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Inclosure 4 in No. 1.

Agreement for the Working of Mines in Hei-lung-chiang Province by the Chinese Eastern Railway Company,

SUNG TAOTAI, decorated with the Peacock's Feather, specially deputed for the purpose, on the one part, and General President of the Chinese Eastern Railway Company, and Acting Manager of the Railway Company, with full powers, on the other part, have agreed on the following Regulations for the opening of coal mines in Hei-lung-chiang Province for the use of the Railway Company.

1. As regards the privilege granted to the Chinese Eastern Railway Company of surveying or working coal mines in Hei-lung-chiang Province, within certain limits, the Railway Company may select at what places such mines are to be opened, and the manner in which they are to be worked; but at the time a mine is surveyed the Railway Company must, in conjunction with the Chinese officials, proceed to the place and carefully see that there are no objections to its opening, when consent will be given. What is meant by objections is the comparative distance of the mine from inhabited dwellings or graves, e.g., in the case of a market town, the pit's mouth must not be within a radius of 2 Chinese li, in the case of hamlets with not more than ten families it must not be within 1 li radius, and in the case of large graves or preserved forest land not within one-half li radius.

2. The Railway Company may work coal mines within a limit of 30 Chinese li on either side of the railway line. But Chinese subjects may also enjoy this privilege within such limits, and, provided that the mines do not interfere with mines already opened by the Railway Company, the Company must not obstruct them.

In the case of other foreigners, or of Chinese foreign Companies wishing to work coal mines within the 30-li limit, the consent of the Chinese officials and the Railway Company must be first obtained. Outside the 30-li limit the granting of the privilege of working coal mines to Chinese or foreigners is a question solely for Chinese officials, and is no concern of the Railway Company. If the Railway Company wishes to work mines outside the 30-li limit they must first obtain the consent of the Governor of the province in the same manner as Chinese subjects or other foreigners.

3. Villagers dwelling in the neighbourhood of the mines opened by the Railway Company may purchase coal for their daily use at the pit's mouth. Owing to the difference in local conditions and difficulty in settling on one fixed price, the Railway Company at Harbin will determine on what prices are to be charged in each place, and will publish a tariff, which will also be communicated to the Chinese Railway Board for publication to Chinese subjects.

4. Should the Company discover coal supplies in the vicinity of dwelling-houses, three or five together, or tombs not exceeding ten, and should the acquisition of such land be necessary, the Company may make arrangements with the owners for the removal of the houses or graves, an officer from the Chinese Foreign Board will be deputed to arrange a fair price, and the matter will be reported to the Governor.

5. When the Company decides on opening a mine in any given place the amount of land required by the Company must be surveyed by the Company in conjunction with a deputy from the Foreign Board, and a fair price either for lease or purchase must be jointly determined upon. Land not required for working the mine must be levelled down at the expense of the Company and given back to the owner. The Company has no other privileges as owner of the land (beyond that of working the mine). Should forest trees or crops be injured by the Company, compensation must be paid, the amount of such compensation to be settled jointly between the Company and the deputy from the Foreign Board.

6. Within the limits of land bought by the Railway Company, the Company may, at their pleasure, cut timber for material to be used for the mines. Outside the limits, a fair price must be paid to the owner of the land in accordance with the Timber Regulations agreed upon by the Company. Similarly, on Government land the timber must be cut in accordance with the before-mentioned Regulations.

7. For every 1,000 "chin" (catty) of coal obtained from the mines the Railway Company will pay to the Provincial Governor the sum of 0.12 tael. Such tax to be payable four times annually, at the end of the Russian 3rd, 6th, 9th, and 12th months respectively. For every pit opened there will be an annual tax of 17.64 taels, payable each year to the Provincial Governor at the end of the Russian 6th month.

8. In the case of Government land, the limits of the land required must be surveyed and marked off in conjunction with the Chinese officials. The Company will pay rent according as such land is cultivated or otherwise.

9. Matters not provided for in this Agreement may be settled on the spot by discussion between the Railway Company and the local officials or people. If no agreement can be arrived at, the question must be reported to the Chinese Foreign Board at Harbin.

10. The above Regulations apply only to mines opened by the Railway Company. Mines opened by Chinese subjects, whether new or old, no matter in what region, will be under Chinese Government Regulations, and are not the concern of the Railway Company.

11. This Agreement is made in Chinese and Russian. In case of difference of interpretation the Chinese text shall be deemed authoritative.

12. The Foreign Board of Hei-lung-chiang Province will appoint an official to reside at the coal mine to inspect the quantity of coal produced, and to keep accounts in conjunction with the Russian clerks appointed for this purpose. The Railway Company will provide a residence for such official. The boundaries of the land belonging to each mine must be clearly marked, or enclosed within a boundary wall. Inside such limits the Chinese police will not interfere, but if Chinese criminals should take refuge therein, the Chinese authorities must notify the mining authorities, who will depute officers to enter and make the arrest in conjunction with the Chinese police.

Signed at Harbin, Kuang Hsu, 33rd year, 7th moon, 22nd day (30th August, 1907).

(No. 26.) Sir,

Inclosure 5 in No. 1.

Acting Consul-General Willis to Sir J. Jordan.

Mukden, March 9, 1908.

WITH reference to my despatch No. 23 of the 7th instant, I have the honour to report that Mr. Tu Hsueh Ying, the Acting Taotai at Harbin, informed me to-day that an Agreement, identical in terms with that inclosed in the above-mentioned despatch, had been signed, under which the Chinese Eastern Railway Company had acquired the right to purchase land up to a total of 50,000 shang (approximately 43,000 acres), along the line of the railway between Harbin and Pogranichnaya.

I have, &c.

(Signed) R. WILLIS.

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