Directory_and_Chronicle_1929 — Page 277

RUSSO-JAPANESE CONVENTION

227

3. The Government of the Union of Soviet Socialist Republics agrees to grant to Japanese concerns recommended by the Government of Japan the concession for the exploitation of coal fields on the Western coast of Northern Saghalien over a specific area which shall be determined in the Concession Contracts. The Government of the Union of Soviet Socialist Republics further agrees to grant to such Japanese concerns the concession regarding coal fields in the Doue district over a specific area to be determined in the Concession Contracts. With regard to the coal fields outside the specific area mentioned in the preceding two paragraphs, it is also. agreed that should the Government of the Union of Soviet Socialist Republics decide to offer them for foreign concession, Japanese concerns shall be afforded equal opportunity in the matter of such concession.

4.-The period of the concessions for the exploitation of oil and coal fields. stipulated in the preceding paragraphs shall be from forty to fifty years.

5. As royalty for the said concessions, the Japanese concessionaires shall make over annually to the Government of the Union of Soviet Socialist Republics, in case of coal fields, from 5 to 8 per cent. of their gross output, and, in case of oil fields, from 5 to 15 per cent. of their gross output; provided that in the case of a gusher, the royalty may be raised up to 45 per cent. of its gross output.

The percentage of output thus to be made over as royalty shall be definitively fixed in the Concession Contracts and it may be graduated according to the scale of annual output in a manner to be defined in such contracts.

6. The said Japanese concerns shall be permitted to fell trees needed for purpose of the enterprises and to set up various undertakings with a view to facilitating communication and transportation of materials and products. Details connected therewith shall be arranged in the Concession Contracts.

7.-In consideration of the royalty above-mentioned and taking also into account the disadvantages under which the enterprises are to be placed by reason of the geographical position and other general conditions of the districts affected it is agreed that the importation and exportation of any articles, materials or products needed for and obtained from such enterprises shall be permitted free of duty, and that the enterprises shall not be subjected to any such taxation or restriction as may in fact render their remunerative working impossible.

8. The Government of the Union of Soviet Socialist Republics shall accord all reasonable protection and facilities to the said enterprises.

9.-Details connected with the foregoing Articles shall be arranged in the Concession Contracts.

The present Protocol is to be considered as ratified with the ratification of the Convention embodying Basic Rules of the Relations between Japan and the Union of Soviet Socialist Republics, signed under the same date.

In witness whereof the respective Plenipotentiaries have signed the present Protocol in duplicate in the English Language, and have affixed thereto their seals.

Done at Peking this Twentieth day of January, One Thousand Nine Hundred and Twenty-five.

[L.S.] K. Yoshizawa.

[L.S.]

L. KARAKHAN.

!

8*