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Agreement respecting mining rights within 30 li of Kiaochow-Chinan Railway, and has nothing to do with international politics. The functions of the Company are confined to the working of mines.
2. In spite of the Company having considerably exceeded the period sanctioned by the Wai-wu Pu for prospecting, as a special arrangement two years more shall be allowed from the date of the signature of this Agreement for further investigation. No workings shall be commenced until a mining permit has been applied for and issued. If no application for a mining permit has been made within two years, the prospecting rights of the Company shall determine, and the land revert to Chinese control. If a Chinese applies within the two years to work any part of the five mining localities assigned to the Company which the Company is not actually prospecting at the time, and the Company does not within two months declare that it requires that part for mining purposes, the Company shall cease to have any rights over that part.
3. From the five places conceded to the Company for prospecting purposes, they are to select, within the two years allowed, seven areas not exceeding 30 square li each for mining operations. After taking out mining permits, mining operations must be begun within six months, under penalty of annulment of the permit. If the Company wishes to sell any of its mining lands, Chinese must have the first offer and Germans the second.
4. Any public business of the Company, or any contracts they may niake for leasing land or houses or hiring labour, must be done through the Mining Bureau. It must hold land on lease only, not by absolute purchase, the lessor being the State when there is no other landlord. No compulsion is to be exercised in obtaining leases.
5. The Company's Articles of Association and Prospectus are to be forwarded through the Mining Bureau to the Wai-wu Pu and Board of Commerce, and the Chinese Government shall have power to alter anything contrary to Treaty or other- wise illegal in them. Chinese and Germans are to have equal rights and advantages in respect of purchasing or owning shares, and a Chinese director is to be appointed when 100,000 marks of shares have been taken up by Chinese.
6. A fee of 100 taels is to be made on mining permits for areas not exceeding 10 square li, and an additional 10 taels on every additional square i up to 30 square lì. Land tax to be paid by the proprietor. Export taxes according to the Tariff, and a tax on output according to the Regulations to be paid by the Company, payment of which will exempt the products of the Company's mines from li-kin when being transported to the port of shipment.
7. The Company is to exercise the greatest care to prevent its operations causing damage to the property in the neighbourhood, and is to pay liberal compensation for any damage or loss of life. A hospital is to be established in the neighbourhood of each mine, where Chinese labourers may be attended at the cost of the Company. Payment is to be made to the families of any who may die.
8. In any matters not provided for in this Agreement, the Company is to observe the Provisional Mining Regulations of Kuang Hsü 32 (1906) pending the promulgation of the new Regulations. All negotiations previously in progress are annulled by the signature of this Agreement.
The above Agreement has been sanctioned by the Wai-wu Pu and the Board of Commerce, and will take effect from the date of signature. The Chinese text is authoritative.
[This Document is the Property of His Britannic Majesty's Government.]
AFFAIRS OF CHINA.
CONFIDENTIAL.
[4111]
Sir,
C.O.
6761
[February 5.]
IREC
(Recs 25 E 09
SECTION 1.
No. 1.
Sir Edward Grey to the Marquis de Soveral.
Foreign Office, February 5, 1909. WITH reference to my note of the 20th ultimo, I have the honour to inform you that a telegram has been received from His Majesty's Minister at Peking respecting the difficulties which have arisen recently between Portugal and China at Macao.
Sir J. Jordan was informed on the 31st ultimo by the Wai-wu Pu that they were telegraphing that day to the Chinese Minister at Lisbon their acceptance of the Portuguese proposals, as reported by the latter, and the nomination of Kao-erh-chien, Commissioner for Foreign Affairs in Yunnan, as Chinese High Commissioner.
It appears that Kao-erh-chion, who is known to Sir J. Jordan personally, was formerly a Councillor in the Wai-wu Pu, and has had considerable experience in dealing with French frontier questions in Yünnan. He speaks French, and has a button of the first grade, and holds a post which ranks with, but after, that of Provincial Judge.
Considering the limited number of high officials qualified for such work, the appointment seems to Sir J. Jordan to be a good one.
The Wai-wu Pu stated that the Viceroy of Canton wanted the appointment of a member of the Canton Government as Second Commissioner, but, remembering what Sir J. Jordan had urged about the elimination of local influence, they had rejected the proposal.
[2155 e-1]
I have, &c.
(Signed)
GREY.
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