Chinesische Gesellschaft), in which German and Chinese merchants may take shares.

(3) Arrangements for carrying out the above are to be made by the two countries as soon as possible.

The German-Chinese company is to receive favourable treatment from China, and to enjoy all the other privileges granted to Chinese-European (or foreign) commercial companies established elsewhere in China.

This article is conceived only in the interests of commerce; it has no other design, and the railways mentioned in no way constitute an annexation of Shantung territory.

(4) Within 30 li (10 miles) of the above railways, as, for instance, in Wei Hsien and Po-shan Hsien, on the northern line from Kiao-chau to Chi-nan Fu, and in I-chou Fu and Lai-wu Hsien, on the southern line from Kiao-chau, via I-chou to Chi-nau Fu, Germany is permitted to excavate coal, &c. The necessary works may be undertaken by German and Chinese merchants combining their capital. Mining regulations will be subsequently drawn up. The German merchants and workmen, as in the case of railways, receive favourable treatment from China, and the same privileges as other companies.

This Article is also conceived only in the interests of trade, and has no other design.

Section III.

If within the Province of Shantung any matters are undertaken (N.B., the wording is very wide) for which foreign capital or assistance is invited, China agrees that the German merchants concerned shall first be asked whether they wish to undertake the works and provide the materials. If they do, China may make any arrangements she pleases.

The remainder of the Convention provides for ratification and exchange of ratifications.

DESPATCH FROM
FROM HER MAJESTY'S MINISTER AT
PEKING, FORWARDING COPIES OF THE NOTES
EXCHANGED WITH THE CHINESE GOVERNMENT
RESPECTING THE NON-ALIENATION
YANG-TSZE REGION.

OF THE

SIR C. MACDONALD TO THE MARQUESS OF SALISBURY.

Peking, February 20th, 1898.

AT my interview with the Ministers of the Tsung-li Yamên, on the 9th instant, I produced a draft of the note I intended addressing to them with regard to non-alienation of the Yang-tsze region. This was accepted with little demur, with the insertion of the words "now entirely hers," which, as recording an undeniable fact, I agreed to put in. Copies of the notes subsequently exchanged are inclosed.

SIR C. MACDONALD TO THE TSUNG-LI YAMÊN.

MM. LES MINISTRES :

Peking, February 9th, 1898.

Your Highnesses and your Excellencies have more than once intimated to me that the Chinese Government were aware of the great importance that has always been attached by Great Britain to the retention in Chinese possession of the Yang-tsze region, now entirely hers, as providing security for the free course and development of trade.

I shall be glad to be in a position to communicate to Her Majesty's Government a definite assurance that China will never alienate any territory in the provinces adjoining the Yang-tsze to any other Power, whether under lease, mortgage, or any other designation. Such an assurance is in full harmony with the observations made to me by your Highnesses and your Excellencies.

THE TSUNG-LI YAMEN TO SIR C. MACDONALD.

February 11th, 1898.

The Yamên have the honour to acknowledge the receipt of the British Minister's despatch of the 9th February, stating that the Yamên had more than once intimated to him that the Chinese Government were aware of the great importance that has always been attached by Great Britain to the retention in Chinese possession of the Yang-tsze region, now entirely hers, as providing security for the free course and development of trade. The British Minister would be glad to be in a position to communicate to Her Majesty's Government a definite assurance that China would never alienate (any territory) in the provinces adjoining the Yang-tsze to any other Power, whether under lease, mortgage, or any other designation.

The Yamên have to observe that the Yang-tsze region is of the greatest importance as concerning the whole position (or interests) of China, and it is out of the question that territory (in it) should be mortgaged, leased, or ceded to another Power. Since Her Britannic Majesty's Government has expressed its interest (or anxiety), it is the duty of the Yamên to address this note to the British Minister for communication to his Government.

CONVENTION BETWEEN RUSSIA AND CHINA CONCERNING PORT ARTHUR AND TALIENWAN.

(Signed March 27th, 1898.)

THE Governments of Russia and China being desirous of adding some stipulations to the treaty concluded at Peking on the 15th March, 1898 (Russian Calendar), the plenipotentiaries of both Governments have agreed upon the following:

Article I. In accordance with the IInd Article of the original treaty the northern territory leased and yielded to Russia-Port Arthur, Talienwan, and the Liaotung Peninsula-shall commence from the north side of A-tang Bay on the west coast of Liaotung and shall pass through the ridge of A-tang Mountain (the mountain ridge being included in the leased ground) to the east coast of Liaotung near the north side of Pi-tzu-wo Bay. Russia shall be allowed the use of all the waters adjacent to the leased territory and all the islands around it.

Both countries shall appoint special officers to survey the ground and determine the limits of the leased territory.

Art. II. To the north of the boundary fixed in Art. I. there shall, in accordance with Art. V. of the Peking Treaty, be a neutral ground, the northern boundary of which shall commence on the west coast of Liaotung at the mouth of the Kai-chou River, shall pass north of Yu-yen-ch'âng to the Ta-yang River, and shall follow the left bank of that river to its mouth, which shall be included in the neutral territory.

Art. III. The Russian Government consents that the terminus of the branch line connecting the Siberian Railway with the Liaotung Peninsula shall be at Port Arthur and Talienwan, and at no other port in the said peninsula.

It is further agreed in common that railway privileges in districts traversed by this branch line shall not be given to the subjects of other Powers. As regards the railway which China shall [may] herself build hereafter from Shan-hai-kuan in extension to a point as near as [lit. nearest to] possible to this branch line, Russia agrees that she has nothing to do with it.

Art. IV. The Russian Government assents to the request of the Chinese Government that the Administration and police of the City of Kinchow shall be Chinese. Chinese troops will be withdrawn from Kinchow and replaced by Russian troops. The inhabitants of the city have the power to use the roads from Kinchow to the north boundary of the leased territory, and the waters usually required near the city, but they have no power to use the sea-coast roundabout.

Art. V. The Chinese Government agrees [lit. agrees to recognise]

1. That without Russia's consent no concession will be made in the neutral ground for the use of subjects of other Powers.

2. That the ports on the sea-coast east and west of the neutral ground shall not be opened to the trade of other Powers.

3. And that without Russia's consent no road and mining concessions, industrial and mercantile privileges shall be granted in the neutral territory.