[This Document is the Property of His Britannic Majesty's Governmen190
(Translation.)
2
Enclosure in No. 1.
Imperial Decrees issued on December 4, 1910.
(1.)
IN the establishment of a State the importance of the navy and of the army are equally weighty.
Formerly, as part of the measures for the regulation of official spheres, an Imperial decree was promulgated by the late reign that, prior to the establishment of the Navy Board, the management of naval affairs should devolve temporarily on the Army Board. A subsequent decree appointed Tsai Hsun and Sa Chen-ping to serve as High Commissioners for the organisation of the affairs of the navy. Again a commission, headed by Tsai Hsün, was appointed to proceed to various countries to investigate minutely their organisations. Step by step a scheme has been evolved.
A memorial has now been submitted for our perusal, drawn up by Tsai Hsün's commission, in collaboration with the Prince and High Commissioners of the Constitutional Government Committee, suggesting the adoption of a graduated scheme fixing temporarily the spheres of the officials of the Navy Board.
This we have perused with especial care and found it completely satisfactory. A special board should therefore be established to give due weight to the responsibilities involved. We command that the council for the organisation of the navy be converted into the Navy Board, and we institute the offices of High Com- missioner and Assistant High Commissioner of the Navy. The holders of these offices must earnestly and energetically plan and aot to fulfil the sincere desire of the Throne for the reform of the machinery of war.
With regard to the affairs of the Sub-Department of the Navy, we command that
proper functions. these be managed temporarily by the Navy Board in addition to its
We command that the other recommendations be carried into effect.
(2.)
The Constitutional Government Committee, the general staff, and the Army Board have handed in a joint memorial for regulating a graduated scheme fixing temporarily the spheres of the officials of the Army Board.
The special province of the Army Board is the supreme control of the duties of military administration. All the proposals suggested we have found entirely satisfactory.
We command that the various posts of president, vice-presidents, and secretaries shall forthwith be abolished, and we substitute in their places the offices of High Commissioner and Assistant High Commissioner of the Army. At the present juncture, when the machinery of war is being reformed, the holders of these offices must not swerve from the duties laid on them, but strive after honest reform and gennine progress.
We command that the other recommendations be carried into effect.
[B]
CHINA
RAILWAYS.
CONFIDENTIAL.
[41073]
1168
[November 11.]
13 AN I
SECTION 1.
[AMENDED COPY.]
No. 1.
~~~(Communicated
Memorandum by Mr. W. D. Straight regarding Chinchou-Aigun Railroad.-
by Mr. Addis, November 11, 1910.)
THE preliminary agreement for the Chinchon-Aigun Railway was signed by their Excellencies the Viceroy of Manchuria and the Governor of Fengtien, on behalf of the Manchurian Administration, Mr. W. D. Straight, on behalf of the American group, and Lord ffrench, for Pauling and Co. (Limited), on the 2nd October, 1909. This agreement was ratified by Imperial edict on the 20th January, 1910, and the American Legation in Peking was formally notified of the fact and informed that the Viceroy of Manchuria had been instructed to negotiate a detailed agreement with the representative of the American group. The legation was requested to advise the representative of the American group that he should enter upon the negotiations for such an agreement.
On the 26th April, 1910, their Excellencies the Viceroy of Manchuria and the Governor of Fengtien transmitted to Mr. W. D. Straight, acting on behalf of the American group, the English and Chinese texts of the loan agreement for the Chinchou- Aigun Railway, stating that such agreement constituted "the final draft entered into and definitely fixed between the Viceroy of Manchuria and the Governor of Fengtien on the one part and the American group on the other part," and that "as soon as ever we, the Viceroy of Manchuria and the Governor of Fongtien, shall have memorialised the throne and obtained the Imperial assent thereto, the signatures shall thereupon be fixed and the agreement be made operative."
The loan agreement, transmitted as above stated, provided for a loan of not exceeding 40,000,000 dollars, United States currency, for the construction of a railway between Chinchou and Aigun and necessary branches, such loan to be issued in two series, the first of which shall be for 20,000,000 dollars.
The term of the loan is fixed at thirty years, and the bonds to bear interest at the rate of 5 per cent. per annum.
The loan constituted an obligation of the Imperial Chinese Government, and is secured by a first mortgage on the railroad and upon Manchurian salt taxes amounting to 4,000,000 taels per annum.
The other provisions of the loan agreement for the service and amortisation of the loan, &c., resemble former agreements concluded with China.
Article 19 of the loan agreement, as it at present stands, provides that the American group may, with the consent of the Imperial Chinese Government, admit to participation in this loan financial groups of other nations, such participation, however, not to exceed 40 per cent. of the whole.
In case the other parties to the interbank agreement, concluded the 10th November, 1910, desire to participate in this loan, the American group anticipates no difficulty in arranging with the Chinese Government that they shall share this loan equally with the American group, and that the final loan agreement may be amended
in this sense.
On the 26th April, 1910, the Viceroy also transmitted to Mr. Straight a letter which provided that the price at which the American group should purchase the bonds, ..., 95, must be confirmed upon the signature of the final loan agreement.
In a third letter the Manchurian administration requested the American group to recommend an American who should, during the currency of the loan, act as traffic manager of the railway, in order to ensure the efficient operation of the line. This letter provided also that the foreign employees of the railway should he exclusively selected from persons of American or British nationality. It is hoped that this restriction as to employees could be removed, making it possible for the Chinese to employ French and Germans as well.
In a letter dated the 30th April, 1910, the Manchurian administration agreed to
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