:

C.O

2

from the said Commissioner. And for the consideration aforesaid, we also jointly and severally guarantee to remain responsible to the said Commissioner for, and to pay him, if called upon to do so, any fine to which the master of any such steamer belonging to or consigned to us at any time may have become liable here owing to the contravention of any Treaty rule or regulation, in case we shall be unable within three months from the date of the alleged contravention of the rule or regulation to cause the master to appear before the Consul or other official concerned to answer the charge.

And for the consideration aforesaid, we also jointly and severally guarantee, as regards each of such steamers: (a) to (c), clauses referring to opium, HI.F.B.; (d) that any person employed in connection with such steamer who does, or who aids or abets, or who does not take steps to prevent any action detrimental to the Chinese revenue shall be suitably punished; and (e) that the said Messrs. shall, so far as their vessels and crews are concerned, at all times lend their support to the officers of the Customs in the performance of their duty.

The agreement on the part of the said Commissioner bereinbefore mentioned may at any time be cancelled by him in any writing to that effect, delivered to any one of the signatories hereof, and without assigning any reason for so doing, but, unless so cancelled, shall remain in force (for one year), and in case at the expiration of the time any duties or fees due under this guarantee shall remain outstanding or unpaid, this guarantee shall continue binding and in full force in respect of the outstanding duties or fees until the same shall be paid.

Dated

This guarantee is signed not only by the firm giving it, but by two other firms who are the guarantors, in the presence of the Consul concerned.

[This Document is the Property of His Britannic Majesty's Government 559

CHINA TRADE,

CONFIDENTIAL.

[39325]

No. 1.

RECO

3.

REG 2 JAN 08 [November 30

SECTION 1.

Sir J. Jordan to Sir Edward Grey.-(Received November 30.)

(No. 484.) Sir,

Peking, October 14, 1907. I HAVE the honour to report, with reference to the misunderstanding which had arisen between the Russian Minister and the Wai-wu Pu on the subject of the establishment of custom-houses in Manchuria, that the suggestion mentioned in the last paragraph of my despatch No. 437, Confidential, of the 17th ultimo has been accepted as a solution of the question on both sides.

Under this arrangement goods conveyed by the Chinese Eastern Railway from Russia to China will pay only two-thirds of the Treaty tariff so long as they remain within the fixed areas of the railway stations. If conveyed thence to other parts of Manchuria they will pay an additional one-third duty, or a full maritime duty in all. If they are transported into China proper they will pay a further transit duty of one-half of the Treaty tariff, i.e., they will be exactly in the same position, as regards duties, as goods imported by sea.

As the quantity of goods reaching China proper by the Chinese Eastern Railway is likely to be very small, the concession made to China by the acceptance of Sir Robert Hart's suggestion is of little practical importance, although it appears to place a limitation upon the 10th Article of the Railway Agreement of 1898, which applies to goods conveyed from Russia to China generally.

I have, &c. (Signed) J. N. JORDAN.

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