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detained in the manner provided for such cases by Chinese law, in which case the provisions of paragraphs 2 and 3 of this article will apply.
8. Except in such cases as must under the relevant Chinese law be heard in camera, all hearings of cases involving subjects of His Majesty will be open to the public, and all persons interested in the hearings may be present as spectators.
ARTICLE 6.
1. Subjects of His Majesty shall be liable for the payment of such non-discriminatory Chinese taxation only as is actually paid by all Chinese citizens who are liable therefor and is authorised under the legally enacted and duly promulgated laws, ordinances and regulations of the central, provincial and municipal Governments of China.
2. Subjects of His Majesty shall be protected against all taxation without legal sanction and against irregular or discrimina- tory methods of assessing or levying taxation and such legal taxation as is properly payable by subjects of His Majesty shall be enforced against them by no other process than that of action in the competent modern Chinese courts of justice.
8. Municipal taxation shall be imposed upon subjects of IIis Majesty only in accordance with duly authorised municipal regula- tions sanctioned by the central or provincial Governments of China. The proceeds of such municipal taxation shall in general only be expended on relevant purposes within the municipal area in question. ਲੈ . No methods of assessing liability to taxation shall be employed except those prescribed by the duly promulgated laws. ordinances and regulations of China. In cases of disputed assess- ments. the party concerned shall be entitled to have the amount of his liability determined by the competent modern court of justice in accordance with Chinese law.
5. Tax agreements entered into with subjects of His Majesty in their several capacities as individuals, merchants, firms, partnerships or companies, will be duly observed.
ARTICLE 7.
1. The Chinese courts will recognise and, if necessary, secure performance of agreements wherever entered into by subjects of His Majesty with one another or with other foreign nationals or with Chinese citizens for the settlement of civil or commercial contro- versies by arbitration, The arbitrators selected by the parties in accordance with such agreements may be of any nationality.
2. The arbitration if held in China shall be conducted in accordance with the procedure prescribed by Chinese law.
8. The Chinese courts will not entertain any application or claim. the subject matter of which falls within the scope of such an agreement for arbitration, but will enforce awards made in pursuance of such agreements unless the award is contrary to public order or good morals or is vitiated on other grounds recognised by the general principles of law as understood in modern jurisprudence.
ARTICLE 8.
1. All rights in immovable property held by subjects of His Majesty in China shall be recognised as valid and shall remain undisturbed subject to the exercise of the right of eminent domain by the Chinese Government.
2. The property. whether movable or immovable, of subjects. of His Majesty in China shall not be expropriated or requisitioned except for reasons of public interest recognised by the law as such, and only after adequate compensation has been paid.
3. Any dispute regarding the amount of compensation to be paid shall be determined by reference to the competent administra- tive organ or the competent modern court of justice at the option of the subject of His Majesty concerned in accordance with Chinese law. Where such cases are brought before the modern courts of
justice, the provisions of article 2 and article 3 of the present Treaty covering the hearings of cases in which subjects of His Majesty are involved as defendants will apply.
ARTICLE 9.-
The public buildings and private residences of subjects of His Majesty in China and their warehouses and business premises and factories, together with all their accessories, articles and properties, shall be respected, and shall not be subjected to any occupation, search or inspection, and the hooks and correspondence relating to their commercial transactions shall not be examined except as specifically provided for in non-discriminatory legislation legally enacted and duly promulgated. Except in cases of flagrante delicto premises occupied by subjects of His Majesty shall not be forcibly entered except upon a warrant formally issued by a modern court of justice specifically stating the legal grounds on which action is
authorised.
ARTICLE 10.
Subjects of His Majesty in China shall not be subjected to any form of military service or to any tax or levy imposed as a substitute for military service or to military requisitions or contributions of any kind, nor shall they be liable or compelled to subscribe, directly or indirectly, to any public loan or to any other form of forced levy.
ARTICLE 11.
British commercial vessels in Chinese ports or waters will comply and duly with such non-discriminatory and legally enacted promulgated Chinese regulations as are applicable to all commercial vessels. They will not be subjected to any form of commandeering or requisition, nor will they be compelled to carry Chinese troops or Chinese military supplies. Such vessels will not be inspected, searched, boarded or subjected to any kind of restraint by Chinese armed military authority, except in the case of special emergency and only after due notification to and by arrangement with the captain of the vessel or the officer in charge. They may not be boarded by Chinese police, nor may any person be arrested on board any such vessel except upon a warrant formally issued by a modern court of justice specifically stating the legal grounds on which action is authorised. In the absence of such a warrant, Chinese police may only board the vessel in case of special emergency and only after due notification to and by arrangement with the captain of the vessel or the officer in charge. In general. the treatment accorded to British commercial vessels shall be in conformity with that accorded in recognised international practice by maritime nations to vessels of other countries in their ports or territorial waters. The present authority of the Chinese Maritime Customs with regard to British commercial vessels, including authority to search such vessels for the prevention of fraud or smuggling, shall remain unimpaired.
ARTICLE 12.
Companies, firms, partnerships and corporations incorporated or organised in accordance with the laws of His Majesty and operating in China shall, provided they comply with the provisions of Chinese law relating to the registration of such organisations, be entitled to all the rights and privileges enjoyed by subjects of His Majesty under this Treaty, including the rights enjoyed in Chinese courts, whether as plaintiffs, complainants or defendants. Such companies, firms, partnerships or corporations and their branches, agencies or repre- sentatives shall not be subject to discriminatory treatment, and as regards national, provincial and municipal taxation shall only be taxed in proportion to the amount of capital actually employed respectively in China, in the province or in the municipality, or in respect of the profits and revenues which they have actually earned respectively in China, in the province or in the municipality. Reciprocally Chinese companies, firms, partnerships or corporations
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