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Concerning the Turning over of the Operation of the Railways under the Jurisdiction of the Government General of Chosen

"(Imperial Ordinance No. 90, July 31, 1917)
[Translation]

"The Governor General of Chosen may intrust to the South Manchuria Railway Company the construction, improvement, preservation and operation of the railways and the undertakings connected therewith under his jurisdiction.

"In the cases mentioned in the preceding paragraph, the Governor General of Chosen may issue necessary orders to or make necessary arrangements with the South Manchuria Railway Company for the carrying out of the undertakings intrusted to it or cause the officials to inspect the undertakings.

"Supplementary Rule. This Ordinance shall be effective from the date of its promulgation."

No. 14

JAPAN AND CHINA

Agreement for the rendition of the Port of Ying-k'ou (Port of Newchwang).'-December 5, 19062

In accordance with the Four Articles agreed upon by the Governments of China and Japan at Peking in the month of October last,3 providing for the return of Ying-k'ou by Japan to the control of China, the two

1 MACMURRAY, vol. I, p. 612, translation from the Chinese text.

In connection with this agreement see also the treaty between Japan and China, December 22, 1905 (No. 13, ante).

2 Signed at Newchwang.

3 The Chinese text reads "Japanese calendar 10th month (i. e., October); Chinese calendar 9th moon (i.e., 18th October-15th November)." The Peking Agreement referred to was signed November 9th, 1906, between the Wai Wu Pu and Mr. Hayashi, Minister of Japan, in terms of which the following is a translation:

"(1) Previous to the withdrawal of the Japanese troops from Ying-k'ou (Port of Newchwang) all regulations relating to quarantine inspection and the prevention of epidemics must be determined by the local authorities in consultation with the Japanese Consul.

"(2) All public works begun during the period of military occupation, or arranged for but not yet begun must be taken over and completed by the local authorities, or the latter must allow the Japanese to complete them.

"(3) All matters relating to police and sanitation shall be under the control of the Chinese local authorities, who shall administer them in a thoroughly efficient manner so as to secure the general welfare. To this end, Japanese Police Inspectors and Medical Officers are also to be employed. Should the administration be unsatisfactory in any particular the Japanese Consul may make representations to the local authorities, who shall advise with him and take such action as the circumstances may require.

"(4) Both the Native Customs and the Imperial Maritime Customs shall be under the control of the Customs Taot'ai. The Chinese Government shall for the present deposit all receipts from both Customs with the Yokohama Specie Bank, but hereafter, as soon as the Bank of the Board of Finance shall have established its branch, these receipts shall be deposited with both banks."

Governments mentioned have now appointed representatives, who have met at Ying-k'ou and have agreed upon the following:

1. Whereas Article I of the Peking Memorandum provides that previous to the withdrawal of the Japanese Military forces regulations relating to quarantine inspection (or public health) at Ying-k'ou shall be adopted by the Chinese local authorities in consultation with the Japanese Consul, now, therefore, we, representatives of the two Governments concerned, have agreed that, for the time being, such matters shall be dealt with under the regulations adopted by the Japanese military authorities, and that afterwards, should occasion arise requiring their modification, the Chinese local authorities may of their own authority take such action as may be needed. 2. Whereas Article II of the Peking Memorandum provides that all public works begun during the military occupation, or for which arrangements were made at that time shall be taken over by the local authorities, or by them allowed to be undertaken by the Japanese, we now find that the Japanese military authorities have granted permission to a joint stock company to establish water works, electric tramways, an electric light plant, and a telephone system at Ying-k'ou, and we, representatives of the two Powers concerned, have agreed that the said company may undertake the water works, electric tramways, and electric lighting, but that it will be necessary first to send the Regulations adopted by the company to Peking to be filed with the Board (s) concerned, and, if it shall appear necessary to the said Board(s) so to do, to be altered, or to have additions made to them, or excisions from them; and the said company agrees to comply accordingly.

As for the telephone system, it should be taken over by the Imperial Chinese Telegraph Service, and be operated by it, and the said Telegraph Service and the company shall each appoint a representative to examine the telephone property, as already established in Ying-k'ou, and estimate the price at which it shall be bought. If these representatives fail to agree upon a price, the said Telegraph Service and the company shall together select a disinterested arbitrator to determine the same, whose decision shall be accepted by both parties.

As to the abattoir, it shall be taken charge of by the Health Office, and the manner of fixing the price at which it shall be bought shall be similar to that adopted in the case of the purchase of the telephone system by the Telegraph Service.

The light railway extending from Ying-k'ou to Niuchia-t'un shall be taken up as soon as the electric tramway is completed. All works of public utility undertaken by the Japanese military authorities, or arranged for but not yet begun, the Chinese local authorities agree to take over and complete as planned.

3. Whereas it is provided in Article III of the Peking Memorandum that matters affecting police administration and public health shall be under the control of the Chinese local authorities; that the management thereof shall be most efficient so as to secure public safety; that Japanese police instructors and physicians shall be employed in the administration, and that, if any cause of dissatisfaction should arise, the Japanese Consul may notify the local authorities who shall consult with him and take the necessary action; now we, representatives of the two Governments concerned, have agreed that in the employment of Japanese police instructors and physicians the same regulations shall be adopted as in the case of the Japanese police instructors and physicians employed in Tientsin, except in the matter of salaries; and, if hereafter dissatisfaction should occur in the administration of police affairs, immediately upon a notification to that effect from the Japanese Consul the local authorities shall consult with him and take such action as may be needed.

4. No suits at law decided during the military occupation shall be reopened by the Chinese local authorities. The records in all such cases, and other documents connected with them, shall be delivered by the military government to the Chinese local authorities for filing. The military government shall also make copies of all such records and deposit the same at the Japanese Consulate at Ying-k'ou.

5. Whereas it is provided in Article 4 of the Peking Memorandum that both the Imperial Maritime Customs and the Native Customs shall be placed under the control of the Customs Taot'ai, and that the Chinese Government shall for the present deposit the receipts of both said customs with the Yokohama Specie Bank, and that hereafter when the Bank of the Board of Finance shall have established a branch (at Ying-k'ou) the receipts shall be deposited with both banks; now therefore we, representatives of the two Governments concerned, have agreed that the local authorities concerned and the Yokohama Specie Bank shall together arrange the terms of such deposit with the Yokohama Specie Bank at Ying-k'ou.

6. The military government at Ying-k'ou agree that on the sixth of December, 1906, it will entirely withdraw from said port.

(Dated) Ming-chih (Meiji XXXIX Year, 12th Month, 5th Day. Kuang Hsü XXXII Year, 10th Moon, 20th Day. (December 5, 1906.)

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First Secretary, Japanese Legation,
ANANOSHIN SEGAWA,

Japanese Consul at Newchwang,

Lieut. Colonel KIKEI YOKURA,

Representatives of the Imperial Japanese Gov't.

LIANG JU-HAO [M. T. LIANG],

Intendant of the Chin-chen-Shan-hai-kuan Circuit,
Representative of the Imperial Chinese Gov't.

No. 15

JAPAN AND CHINA

Convention regarding the Hsinmin-Mukden and Kirin-Changchun Railways.-April 15, 1907

Gonsuke Hayashi, Envoy Extraordinary and Minister Plenipotentiary of Japan. and Na-t'ung, Ch'u Hungchi, and Tong Shao-i, Ministers of the Imperial Chinese Board of Foreign Affairs, having been appointed thereto by their respective governments, have agreed upon the following Articles: I. The Chinese Government, being desirous of purchasing the Hsin-min Fu-Mukden Railway, constructed by Japan, hereby agrees that the purchase price thereof shall be Japanese Gold Yen 1,660,000, to be paid through the Yokohama Specie Bank at Tientsin.

The status of this railway shall be changed by the Chinese Government to that of the lines built by China herself, and it is agreed that one-half of the capital needed for that part of the line east of the Liao River shall be borrowed from the South Manchuria Railway Company.

II. The Chinese Government, being about to construct a railway line herself from Kirin to Changchun Fu, agrees to borrow from the aforesaid Company one-half of the capital needed for this work.

III. The conditions of the loans provided for in Articles I and II, with the exception of the periods within which they are to be repayable, shall be in all respects similar to those of the loan contracts of the Railways Inside and Outside Shan-hai Kuan. The most important conditions are mentioned below. The Regulations for the management of the railway lines shall correspond with the methods at present employed by the General Office of the Railway Lines Inside and Outside Shan-hai Kuan.

(a) The periods within which the loans shall be repaid shall be

1 MACMURRAY, vol. 1, p. 627; translation from the Chinese text as printed in WANG, p. 127. Printed also in For. Rel., 1907, p. 776; HERTSLET, p. 397; F. E. Review, vol. XI, p. 391.

In connection with this convention see also the agreement for the handing over of the Hsinmin-Mukden Railway, May 27, 1907 (No. 16, post); supplementary agreement for a loan for the Hsinmin-Mukden and Kirin-Changchun Railways, November 12, 1908 (No. 23, post); detailed agreements concerning the Hsinmin-Mukden and the Kirin-Changchun Railway loans, August 18, 1909 (Nos. 24 and 25, post); also, with particular reference to the Kirin-Changchun Railway, see Article 6 of the agreement relating to Chientao, September 4, 1909 (No. 28, post), and Article 7 of the Sino-Japanese treaty respecting South Manchuria and Eastern Inner Mongolia, May 25, 1915 (No. 35, post), and Kirin-Changchun Railway loan agreement of October 12, 1917 (No. 41, post).

For the text of a preliminary agreement of June 28/July 11, 1902, for the construction of the Kirin-Changchun Railway by the Chinese Eastern Railway, see MACMURRAY, vol. I, p. 629.

for that part of the Hsin-min-Mukden Line east of the Liao River 18 years, and

for the Kirin-Changchun Line 25 years.

No repayment in full of these loans shall be allowed before the expiration of the periods named.

(b) The security for the loan from the South Manchuria Railway Company for that part of the Hsin-min-Mukden Line east of the Liao River shall be the real property of the aforesaid section and its earnings.

The security for the mercantile shares to be issued by the Kirin-Changchun Railway Administration as well as for the loan to be made from the South Manchuria Railway Company shall be the real property of the said Railway and its earnings.

So long as these loans are not repaid by the Chinese Government, the aforesaid property and earnings of the above-named lines shall not be pledged as security for any other loan.

During the periods of these loans the Chinese Government agrees that the buildings, machinery, rolling-stock, and road-bed of the section of the Hsin-min-Mukden Railway east of the Liao River and of the Kirin-Changchun Railway shall be kept in good condition, and furthermore that such additions will be made to the rolling-stock from time to time as may be required to satisfy demands of the traffic.

If the Kirin-Changchun Line should hereafter build branch lines or an extension, the construction of such lines shall rest of right with the Chinese Government, but, if there should be a lack of capital, application shall be made to the (South Manchuria Railway) Company for an arrangement. Should China, however, appropriate funds herself for the construction of any other railway lines than those mentioned, it shall not concern the South Manchuria Railway Company.

(c) The loans and the interest thereon are guaranteed by the Chinese Government, and should there be any failure to make payment of interest or repayment of principal at the proper periods, the Company shall at once notify the Chinese Government, which shall pay over to the Company the amount of the shortage. If the Chinese Government, after such notification by the Company, shall be unable to make good the deficit in the payments of principal or interest, the line in question with its real property shall be handed over to the temporary control of the Company until the shortage is made good, after which it shall be returned to the control of the Railway Administration."

If, however, the shortage be for a small amount only, an extension of time shall be granted as an accommodation, but never for more than three months.

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