the opened credits shall not exceed a period of 4 months, at the expiration of which the Bank must, if the advances made are not refunded or guaranteed by collateral in conformity with the present Charter begin proceedings against the debtors to enforce payment. The members of the Board or the managers of the branches of the Bank, to whom the Board of Directors shall have given the right in question, are responsible for the adoption of measures to carry this into effect.

The Board has the right to extend in certain cases the said credits without special guarantee, for a term not exceeding one year. The rules, under which these extensions shall be granted, have to be submitted to the approval of the Minister of Finance of Russia.

b) against bills of lading, warrants, receipts of forwarding companies, of railroad companies and of steamship societies, for goods not perishable or subject to easy depreciation, up to an amount not exceeding 80% of the value of these goods, upon condition that they should be insured for at least 10% above the amount of the loan and for a term exceeding at least one month the term of the loan, and on condition that the policies will be deposited with the Bank.

Remark.-Advances against tea can be made up to 90% of its value. e) against deposit of precious metals not above their market value. d) against deposits of goods, not perishable or subject to easy depreciation, to an amount not exceeding 80% of their value, upon condition that they be stored in fireproof and perfectly safe warehouses, that they be insured against fire for at least 10% above the amount of the loan demanded and for a period exceeding at least one month the term of the loan, that the policies be deposited with the Bank and that the rent of the warehouse be paid for a term which shall exceed by at least one month the period of the loan against the goods.

12) The insurance of goods against fire and accidents.

13) The purchase and the sale of real estate for account of third parties.

Remark. The purchase and sale of real estate in China are only allowed in the places open to foreign trade.

14) Every other credit-operation not mentioned in the preceding sections of the present article and in conformity with the customs and laws of the respective countries but only upon unanimous decision of the Board of Directors with the approval of the Minister of Finance of Russia.

* * *

PART IX.

GENERAL PROVISIONS.

§ 66.

All misunderstandings, arising in the interpretation of the present Charter, shall be finally decided by the Minister of Finance, after hearing the report thereon of the Board of Directors.

§ 67.

In all cases not provided for in the present Charter, the Bank shall act in accordance with the Russian laws now in force, or to be enacted, concerning joint-stock companies.

§ 68.

The Branches and agencies of the Bank situated in Asia are placed under the protection of the representatives of the Russian Government and submitted to the consular jurisdiction in the countries where this jurisdiction exists by virtue of treaties

No. 32.

RUSSIA.

AGREEMENT BETWEEN THE CHINESE GOVERNMENT AND THE RUSSOCHINESE BANK FOR THE CONSTRUCTION AND MANAGEMENT OF THE CHINESE EASTERN RAILWAY.

IMPERIAL SANCTION RECEIVED BY THE CHINESE ENVOY TO RUSSIA HSÜ,
DATED 29. AUGUST 1896.

AGREEMENT SIGNED SEPTEMBER 8, 1896.

[Translation from Chinese text.]

1. China and Russia establish a Company to be called the Chinese Eastern Railway Co. to construct and manage this Formation of Railway. The Seal to be used by the Company will Company; duties be issued by the Chinese Government. The regulaof Director. tions of the Company will be in conformity with those of Russian Railway Companies. Shares may only be bought by Chinese and Russians. The Director of the Company will be appointed by China. His remuneration will be provided for by the Company. He may live in Peking. His duty will be to supervise the task delegated to the Company by China, and to ascertain whether its obligations are faithfully performed. All business between the Company and the Chinese Government or any Chinese officials, either in Peking or the provinces, will also be managed by the Director. The Director will also investigate from time to time the accounts of the Company with the Chinese Government. An agent must be stationed in Peking for convenience of consultation.

of line.

2. For the purpose of surveying the course of the railway, the Chinese Director will depute an officer to act in conjuncSurvey of route tion with the Company's Engineer and the local officials along the line of route, who will arrange matters satisfactorily. Measures must be taken to pass round all houses, graves, villages, and towns on the course of the railway.

Time for commencing and completing construc

3. Within twelve months of the issue of an Imperial Edict sanctioning this agreement, the Company must have commenced work on the railway; and within six years from the date of the completion of the survey for the line and the handing over to the Company of the necessary land, the whole line must be completed. The guage of the line must be that of the Russian Railway i. e. 5 Russian feet equivalent to 42 Chinese inches.

tion.

Local officials to assist.

4. The Chinese Government will order all local officials concerned to do their utmost to assist the Company in regard to all material required for the construction of the railway, in engaging labourers and boats, carts, men and horses for transport purposes, and in the purchase of grain and fodder. All these must be paid for by the Company at market rates. The Chinese Government will also afford facilities for transport.

Staff. Protec

5. The Chinese Government will take measures for the protection of the line and of the men employed thereon. The tion, jurisdiction staff, Chinese and Foreign, necessary for the line will on leased land. be engaged as required by the Company. All crimes. and lawsuits arising on the land of the Company will be dealt with by the local officials in accordance with Treaty.

Land required, how obtained.

6. As regards the land required by the Company for constructing, managing, and protecting the line and adjacent land, for procuring sand, earth, stones and lime, if the land be Government land, it will be given the Company without payment. If privately owned, the Company will provide funds for payment to the proprietors at market rates, either in one payment or as yearly rent. All the Company's land will be exempted from land tax. As soon as the land comes under the management of the Company, they may erect thereon any buildings and carry on all kinds of work, they may establish a telegraph line thereon worked by the Company for the Company's use. With the exception of mines, for which special arrangements must be made, all receipts of the Company for transport of passengers and freight, telegrams, etc., will be exempt from all taxation.

7. All materials required by the Company for the Materials free construction and repair of the line will be exempt of duty.

from taxation.

8. All Russian troops, naval or military, and munitions of war, moved by the Russian Government by this railway, must be Conveyance of conveyed by the Company directly across the border. Apart from slight detentions en route incidental to transfers, no other delays will be permitted for any

Russian troops,

etc.

cause.

Passports.

9. Any foreign passengers by this line who may proceed into the interior away from the railway, must be provided with Chinese passports authorising them to proceed. Any person unprovided with such passports must be forbidden by the Company to proceed into the interior.

NOTE.-At the time this article was arranged it was noticed that the French text had after the word "repair" the word " "management.' The Commissioner of Customs Grote remarked to the Grand Secretary Li that "repair" and "management" were synonymous, and the word "management" appearing in the original French was omitted. There was however no intention of altering the original meaning, and this explanation is therefore added.

10. All goods and baggage coming from Russian territory and again entering Russian territory by this line will be exempt Taxation of from taxation, but such goods and baggage, with the goods carried. exception of personal luggage with passengers, must be carried by the Company in special vans and sealed by the Customs officers on entering Chinese territory, and on leaving Chinese territory they must be examined by the Customs officers to ascertain that the seals are intact, in which case they will be allowed to pass. If it be found that the seals have been opened en route the goods will be confiscated.

As to goods

Duty on goods

exported or imported over line.

conveyed by this line from Russia to China or from China to Russia, they will pay duty according to the Treaty Tariff i. e. an Import or Export duty as the case may be, but subject to a reduction of of the Tariff rate. If such goods be conveyed to the interior they must pay Transit duty in addition i. e. half the amount of the duty already paid. Transit duty being paid, they are not to be taxed again on passing Customs stations or likin barriers. But if Transit duty be not paid, they must pay duty at stations and at likin barriers. China must establish Customs stations at the two

Fares

and

Customs stations. points where the line crosses the frontier. 11. Fares for passengers, freight for goods, and charges for loading or unloading will be fixed by the Company. Chinese Government despatches and letters must be carried by the Company free of cost. Chinese troops and munitions of war will be carried at half rates.

freights. Chinese troops and muni

tions carried at

half rates.

Reversion ofline

to China after 80 years.

12. From the day of completion of the railway and the commencement of traffic, for a period of 80 years, all profit made by the line shall belong to the Company solely. Any loss must likewise be borne by it, the Chinese Government cannot be responsible. After 80 years the line and all its property are to revert to the Chinese Government without payment. Thirty six years after commencement of traffic, China may take over the line on payment of the following & all capital and Purchase of line all moneys owed on account of the line and interest. As to profits made by the Company, should there be any not distributed to shareholders, these must be taken to be capital returned and deducted from the price paid for the line. China must actually pay over the amount of purchase to Russia before receiving possession of the line.

after 36 years.

On the day the line is completed and traffic commenced the Company will pay the Chinese Government Five million Treasury taels.