Office of the Historian

Minister Rockhill to the Secretary of State.

American Legation,
Peking, November 25, 1908.
No. 1049.]

Sir: I have the honor to transmit herewith a translation from the Chinese text of the supplementary agreement signed on the 12th instant concerning the construction of the Kirin Ch’ang-chun Railway, here called the Chi-ch’ang Railway, in Manchuria.

I have, etc.,

W. W. Rockhill.
[Inclosure—Translation.]

Supplementary Agreement between Japan and China.

According to article 4 of the Hsin-Feng and Chi-Ch’ang Railway agreement between the two Governments of Japan and China, dated Ming Chih, fortieth year, fourth month, fifteenth day; Kuanghsü, thirty-third year, third month, third day (April 15, 1907), it was agreed that before settling the loan contract for the said railways, the two Governments should draw up a supplementary agreement regarding matters not settled in the original agreement.

Now, the two officials designated below have concluded the following agreement:

  • Article 1. It is agreed by articles 1 and 2 of the “Hsin-Feng and Chi-Ch’ang Railway agreement between the Governments of Japan and China” (hereafter to be called the agreement) that half of the capital needed for that portion of the Ching-Feng Railway lying east of the Liao River, amounting to 320,000 yen, and half of the capital needed for the Chi-Ch’ang Railway, amounting to 2,150,000 yen, should be borrowed from the Southern Manchurian Railway Company.
  • Art. 2. The interest on this loan shall be at the rate of 5 per cent per annum.
  • Art. 3. The actual rate at which the loan shall be realized shall be 93 for every 100 as agreed upon in article 6 of the agreement.
  • Art. 4. It is stipulated in article 3 of the agreement that during the term of the loan, the Chinese Government shall employ a Japanese engineer in chief for that portion of the Ching-Feng Railway, which lies east of the Liao River. For the present the Japanese engineers now in the employ of he Ching-Feng Railway may continue to act and as at present will continue to be under the control of the director and engineer in chief of the Ching-Feng Railway. If in future changes are made in the engineering staff, as provided in the agreement, application shall be made to the Southern Manchurian Railway Company, which will make appointments after full consultation. The status of these engineers shall be as stated above.
  • Art. 5. Since it as difficult for the Chinese Government to keep separate accounts for that portion of the Ching-Feng Railway which lies east of the Llao River, the Japanese Government consents that no Japanese accountants shall be specially appointed, and the Japanese Government consents that the Chinese Government shall set aside monthly a sum calculated to be sufficient for the monthly payment of capital and interest on the amount of the loan for the said section of railway. This sum shall be deposited on the 1st day of every month in some Japanese bank in China, designated by the Southern Manchurian Railway Company. This deposit shall be regarded as a sinking fund for the redemption of the capital and interest of the loan when due. The manner of making the payments of the capital and interest of the loan when due, and the interest which shall be allowed by the bank on the sums deposited shall be decided when the detailed loan contract is drawn up. The Chinese Government also consents that the monthly balance sheets for the whole Ching-Feng Railway line and the annular exact statement of accounts in English shall be sent monthly and annually to the South Manchurian Railway Company for inspection.
  • Art. 6. The engineer in chief and the accountants of the Chi-Ch’ang Railway should all be Japanese, as provided in article 3 of the agreement. The method [Page 208] of appointment shall be as follows: The Chinese Government will select a well-trained and capable engineer in chief and appoint him, after full consultation with the South Manchurian Railway Company. The accountants shall be selected by the South Manchurian Railway Company, and after consultation with the Chinese Government the Chinese Government shall appoint them. If in the future it shall be necessary to change the engineer in chief or accountants, there must be consultation with the South Manchurian Railway Company according to the agreement, and the appointments must be made as arranged above.
  • Art. 7. The special loan contract must conform to the stipulations of the agreement and of this supplementary agreement. It will be drawn up between the South Manchurian Railway Company and an official appointed by the board of posts and communications.

This supplementary agreement will be in force when ratified by the two Governments.

Signed at Peking, Ming Chih, forty-first year eleventh month twelfth day; Kuang-has, thirty-fourth year tenth month nineteenth day (November 12, 1908).

Moritaro Abé,
First Secretary of Legation.
Liang Shih-I,
Director of the Head Railway, Office of the Board of Posts and Communications.