"As a result of the existing desire on the part of the Imperial Government to reach an understanding with the Chinese Government on the question of railways in Shantung Province and repeated discussions between the two governments, the following railway loans have been lately agreed upon:

"(A) From Tsinanfu, Shantung Province, to Shunteh, Chihli Province. "(B) From Kaomi, Shantung Province, to Hsuchow, Kiangsu Province.

"The amount of 20,000,000 Yen will be furnished to the Chinese Government by the Japanese Syndicate as an advance loan. In case investigations show that these proposed railways would be unprofitable from a business point of view, different lines will be substituted by agreement of both parties. The proposed lines extend over about 460 miles altogether and will cost 70,000,000 Yen, which will be raised in a similar manner as the loans for the four railways in Manchuria and Mongolia. The conclusion of this agreement is said to have resulted in a better understanding between the two governments on the future of the railways in Shantung Province.

"3. The Iron Industry Loan.

"For the purpose of promoting economic harmony between Japan and China, the Chinese Government has been planning to establish a National Iron Works and obtain the necessary capital for starting the work with skilled engineers and experts for the management and supervision from Japan. Negotiations between the Chinese Government and the Japanese Syndicate have been going on for some time and an agreement has recently been reached, and the conclusion for a loan of about 100,000,000 Yen is expected to be announced soon. The establishment of this National Iron Works will result not only in the Chinese Government having the fundamental equipment for manufacturing and supplying all the iron needed for China itself but also Japan will derive much benefit by obtaining the manufactured iron or iron ores from China.

"The Terauchi Cabinet, just retired, has been particularly active of promoting these economic enterprises between Japan and China, and the consummation of these various economic loans are said to be due to their efforts. Besides the loans enumerated above, the Terauchi Cabinet had concluded with China the Communications Bank Loan [ibid., p. 1387], the Telegraph Loan [ibid., p. 1424], the Kirin-Hueining Railway Loan [No. 42, post] and a loan with all the forests and gold mines in both Kirin and Amur Provinces for security [No. 43, post]."

No. 34

GREAT BRITAIN AND RUSSIA

Agreement respecting the inclusion of British subjects within the scheme of municipal administration and taxation established in the area of the Chinese Eastern Railway.'-December 3, 1914

NOTE OF THE BRITISH MINISTER AT PEKING TO THE RUSSIAN MINISTER THERE, NOVEMBER 20/DECEMBER 3, 1914

Sir and dear Colleague,

I have the honor to inform Your Excellency that His Britannic Majesty's Government have had under consideration the draft Agreement recently negotiated and signed in English and Russian on the 17/30 of April last by the British Consul at Harbin and the local Russian Authorities.

1 MACMURRAY, vol. II, p. 1181. Printed also in Bulletin of the Laws, January 9/22, 1915, Section 1; Izviestia, 1915, vol. ii, pp. 1-9.

See Note to this document, post, p. 154.

respecting the inclusion of British subjects and their property within the scheme of Municipal Administration and Taxation established in the area of the Chinese Eastern Railway.

I now received instructions from Sir E. Grey stating that His Majesty's Government approve this Agreement. I therefore have the honor to inform you that as soon as I learn that the Imperial Russian Government on their side have approved the Agreement I will take the necessary steps to enforce its provisions upon the British subjects concerned from January 1st next.' I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

(Signed) J. N. JORDAN.

NOTE OF THE RUSSIAN MINISTER AT PEKING TO THE BRITISH MINISTER THERE, NOVEMBER 20/DECEMBER 3, 1914

[TRANSLATION]

Mr. Minister and dear Colleague:

I have the honor to acknowledge the receipt of the note of to-day's date by which your Excellency was so good as to inform me that the Government of His Britannic Majesty has approved the draft agreement recently negotiated and signed at Harbin on April 17/30 last, in English and Russian, between the local Russian authorities and the Consul of His Britannic Majesty in that city, in regard to the application to British subjects, and to their property, of the scheme of municipal administration and taxation established in the area of the Chinese Eastern Railway. Your Excellency further stated that you would take the necessary steps to insure the application of these provisions to the British subjects concerned from January 1 next, as soon as I should have made known to you that the Imperial Russian Government had on their side approved the agreement referred to.

In taking note of this communication, I hasten to advise you that I am instructed by the Imperial Government to bring to your Excellency's knowledge the fact that it has likewise approved the above-mentioned draft agreement.

Pray accept, etc.

(Signed) B. KROUPENSKY.

1 The agreement of April 17/30, 1914, was made applicable to British subjects by "King's Regulations" (No. 20 of 1914) published by the British Minister at Peking, December 5, 1914 (MACMURRAY, vol. II, p. 1187).

AGREEMENT

Between the Russian and British Governments respecting the Inclusion of British Subjects within the Scheme of Municipal Administration and Taxation established in the Area of the Chinese Eastern Railway.

ARTICLE 1. The Imperial Russian Government having declared that all taxes and dues collected in the Railway Settlement at Harbin and in other Settlements situated in the area of the Chinese Eastern Railway shall be exclusively devoted to municipal and public purposes for the common benefit of the inhabitants of these places, His Britannic Majesty's Government agrees to the payment by British Subjects residing in the Railway Settlement at Harbin and in other Settlements situated in the area of the Chinese Eastern Railway of the same dues and taxes, whether levied in money or in kind, which are paid by Russian Subjects. His Britannic Majesty's Government further agrees that the payment of the said dues and taxes and the observance of the local Regulations and Byelaws, of which a list is hereunto annexed, shall be made obligatory upon the aforesaid British Subjects from 1 January 1915, and, in like manner, undertakes to make binding upon British Subjects from the day upon which they take effect for Russian Subjects any additional or amended Regulations and Byelaws of a similar kind, provided that due notice of their intended introduction is given and that nothing is contained therein which conflicts with the extraterritorial rights of British Subjects. It is agreed that the length of such notice shall in the case of new or amended Regulations be two months and in that of new or amended Byelaws two weeks.

ART. II. In consideration of the foregoing, British Subjects residing in the Railway Settlement at Harbin and in other Settlements situated in the area of the Chinese Eastern Railway shall have the active and passive right of election to the local Municipal Administrations, both those now existing and those hereafter established, and shall exercise this right, like Russian Subjects, in accordance with the stipulations of the local Municipal Regulations. At Harbin, also, there shall be introduced into the Municipal Council consisting, in all, of six members, the term of whose office is three years, a representative of the foreign (non-Russian) community, who shall be a foreign (non-Russian) resident of good standing, the manner of whose election shall be as follows: The resident representatives, having full Consular jurisdiction, of those Foreign Powers, exclusive of Russia, who have obliged their nationals to pay taxes and observe the local Regulations and Byelaws in accordance with the stipulations of this Agreement shall-in consultation amongst themselves, the opinion of the majority to prevailprepare and present in good time to the Manager of the Chinese Eastern Railway for transmission to the Municipal Council a list containing the

names of not less than three and not more than five persons from amongst whom the Assembly of Delegates shall elect by an ordinary majority vote— lots to be cast in case of even ballot-the representative in the Municipal Council of the foreign (non-Russian) community. The election of this Councillor shall be simultaneous with that of other members of the Council and the term of his office shall be concurrent with theirs. Should he resign or be dismissed before the expiration of this period, the Assembly of Delegates shall at the ordinary meeting occurring next after the preparation by the aforesaid Consular representatives of a new list, elect in the manner before stated, another member to serve for the remainder of the current term. The dismissal before his period of service has expired of a member of the Council elected in the method above described shall not be effected except with the consent of a majority of the Consular representatives aforesaid.

The member of the foreign community for the present triennial period shall be elected in the manner before stated at a supplementary election which shall be held not later than two weeks after the presentation to the Manager of the Chinese Eastern Railway by the Consular representatives of the prescribed list of names.

ART. III. British Subjects residing in the Railway Settlement at Harbin and in other Settlements situated in the area of the Chinese Eastern Railway shall as regards all matters of an economic character, more especially such as relate to trade and industry and leases of land lots-enjoy the same rights and privileges as Russian Subjects. This equality shall also avail should, in the future, the present restricted rights to land be at any time enlarged or should lessees of land lots or owners of houses be the recipients, on the lapse or termination of the Chinese Eastern Railway Company's holding, of compensation of whatever kind.

ART. IV. It is agreed that, should objections be raised by British Subjects regarding the amount of the assessment tax on commercial and industrial enterprises exploited by them, their affidavits made before the British Consular Representative as to the size and character of the said enterprises shall be accepted in definite proof.

It is agreed, also, that permission shall not be given to British Subjects to open, establish or maintain hotels, boarding or eating houses, houses of entertainment or shops for the sale of liquors except on production of a permit issued for the purpose by the British Consulate.

ART. V. It is agreed that the Police Authorities in Harbin and in other Settlements situated in the area of the Chinese Eastern Railway shall give prompt effect to any requests preferred by the British Consular Representative for the adoption of coercive measures against British Subjects; but Officers of the force shall not, on their own initiative and in the absence

of such requests, take any coercive action against British Subjects except in cases involving a breach of the peace.

ART. VI. British Subjects shall be entitled to the benefit of any more favored treatment which may be accorded by the Imperial Russian Government to the Subjects or Citizens of other Foreign Powers resident in the Railway Settlement at Harbin or in other Settlements situated in the area of the Chinese Eastern Railway.

ART. VII. The Imperial Russian Government undertakes that the Regulations and Byelaws, of which a list is hereunto annexed, shall be brought into accord with the stipulations of this Agreement by the date mentioned in Article I.

We, the undersigned, hereby certify that the foregoing is the Draft Agreement concluded between us regarding the inclusion of British Subjects within the Scheme of Municipal Administration and Taxation established in the Area of the Chinese Eastern Railway.

Harbin, April 17/30, 1914.

(Signed):

W. TRAUTSCHOLD,

Imperial Russian Consul General.

E. DANIEL,

Delegate of the Chinese Eastern Railway
Administration.

H. E. SLY,

His Britannic Majesty's Consul.

Note

On February 11, 1914, the French Ministry for Foreign Affairs had addressed to the Russian Embassy in Paris an aide-mémoire, of which the translation (from the French text as printed in Izviestia, 1914, vol. II, p. 39) is as follows:

"The Imperial Embassy was so good as to bring to the knowledge of the Ministry for Foreign Affairs, on the 9th of this month, that the Imperial Government would be happy if the French Government should feel disposed to recognize an obligation on the part of its nationals and protégés to observe the Russian municipal regulations and to pay the municipal taxes in the towns situated on the territories of the Chinese Eastern Railway.

"Mr. Doumergue is happy to be able to give Mr. Iswolsky the assurance that the Government of the Republic fully recognizes this obligation on the part of French nationals and ressortissants, and avails himself of this occasion to renew to him the assurance of his highest consideration."

The Government of the Netherlands gave its adherence to the Anglo-Russian agreement through a note addressed by its Minister at Peking to the Russian Minister under date of September 25, 1915, of which the translation (from the French text printed in Izviestia, 1915, vol. vI) is as follows:

"The Government of the Queen, having taken note of the agreement concluded between Russia and England concerning the application to British subjects, and to their property, of the municipal, financial and administrative system established in the zone