Minister Rockhill to the Secretary of State.
Peking, October 6, 1906.
Sir: Under the general provisions of Article II of the treaty of December 22, 1905, between China and Japan, a joint stock company composed of Chinese and Japanese capitalists was to be organized for the exploitation of the Manchurian railways which had been ceded by Russia to Japan.
A Japanese imperial ordinance (No. 142, June 7, 1906) sanctioned the organization of the South Manchurian Railway Joint Stock Company, and Article III provided that shares of the company “shall all be registered and may be owned only by the Japanese and Chinese governments or by subjects of Japan and China.”
Under the terms of Article V of the article of incorporation of this company, which fixed the amount of the first subscription of shares at 20,000,000 yen, the Chinese Government was duly asked to subscribe, and was informed that the subscription closed on the 5th of October (yesterday). I am informed that the Chinese Government has not taken any portion, however small, of the shares offered it, nor have the Chinese subjects subscribed, so far as I can learn.
[Page 225]Article X of the additional agreement between China and Japan of December 22, 1905, provided for a joint stock company of forestry, of Chinese and Japanese capitalists, for the exploitation of the forests in the region on the right bank of the river Yalu.
This company has been duly organized by Japan, and the Chinese Government asked to participate.
At Antung, although the maritime customs has organized a staff for the service of that port, it seems more than likely that nothing will be done by China to open it until after the complete evacuation of Manchuria by Japan in April of next year.
I have, etc.,