CO129-360 - Public Offices - 1909 — Page 284

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regarding Russian Manchurian stations, former Convention having terminated, although still acted upon. Dresing prepared to agree, and allow Russian railway stations like Japanese to accept and transmit viâ own lines, also other traffic than Russian and Siberian not marked via Chinese lines-rates to be same as China. He farther prepared reduce royalty.

Inclosure 2 in No. 1.

Eastern Extension Australasia and China Telegraph Company, Shanghae, to Head Office, London.

(Confidential.)

(Telegraphic.)

DRESING wires following :-

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Shanghae, December 16, 1908.

Russian Minister appears satisfied with basis of Japanese arrangement, and inclined let original Russian-Chinese Railway Convention remain in force, but will give definite reply in few days. France trying make China apply for new frontier Convention, but I have refused move in matter unless France in writing abandons cable extension clause.”

Inclosure 3 in No. 1.

Imperial Chinese Telegraphs, Shanghae, to Eastern Extension Telegraph Company,

(Private and Confidential.) Dear Sirs,

London,

Shanghae, November 24, 1908.

WE beg to inform you that an Agreement has been arrived at between the Chinese and Japanese Governments regarding the South Manchurian Railway telegraph stations and the Chefoo-Kwantung cable question. The arrangement made is almost entirely a domestic one, and does not, except on a very few points, affect the interests of the Cable Companies. As the Japanese Government from the very outset of the negotiations refused to discuss any question whatever if any third party, or even reference to any third party, was introduced, the Chinese Delegates on their side refused to negotiate on any point which had reference to or might affect in any material degree the existing Telegraph Conventions between China and other Powers or Companies. In order to arrive at a settlement of the various questions under discussion, it was found necessary to accede to the following Japanese terms :-

On the South Manchurian Railway, within the railway zone, the Japanese were allowed to deal with the telegraphic traffic at their own discretion, the argument on their side being that they could not allow any interference within territory leased to and under the jurisdiction and direct control of the Japanese Government, but Japan agreed-

1. To pay to China a small yearly royalty on such traffic;

2. To hand over to China traffic destined for China and beyond when directed viâ the Chinese lines; and

3. Not to establish competition with the Chinese lines except for traffic forwarded exclusively over the Japanese lines.

In order to regain control over the telegraph lines constructed and at present worked by Japan in Manchuria outside the railway zone, China agreed to lease a con- necting line to the railway from the following six Treaty ports in close proximity to the railway, viz, Antung, Newchwang, Liaoyang, Mukden, Tiehling, and Changchun, and at these towns to place a telegraph office at the Chinese telegraph building at the disposal of the Japanese for the exchange of traffic emanating from or destined to places under the direct control of the Japanese telegraph system, the reason of this being that at the above-mentioned six Treaty ports no separate Japanese Settlement exists within the railway zone, while quite a considerable colony of Japanese traders have settled in the Chinese city, and now for a very considerable time have relied on the Japanese telegraph lines to communicate with the mother-country at Japanese dome-tic rates.

With regard to the Chefoo-Kwantung cable, the arrangement is that the 7 miles of the cable nearest Chefoo will belong to China, while the rest of the cable will be owned and maintained by Japan (the actual landing point on the Kwantung coast, is as

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yet unsettled). The cable will at Chefoo be worked by China, and at the leased territory by Japan; but at certain specified times during the day the Japanese post- office at Chefoo, will be connected up direct to the Kwantung office, and the Chefoo (post-office is allowed to exchange terminal Chefoo Japanese Government traffic as well as terminal Chefoo traffic when written in Japanese Kana characters, and on such traffic Japan pays China a royalty of 10 per cent. of the total value of the said traffic. Japan has guaranteed to do everything possible to prevent retransmission at Chefoo. Japan has further undertaken not to land cables on the shores of China, not to construct telegraph or telephone lines, or establish wireless communication, within the Empire of China outside the Japanese leased or railway territory without first obtaining the sanction of the Chinese Government. The Chefoo-Kwantung cable cannot be used for any kind of Japanese traffic emanating from or destined to places outside China, with the exception of the above-mentioned Chefoo terminal traffic, that is to say, that the cable, as far as the Japanese telegraph system is concerned, can only, with the above exception, be used for traffic to Kwantung and the South Manchurian railway telegraphi stations, but in this connection it has been arranged that Japan, if approached by the parties interested, is willing to negotiate a special Convention by which it should be made possible to utilize the Chefoo-Kwantung-Sasebo cables for the exchange of Chinese-Japanese traffic.

The arrangement is that the South Manchurian Railway telegraph stations and the Japanese stations in the leased territory will be open for traffic in connection with the Chinese telegraph system and at the Chinese international and provincial rates (Kwantung being considered as Shengking), and that China will pay Japan a certain fee per word, but as the out-payment to Japan for messages passing over the Chefoo- Kwantung cable will be heavier than when the traffic is handed over in Manchuria, it is the intention, as far as possible, to send the traffic for Manchuria vià Tien-tsin, and only actual Kwantung traffic via the cable, except when traffic is ordered by the sender " viâ Chefoo-Kwantung." The arrangement will come into force as soon as it has been approved by the two Governments concerned, and we shall inform you of this at a later date, but the Chefoo-Kwantung cable is not likely to be laid for about three or four months, as the Japanese Government has to ask the Imperial Diet for the necessary

Yours faithfully, (Signed)

funds.

(Private and Confidential.)

Inclosure 4 in No. 1.

Telegraph Convention,

CHOW WAN PANG,

Vice Director-General.

THE Undersigned, respectively duly authorized by the Governments of Japan and China to adjust in a friendly manner and spirit of mutual accommodation the questions of the submarine telegraph cable between the Province of Kwantung and Chefoo, and the Japanese telegraph lines in Manchuria, have agreed as follows:-

ARTICLE 1.

A submarine cable will be laid by the Governments of Japan and China between a point in the Kwantung Province and Chefoo. Japan will lay and maintain the section of the submarine cable from Kwantung to within 74 miles of Chefoo, and China will lay and maintain the section of said cable from Chefoo to a point 7 miles from Chefoo. At said point the two sections of the cable shall be connected. The Kwantung end shall be worked entirely by Japan and the Chefoo end by China; but, in order to meet the special requirements of Japan, the cable shall be connected up direct to the Japanese post-office at Chefoo, during such sufficient time each working day as may be agreed upon, and such post-office shall have the right to transmit over the said cable from and to places under the direct control of the Japanese telegraph system terminal Chefoo-Japanese Government messages as well as private terminal Chefoo telegrams, providing these latter be written in Kana. Japan shall pay to China on such traffic a certain terminal fee to be agreed upon. The connecting line between the Chinese- Chefoo telegraph office and the Japanese post-office at Chefoo, will be constructed and maintained by China. Japan engages to do all in her power to prevent the re-

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