General of the Syndicate, the province must be prepared to offer an amount which will be acceptable to the Syndicate.
Negotiations have been proceeding for over two months without result, and the offer of the province is not only insufficient, but has recently been reduced.
It is most desirable that this matter should be settled before the end of the Chinese year, and Sir John Jordan has the honour to request that the Wai-wu Pu will no longer neglect its responsibilities in this question, and that it still definitely instruct the Provincial Judge Ting to increase his offer to an amount acceptable by Mr. Brown.
January 10, 1908.
Inclosure 2 in No. 1.
AGREEMENT between the Shansi Bureau of Trade and the Peking Syndicate (Limited), for the redemption of the principal and supplementary covenants for opening mines, manufacturing iron, and transporting minerals in five localities in Shansi, namely, Yu-hsien, Ping-ting-chou, Lu-an-fu, Tse-chou-fu, and Ping-yang-fu.
IN 1898 the Shansi Bureau of Trade and the Peking Syndicate (Limited), agreed upon twenty Regulations for opening mines, working iron, and transporting mine products of all kinds in the Province of Shansi. Subsequently in 1905 a supplementary covenant in four Articles was entered into by his Excellency Shông, Director-General of Railways, and the Peking Syndicate.
Difficulties have arisen as to the fulfilment of these covenants, and his Excellency Ting Pao Chuan, Provincial Judge of Shansi Province, having been summoned by Imperial command to come to Peking and negotiate for a settlement of all questions connected therewith,
Now, it has been mutually agreed as follows:-
1. The Shansi Bureau of Trade has now made to the Peking Syndicate a proposal to redeem and cancel these principal and supplementary covenants, and the Peking Syndicate, after discussion, having recognized the earnest desire of the Shansi people to manage their own mining affairs, has consented, in the interests of public peace and international comity, after full consideration of all the circumstances, to allow the Province of Shansi to redeem the aforesaid covenants for mining, working iron, and transporting minerals, in order that the province may itself carry out the work.
2. The Shansi Bureau of Trade undertakes to pay to the Peking Syndicate in full on the due dates the amount agreed upon for redemption of the aforesaid covenants, namely, 2,750,000 Hong Ping Hua Pao taels.
3. The sum mentioned in the foregoing Article is to be paid by the Province of Shansi and accepted by the Peking Syndicate as full indemnity for all claims, losses, and damages of whatsoever kind on the part of the Syndicate in connection with the aforesaid covenants.
Money spent by the Peking Syndicate in enterprises in other provinces is no concern of the Province of Shansi,
4. It is agreed that, of the redemption amount mentioned above, one-half, namely, 1,375,000 Hong Ping Hua Pao taels shall be paid in cash on the 21st day of February, 1908, and that the balance shall be divided into three equal instalments, each to be paid on the 1st day of the 4th Chinese month of each immediately succeeding year commencing with 1909, namely, on the 19th May, 1909, the first instalment of 458,333 Hong Ping Hua Pao taels; on the 9th May, 1910, the second instalment of 458,333 Hong Ping Hua Pao taels; and on the 29th April, 1911, the third instalment of 458,334 Hong Ping Hua Pao taels.
5. The redemption amount is to be paid in Hong Ping Hua Pao taels, without any deduction or discount whatsoever. The responsibility for remittance charges between Shansi and Peking, together with the interest on money borrowed in advance for this purpose, shall be borne by the Province of Shansi.
6. This case originated in a request of the Shansi Bureau of Trade which was granted by the Governor of Shansi, and afterwards authorized by the Throne on a Memorial from the Tsung-li Yamên. Now, since the Province of Shansi is providing funds to redeem and cancel the covenants, the Wai-wu Pu should be moved to instruct the Governor of Shansi to see to it that the money is paid by the Bureau of Trade on the due dates, not permitting any excuses.
7. The Province of Shansi having recovered control of its mining affairs for its own working, and the Peking Syndicate having surrendered all its rights under the Principal and Supplementary Agreements for the opening of mines, working of iron, and transport of minerals, the Province of Shansi has no intention whatsoever of raising a foreign loan. But, seeing that the Peking Syndicate has hereby made a complete surrender of all its privileges, if by any possible chance the Province of Shansi shall hereafter desire to raise a foreign loan in connection with mines, working of iron, or transport of minerals, the Province of Shansi shall notify the Peking Syndicate, and if the Peking Syndicate's proposals are in all respects fair and moderate, shall then proceed to further negotiations. Otherwise arrangements with others may be made for a loan and neither party shall object.
8. All that the Peking Syndicate possesses at Ping-ting-chou in the way of compounds and buildings shall be evacuated, and with all machinery now there shall be delivered over to the Bureau of Trade within three months of the signing of this settlement. The Syndicate will surrender any and every property acquired in any of the five areas mentioned in the original covenant.
9. All claims for compensation on the part of the employés of the Syndicate, whether engineers or otherwise, for loss of occupation and prospects, shall be borne by the Syndicate.
10. The amount for indemnity shall be raised in advance by the Bureau of Trade from the people of Shansi by appropriating the whole of the funds of the Shansi Province acreage tax ("mu chuan"), which is a fund managed by the people as a whole for the general good of the province, and should therefore be used to redeem the mineral resources which are the inheritance of the people as a whole. This acreage tax shall not be changed in character nor reduced so long as any part of the indemnity remains unpaid to the Peking Syndicate. Should the acreage tax prove insufficient for the purpose it shall be supplemented, as required, by the provincial authorities from other funds.
11. As the original covenant in twenty Articles was confirmed by the Tsung-li Yamên, so this document of settlement should also be confirmed by the Wai-wu Pu, and recognized by the British Minister, who respectively guarantee its fulfilment by their respective nationals.
12. Done in English and Chinese this 21st day of January, 1908, in duplicate, one copy being held as evidence by each party.
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