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No. 56.

CHINA.

RULES AND REGULATIONS FOR MINING ISSUED BY THE CHINESE GOVERNMENT.

APRIL, 1902.

[Translation.]

(1) All persons intending to engage in mining, whether with native shareholders or by borrowing foreign capital, must first of all clearly petition the Foreign Office and present the petition in person, or request the viceroy or governor of their respective provinces to forward their application to this board, and await an official reply. Whenever permission to mine is given, a certificate will be granted, without which no mining operations can be undertaken.

(2) When such applications are approved by the Foreign Office, that office will refer the application to the bureau of mines and railways for approval. On receiving from the head office a reply in the affirmative, the Foreign Office will advise the bureau of mines and railways to issue a permit, after receipt of which mining operations may be commenced. Fees for such permits will be charged at the rate of 1 per cent on the capital, which must be paid to that bureau for office expenses.

(3) The applicant who originally applies for a permit for mining must himself carry on the matter; he can not sell it to someone else. [It is not transferable.] In case he desires to sell out before or after he has begun operation, the original applicant must, with the transferee, apply again to the Foreign Office, according to articles 1 and 2, and put the matter on record. When this has been complied with,

then the transfer can be made.

(4) If the owner of the land can not come to terms with the mining parties, the original petitioner should first parley with him, agree on a price, and have it recorded. It should not be a private (or secret) transaction. If, for Government reasons, the land should be mined. and the owner of the land is obstreperous, he should be made to yield to the wishes of the Government. In such a case, the officials shall pay the owner a reasonable price, so that mining can be begun at will. (5) Applicants for concessions may be Chinese or foreigners, or Chinese and foreigners in partnership; it makes no difference. But the land being Chinese soil, and permission to mine being granted by

the Chinese Government, it behooves all who undertake mining operations to respect and abide by the rules and regulations of this Government. If trouble of any kind arises, the Chinese Government can use its sovereignty to make a settlement.

(6) According to the valuation of the vein opened a tax must be paid, as follows:

On 100 taels' ($68) worth of coal, iron, antimony, alum, borax, etc., 5 taels ($3.40), or 5 per cent.

On kerosene, copper, lead, tin, sulphur, cinnabar, etc., 10 per cent. On gold, silver, spelter, quicksilver, etc., 15 per cent.

On diamonds, crystals, etc., 25 per cent.

Ores which are not included in the above list shall pay a tax according to the nearest mineral mentioned.

There is still to be an export duty at the treaty ports, but no likin. The above amount is to form a distinct revenue, for which the customs are to open a separate account.

(7) Every company receiving a permit must begin work within twelve months. After that limit the permit will be canceled and a new concession given.. The fact will be advertised in all the native and foreign papers.

(8) A railway for transport may be built from the mine to the nearest port or to the nearest trunk line.

(9) A mining school shall be started near to the mine, the expense to be borne by the company.

(10) All materials and mining machinery from abroad shall pay an import duty only at the port; there shall be no likin. Whatever material is procured inland shall be given a free transit pass, if it is found to be really for use at the mines. But smuggling of any kind will be heavily fined.

(11) The company must report to the Foreign Office when mining engineers are engaged, so that word can be sent to the viceroys and governors to instruct the local authorities to give them adequate protection. In case of trouble the local authorities will be held responsible. In disturbances caused through the purchase of land, opening a mine, or by the workmen, the local officials must issue a proclamation and restore order. If any malpractice is discovered they will surely be impeached and no leniency will be shown.

(12) Mining land belonging to the people may be purchased at the market value, but Government land must be leased. The new owner shall pay a land tax, as is customary. Only land needed for sinking shafts or other mining purposes shall be occupied.

(13) In buying land the company must pay a fair price, and not appropriate the land by force; nor must the owners raise their price to excess. Putting obstructions in the way on account of "feng-shui," etc., will not be allowed. In case the owner prefers to take shares rather than money for his land, this may be done.

(14) Houses and graves are to be avoided. But if the land to be mined has houses or graves on it, the original owner should be well compensated and a removal effected.

(15) There should be Chinese police to guard the mines, the expenses to be met by the company. Foreigners should have charge of the machinery and accounts, but all other employees should, as far as possible, be Chinese, and should be well paid. In case of accident to the workmen in the mines, their familes should be compensated.

(16) Chinese who have studied mining abroad, or who are merchants abroad and wish to invest in mines in China, may report to the Foreign Office. Students who are successful in prospecting will be recommended for imperial honors.

(17) Those investing money in mining will be protected, but the Government will not be responsible for losses, nor for money borrowed from foreigners. Let the merchant borrow from some other merchant to repay the foreigners. It is no concern of the Government.

(18) Accounts must be made up each year, and of the net gain 25 per cent shall be paid as royalty to the Chinese Government.

(19) All companies having already received concessions or begun work may follow their regulations, except in article 6 of the present rules. New companies must adhere to these rules.

No. 57.

CHINA.

REVISED REGULATIONS FOR RAILWAY CONSTRUCTION IN CHINA.

DECEMBER, 1903.

[Translation.]

ARTICLE I. This Board having, in obedience to an imperial edict, taken over the direction of railway and mining affairs, which is a matter of record, besides issuing special mining regulations, hereby give notice that all records, concerned with railway concessions already made, have been transferred to this Board by the General Bureau of Railways and Mines, and all applicants for railway concessions, not yet granted, are required to await the approval or disapproval of this Board.

ART. II. No matter whether Chinese or foreigner, official or merchant, all applicants for railway concessions must proceed in accordance with the regulations proposed by this Board and sanctioned by the Throne. No appeal will be allowed to regulations heretofore adopted by various provincial authorities and which are not in harmony with the present regulations. Moreover, after the concession shall have been approved by this Board there must be a careful observance of the company laws, submitted in a memorial by this Board and sanctioned by the Throne; there must be no disobedience.

ART. III. When the officials or merchants of any Province shall have accumulated capital stock and asked for a concession for either a main line or a branch line of railway in any Province, they must prepare a map in explanation and state clearly the real amount of their capital, giving the exact details, both being submitted with their petition. They shall then wait until this Board shall have communicated with the local official of the district to which they belong, who shall carefully investigate the circumstances of the applicants, whether or not they are reliable persons and whether or not they are men of property, as well as whether or not they are violating these regulations. When a reply shall have been received this Board shall then determine whether to approve or disapprove the application.

ART. IV. When a line of any railway shall have been surveyed and agreed upon, the local officials must first notify the people, so as to

prevent any intentional obstruction. As to the purchase of the ground by the company, the local officials must fix a fair price; they must not allow any raising of the price. As to the taxes due, the company must agree to pay them from year to year; no neglect shall be allowed. Whenever any cottages or graves are found in the line of the railway, if they can be avoided by a curve, steps must be taken to do so, in order to satisfy popular sentiment. If it shall be very difficult for the railway to go around them, the local officials shall decide what payment shall be made for them, so as to prevent contention and obstruction.

ART. V. When Chinese merchants apply for a railway concession, if there be any foreign shareholder, application must not only be made to this Board, but to the Board of Foreign Affairs as well, that said Board may investigate and consider the matter. If foreign merchants shall apply for a concession in their own names, they must not only file a petition with the Board of Foreign Affairs and await its reply, but also petition this Board that we may investigate and give a decision.

No matter whether the foreign merchants desire to undertake the work themselves or simply to supplement the capital stock (of a Chinese company), they must agree to uniformly observe these regulations now issued; there must be no infraction of them.

ART. VI. In accumulating capital it is important, as a rule, that the Chinese owned [shares] should be in the majority. If there be no alternative but to supplement with foreign capital, then the amount of the foreign-owned shares should not, at most, be more than equal to the amount of the Chinese-owned shares.

When the petition is presented the exact amount of the foreignowned shares must be stated; there must be no concealment or deception. It will not be permitted at all to borrow foreign capital in addition to that obtained by foreign-owned supplementary shares. This prohibition is to prevent deception and insure sincerity. Should there be any deception practiced in securing a concession, immediately upon the discovery of the facts the concession will be canceled.

ART. VII. Even if foreigners apply for railway concessions in any of the Provinces and they are granted, it is no more than just that Chinese merchants themselves should obtain reasonable advantage therefrom; hereafter, therefore, whenever foreigners make application for a concession, no matter what may be the amount of the capital stock, they must reserve 36 per cent of the shares and allow Chinese opportunity to purchase these shares at the original price.

ART. VIII. No matter whether it be a Chinese company aided by foreign capital or a foreign company aided by Chinese capital, in every case the local authorities must give equal protection. But they must not interfere with the authority of the company to manage its own affairs. Should the company meet with losses the matter must be

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