Directory_and_Chronicle_1928 — Page 191

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TREATY OF PEACE BETWEEN CHINA AND GERMANY

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to pay in advance a portion thereof in a lump sum, which represents the equvialent of one-half of the proceeds from the liquidated German property and one-half of the values of the sequestrated but not yet liquidated German property, which amount will eventually be agreed upon and which will consist of $4,000,000 in cash and the balance in Tsin-Pu and Hu-Kuang railway bonds.

(3.) Chinese property in Germany. The movable and immovable properties of Chinese residents of Germany will be returned at the ratification of the agree-

ment.

(4.) Chinese students in Germany will be returned at the ratification of the agreement.

(5.) Chinese students in Germany. In regard to the Chinese students in Ger-

many the German Government will be pleased to assist them with its best efforts in securing admission to schools or acquiring practical experience.

Queries Answered

As to the queries addressed by Your Excellency, I have the honour to reply as follows:

(1.) The security to be given in future to the property of Chinese or German residents. The Chinese Government promises to give full protection to the peaceful undertkings of Germans in China and agrees not to further sequestrate their pro. perties except in accordance with the generally recognized principles of international law and the provisions of the laws of China, provided that the German Government will treat the Chinese residents in Germany in like manner.

(2.) Judicial guarantee. Lawsuits of Germans in China shall be tried in the modern courts according to the modern codes, with the right of appeal, and in accordance with the regular legal procedure. During the period of litigation the assistance of German lawyers and interpreters, who have been duly recognized by the court, is permitted.

(3.) In regard to the lawsuits in the Mixed Court in which Germans are in- volved either as one or both parties, the Chinese Government will in the future try to find a solution so as to insure justice and fairness to all parties concerned.

(4.) China's Trading with the Enemy Act. All the laws and regulations con- cerning trade with the enemy will lose their effect from the day of the ratification of the treaty. All German trade-marks which had been registered at the Customs House will recover their validity if they are registered again, after the ratification of the Agreement, at the Customs House by their owners. Prior to the general ap- plication of the national tariff in China, the imports of Germans may pay the Customs duties according to the tariff rate in general use.

(5.) The liquidation of Sino-German indebtedness.

The Chinese Govern- ment has no intention to join the Clearing House system, as provided for in Article 296 of the Versailles Treaty. Furthermore, the Chinese Government, in considera- tion of the fact that Germany undertakes, as stated above, to pay a lump sum as a portion of the indemnity for war losses sustained by the Chinese Government, agrees to effectually cease, at the signature of the Agreement, all liquidation of Ger- man properties, and on receipt of the aforesaid indemnity and after the ratification of the Agreement agrees to return to German owners all the proceeds from the liquidation of German property and all the German property still under sequestra- tion. The aforesaid procedure shall be considered as a settlement of all the matters concerning the liquidation, sequestration or control of German property as stated in the second sentence of Article 133 of the Versailles Treaty.

As to the Deutsch-Asiatische Bank and the Ching-Hsin Mining Corporation, -the Chinese authorities concerned will discuss methods of settlement with the Bank and the Corporation themselves; the unliquidated premises of the said bank in Peking and Hankow will, however, be returned to the original owner in accordance with the procedure stated above.

(Signed) W. W. YEN.