If proof of the granting of this franchise is not forthcoming before the end of the month following the date on which the Belgian Government should inform the Compagnie Générale de Chemins de Fer et de Tramways en Chine that it has received notification concerning Article XXVIII, said Company reserves the right not to consider itself bound. It reserves the same right if extraordinary events should take place, such as a war, or if there were absolute impossibility to secure subscribers for the bonds.

Should on its side the Compagnie Générale de Chemins de Fer et de Tramways en Chine not fulfil within the given delays the obligations it has assumed by the present contract, it shall become annulled. The Imperial Chinese Railway Company would be at liberty to enter into contract with whomsoever it chose, and to give up the services of the chief engineer.

It is expressly agreed that the works and mines under the control of H. E. Sheng Kung-Pao shall have a preferential right for all orders necessary for the building and operating of the railway which is the object of the present contract. The word preference applies to equality of specifications and prices including transportation, as if the orders had to be filled abroad and delivered in China.

All orders made in China shall be free of duties and of likin on Chinese territory.

ARTICLE XXV.

In case of disagreement between the Compagnie Générale de Chemins de Fer et de Tramways en Chine or its delegates and the Imperial Chinese Government or the Imperial Chinese Railway Company, such conflicts or disagreements shall be settled by the decision of a member of the Ministry of Foreign Affairs and the Minister of Belgium in China. In case of non-agreement, the third arbitrator shall be the Dean of the Diplomatic Body at Peking.

ARTICLE XXVI.

Should the Minister of Belgium request the Chinese Minister of Foreign Affairs, the latter shall be bound to give cognizance of the title (notifier le titre) to the Minister of the foreign country mentioned to him as subscribing to the issue of bonds. The present contract is drawn up in triplicate, one copy for the Chinese Government, one for the Imperial Chinese Railway Company and the third for the Compagnie Générale de Chemins de Fer et de Tramways en Chine.

In case of doubt or disagreement, the French text alone shall be authoritative in interpreting the present contract.

The present contract shall be submitted through the proper channel for the Imperial Sanction, and when that shall have been obtained, the Minister of Foreign Affairs shall notify, by official despatch, the

Representative of Belgium at Peking, and in case of necessity, the Representative at Peking of the foreign country to whom the title shall be notified.

ARTICLE XXVIII.

The Compagnie Générale de Chemins de Fer et de Tramways en Chine has been organized at Brussels the 26th March, 1900, under Belgian law (régime belge) and with Belgian capital.

The Imperial Chinese Railway Company only recognizes for the purposes of the present contract the above mentioned contracting Belgian Company, which shall never have the right to transfer the present contract to other nations nor to persons of another nationality than Belgian.

ARTICLE XXIX.

The present contract includes the right to build little branch lines from the line from Kai-feng Fu to Ho-nan Fu for the purpose of securing traffic and establishing useful relations. These branch lines shall only be built after agreement with the Director General and the Governor of Ho-nan and in accordance with plans approved by them. Done at Shanghai,

27938-04-26

No. 59.

FRANCE.

MEMORANDUM ON RAILWAY AND MINING CONCESSIONS SECURED BY FRANCE AND FRENCH COMPANIES IN CHINA.@

[Translation.]

I. PROVINCES OF CHIH-LI, OF HU-PEH AND OF HO-NAN.

LINE FROM PEKING TO HANKOW.

The Société d'études de chemins de fer en Chine, a Franco-Belgian syndicate in which the French element is represented by the big financial establishments of Paris and the big metallurgical industries of France has received a concession for a railway from Peking to Hankow. The two contracts relating to this line, for a loan and for operating, are dated the 26 June 1898. The line will have an extension of about 1,250 kilometers. It is being built and will be operated by the Société d'études for the mutual profit and equal advantage of the French and Belgian parties.

The loan to be floated is 112,500,000 francs. It has been agreed that the French financial share shall be three fifths, that of Belgium two fifths. A first issue of 133,000 bonds of 500 francs 5% was made at Paris and Brussels on April 19, 1899. 226,800 bonds were subscribed for, 190,800 at Paris and 36,000 at Brussels. The product of this first issue will suffice to build 500 kilometers of which 300 in the north and 200 in the south, and which will be soon finished. 150 kilometers in the north are already being operated. The building of the remainder will be seen to by a second issue as soon as circumstances permit of it."

The Société d'études has secured the right to work mines along the line and to make, for the use of these, branch lines.

A branch company has been organized under the name of "Société franco-belge de recherches minières en Chine" to work these mines.

a French Yellow Book, Chine, Juin-Octobre 1900, pp. 23–27.
For contracts for this line, see supra, No. 34. pp. 225-245.

II. PROVINCE OF SHAN-HSI.

LINE FROM TAI-YUAN-FU TO CHENG-TING-FU.

The concession for this line was provided for by a contract between the Bureau of Commerce of the province of Shan-hsi and the RussoChinese Bank, said contract being approved by the Chinese Government May 21, 1898.

The length of the line is 246 kilometers from Tai-yuan-Fu to Chengting-Fu where it will join the railway from Peking to Hankow. The line will open the very rich coal field of Ping-ting, and its exploitation should be remunerative. The concession contemplates the extension of the Tai-yuan-Fu line to the southwest. The system as above will measure from 500 to 600 kilometers and will be worth about 60 millions. a

The French group in the Russo-Chinese Bank is entrusted with working this concession.

III. PROVINCES OF SHEN-HSI AND OF HO-NAN.

A Franco-Belgian syndicate secured, the 6 December, 1899, a concession for a line along the course of the Yellow river from Kai-feng-Fu, capital of Ho-nan-a future station on the Hankow-Peking line, to Ho-nan-Fu, with future extension toward Hsi-an-Fu, capital of Shen-hsi.'

IV. PROVINCE OF HU-PEH.

The "Syndicat d'études industrielles et de travaux publics en Chine," secured in the month of March 1896, a concession of the anthracite coal beds of Ainantzu, near Tsé-kiu.

V. PROVINCE OF KIANG-SU.

The same syndicate has secured, in the month of December 1898, the concession of the coal beds of Yuan-shan, near Nanking.

VI. PROVINCE OF CHE-KIANG.

A local railway from Husé to Kiang-nan, near Hang-chou, at the southern end of the Grand Canal has also been conceded in the month of February 1898, to the "Syndicat d'études industrielles et de travaux publics en Chine."

VII. PROVINCE OF SSU-CH'UAN.

COAL AND IRON MINES.

Following the researches of the Lyons mission to China, some capitalists and manufacturers had founded in 1897, under the name of

a For agreement concerning this line, see supra, No. 41, pp. 309–316.
For contract, see supra, No. 58, pp. 389-401.

"Syndicat franco-chinois de Tchung-King" a company for working the mineral wealth of Ssu-ch'uan. This company sent to Chung-king as its representative, M. Duclos, engineer, a former member of the Lyons mission, who in 1899 made a contract with the provincial Administration ceding to the syndicate the working of mines of coal and iron in different localities in the province. A capital of 10 million taels is provided for the working of these concessions, with faculty of raising it by installments.

PETROLEUM DEPOSITS.

The Bureau of the province of Ssŭ-ch'uan has given to a french company, the "Société française d'explorations minières en Chine," the right to prospect in this province for petroleum deposits which are believed to be very rich. This concession will necessitate a final exploitation contract for which purpose a French company will be organized.

ORE DEPOSITS.

The French consulate at Chung-king secured in the month of July 1899, from the Mining Bureau of Ssu-ch'uan, the signing of a contract under which it cedes to a company to be formed with French and Chinese capital the working of ore mines (gold, silver, copper, lead and iron) in the Tien-shan and Ma-kung districts.

VIII. PROVINCE OF KUEI-CHOU.

QUICKSILVER MINES.

By two contracts of March 17 and June 26, 1898, the Chinese Government has granted the "Société française d'explorations minières en Chine" the concession for working the quicksilver, coal and iron mines of the province of Kuei-chou and the works and blast furnaces of Tsing-ki. This Company has ceded its rights to the "Compagnie anglo-française des mercures et concessions minières du KoueiTcheou" organized with a capital of 7,750,000 francs.

Three-fifths approximately of the bonds which were issued in March 1899, are held by French.

The enterprise is running at present.

IX. PROVINCE OF YÜN-NAN.

RAILWAY FROM LAOKAY TO YÜN-NAN HSIEN.

By a convention of the 9-10 April, 1898, the French Government secured for itself or for the Company chosen by it, the right to build a railway from Laokay (frontier of Tongking), to Yün-nan Hsien (450 kilometers), and a law of December 25, 1898, authorized the Government of Indo-China to grant a guarantee of interest to the Company which might become the grantees of this line.