EXCHANGE OF NOTES RESPECTING THE ARRANGEMENT FOR POLICE LAWS AND ORDINANCES AND TAXATION IN SOUTH MANCHURIA AND EASTERN INNER MONGOLIA. Monsieur le Ministre, -Note Peking, the 25th day of the 5th month of the 4th year of the Republic of China. I have the honour to state that, as regards the police laws and ordinances and the taxation to which Japanese subjects shall submit according to Article 5 of the Treaty respecting South Manchuria and Eastern Inner Mongolia signed this day, the Chinese authorities will come to an understanding with the Japanese Consul before their enforcement. I have the honor to acknowledge the receipt of Your Excellency's note of this day's date in which you state. "As regards the police laws and ordinances and the taxation to which Japanese subjects shall submit according to Article 5 of the Treaty respecting South Manchuria and Eastern Inner Mongolia signed this day, the Chinese authorities will come to an understanding with the Japanese Consul before their enforcement." In reply, I beg to state that I have taken note of the same. I avail, etc., (Signed) HIOKI EKI. His Excellency, Lou Tseng-tsiang, Minister of Foreign Affairs. EXCHANGE OF NOTES RESPECTING THE POSTPONEMENT OF THE Monsieur le Ministre, -Note Peking, the 25th day of the 5th month of the 4th year of the Republic of China. I have the honour to state that, inasmuch as preparations have to be made regarding Articles 2, 3, 4 & 5 of the Treaty respecting South Manchuria and Eastern Inner Mongolia signed this day, the Chinese Government proposes that the operation of the said Articles be postponed for a period of three months beginning from the date of the signing of the said Treaty. I hope your Government will agree to this proposal. (Signed) LoU TSENG-TSIANG. His Excellency, Hioki Eki, Japanese Minister. Excellency, -Reply Peking, the 25th day of the 5th month of the 4th year of Taisho. I have the honour to acknowledge the receipt of your Excellency's note of this day's date in which you stated that, "inasmuch as preparations have to be made regarding Articles 2, 3, 4 & 5 of the Treaty respecting South Manchuria and Eastern Inner Mongolia signed this day, the Chinese Government proposes that the operation of the said Articles be postponed for a period of three months beginning from the date of the signing of the said Treaty." In reply, I beg to state that I have taken note of the same. I avail, etc., (Signed) HIOKI EKI. His Excellency, Lou Tseng-tsiang, Minister of Foreign Affairs. APPENDIX XXVII JAPAN (Industrial Bank of Japan, Bank of Chosen, and Bank of Taiwan) AND CHINA. Preliminary Agreement for a Loan for the Construction of the Kirin-Hueining Railway.-June 18, 1918. For the purpose of constructing the railway from Kirin, in the Republic of China, to Hueining, through the Southern part of Yenchi (Chientao) and the Tumen River, the Government of the Republic of China (hereinafter called A) hereby enters into the present preliminary agreement with the three Japanese Banks, the Industrial Bank of Japan, the Bank of Chosen and the Bank of Taiwan, represented by the Industrial Bank of Japan (hereinafter called B) as the basis of a formal loan agreement for the same Railway : ARTICLE 1.-A shall with due promptness outline the amount of funds required for the construction of the railway and other items of necessary expenditure and bring it to the notice of B for its consent. In accordance with the amount of funds required as referred to above, B shall issue 5 per cent. public loan bonds of the Republican Government of China in gold currency for A. ARTICLE 2.-The period for the redemption of the present loan shall be limited to forty years. Redemption of the loan shall begin from the 11th year calculating from the date of the issue of the bonds and the method of yearly instalment redemption shall be followed. ARTICLE 3.-As soon as the formal agreement for the KirinHueining Railway loan is signed, A shall begin to construct the line so as to hasten its completion. ARTICLE 4.-A shall build the railway bridge over the Tumen River conjointly with the Railway Department of the Office of the Japanese Governor General for Korea and shall share half of the expenses thereof. Regarding the through traffic between this railway and the railway in Korea, a separate agreement shall be entered into with a view to developing the traffic and securing the smooth co-operation of the two railways concerned. ARTICLE 5.—A shall pledge the following assets to B as security for payment of interest and redemption of the present loan bonds: All the property owned by and the revenue due to the railway either at present or in the future. Without the approval of B, A shall not offer either the property or the revenue of the railway to others as loan security. ARTICLE 6.-The actual amount of funds to be received by A out of the issue of the present loan bonds shall be such as to be more profitable to A than what is stipulated in the SsupingkaiChengchiatun Railway Loan Agreement concluded on December 17 of the 4th year of the Republic. The rate at which the present loan bonds are to be issued shall be fixed according to the circumstances under which they are issued. ARTICLE 7.-Regarding the particulars which are not provided for under the foregoing articles, they shall be decided upon by A and B in accordance with the Tientsin-Pukow Railway Loan Agreement signed on the 10th of the 12th moon of the 33rd Year of Kuanghsu. ARTICLE 8.-The present preliminary agreement shall be the basis of the formal agreement for the Kirin-Hueining Railway Loan, which shall be concluded within six months after the conclusion of the present preliminary agreement. ARTICLE 9.-Upon the conclusion of the present preliminary agreement, B shall pay to A an advance of $10,000,000 in full without any deduction for commission. ARTICLE 10.-The advance referred to above shall bear 71⁄2 per cent. interest per annum; that is, 71⁄2 yen shall be paid for the yearly interest of every 100 yen. ARTICLE 11. The advance shall be paid to A in specie in exchange for the Treasury Notes issued by A. ARTICLE 12.-The Treasury Notes mentioned in the foregoing article shall be subject to change every six months. At each occasion of their change for new ones, the interest due for the said period shall be paid to B. ARTICLE 13. After the conclusion of the formal agreement for the Kirin-Hueining Railway Loan, the advance shall have the preferential right of being repaid with the proceeds from the issue of the loan bonds referred to above. ARTICLE 14. The payment of the advance, its redemption and the payment of its interest and other transactions in connection therewith shall be carried out at Tokio. Two copies of the present preliminary agreement shall be written in the Chinese language and two copies in the Japanese language and A and B shall each keep one copy written in each language. In case any dispute arises with regard to the interpretation of the agreement, the text of the one written in Japanese shall be considered as authoritative. APPENDIX XXVIII JAPAN (Industrial Bank of Japan, representing a Syndicate consisting of the Industrial Bank of Japan, the Bank of Taiwan and the Bank of Chosen) AND CHINA. Preliminary agreement for a loan for railways in Manchuria and Mongolia.-September 28, 1918. The following preliminary agreement has been concluded between the Government of the Chinese Republic (hereinafter called the Government) and the Industrial Bank of Japan, representing the Industrial Bank of Japan, the Bank of Taiwan and the Bank of Chosen (hereinafter called the Banks), with the object of concluding a loan contract for the purpose of building a railway between Jehol and Taonan, a railway between Changchun and Taonan, a railway between Kirin and Kaiyuan by way of Hailung, and a railway from a point on the Jehol-Taonan Railway to a certain seaport (hereinafter called the Four Railways of Manchuria and Mongolia). ARTICLE 1.-The Government shall permit the banks to raise all the funds required for building the Jehol-Taonan, ChangchunTaonan, Kirin-Kaiyuan Railways, and the railway between a point on the Jehol-Taonan Railway to a certain seaport, by means of Chinese Government bonds of the Jehol-Taonan Railway, bonds of the Changchun-Taonan Railway, bonds of the Kirin-Kaiyuan Railway, and bonds of the . . . railway respectively (hereinafter called the gold bonds of the Four Manchurian and Mongolian Railways). Provided, however, that the route of the railway from a point on the Jehol-Taonan Railway to a certain seaport shall be decided upon by consultation between the Government and the Banks. ARTICLE 2.-The Government shall speedily determine the expense for constructing the Four Railways of Manchuria and |