Papers Relating to the Foreign Relations of the United States, With the Annual Message of the President Transmitted to Congress December 8, 1908

File No. 2648/10–13.

Chargé Fletcher to the Secretary of State.

American Legation,
Peking, November 29, 1907.

No. 790.]

Sir: In continuation of my No. 767 of October 22 last, I have the honor to inclose two copies (translations) of the Revised Mining Regulations of China, which have been approved by the Throne and are Intended to be put into effect in March, 1908.

For the convenience of the department, I have prepared and forward herewith, in duplicate, a synopsis of these regulations.

The regulations are not framed in a liberal spirit and will, if put into operation in their present form, handicap, if not entirely prevent, the employment of foreign capital and foreign participation in the development of China’s mineral resources. The provisions of Article VII of our Treaty of October 8, 1903, do not seem to have been borne in mind in the preparation of the regulations and some of the articles, notably 10, 49, 50, 59, 60, 61, and 62, appear to be in direct contravention thereof and attempt to limit extraterritorial treaty rights. As the regulations are not intended to be put into effect until next March, there remains sufficient time to receive an expression of the department’s views with reference to them, and I have already acknowledged the receipt of Prince Ch’ing’s note with which they were transmitted.

The British minister has, however, addressed a note to Prince Ch’ing, copy of which I inclose, in which he states his objection to them and asks that they be revised in consultation with the other powers before being put into effect.

I am informed that the Russian minister has forwarded the regulations to St. Petersburg for instructions, but has meanwhile replied to Prince Ch’ing to the effect that he reserved all Russian rights under present treaties or agreements.

The French and German legations, I am told, have not yet concluded their translations, but will likely offer objections following the general lines of Sir John Jordan’s note.

The Japanese legation has as yet taken no action, the regulations, presumably, having been referred to Tokyo.

I have, etc.,

Henry P. Fletcher.

[Inclosure 1.]

Revised mining regulations.

1. The following new regulations are to be enforced from this date, and all existing ones previously in force are to be withdrawn and to become null and void.

2. The sole control of all mining affairs, all mining employees, issue of mining permits, either for prospecting or mining operations, or the employment of foreign engineers or prospectors is vested in the board of commerce and agriculture.

When cooperation with foreigners is desired by the Chinese, the nationality and experience of the foreign parties with the proposed location of the intended enterprise must be communicated to the Waiwu Pu before the permit can be issued by the board.

3. A head mining office must be opened in every Province of China, which must appoint officers to attend to each department of mining affairs. The directors must appoint deputies in the different departments and districts of the Province and the said deputies must be under the direct control of the head provincial office. All applications for the prospecting or opening of mines must be dealt with by them in strict accordance with the mining regulations.

4. The deputy or deputies appointed by the head office have power to decide all matters in connection with mining affairs, providing no matter prejudicial to the public peace is involved. Any matter out of the ordinary and involving confliction with other interests must be referred to the local authorities for consideration, and neither the director nor his deputy will have the right to give any decisions on such points. The deputies must in all cases be Chinese, but they may if they desire engage either foreign or Chinese experts. In the event of any foreign expert being engaged he must be bound by Chinese laws and be under the direction of the head office. Any deputy may be specially appointed by the head office if necessary to accompany the foreign expert to prospect mines, and when the survey is completed a report must be furnished to the head office for consideration. The duty of the foreign expert, however, is only to find out the value and prospects of the mine and to make suggestions as to how it may best be worked. He has no right to dictate or make any decisions in regard to mining affairs.

5. Permits for the prospecting of any mine can only be granted when the locality designated offers no obstruction to an already established industry and represents no complication with other local matters. Also the status of the applicant, his capital and experience to enter on such a project, without any reservation must be fully reported to and approved by the local authorities, and sent up to the board of commerce. When the head office is satisfied with such application, it may apply to the governor of the Province, who will forward it to the board. In the event of any application being made directly to the board by anyone, the board will refer the matter to the provincial authorities and request the head office to make the necessary investigations.

6. Fees must be paid by all mining promoters in the shape of an annual rental for the mining area, and a percentage on all output of the mine, also a bonus on all mining operations carried on on land jointly owned by the Government and the people. All such fees are to be collected by the head office in each Province, half to be remitted to the board of commerce and half to be paid to the provincial treasurer for the necessary provincial expenses. A full return of such fees must be submitted to the board at the end of each year through the governor, the fees for the issue of prospecting permits only being retained by the head office for current expenses. The fees received by the deputies should be transmitted to the head office, which will distribute them to the deputies in the departments and districts for the defrayal of their office expenses.

The above rules from No. 3 apply to the mining concerns already in existence.

7. Those who are already engaged in mining or have been permitted to open mines must, according to the new regulations, report all details of mines to the head offices of the Provinces they are in, and must furnish such particulars within a period of two years from the publication of these regulations, and they can only be permitted to continue work under the conditions laid down herein.

8. If any of these articles are found disadvantageous to and embarrassing to interests of concerns already in operation, or to whom permission has been granted to open and work mines, the circumstances may be pointed out to the head office, which can submit the objection to the board through the governor for alteration, if such protest is made within six months of the issue of these regulations.

All foreign mining industries must submit their reports or objections to the Waiwu Pu through the same channel, and providing China’s sovereignty or the public peace are in no way injured some modification may be made in the rules to suit their case. All who apply for permission to open mines after the issue of these regulations must be bound by the terms of the regulations without alteration or amendment.

9. Chinese subjects in accordance with Chinese law are solely entitled to own land, and in any case where foreigners cooperate with Chinese their rights of participants last only so long as the mining continues, and they can have no territorial rights whatever.

10. The subjects of treaty powers may, subject to the laws of China, be permitted to cooperate with Chinese in the opening of mines, providing permission to do so is legally obtained. Both parties, foreign and Chinese, will be designated mining merchants, and the two following paragraphs are designed to specially cover such partnerships:

(a) If the Chinese enters into partnership by giving his land for development, the foreigner working it, he is entitled only to a share of the surplus profits and is free from any liability of financial loss. If the owner of mineral land does not wish to enter into partnership with the foreigner, but is desirous of getting money from his land, he can sell it to the Chinese authorities, who will thus become the owners, and the land may then be leased to the mining merchants in cooperation. The profits in such case will be divided in accordance with terms mentioned hereafter. No foreigners will be permitted to own mineral land.

(b) Chinese entering into partnership with the foreigners financially will have an equal share of the profits and power and also of the liabilities, and the shares must be equally held. In such case if the Chinese owner only contributes the land and no other Chinese cooperates with the foreigner financially, the foreign mining merchant must set aside three-tenths of the shares for a period of five years to afford any Chinese desiring to enter into partnership at par value of the shares. The foreigner may then part with half of the three-tenths unallotted shares, and if at the end of another five years no other Chinese make application for them, he is at liberty to allot the remainder of the shares. But if at the end of 10 years there are Chinese applicants, shares must be provided to meet the demand at the prevailing price.

The foreigners and Chinese who have no right to be admitted into mining enterprises are as follows:

(a) Chinese subjects who have committed offenses against the law.

(b) Priests, monks, and missionaries or religious teachers.

(c) Foreigners whose country has no treaty with China or whose country does not grant China similar privileges.

(d) Foreigners who do not observe the Chinese law or who have committed offenses against the laws of their own country.

(e) All representatives of the various countries and all those in the employ of the Chinese Government.

(f) Foreigners who have worked for their Government and have not clearly retired from such service.

(g) Places where mining has been specially prohibited by China.

11. The products of mines, whether underground or surface, and irrespective of the combination in which they occur, are divided into three general groups, in order that distinction in methods of operation may be conveniently made.

(a) All the minerals which are constructive substances are to be under the head of class 1.

(b) Minerals such as amber, phosphorus, etc., are to be called class 2.

(c) Minerals such as coal, iron, sulphur, etc., which combine the characteristics of both, are to be called class 3.

Salt is a Government monopoly, and is not included in the above.

12. Any new minerals discovered or any mineral substances which have not been clearly classified in the regulations must be submitted to the board for consideration, and the provinces will be instructed by the board accordingly.

13. Mineral lands will be divided into two classes:

Lands on which minerals are obtained from the surface and which does not prohibit the owner building on or cultivating.

Mineral land which must have deep shafts sunk and the mining works carried on below the surface.

14. The right of working surface minerals is granted only to the owner of the land and will not be extended to mining merchants in cooperation, but mining merchants who have been given permission to open up and mine any given area will have the exclusive right to do so, and will not be restricted in their operations by the owner or any others.

According to the accepted rule underground mines belong to the Government, who have the first right to all precious minerals, and the owners and subjects of the country should not profit by underground wealth. But the administration of China is liberal, and in addition to the collection of the annual tax on the mining area and on the output of the minerals, one-half of the profit of the minerals marked “c “should be paid to the governor and one-half to the owner. In this way the people as well as the Government may enjoy profit.

Any foreign and Chinese partners working the mines will have no power to control the mining area judicially. Chinese and foreign partners must first consult the owner of any mineral land as to whether he wishes to participate with them and accept shares for his property, or whether he wishes merely to raise money on his land. In the latter case he may report to the head office and the market rate will be paid him for his land, and such land will then become Government property and the Government will cooperate with the mining merchants. But if the owner does not wish to sell his land the proposal made must be carefully considered, and no force must be brought to bear on him to cooperate with the merchants. When the mining area has been granted for working the mining merchants have only power to arrange the actual mining affairs and can not interfere with the general business of the locality, and the local authorities must not hinder the enterprise by the enforcement of regulations not included in the Mining Regulations.

When the mining area is not needed any more and the mining work is finished, the land must be handed back to the head office and the mining permit must be canceled. The sole authority for opening any mine rests with the Government, whether it be by Chinese officials or people or by foreigners in cooperation with Chinese. If any person privately sells his land to foreigners, he will be punished on a charge of having dealt illegally, and the land will be confiscated. No mines will be permitted to be opened by foreigners only without Chinese partners.

15. When mines are opened by Chinese and foreigners in partnership the shares will be termed “silver shares.” When the owner contributes his land and does not assist financially his shares will be termed “land shares.” When the Chinese shareholders are unable to subscribe their quota of the capital, the Government may assist them in completing the amount, and thus the Government acquires “silver shares.” In the same way there may be Government “land shares.”

16. Minerals marked “a” in article 11, being surface minerals, are allowed to be worked by the owner who has also the right of possession. But if such minerals are produced on Government land the applicant will be allowed to work them only after the usual permit has been obtained from the head office. The annual tax and tax on mine products will not be collected, but such owners must pay the fees according to the regulations of the province.

17. Minerals classified under article 11, if on Government land, should be worked by the Government. But if they are privately owned, such owner may have the first right to work them. If he has no funds to do this, he can contribute such lands as his share and cooperate with foreign mining merchants. The profits after all expenses have been paid will be divided thus: The owner will take three-tenths and the mining merchants seven-tenths. The Government collects, only the annual tax and the tax imposed in accordance with these Mining Regulations and does not take any of the profits.

18. In the case of minerals marked “c” one-quarter of the profits must be paid to the owner of the land, one-quarter to the Government, and two-quarters to the mining merchants.

19. The amount of mineral produced either from Government lands or from private lands must be reported quarterly to the head office through the deputy, and that office must report it to the board, so that the result of mining for the whole of China may be recorded.

20. The mining merchants are not allowed to privately sell the products of the mines or exchange or mortgage them for any loans. In the event of this being done it must be reported to the deputy for investigation and consideration, and if the merchants are found in fault they will be charged with having unlawfully sold the mineral. Any property other than the mines belongs to the merchants and is not hereby included.

21. Any owner of mining land is at liberty to enter into partnership with mining merchants, and the amount of profit accruing to them will in all cases be determined by the class of mining carried on. In the case of minerals, class “b,” the mining merchants will receive seven-tenths of the profits and the landowner three-tenths. If the mineral belongs to class “c” the mining merchants are entitled to half the profits and the other half should be divided between the land owner and the Government. Any mine, whether large or small, difficult to work or easy, must first pay ground rent, the mining tax, and accumulations. The profits received by the landowner and merchants must be regulated on the above basis. If it is Government land, any profits over and above belong to the Government, when the mining merchants have received their share as dividend. Should the mining merchants not feel inclined to conform to the regulations they can not be allowed to enter into the industry at all.

In the event of the land only being contributed the mining merchants have the entire management of the mine, and all losses must be borne by them. If the loss is actual, the landowner will of course receive no profit, but he will be entitled to inspect all accounts so that it may be publicly known whether the failure is genuine or not, and both parties will thus be saved from any dispute. In the case of Government land, half the share belongs to the Government and half only to the mining merchants, and they must on no account hold more than the Government, and the profits must be equally divided. A Government representative will in all cases be sent to inspect the accounts and watch the workings. If the landowner has entered into partnership with capital he will share any loss sustained so far as the capital is concerned, but not on his land. The people’s shares and the Government shares will be on precisely the same footing.

22. Application for the working of minerals of “b” and “c” class must be first made to the head office and a permit obtained, but all salt deposits are exclusive property of the Government, and China does not include them in the mineral products of the country. If a certificate for the working of salt is obtained through mistake, the holder can not be allowed to use it and can not hand over the rights contained therein to others.

23. Permits are for two purposes, for prospecting in the first place, which is supplied by the board to the head office, after due particulars have been supplied. The other is for the opening of the mine. These permits can be obtained by a single promoter or by shareholders in partnership, or by corporated mining companies.

24. Anyone applying for a prospecting permit must state clearly his position, the locality he wishes to prospect, the class of mineral to be worked, and he must then wait for the head office to investigate these pariculars with the local authorities. If the applicant is found to be unsatisfactory in any way, or some obstacle occurs in connection with the place for which the permit is requested, the permit will not be issued. As a guarantee of bona fides the prospector should be asked to sign a bond.

25. On the prospecting permit being granted, the prospector is allowed one year for the work, or may be granted six months more if the work is important and has not been completed. But if within two month of receiving the permit the prospector has not engaged any mining engineer with a certificate from a mining college to conduct the work, the extension of time will not be permitted. Prospecting permits will be granted only for an area of 30 Chinese li and must be wholly situated within the boundary of one district. Should several promoters apply for prospecting permits for the same land, the permit will be issued to the prospector applying first. The prospecting permit can not be exchanged, sold, or mortgaged, or be in any way altered by the holder.

26. Any piece of land not kept for the public use and mot obstructing the public convenience may be prospected for minerals under classes “b” and “c.” Shafts must not be more than 30 Government feet deep, but simple borings may be 500 feet deep. If a greater depth is necessary, the promoter must consult the owner as to whether he is willing for the shaft to be sunk to a greater depth, and not the least compulsion must be used.

27. When the boundary of a mining permit has been clearly defined and another promoter applies for a permit nearby, a distance of at least 600 official feet must separate the two mining areas. But if a mining area for which a permit was previously issued has been abandoned, the next promoter may be permitted to prospect there.

28. When prospecting for minerals under classes “b” and “c” the depth of a shaft sunk exceeds 30 official feet in length, it will be termed a “mine,” and it will be necessary to apply for a mining permit before the work can be proceeded with.

29. For the opening of a mine, boundary lines 300 official feet must be measured on each side, and this area will be designated one mine. Those who open mines must make the lines on the surface correspond with the delimitations of the working below and must not exceed the line of working. When the minerals classed “b” and “c” have been excavated within these prescribed limits, and are exhausted, the working must cease and the mine be considered finished. Greater depths of excavation must not be made.

30. An application to open one or more such mines can be covered by one permit, and the mines so opened must be regarded as one lot and not separated. When many such mines adjoining each ether are opened by one promoter, the whole area must be limited to 960 mou, or 160 English acres. If less than this area is applied for originally, and it is afterwards desired to extend it, the same procedure as at first must be gone through.

31. Should unsuspected mineral areas be discovered between two already existing mines, the dimensions of which are not strictly in accordance with the limitations laid down, application to work them may be made by one of the holders of the adjacent mining grants, and if he does not desire to work the area, application from others may then be made.

32. If the promoter desires to abolish all the mining work after receiving his permit, or some portion of it, he can do so in accordance with the supplementary regulations, which are issued by the head office.

33. As soon as the prospecting work is completed application should at once be made to the head office for a mining permit, with full particulars of the applicant’s status, whether there are partnerships, and all such particulars, with the number of mines it is proposed to open, which facts must be sent together, with a bond from some established firm to the extent of 10,000 taels to insure the applicant working the mine in accordance with the regulations, for failure to do which the security money will be forfeited.

34. Any applications for mining rights will be entertained in their order, but a prior right lies with the owner of mineral land, class “to work the land himself, if he desires to do so, within a certain limit of time set by the head office. Beyond such limit the head office can purchase the land, which then becomes Government property.

35. Should the land adjoining mineral lands belong to private owners and should be considered necessary for the proper working of the mines or for storing, the mining merchant may consult with such owners, and if they are not willing to negotiate with the mining merchant the head office may endeavor to arrange the matter and see if there is any real objection to the proximity of the mines.

36. If any mineral land is productive of minerals of both and “c” classes, but it is not possible to work both at once, it can be worked by the parties who make application for either mineral first. The applicant who applies for mining rights under class “c” can have the benefits of any minerals he finds under class “b.” But applicants to mine under class “b” can not work minerals under class “c.” A new application must be made in such case.

37. When application for mining permit is made the name of the applicant must be posted up outside the head office, so that it may be ascertained whether any complications are likely to arise. The head office will send a special deputy to the site of the mine to examine it; the presence of houses, roads, or other works on the land applied for will not be held an obstacle. The work of opening the mine must be in conformity with regulation 44 and supplementary regulation 42.

38. When the boundary stones have been erected on the allotted land by the head office, if the promoter has applied for prospecting rights, and the permit causes no embarrassment to the local officials, the head office may report to the board for the opening permit, which will be issued through the head office.

39. The promoter can then freely open his mine within the stated boundaries.

40. When underground shafts are necessary for pumping out water, ventilating, and output, and such tunnels and shafts require land beyond the actual limits, application must be made, and if such tunnels approach the minerals of other promoters the mining merchants must consult with the other promoters. If no agreement can be arranged, the work must be stopped pending the decision of the head office. If, in the course of excavation of such underground shafts, minerals of classes “b” and “c” are unexpectedly met with, the mine operator must inform the deputy of the fact and conform to article 40 of the supplementary regulations.

41. Any subterfuge or trickery in the obtaining of permits will be severely punished and the permit will be confiscated.

42. For any land on which mining permits are granted, annual fees on the following scale will be levied:

(a) For minerals of class “b,” for each mine, 1 tael 5 mace, or 1 mace per mou.

(b) For minerals of class “c,” for each mine, except gold, silver, and precious stones, 3 taels, or 2 mace per mou.

(c) For mines with gold, silver, and precious stones, 4 taels 5 mace, or 3 mace per mou.

If mines of class “c,” mentioned in this article, which pay a yearly rental of 3 taels, also contain gold, platinum, or silver, they must pay rental as ordered for class “c,” i. e., 4.5 taels per mine, or at the rate of 3 taels per mou.

(d) These fees are in addition to the land tax.

43. All mining fees must be paid half yearly, and if they are in arrears for six months the mining permit is liable to be canceled and the mine closed up. If the land is Government property it must be restored to the Government.

44. When a permit for prospecting on privately owned land is issued there must first be an official record of the agreement entered into by the prospector and the landowner. For mining on Government land the promoter must pay a prospecting rental fee of 2 taels, and a half fee if the period is extended six months. Such fee must be paid to the head office before the prospecting permit and before the extension grant is obtained. But these fees will not be charged on ventilating shafts of connecting tunnels.

45. In addition to the mining fees collected on the mining area, the output of all mines will be taxed as follows:

(a) On hard coal, soft coal, and coke, 1 mace per ton.

(b) Iron ore, 1 mace per ton.

(c) Gold, platinum, silver, 10 per cent on the retail market rate.

(d) On mineral ores containing gold, silver, or platinum, the exact amount of which can not be immediately ascertained, 5 per cent of retail market rate.

(e) On tin, copper, and mercury, 3 per cent of market value.

(f) Precious stones and jade, 10 per cent of market value.

(g) All minerals under class “6,” 1 per cent of market price, and of class “c,” 3 per cent of market price.

46. The tax on the mineral output of one month must be paid before the 15th of the following month. The rental on the mining area and the tax on the minerals should be paid to the deputy, who will send it to the head office.

47. If the tax on the previous month’s output, which should be paid on the 15th of the month, is in arrears for three months, the mine is liable to be closed and the land taken back if it is Government property.

48. Export duty according to the customs tariff should be paid on all minerals exported, and on both crude and smelted ores. All machinery and materials for mining must also pay duty.

49. All foreign subjects of treaty powers who wish to cooperate with Chinese in mining enterprise must be termed “mining merchants,” and are then recognized as having already conformed to Chinese law. They are under the control of the Chinese authorities and must comply with the Mining Regulations and with any future regulations and to any new law in connection with mining which may subsequently be passed. If these points are understood foreigners may engage in mining enterprise as much as they like. The too hasty or too long-delayed opening of a mine might involve the stoppage of the work temporarily, which might be unavoidable. If a whole year elapses without any work being done, then the Government may take it for granted that the mine has been permanently abandoned.

Any risk or damage sustained through mismanagement of the work is the responsibility of the mining merchants, who should take proper precautions. If others suffer loss through the mismanagement of the mining merchants the whole question must be investigated by the head office, and if necessary, the mining merchants must pay compensation. Whenever notice is issued by the head office for mining work to be stopped no delay will be permitted or opposition allowed or forcible resistance. Any loss sustained by the stoppage must be borne by the mining merchants, and the foreign consuls and ministers can not be allowed to interfere.

50. Mutual benefit must be enjoyed by the promoters of adjoining mines in regard to roadways, watercourses, and ventilating shafts, and both parties should be equally liable in case of loss, but in any case of special request or indemnity the parties must conform to the supplementary regulations and to the decision of the local authorities.

51. Water in the mines must be dealt with by the mining merchants, and any surface water must be dealt with in accordance with the general scheme of the mine, but public waterways must not be impeded.

52. Agreements for compensation must be signed by the mining merchants when any damage is sustained to the property of others through the underground working of the mine or on the surface, if such damage can be shown to be the result of neglect on the part of the mining merchants who presumably knew the chances of such emergencies already. The amount of such compensation will be settled by the head office.

53. The head office has power to authorize the mining merchants, whose mines adjoin, to jointly contribute to the expense of removing surface water if they can not amicably agree on the point within a reasonable time, and if the discussion of resposibility between them is delaying mining operations.

54. No kind of mining will be permitted within one li of any land on which the owner has declined to allow mining, without his permission, nor within three li of any important public waterway or supply, public roads, or railways, yamens or guilds, unless by special permission of the local authorities; nor within 30 li of any forts, camps, and ammunition stores.

55. All mining promoters, whether working alone or in partnership, must keep proper books and accounts, which must be open to the inspection of the head office.

56. A plan of the working, with full particulars, must be prepared in accordance with the requirements of the head office and be always open to inspection.

57. The felling of timber for the clearing of roadways or opening of mines is not included in the prospecting or mining permits. If the trees are on Government lands, a special permit to cut them is necessary, and must be applied for, with a deposit equal to the retail price of the timber. If the trees are on private lands the owners must first be consulted as to the price of the trees, and they can only be cut with the consent of the owner, or a legal decision can be given by the local authorities.

58. All navigable streams, lakes, or creeks which have been habitually used by the people, and are under the control of the Government and people, must not be altered or interfered with, nor must the waters of the upper stream be cut off from below so as to injure their utility.

59. The status of foreign merchants entering into partnership with the Chinese, with the necessary bonds, must be certified to by the consul of the nationals concerned, with the declaration that the said applicants are in a position to conform with the requirements of both volumes of mining regulations; and the confirmation of the head office, that the statements are in accordance with article 5, as to the mining merchants’ standing, must be duly recorded, and then the mining permit can be given through the head office. Passports for permission to travel in the interior will still be necessary for all foreigners, and all regulations with regard to the illegality of foreigners leasing ground, building houses, and opening stores in the interior will still hold good.

60. When any foreign mining partner has any monetary litigation with a Chinese other than the members of the mining concern, or with the subjects of any other country, the matter must be settled in accordance with Chinese law, without partiality; and if there is no precedent in Chinese records of any such case, the usage and law of the country concerned may be consulted and applied to assist the Chinese law.

61. Should any foreign mining partner commit any crime or offense the Chinese authorities must investigate the case and adjudicate if his consul is far from the place of occurrence, and if the accused seeks to run away, the Chinese authorities may temporarily arrest him and convey him to the nearest consul for trial under his own law, according to treaty. The Chinese authorities should not insist on interfering. Should the consul in such case decide unfairly and not do justice by the Chinese concerned, then the foreigners of that nationality will not be in future allowed to have any mining privileges in that Province.

62. In any case in which the decision of the mining deputy in any dispute in connection with mines is not satisfactory to the foreigner, he may appeal to the head office, and if still dissatisfied he can appeal again to the provincial judge, the viceroy, or to the board of agriculture and commerce, but the consul or minister must not interfere. If the point at issue is not covered by the regulations, the foreign mining regulations applicable to such a subject may be consulted, but the principle of these regulations must not be violated.

63. Foreigners in partnership with Chinese desiring to indulge in racing and the other forms of sport which they are given to, must apply to the local authorities for the selection of some suitable place where their sports may be indulged in without risk to others. They will then be protected in accordance with the conditions under which traveling passports are given. The Chinese authorities are not in any way responsible for foreigners who have no such passports, nor any connection with mining enterprise exclusive of the foreign partners, engineers, and mechanics.

64. Should the head office or the local authorities consider any place being unsafe on account of the people being restless, or that for any other reason it is not suitable for foreigners to be there, they will not issue the necessary mining permit.

65. All Chinese engaged in the actual work of mining are called mining laborers. All regulations drawn up by the mining merchants for their control must be submitted to the head office for approval before they are enforced.

66. Mining merchants must keep a record of all the names of the men who are working for them, with their ages and places of birth, date of engagement, or discharge

67. Under the following conditions laborers have the right to refuse to work:

(a) In the event of any ill treatment on the part of the mining merchant or his employees.

(b) When wages are not paid at the right time, or deductions are made.

(c) When overtime work is insisted on and the laborers are made to suffer thereby.

68. The mining merchant should compensate the laborers under the following conditions, and must report their rules for so doing to the head office:

(a) Laborers suffering injury for which they are not responsible by their own fault or carelessness must have their medical expenses paid.

(b) Wages sufficient for his support must be paid to any laborer so incapacitated during the term of his illness.

(c) When such injuries cause death all burial expenses should be generously paid.

(d) When permanent injury is caused by such accident, living wages should be paid for a certain period. The amount of such compensation as is suggested in the above four clauses should be settled in consultation with the mining deputy.

69. The mining merchants have the right to dismiss their laborers who embarrass them under the following circumstances:

(a) Those who commit offenses against the Chinese law and disturb the peace of the citizens.

(b) Those who secretly introduce bad characters under the pretext that they are laborers.

(c) Those who on the plea of being converts join the mine as laborers and then decline to observe the regulations or obey the authority of the local officials.

70. Under the following circumstances, which are calculated to cause mischief to the people, the mining deputy may exercise pressure on the mining merchants to dismiss the men and hand them over to the local authorities for punishment, and the mining merchants must not harbor or shelter the same:

(a) When the men do not observe the conditions on which they are allowed to be employed by the mining merchants.

(b) When they are unruly and turbulent toward the mining merchants and are generally not amenable to discipline. When, in spite of the fact that they are being paid in full by their employers, the men strike work or endeavor to obtain more money by intimidation.

71. The rules for the government of mining merchants and for the prevention of ill treatment of laborers by mining merchants can be amended if necessary at any time, with the approval and assistance of the governor of the Province, who can communicate with the board of agriculture and commerce.

72. Mining supervision is accomplished by the head office acting through the deputies in the general manner detailed below:

(a) The risk of safety of the proposed excavations.

(b) Matters pertaining to the lives and health of the laborers.

(c) Matters concerning the protection and benefit of all parties.

73. If the deputy is assured that there is danger to the enterprise or to the general welfare of the promoters or people he can apply to the head office for the immediate stoppage of the work, and if the danger is so imminent and serious as to allow of no time for reporting, he can himself take steps to stop the work forthwith.

74. If the stoppage of the work is caused by a temporary incident, when things have been put right the work may be allowed to proceed after the deputy has duly investigated the matter.

[Inclosure 2.]

Supplementary mining regulations.

1. Every director of the head mining office in each province has, as already stated, to appoint deputies to attend to all the details of mining affairs in the fields of their respective jurisdictions; they must also see that all applicants for prospecting or mining permits fulfill in every respect the provisions of the mining regulations whether mentioned in the original or in these supplementary regulations.

2. The deputies are to avoid all matters in which their personal interests are in any way concerned, whether directly or indirectly.

(b) The interests of clansmen or relations must not be allowed to have weight, but must be kept in the background as the rules of the Ta Ch’ing dynasty and the requirements of the board of civil office direct.

(c) Deputies must not concern themselves or interfere with disputes about land in which either they or their kinsmen may be involved.

(d) Deputies are required to withdraw from the dispute if it is concerning the property of any relative of theirs, or even if a friend with whom they may have financial dealings is implicated.

3. The deputies are required to look after the reporting and forwarding of all statements made to them by the mining capitalists.

(b) Should the applicants desire to have their applications canceled, or to alter them by adding to or deducting anything therefrom, this is to be arranged.

(c) A complete record of the business of the preceding month must be sent in by each deputy before the 10th of each month.

(d) The address of the deputies’ office, with the hours of attending to business, must duly be made known to all.

(e) In all districts where mining has already started it must be inspected by the deputies in accordance with the regulations.

4. No foreigners can be employed as mining deputies or mining policemen or as overseers. All the deputies appointed to look after a mining district must be Chinese, but they must have a fair knowledge of the mining work. No foreign official or merchant is allowed to hold such a position, but the mining expert employed by the head office is exempt from the provisions of this rule.

5. Applications for prospecting permits must be made in duplicate in accordance with Volume I, article 24, and must be sent in to the deputies of the head office, which office will in turn notify the district officials to make arrangements for the mining land to be inspected, and if the officials shall approve the application the duplicate shall be returned to the applicant with the official seal and the date of the receipt of the application stamped on it.

6. In the application for permission to prospect any mine it must be clearly stated whether the land is Government or privately owned. If it is private land a reasonable compensation must be paid for it and the willingness of the owner to allow mining operations must be certified. The form of the sanction of the owner must be as follows:

It is hereby certified that the portion of land of—, lot of—section, situated in—district,—province, covering an area of—and lying to the east of—, on the west of—, on the south of—, is permitted to be placed at the disposal of-to prospect and make experiments with. This is further to certify that the terms for this prospecting have been negotiated and paid.

(Signed)—. Witness,—. (Signed)—, owner of the land.

A copy of the above certificate must be kept by the prospector and the other — handed to the deputy and kept on record. Whether the land to be prospected is Government or privately owned the area of preliminary experiment must be limited to 30 feet square and 30 feet deep.

7. Permits for prospecting and experiment are to be given in regular order. Where several applications are received at the same time for the same place they must be taken in regular order and the permit granted to the one first received. If there is any reason for not granting one application the next one in order will be taken.

8. In the event of no definite arrangement being arrived at between the owner of the land and the prospector regarding the precise amount of money which shall be paid for the right of prospecting, the matter shall be referred to the deputy within two months. Full particulars as to the reasons why such decision can not be come to must be clearly stated. If the owner fails within the appointed time to show good cause for failure to give his consent it will be assumed that none exists and the deputy will make a memorandum of the facts at the bottom of the application certificate and the duplicate, as follows:

“The sum of—taels has been placed in the hands of the undersigned as deposit for the indemnity against all damage done to the land as claimed by the owner. The actual amount is to be hereafter estimated and paid out of this deposit.

“(Signed—, Deputy for—District.”

9. The time limit allowed for the commencement of preliminary operations is one year from the issue of the prospecting permit, and no other permit to work the same area can be granted until that time has expired.

10. Applications to open mines must be made in duplicate with the fullest particulars, the name, address, occupation of the applicant and his nationality, also whether it is intended to work it as a company. If the application is filed by a company, an account of the company must also be filed, as demanded by Chinese law. The boundaries of the mining area are to be clearly stated, also the situation and direction of the mines, the part of the district in which it is located and the most striking natural features of the vicinity, also the class of mineral to be sought. It must also be stated what form the mine will take, i. e., following a vein, drifting at different levels, or some other form. A bond executed by a responsible party must accompany the application.

11. Should the applicant by some mischance meet with an accident by which the permit is damaged or destroyed he may apply for a duplicate on reporting the particulars to the head office.

12. Should the death of the promoter occur and a substitute take his place, the matter must be reported to the deputy within 60 days and then to the head office.

13. If a permit is applied for to mine minerals of class b, as mentioned in Volume I, article 11, the deputy of the district must ascertain whether the owner desires to carry out the mining operations himself or whether, if the work is to be done by others, there is any ground on which he does not care about the enterprise being undertaken at all. If the permission is for himself the head office must fix a time for the work to commence, and keep a record of this and of the application to see that the owner keeps his word. If the owner fails to satisfy all his inquiries within a month he will be regarded as having given up the idea of working his land. The head office, in accordance with article 39 of the regulations, will have to deal with the owner if he fails to acknowledge his communications and give definite reply, refuses to let others engage in the enterprise either, or if undertaking to work the land himself he fails to start operations within the time specified, even when expostulated with, the matter must be brought to the notice of the local gentry, who must decide the mttter.

14. If, after the landowner has received his compensation and indemnification money, and the head office has granted the prospecting permit to some other person, the year allowed being still unfinished, the landowner then decides he wishes to do the work himself, he must reimburse the prospector for sums expended on work. If the two parties can not arrive at an agreement as to the amount expended on the work then the provisions found in article 39 of these supplementary regulations will regulate the decision.

15. The deputy has the full right to make what inquiries he thinks fit in connection with the opening of any mine. If the application fails to furnish clearly all the information required by article 10 of these regulations, it will not be registered, and should the deputy find anything suspicious in the circumstances of the application he may make investigations with a view to finding out, and he will then report to the head office the cause of his suspicions and all that he has found out.

16. On receipt of the application for prospecting or mining the deputy must, in the presence of the applicant, duly record the date of the application being received and the number of the application, and these figures must be written on the bottom of both the application and the duplicate in proof that this has been properly recorded.

17. The deputy must on no account accept other applications for the same place once the first one is recorded. During the interval between the receipt and approval of the application no other application must be received.

18. Should there be several applications at the same time for land situated in the same place, they must be dealt with in order in the manner stipulated in article 7 of these regulations.

19. Within 10 days after the application for a mining permit is filed the mining deputy must dispatch an engineer to measure the land which has been applied for, and also to draw a map of the same, with explanations. All the land within 300 feet of the boundary of the piece of land applied for must be included in the map. The charge for measuring the land and making the map must not exceed 5 taels per day, or 50 taels in all. This charge is to be fixed by the deputy and paid by the applicant. If the engineer dispatched to do the work manifests a desire to protract the work, the applicant may make a formal protest to the deputy, and, after consideration, the charge may be reduced.

20. Sixty days will be allowed mining engineers for the preparation of plans for the mining area, and the detailed report of same, which must be handed in in triplicate to the head office through the deputy. Should there be any who cause obstruction to the work and prevent the proper execution of it in time, they must be arrested and punished accordingly.

21. In measuring out a mine a base line should first be established, and from that the side lines should be laid out.

22. The boundaries, when made, must be distinguished by boundary stones or boards and the following conditions must be observed:

(a) Once the boundary stones or boards are fixed, they are on no account to be removed unless the boundaries are changed.

(b) The boundary stones or boards must be well made and durable and kept in good repair.

(c) Any figures or characters on the boundary mark must be written so as to be easily seen by all, and the mine owner’s name and number must be engraved thereon.

23. The positions where these boundary marks are to be placed must be arranged by the engineers surveying the mine area and indicated on the map.

24. The engineers marking out the area will be held accountable for any mistakes in the survey or in the plan made.

25. The holder of a mining permit must carry on the mining work strictly within the boundary limits marked. It is not allowable to increase or decrease the area. Any mistake made in the marking of the area or placing the boundary marks likely to cause any disagreement or dispute must be promptly altered, and if it is suspected that the mistake has been made with the object of increasing the area of operations the owner must be fined.

26. If the issuance of a permit is protested it shall be the duty of the mining deputy to inform both the applicant and the head office of the name of the objector and the grounds of his protest.

27. The protest must be made within four months from the public announcement of the granting of the permit and must allege at least one of the following reasons:

(a) Disagreement arising with the owner of the land.

(b) An attempt to alter or encroach on the boundaries.

(c) In the event of any portion or the whole of a piece of land granted for mining being found to be within the boundary of a mine worked by another.

(d) If the holder of a mining permit is found to impose on the people as a result of having such permit.

(e) The conditions stated in the permit differing from those actually in existence.

(f) The holder of the permit being found to be unqualified to operate a mine.

(g) The commission by the holder of the permit of any of the offenses mentioned in article 20 of the principal regulations.

(h) The actions of the holder of the permit being contrary to the regulations.

28. The deputy must, on being notified of any cause of dispute and on being applied to to cancel the permit granted, ascertain for himself all the particulars of the case by personal investigation, even though he may be fully informed of all details from one or other of the parties concerned, and he must submit his own statement of the case to the head office.

29. The engineers sent to report on and investigate any cases of dispute are to confine their attention entirely to so doing and have no further power to make any decision.

30. Any petition made by the owner of the land which is found to contain any misstatements such as for the rejection of an application on the ground that there are no minerals on the ground, and if the engineers have in the meantime ascertained that there are such, the petition must be rejected.

31. On receipt of any report of a dispute the deputy must request the parties to attend at his office within 15 days of such notification and he must use his best endeavors to settle the matter amicably. Should they fail to act on his advice the conference must cease and the matter be handed over to the local authorities, and if neither party take any steps and apply to the court within four months, the deputy must apply to the head office and ask that the permit be issued.

32. If four months have elapsed and no protest has been made, or if the ground for protest is not one of those mentioned in article 27, or if, further, the case has been settled by the local official, the records of these protests must within 15 days, together with the map and the draft of the accusation, be sent by the deputy to the head office for inspection.

33. If the accusation is not made in the manner prescribed the blame must not be considered to have been incurred by the plaintiff. But the head office will make a note of the incorrect places at the back of the records and will direct that within a certain time the deputy shall make the needful changes; but if the error is an intentional one the maker of it shall be condignly punished.

34. When the head office has examined all the records of the case, if it appears that the permit may be granted, then in the manner prescribed in article 35 of these supplementary regulations the head office may recommend that the permit be issued and this together with a copy of the map drawn by the engineers shall be transmitted to the applicant by the deputy as evidence.

35. The head office will first see if the application for a mining permit is made in due form and will then petition the governor or viceroy for a permit, which petition will be forwarded to the board of agriculture, industries, and commerce. When the permit has been granted by the said board it will be forwarded through the same channel to the applicant.

36. In the case of application being made to open mines with the cooperation of foreigners the head office must see to it that all the conditions are in accordance with article 9 of the principal regulations, and the head office must also make sure that the owner of the land is quite agreeable to his land being worked in exchange for shares in which foreigners are part holders. If it is the owner of the land himself who is in partnership with foreigners, contributing the land as his share, he must furnish the head office with proofs that the conditions are in harmony with article 10 of the principal regulations, and if everything is found to be in order then the permit may be granted. If the enterprise is to be carried out only by a Chinese corporation and the owner does not desire to take any shares but only get money for the use of his land an agreement can be made in accordance with article 10 of the principal regulations, and the permit issued.

37. Any dispute arising for which provision is not made in these or the principal regulations must be settled by the local authorities in accordance with the national property laws.

38. If when prospecting or working any mine the mining merchant should find any minerals which are not mentioned in his application and permit, the matter must be reported to the head office for decision before the working of such minerals can be allowed, as provided for in Volume I, article 36.

39. If the holder of a prospecting permit or a mining permit needs for his purpose or to extend his operations some land, whether the property of several owners or one, and is unable to come to an agreement as to the price for such land, then the local official shall mediate between them and arrange a compromise after the following rules; but if all the landowners are unwilling to come to terms the said official must not confine himself to the rules laid down below but must devise some other solution.

(1) Each party to choose an assessor to assess the amount which the mine operator shall pay for the use of the land, and report to the local official within 10 days of appointment, for the official’s consideration.

In case of the failure of the two assessors to come to an agreement the local official shall appoint a third, who shall report his valuation to the official within 10 days after his appointment. The local official, taking into consideration the statements of the contestants and of the three assessors, shall determine the amount of the remuneration received by the landowners for the use of their land, as well as the amount of land which shall be used by the said mine operators. He shall come to his decision within 10 days.

(2) If the landowners, after having been directed by the local official to do so have not within 10 days chosen and appointed an assessor, the local official shall appoint an assessor who shall consult with the landowners and the mine operators, be the latter foreigners or Chinese. If any receiving of bribes or partiality is discovered appropriate punishment shall be determined upon.

(3) If it is not known or if it is uncertain who the landowners are, then the local official shall appoint for them an assessor. If the assessor appointed by the mine operators and the assessor appointed by the official in behalf of the landowners fail to come to an agreement, the official must himself fix the amount. This amount shall be retained by the official for payment to the rightful parties.

(4) That which assessors have to do with regard to mining land is as follows: (a) To determine the price of the land; (b) to determine the damage sustained by land; (c) to determine what must be done in accordance with article 42 of the supplementary regulations.

40. When engineering work is being undertaken and tunnels are being constructed, if any minerals should be found, it is necessary to make an application for mining permit before they can be worked.

41. Should application have been made for the use of land only for tunnel purposes, for the carrying off of water or other reasons, the holder has the first right to apply for mining privileges on that land should be chance to find minerals during his working operations, and no one else has the right to be granted the privilege should they apply for it until he has rejected the right to mine. He must be informed of such application and must give his answer one way or the other within three months of the date of such notification. If he declines to take up mining enterprise there or fails to give any answer to the authorities, the head office will have the right to grant the privilege to others, but the parties to whom such mining privileges may be granted must not interfere with the work that he is doing or damage his tunnel.

42. The additional clauses indirectly indicated in article 50 of the principal regulations are as follows:

(1) If X, a mining operator, takes no precautions to prevent the water of his ditch from injuring the property of Y, likewise a mining operator, or if X constructs his ditch in so faulty a manner that Y’s property is damaged, then X must indemnify Y.

(2) It is not allowable to make any excavation or water channel passing through the boundaries of another mine unless by mutual arrangement and agreement.

(3) In accordance with the provisions of section (2) of this article the mine owner through whose land the ditch runs should, if he derives benefit from the ditch in drainage facilities, reimburse the maker of the ditch therefor in proportion to the benefit he derives from it. The amount of reimbursement shall vary with the condition of the mine.

(4) Anyone desirous of making such an excavation or tunnel must apply for special permission and can not begin work until it is granted and the head office must see to it that the plans and conditions of the proposed work are in accordance with the application as represented by the deputy.

(5) When work is being done on a tunnel that will trespass on another’s property, the operator of the said mining property may dispatch an agent to inspect the work, and if the agent observes that the work is not correct he may call the attention of the mining deputy or the local official to the fact, but he may do nothing himself to interfere with the work.

(6) If a tunnel is made connecting one mine with another, then the maker of the tunnel must devise precautions against obstructing passages and means of communication.

(7) Any public underground passage or right of way which may have been made in accordance with (3) of this article can not be used for any purpose other than that it was constructed for unless by special agreement with the parties concerned, in which case the matter must be reported to the deputy and registered in his office. It must be stated in such agreement that it fails to be valid in the event of any of the parties failing to keep the stipulations of clause 6 of this article.

(8) If any new ventilating shaft is sunk in the general underground passage it will partake of all the advantages mentioned in clauses 3, 5, 6, and 7 of this article.

(9) Should a ventilating shaft be necessary to a mine and a saving of great expense be possible by using the shaft of a neighboring mine and paying so much to the other mine owner for the privilege, this may be arranged.

(10) Besides this matter being mutually agreed between the owners of the two mines it must be also reported to and registered in the deputy’s office and they must mutually guard against the stoppage of the ventilating and adjoining passages.

(11) The owner of the ventilating shaft is not allowed to levy any other charges on the mine owner sharing its privileges except as stipulated in clause 9 of this article and the receiver of the privilege is also not allowed to interfere with the rights of the owner of the shaft.

(12) The cost of making and upkeeping a tunnel must be borne by the man making application for permission to open it.

(13) All the underground construction work made chiefly for transportation and communication are to be carried out in accordance with clauses 2, 3, 4, 5, 6, and 12.

(14) If any valuable minerals are found by anyone making a tunnel within the area expressly granted him for the purpose they are his property. But if in the course of the work minerals are exposed beyond the actual area granted he must hand them to the owner of the land or mine, and if the work is being carried out by a company all must share equally in the find.

(15) If work of the above character is to the advantage of X mine, but interferes with Y mine, the following rules must be observed: The two may consult together and come to a decision, Y mine operator giving his consent and the arrangement may be filed with the deputy; the mining deputy and the local official may jointly inquire into the case and settle it; under the circumstances when Y mine operator does not agree that the work shall be done X mine operator should first request a decision from the mining deputy; if Y mine operator is still not satisfied the case may be appealed to the local official; if the latter’s decision is not agreed to by Y mine operator, the case may still further be carried, within the next two months, to the head office for final settlement.

(16) If it is desired to do underground work in accordance with sections 4, 9, and 12, of this article an application, together with a map of the proposed work, should be filed with the mining deputy, who will transmit it to the head office with a request that a permit be granted; this is the only regular way of doing it. The map must show all the dimensions; there must also be a detailed map of the work, which is intended, as well as particular specifications of the conditions. All this shall be for inspection and consideration.

43. All mining promoters owning workshops, assay departments, and mining plants are required to send in monthly reports giving full particulars concerning the work, the number of employees, and the result of the month’s working, each report to be made out in triplicate and handed to the deputy of the district before the 10th of the month. Forms will be furnished for the purpose of being filled in with the necessary particulars, and if nothing has been accomplished during the month the fact must be stated.

44. Those who are obliged by the above regulations to make these reports may obtain from the deputy blank report forms for one month or several months. If these report forms are not obtained from the deputy in advance then any error that is made in the form of the reports will be held the fault of the one making it

45. In addition to the monthly report if there are any further particulars which the head office requires to know they must be furnished on application being made for them.

46. Of those reports called for in articles 43 and 45 of this volume, when they have been examined and found without mistake, one should be inscribed with the date of receipt and returned to the sender.

If any inaccuracies or points not clear are discovered in these reports the one making them out should be fined in accordance with regulation, but the fine must not exceed taels 25. On refusal to pay the fine the man should be imprisoned for not more than two months. The reports should be returned to the maker for correction, after which they should be again tendered to the head office for inspection.

47. Ground rent for the area occupied by the mine must be paid twice yearly, on the 15th of the second moon and on the 15th of the eighth moon. The money must be paid into the head office personally and no excesses for delay will be accepted.

48. The form of the receipt given for these payments must specify the name of the district in which the mine is located, the area of the mine, the amount paid, and the date, the name of the mine owner or worker, and number of the permit issued.

49. The assessment of duties on the output of the mines, as stipulated in article 45 of the principal regulations, must be paid into the head office on the 15th of each month, the form of receipt to be similar to that given for the ground rent but detailing the quantity and nature of the minerals assessed. Half of the amount of the ground rent and duties collected during the year will be forwarded to the board of agriculture, industries, and commerce, and the other half to the high authorities of the province for local expenses.

50. The head office must notify each mining proprietor in the first and seventh moons of the rate on which the mineral output will be taxed, which rate will remain in force for half a year, such average rate being based on the market price of the minerals concerned during the previous six months.

51. The amount of the duty on mine products at the place of production shall be estimated on the basis of the monthly reports made by the mine operator or his representative as to the amount produced by the mine. Falsifications shall be punished as provided in the regulations dealing with such cases.

52. The deputy must report to the head office any irregularity or shortage in the payment of ground rents or taxes, and the head office must deal with the case in accordance with articles 43 and 47 of the principal regulations.

53. The head office and the deputies should keep full records, and in these records the proceedings should be fully entered, such as the name of each applicant, the definitions of the mine boundaries, the nature of the contract, all dates, the system of operation, the number of outworks and buildings, the formation or cancellation of any agreements, and all other particulars connected with the working and personnel of each mine must be fully entered, and whether there has been any increase or decrease in the capital or shares.

54. Record of mining operations should be kept either in the head office or in the office of the deputy.

55. All documents which have been registered as required will assume a legal status and can not be set aside in favor of any others brought forward.

56. The head office should receive fees as follows:

(1) Whenever the head office is petitioned for and issues a mining permit, if the mine is a gold, silver, aluminum, or mine for precious stones, the fee should be taels 10 per mine; or if more than 1 is applied for by one party, any number of mines up to 10, when the mines contain the above substances, will be charged for at the rate of taels 100 for the entire number up to 10.

(2) Whenever the head office is petitioned for and issues a mining permit for a mine which does not contain the above substances at all the fee shall be taels 2.5, or for more than 1 and under 40, taels 100.

(3) Whenever the head office issues a prospecting permit the fee shall be taels 50.

(4) For replacing a permit which has been lost, taels 30; for issuing a permit to open a tunnel, taels 30.

(5) For permission to discard part of a grant, taels 20.

(6) For the correction by the head office or the mining deputy of a document or map to be sure of its correct legal form, taels 2.

All of the above fees are payable to the head office. The fees for the mining permits shall be forwarded to the board of agriculture, industries, and commerce.

57. The mining operator, in addition to those fees paid into the head office in accordance with foreign mining law, is under additional expenses that will be incurred from time to time and will be paid to the representative of the head office on the spot. These are known as fees for office expenses. They are payable to the mining deputy, and should be reported by him to the head office every month for convenient supervision. The salary of the mining deputy and his expenses for grooms and horses, the pay of the local literati employed in deputy’s office, the pay of servants, etc., and their traveling expenses are all payable monthly by the head office, as are also the running expenses of the deputy’s office, such as lights and fire, after the rules laid down by the head office. Having this much, the deputy must not try to obtain any more money from the mine operators. But the life of the mining deputy is very laborious, on account of traveling in the mountains and going down into mines, and is very fatiguing, being in these respects unlike the usual public office. Therefore the head office should be exceptionally generous in the matter of salary, allowances for grooms, horses, running expenses, etc., and thus enable him to abstain from fault. A list of fees payable to the deputy’s office is as follows:

(1) Every petition for a prospecting permit will entail a charge of taels 2—1 being for the indorsement of the deputy and 1 for recording the petition.

(2) When protest is made at the deputy’s office against the carrying out of the prospecting operations the fee shall be taels 2.

(3) For every application for an increase or alteration of a mining area the fee shall be tael 1.

(4) For writing out documents for persons having business with the office, correcting documents, or for indorsement, the fee shall be tael 1 for every thousand characters or less.

(5) When the mining deputy leaves his office on public business the fee shall be tael 0.20 per li traveled.

(6) Whenever it is necessary for the mining deputy to leave his office to observe the surface characteristics of a piece of land and make a report thereon the fee shall be taels 5.

(7) When it is necessary for the deputy to examine the underground workings of a mine the fee shall be taels 5 for every 300 feet of depth or less, and if it is necessary to make out a report the fee shall be an additional taels 5.

(8) When the engineers shall correct and indorse maps the fee shall be tael 1; also when the engineers shall correct and indorse copies of maps retained in the office the fee shall be tael 1.

58. The mining merchant, whether he be a single proprietor or only partner with other Chinese or foreigners, must keep a daybook, ledger, and record books, in which all details of the output, sales, classification of minerals, etc., must be clearly set forth in regard to the mine and all its branches and depots on a system which shall be given by the head office.

59. In addition to the maps which the engineers must prepare when the permit is granted, the following maps must be prepared by each mine in such form that they may conveniently be inspected from time to time.

(a) The map made by the engineer must be copied or a similar one made; only an accurate one will suffice. It must show the limits of the mining area, existing roads, ventilating and drainage facilities, places where machinery is set up, the extent of land devoted to the different plants connected with mining, the limits of the land devoted to other uses within the area, etc. The map herein provided for must be of the same size as the following one. Changes in it must be made within six months of its drawing.

(b) This map of the mining area, or a copy of the first one, will depict the geological formation of the land, the alluvial deposit, what land is given over to placer mining, all cavities, mouths of shafts, excavations, waterways, bodies of water, places used for the storage of different kinds of minerals, official roads, railroads, cart roads, wires for the transmission of electic power, telegraph lines, telephone lines, tap lines, size of conduits, sheds—whatever can be seen on the surface of the land. All the above must be protected and not dug up; this map may be altered not later than one year after its making.

(c) This map of the mine, copied from the former map, must show also the boundaries of the mining area, the different shaft openings, the drifts with their connected openings, the length of underground workings, places for storing blasting material, the veins then being worked, the galleries, the underlying strata, the foot and hanging walls, other elements mixed with the main body of ore, important alterations in the galleries—all this should be clearly noted; whatever other kinds of veins there are, the geological formation of the body of the ore, the work on the different levels, etc., must be described to the deputy on another map.

These maps should be changed when necessary within three months of the time set for their completion.

(d) The plans of the workings should be sectional as well as inclusive; they should depict also the strata, the veins, and the drifts, the character of the partition walls, and the different contacts. These maps must be changed when necessary within one year of the time set for their completion.

60. All the maps should be drawn on a decimal scale; the maps required in (a) and (b) of the last article shall be proportioned to the size of the mine on the scale of 500 to 1, of 1,000 to 1, 2,500 to 1, or 3,000 to 1; but the maps required in (c) and (d) of the last article must be drawn on a scale of 500 to 1 or 1,000 to 1.

61. If it is desired to relinquish part or the whole of a mine the working plans must be completed up to the time when it is intended to abandon the said part or whole of the mine; when any particular workings are to be abandoned they must be minutely described before permission will be given to abandon them. If a mine operator desires to conclude his operations because the mine is useless then he should notify the deputy, and with 60 days he must remove from the land all the houses or other evidences of his work; if anything remains after 60 days it will belong to the proprietor of the land; but the mining deputy must examine within and without the mine, and nothing necessary to the entirety of the land must be removed. If the mining operator has absconded to parts unknown the provisions of the article shall still be complied with.

62. Mining operators should make accurate copies of the maps required by article 59 and deposit them with the head office for its information.

63. The maps required by article 59 should be copied and deposited with the head office on the first day of the sixth moon of each year; the maps required in (c) should be filed twice a year on the first days of the sixth and twelfth moons, respectively.

64. Should the mining merchants fail to forward these plans or fail in any of them to note the particulars required, the head office will depute its own engineer to draw up the plans properly, and all expenses of this work must be borne by the mining merchants.

65. The head office must not give these plans or show them to others without the proprietor’s special permission.

66. Imperfections and inaccuracies in any of the maps or any hesitancy displayed in the reporting about or granting any information concerning a section of the mine, will render the proprietor liable to a fine of not more than taels 2,000, or imprisonment for not more than one year.

67. All earth excavated from the underground works must be piled up on either side of the works and steps taken to protect the mouth of the shaft and guard against accidents.

68. Should the inspecting deputy discover that any place on which experimental works have been started is inconvenient to the locality or dangerous to life, the worker must be required to fill in the excavations and make the place safe.

69. Every open space, shaft head and pit, in the mine area must be fenced around or otherwise guarded against.

70. Any graves on the mining area must be respected and protected and no mining work must be carried on within the limits of their inclosures. The distance from any imperial tomb or the tomb of any illustrious sage must be at least 30 li, while that from the tomb of any formerly noted statesman or official must be 3 li and from the graves of ordinary persons of literary rank 500 feet, and these limits must not be encroached on either above or below ground. Should the presence of graves within the mining area cause great inconvenience and loss, the local officials may be appealed to and if they can make arrangements with the owners, the graves may be removed after suitable compensation has been paid. The opening of a mine in any locality must not be opposed on the foolish excuse of “Fengshui,” but if the enterprise really causes serious disadvantage to any district and is likely to cause unrest, it is advisable to discourage it. The mining promoters may report any such case to the deputy who will refer it to the head office for settlement.

71. Mining merchants may at any time, if they choose, decrease the area of the mining boundary provided they duly report the matter to the deputy and the alteration is made on the plan, and provided that all boundary lines are laid out in accordance with article 32 of the principal regulations.

72. When a mining deputy receives an application for permission to relinquish part of a mining area, he must dispatch an engineer to draw a plan of the land and set up the necessary boundary marks on the remaining land. The work must be completed within 60 days and the fee for the services of the engineer must be met by the applicant.

When the map is completed it must be presented to the deputy and the latter should note the fact in the record of the original application and note on the mining permit the amount of land relinquished, after which the said permit should be returned to the applicant for evidence.

73. The mining permit may be canceled if the mining merchant desire, after he has duly reported his intention to the head office which will deal with the petition in accordance with article 61 of these regulations.

[Inclosure 3.]

Synopsis of the Revised Mining Regulations of China.

[Approved September 30, 1907. To go into effect March, 1908.]

The mining regulations place the control of mining operations in the board of agriculture and commerce.

Applications of foreigners must be made to the board through the Wai-wu-pu.

Mining bureaus are to be established in each Province, to which will be referred all applications relating to mines in that Province.

Fees consist of, 1, annual rental; 2, royalty on output; and 3, a bonus if the mine is situated on Government land.

Mining operations heretofore authorized must be reported in detail within two years and conform in all respects to the new regulations. However, if the new regulations prove disadvantageous to the mines now being operated, objection must be made within six months, and there may be exceptions made.

All new mining enterprises are to be governed by these regulations.

Foreigners are not entitled to own land in China, and in case of foreign and Chinese cooperation in a mining venture the interest of the foreigner ceases with the mining operations.

Foreigners will be permitted to cooperate with Chinese in mining operations.

If a Chinese enters into such a partnership by giving his land for development by the foreigner, he (Chinese) is entitled only to a share of the surplus profits and is free from any liability of financial loss. If, however, he declines to enter into such partnership and prefers to sell his land, he must sell it to the Chinese authorities, who will lease it to the operators.

A Chinese who enters into a mining partnership financially (i. e., otherwise than by giving land as above) will have an equal share of the profits, power, and labilities.

If, however, the Chinese is simply a land partner and there are no other Chinese financial partners, the foreigners interested must reserve three-tenths of the shares for 5 years, which any Chinese desiring to enter shall have option of buying at par. If at the end of 5 years the option is not exercised, one-half of these reserved shares may be sold, and at the end of 5 more years the remainder may be sold if the Chinese option is not exercised. But shares must be sold to Chinese, if there be any demand, at market price at the end of 10 years.

Foreigners whose country has no treaty with China, or does not grant China similar privileges, or foreigners who fail to observe Chinese law, or who have committed offenses against the laws of their own country will not be allowed to engage in mining enterprises, nor will official representatives nor foreign employees of China or foreign Governments.

Salt is a Government” monopoly and can not be mined.

Minerals are (1) constructive, (2) phosphorous, or (3) a combination of both, as iron, coal, etc.

If mining land is sold to foreigners privately, the vendor will be punished and the land confiscated.

No mines will be permitted to be operated by foreigners only without Chinese partners.

Output must be reported to head mining bureau and may not be sold or exchanged or mortgaged privately.

All applicants for prospecting permits must state the position, the locality, and class of minerals sought, and give bond. If a permit is issued, the prospector is allowed one year for the work, and may be granted six months in addition, but no extension will be granted unless a mining engineer with a mining college certificate has been engaged within two months of the granting of the permit.

Prospecting permits will not embrace a greater area than 30 Chinese li (10 miles) and are untransferable.

Mining permits will be granted after prospecting is completed upon application giving full particulars and entering into a bond for 10,000 taels.

Mining fees shall be paid as per schedule, and the export duty on materials exported.

Article 49 provides: “That all foreign subjects of treaty powers who wish to engage in mining enterprises will be termed ‘mining merchants’ and recognized as having conformed to Chinese law.” They must comply with present and all future mining laws. If these points are understood, foreigners may engage in mining as much as they like.

A mine not worked for a year will be deemed abandoned.

If any risk or damage be sustained through mismanagement of the work the responsibility will rest with the “mining merchants.” If others suffer loss thereby the bureau will investigate and the “mining merchants “may be compelled to pay compensation.

The mining bureau may order work stopped and the loss due to the stoppage must be borne by the “mining merchants,” and the foreign ministers and consuls can not be allowed to interfere.

Mining in certain localities and felling of timber are restricted.

The status of a foreigner entering into a mining partnership must be certified by his consul with a declaration that the applicants are in a position to conform with these regulations.

Passports for foreigners to travel in the interior are still necessary, and the illegality of foreigners leasing houses, building houses, and other stores in the interior still obtains.

Litigation where a Chinese, not a partner, is concerned will be settled according to Chinese law.

Should any foreign mining partner commit any offense the Chinese authorities must investigate the case and adjudicate if his consul is far from the place where the offense was committed, and if the accused seeks to run away the Chinese authorities may temporarily arrest him and convey him to the nearest consul for trial under his own law according to treaty.

The Chinese authorities should not insist on interfering.

Should the consul in such case decide unfairly and not do justice to the Chinese concerned, and the authorities are not satisfied, then foreigners of that nationality will not be in future allowed to have any mining privileges in that Province.

A foreigner engaged in a mining enterprise may appeal a dispute, if he have one, in connection with the mining venture, to the bureau or provincial judge, viceroy, or board of agriculture and commerce, but the consul or minister must not interfere. If the point at issue is not covered by these regulations foreign mining regulations may be consulted, but the principle of these regulations must not be violated.

Recreation grounds will be set aside for foreigners.

Should the bureau or local authorities consider any place unsafe as a place of foreign residence a permit will not be granted.

Articles 65 to 74 relate to labor and police conditions, the employment and discharge of men, payment of damages for injuries, etc.

The supplementary regulations which accompany and form part of the preceding mining regulations provide for the appointment of inspectors, called mining deputies, and prescribe their duties.

Foreigners may not be appointed deputies.

Forms of applications, certificates, etc., are prescribed.

If owner and prospector fail to agree as to price of land the matter is referred to the deputy within two months.

The land must be measured and plotted within 10 days of filing of mining application, which shall not cost more than 50 taels.

Plans of the mining operations must be filed within 60 days.

The method of marking the boundaries is pointed out.

Protests must be made within four months of the granting of the permit and the grounds on which the protest may be based are indicated.

The deputies are authorized to endeavor to settle disputes by calling parties together.

If other minerals be found than those specified in the permit the matter must be reported to the bureau for decision before they are worked.

In case of an extension of area being desired the manner of expropriation and assessment is laid down.

The effect of the mining operations upon abutting or adjacent land is guarded and rules of procedure for adjustment of damages are outlined.

Monthly reports must be made to the deputy or inspector showing the number of employees, the output, and full particulars of the operations upon forms to be provided for the purpose. Additional reports may be called for by the deputy.

Ground rent must be paid semiannually to the bureau.

The taxes on the output of the mines must be paid to the bureau on the 15th of each month; one-half of the revenue derived from mining taxation goes to the Department of Agriculture and Commerce, the other half to the provincial treasury,

The bureau fixes the rate of assessment every six months. It will be based on market prices of product for preceding six months.

Provision is made for full records to be kept and for their force and effect at law.

Fees are as follows:

	Taels.
Mining permit—gold, silver, aluminum, or precious stones—each permit	10.0
Mining permit for other minerals	2.5
Mining permit for more than 1 and under 40	100.0
Property permit	50.0
Replacing lost permit	30.0
Tunnel permit	30.0
Permit to discard part of grant	20.0
Certification of map or document	2.0

These fees are payable to the head bureau and fees received from mining permits must be sent to the Department of Agriculture and Commerce.

Fees for office expenses are payable to the deputy, as follows:

	Taels
Petition for prospecting permit, filing, and recording	2.0
Protest against operations	2.0
Application for alterations	2.0
Copying, certifying, etc., for every thousand characters or less	1.0
Travel on public business, per li (one-third of a mile)	.2
Reports of inspection (surface)	5.0
Reports of inspection (underground)	5.0
Inspection (underground)	5.0
Certifying maps	1.0

Record books must be kept by all operators, consisting of daybook and ledger, showing all details of output, sales, etc., in the form prescribed by the mining bureau.

Accurate maps, corrected every six months, must be made of the mine and they must show geological formation, alluvial deposits, shafts, tunnels, storehouses, roads, railroads, wires, conduits, sheds, boundaries, openings, drifts, etc.

These maps must be open to inspection.

Specific details are prescribed with reference to the preparation, correction, and filing of these maps. Imperfections and inaccuracies render proprietor liable to a fine of not more than 2,000 taels.

Safeguards for open shafts, etc., are prescribed.

Mining operations are forbidden in graveyards unless permission of owners be secured. But foolish objections on the ground of “Feng shui” (interference with local spirits) will not be listened to.

Mining operations can not be carried on within 30 li (10 miles) of an imperial tomb or tomb of an illustrious sage, nor within 3 li of the tomb of a noted statesman or official, nor within 500 feet of the tomb of a person of ordinary literary rank.

[Inclosure 4.]

The British Minister to the Prince of Ch’ing.

Peking, November 21, 1907.

Your Highness: I have the honor to acknowledge the receipt of Your Highness’s note of October 14, transmitting a copy of the Mining Regulations submitted to the Throne by the Wai-wu-pu and board of commerce and sanctioned by imperial rescript.

Owing to the length of this document the work of translation has only been completed within the past few days, and I regret to find on reading the Regulations that they offer little inducement to foreign or native capitalists to engage in the development of mines in China. I have formed this opinion, as far as foreign enterprise is concerned, from those sections of the regulations—for example, sections 4, 10, 49, 60, 61, 62, etc.—which seek to place foreigners under Chinese jurisdiction and to deprive them of extraterritorial rights. It need scarcely be said that British subjects are not prepared to submit themselves to such conditions, or that His Majesty’s Government is not yet satisfied that the state of the Chinese laws warrants her relinquishment of her extraterritorial privileges.

Since the above-mentioned articles are entirely contrary to the stipulations of existing treaties, I am at a loss to understand Your Highness’s object in submitting them to the Throne for sanction.

British enterprise in mines being thus rendered impossible at the outset, it is not necessary for me to deal with the many grave objections presented by the rules affecting partnership, the payment of dues, the division of profits, and the numerous restrictions regarding the time limits allowed for prospecting, and the area of mining properties.

But the Regulations do not only stand in the way of new mining enterprises. By section 8 it is laid down that existing mining agreements must be submitted for revision. Here again I am unable to understand the object of Your Highness’s board in laying before the Throne a regulation which China has not the power to enforce.

By the commercial treaty of 1902, Article IX, the Chinese Government agreed within one year to revise the existing Mining Regulations, with a view to attracting foreign as well as Chinese capital to embark in mining enterprises. Five years have been spent in the production of rules which are contrary to treaty, hostile to the employment of foreign capital, and entirely unworkable. The issue of such an enactment under imperial sanction reflects, in my opinion, small credit upon those responsible for its preparation, and brings into disrepute the Chinese Government itself by thus disregarding the engagement made in 1902.

I have the honor to request that the criticisms which I have offered may be carefully considered, and that steps may be taken to prevent these Regulations from coming into effect till they have been thoroughly revised in consultation with other powers.

I avail, etc.,

Sir John Jordan.