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In the event of a Chinese Company registered under Chinese law being formed to run steamers on the inland waters of China, the fact of British subjects holding shares in such a Company shall not entitle the steamers to fly the British flag.
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6. Registered steamers and their tows are forbidden, just as junks have alwa forbidden, to carry contraband goods. Iufraction of this rule will entail the penalties p in the Treaties for such an offence, and cancellation of the Inland Waters Navigation Os datos carried by the vessels, which will be prohibited from thereafter plying on inland waters.
7. As it is desirable that the people living inland should be disturbed as little as possible by the advent of steam-vessels to which they are not accustomed, inland waters not hitherto frequented by steamers shall be opened as gradually as may be convenient to merchants and only! as the owners of steamers may see prospect of remunerative trade.
In cases where it is intended to run steam-vessels on waterways on which such vessels have not hitherto run, intimation shall be made to the Commissioner of Customs at the nearest oper port, who shall report the matter to the Ministers of Commerce. The latter, in conjunction with the Governor-General or the Governor of the Province, after careful consideration of all the circumstances of the case, shall at once give their approval.
S. A registered steamer may ply within the waters of a port, or from one open port or ports to another open port or ports, or from one open port or ports to places inland, and thence back i to such port or ports. She may, on making due report to the Customs, land or ship passengers or cargo at any recognized places of trade passed in the course of the voyage; but may not ply between inland places exclusively except with the consent of the Chinese Government.
9. Any cargo and passenger boats may be towed by steamers. The helmsman and crew of any boat towed shall be Chinese. All boats, irrespective of ownership, must be registered before they can proceed inland.
10. These Rules are supplementary to the Inland Steam Navigation Regulations of July and September, 1898. The latter, where untouched by the present Rules, remain in full forva and effect, but the present Rules hold in the case of such of the former Regulations as the present Rules affect. The present Rules and the Regulations of July and September, 1898, to which they are supplementary, are provisional, and may be modified, as circumstances require, by mutual consent.
Done at Shanghae this 5th day of September in the year of our Lord, 1902; corresponding with the Chinese date, the 4th day of the 8th moon of the 28th year of Kwang Hsi.
(L.S.) JAS. L. MACKAY.
(Signature of his Excellency Lü Hai-huan.) (Signature of his Excellency Sheng Hsuan-huai.)
(Seal of the Chinese Plenipotentiaries.)
(Translation.) Your Excellency,
Inclosure 2 in No. 1,
Chinese Commissioners to Sir. J. Mackay.
Shanghae, August 19, 1902. WE have the honour to address you that at the meeting on the 2nd of this moon (5th August), your Excellency said, as recorded in the Minutes, that this Treaty would stand or fall as a whole, and that the British Government would never think of rejecting Article VIII on the one hand and accepting the other Articles on the other. Again, at the meeting on the 15th of this moon (18th August), we took occasion to repeat to your Excellency the above understanding, and were informed by your Excellency that when you had instructions from your Government to sign the Treaty, it would mean that the whole Treaty was accepted. We replied that, although your Excellency might be prepared to sign the whole Treaty, the same must be ratified by your Government, and your Excellency replied that your Government would regard the Treaty as a whole, which, if accepted, would be accepted in its entirety, or, if rejected, would be also in its entirety.
Begging that your Excellency will give us a reply, we have, &e,
(Signed)
LÜ. SHENG.
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Inclosure 3 in No. 1.
Sir J. Mackay to Chinese Commissioners.
442
Gentlemen,
Shanghae, August 19, 1902. IN reply to your Excellencies' letter of the 18th instant regarding the ratification of the Treaty as a whole, I have the honour to inform you that if the Treaty is signed by me I will undertake that His Majesty's Government, when they come to ratify it, shall either ratify it as a whole or reject it entirely.
(Translation.)
I have, &c.
(Signed) JAS. L. MACKAY.
Inclosure 4 in No. 1.
Chinese Commissioners to Sir J. Mackay.
Shunghue, August 25, 1902. WE have the honour to communicate herewith copy of a despatch we received from his Excellency Liu, Governor-General of the Liang Chiang and Superintendent of Southern Trade, on the 20th instant.
(Seal of Chinese Commissioners.)
His Excellency Liu to Chinese Commissioners.
On the 7th instant I received a despatch from you, transmitting the following communication from Sir James Mackay, His Britannic Majesty's Commissioner for Treaty Revision:-
"The various details of Article IV of the new Treaty dealing with the liability of Chinese and non-Chinese shareholders having been already settled between us, I wish now clearly to state, on behalf of His Majesty's Government, that, although they do not propose to cite the last section of the Article agreed upon, they reserve to themselves the right of at any time renewing diplomatic correspondence with regard to the Bank of China and Japan case and other cases similar thereto.”
You inclosed the English version and a copy of Article agreed upon, and requested me to look into the case and to state my objections. I would point out in reply that the main object of the Treaty, as negotiated, is to secure future advantages and to obviate the possibility of the interests of either country being prejudiced hereafter. The Article now drawn up can therefore only refer to subsequent matters, and no antecedent case which has formed subject of diplomatic correspondence can be held to come within its scope.
The case of the Bank of China and Japan and other similar cases referred to by Sir James Mackay have been before International Courts, and have nothing to do with the Commercial Treaty. Moreover, the Bank of China and Japan's suit has been adjudicated upon on the lines of the Judgment given by the United States' Courts, and cannot be reopened, because at present a Treaty happens to be in course of negotiation. I have explained the situation by telegraph to the Wai-wu Pu and his Excellency the Governor-General of the Hukuang, and herewith communicate my views to you for your consideration,
(Translation.)
Inclosure 5 in No. 1.
Chinese Commissioners to Sir J. Mackay.
Shanghae, August 27, 1902. ON comparing the Chinese and English texts of Article IX, we find that the English version you have sent us states that "any mining concession granted after the publication of these new Rules shall be subject to their provisious." This is at
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