File No. 6625/10–11.
File No. 6625/10–11.
[Inclosure.—Translation.]
[Official Gazette, May 4, 1907.]
Department of Foreign
Affairs—Notification No. 8.
The following agreement relating to the Simmintun-Mukden and the
Kirin-Changchun railways was signed on the 15th ultimo by the envoy
extraordinary and minister plenipotentiary of Japan to China and the
Chinese ministers for foreign affairs.
Viscount Tadasu
Hayashi,
Minister for Foreign
Affairs.
May 4, 1907.
Gonsuke Hayashi, envoy extraordinary and minister plenipotentiary of
Japan to China, and Na Tung, Chun Hungchi, Tuan Chai-kwei, ministers
of foreign affairs of China, being duly authorized by their
respective Governments, have agreed upon the following articles:
Article 1.
In connection with the purchasing of the railway constructed by Japan
between Simmin-fu (Simmintun) and Fengtien-fu (Mukden), the Chinese
Government shall pay 1,660,000 yen in Japanese currency, which is
the price mutually agreed upon, to the Yokohama Specie Bank at
Tientsin. The Chinese Government agrees to reconstruct and maintain
the said railway on its own account and to borrow one-half of the
funds required for the line east of “the Liao River from the South
Manchurian Railway Company.
Article 2.
In connection with the construction on its own account of the railway
from Kirin-fu (Kirin) to Changchun-fu (Changchun), the Chinese
Government further agrees to borrow one-half of the funds required
for the purpose from the South Manchurian Railway Company.
Article 3.
The terms of the loans mentioned in articles 1 and 2 shall be
determined according to the terms of the loans of the railways in
and out of Shanghaikwan, except the provisions for the periods of
redemption. The following are the principal points: All the
regulations relating to the conduct of the general affairs of the
railways shall be determined on the basis of the present regulations
of the bureau of railways in and out of Shanghaikwan.
(a) The periods of redemption shall be
eighteen years with respect to the loan for the portion of the
Simmintun-Mukden Railway east of the Liao River, and twenty-five
years with respect to the loan for the Kirin-Changchun Railway.
Prior to the expiration of the periods referred to the whole of both
loans shall remain unredeemed.
(b) The property and receipts of the portion
of the Simmintun-Mukden Railway east of the Liao River shall be
offered as security for the South Manchurian Railway Company’s loan
on behalf of the said line.
The property and receipts of the Kirin-Changchun Railway shall be
offered as security both for future contracts of the Kirin-Changchun
Railway bureau and for the South Manchurian Railway Company’s
loan.
Prior to the redemption of the loans the Chinese Government shall not
offer the property and receipts of the above-mentioned railways as
security for any other loan.
During the periods of the loans the Chinese Government shall maintain
in good condition the premises, workshops, rolling stock, land,
movables, etc., of the railway east of the Liao River and the
Kirin-Changchun Railway, and shall endeavor to replenish the rolling
stock from time to time in order to meet the requirements of
traffic. Should in future branch lines of the Kirin-Changchun
Railway be constructed or the same railway be extended, the Chinese
Government shall undertake the construction on its own account. In
case there is a [Page 778] lack of
funds an application shall be made to the companya for a
loan. In case the Chinese Government should construct any other
railways on its own account, it shall not be necessary to consult
with the South Manchurian Railway Company.
(c) The Chinese Government guarantees the
payment of the principal and interest of the loans. In case of
failure to fulfill the stipulations on the date set for payment of
the principal and interest the Chinese Government shall, on receipt
of a notification from the company, pay the required sum. In the
event of the Chinese Government failing to pay the principal and
interest in arrears after receiving the said notification, the
railways mentioned above and the whole of their properties shall be
held and maintained by the company until the said principal and
interest shall have been paid. If, however, the amount of principal
and interest in arrears is small, a grace not exceeding three months
may be granted.
(d) During the periods of the loans a Japanese
shall be engaged as chief engineer. Should the number of Chinese be
insufficient for the conduct of the railway business, Japanese shall
be engaged. The change of the chief engineer, if necessary, shall be
effected upon consultation with the company. Besides this, an
experienced Japanese shall be engaged as railway accountant. He
shall have full responsibility for the arrangement and
superintendence of all departments of the railway accounts. The
business of superintending the railway finances shall be transacted
in consultation with the (Chinese) director-general of railways.
(e) Since the railways mentioned above are
public highways of the Chinese Government, troops and provisions
belonging to the Chinese Government in time of war or famine shall
be transported free of charge.
(f) All the receipts of the railways mentioned
above shall be deposited with Japanese banks. The method of paying
in the deposits shall be determined on the occasion of concluding
the loan contracts.
Article 4.
The Chinese Government shall, after the purchase of the existing
Simmintun-Mukden Railway, conclude, as soon as possible, the
contract with the South Manchurian Railway Company relating to the
loan for the railway east of the Liao River. In order to estimate
the expenditure required for the Kirin-Changchun Railway, the
Chinese Government shall dispatch Chinese engineers and cause them
to survey the route in cooperation with Japanese engineers. Within
six months after the conclusions of the said survey the loan
contract shall be concluded with the company.
Article 5.
Both the Simmintun-Mukden and the Kirin-Changchun railways, which are
to be constructed and maintained by China, shall be connected with
the South Manchurian Railway. All the regulations relating to this
matter shall be determined by commissioners to be appointed by the
Tientsin-Linyu (Shanhaikwan) railway bureau and the South Manchurian
Railway Company.
Article 6.
The actual proceeds of the loans mentioned in articles 1 and 2 shall
be equitably determined on the basis of the latest loan contract
concluded by China with a third country.
Article 7.
The Simmintun-Mukden Railway shall be handed over to the
commissioners of the Chinese railway bureau within one month after
the payment of the price.
(Signed)
Gonsuke
Hayashi.
(Signed)
Na Tung.
(Signed)
Chun Hung-chi.
(Signed)
Tuan Chai-kwei.
Fifteenth
day of the fourth month of the fortieth year of
Meiji.
Third day of the third month of the twenty-third
year of Kuang-hsu (April 15, 1907).