No. 71.

UNITED STATES.

DECREE AND AGREEMENT FOR WORKING THE UHNSAN GOLD MINES.

JULY 2, 1895.

Whereas His Majesty the King of Chosen (Korea) is desirous of having the mines belonging to the Royal Household developed according to modern methods: Now for that purpose He decrees and agrees:

1st. That He, through His Department of the Household, associates with himself, James R. Morse, an American citizen, and his assigns, as a company for the prosecution of this mining work, said association to be known as the Korean Development Company.

2nd. Said Company shall have as a first privilege the right for twenty-five years from the date of this decree, to develop and operate a gold mine or mines in the district of Uhnsan, Province of (here appear the Chinese names of Uhnsan) Peng Yang, Kingdom of Chosen. 3rd. This mine or these mines shall be selected by competent engineers sent for the purpose by said James R. Morse, or his assigns. 4th. The said mining rights shall include all territory within the limits of said district of Uhnsan.

5th. Within said limits said Company shall have the right to sink shafts and tunnels, to erect engines and machinery, and conduct all operations necessarily connected with the aforesaid mining operations. 6th. Said right shall include the right to mine other minerals found within these limits.

7th. His Majesty the King of Chosen, through His Government, agrees to render said Company all possible assistance in dealing with the native people and in affording rights of way for transportation

purposes.

8th. Foreigners shall be allowed to be employed for work in these mines and their properties, and they will be furnished passports and protection. Natives will be employed to as great an extent as is practicable, and they will be given all due facilities by said Company for acquiring a knowledge of mining according to modern methods.

9th. Said Company shall have a capital stock of one hundred thousand dollars gold ($100,000), to be divided into one hundred (100) shares of one thousand dollars gold ($1000) each. Said capital stock may be increased upon a majority vote of the share-holders in said company.

10th. Said James R. Morse, or his assigns, shall secure the capital for the development and operation of this mine or these mines.

11th. Said James R. Morse or his assigns shall present to the Department of the Royal Household for His Majesty the King of Chosen, twenty-five (25) paid-up shares in said Company.

12th. The profits arising from the working of said mines shall be first applied to the payment of money advanced for machinery and other expenses in the development and operation of said mine or mines, and after the same is paid the balance shall be allotted as dividends to each share equally.

13th. No taxes shall be levied upon these mines or their properties. 14th. All materials necessarily imported from foreign countries for the use of said mine or mines may be imported free of duty.

15th. Said Company shall hold at least one yearly meeting (each year) of the share-holders, at which meeting each share shall be entitled to one vote, a majority of votes being necessary for a decision. At said meeting the books of said company shall be open for inspection. Any changes in the management of said company may be made upon a majority vote of the share-holders.

16th. Said James R. Morse shall be the manager of said Company until such time as the majority of the share-holders shall see fit to make a change in the management, said manager shall have power to buy all supplies, appoint assistants, employ workmen, and to attend to all the business and operations of said Company.

17th. His Majesty, the King of Chosen, may have an officer stationed at said mine or mines, to look after His interests and to represent Him. Said officer may inspect the books of the Company from time to time.

18th. Said company shall agree not to open or remove any existing graves near said mine or mines without consent.

19th. This decree and agreement shall become inoperative unless mining operations are actually begun before the expiration of one year from the date hereof, providing always that such delay is not caused by war or similar cause over which said company can have no control, in which case an extension of the limiting period may be mutually agreed upon between His Majesty the King of Chosen, and said James R. Morse or his assigns.

20th. A translation in Chinese shall be attached to this decree or agreement. But in all cases of dispute it is understood that this copy in English shall be regarded as the authorized version. A duplicate of which shall be signed by said James R. Morse, or his assigns, and delivered to the Department of the Royal Household for His Majesty the King of Chosen.

Seoul, Korea, July 2, 1895. (Signed in English.)

KIM CHONG HAN (SU),

Acting President of Household Department.

No. 72.

GREAT BRITAIN.

MINING CONTRACT BETWEEN THE IMPERIAL KOREAN GOVERNMENT AND MESSRS. JAMES VICTOR BURN-MURDOCH AND JOHN ALEXANDER HAY.

SEPTEMBER 27, 1898.

I. Messrs. J. Victor Burn-Murdoch and John A. Hay or their assigns may engage a mining engineer and select a mining place within the term of two years from the date of this contract, which place they can work under the conditions as set forth hereafter; such a place to be 60 Korean li long and 40 Korean li wide.

II. In the place thus selected Messrs. J. Victor Burn-Murdoch and John A. Hay or their assigns may work all mines, gold, silver, copper, coal, and all other minerals or precious stones, and full power is hereby granted to Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns to manage all such mines themselves, and no concession will be granted to any other person or persons for the place after it is selected by Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, during the term of this contract.

III. Work shall commence within two years from the date of the signature of this contract. If within this period work has not begun, then this contract will become null and void, but in case of any force majeure this contract will be extended for a period equal to the time during which the force majeure existed. Messrs. J. Victor BurnMurdoch and John A. Hay, or their assigns, will inform the Imperial Korean Government through H. B. M. Chargé d'Affaires one month before actual work commences.

IV. This concession is given for the term of seventy-five years from the day work has commenced.

V. During the time a place is being selected by Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, the Korean Government may grant concessions to other foreigners. Permission to work a mine cannot be granted to Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, in the following districts:-Yunghung, Kilchu, Tanchön, Pingyang, Chairiong, Suan and Hamhung, which places have been applied for and refused before this contract was signed, and no work must be done near Imperial tombs and temples and near large towns.

VI. The necessary capital and machinery, tools and instruments, shall be provided and bought by the said J. Victor Burn-Murdoch and John A. Hay, or their assigns, but in case of tools or materials to be used for the mines preference shall be given to Korean manufacture if of equally good quality and of the same price. The Imperial Korean Government shall not be responsible for any debts of the mines or for any debts in connection with this undertaking.

VII. Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, may erect godowns, houses, or any other buildings in connection with this undertaking within the limits stated in Article 1, and they may build roads if they consider them necessary, but shall pay for all land taken by such roads and all damages created thereby.

VIII. All establishments and branches, the roads, lands, and the buildings of the mining works are by this concession wholly exempted from every kind of taxes and imposts in Korea; all material necessary for the working of the mines will enter Korea duty free, and all products from the mines will leave Korea duty free.

IX. In case of any private lands, fields, houses, etc., being required by Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, in connection with the mining work, such private lands, fields, houses, etc., shall be purchased by the said J. Victor BurnMurdoch and John A. Hay or their assigns at reasonable prices at their expense, and any damages must also be paid by the said J. Victor Burn-Murdoch and John A. Hay, or their assigns. Tombs must not be interfered with.

X. Of the net profits which will remain after deducting all expenses, Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, engage to pay a royalty of 25% (twenty-five per cent) to the Imperial Korean Government, such payment to be made half-yearly, that is to say, on the 30th of June and 31st of December of each year. The cost of the machinery in the mines shall not be regarded as "expenses' and shall not be deducted from the profits.

XI. The Imperial Korean Government shall send an official and establish an office at the place selected; this official shall have the right to see the accounts, to watch the sale of any products from the mines and to look after the interest of the Imperial Korean Government, but in no way shall he have the right to interfere with the working of the mines or the sale of any products from the mines.

XII. Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, bind themselves to engage Korean coolies and workmen in proportion of 90 in 100, but should these Koreans not be suitable for the working, then Messrs. J. Victor Burn-Murdoch and John A. Hay, or their assigns, are at liberty to engage foreign workmen.

XIII. The Imperial Korean Government will give all facilities for this undertaking, will give full protection to all foreigners employed at the mines, and will grant passports to them.

XIV. After the work is commenced, as here agreed upon, it shall be prosecuted and continued in good faith and with all due diligence, and if the said J. Victor Burn-Murdoch and John A. Hay, or their assigns, fail so to do for a period of six months, then the said mine and all property except machinery thereon, and all rights under this contract shall be forfeited to the Korean Government.

Provided, however, if the said J. Victor Burn-Murdoch and John A. Hay, or their assigns, be prevented from working the mines by force majeure then the time they are so prevented shall not be counted in the above period.

XV. In the event of it being found desirable to make any modifications in the articles of the present contract or in other matters connected therewith affecting the interests of Koreans and Messrs. J. Victor Burn-Murdoch and John A. Hay or their assigns, such modifications may be introduced by mutual consent of the Korean Government and the British Representative in Seoul with the view of consultng the convenience of both parties.

XVI. In the event of any difference of opinion as to the interpreta tion of this contract, the English text shall be regarded as authoritative, but a Korean translation will be attached hereto.

Signed at Seoul this twenty-seventh day of September, 1898.

J. V. BURN-MURDOCH,

JOHN A. HAY,

Per his Attorney

J. V. BURN-MURDOCH.

Signed before me

J. N. JORDAN,

H. B. M.'s Chargé d'Affaires and Consul General.

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