This cession also includes all islands appertaining or belonging to the province of Feng-t'ien, situated in the eastern portion of the bay of Liaotung and in the northern part of the Yellow Sea.

(b). The island of Formosa, together with all islands appertaining to the said island of Formosa.

(c). The Pescadores Group-that is to say, all islands lying between the one hundred and nineteenth and twelfth degrees of longitude east of Greenwich and the twentythird and two hundred and fortieth degrees of north latitude.

Article III. The alignments of the frontiers described in the preceding article, and shown on the map, shall be subject to verification and demarcation on the spot by a Joint Commission of delimitation, consisting of two or more Japanese, and two or more Chinese delegates, to be appointed immediately after the exchange of the ratifications of this act. In case the boundaries laid down in this act are found to be defective at any point, either on account of topography or in consideration of good administration, it shall also be the duty of the Delimitation Commission to rectify the same.

The Delimitation Commission will enter upon its duties as soon as possible, and will bring its labours to a conclusion within the period of one year after appointment.

The alignments laid down in this act shall, however, be maintained until the rectifications of the Delimitation Commission, if any are made, shall have received the approval of the Governments of Japan and China.

Article IV. China agrees to pay to Japan as a war indemnity the sum of two hundred million Kuping taels. The said sum to be paid in eight instalments. The first instalment of fifty million taels to be paid within six months, and the second instalment of fifty million taels to be paid within twelve months after the exchange of the ratifications of this act. The remaining sum to be paid in six equal annual instalments as follows: The first of such equal instalments to be paid within two years; the second within three years; the third within four years; the

fourth within five years; the fifth within six years; and the sixth within seven years, after the exchange of the ratifications of this act. Interest at the rate of five per centum per annum shall begin to run on all unpaid portions of the said indemnity from the date the first instalment falls due.

China, however, shall have the right to pay by anticipation at any time any or all of said instalments. In case the whole amount of said indemnity is paid within three years after the exchange of ratifications of the present act, all interest shall be waived and the interest for two years and a half or for any less period, if then already paid, shall be included as a part of the principal amount of the indemnity.

Article V. The inhabitants of the territories ceded to Japan, who wish to take up their residence outside the ceded districts, shall be at liberty to sell their real property and retire. For this purpose a period of two years from the date of the exchange of the ratifications of the present act shall be granted. At the expiration of that period, those of the inhabitants who shall not have left such territories shall, at the option of Japan, be deemed to be Japanese subjects. Each of the two Governments shall, immediately upon the exchange of the ratifications of the present act, send one or more commissioners to Formosa to effect a final transfer of that province, and within the space of two months after the exchange of the ratifications of this act transfer shall be completed.

Article VI. All treaties between Japan and China having come to an end in consequence of war, China engages immediately upon the exchange of the ratifications of this act, to appoint plenipotentiaries to conclude, with the Japanese plenipotentiaries, a treaty of commerce and navigation and a convention to regulate frontier intercourse and trade. The treaties, conventions, and regulations now subsisting between China and European Powers shall serve as a basis for the said treaty and convention between Japan and China. From the date of the exchange of the ratifica

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tions of this act until the said treaty and convention are brought into actual operation, the Japanese Government, its officials, commerce, navigations, frontier intercourse and trade, industries, ships, and subjects, shall, in every respect, be accorded by China most-favoured-nation treatment.

China makes, in addition, the following concessions, to take effect six months after the date of the present act :

First. The following cities, towns, and ports, in addition to those already opened, shall be opened to the trade, residence, industries, and manufactures of Japanese subjects, under the same conditions and with the same privileges and facilities as exist at the present open cities, towns, and ports of China:

1. Shashih, in the province of Hupeh.

2. Chung-King, in the province of Szechuan. 3. Suchow, in the province of Kiang-Su.

4. Hangchow, in the province of Chekiang.

The Japanese Goverment shall have the right to station consuls at any or all of the above-named places.

Second. Steam navigation for vessels under the Japanese flag for the conveyance of passengers and cargo shall be extended to the following places:

I. On the upper Yang-tse River, from Ichang to ChungKing.

2. On the Woosung River and the Canal, from Shanghai to Suchow and Hangchow.

The rules and regulations which now govern the navigation of the inland waters of China by foreign vessels shall, so far as applicable, be enforced in respect to the abovenamed routes, until new rules and regulations are conjointly agreed to.

Third. Japanese subjects purchasing goods or produce in the interior of China, or transporting imported merchandise into the interior of China, shall have the right temporarily to rent or hire warehouses for the storage of articles so purchased or transported without the payment of any taxes or exactions whatever.

Fourth. Japanese subjects shall be free to engage in all

kinds of manufacturing industries in all the open cities, towns, and ports of China, and shall be at liberty to import into China all kinds of machinery, paying only the stipulated import duties thereon.

All articles manufactured by Japanese subjects in China. shall, in respect of inland transit and internal taxes, duties, charges, and exactions of all kinds, and also in respect of warehousing and storage facilities in the interior of China, stand upon the same footing and enjoy the same privileges and exemptions as merchandise imported by Japanese subjects into China.

In the event additional rules and regulations are necessary in connection with these concessions, they shall be embodied in the Treaty of Commerce and Navigation provided for by this article.

Article VII. Subject to the provisions of the next succeeding article, the evacuation of China by the armies of Japan shall be completely effected within three months after the exchange of the ratifications of the present act.

Article VIII. As a guarantee of the faithful performance of the stipulations of this act, China consents to the temporary occupation by the military forces of Japan, of Wei-Hai-Wei, in the province of Shang-Tung.

Upon the payment of the first two instalments of the war indemnity herein stipulated for and the exchange of the ratifications of the Treaty of Commerce and Navigation, said place shall be evacuated by the Japanese forces, provided the Chinese Government consents to pledge, under suitable and sufficient arrangements, the Customs Revenue of China as security for the payment of the final instalment of said indemnity.

It is, however, expressly understood that no such evacuation shall take place until after the exchange of the ratifications of the Treaty of Commerce and Navigation.

Article IX. Immediately upon the exchange of the ratifications of this act, all prisoners of war then held shall be restored, and China undertakes not to ill-treat or punish prisoners of war so restored to her by Japan. China also

engages to at once release all Japanese subjects accused of being military spies or charged with any other military offences. China further engages not to punish in any manner, nor to allow to be punished, those Chinese subjects who have in any manner been compromised in their relations with the Japanese army during the war.

Article X. All offensive military operations shall cease upon the exchange of the ratifications of this act.

Article XI. The present act shall be ratified by their Majesties the Emperor of Japan and the Emperor of China, and the ratifications shall be exchanged at Chefoo, on the eighth day of the fifth month of the twenty-eighth year of Meiji, corresponding to the fourteenth day of the fourth month of the twenty-first year of Kuang Hsu.

In witness whereof, the respective plenipotentiaries have signed the same and have affixed thereto the seal of their

arms.

Done at Shimonoseki, in duplicate, this seventeenth day of the fourth month of the twenty-eighth year of Meiji, corresponding to the twenty-third day of the third month of the twenty-first year of Kuang Hsu.

COUNT ITO HIROBUMI.

VISCOUNT MUTSU MUNEMITSU.

LI HUNG CHANG.

LI CHING-FONG.

SEPARATE ARTICLES

Article I. The Japanese Military Forces which are, under Article VIII. of the Treaty of Peace signed this day, to temporarily occupy Wei-Hai-Wei, shall not exceed one brigade, and from the date of the exchange of the ratifications of the said Treaty of Peace, China shall pay annually one-fourth of the amount of the expenses of such temporary Occupation-that is to say, at the rate of 500,000 Kuping taels per annum.

Article II. The territory temporarily occupied at Wei