the habits of the people. The first thing to be taught to the population of Asia is that they will gain more in favouring and protecting the caravans trade than in robbing them. These elementary ideas can only be accepted by the public where one exists; that is to say, where there is some organized form of society, and a Government to direct and represent it.

"We are accomplishing the first part of our task in carrying our frontier to the limit where the indispensable conditions are to be found.

"The second we shall accomplish in making every effort henceforward to prove to our neighbouring States, by a system of firmness in the repression of their misdeeds, combined with moderation and justice in the use of our strength, and respect for their independence, that Russia is not their enemy, that she entertains towards them no idea of conquest, and that peaceful and commercial relations with her are more profitable than disorder, pillage, reprisals, and a permanent state of war.

"The Imperial Cabinet, in assuming this task, takes as its guide the interests of Russia. But it believes that at the same time it is promoting the interests of humanity and civilisation. It has a right to expect that the line of conduct it pursues, and the principles which guide it, will meet with a just and candid appreciation.

✓

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APPENDIX C.

RUSSIA AND KHIVA.

TREATY of Peace between Russia and Khiva, prepared by General Aide-de-Camp Kaufmann, commanding the forces acting against Khiva, and accepted by the Khan of Khiva, Seyyid-Mahomed-Rahim-Bahadur-Khan.

1. Seyyid-Mahomed-Rahim-Bahadur-Khan acknowledges himself to be the humble servant of the Emperor of all the Russias. He renounces the right of maintaining any direct and friendly relations with neighbouring rulers and khans, and of concluding with them commercial or other treaties of any kind whatsoever, and shall not, without the knowledge and permission of the superior Russian authorities in Central Asia, undertake any military operations against such neighbouring countries.

2. The boundary between the Russian and Khivan

territories shall be the Amou Darya from Kukertli down the river as far as the point at which the most westerly branch of the Amou Darya leaves the main stream, and from that point the frontier shall pass along such branch as far as its mouth in the Aral sea. Farther, the frontier shall extend along the sea-coast to Cape Urgu, and from thence along the base of the chink (escarpment) of the Ust-Urt, following the socalled ancient bed of the Amou Darya.

3. The whole of the right bank of the Amou Darya, and the lands adjoining thereunto, which have hitherto been considered as belonging to Khiva, shall pass over from the Khan into the possession of Russia, together with the people dwelling and camping thereon. Those parcels of land which are at present the property of the Khan, and of which the usufruct has been given by him to Khivan officers of State, become likewise the property of the Russian Government, free of all claims on the part of the previous owners. The Khan may indemnify them by grants of land on the left bank.

4. In the event of a portion of such right bank being transferred to the possession of the Ameer of Bokhara by the will of His Majesty the Emperor, the Khan of Khiva shall recognise the latter as the lawful possessor of such portion of his former dominions, and engages to renounce all intention of re-establishing his authority therein.

5. Russian steamers, and other Russian vessels, whether belonging to the Government or to private individuals, shall have the free and exclusive right of navigating the Amou Darya river. Khivan and

Bokharan vessels may enjoy the same right, not otherwise than by special permission from the superior Russian authority in Central Asia.

6. Russians shall have the right to construct wharves (landing-places) on the left bank wheresoever the same shall be found necessary and convenient. The Government of the Khan shall be responsible for the safety and security of such wharves. The approval of the localities selected for wharves shall rest with the superior Russian authorities in Central Asia.

7. Independently of such wharves, Russians shall have the right to establish factories on the left bank of the Amou Darya for the purpose of storing and safe-keeping their merchandise. For the purposes of such factories the Government of the Khan shall allot, in the localities which shall have been indicated by the superior Russian authorities in Central Asia, a sufficient quantity of unoccupied land for wharves, and for the construction of storehouses, of buildings for the accommodation of servants of the factories, and of persons transacting business with the factories, and of merchants' offices, as well as for the establishment of domestic farms. Such factories, together with all persons residing thereat and with all goods placed therein, shall be under the immediate protection of the Government of the Khan, which shall be responsible for the safety and security of the same.

8. All the towns and villages, without exception, within the Khanate of Khiva shall henceforward be open to Russian trade. Russian merchants and Russian caravans may freely travel throughout the entire

khanate, and shall enjoy the special protection of the local authorities. The Government of the Khan shall be responsible for the safety of caravans and stores.

9. Russian merchants trading in the khanate shall be free from the payment of customs duties (zakat), and of all kinds of dues on trade, in the same manner as the merchants of Khiva have long enjoyed immunity from zakat on the route through Kazalinsk, at Orenburg, and at the stations (landing-places) on the Caspian sea.

10. Russian merchants shall have the right of carrying their goods through the Khivan territory to all neighbouring countries free of customs duties (free transit trade).

11. Russian merchants shall, if they desire it, have the right to establish agents (caravan bashis) in Khiva and other towns within the khanate, for the purpose of maintaining communication with the authorities and superintending the regularity of their trade.

12. Russian subjects shall have the right to hold immovable property in Khiva. A land-tax shall be leviable on the same by agreement with the superior Russian authority in Central Asia.

13. Commercial engagements between Russians and Khivans shall be fulfilled inviolably on both sides.

14. The Government of the Khan engages to examine (inquire into), without delay, the complaints and claims of Russian subjects against Khivans, and in case such complaints and claims shall have proved to be well founded, to give immediate satisfaction in respect of the same. In the examination of disputes