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The American Minister tells me that, under instructions from his Government, he made representations in the same sense verbally to the Wai-wa Pu, and that he had I have also been informed by my received a reply similar to the onc sent to me. Russian colleagues that he has recommended his Government to agree to the immediate establishment of customs stations in North Manchuria at the places mentioned by the Wai-wu Pu in their note to me. He is now awaiting instructions, but he thinks that bis Government will raise no difficulties, provided that a satisfactory arrangement is made for the free admission of military supplies for the Russian troops still in operation.
A copy of this despatch has been sent to Tôkiô.
I have, &c.
(Signed) LANCELOT D. CARNEGIE.
Inclosure 1 in No. 1.
Agreement between Chinese Government and Russo-Chinese Bank.
HSU-KING-CHEN, Envoy Extraordinary and Minister Plenipotentiary of His Majesty the Emperor of China at St. Petersburgh, acting in virtue of the Imperial Edict of the 20th day of the 7th moon of the 22nd year of Kuang Hsü (16th (28th) August, 1896), and the Russo-Chinese Bank, have, for the purpose of entering into partnership, agreed to the following stipulations :-
Article 1. The Chinese Government engage to enter into partnership with the Russo-Chinese Bank with the capital of 5,000,000 Kuping taels, and to share pro ratá, from the date of the investment of the fund to the said Bank, all profits realized as well as all losses sustained.
Art. 2. On the 1st day of January of each year (Russian Calendar) when the annual settlement of all accounts of the Bank is to be made, the proportion of the capitals of the Chinese Government and the Russo-Chinese Bank shall be examined and determined respectively, and according to the basis thus established the amount of the profits or losses to be shared by the Chinese Government shall be fixed in Kuping taels at the end of the year.
Art. 3. In accordance with the Articles of Association of the Bank, a certain per cent, of the net profit annually realized shall be set aside to be allowed to the Directors of the Bank as bonus. The profits remaining after such deduction shall be divided pro rutd between the Chinese Government and the Russo-Chinese Bank, each of whom is to contribute towards the reserve fund 10 per cent, of the amount so divided; and, if the rest still exceed 6 per cent. of the whole amount of each capital, 20 per cent. of such surplus, after deduction of the said 6 per cent., shall be distributed among the employés of the Bank as gratuity. In case of a loss, the portion to be borne by the Chinese Government shall, in the first instance, be supplied from the reserve fund on their account.
Art. 4. The monthly and annual balance sheets of the accounts of the Bank shall, after examination and approval by the general meeting of shareholders, be transmitted by the agent of the Bank in China to the President of the Eastern China Railway appointed by China, for final submission after his examination to the proper quarters.
Art. 5. In case of dissolution of the Bank on account of losses or some other causes, the portion of losses to be borne pro rata by the Chinese Government for the liquidation shall be duly determined, and the remaining amount of the capital invested by the said Government shall be refunded.
This 2nd day of the 8th moon of the 22nd year of Kuang Hsü. (The 27th August (8th September), 1896.)
Inclosure 2 in No. 1,
Supplementary Agreement between China und Eastern China Railway Company,
HSU-KING-CHENG, Ambassador Extraordinary of His Majesty the Emperor of China, and Yang-yu, His Imperial Chinese Majesty's Envoy Extraordinary and Minister Plenipotentiary to the Court of St. Petersburgh, acting in virtue of the
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Imperial Edict of the 7th day of the 5th moon of the 24th year of Kuang Hsü (13th (25th) June, 1898), and the Eastern China Railway Company, in conformity to the Agreement between Russia and China, signed at Peking on the 15th (27th) March, 1898, and of the Additional Protocol, signed at St. Petersburgh on the 25th April, 1898, by which documents it has been stipulated that "the Chinese Government agree to extend, from the date of the signature of the Agreement, the terms of the Agree- ment concluded with the Eastern China Railway Company on the 27th August (8th September), 1896, concerning the construction and exploitation of a branch line starting from one of the stations on the main line of the Eastern China Railway and reaching the ports of Talienwan and Port Arthur, on the coast of the Liaotung Peninsula "; that "all the stipulations of the Agreement concluded between the Chinese Government and the Russo-Chinese Bank on the 27th August, 1896, shall apply with equal strength to this branch line"; and that the tracks, as well as the points where this line will pass, shall be determined by Ambassador Esu-king-cheng in common accord with the Eastern China Railway Company"; have, for the purpose of completing the Agreement for the construction and exploitation of the Eastern China Railway, agreed to the following stipulations :--
Article 1. This branch line of the Eastern China Railway shall reach the seaports of Port Arthur and Talienwan, and shall thus be called the South Manchurian branch line of the Eastern China Railway.
Art. 2. It being understood, according to Article 4 of the Agreement of the 27th August, 1890, that the Chinese Government are to take measures, whenever circumstances require, to facilitate the transportation, by land and water, of materials required for the construction of the line, the said Government authorize the Company's steamers and other boats under the Company's flag to navigate the Liao-ho and its tributaries, as well as to enter and unload materials at, the port of Yingkow and all the ports in the neutral zone, where it is found possible to do so, as well as necessary to accelerate the completion of the construction of the branch line.
Art. 3. Equally, in order to facilitate the transportation of materials and provisions necessary for the construction of the South Manchurian branch line, the Eastern China Railway Company has the right to extend temporary branch lines to Yingkow and to other ports of the neutral zone; but as soon as the line is completed and the traffic is fully opened, the Company shall, on demand from the Chinese Government, demolish those branch lines. This demolition shall, at all events, become obligatory on the Company after the lapse of eight years from the date of the completion of the definitive survey and the assignment of the necessary land required for the construction.
Art. 4. In virtue of the concession granted to the Company by the Chinese Govern- ment in 1895 (November 1897 in French text) concerning timber and coal needed by the railway line, the Company is authorized to fell trees in the State forests and appropriate them, on condition that it shall pay for each tree so felled a price to be fixed in common accord with the Chinese local authorities, not exceeding the current price of the locality. Such forests, however, in Sheng-king Province, as particularly belong to the Imperial domain or represent a great religious importance, and are on that account specially protected by the Central Government of Peking, shall be respected. and preserved intact. In the region through which the proposed railway line passes, the Company is also authorized to work coal mines in order to meet the demand required for the construction and exploitation of the branch line, by paying a certain price calculated by weight of the coal extracted. The price shall be determined by the Chief Superintendent of the Company or his deputy in common accord with the Chinese local authorities, and it shall not exceed the current price of the locality paid by other persons for the right of working coal mines.
Art. 5. The Russian Government, having the right to establish such custom Tariff as they may deem suitable for that region of Liaotung Peninsula, which is ceded to them in usufruct, the Chinese Government shall, on their part, levy the custom duties at the frontier on goods imported into, or exported from, the above-mentioned region of the Peninsula. For this purpose the Chinese Government shall, it Russia consents thereto, establish a custom-house at Talienwan from the day of opening of that port for commerce. In case such custom-house is established, the organization and administration thereof shall be intrusted to the Eastern China Railway Company, which shall levy the duties as agent, and for the profit of the Chinese Treasury Depart- This custom-house shall be under the direct control of the Central Government
B 2 [2183] y-6]
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