520

is hoped, however, that the demarcation will pro ceed smoothly with Liu's assistance. The line laid down in the Agreement of 1896 is far from per- foot indeed it is now admitted Article 1 I ought to be radically altered, but, of course, if Liu and bis resistants do not appear there can buino question of mutual concessions, and our offlders will be compelled to adhere rigidly to the Agreement line, defective though it be. Meanwhile it is not a favourable sigu of the attitude of the Chinese to find posts established by them beyond Lwelaing in what is undoubtedly Britkl territory, and one of the first pieces of work of the Commission will be to remove these over the frontier. — Rangoon Gazette.

MANUFACTURE OF ARMS AND AMMUNITION IN CHINA,

It may not perhaps be known that there are now, or in process of erection, no less than seven factories for the making of smokeless powder in- this country, vis: Wachang. Nanking, Shanghai, Soochow Hangebow. Canton. and Foochów. It is officially estimated that by the summer of 1899 these factories will be able to turn out about 50,00 catties of smokeless pow- der per month, and that at the present date of writing the government has ready for imme- diate use over two million smokeless powder cartridges, one half of which were imported from Europe.

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Owing to a recent edict of the Empress Do- wager commanding the high provincial authori- ties at Wuchang, Nanking, 'l'ientsin, and Soo- chow, to commence with all haste the manufac- ture of quick-firing field gunds, machine guns, small-bore Mauser rifles, large orders will soon be given to foreign arms inerchants for the necessary machinery. Although the arsen- alg at Tibatsin, Wachang, Nacking, and Shanghai possess appliances for the manufacture of the above arms, they will have to make large additions to their works in order to supply to demand which the Empress Dowager at the instance of Jung La has made on them, the funds for which are to be provided by special anthority by the Provincial Treasurers con- cerbed. —N. C. Daily News.

HIFE RUSSI IN POSTTI ¿NAN MA CHURIA.

A correspondent to the Kuo-wen-pao state that the total number of Russians in North China is not less than 25,000, but this is no doubt an immense exaggeration. As our native contemporary very truly points out, however, it is difficult to form any correct extimate of their numbers as they are scattered in small detach- ment over ench a large area. Ibus 5,000 artillery are 'stated to be at Vladivostock; battalion at Hulan, to the east of Moukden; 1 battalion at Sansin; 2 battalious near the Sangari River and so on. All the roads from Mokkien to Peking are said to be strongly guarded by Cossacks, aud all the troops in Manchuria are equipped and provisioned for a long march, in a southerly direction. Where no roads: or only bad roaus exist, they are being created, repaired or widened as the case demands. It has been contended that this question of roads is one of the arguments against any Russiab approach on Peking, bút if Russia does begin to murch'she will not, we may be sure, set out on a journey through the road-less wastes of Sibe- ria, and there are good enough roads for her purpose if she keeps in Chinese territory. The question of provisions has also been brought forward, but that, too, is settled if she follows the old highway. The Chinese villages are hardly likely to turn deaf ears to the seductive chink of

THE HONGKONG WEEKLY PRESS AND

A KOREAN CONCESSION.

We (N. C. Daily News) are permitted to bring to the notice of our readers to-day the text in full of the concession that was granted by the Korean Government on the 27th of September last, as was announced by us at the time, to Messrs. J. Victor Burn-Murdoch and John A. Hay, the agents of Mr. Pritchard Morgan, M.P., and Mr. C. A. Moreing, of London. This concession entitles the contrac tors to locale an area of sixty Korean li in length and forty Korean li in breadth, about two hundred and sixty square miles, and to work within this area for a period of seventy- five years all mines of gold, silver, copper; coal, and all other minerals or precious stones, with power to manage all such mines themselves, and provision that no one else cau locate mines within the area selected by them. The terms of the con- tract should be an object lesson to the Chinese, whose habit it is to overload any concession which they may negotiate with provisions that make it almost impracticable. In the Korean case all buildings and works necessary for the operations of the construction are to be exempt. from taxes and imposta of all kinds; all materials and machinery necessary for working the mines are to be introduced into Korea duty free; and all products from the mines are exportable duty free. Of the net profits which will remain after all expeuses are paid a royalty of twenty-five per cent. is to be paid to the Imperial Korean Government.

It is interesting to compare this with the terms of the Honan-Shansi concession granted to the Peking Syndicate. In that case the contractors have to pay in the first place a pro. ducer's tax of five per cent. upon the value of the coal and iron raised; they have to pay a duty and a half on all the materials and machi. nery imported; they have to pay duty on all the products of the mines they export: they have to provide schools, and there are still other requirements beyond the twenty-five per cent, of the net profits which the Chinese to- vernment ulso exacts. The Koreans, it will be seen, have set au example which the Chinese might well follow, in encouraging in every way the opening and development of their country, their only charge being the twenty. five per cent of the net profits after the payment of all expenses. while the Chinese start by handicapping what ought to be one of their most important industries, namely mining, by levying the usual import aud ex- port duties, to say nothing of the farther and more important charge of royalty upon the products before any expenses of working the mines are taken into consideration. We cannot expect the men who still rule in Peking, thanks to the coup d'état, to understand tha it would pay China to invite foreigners to come in aud drospect for and open mines without charging any royalty or share of profits at all. The fertilising effects of the introduction of foreign capital would be ample considera- tion for the permission to open mines; the well-paid employment that would be given to the people and the stimulating effect on trade; for these aloue it is worth their while to give concessions to foreigners; but this they can hardly be made to understand.

i he following are the terms of the Korean concession we have referred to

Contract between the Imperial i orean Gov. ernment and Messrs. James Victor Burn-Mur- d ch und John Alexander lay regarding mines. I.-Messrs. J. Vietor Buro-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 bich place they can work under the couditions as set forth hereafter; such a place to be 6-1 Korean li long and 40 Korean li wide.

especiallye dollar on patriotic grounds, this contract,

the winter, and the Russians are by no means miserly. We cannot vouch for the above statement as they are from Chinese sources, partially substantiated by, foreigners. but there is nothing improbable in them as far as we can seu. The Chinese troops being missed at Shanhaikwan are reported to be there for the express purpose of repelling any attempt at a Russian or any other "foreign devil" invasion, and a a general impression is abroad amongst the troops that the order will presently ́be given to arise aud ŝmite the foreigners and drive them bodily into the sea............ A rather dangerous idea to encourage we should say. Peking and Tientsin Lymes.

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I-In the place thus selected Messrs. J. Victor Buru-Murdoch and John A. ay or their assigns may work all mines, gold, silver, copper, cal, 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 hanage 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. Vi or Barn- Murdoch and John A. Hay, or their assigns during the term of this contract.

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December 24, 1898.

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 ease of any force majeure this

is contract will be extended for a period equal to the tive during which the force majeurs existed. Messrs J Victor Burn-Murdoch and John A. Hay, or their assigns, will inform the Imperial Korean Government through H.B.M. Charge d'Affaires one month before actual work commences.

IV

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

V-During the time a place is being selected by Messrs. J. Victor Euro-Murdoch and John A, Hay or their assigns the Korean Govern- ment may grant concessions to other foreigners. Permission to work a mine cannot be granted to Messrs. J. Viotor Burn-Murdoch and John A. Hay or their assigns in the following, dis- trists:-Yunghung, Kilchu, Tanchon, Ping- yang, Chairing, Suan, and Hamhung, which places bare 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 intruments, 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 Govern- ment 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 ereot go downs, houses, or any other buildings in con- nection with this undertaking within the limits stated in Article 1, andthey may build roads if they consider them necessary, but shall pay for all land taken by such roads and all damages oreated 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 Kores; all material necessary for the working of the mines will enter Korea duty free and all pro- ducts from the mines will leave Korea duty free.

IX.-In case of any private lands, fields, houses, etc., being required by Messrs. J. Victor Barn-Murdock sud 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 Burn- Murdoch and John A. Huy or their assigns at reasonable prices at their expense, and any damages must also be paid by the said J. Victor Buru-Murdoch and John A. Hay or their as- signs. Tombs must not be interfered with.

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X-Of the net profits which will remain after deducting all expenses, Messrs. J. Victor Barn- - Murdoch and John A. Hay or their assigns engage to pay a royalty of 27 per cent (twenty- five per cent) to the Imperial Korean. Govern- ment, 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 maobinery 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 inter fere 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 pro. portion 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 a foreigners employed

18 to them. at the mines, and will grant passports t

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

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