Directory_and_Chronicle_1932 — Page 89

TREATY FOR THE SETTLEMENT OF OUTSTANDING QUESTIONS RELATIVE TO SHANTUNG

AGREED TERMS OF UNDERSTANDING RECORDED IN THE MINUTES OF THE JAPANESE AND CHINESE DELEGATIONS CONCERNING

THE CONCLUSION OF THE TREATY FOR THE SETTLEMENT OF OUTSTANDING QUESTIONS RELATIVE TO SHANTUNG

Transfer of Public Properties

I.-Japanese subjects will be permitted, subject to the provision of Chinese law, to become members or shareholders of any of the commercial companies to be formed with respect to public enterprises mentioned in Paragraph 4 of Annex II. of the Treaty.

Withdrawal of Japanese Troops

II.-After the withdrawal of the Japanese troops provided for in Articles IX..to XI. of the Treaty, no Japanese military force of any kind will remain in any part of Shantung.

Tsingtao-Tsinanfu Railway

III.-All light railways constructed by Japan in Shantung and all properties appurtenant thereto shall be considered as part of the properties of Tsingtao- Tsinanfu Railway.

IV. The telegraph lines along the Railway shall also be considered as part of the Railway properties.

V. The Chinese authorities, upon taking over the Railway, shall have full power and discretion to retain or to remove the present employés of Japanese nationality in the service of the Railway. In replacing such employés, reasonable notice shall be given before the date of the transfer of the Railway. Detailed arrangements regarding the replacements to take effect immediately on the transfer of the Railway are to be made by the Joint Railway Commission provided for in Article XVI. of the Treaty.

VI.-The entire subordinate staff of the Japanese Traffic Manager and the Japanese Chief Accountant of the Railway is to be appointed by the Chinese Managing-Director. After two years and a half from the date of the transfer of the Railway, the Chinese Government may appoint an Assistant Traffic Manager of Chinese nationality for the period of two years and a half, and such Chinese Assistant Traffic Manager may likewise be appointed at any time upon notice being given for the redemption of the Treasury Notes under Article XVIII. of the Treaty.

VII.-The Chinese Government is under no obligation to appoint Japanese subjects as members of the subordinate staff above mentioned.

VIII. The redemption of the Treasury Notes under Article XVIII. of the Treaty will not be effected with funds raised from any source other than Chinese.

IX. The Chinese Government will ask the Japanese Government for such information as may be useful in making the selection of the Japanese Traffic Accountant of the Railway.