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[This Document is the Property of His Britannic Majesty's Government.
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Railway is subjected at Koupangtse, are killing the trade on that line to the benefit of the South Manchurian Railway. There are other ways too in which, by their short- sighted policy, the Chinese authorities are hindering instead of assisting, as they might be expected to do, the trade of Newchwang. Salt until last year, when it was made a Government monopoly, was always conveyed into the interior by cart, for which it is a particularly suitable form of cargo. The authorities at once entered into an agreement with the Japanese Railway to send the salt up by rail instead of by cart, with the result that thousands of carters who brought down produce last winter either to Newchwang or the other trade depôts on the Liao River, depending on salt for their return cargoes, had to go back with empty carts. The price of salt, on the other hand, went up to such an extent that the native papers have been full of protests from consumers.
I would remark in conclusion that, in venturing to express my confidence in the ability of Newchwang to maintain her position, if not as the sole, at any rate as one of the chief distributing centres of Manchurian trade, I have assumed that no preferential rates or special advantages-other than those already granted-will be given on the South Manchurian Railway to cargo travelling via Dalny, from the enjoyment of which cargo forwarded via Newchwang is excluded. By such means the Japanese have it, of course, in their power to ruin the import trade of this port which, most of it, finds its way into the interior by their railway. The special through rates to stations on the South Manchurian Railway which are now being offered to shippers by the railway company's steamers plying between Shanghae and Dalny, appear to me to be the thin end of the wedge in this direction, for they are very little higher from Shanghae than the actual railway freights from Dalny to these places, and must make competition with these steamers very difficult. In fact, unless special arrangements for a reduction in the railway rates on through cargo can be made by other steamship companies with the railway, the latter's steamers are bound, it would seem, to obtain in time a monopoly of the trade between Shanghae and Manchurian ports, which will be as detrimental to British shipping as it will be to the port of Newchwang.
I have, &c.
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F. E. WILKINSON.
AFFAIRS OF CHINA.
CONFIDENTIAL.
[33668]
No. 1.
靡
[September 6.]
SECTION 3.
Chino-Japanese Agreements, &c.—(Communicated by Councillor of Japanese Embassy, September 6, 1909.)
(1.)
(Confidential.)
THE Imperial Government of Japan and the Imperial Government of China, actuated by the desire to consolidate relations of amity and good neighbourhood between the two countries, by settling definitely matters of common concerns in Manchuria and by removing for the future all cause of misunderstanding, have agreed upon the following stipulations-
Article 1. The Government of China engages that, in the event of its undertaking to construct railway between Hsin-min-tun and Fakumen, it shall arrange previously with the Government of Japan.
Art. 2. The Government of China recognises that the railway between Tashichao and Yingkow is a branch line of the South Manchurian Railway, and it is agreed that the said branch line shall be delivered up to China simultaneously with the South Manchurian Railway upon expiration of the term of concession for that main line. The Chinese Government further agrees to the extention of the said branch line to the port of Yingkow.
Art. 3. In regard to coal mines at Fushun and Yuentai, the Governments of Japan and China are agreed as follows :—
(a.) The Chinese Government recognises right of the Japanese Government to work the said coal mines.
(b.) The Japanese Government, respecting the full sovereignty of China, engages to pay to the Chinese Government tax on coals produced in those mines. Rate of such tax shall be separately arranged on the basis of the lowest tariff for coals produced in any other places of China.
(c) The Chinese Government agrees that, in the matter of exportation of coals produced in the said mines, the lowest tariff of export duty for coals of any other mines shall be applied.
(d.) The extent of the said coal mines, as well as all the detailed regulations, shall be separately arranged by commissioners specially appointed for that purpose.
Art. 4. All mines along the Antung-Mukden Railway and the main line of the South Manchurian Railway, excepting those at Fushun and Yuentai, shall be exploited as joint enterprises of Japanese and Chinese subjects upon the general principles which the Viceroy of eastern three provinces and the governor of Shingking Province agreed upon with the Japanese consul-general in 1907 corresponding to the 33rd year of Kuang Hsu. Detailed regulations in respect of such mines shall, in due course, be arranged by the Viceroy and governor with the Japanese consul-general.
Art. 5. The Government of Japan declares that it has no objection to extension of Peking-Makden Railway to the city wall of Mukden. Practical measures for such extension shall be adjusted and determined by the local Japanese and Chinese authorities and technical experts.
In witness whereof the undersigned, duly authorised by their respective Govern- ments have signed and sealed the present agreement in duplicate in the Japanese and Chinese languages. (Terminating clause same as in agreement concerning boundary).
(2.)
(Confidential.)
THE Imperial Government of Japan and the Imperial Government of China, desiring to secure for Chinese and Corean inhabitants in the frontier region blessings of
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