Directory_and_Chronicle_1928 — Page 217

THE TRANSFER OF SHANTUNG

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(1.) Japan shall, within a period of fifteen years beginning from the twelfth year of the Chinese Republic, purchase annually Tsingtao salt between the maximun amount of 350,000,000 catties and the minimum amount of 100,000,000 catties. But upon expiration of the above-mentioned period further arrangement may be made.

(2.) The Government of China agrees to apply regulations for the inspection of the quality of salt promulgated January of the 10th year of Taisho to the Tsingtao salt purchased by Japan. But in case of the necessity for change, further arrangement may be made.

(3.) The place for delivery of salt shall be the wharves of Munji or other places designated by the Japanese responsible authorities. But, in case of exportation of salt to other place than Munji, the difference of similar reight charge for salt exported from other quarters shall be given (the difference between Munji and the place to be designated).

(4.) The detailed arrangements for the purchase of salt by Japan as stated above shall be agreed upon by the Chinese and Japanese responsible authorities.

SECTION VII.-Compensation for Public Properties and Salt Industries

Art. XVIII.-The Government of China agrees, in accordance with Article VI. on the compensation for public properties to be transferred and Article XXV. on the compensation for the Japanese salt industries along the shore of Kiaochow Bay of the Treaty for the Settlement of Outstanding Questions Relative to Shantung, to deliver to the Government of Japan Y. 16,000,000.

Two million yen of the above-mentioned amount shall be paid in cash within one month after transfer of public properties and salt industries.

Art. XIX.-The Government of China agrees in payment for the above-men- tioned Y. 14,000,000 to deliver to Japan treasury notes upon the complete transfer of public properties and salt industries.

Art. XX.-The conditions for the above-mentioned treasury notes are as follows::

(1.) The total value of Chinese treasury notes shall be 14,000,000 yen. (2.) The Chinese treasury notes shall bear an annual interest of 6 per cent. (3.) These notes shall be redeemed within a period of fifteen years.

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principal is to be paid on the first year. Begiuning from the second year, a sum to the amount of Y. 500,000 shall be paid two times a year on the date of payment of interest, but at any time after the second year upon three months' notice all the treasury notes may be redeemed. (4.) Besides the surplus to the Customs revenue and Salt Gabelle which will serve as securities for these treasury notes the Chinese Government shall give consideration to select other kind of reliable securities and reach an agreement with the Japanese Minister at Peking at an early date. The Government of China agrees to give priority to such treasury notes upon re-organization of the Chinese foreign loans.

(5.) If the above-mentioned securities are not sufficient to meet the principal or interest of the treasury notes the Chinese Government agrees to pay through other kind of sources.

(6.) Interest of the Chinese treasury notes shall be paid twice a year begin-

ning from the day of the delivery of such notes.

(7.) The place for the redemption of principal or interest of these treasury notes is decided to be at Tokyo and to be managed through the Yokohama Specie Bank, but if the place for delivery of payments or the name of banks should be changed for the convenience of the Japanese Govern ment, it must be arranged with the Chinese Government.

(8.) The Government of China shall free the treasury notes and coupons as well as the redemptions of the principal or interest of the said treasury notes from all taxes or duties.

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