158
This Document is the Property of His Britannic Majesty's Government j
CHINA RAILWAYS.
CONFIDENTIAL.
[44931]
No. 1.
3230 [December 24.]
SECTION 2.
228
1.09
Sir J. Jordan to Sir Edward Grey.-(Received December 24.)
(No. 538. Confidential.) Sir,
Peking, November 28, 1908. IT was stipulated in the Agreement between China and Japan respecting railways in Manchuria, the text of which was forwarded to you in my despatch No. 185 of the 16th April, 1907, that a supplementary Agreement should be drawn up within six months dealing with points not included in that instrument.
This supplementary Agreement was signed at Peking on the 12th instant, and
I have the honour to inclose a copy of it herewith.
In accordance with the Memorandum which formed Inclosure I in Sir C. MacDonald's despatch No. 72, Very Confidential, of the 10th April, 1906, the Chinese Government, it will be remembered, agreed to borrow from Japan one-half of the capital required for the construction of a railway between Chiang Ch'un and Kirin, and one-half of the amount needed for the reconstruction of the section of the Hsinmintun-Mukden line east of the Liao River.
This understanding was confirmed and amplified by the Agreement of the 15th April, 1907, and by the present Contract China undertakes to borrow 2,150,000 yen (say, 238,8881) for the former line, and 320,000 yen (say, 35,5551) for the latter. The issue price is 93 and the interest 5 per cent, per annum,
As originally stipulated, the Agreement, in the case of the Chang Chun-Kirin Railway, follows the lines of the Chinese Northern Railway Company's loan contract, in so much as the Chief Engineer and Accountant are both to be Japanese subjects appointed in consultation with the South Manchuria Railway Company.
The arrangement with regard to the section of the Peking-Mukden Railway east of the Liao, which was also, as originally stipulated, to have been modelled upon
the loan contract of the Northern Railway, has been modified to meet existing conditions. This section has been worked for some time past practically as a part of the Northern Railway system, and Japanese control has been purely nominal. This is now recognized by the present Agreement, which constitutes a Japanese engineer in the employment of the Northern Railway as Engineer-in-chief and dispenses with the services of a Japanese Accountant on condition that arrangements shall be made for making monthly payments of the amount due for the service of the loan.
A further detailed Agreement regarding the loan is to be negotiated at Mukden between the South Manchuria Railway Company and an officer deputed by the Board of Communications in Peking.
I have, &c. (Signed)
J. N. JORDAN.
Inclosure in No. 1.
Supplementary Agreement between China and Japan, dated November 12, 1908.
(Translation.)
BY the 4th Article of the Convention between the Japanese and Chinese Govern- ments with reference to the Hsinmiutun-Mukden and Kirin-Ch'ang Ch'un Railways, which was concluded on the 15th April, 1907, it was provided that the two Powers concerned should enter into a Loan Agreement respecting the above two lines; but the Japanese and Chinese Governments proposing, prior to the conclusion of the aforesaid Loan Agreement, to negotiate a supplementary Convention dealing with points not included in the original instrument, the undersigned, having been appointed by their respective Governments, have now concluded the following Articles :-
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