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dealt with strictly in accordance with the Imperial Statutes of China; according to precedent the Imperial Government is not required to indemnify.

ART. IX. Should any Chinese apply for a railway concession and himself furnish the capital therefor, amounting to more than 500,000 taels, on the successful completion of the railway this Board will make a special petition in his behalf for an edict conferring extraordinary reward as an encouragement. Should he gather together Chinese shareholders and raise in this way capital to the amount of more than 500,000 taels, then on the completion of the work being reported this Board will take action in accordance with Article XII of the regulations as to reward submitted in a memorial by this Board and sanctioned by the Throne.

ART. X. When Chinese make application for a railway concession they must first estimate the entire amount of capital needed for the completion of the road so as to determine the number and amount of shares to be raised, and after the work has begun, if a greater sum has to be expended on account of the difficulties of the work, and the estimate made at the time of gathering shares does not meet the requirements, and the capital thus prove insufficient and there be no way to add further shares of capital, then the said company ought to be permitted to borrow foreign money by mortgaging machinery and buildings; in no case will it be permitted to mortgage lands. But the total amount of money thus borrowed may not in any case exceed three-tenths of the original estimate, and it will be necessary beforehand to send a petition to this Board stating clearly the real amount of money to be borrowed. The merchants concerned will borrow and repay; in no case will the Imperial Government assume any responsibility. Only after this Board shall have considered and approved the proposal will it be permitted to negotiate the loan. A copy of the contract for the loan must be filed with this Board.

ART. XI. If the shares of capital accumulated are all Chinese owned, and if, after the work on the road for which application was made has been all completed, the company shall apply for the construction of some other road in addition, and if the capital originally raised shall really have been already entirely exhausted, and they shall propose to borrow foreign money in addition to supplying the means for the extension of their enterprise, it will be necessary to prepare a petition and submit the same to this Board and await until it shall have considered the aspects of the case and either approved or disapproved.

ART. XII. Hereafter if any Chinese applying for a railway conces sion shall enter into a secret contract with foreigners to borrow foreign money-mortgaging the road applied for as security-and shall for the time obtain the concession under false representations, or if after

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the work shall have been commenced they shall clandestinely sell the concession to others, then as soon as this Board shall learn of these facts and investigate the affair, or if the local Viceroy or Governor shall discover the same, not only will the road (so far as constructed) be confiscated and the concession canceled, but it will be further necessary to investigate the circumstances of the case, and according to the gravity of the offense to decide upon some form of punishment. ART. XIII. All persons who may obtain a railway concession from this Board, no matter whether Chinese or foreigner, must within six months after the granting of the concession survey the road, and within six months after the completion of the survey must commence the work of construction. The gauge of the road must be exactly 4 feet 8 inches English measurement, the same as that of the roads now in operation; moreover, the date of commencing the work must be reported to this Board. If the limit of time shall be exceeded and no report be made, the concession shall be canceled, so as to prevent the occurence of such evils as the pretense of raising shares of capital and using this as a pretext for swindling operations. If there should really any extraordinary circumstances arise, report must first be made to this Board, which will make investigation and if it be found that there has really been no deception then the matter of extending the time may be taken into consideration.

ART. XIV. If at any place in any of the Provinces where railways are in construction landowners shall raise the price of land, thus hindering or causing trouble, or if workmen, depending upon numbers, shall constitute a boycott (i. e., probably in order to secure unreasonable wages), it will be permitted the company to make a clear report of the matter to the local authorities, who shall issue a strict proclamation, suppress the disturbance, and prohibit, under severe penalties, all extortionate practices of yamên underlings. It must be known that railways are the foundation of commercial prosperity and profitable transportation, as well as an important enterprise of the Imperial Government. If the said local officials prove unable to give protection and evade their responsibilities, on investigation, if the facts be as reported, they shall be impeached and dismissed.

ART. XV. At present such experts as are needed in surveying for railways, estimating their cost, and superintending the construction are few in China, and it becomes necessary to permit the companies to engage foreign officers, and the local authorities of the places through which they may pass or where they are temporarily residing must use extra care in giving them protection; they must not allow the least unforeseen danger to arise. If the said foreign officers are themselves unmindful of the proprieties and set social restraints at defiance, it is permitted the local authorities to notify the company so that they may be discharged. They must not be screened and pro

tected improperly by being transferred to some other road to be employed. If their faults be serious it is permitted to report them to this Board, which shall transmit the complaint to the various Consuls concerned. They shall not be allowed to travel or reside in China.

ART. XVI. No matter whether Chinese or foreigners may apply to Viceroys and Governors of Provinces for railway concessions, it will be necessary for the said Viceroys and Governors to make a careful investigation as to whether or not the proposed road will be really of advantage to Chinese commerce or transportation, and whether or not there may be any violation of these present regulations involved in the matter. As soon as they shall report, this Board will take the matter into consideration and deal with it.

ART. XVII. If a company shall get into a quarrel, or there arise any other difficulty affecting the interests of the company, if it be a Chinese one the nearest local official may try and decide the case fairly, thus preventing injustice to either party. If the judgment given does not satisfy, it will be permitted to appeal to this Board, which will consider the case and deal with it so as to give due protection. Should trouble arise between Chinese and foreign merchants, each of the two parties ought to nominate a man to discuss and decide it. If the two arbitrators can not agree in their opinions, they may together nominate a third just and upright man, no matter whether connected with the railway or an outsider, and these together may effect a settlement. The Governments of the two nationalities shall not concern themselves with the case.

ART. XVIII. Railways and mines are two separate concerns and each should be managed in accordance with its own regulations. Those who apply for railway concessions must not demand the right to work mines in connection with them. Formerly, railway companies had regulations for working mines along their lines. It will not be permitted hereafter to quote this as a precedent. If there be no place near from which to obtain a supply of coal, and this causes the company so much trouble that it seems likely to suffer loss, they ought, as occasion may require, to petition this Board, making a clear statement of the circumstances and await our investigation and approval or disapproval. If the application be disapproved, they may not thereafter present any further petition upon the subject. This is to prevent confusion.

ART. XIX. Formerly, the General Bureau of Mines and Railways decided upon a form for making reports. These forms will still be furnished by this Board to each company, which shall at the end of each year carefully fill in all the details required and present the same to this Board for its inspection and to be placed on file.

ART. XX. When application has been made for a railway concession and the same has been granted, the company may at once draw

up a contract. If there should be some items not fully settled, concerning which provisions ought to be made in the contract, it will be permitted to consider them and insert such provisions, but nothing must be inserted which will conflict with these regulations. When the contract is arranged a copy must be made and presented to this Board for its consideration and approval. Only after this is done may it be signed. After the work has been completed, should there be places where it is necessary to establish custom-houses, this Board will consult with the Board of Revenue as to their location and take appropriate action.

ART. XXI. Whenever Chinese or foreign merchants are operating railways, should military matters require the Chinese Imperial Government to transport troops, rations, pay, weapons, or any supplies necessary to the camp, they shall be given the right of way and transported at half rates.

ART. XXII. When a railway is under construction or after the railway shall have been completed, should it be necessary to employ police, it will be permitted to use one or two Chinese to each li of railway, but they will not be allowed to bear arms. If it should be necessary to use soldiers to guard the railway, a petition to that effect must first be presented and this Board will consult with the Tartar Generals, Viceroys, and Governors of the Provinces concerned as to sending such troops; the company must not act upon its own authority. Provisions and pay for such troops must be supplied by the railway. ART. XXIII. Railways and post-offices are of mutual assistance. All who operate railways ought to carry the mail bags of the Imperial Post-Office. The detailed regulations as to this matter will be drawn up at the proper time.

ART. XXIV. The foregoing articles are the regulations in general for the construction and operation of railways. Matters not definitely decided therein may be set forth in detail at the time when concessions are granted and contracts are drawn up.

No. 58.

BELGIUM.

CONTRACT FOR BUILDING A RAILWAY FROM KAI-FENG FU TO HO-NAN FU.

SIGNED AT SHANGHAI,

[Translation.]

1904.

BETWEEN THE UNDERSIGNED:

1o The Imperial Chinese Railway Company, represented by H. E. Sheng Kung Pao, Director General, duly authorized by the Chinese Government,

2o La Compagnie Générale de Chemins de Fer et de Tramways en Chine, represented by Monsieur Armand Rouffart, its delegated Administrator, provided with full powers,

IT HAS BEEN AGREED AS FOLLOWS:

ARTICLE I.

The Director General of the Imperial Chinese Railway Company H. E. Sheng Kung Pao has asked, in a report, the Chinese Government that a line of railway should be built starting from a point called Yung Tse on the Railway line of the Luhan where the latter crosses the River. From that point eastward to Kai-feng the line will be 170 li long and westward to Ho-nan Fu it will cover 250 li. These two branches of the Luhan to be built by a Belgian party (groupe) which will make a Loan to build them.

This proposal was accepted by a decree dated the 30th day of the 10th moon of 25th year of the present reign.

Monsieur Rouffart, the representative of La Compagnie Générale de Chemins de Fer et de Tramways en Chine, has asked us by letter, to undertake this building, and we sent a Chinese official to accompany him in his preliminary study on the ground. After said study, Monsieur Rouffart estimated the probable cost of these two branches at ONE MILLION Pounds Sterling or 25,000,000 francs; and for all other terms the contract from Peking to Hankow are to be followed.

Under date of the 29th day of the 12th moon of the 28th year of the present reign, the Wai-wu Pu wrote to me that I was to discuss the

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