CO537-3711 — Page 144

State Papera Vol. 95, p.1005 et seq.

PAPER F.

Lae

PART I

COPY

Article 1 of the Sino-German Treaty of 6th March, 1898 reads as follows:-

"H.M. the Emperor of China, guided by the intention to

strengthen the friendly relations between China and Germany, and at the same time to increase the military readiness of the Chinese Empire, engages, while reserving to himself all rights of sovereignty in a zone of 50 kilom (100 Chinese 11) surrounding the Bay of Kiuo-chow at high water, to permit the free passage of German troops within this zone at any time, as also to abstain from taking any measures, or issuing any Ordinances therein, without the previous consent of the German Government, and especially to place no obstacle in the way of any regulation of the water- courses which may prove to be necessary. H.K. the Emperor of China, at the sume time, reserves to himself the right to station troops within that zone, in agree- ment with the German Government and to take other military measures.

(2) Article 2 then ceded to Germany, on lease, "both sides of the entrance to the Bay of Kiao-chow", while Article 3, besides defining the limits of the territory so ceded, says "In order to avoid the possibility of conflicts, the Imperial Chinese Government will abstain from exercising rights of sovereignty in the ceded territory during the term of the lease, and leaves the exercise of the same to Germany, within those limits.

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(3) As regards the Chinese population living in the ceded territory it was laid down, in Article 5, that they should enjoy the protection of the German Government, provided that they behaved in conformity with law and order and that they should remain on their land unless it was required for other purposes. Compensation was to be paid in the event of land being so required.

(4) In dealing with this lease Young points out, in a foot- note to page 99, "that there was no intent to have reserva- tion of sovereignty by China mean anything more than the ultimate right to recover the lease after the expiration of the time specified."

(5) As regards the Chinese resident within the geded territory Young says (footnote to p. 64) that, although they were subject to German protection and jurisdiction so long as they remained there, they were not considered German nationals regulations were promulgated, however, by which they could acquire German naturalisation.

(6) From the foregoing it will be seen that the treaty of 1898 did not make provision for Chinese jurisdiction in the area covered by the lease.

Foreign Office,

April 16, 1948.

(Signed) C.H. FONE