File No. 9146/14–16.
Ambassador O’Brien
to the Secretary of State.
[Extract.]
American Embassy,
Tokyo, June 2,
1908.
No. 341.]
Sir: I have the honor to inclose herewith copy
in duplicate of a translation published in the Japan Times of the recent
agreement entered into between China and Japan, entitled “Yam Forestry
Agreement.” The department will have received full information in regard
to the nature and object of this agreement through our vice consul at
Antung.
I have, etc.
[Inclosure.]
[The Japan Times, Tokyo, Friday, May 29, 1908.]
The Yalu Forestry Agreement.
The following is our translation of the Yalu forestry agreement:
Baron Gonsuke Hayashi, Japanese Envoy Extraordinary and Minister
Plenipotentiary, and Na Tung, Minister of the Foreign Office of
China, each acting under instructions from their respective
Governments, conclude the following Regulations of the
Chino-Japanese Timber Company, in accordance with Article X, of the
protocol annexed to the Chino-Japanese Agreement relating to
Manchuria concluded on the 22nd December, the 38th Year of Meiji,
that is on the 26th November, the 31st Year of Kuangsu.
- Article I. The timber within the
limits of 60 Chinese miles from the surface of the Yalu on the
right bank of the river between Maœrhshun and Jishihsz’taokeu
shall be felled by joint capital of China and Japan. The limits
will be designated by posts to be erected by Chinese
commissioners to be dispatched from Mukden, in consultation with
Japanese commissioners. But in the beginning of the organization
of the company the business shall be conducted by a bureau
composed by officials dispatched from both countries, and on the
lapse of one year and after all business has been placed in good
order, both countries shall call for general shareholders and
cause them to succeed to it.
- Art. II. The timber company under
joint proprietorship of Japan and China is called the Oryokko
Saiboku (Yalu Timber Company).
- Art. III. The company shall have a
capital of 3 million yen, China and Japan producing a half of
the sum.
- Art. IV. The company shall establish
its head office at Antung. In case the company deems it
necessary, it may establish branches at different places by
informing the fact to President.
- Art. V. The company agrees to
maintain the existing Chinese woodcutters. The district within
the limits declared in Article I belong to the timber felling by
the company, but the forests outside the limits and on the
Hun-ho belong still to the felling of the present Chinese
woodcutters. But these woodcutters shall borrow the capital they
need from this Company. The woodcutters may directly sell their
timber as sleepers to the Kiangche Railway Company and to
[Page 503]
the inhabitants on the
banks of the Hun-ho for their own use. Outside of this, the
whole of the timber felled by the woodcutters shall be purchased
by the Company. The latter shall sell the timber in accordance
with the market price and not charge arbitrary prices.
- Art. VI. In Case the Chinese
Government or officers demand timber felled by the Company or
purchased by it from the woodcutters, they shall make purchases
from the company by giving it a certificate (letter of
guarantee). In such case the company shall supply timber at cost
price and ought not to raise the price.
- Art. VII. The business term of the
company shall be 25 years. But on expiration of the term and in
case the Chinese Government deems the Company’s business to be
sound the Company may apply to the Chinese Government for
permission to prolong its term of business.
- Art. VIII. The Company shall have a
President, whose position shall be held by the Taotai of the
Eastern Borders, by order of the Mukden Viceroy or Governor, and
who shall superintend the business of the Company. The Company
again shall have two chief directors, China and Japan appointing
one respectively. They shall manage the entire business of the
Company. Other directors and engineers shall be appointed by the
conference of directors. In case a foreigner is required for
felling timber within the said districts, the chief directors
shall apply to the President for permission to engage the
same.
- Art. IX. The Company shall submit,
at the end of each year, to the authorities concerned of both
countries, the business report and accounts for that
year.
- Art. X. The Company shall pay five
per cent, of net profits (gross income minus gross expenditure)
to the Chinese Government as royalty, and distribute the rest of
the profit equally among Chinese and Japanese shareholders. No
arbitrary payment of the Company’s expenses is allowed. The
estimates of Salary of the Company’s employees and all other
expenditure shall be submitted to the President for sanction on
proper occasions.
- Art. XI. All regulations relating to
the organization of the Company shall be decided upon by two
commissioners, each to be appointed by the Mukden Viceroy or
Governor and Japanese Consul-General at Mukden within one month
after conclusion of this general agreement. The Company shall be
opened to business in three months after receiving its
regulations. Any regulations that the Company may provide
afterwards shall be submitted to the President for
sanction.
- Art. XII. The timber tax to be paid
by the Company shall have some reduction, at the consent of
local authorities, by the conference of the commissioners of the
two countries meeting at Mukden to provide detailed regulations
for the Company. But all machinery and tools that may be
imported by the Company and that are required for timber felling
shall be exempt from all taxes, likin, and other duties.
- Art. XIII. The Japanese Government
consents to abolish its Yalu Timber Works on the opening of the
Company for business.
(Sgd.)
Baron Gonsuke
Hayashi,
Envoy Extraordinary and
Minister Plenipotentiary of Japan.
(Sgd.)
Na Tung,
Minister of Foreign Affairs of
China.
Peking, May
14, 41st Year of Meiji of Japan; April 15, 34th Year of
Kuangsu of China.