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of delegates, who are vested with power to deal with all local questions of public interest.
The actual executive power, however, rests with a committee or municipal council of six persons, three of whom are elected from amongst its own members by the assembly of delegates, two nominated by the director of railway and the president of the Chiao Shi Chu (or Provincial Board of Foreign Affairs), while the president of the committee is also a nominee of the assembly of delegates. The Chinese Government and the railway company have thus each their representative on the municipal council, but their powers do not stop there for the president of the Chiao Shi Chu and the director of the railway are, by articles 13 and 14 of the agreement, given a general right of control and personal supervision over the doings of the assemblies of delegates and can veto all decisions of the municipal committees, subject, however, to these decisions being sent back to the assemblies for further consideration and being made effective if adopted by a majority of three-fourths of the members.
Even these official safeguards are not considered sufficient, and a still further check upon popular government is introduced into the 10th article, which stipulates, with what seems to be almost superfluous caution, that important questions having reference to public interest or the finances of the municipalities shall, after discussion by the assemblies of delegates, be referred for consideration and approval of the Chinese president of the milway company and the head office of the company at St. Petersburgh.
Seeing that article 10 empowers the assemblies to deal with all local questions of public utility, it is at first sight hard to see how " important questions of public interest" can, consistently with that provision, be referred to the decision of another and higher body.
The explanation given to me by the Russian Minister is that article 15 is intended more especially to apply to municipal loans which it was not thought wise to entrust to interested people on the spot.
It should be remembered in passing that no Chinese president of the railway company at prescnt exists, the 1st article of the 1896 agreement having fallen into desuetude. The idea in reviving the appointment is apparently to provide an equipoise on the Chinese side to the influence exercised by the head office of the railway at St. Petersburgh.
Article 16 limits the administration of the railway company to the properties specially set apart for railway purposes, and may thus be taken to define authorita- tively the extent of "le droit absolu exclusif de l'administration de ses terrains," which the company claimed under the 6th article of the original agreement of 1896.
17
Article 17 is far the most important of all, and forms, together with the exchange of notes, the one essential safeguard for the protection of the treaty rights of other Powers. Much will depend upon the nature of the "detailed regulations which it is proposed to elaborate, and, as they will deal with police organisation and taxation, it is to be presumed that they will be drawn up in consultation with the representatives of other Powers, or, at all events, be subject to their approval. Otherwise, as I have informed the Russian Minister, they will not be enforceable on the subjects of other nations through our consular courts.
It seems to me almost impracticable to graft upon the present agreement any rules which will give these municipal bodies a truly international character, but it Jay perhaps be possible to devise some means whereby other foreigners may be abie to live and trade with a tolerable degree of freedom and comfort under a species of Chinese and Russian condominium, tempered with a certain amount of self-govern-
ment.
The Russian Minister here realises that other Powers will expect to have a voice in the framing of the "detailed regulations," and, in view of all the interests at stake, it seems important that the American and British Ministers in particular should be authorised to watch the negotiations, and do what is possible to protect the Treaty rights of their nationals,
It is important to note that, pending the framing of "detailed rules," the existing municipal regulations, to which such serious exception has been taken, are to remain in force, subject to certain modifications provided for in article 18 of the present agreement. Considering the difficulties which are likely to be experienced in framing the "detailed rules," this provisional arrangement may last for some time, and its working will be required to be carefully watched.
The recognition of Chinese sovereign rights over the railway territory, which
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is so positively affirmed in this agreement, is, I understand, viewed with considerable concern by the Japanese Minister, who foresees the possibility of the extension of the principle to the Japanese settlements on the South Manchurian Railway.
As China succeeded in obliging Japan to accept the terms of her arrangement with Russia for telegraphs in Manchuria, so she doubtless hopes by the same means to secure the adhesion of Japan to this modified interpretation of the 1896 railway agreement. But the task will be a much more difficult one, as the Japanese commu- nities have taken firm root on the soil of China, and Japan has always shown a marked disinclinatiou to join in any form of international settlement wherever her people could find a way of living apart under their own institutions. Politically, too, she will probably see strong objections to recognising China as the paramount lord of the railway territory.
I have, &c.
Inclosure 1 in No. 1.
J. N. JORDAN,
Preliminary Agreement, signed at Peking, May 10, 1909.
DES divergences d'opinion s'étant produites dans l'interprétation du contrat pour la construction et l'exploitation du Chemin de Fer de l'Est de la 22° année de Kuang Hsu, 8 lune, 2o jour (27 aout, 1896), les Gouvernements de Chine et de Russie ont arrêté, au sujet de l'organisation des municipalités sur les terrains du dit chemin de fer, les dispositions générales suivantes :-----
1. Comme principe fondamental, les droits souverains de la Chine sont reconnus sur les terrains du chemin de fer; aucun préjudice ne peut leur être porté.
2. La Chine prend toutes mesures émanant de ses droits souverains sur les terrains du chemin de fer, et la direction du chemin de fer ou les municipalités ne peuvent sous aucun prétexte s'opposer à ces mesures tant que les dites mesures ne sont pas contraires aux contrats conclus avec la Société du Chemin de Fer chinois de l'Est.
3. Les contrats du Chemin de Fer chinois de l'Est actuellement existants demeurent en pleine vigueur.
4. Les lois ou ordonnances et les mesures législatives résultant des droits souve- rains de la Chine sont rédigées et publiées par les fonctionnaires chinois sous forme de proclamation.
5. Les hauts fonctionnaires chinois et agents officiels visitant les terrains du chemin de fer seront accueillis par la direction de chemin de fer et les municipalités avec tous les égards et la déférence de rigueur.
6. Des organisations municipales sont établies dans les centres commerciaux d'une certaine importance situés sur les terrains du chemin de fer. Les habitants de ces centres commerciaux suivant l'importance des localités et le nombre des habitants, nomment par
voie d'élection des délégués qui choisissent un comité exécutif; ou bien, les habitants cux-mêmes participent aux affaires municipales et un représentant est élu parmi eux, lequel se charge d'exécuter les résolutions prises par l'assemblée de tous les habitants.
7. Il n'est fait aucune différence sur les terrains du chemin de fer entre la popula- tion chinois et celle des autres nationalités; tons les habitants jouissent des mêmes droits et sont soumis aux mêmes obligations.
8. Le droit d'électeur appartient à tout membre de la communauté qui est propriétaire d'un immeuble d'une valeur fixe ou qui paye un loyer et une taxe annuels déterminés.
9. Le président est élu par l'assemblée des délégués et choisi parmi eux, sans distinction de nationalité.
10. Toutes les questions locales d'utilité publique sout de la compétence de l'assemblée des délégués. Les institutions qui n'intéressent qu'une partie des habitants, telles qu'églises, chambres de commerce, écoles, établissements de charité, etc., sont entretenues par cette partie des habitants, au moyen de cotisations.
11. L'assemblée des délégués choisit dans son milieu et sans distinction de nationalité les membres chargés de la gestion des affaires municipales; leur nombre
B 2 [2303 o-2]
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