TEMPORARY MINING REGULATIONS IN CHINA
403
the permit to another, he must first apply for the sanction of the Board. If it should come to the knowledge of the Board that the permit has been clandestinely_trans- ferred, the permit will be cancelled and the person to whom it was issued by the Board will be severely punished and the property confiscated.
XV.-Any person having a permit to work a mine will be allowed to dig for ore at the place mentioned in the permit, and also to transport the necessary plant for the working of mines to the localties where it is required. After paying the Customs duty, such materials will be exempted from all further inland taxation. But if goods not required in the mining operations are smuggled into the country with such min- ing plant the persons responsible will be punished according to the regulations.
XVI.-When capital is raised for the working of a mine care should be taken that Chinese own the majority of the shares; but should the Chinese capital subscrib- ed be insufficient (to procure a majority of the shares), the shares taken up by foreigners must not exceed the number held by Chinese. In the application presented to the Board the number of foreign shares must be clearly and unequivocally stated, and it will not be permissible to obtain a foreign loan after the aforesaid proportion of foreign capital has been subscribed. Should a permit to work the mine be obtained by misrepresentation, it will be cancelled and the property confiscated on discovery of the fraud.
XVII. In applying for a permit to work a mine, a rough estimate should be furnished of the numbers to be employed, and the working expenses. If upon examina- tion the mine appears to promise good results, the share capital should be subscribed, and only when the full amount of the capital required has been raised will a permit to work a mine be issued. If after the work has been commenced it is proved to be more difficult, and the working expenses greater than had been estimated; and if the capital consequently prove insufficient and it is difficult to raise additional share capital, permission will be given, if the capital already employed is owned exclusively by Chinese, to raise a foreign loan on the security of the plant and buildings for a term of years. Land Dust not be mortgaged, and the loan should not exceed thirty per cent. of the capital originally subscribed. Application for permission to raise a loan must be made to the Board, and the applicants must clearly state the number of years for which the loan is needed, and the nationality of the person or persons from whom it is proposed to obtain the loan. It should be clearly expressed that the loan is borrowed by merchants, and is repayable by merchants, and that the Imperial Government assumes no responsibility in connection therewith. The Board will then consider and determine the application. When a contract is made a copy thereof must be deposited with the Board, and there must be no alteration of any of the stipulations without the Board's cousent.
XVIII.-Should Chinese merchants, who have obtained a permit to work a mine, contract with foreigners, without previously notifying the Board, to mortgage the mine as security for a foreign loan, or if after the work has commenced they sell the mine to persons of another nationality and simply receive payment for the use of their name, they shall on discovery of these unlawful practices be punished under Article XIV of these Regulations according to the gravity of the offence.
XIX. If Chinese applicants for a permit have foreigners associated with them in the enterprise, no matter whether the permit required is for prospecting or work- ing a mine, they must obtain the sanction of the Board as well as that of the Board of Foreign Affairs. Foreigners who are willing to take shares must recognise and strictly conform to these regulations.
XX-If a Chinese company, which is successfully carrying on mining operations for which a permit has been granted, desires to work further mines in the neighbour- hood, and the original capital of the company being insufficient, desires to obtain more foreign share capital, it must apply to the Board for sanction, furnishing & careful and detailed statement of the proposals for the Board's consideration. A separate permit will be issued if the proposals are sanctioned by the Board, and the undertaking must be regarded as a separate and distinct concern.
Original from
UNIVERSITY OF MICHIGAN