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-36

ITON D c

No. 8.
GERMANY.

CONVENTION BETWEEN THE GERMAN EMPIRE AND CHINA
RESPECTING THE LEASE OF KIAO-CHAU.a

SIGNED AT PEKING, MARCH 6, 1898.

[Translation.]

The incidents connected with the Mission in the Prefecture of Tsaochau-foo, in Shantung, being now closed, the Imperial Chinese Government consider it advisable to give a special proof of their grateful appreciation of the friendship shown to them by Germany. The Imperial German and the Imperial Chinese Governments, therefore, inspired by the equal and mutual wish to strengthen the bonds of friendship which unite the two countries, and to develop the economic and commercial relations between the subjects of the two States, have concluded the following separate Convention:

German troops.

ARTICLE I.

His Majesty the Emperor of China, guided by the intention to strengthen the friendly relations between China and Rights ceded to Germany, and at the same time to increase the military readiness of the Chinese Empire, engages, while reserving to himself all rights of sovereignty in a zone of 50 kilom. (100 Chinese li) surrounding the Bay of Kiao-chau at high-water, to permit the free passage of German troops within this zone at any time, as also to abstain from taking any measures, or issuing any Ordinances therein, without the previous consent of the German Government, and especially to place no obstacle in the way of any regulation of the water-courses which may prove to be necessary. His Majesty the Emperor of China, at the same time, reserves to himRights reserved. self the right to station troops within that zone, in agreement with the German Government, and to take other military

measures.

a Das Staatsarchiv, vol. 61, No. 11518. Kiao-chau was declared a free port on September 2, 1898. See Reichsanzeiger, September 5, 1898.

ARTICLE II.

With the intention of meeting the legitimate desire of His Majesty the German Emperor, that Germany, like other PowTerritory leased. ers, should hold a place on the Chinese coast for the repair and equipment of her ships, for the storage of materials and provisions for the same, and for other arrangements connected therewith, His Majesty the Emperor of China cedes to Germany on lease, provisionally for ninety-nine years, both sides of the entrance to the Bay of Kiao-chau. Germany engages to construct, at a suitable moment, on the territory thus ceded, fortifications for the protection of the buildings to be constructed there and of the entrance to the harbour.

Limits of terri

ARTICLE III.

In order to avoid the possibility of conflicts, the Imperial Chinese Government will abstain from exercising rights of sovereignty in the ceded territory during the term of the lease, and leaves the exercise of the same to Germany within the following limits:

tory leased.

(1.) On the northern side of the entrance to the bay:

The peninsula bounded to the north-east by a line drawn from the north-eastern corner of Potato Island to Loshan Harbour.

(2.) On the southern side of the entrance to the bay:

The peninsula bounded to the south-west by a line drawn from the south-westernmost point of the bay lying to the south-south-west of Chiposan Island in the direction of Tolosan Island.

(3.) The Island of Chiposan and Potato Island.

(4.) The whole water area of the bay up to the highest water-mark at present known.

(5.) All islands lying seaward from Kiao-chau Bay, which may be of importance for its defence, such as Tolosan, Chalienchow, &c. The High Contracting Parties reserve to themselves to delimitate more accurately, in accordance with local traditions, the boundaries of the territory leased to Germany and of the 50-kilom. zone round the bay, by means of Commissioners to be appointed on both sides.

Delimitation.

Rights of Chinese ships in Kiaochau Bay.

Chinese ships of war and merchant-vessels shall enjoy the same privileges in the Bay of Kiao-chau as the ships of other nations on friendly terms with Germany; and the entrance, departure, and sojourn of Chinese ships in the bay shall not be subject to any restrictions other than those which the Imperial German Government, in virtue of the rights of sovereignty over the whole of the water area of the bay transferred to Germany, may at any time find it necessary to impose with regard to the ships of other nations.

Navigation sig

nals.

ARTICLE IV.

Germany engages to construct the necessary navigation signals on the islands and shallows at the

entrance of the bay.

No dues shall be demanded from Chinese ships of war and merchantvessels in the Bay of Kiao-chau, except those which may be levied upon other vessels for the purpose of maintaining the necessary harbour arrangements and quays.

Port dues.

ARTICLE V.

Should Germany at some future time express the wish to return Kiao-chau Bay to China before the expiration of the Return of leased lease, China engages to refund to Germany the expenditure she has incurred at Kiao-chau, and to cede to Germany a more suitable place.

territory.

Germany engages at no time to sublet the territory leased from China to another Power.

The Chinese population dwelling in the ceded territory shall at all times enjoy the protection of the German Government, Chinese in leased provided that they behave in conformity with law and order; unless their land is required for other purposes

territory.

they may remain there.

If land belonging to Chinese owners is required for any other purpose, the owner will receive compensation therefor.

As regards the re-establishment of Chinese customs stations which formerly existed outside the ceded territory, but within Customs stations. the 50-kilom. zone, the Imperial German Government intends to come to an agreement with the Chinese Government for the definitive regulation of the customs frontier, and the mode of collecting customs duties, in a manner which will safeguard all the interests of China, and proposes to enter into further negotiations on the subject.

SECTIONS II AND III."

I. The Chinese Government sanctions the construction by Germany of two lines of railway in Shantung. The first will run from Kiao-chau and Tsinan-fu to the boundary of Shantung province via Wei-hsien, Tsinchow, Pashan,

Railways in Shantung.

a The following sections of the German-Chinese Agreement of March 6, 1898, have never been made public by the German Government, but have been privately communicated to persons interested in the development of the Protectorate. See Proceedings before the Budget Commission of the Reichstag, April 29, 1898 in Brit. Blue Book, China No. 1 (1899), p. 67. See also for Précis of these Sections of the Agreement Brit. Blue Book, China 1 (1899), p. 152. The text as given here of these sections of the Agreement is based on unofficial publications, but is, it is believed, substantially correct.

Tsechuen and Suiping. The second line will connect Kiao-chau with Chinchow, whence an extension will be constructed to Tsinan through Laiwu-hsien. The construction of this extension shall not be begun until the first part of the line, the main line, is completed, in order to give the Chinese an opportunity of connecting this line in the most advantageous manner with their own railway system. What places the line from Tsinan-fu to the provincial boundary shall take in en route is to be determined hereafter.

II. In order to carry out the above mentioned railway work a ChinoGerman Company shall be formed, with branches at Railway company to be organ- whatever places may be necessary, and in this Company both German and Chinese subjects shall be at liberty to invest money if they so choose, and appoint directors for the management of the undertaking.

ized.

ing out works.

III. All arrangements in connection with the works specified shall be determined by a future conference of German and Mode of carry- Chinese representatives. The Chinese Government shall afford every facility and protection and extend every welcome to representatives of the German Railway Company operating in Chinese territory.

Division of

intentions.

Profits derived from the working of these railways shall be justly divided pro rata between the shareholders without profits. German regard to nationality. The object of constructing these lines is solely the development of commerce. In inaugurating a railway system in Shantung Germany entertains no treacherous intention towards China, and undertakes not to unlawfully seize any land in the province.

Mines and min

ing.

IV. The Chinese Government will allow German subjects to hold and develop mining property for a distance of 30 li from each side of these railways and along the whole extent of the lines. The following places where mining operations may be carried on are particularly specified along the northern railway from Kiao-chau to Tsinan, Wei-hsien, Pa-shan-hsien and various other points; and along the Southern Kiao-chau-Tsinan Chinchow line, Chinchow-fu, Laiwu-hsien, etc.

Chinese capital may be invested in these operations and arrangements for carrying on the work shall hereafter be Chinese investors. made by a joint conference of Chinese and German representatives.

All German subjects engaged in such works in Chinese territory shall be properly protected and welcomed by the ChiProtection to nese authorities and all profits derived shall be fairly divided between Chinese and German shareholders according to the extent of the interest they hold in the undertakings.

miners.

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