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belonging to, passengers unloaded at the goods inspection office and inspected there.

(c) When customs officials in the course of inspection in accordance with the two preceding paragraphs discover dutiable articles, the duties shall be collected directly from the passengers owning such articles.

(d) Hand baggage or small goods entrusted for shipment shall be brought to the goods inspection station for inspection.

(e) With reference to small goods and freight leaving or arriving at the Antung-hsien station, the consignors or consignees shall attend to their passage through the customs and any other formalities.

(f) With reference to freight and small goods passing through the Antung-hsien station, employees of the South Manchuria Railway Company shall attend to the procedure of passing them through the customs on behalf of the consignors or consignees, and shall have them inspected in the presence of the customs officials; and the customs duties on dutiable articles shall be advanced by the company.

(g) The South Manchuria Railway Company and the Railway Bureau of the Government General of Chosen, in order to enable customs officials to conduct inspection on the train, shall issue to such customs officials.permanent free passes for both railways.

7. Trains crossing the boundary between the two countries may not carry troops.

This provision shall not apply to troops whose stationing has been permitted by treaty, provided, however, that notice must be given prior to their crossing the national boundary.

8. Koreans who have heretofore resided in China shall be dealt with in accordance with usage; other Koreans not possessing passports may not travel in the interior of China beyond the limits of train journeys.

9. When trains of the two railways cross the national boundary, it is necessarily expected that the freight charges on similar goods both for export and for import shall be equal.

10. Since, in accordance with treaty, the Antung-Mukden Railway is to be purchased by the Chinese Government after fifteen years, the present convention shall be applicable to said railway only prior to such purchase; and after the purchase the two Governments shall agree upon separate regulations relative to through train service.

IN WITNESS WHEREOF, the commissioners of the two countries have signed and sealed the present convention in duplicate in the Japanese and Chinese languages.

Second day of the 11th month of the 44th year of Meiji (November 2,

1911), corresponding to the 12th day of the 9th moon of the 3rd year of Hsuan Tung.

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No. 32

JAPAN AND CHINA

Agreement concerning special duty reduction treatment of goods imported into Manchuria from or through Chosen, and exported from Manchuria to or through Chosen, by rail via Antung.'-May 29, 1913

ARTICLE 1.-On dutiable goods leaving Manchuria by railway for places beyond Hsin Wiju, and on dutiable goods proceeding to Manchuria by railway from places beyond Hsin Wiju, export and import duties respectively shall be levied at two-thirds of the Maritime Customs duty rates.

ARTICLE 2.-Goods exported from Manchuria by railway for subsequent shipment from Hsin Wiju by the Yalu Waterway, and, vice versa, goods having arrived at Hsin Wiju by the Yalu Waterway and thence into Manchuria by railway, are not entitled to the aforesaid reduction in duty.

In consequence on all dutiable goods exported from Manchuria to Hsin Wiju by railway full duty will be charged. A rebate of one-third of the duty will, however, be granted on goods

(a) For local consumption at Hsin Wiju.

(b) Which subsequently, within a period of two years from their date of exportation from Manchuria, are transported by railway beyond Hsin Wiju.

In regard to goods mentioned under (a), the Import Permit, issued by the Hsin Wiju Customs (showing payment of import duty), and in regard to goods mentioned under (b), the Transport Permit, issued by the Hsin. Wiju Customs, giving the necessary particulars to enable the Antung Customs to identify the original goods exported, will be accepted as proof of the goods having complied with the conditions necessary to obtain a rebate of one-third of the duty.

On dutiable goods imported by railway into Manchuria from Hsin Wiju, other than those mentioned in the beginning of this Article, import duty will be charged at the rate of two-thirds of the Maritime Customs duty rate in force, if the goods are accompanied by the Hsin Wiju Customs Export Permit or Transport Permit, declaring that they have not arrived by vessel.

1 MACMURRAY, vol. II, p. 1039, text printed in CUSTOMS, vol. II, p. 775. With the text of this agreement is printed in CUSTOMS, p. 777, an exchange of notes of which the purport is indicated by a letter of the Japanese Minister to the Inspector General of Maritime Customs of the same date (MACMURRAY, vol. II, p. 1041).

In connection with this agreement, see the convention relating to railway connections at Antung, November 2, 1911 (No. 31, ante); and provisional regulations for the working of the maritime customs office at Antung, March 31, 1912 (MACMURRAY, ibid., p. 950.)

Any change in the procedure of the Korean Customs may necessitate a revision of the Chinese Customs procedure in regard to the goods mentioned in this Article.

ARTICLE 3. The transit dues on goods coming under the one-third duty reduction privilege conveyed to the interior of Manchuria are onethird the Maritime Customs Tariff duty, i.e., one-half of the two-thirds import duty paid.

ARTICLE 4.-Goods imported at Antung under the one-third duty reduction privilege and subsequently conveyed by rail to a non-Manchurian treaty port or the interior of the provinces of China Proper, or conveyed by sea to any place in Manchuria or China Proper, will have to make good to the Chinese Maritime Customs the reduction enjoyed before they will be accorded the ordinary Customs treatment given foreign imports in accordance with treaty stipulations.

ARTICLE 5.-Applicants applying for goods must hand in, in addition to the English and Chinese Application, duplicate copy of the Railway Way Bill containing the following particulars: Name of sender and, if possible, the name of the addressee, place of despatch of goods (the station of departure), destination (name of railway station), denomination, quantity and weight of goods, mode of packing, signs, marks, numbers, etc., and, when possible, the value of the goods, and the signature of the railway official appointed for the purpose.

ARTICLE 6.—The principle of the Korean and Chinese Customs authorities mutually assisting each other in preventing frauds against the revenues of their respective countries is recognized.

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Exchange of notes in regard to the construction of certain railways in Manchuria.-October 5, 1913

THE CHINESE MINISTER FOR FOREIGN AFFAIRS TO THE JAPANESE MINISTER AT PEKING

SIR, The question of Chinese railway loans has often been raised by you and discussed many times. A plan has now been decided upon, which is communicated to you herewith:

1 MACMURRAY, ibid., p. 1054. Translation (from Chinese text?) as given in the Far Eastern Review, vol. 15, No. 11 (November, 1918), p. 449.

General Provisional Railway Loan Agreement

(1) The Government of the Chinese Republic agrees to make a loan from Japanese capitalists for the construction of the following railways: (a) From Ssupingkai via Chengchiatun, to Taonanfu.

(b) From Kaiyuan to Hailungcheng.

(c) From the Changchun station of the Kirin-Changchun Railway, across the South Manchuria Railway line, to Taonanfu.

The lines referred to above will connect with the South Manchuria Railway and the Peking-Mukden Railway. Arrangements therefor will be drawn up separately.

(2) The detailed arrangements in regard to the loans mentioned above will be modelled on the Pukow-Sinyang Railway Loan Agreement.1 After this general agreement has been drawn up the Chinese Government will, as soon as possible, come to agreements with Japanese capitalists. (3) The Chinese Government agrees that if in future railways are to be built from the city of Taonanfu to the city of Chengtehfu (Jehol), and from Hailungfu to the city of Kirin, that if it is proposed to borrow foreign capital, negotiations will first be entered into with Japanese capitalists.

Note

In reference to these and certain other concessions, the Japan Advertiser of October 2, 1918, published the following report of an official statement issued by the Japanese Government:

"According to an authoritative statement given out yesterday, the Imperial Government had arranged the following loans with the Chinese Government, prior to the resignation of the Terauchi cabinet:

"1. Four railway loans in Manchuria and Mongolia. [See No. 44, post.]

"An agreement was made several years ago between the Imperial and the Chinese Government that the latter would borrow the necessary capital from Japan in case so-called five railways in Manchuria and Mongolia were to be construced.

"The work on one of the five railways between Szepingkai and Chengkiatun has been started by the Chinese Government with capital furnished by Japan and the loans for the remaining four railways have been recently agreed upon. These railways

are:

"(A) From Taonanfu to Jehol.

"(B) From Changchun to Taonanfu.

"(C) From Kirin to Kaiyuen via Hailung.

"(D) From a point on the Taonanfu-Jehol railway to a seaport.

"These lines total more than one thousand miles altogether costing, it is estimated, about 150,000,000 Yen. The Chinese Government is expected to use a Gold Loan which will be subscribed entirely by the Japanese Bankers' Syndicate. The syndicate will furnish 20,000,000 Yen to China as an advance loan, forming part of the Gold Loan proper.

"2. The Tsinanfu and the Kaomi Railway Loans. [See MACMURRAY, vol. II, p. 1450.]

1 MACMURRAY, ibid., p. 1068.

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