure then the time they are so prevented shall not be counted in the above period.

XV. In the event of it being found desirable to make any modifications in the articles of the present contract or in other matters connected therewith affecting the interests of Koreans and Messrs. J. Victor Burn-Murdoch and John A. Hay or their assigns, such modifications may be introduced by mutual consent of the Korean Government and the British Representative in Seoul with the view of consultng the convenience of both parties.

XVI. In the event of any difference of opinion as to the interpreta tion of this contract, the English text shall be regarded as authoritative, but a Korean translation will be attached hereto.

Signed at Seoul this twenty-seventh day of September, 1898.

J. V. BURN-MURDOCH,

JOHN A. HAY,

Per his Attorney
J. V. BURN-MURDOCH.

Signed before me

J. N. JORDAN,

H. B. M.'s Chargé d'Affaires and Consul General.

27938-04-29

No. 73.

UNITED STATES.

SEOUL-CHEMULPO RAILWAY CONCESSION.

SIGNED MARCH 29, 1898.

The Government of Chosen (Korea) decrees and agrees as follows:

1.

A concession to build, operate and maintain a railroad from Seoul to Chemulpo in the Kingdom of Chosen (Korea) including the right to build a bridge across the Han river is hereby granted to James R. Morse, an American citizen, and to his assigns, under the conditions hereinafter named.

II.

The line of said railroad and the location of said bridge will be hereafter determined upon by surveys of the country to be made by engineers named by said James R. Morse or his assigns. Said bridge shall be provided with a foot path on one or both of the sides for the accommodation of pedestrians.

Further said bridge shall either be provided with a "draw" for the passage of boats, or it shall be built sufficiently high so as not to interfere with the ordinary navigation of the river.

III.

The Government of Chosen will provide a right of way along the entire line of said railroad of proper width for the construction and operation of said railroad including ground for stations, warehouses, workshops, switches and turnouts, which right of way shall be leased to said Company for such a period as the road shall belong to said Company-James R. Morse and his assigns and until the Government of Chosen shall acquire said railroad and its properties by purchase as hereinafter provided for.

In consideration of the grant of this lease for the right of way the said railroad Company agrees to grant free transport for Chosen mails and the mail agent in charge of the same as well as free transportation for

troops and munitions of war of the Chosen Government. It is understood that when the Government of Chosen shall acquire said railroad by purchase the ground herein leased shall revert to the Government of Chosen. In surveying the line of said railroad due care must be observed to avoid disturbing cemeteries and graves.

Further, all crossings other than mere footpaths shall be provided for by the building of necessary approaches and levels over the rails. for the passage of wheeled vehicles, and culverts shall be built in embankments when the railroad crosses a main public cart road, providing the embankment is too high for a crossing.

IV.

Said railroad shall have a station at Seoul, one at Chemulpo, one at the river, and at least three between the river and Chemulpo. The river station shall be at either Mapoo or Riong San.

V.

All materials for the construction, equipment, and operation of said railroad, which it is necessary to import from foreign countries, may be imported free of Customs duty and no taxes will be levied on said railroad or its properties or receipts.

VI.

Foreigners and natives may be employed upon said road at the discretion of its managers. Natives shall be given the preference, especially upon the earthworks where not more than ten per cent (10%) of other nationals will be employed, unless native labor is held at such a high price as to render the importation of foreign labor advisable, in which case such laborers may be imported for the work in hand with the explicit understanding that said foreign laborers shall be returned to the country from which they came upon the completion of their work. For this purpose these imported laborers shall be registered at the Customs office upon their arrival and not one shall remain after the work is finished.

VII.

For the purpose of carrying out the above business, said James R. Morse or his assigns, is authorized to organize a Company and secure necessary capital. Said Company may make contracts, hold, own and convey all property necessary for the construction, ownership, maintenance and operation of said railroad, and may operate the same and possess all the power usually exercised and enjoyed by railroad corporations generally.

VIII.

The capital stock of said Company will be hereafter determined by said James R. Morse or his assigns, who shall find the capital necessary for the proper execution of said work. The Government of Chosen shall not be responsible beyond the requirements for the right of way before named.

IX.

Said Company shall be organized and the work commenced without unreasonable delay and in any event within twelve months from the date of this decree. If work is not so commenced this concession shall lapse, provided war or other cause over which the Company has no control prevents the work from being so commenced an extension shall be granted.

Further, the work of building said railroad shall be completed within three years from the commencement of the same, unless prevented by war or other like cause, in which case an extension shall be granted equal to the time so lost.

X.

If difficulties arise between said railroad Company and the Government of Chosen as to any cause, they shall be settled by the decision of an impartial commission of from two to five persons to be appointed as follows: One commissioner shall be appointed by the Government of Chosen and one by the said railroad Company. In case these two can not agree, they may appoint a third whose decision shall be final unless he should choose to call to his assistance two more commissioners, in which case the Government of Chosen and the railroad Company shall each appoint another commissioner to act with the three. before named.

XI.

At the end of fifteen (15) years from the completion of said railroad the Government of Chosen may purchase said railroad and all its properties by paying its then appraised value, which value shall be determined by a commission to be appointed as provided for in Article X. In case the Government of Chosen is unable to purchase said railroad at the expiration of the allotted fifteen (15) years, then this concession shall be binding in favor of said Company for another period of ten (10) years. After which the Government of Chosen shall again have the option of purchase, and so on for other periods of ten (10) years each.