510
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mencement of the first moon to the end of the third moon. In the event of a shareholder not claiming his dividends at the proper time, they will be held at his disposal by the Company.
19. The boundaries of the mining property held by the Company, hereafter to be accurately defined by the Mining Bureau, will be as follows:-
On the south: The Taitzu River.
On the north: The Liu Pool.
On the east: The small river by Penchihu.
On the west: The drain of the village of Ma-yi.
20. The mining area is on Chinese territory and subject to Chinese jurisdiction. In the case of minor offences the General Managers of the Company may investigate them jointly and award punishment.
In the case of graver offences, a Chinese subject must be handed over to the local authorities for trial and punishment, and similarly a Japanese will be handed over to the Consul concerned,
21. Differences may be settled by the appointment of a single Arbitrator, or of two or three Arbitrators, There should be no appeal from the decision of such arbitration.
29. Should the business of the Company be conducted at variance with the principles of public law or with the mercantile law of China, or to the detriment of the local administration, the local officials should endeavour to arrange matters fairly, but if they are unsuccessful, they may petition the high provincial authorities who are empowered to order the closing of the working of the mine.
23. Compensation must be paid by the Company in the event of damage caused to either public or private property by the mining industry. Efforts must be made to avoid including graves in the mining area; if this is impossible, an amicable arrangement should be made with the family to whom the graves belong. On no pretext must graves be appropriated against the wishes of the family concerned.
24. No important changes in the constitution of the Company shall be made unless agreed on at a general meeting of the shareholders. Holders of 100 shares or more will be notified of such meeting. A Notice will be published in the newspaper for the information of the smaller shareholders one month before the date of any such meeting.
25. The Company is to defray the cost of policing its property.
26. In the event of war between China and a foreign Power, coal from the Company's mines is not to be supplied to such hostile Power.
27. No transfer of the shares of the Company is to be made to any but a Chinese
or Japanese subject.
28. The Mining Bureau is to be allowed to inspect the accounts of the Company from time to time.
29. Materials imported by the Company that have paid the Maritime Customs duty will be free from payment of li-kin and other inland taxes of that nature.
that have not paid the customs duty will be subject to such taxes.
Materials
30. The Chinese and Japanese Governments are not to be held responsible in the event of loss incurred by the Company. The Chinese and Japanese merchants subscribing are themselves responsible.
31. Six copies of this draft Agreement are to be made out, each copy in Chinese and Japanese.
Oue copy is to be given to Messrs. Okura and Co.;
One copy to Messrs.
One copy to be retained by the Company;
;
One copy to be deposited in the Mining Bureau;
One copy to be handed to the Provincial Government; and
One copy to be sent to the Board (Agriculture and Commerce) for approval.
When such approval has been received the draft contracts will be signed and sealed.
In the event of difference arising regarding the interpretation of the text, the Chinese text shall be deemed authoritative.
32. Should the high provincial authorities or the Board of Agriculture and Commerce be unable to approve the terms of this Agreement, changes will be made and this Agreement considered as cancelled.
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33. On the expiration of the period of this Agreement the bridges, roads, houses, and other fixtures belonging to the Company shall revert to the Chinese Government.
34. Coal sold by the Company to Chinese merchants shall be priced in Chinese currency, and coal sold to Japanese merchants similarly priced in Japanese currency, but the capital of the Company is fixed in Chinese currency for convenience in the payment of taxes and the royalty to the Chinese Government.
35. The Chinese employés are to be paid in Chinese currency; Japanese employés
in Japanese currency; other foreigners in Chinese currency.
36. Should this Agreement be hereafter approved, it, is understood it is a special Agreement for the joint working of the Penchihu mines by Chinese and Japanese merchants, and is not to be made a precedent in the case of future mining Agreements, whether with other Powers or in the event of further joint enterprises undertaken by Chinese and Japanese subjects.