File No. 893.51/1990
The Chargé in China (
MacMurray) to the Secretary of State
[Extract]
No. 2160
Peking,
July 27, 1918.
Sir: I have the honor to enclose herewith
a translation of the agreement between certain Japanese banks and
the Chinese Government for a loan of yen 30,000,000, secured upon
the forests and gold mines of the two Provinces of Kirin and
Heilungkiang, recently concluded, together with certain accompanying
letters,2 these translations being those published in the
Peking Leader of July 24, 25 and 26, 1918.
Although the translations do not claim to be authoritative, I have
been reliably informed that they are at least substantially
accurate.
I venture to direct the particular attention of the Department to
Articles 8 and 9 of the principal agreement, the provisions of which
appear to establish in favor of Japanese interests an effectively
exclusive right of working the forests and gold mines in the two
northern provinces of Manchuria. In view of the apparent endeavor to
establish such a monopoly as was repudiated by both the Japanese and
Chinese Governments in the case of the agreement concerning mines
and railways in Manchuria in 1909,3 I have addressed to the Foreign Office a
note, a copy of which is enclosed herewith, inviting attention to
the earlier case, and requesting to be advised of the authenticity
of the translation published in the Leader,
in order that I might be able to present for your consideration the
question suggested by these provisions. …
I have [etc.]
[Page 163]
[Enclosure]
The Chargé in China (
MacMurray) to the Chinese Minister for Foreign
Affairs (
Lu Cheng-hsiang)
No. 804
Peking,
July 27, 1918.
Excellency: On the 16th of November
1909 the American Legation addressed a note1 to the Prince of Ch’ing in regard to
the joint Chinese-Japanese agreement of September 4, 1909, for
the joint Chinese-Japanese exploitation of mines along the South
Manchuria and Antung-Mukden Railway, inquiring whether this
agreement involved a monopoly of the rights and privileges of
opening mines in the territory designated in the agreement to
the exclusion of Americans and others. To this note the Prince
of Ch’ing replied on the 18th of November 1909,1 stating that the said agreement did
not involve a monopoly, nor confer any exclusive rights to mines
therein upon Japanese subjects, but that mines in the territory
mentioned may, with the consent of the Chinese Government, be
exploited by third parties also. On the 25th of November 1909,
the Japanese Minister of Foreign Affairs sent a note2 to
the American Embassy at Tokyo, in which he said:
The provisions of the agreement of September 4, in
reference to joint exploitation of mines along the
railways do not and were not in any way intended to
involve a monopoly of the right to discover, open and
operate mines in Manchuria, to the exclusion of
Americans or any other persons.
In the Peking Leader of July 24, 25, and
26, there appears a translation of the Kirin forestry loan
agreement between the Chinese Government and the Japanese banks,
together with several notes exchanged. I have the honor to
inquire if this may be relied upon as a faithful rendering of
the text of the agreement.
In this text Article 8 reads as follows:
The “A” party agrees to pledge to the “B “party the
following articles as security for the repayment of the
loan and the payment of interest:
(1) All the gold mines and government-owned forests in
the two provinces of Kirin and Heilungkiang.
Article 9 reads in part as follows:
Whenever, during the currency of this agreement, the “A”
party desires to contract a loan or loans from another
party on the aforesaid gold mines and government-owned
forests or on other incomes derived therefrom, the said
party shall consult with the “B” party beforehand.
In view of the questions suggested by the provisions quoted I
have the honor to request your excellency to be so good as to
advise me as to the accuracy of the texts of the loan agreement
and of the five attached letters, in order that I may be enabled
to lay the matter before my Government for its
consideration.
I avail [etc.]
