176 EXCHANGE OF NOTES BETWEEN THE UNITED KINGDOM AND RUSSIA
has been agreed to record in the present additional note the arrangement arrived at with regard to the line Shanbaikuan-Newchwang, for the construction of which a loan has been already contracted by the Chinese Government with the Shanghai- Hongkong Bank, acting on behalf of the British and Chinese Corporation.
The general arrangement established by the above-mentioned notes is not to infringe in any way the rights acquired under the said Loan Contract, and the Chinese Government may appoint both an Euglish engineer and an European accountant to supervise the construction of the line in question, and the expenditure of the money appropriated to it.
But it remains understood that this fact cannot be taken as constituting a right of property or foreign control, and that the line in question is to remain a Chinese line, under the control of the Chinese Government, and cannot be mortgaged or alienated to a non-Chinese Company.
As regards the branch line from Siaoheichan to Sinminting, in addition to the aforesaid restrictions, it has been agreed that it is to be constructed by China her- self, who may permit European-not necessarily British-engineers to periodically inspect it, and to verify and certify that the work is being properly executed.
The present special Agreement is naturally not to interfere in any way with the right of the Russian Government to support, if it thinks fit, applications of Russian subjects or establishments for Concessions for railways, which, starting from the main Manchurian line in a south-westerly direction, would traverse the region in which the Chinese line terminating at Siuminting and Newchwang is to be constracted.
(Signed) CHARLES S. SCOTT.
St. Petersburg, April 28th, 1899.
No. 4
Count Mouravieff to Sir C. Scott
In order to complete the notes exchanged this day respecting the partition of spheres for Concessions for the construction and working of railways in China, it has been agreed to record in the present additional note the Agreement arrived at with regard to the line Shanghaikuan-Newchwang, for the construction of which a loan has been already contracted by the Chinese Government with the Shanghai-Hong- kong Bank, acting on behalf of the British and Chinese Corporation.
The general arrangement established by the above-mentioned notes is not to infringe in any way the rights acquired under the said Loan Contract, and the Chinese Government is at liberty to appoint both an English engineer and a European accountant to supervise the construction of the line in question and the expenditure of the money appropriated to it. But it remains well understood that this fact cannot be taken as constituting a right of property or foreign control, and that the line in question is to remain a Chinese line, subject to the control of the Chinese Government, and cannot be mortgaged or alienated to a non-Chinese Company.
As regards the branch line from Siaoheichan to Sinminting, in addition to the aforesaid restrictions, it has been agreed that it is to be constructel by China herself, who may permit European-not necessarily British-engineers to periodi- cally inspect it, and to verify and certify that the works are being properly executed.
The present special Agreement is naturally not to interfere in any way with the right of the Russian Government to support, if it thinks fit, applications of Russian subjects or establishments for Concessions for railways, which, starting from the main Manchurian line in a south-westerly direction, would traverse the region in which the Chinese line terminating at Sinminting and Newchwang is to be constructed.
The Undersigned, etc.
J
St. Petersburg, April 16 (28), 1899.
(Signed) Count MOURAVIEFF.
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