(d) During the periods of these loans the Engineer-in-Chief employed shall be a Japanese, and should there be an insufficient supply of Chinese for the various posts in the service of the railways, Japanese may be employed with the Chinese. If at any time it shall become necessary to change the Engineer-in-Chief, consulation must first be had with the (South Manchuria Railway) Company before appointment may be made. There shall also be appointed one Japanese accountant, who must be thoroughly qualified, and who shall have entire responsibility for the arrangement and oversight of the various accounts of the railways, but in his supervision of receipts and expenditures he must consult and act with the Director General. (e) The railways mentioned being Chinese Government lines, the latter shall have the right to transport soldiers and subsistence over either line free of charge whenever military affairs or measures of relief shall require.

(f) All earnings of the railways in question must be deposited in Japanese banks. As to the terms upon which such deposits shall be made, satisfactory arrangements shall be agreed upon by the parties concerned when the loan contracts are drawn up.

IV. The Chinese Government immediately after the purchase of the present Hsin-min-Mukden Railway shall enter into a contract with the South Manchuria Railway Company for the loan in connection with that section of the line east of the Liao River, and shall also appoint and direct a Chinese engineer to consult and act with the Japanese engineer in making a survey of the Kirin-Chang-chun Line to furnish a basis for estimating the amount of the loan needed for the construction of the line, and within six months after the completion (of the survey) shall enter into a contract with the South Manchuria Railway Company for the loan.

V. The lines from Hsin-min to Mukden and from Kirin to Changchun under the management of China must connect with the South Manchuria Railway line. The Tientsin-Shan-hai Kuang Railway Administration and the South Manchuria Railway Company shall appoint representatives to consult together and draw up the necessary regulations.

VI. The rate at which the loans specified in Articles I and II shall be issued shall be determined fairly in accordance with the terms of the most recent loan negotiated by China with any foreign country.

VII. Within one month after the payment of the purchase price of the Hsin-min-Mukden Railway, the Chinese Railway Administration shall appoint officers to take control of the same.

Japanese Calendar, Meiji XL Year, Fourth Moon, 15 Day.

Chinese Calendar, Kuanghsu XXXIII Year, Third Moon, 3 Day. (April 15, 1907.)

No. 16

JAPAN (South Manchuria Railway Company) AND CHINA Agreement for the handing over by Japan of the Mukden-Hsinmint'un Railway, together with the rolling-stock and equipment.—May 27, 1907

Chou Ch'ang-ling, Expectant Taotai, Second Grade Button, DirectorGeneral of the Railway Administration Inside and Outside Shanhaikwan, and

"Chiu-Pao-T'ien-Cheng-Chou," Director-General of the South Man

churia Railway,

having been duly empowered, have agreed upon the following articles relating to the handing over of the Mukden-Hsinmint'un Railway, together with locomotives, rolling-stock and materials.

The parties named, having assured each other of being fully empowered by their respective Governments, have drawn up an agreement, in accordance with the following articles, for the purpose of handing over to the Chinese Railway Administration the railway between Mukden and Hsinmint'un, together with all equipment in the neighborhood of the line, rollingstock, and materials.

Two copies have been drawn up in Chinese and two in Japanese.

ARTICLE 1. The articles to be handed over to the Chinese Government are as stated in the attached list.

ART. 2. The date of handing over is fixed as the 40th year of Meiji, 6th month, 1st day, or the 33rd year of Kuanghsü, 4th moon, 21st day (June 1, 1907). All funds received, together with all matters relating to train traffic, will pass under the charge of the Chinese Railway Administration. Before the road is handed over they will remain under the charge of the South Manchuria Railway Company.

ART. 3. All officials and employees now belonging to the road will be temporarily borrowed of the South Manchuria Railway Company during a period of seven days, beginning from the date of the handing over of the road, until the Chinese Railway Administration can appoint substitutes

1 MACMURRAY, vol. 1, p. 632, translation from the Chinese text as printed in WANG, p. 131.

In connection with this agreement see also the Sino-Japanese conventions regarding the Hsinmin-Mukden and Kirin-Changchun Railways, April 15, 1907 (No. 15, ante); supplementary agreement for a loan for the Hsinmin-Mukden and KirinChangchun Railways, November 12, 1908 (No. 23, post); detailed agreement concerning the Hsinmin-Mukden Railway Loan, August 18, 1909 (No. 24, post).

therefor. Salaries and expenses during the said period of seven days will be defrayed by the South Manchuria Railway Company, in order to facilitate the handing over of the road, and as an expression of friendship.

ART. 4. A list of the names of the officials and employees on the road is now handed to the Chinese deputy. If the Chinese Railway Administration wishes to continue their services, the South Manchuria Railway Company will give heed to the wishes of the individuals.

ART. 5. After the road has been handed over, if not within the period for the alteration of the line, the matter of train traffic and the appointment of officers by each party will be taken up and settled, that cooperation may be facilitated.

ART. 6. Besides the articles to be handed over, referred to in Article 1, if not within the period for the alteration of the line, the materials collected for the repair of rolling-stock and rails will be given to the Chinese Railway Administration in accordance with a list drawn up by the South Manchuria Railway Company, to be handed over as they now stand.

ART. 7. Besides the articles referred to in the preceding article, if there should be any important articles required by the Chinese Railway Administration, they will be handed over at a just price, providing the South Manchuria Railway Company does not suffer inconvenience thereby. ART. 8. Besides the rolling-stock and materials to be handed over, referred to in Article 1, if not within the period for the alteration of the line, such articles as are urgently needed by the Chinese Railway Administration will be loaned to it at a just rental, providing the South Manchuria Railway Company suffers no great inconvenience thereby.

ART. 9. If not within the period for the alteration of the line, coal and water required by the Chinese Railway Administration will be supplied at a just price, providing the South Manchuria Railway Company suffers no great inconvenience thereby.

ART. 10. After the road has been handed over, articles to be removed to the South Manchuria Railway Company, not included among those to be handed over, together with the caretakers thereof, will be transported from Hsinmint'un to the South Manchuria Railway by the Chinese Railway Administration free of charge. Officials and employees of the said company, together with their families and household effects, will receive similar treatment within a period of six months, at the expiration of which the right cannot be availed of.

ART. 11. Important matters which may arise in the future, in addition to those mentioned in these articles, will be taken up and settled by mutual conference.

Kuanghsü, 33rd year, 4th moon, 16th day:

Meiji, 40th year, 5th moon, 27th day:

(May 27th, 1907).

CHOU CH'ANG-LING,

Expectant Taotai, Second Grade Button, Director
General of the Railway Administration Inside and
Outside Shanhaikwan.

"CHIU-PAO-T'IEN-CHENG-CHOU,"

Director-General of the South Manchuria Railway.

No. 17

JAPAN AND CHINA

Agreement for the establishment of a maritime customs office at Dairen, and for inland waters steam navigation.-May 30, 1907

The Governments of Japan and China having agreed to the establishment of an office of the Chinese Imperial Maritime Customs at Dairen, the undersigned duly authorized by their respective Governments hereby engage to accept for the general guidance of that office, and as a preliminary and provisional measure, the detailed understanding set forth in the documents hereto attached, viz.,

(A) Agreement about the establishment of a Maritime Customs Office at Dairen, and

(B) Inland Waters steam Navigation.

And it is further agreed that in the spring of next year after the experience of one season there shall be a reconsideration of the present arrangement in order to fuller accord with local conditions and needs and that for the documents now accepted there shall be substituted a revised agreement supplemented by an Ordinance, the former to be prepared by the Japanese Minister and the Inspector General of Customs and the latter by the Japanese Authorities of the leased territory in communication with the Commissioner of Customs at Dairen. And it is further understood that the Japanese Authorities will take steps to prevent smuggling from the leased territory into China and support the Chinese Authorities in the

1 Official English text as printed in CUSTOMS, vol. ii, p. 740. Printed also in Traités et Conventions, p. 204; For. Rel., 1907, p. 133, MACMURRAY, vol. I, p. 634.

The customs house at Dairen was opened on July 1, 1907. It is understood that no revision of this agreement has been made as contemplated.

Provisional customs regulations for the leased territory of Kwantung were enacted by an ordinance of the Government-General of Kwantung under date of June 26, 1907. For a translation from the Japanese text, embodying certain subsequent amendments, see MACMURRAY, vol. I, p. 638.

measures they adopt to prevent smuggling from China into the leased territory, and also that a suitable procedure shall be arranged for dealing with railway traffic at the Dairen terminus and the frontier station (Wa Fang Tien or other) and temporary regulations be made for collection of duties by the Customs.

AGREEMENT ABOUT THE ESTABLISHMENT OF A MARITIME CUSTOMS OFFICE AT DAIREN

1. The Commissioner or the Chief of the Maritime Customs Office at Dairen is to be of Japanese nationality. The Inspector General of Customs will come to an understanding with the Japanese Legation at Peking in case of appointing a new Commissioner.

2. The members of the staff of the Maritime Customs Office at Dairen shall, as a rule, be of Japanese nationality; in case, however, of a suddenly occurring vacancy or of temporary requirements of the Service, members of other nationalities may be provisionally sent to Dairen.

3. The Inspector General of Maritime Customs will inform the Governor General of the leased territory beforehand about the change of the Commissioner of Customs at Dairen.

4. All correspondence between the Customs Office at Dairen and the Japanese authorities and Japanese merchants shall be conducted in the Japanese language. Should, however, merchants of other nationality come to reside at Dairen, they shall be at liberty to correspond in English or in Chinese.

5. On merchandise brought by sea to Dairen no Import Duty shall be levied. Import Duty according to existing Treaties shall be levied by the Maritime Customs Office on all merchandise or products passing the Japanese frontier of the leased territory into the interior of China. The Japanese authorities agree to take suitable measures to assist as far as it is possible in the prevention of merchandise passing the Japanese frontier when not provided with a Permit or Pass by the Maritime Customs Office.

6. When Chinese merchandise or products brought from the interior of China into the Japanese leased territory are shipped from Dairen to other places, they will pay the Export Duty according to existing Treaties. Produce