CO129-337 - Public Offices & Foreign Office - 1906 — Page 351

We have the honour to state, in reply, that the Mining Regulations, as dragers to work mines in the interior before drawing up her Mining Regulations, up by the Viceroy of the Hukuang Provinces, Chang Chih-tung, were laid before Throne, and by Imperial Rescript referred for consideration to this Board and Board of Commerce.

it is now, of course, undesirable to put a complete stop to their so doing. But the tracts which have been concluded in the past constantly contain provisions which The Regulations in question are extremely complicated, and we have nota, or embarrass the internal administration. The Commercial Treaties into which judicially affect the interests of Chinese subjects, or encroach on the sovereignty of laid our views thereon before the Throne. When this has been done we will send ina has now entered with various foreign Powers all contain a clause on mining copy of the Regulations for your perusal.

Inclosure 3 in No. 1.

We avail, &c.

tters to the following intent :-

China agrees to invite foreign as well as Chinese capital to embark in mining terprises, and will permit foreigners of all nationalities to develop mining property, hvided they comply with the regulations drawn up by China relating to mining airs; but these regulations must not place (foreign) mining capitalists at a greater advantage than they would be under generally accepted foreign regulations. cordingly, it is only obligatory that the regulations which are to be decided on,

Memorial of the Hukuang Viceroy, Chang Chih-tung, submitting the Mining Regulation ether in relation to new or old enterprises, shall secure foreign capitalists from

(Translation.)

to the Throne,

("Universal Gazette," January 28, 1906.)

ing placed at any disadvantage. On the other hand, steps must be taken to secure interests of Chinese subjects, the sovereignty of China, and the local administration, d to draft the regulations in the best manner so as to remedy the mistakes that have en made. Too much complaisance must not be shown to the desires of others, so as result in the abandonment of China's inexhaustible resources.

A respectful Memorial, in pursuance of Imperial Decree, submitting for consideration of your Majesties a copy of the proposed Mining Regulations for Chir What China is rich in is her mineral resources; what she lacks is capital.

In August 1902 the following Imperial Decree was received :-

ere is, therefore, no objection to China availing herself of the money of wealthy "Mining affairs are one of the important questions which are now awaiting eigners. If foreign capital is required, prospects of gain must be held out; but the attention of the Government. We have recently received a telegraphic Memoigner must not be permitted to solely enjoy that gain. This would be the most from Liu Kun-yi and Chang Chib-tuug reporting that they are making select table and satisfactory arrangement. The regulations which have been decided on, from the mining regulations of foreign countries, and with the most careful deliberefore, clearly state that foreigners of all nationalities are permitted to develop tion deciding on satisfactory regulations. Their purpose is very proper, and therming property, provided they comply with Chinese laws; and, again, foreigners not let the two Viceroys make careful selection from the conditions under which in partnership with Chinese are not permitted to engage separately in mining affairs are managed in foreign countries, jointly decide on satisfactory regulations, terprises. Partnerships are formed in the following manner snhuit them to us for the issue of a Decree. It is our earnest desire that, with a Irrespectively whether the land is private or public property, or whether the

to safeguarding rights and manifesting the importance of mining affairs, no irrepitalists are Chinese or foreigners, the land-owner contributes the mining land as his larities will mar the general observance of these regulations. Respect this."

are of the partnership, and the promoter his capital as his share. In mines coming Lau K'un-yi afterwards died of illness. Your servant thereupon proceeded der Class (A), which includes all abundant and important mineral deposits, the select and depute a number of Chinese and foreign officials, and caused copies of d-owner and capitalist take an equal number of shares in the partnership, and Mining Regulations of Great Britain, the United States, Germany, France, Belgier deducting the working expenses, which are taken by the capitalist himself, the and Spain to be purchased and translations carefully made. These were forwarded profits are divided equally between the partners. In regard to mines coming the winter of 1903-1904 to the Board of Foreign Affairs, by whom they were hander Class (B), which includes less valuable and profitable deposits, in order to mark to the Vice-President, Wu Ting-fang. He took them into consideration and couple distinction, the number of shares taken in the partnership by the land is only a set of proposed Mining Regulations for China, the draft of which was forwardede-tenths of the whole. As an actual example of partnership of land and capital on him to Hupei in December 1904. These Regulations, however, though complete al terms, a pattern on which other enterprises may be modelled, there are the regard to fundamental principles, seemed to border on excess of conciseness, and mines at Lin-ch'eug-hsien, in Chihli. Bond fide Chinese capitalists may very restriction of the extent of mining areas to 30 square li to err on the side of liberal nudertake the financial share in mining concerns, and enter into agreements with

I therefore also handed them to the British Mining Engineer, Mr. Broad, at Shand-owners for joint exploitation. Those whose capital is insufficient for them to for amplification, and when his draft was ready I further deputed several of ploit a mine singly are also permitted to supplement it from foreign sources, and together with some students who had completed a course of education in public insert a special provision by which the foreign capitalist accords favourable in Japan, to carefully revise them with the aid of selections from the Mining Reatment. These arrangements are all made in detail in the regulations. tions of Japan. I then again reviewed them myself: for it was essential, in onkr It is my firm opinion that very little success may be looked for if the limited prevent irregularities and safeguard rights, that every one of these regulations wital and rude methods of China are alone relied on to develop enterprises requiring was the least unsuited to the conditions existing in China should be thorougreat an outlay and so profound a knowledge as mines. But the partnership of digested and deliberated before being decided on. The Mining Regulations for Ca are humbly presented herewith in two volumes one containing the Principal tions in seventy-four clauses, the other the Supplementary Regulations in seventy-

clauses.

owner of the mines with the foreign capitalist, in which the land-owner and the noter each enjoy a share in the profits, is a most simple and equitable arrangement; the foreign capitalist, of course, suffers no loss, because the land takes no share in partnership nor in the profits until all the working expenses are deducted and e remains a net profit over.

consider that the Mining Regulations for China now being decided on, which city grant foreigners permission to open mines in the interior, are in every way lenient than the generally accepted regulations of foreign countries, and, over, the rules regarding the extent of mining areas, the ground rents, and allies on output are altogether more moderate. It is evident that China attaches portauce to her sovereignty and not to gain so as to make foreigners willing to act accordance with her methods and to observe her laws. Moreover, in all cases, both and people enjoy the profits: in first-class mines the State and people take equal

It is a general practice in foreign countries in dealing with land to make distinction between the surface and the subsoil; the powers of private owners of is are restricted to the surface, The subsoil is wholly the property of the State; therefore, though mining property is developed on private lines by natives of country, yet the authority to sanction or disallow such enterprises rests wholly the State. In regard to metallic ores, beds containing precious stones and of valuable and important mineral deposits, the rule that official authorization mas obtained is even more strict. As for mines being worked by foreigners, that absolutely forbidden; and if foreigners embark capital in Mining Companies, direction of such concerns rests in the native shareholders, who must be ines in the net profits; in second-class mines the profits are all given to the people. majority. Japanese law on this subject is even more strict, for by their regal this it is evident that the administration of the Holy Dynasty excels in foreigners are not permitted to invest in mining concerns. China alone has alionerosity and benevolence those of all the countries of the world, and that the

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