No. 25

JAPAN (South Manchuria Railway Company) AND CHINA

Detailed agreement for the Kirin-Changchun Railway loan.—August 18, 1909

The deputy, named below, of the Chinese Board of Posts and Communications (hereinafter called the Board of Posts and Communications) and the deputy, named below, of the South Manchuria Railway Joint Stock Company (hereinafter called the Company), acting in accordance with the Hsinmintun-Mukden and Kirin-Changchun Railway agreements between the Chinese and Japanese Governments of the 33rd year of Kuanghsü, 3rd moon, 3rd day, or the 40th year of Meiji, 4th month, 15th day (April 15, 1907), and also in accordance with the Supplementary Agreement of the 34th year of Kuanghsü, 10th moon, 19th day, or the 41st year of Meiji, 11th month, 12th day (November 12, 1908) (hereinafter called the Supplementary Agreement), have drawn up the following agreement providing for a loan for the Kirin-Changchun Railway.

ARTICLE 1.—In Accordance with Article 1 of the Supplementary Agreement, the Company agrees to make a loan of half the amount required for the construction of the Kirin-Changchun Railway, namely yen 2,150,000, Japanese currency, at a discount of 93, to be handed over at Tokyo to the Chinese Minister to Japan, the Chinese Minister there to hand over to the Company a certificate as per Form A attached to this agreement.

ART. 2. After this agreement has been drawn up, within one month after a note is addressed thereon to the Japanese Minister at Peking, the loan fixed as above will be paid in full in one instalment on the date fixed by the Chinese Government. The date for the receiving of the loan by the Chinese Government will be notified to the Company ten days before the loan is paid.

ART. 3. The loan will be for a term of twenty-five years, reckoning from the date when payment is made to China. Beginning from the sixth year it will be repaid in forty equal instalments once every half year (Gregorian Calendar), in accordance with the attached amortization table.

1 MACMURRAY, vol. I, p. 785, translation from the Chinese text as printed in WANG, p. 155.

In connection with this agreement see also the Convention regarding the Hsinmin-Mukden and Kirin-Changchun railways, April 15, 1907 (No. 15, ante); supplementary agreement for a loan for the Hsinmin-Mukden and Kirin Changchun railways, November 12, 1908 (No. 23, ante); Article 6 of the agreement relating to Chientao, September 4, 1909 (No. 28. post); Article 7 of the Sino-Japanese treaty respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 35, post); and the Kirin-Ch'angch'un Railway loan agreement of October 12, 1917 (No. 41, post).

Interest on that part of the capital which is repaid will cease on the date of repayment.

ART. 4. Interest will be reckoned from the date of the payment of the loan to China, and will be payable once every half year (Gregorian Calendar) in accordance with the attached table.

ART. 5. The Director General of the Railway Administration of the Chinese Board of Posts and Communications (hereinafter called the Administration) or the Director General of the Kirin-Changchun Railway will turn over the capital and interest, as payment thereof falls due, to the Company at Dairen or Tokyo, as convenient to the Chinese Government. The Company will then deliver to the Director General of the Kirin-Changchun Railway certificates as per Forms B and C attached to this Agreement, in accordance with the amount of capital and interest paid, as per the attached amortization and interest tables.

ART. 6. The traffic receipts of the Kirin-Changchun Railway will be deposited at the branches or suboffices of the Yokohama Specie Bank, either at Changchun or at Kirin. If, however, such receipts should be in a currency ordinarily not accepted by the branches or suboffices of the said bank, they will not be deposited therein. It follows from this that the Company and the said bank can not, in accordance with paragraph (f) of Article 3 of the Convention,1 require the Kirin-Changchun Railway Administration to make up the equivalent of such currency which, as stated above, is not ordinarily accepted by the branches or suboffices of the said bank, to be converted at the current rate and deposited at the said bank.

Of the funds deposited, to which reference is made in the preceding paragraph, if a surplus remains after the Kirin-Changchun Railway has made disbursements therefrom, then it will be kept on deposit up to the amount of six months' interest on the loan. Any surplus thereafter will be subject to the disposition of the Director General of the Administration, who may instruct the Director General of the Kirin-Changchun Railway to apply it to the use of the Chinese Government.

Interest will be paid by the bank on the deposits referred to above in the first paragraph, in accordance with the current rate of interest advertised by the branch banks or suboffices.

The matters referred to in the three preceding paragraphs will be carried on during the life of the said bank.

If the life of the said bank should expire and should be extended, the same procedure will continue to be followed.

If the life of the said bank should not be extended, the Company will then indicate another bank, and the same procedure will be continued.

1 i. e., the convention of April 15, 1907, referred to above.

ART. 7. All matters in this agreement pertaining to the payment of capital and interest, which may not have been clearly stated, may be discussed and settled by the Chinese Railway Administration and the Company, as occasion therefor arises.

ART. 8. This Agreement must be approved by the Governments of the two nations, after which it will be put into effect.

ART. 9. After this agreement has been signed and sealed, the Director General of the Administration will refer it by memorial to the Throne, and the edict of the Throne will be communicated by a note from the Chinese Board of Foreign Affairs to the Japanese Minister at Peking.

ART. 10. This agreement will become invalid after the principal and interest have been paid in full.

ART. 11. The original copies of this agreement will be drawn up in quadruplicate, in Chinese and Japanese, and one copy be given to each of the following: the Chinese Board of Foreign Affairs, the Administration, the Japanese Minister at Peking, and the Company.

ART. 12. Should there be a disagreement in regard to the interpretation of the terms of this agreement, the Administration and the Company will each choose a person from outside as arbitrator. If the arbitrators can not come to a decision, they will then both choose a person from outside to be chief arbitrator. If the two arbitrators can not agree in their choice, then each will choose one person, one of whom will be confirmed by lot. Among these men the decision of the majority will rule, and each side must abide thereby without further question.

The 1st year of Hsüan T'ung, 7th moon, 3rd day:

The 42nd year of Meiji, 8th month, 18th day:

(August 18th, 1909.)

(Signed and sealed)

LU TSU-HUA,

Expectant Prefect, Wearer of the Peacock Feather,
Deputy of the Board of Posts and Communications.

(Signed and Sealed)

The Director-General of the South Manchuria
Railway Joint Stock Company.

Attached herewith: 1

Certificate Forms A, B, and C;

Interest and Amortization Tables.

1 Not printed.

No. 26

JAPAN AND CHINA

Memorandum concerning the reconstruction of the Antung-Mukden Railway-August 19, 1909

The Imperial Japanese Consul General at Mukden, Mr. Koike, and the Viceroy of the Three Eastern Provinces, Hsi Liang, and the Chinese Governor of Mukden, Cheng, in accordance with the orders of their respective Governments, have agreed upon the following in reference to the AntungMukden Railway:

1.—The same gauge as that of the Peking-Mukden Railway shall be adopted.

2. Both Japan and China shall recognize and approve, on the whole, the line as already surveyed and agreed to by the commissioners of the two Governments, but the location of that portion of the line from Chen-hsiangtun to Mukden shall remain to be decided by mutual conference between the two countries.

3. On and from the date when the memorandum is signed, negotiations for the purchase of land and for the adjustment of all other details shall be instituted.2

4. From the day following the signing of the memorandum, that is from the day after the negotiations above mentioned are instituted, the work of reconstruction shall be accelerated.

5. China shall instruct the local officials along the line to give every facility regarding the execution of the work.

Accordingly, two copies of this having been drawn up in Japanese and in Chinese, and sealed, one copy in each language will be retained by each party as evidence of the agreement.

1 MACMURRAY, vol. 1, p. 787, translation from the Japanese text as printed in Shina Kankei Tokushu Joyaku Isan, p. 41. A translation of the five articles is printed also in F. E. Review, vol. viii, p. 16, and vol. xi, p. 389.

In connection with this memorandum see also the additional agreement attached to the treaty between Japan and China concerning Manchuria, December 22, 1905 (No. 13, ante), particularly Article 6; agreement concerning mines and railways in Manchuria, September 4, 1909 (No. 27. post); convention relating to railway connections at Antung. November 2, 1911 (No. 31. post).

2 In Chung Hwa Fa Kuei Ta Ch'üan is given, without indication of date, the Chinese text of regulations for the purchase of land for the Antung-Mukden Railway. For translation of this text, see MACMURRAY, vol. 1, p. 788.

No. 27

JAPAN AND CHINA

Agreement concerning mines and railways in Manchuria.—September

4, 1909

The Imperial Government of Japan and the Imperial Government of China, actuated by the desire to consolidate the relations of amity and good neighborhood between the two countries, by settling definitely the matters of common concern in Manchuria, and by removing for the future all cause of misunderstanding, have agreed upon the following stipulations :

ART. 1.—The Government of China engages that in the event of its undertaking to construct a railway between Hsinmintun and Fakumen, it shall arrange previously with the Government of Japan.

ART. 2. The Government of China recognizes that the railway between Tashichao and Yinkow is a branch line of the South Manchuria Railway, and it is agreed that the said branch line shall be delivered up to China simultaneously with the South Manchuria Railway upon the expiration of the term of concession for that main line. The Chinese Government further agrees to the extension of the said branch line to the port of Yinkow.

ART. 3. In regard to the coal mines at Fushun and Yuentai, the Governments of Japan and China are agreed as follows:

(a) The Chinese Government recognizes the right of the Japanese Government to work the said coal mines.

(b) The Japanese Government, respecting the full sovereignty of China, engages to pay to the Chinese Government tax upon coals produced in those mines. The rate of such tax shall be separately arranged upon the basis of the lowest tariff for coals produced in any other places of China. (c) The Chinese Government agrees that in the matter of the exportation of coals produced in the said mines, the lowest tariff of export duty for coals of any other mines shall be applied.

(d) The extent of the said coal mines, as well as all detailed regulations, shall be separately arranged by commissioners specially appointed for that purpose.2

ART. 4.-All mines along the Antung-Mukden Railway and the main line of the South Manchuria Railway, excepting those at Fushun and Yuentai, shall be exploited as joint enterprises of Japanese and Chinese subjects, upon the general principles which the Viceroy of the Eastern Three

1 MACMURRAY, vol. 1, p. 790; translation from the Japanese text, as printed in For Rel., 1909, p. 118. Printed also in Am. Int. Law Journal, Supplement, 1910, p. 130. See Note 1 to this document, post, p. 130.

2 See Note 2 to this document, post, p. 131.