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called the two coal mines); but as long as the daily output does not exceed 3,500 tons (said tons to be British tons), the said value shall be taken as one Kuping tael per ton, and when the output exceeds that amount the value shall be taken as one gold yen Japanese currency per ton.
2. The company further agrees on export from a seaport to pay to the Chinese maritime customs an export tax of one-tenth of a Haikuan tael, or 1 mace per ton.
The export tax on coal sent by land route to Corea or to Russia will be the subject of a future agreement.
3. The provisions of the above two clauses regarding taxation will be applied to coal extracted from the mines after the date of the signature of the Peking treaty regarding Manchurian affairs, that is, after the 4th September, 1909. The company will therefore pay the 5 per cent. tax on output on coal extracted after this date, and the amount of excess paid by them as export duty which has hitherto been reckoned at 2 mace per ton will be refunded to them by the Chinese Government,
In future the output tax will be payable each year in four instalments in the first, fourth, seventh, and tenth months, Japanese calendar, on each occasion, the amount of tax due for the preceding three months being handed to a deputy appointed by the Chinese Government.
The export tax will be paid monthly, the amount due for the previous month being handed over as soon as possible to the local Chinese maritime customs.
4. Coal from the two mines if shipped on war or merchant vessels and intended for consumption on such vessels will be treated on export in accordance with the customs regulations.
5. Coal intended for the use of the company will not pay the output tax, the amount of such coal being limited to 700 tons daily.
6. With the exception of the taxes specified in clauses Nos. 1 and 2 of this agree- ment, no further taxation of any kind, either in the shape of interior dues, tonnage dues, li-kin, or miscellaneous levies is to be exacted from the company, and if, here- after, more favourable conditions are granted to coal mines in other places, the In consideration of the remission of the company will receive similar treatment.
taxation above mentioned the company will pay to the Chinese Government an anuual contribution of 50,000 Japanese gold yen, which will be payable in four instalments in the manner set forth in clause 3, section 2. The Chinese authorities will notify the local officials of every province of the remission of the above-mentioned taxation.
7. The limits of the mines are as set out in the annexed plan, which has been
drawn up after a joint survey by the deputies of the two countries.
8. Within the limits of the two mines no permits to work mines will be granted to any person with the exception of the company, and any permits already granted will be cancelled immediately.
9. Within the limits of the two mines, should there be any persons working or proposing to work mines, such persons having been granted permits for such purpose, the Chinese authorities will, on the notification of the company, take steps to effectively restrain them.
10. As regards the engagement of workmen either for the mines or for the transport of the coal, the Chinese Government agrees to render the company all possible assistance.
11. Should the company desire to acquire private property for mining purposes, or should they propose to extend the railway, the company will inform the Chinese authorities, and, after joint consultation, the matter will be decided.
In the event of the company ceasing to work a mine, the land used for the working will be given back to the Chinese Government.
12. Should there he graves or houses on land required by the company for mining purposes the company will bear the expenses of removal, the price to be arranged in friendly consultation with the owners. In cases of this sort if damage is caused, the company should pay reasonable compensation.
13. The company must of course make satisfactory arrangements for the control of the miners and also for their safety.
14. This detailed agreement will remain in force for sixty years from date of signature. Should by that time the coal prove not to have been exhausted, the term may be extended.
* Not reproduced.
The above agreement has been signed in quadruplicate both in Chinese and Japanese, one copy of both texts to be held by the respective Governments, one by the Viceroy of the three Eastern provinces and one by the South Manchurian Railway Company.
May 12, 1911.
Signed by-
HAN KUO-CHUN, Commissioner of Foreign Affairs,
Fengtien Province.
CHI TŽU-YING, Expectant Taotui, C. KOIKÉ, Consul-General for Japan.
-, Manager of the Fushun Colliery.
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