No. 53.

RUSSIA.

IMPERIAL ORDER FOR THE BUILDING OF DALNY AND CREATING IT A FREE PORT. a

[Translation.]

JULY 30, 1899.

TO THE MINISTER OF FINANCE.-Our Empire, comprising as it does immense territories in Europe and Asia, is called upon by Divine Providence to contribute to the pacific intercourse of the peoples of the East and the West. For the attainment of this historic object we have received the friendly assistance of the Chinese Empire, which has ceded to us the use of the Harbour of Talienwan and Port Arthur, with the adjacent territory, and has furnished for the Great Siberian Railway an outlet through its possessions to the Yellow Sea. Thanks to this wise decision of the Government of His Majesty the Emperor of China, the extreme limits of two continents of the Old World will very shortly be connected by an uninterrupted line of rails, which will secure for all nations the incalculable advantages of easy communication, and bring new regions within the operations of the commerce of the world.

In our increasing solicitude for a scheme of such general utility as this, we have directed our attention to the first-rate importance which, when once the line is constructed, its terminus, the port of Talienwan, will acquire. Having declared after its occupation that this port was open to the commercial fleets of all nations, we deem it advisable now to proceed to the construction near this port of a town, to which we give the name of "Dalny."

At the same time, with a view to the commercial development of the future town, we grant to the same for the entire period for which its territory is handed over to Russia by China, under the arrangement of the 15th (27th) March, 1898, the right of free trade granted to free ports on the following conditions:

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.

a Journal de St. Petersburg, August 5, 1899.

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.

PETERHOF, July 30, 1899.

NICOLAS

No. 54.

CHINA.

EXPLANATORY AND ADDITIONAL REGULATIONS FOR MINES AND

MINING.a

IMPERIAL RESCRIPT, JULY 30, 1899.

[Translation.]

Whereas a joint Memorial was presented on the 19th November, 1898, submitting Regulations for mines and railways; and it was explained therein that future action should depend on circumstances, and that where additions and alterations were found to be expedient, they should, after careful investigation into the requirements of the case, be embodied in further Memorials and put in force;

And whereas with regard to railway matters, a joint Memorial was presented on the 13th December, 1898, submitting a general scheme in which the various undertakings were distinguished in order according to their urgency;

And whereas both these Memorials were approved by the throne, and circulated for general guidance;

And whereas since the opening of mines was sanctioned, various explanations of and additions to the former Regulations have been found to be necessary in this department also:

Now, therefore, memorialists submit as follows:

When the State, which treats all men with equal kindness, allows mining operations to be undertaken by Joint-stock Companies composed of Chinese and foreign merchants, the intention is that such merchants should obtain a profit which is within the reach of all; it is not intended that they should be allowed to grasp the profit of a monopoly. Now, at present, when Chinese and foreigners apply for mining Concessions, as the Regulations allow the Companies to decide after survey in what places minerals exist, they invariably indicate only vaguely that such-and-such Prefectures, or such-and-such districts of a province, without indicating clearly certain places in certain districts ("hsien"), and specifying the number of miles included. The result is, that dishonest traders are allowed to conspire in bogus schemes and

a British Parliamentary Blue Book, China, No. 1 (1900), p. 324–326.

obtain a monopoly by unfair means, and that honest and bona fide gentry and merchants draw back and keep in retirement, having no motive to exert themselves. This result is totally at variance with the original intention of the Concessions, and it is imperatively necessary that definite limits should be laid down.

Setting aside, therefore, Concessions already sanctioned, which will continue to be treated according to Agreement, in future each applicant for permission to conduct mining operations must specify a certain place in a certain district, and will not be allowed to indicate several places at the same time, or to vaguely indicate a whole Prefecture or a whole district. Thus, monopoly will be checked, and profits made open to all.

Secondly, the former Regulations provide that, in order to preserve sovereign rights, the control of all joint Chinese and foreign Companies must rest with the Chinese merchants, and there is also a clause providing that when three-tenths of the capital has been provided by Chinese-owned shares, foreigners can then be invited to buy shares in the concern.

Although this provision was designed to develop and encourage enlightened progress, yet as the disproportion of three Chinese shares to seven foreign shares would tend to give the balance of power to outsiders, and gradually, as it were, to let the host be silenced by the clamour of the guests, it is necessary to rectify the original rule.

Setting aside, therefore, Concessions already sanctioned, in future no undertaking can be commenced unless the shares held by Chinese and foreigners respectively are each one-half of the whole, in order to avoid bias.

The management shall remain, as before, in Chinese hands, and no application on the part of. foreigners to conduct operations not under Chinese management shall be entertained.

Thirdly, the former Regulations provide that in the case of applications made by gentry or merchants in the provinces for permission to mine, the local authorities must see that such proposals are not contrary to the Regulations before submitting them to the decision of the General Board, and must not take upon themselves to grant the applications. Also that, in the case of applications made to the General Board direct, inquiries must first be made from the authorities of the province before the proposals are sanctioned, in order to prevent bogus schemes. The intention of the Regulations is that, when Chinese subjects undertake mining operations, they have to wait until inquiries are made and permission granted before inviting the co-operation of foreign shareholders, and that by this means only abuses can be prevented.

If, before application is made, or before permission is granted, a foreign partnership is entered into to exploit the mines of a certain

place, and afterwards, when inquiry is made, it is found that there are many objections in the way, and that it is impossible to carry out the undertaking, the merchants concerned only incur fruitless expenditure in surveying, &c., and not only is a want of consideration displayed, but bogus schemes and swindles are not got rid of. Here, too, the original rule requires explanation and addition.

In future, therefore, when Chinese merchants apply for mining Concessions, they must wait until it is ascertained that there are no objections in the way, and until permission has been granted, and then only are they at liberty to invite foreign shareholders and enter into Agreements. After this, again, their Agreements must be submitted for investigation and approval before operations can be commenced. If partnerships are first formed, and applications submitted afterwards, such applications shall all be refused.

Fourthly, the present Regulations provide that all enterprises must be commenced within six months from the date of sanction, under penalty of cancellation, but it is also provided that special cases are excepted from this rule. The result is that pretexts for delay are advanced so as to make a show of marking out claims without commencing genuine operations, and it is now necessary to define a strict limit of time.

From the date of sanction the total limit shall be ten months, and no matter whether there are any special reasons or not, if this period is exceeded without operations being begun, the sanction given shall be cancelled. The local authorities may then intrust the undertaking to other persons, and the original applicants cannot dispute their rights.

In other respects the former Regulations shall still hold good, and mines which have been already opened shall remain, subject to the old system, so as to avoid complications.

If these proposals are honoured by the Imperial sanction, memorialists will issue general instructions accordingly.

The instructions of their Imperial Majesties the Empress-Dowager and the Emperor are humbly requested on the above explanatory and additional Regulations for mining.

The above Memorial has been drafted by the General Board for Railways and Mines, and presented in conjunction with the Tsung-li Yamên.

Imperial Rescript, dated the 30th July, 1899: "Let it be as proposed."