"1. The importation and exportation of goods of every kind are allowed free of customs dues in the town, port, and adjacent territory, within the limits determined by and liable to modification by the Minister of Finance.

"2. The right of free trade thus granted does not affect transport, anchorage, and other dues of various kinds, levied at ports.

"3. The Quarantine Regulations, issued with a view to preventing the introduction of infectious diseases, must be strictly observed by all ships entering the port. "4. Goods imported into Russia which come from the territory enjoying the right of free trade will be examined, will pay import duty, and will enter the Empire under the general conditions in force for the importation of foreign goods.

"Invoking the blessing of the Lord upon this truly pacific work of the future, we intrust to your care the superintendence of the construction of the town and port. NICHOLAS."

The following is a translation of an imperial order of July 30/August 12, 1903, creating the Imperial Lieutenancy of the Far East:

Russian Imperial Order regarding Imperial Lieutenancy of the Far East.August 12, 1903

"The complicated problems of administration in the provinces bordering the eastern frontier of the Empire induce us to be solicitous for the institution of the authority over those provinces.

"In order to assure the pacific satisfaction of the urgent local requirements by the exercise of that authority and recognizing the necessity of forming a Special Lieutenancy to include all the Provinces now under the rule of the Governor General of Pri-Amur and the Kuantung Province it is decreed as follows:

"1. The Imperial Lieutenant of the Far East is invested with the supreme (or high) power in respect of civil administration over those provinces and is independent of different ministries. He is also given the supreme authority regarding the maintenance of order and security in the localities appropriated for the benefit of the Chinese Eastern Railway. Due care and protection in regard to the interests and wants of Russian subjects in the neighboring territories outside of the border of the Imperial Lieutenancy are also confided to him.

"2. Until the law of administration of the Imperial Lieutenancy of the Far East shall have been promulgated, the authority, rights and obligations of the Imperial Lieutenant in relation to both central and local authorities shall be defined in accordance with the principle of the Imperial Decree of January 30, 1845, which was promulgated at the time of the establishment of the Lieutenancy of the Caucasus. All administrative offices and all officials under the Imperial Lieutenant are not allowed to communicate with different ministries and departments concerned except through the Imperial Lieutenant.

"3. All diplomatic relations with neighboring powers in regard to affairs arising in those provinces of the Far East shall be concentrated in the hands of the Imperial Lieutenant.

"4. The command of the naval forces in the Pacific and of all military forces stationed in the territories assigned to him is given to the Imperial Lieutenant.

"5. In order that the action of the chief authority of the Far East shall conform with the general policy of the Empire and the activities of the Ministers a special committee under Our Presidency shall be instituted. Those who assembled and participate in the committee have Our confidence.

"6. General Adjutant Alexieff who is appointed as the Imperial Lieutenant of the Far East is charged with the development of this Imperial Decree and the drafting of the law of administration of those provinces of the Far East together with its enforcement regulations. The Senate will not fail to take due measures when the project shall have been submitted to Us for Our Sanction.

"Given at Peterhof under Our own signature, July 30/August 12, 1903.

NICHOLAS."

No. 5

RUSSIA AND CHINA

Additional agreement defining the boundaries of the leased and neutralized territory in the Liaotung Peninsula.—May 7, 1898

The Governments of Russia and China being desirous of adding some stipulations to the Treaty concluded at Peking on the 15/27th March, 1898,2 the Plenipotentiaries of both Governments have agreed upon the following: ARTICLE I. In accordance with Article II of the original Treaty the northern territory leased and yielded to Russia-Port Arthur, Talienwan, and the Liaotung Peninsula-shall commence from the north side of Ya Tang Bay on the west coast of Liaotung and shall pass through the ridge of Ya-tang Mountain (the mountain ridge being included in the leased ground) to the east coast of Liaotung near the north side of the P'i-tzû-wo Bay. Russia shall be allowed the use of all the waters adjacent to the leased territory and all the islands around it.

Both countries shall appoint special officers to survey the ground and determine the limits of the leased territory.

ART. II. To the north of the boundary fixed in Art. I, there shall, in accordance with Art. V of the Peking Treaty, be a neutral ground, the northern boundary of which shall commence on the west coast of Liaotung at the mouth of the Kai-chou River, shall pass north of Yu-yen-cheng to the Ta-yang River, and shall follow the left bank of the river to its mouth, this river also to be included in the neutral territory.

ART. III. The Russian Government consents that the terminus of the branch line connecting the Siberian Railway with the Liaotung Peninsula shall be at Port Arthur and Talienwan, and at no other port in the said peninsula.

It is further agreed in common that railway privileges in districts traversed by this branch line shall not be given to the subjects of other Powers. As regards the railway which China shall [may] herself build hereafter from Shan-hai-kuan in extension to a point as near as [lit., nearest to] possible to this branch line, Russia agrees that she has nothing to do with it.

ART. IV. The Russian Government assents to the request of the Chinese Government that the Administration and police of the City of Kinchow shall be Chinese. Chinese troops will be withdrawn from Kinchow and replaced by Russian troops. The inhabitants of the city have the power

1 MACMURRAY, vol. 1, p. 127, translation from the Chinese text as printed in CUSTOMS, Vol. II, p. 227. Printed also in translations from unofficial versions in China, No. 1 (1899), p. 188; ROCK HILL, p. 53; Am. Journal Int. Law, Supplement, 1910, p. 291; F. E. Review, vol. 11, p. 395; HERTSLET, p. 508.

In connection with this agreement see the convention for the lease, March 27, 1898 (No. 4, ante); also the agreement for the southern Manchurian branch of the Chinese Eastern Railway, July 6, 1898 (No. 6, post).

2 No. 4, ante.

to use the roads from Kinchow to the north boundary of the leased territory, and the waters usually required near the city, the use of which has been granted to Russia; but they have no power to use the sea-coast (round about).

ART. V. The Chinese Government agrees [lit., agrees to recognize]: 1. That without Russia's consent no concession will be made in the neutral ground for the use of subjects of other Powers.

2. That the ports on the sea-coast east and west of the neutral ground shall not be opened to the trade of other Powers.

3. And that without Russia's consent no road and mining concessions, industrial and mercantile privileges shall be granted in the neutral territory. ART. VI. The Articles agreed to above will be drawn up, one copy in Chinese and one in Russian, and signed by the plenipotentiaries of the two countries.

text.

For purposes of interpretation, the Russian will be the authoritative

Kuang-hsü, 24th year, 3rd intercalary month, 17th day: Russian Calendar, April 25, 1898 (May 7th, 1898).

No. 6

RUSSIA (Chinese Eastern Railway) AND CHINA Agreement concerning the southern branch of the Chinese Eastern Railway.—July 6, 1898

Hsü (Ching-ch'eng), Ambassador (?) of the Imperial Chinese Government, and Yang (-ju), Minister of the Imperial Chinese Government to Russia, have received an Imperial Decree of the 7th of the Fifth Moon, XXIV Year of Kuang-hsü, that is the 13th of June, 1898, Russian Calendar (June 25th, 1898, New Style), authorizing them to draw up a contract with the Chinese Eastern Railway Company in accordance with the provisions of the Treaty between China and Russia, entered into at Peking on the 6th of the Third Moon, XXIV Year of Kuanghsü, i. e. March 15, 1898, Russian Calendar (March 27th, 1898, N. S.) and those of the Special Supplementary Articles to the same, agreed upon at St. Petersburg on the 17th of the Intercalary Third Moon-April 25, 1898-(May 7th, 1898, N. S.)3 to the effect that, from the date of the signing of said Treaty by the Chinese Government, in accordance with the permission given in the XXII Year of Kuanghsü (1896) to the Chinese Eastern Railway Company to construct certain railways, a branch line might be built and operated, which should

1

1 MACMURRAY, vol. I, p. 154, translation from the Chinese text as printed in CUSTOMS, Vol. II, p. 233. See Note to this document, post, p. 50.

begin at a station, to be selected on the main line of the Chinese Eastern Railway, and extend to the sea-ports, Dalny and Port Arthur in the Liaotung Peninsula; the said branch line to be dealt with in careful compliance with the terms of the Contract of the 2d of the Eighth Moon, XXII Year of Kuanghsü, August 27, 1896, Russian Calendar (September 8, 1896, N. S.)1 between the Chinese Government and the Russo-Chinese Bank.

In accordance with the foregoing provisions, the following Articles relating to the construction and operation of a railway through Manchuria are now agreed upon, to-wit:

ARTICLE I. This branch of the Chinese Eastern Railway, extending to the sea-ports of Port Arthur and Dalny, shall be known as the Southern Manchurian Branch of the Chinese Eastern Railway.

ART. II. In accordance with Article IV of the Contract of the 2d. of the Eighth Moon, XXII Year of Kuanghsü, August 27, 1896 (Sept. 8th, 1896, N. S.), which provides that the Chinese Government shall take steps as occasion may require to facilitate the bringing in of the materials needed for the construction of the line, whether transported by water or by land, it is now agreed that the Company may employ steamers or other vessels, and such vessels flying the Company's flag shall be permitted to proceed up the Liao River or any of its branches, and to enter Ying-k'ou (the port of Newchwang) or any port in the Neutral Territory which may prove advantageous to the work of constructing this line, and may there discharge cargo.

ART. III. In order to facilitate the bringing in by the Chinese Eastern Railway Company of the materials and provisions needed in the construction of the Southern Manchurian Branch, it is permitted the Company to build temporary branch lines from this road to Ying-k'ou and to sea-ports in the Neutral Zone, but when the work of building the line is completed and the road is open for traffic the Company must at the notice of the Chinese Government remove these branch railways; that is to say, within eight years from the date of the survey and determination of the line and the appropriation of the land for its construction these temporary branch lines must be removed.

ART. IV. In accordance with the permission granted to the Company in the XXIII Year of Kuanghsü (1897) to cut timber and mine coal for the use of the railway, it is now agreed to allow the Company to fell timber at its pleasure in the forests on government lands, each tree to be paid for at a price to be fixed by the Engineer-in-Chief or his deputy in consultation with the local authorities, but not higher than the local market. rate. But no forests on property in the province of Shengking belonging to the Imperial Family, or on sites that affect the feng-shui being under the direct control of the Peking Government may be injured or disturbed.

The Company shall also be allowed in the regions traversed by this branch line to mine such coal as may be needed for the construction or

1 No. 3, ante.

operation of the railway, the price of which coal shall be fixed by the Engineer-in-Chief or his Deputy in consultation with the local authorities but shall not exceed the royalty paid by other parties in the same locality. ART. V. Within the leased territory on the Liao-tung Peninsula Russia may fix the Customs Tariff to suit herself, and China may levy and collect duties at the boundaries on all goods going from the leased territory. to the interior or from the interior to the leased territory. In dealing with this matter China may arrange with Russia for the latter Government to establish the Customs at Dalny and from the date of the opening of the said port to international trade to appoint the Chinese Eastern Railway Company to act as the Agent of the Chinese Imperial Board of Revenue to open and manage the Customs and in its behalf to levy and collect duties. The said Customs shall be under the sole control of the Peking Government, to which the said Agent shall from time to time report its management. In addition there shall be appointed a Chinese civil official to be stationed as Deputy at the said Customs. All baggage of passengers and all goods brought from railway stations within the Russian boundaries by the said line into the territory leased to Russia in the Liao-tung Peninsula, or shipped from the said leased territory into the Russian Empire shall be entirely free of all Customs duties as well as of all Inland Transit and Likin dues. Goods shipped by rail from the interior of China to the leased territory or from the leased territory to the interior must pay export or import duties respectively according to the Imperial Maritime Customs Tariff without increase or reduction.

ART. VI. The Company may at its pleasure assume the responsibility of establishing a line of sea-going vessels flying the Company's flag, to be operated under the Regulations for Foreign Mercantile Shipping. Should these vessels or the management of the business in connection therewith occasion any financial loss, the Chinese Government shall not be held responsible. Passenger fares and freight rates shall be established by the Company to suit itself, and shall in no wise concern the railway. The period of the management of the said enterprise being of course unlimited, the provisions of Article XII of the Contract between the Chinese Government and the Russo-Chinese Bank of the XXII year of Kuanghsü (1896)1 fixing a price for the purchase of the railway, and a date for its reversion to China without payment, shall not apply to this undertaking.

ART. VII. As to the location of the Southern Manchurian Railway Line, and the determination of the places through which it shall pass, it will be necessary to wait until the Engineer-in-Chief shall have surveyed the route through Manchuria and made report of the conditions to the Head Office of the Company, when the Company or its Agent in Peking shall consult with the Director General of the Railway and decide the matter.