Section II.—China (Art. 128 to 134)

Notes to Part IV, Sections II to VIII, Articles 128 to 158

The treaty restoring friendly relations between the United States and Germany signed at Berlin August 25, 1921 and in force on November 11, 1921 with retroactive effect to July 2, 1921 stipulates in article II (3) “that the United States assumes no obligations under or with respect to the provisions” in sections II–VIII. The Senate of the United States, in its resolution of October 18, 1921 giving advice and consent to the ratification of the treaty restoring friendly relations, stipulated “that the United States shall not be represented or participate in any body, agency or commission, nor shall any person represent the United States as a member of any body, agency or commission in which the United States is authorized to participate by this Treaty, unless and until an Act of the Congress of the United States shall provide for such, representation or participation.”

Part IV, sections II–VIII, were not printed as a schedule of the treaty restoring friendly relations by the Department of State in Treaty Series 658, nor in 42 Stat. 1939. The entire treaty of peace with Germany, as well as those with Austria and Hungary, was printed as a separate appendix to the treaty restoring friendly relations in the volume compiled under resolution of the Senate of August 19, 1921, and published as Senate Document 348, 67th Congress, 4th session, serial 8167 (Treaties, Conventions, etc., 1910–23, iii, 3329).

Article 128.

Germany renounces in favour of China all benefits and privileges resulting from the provisions of the final Protocol signed at Peking on September 7, 1901, and from all annexes, notes and documents supplementary thereto. She likewise renounces in favour of China [Page 284] any claim to indemnities accruing thereunder subsequent to March 14, 1917.

Note to IV, 128

The final protocol of September 7, 1901 (Treaties, Conventions, etc., 1776–1909, ii, 2006) gave Germany, Austria-Hungary, Belgium, Spain, the United States, France, Great Britain, Italy, Japan, the Netherlands, and Russia indemnity for the Boxer outbreak as well as treaty rights and rights of occupation in China. Germany was eliminated by this article, as were Austria and Hungary in the treaties of peace with them, by articles 113 and 97 respectively.

Germany had been chiefly responsible for fixing the indemnity at the very high figure of 450,000,000 Haikwan taels gold ($333,900,000) at 4 percent, payable during 40 years.

The United States Government obtained from Congress on May 25, 1908 (35 Stat. 577) authorization to reduce its total receipts from China from $24,440,778.81 to $13,655,492.69 and to remit $11,961,121.76 to China for educational purposes. The remitted amount was devoted by China to paying the expenses of selected Chinese students in the United States.

Understandings reached by memoranda exchanged between the representatives of Belgium, France, Great Britain, Italy, Japan, Portugal, and Russia on September 8, 1917, and the Chinese Foreign Office on October 6, 1917, provided, among other things, for a postponement without interest of the annual instalments during a period of five years (Foreign Relations, 1917, supp. 2, i, 686, 702). German and Austro-Hungarian benefits were then said to be abrogated, and this was effected in the treaties of peace by formal renunciation. The Chinese Government proposed a further two-year postponement in a note of June 19, 1922 (ibid., 1922, i, 809). This was dropped when it appeared that (1) Italy refused; (2) France was devoting receipts to rehabilitation of the Banque industrielle de Chine; and (3) Japan was opposed in principle. In November 1922, however, the British and United States Governments agreed between themselves that they would remit the indemnity when they had legislative authorization to do so.

The chairman of the Senate Committee on Foreign Relations in 1921 asked for information concerning the status of the indemnity and, on the basis of that information, introduced a proposal which, as a joint resolution of Congress approved May 21, 1924 (43 Stat. 135), authorized the remission of the balance due under the original bond, then amounting to $6,137,552.90, which [Page 285] was devoted by China to establishing the China Foundation for the Promotion of Education and Culture (ibid., 1925, i, 935). British acts of Parliament of June 30, 1925 (15 & 16 Geo. V, c. 41) and March 3, 1931 (21 Geo. V, c. 7) established the China Indemnity Fund for the management of sums received after December 1, 1922 on account of the indemnity. The fund was applied to mutually beneficial educational or other purposes under the direction of the Chinese Government Purchasing Commission (121 British and Foreign State Papers, p. 273; and 134 ibid., p. 20). The funds were used for railroad rehabilitation under the provisions of an exchange of notes of September 19 and 22, 1930 (132 ibid., p. 230).

The Soviet Union renounced the Russian share of the indemnity by a declaration of May 31, 1924 accompanying the agreement with China for the settlement of pending questions (37 League of Nations Treaty Series, p. 176; 122 British and Foreign State Papers, p. 269). A fund for the promotion of education among the Chinese people was to be set up under a commission appointed by both Governments.

The Soviet Union by article III of the agreement of May 31, 1924 agreed to annul all instruments concluded by the Tsarist Government with China at a future conference. This meeting was held in August 1925 without, however, definite results (China Year-Book, 1926, p. 1096).

In its treaty with China of January 11, 1943 the United States agreed “that the rights accorded to the Government of the United States of America under that Protocol [of September 7, 1901] and under agreements supplementary thereto shall cease” and stated its opinion that the protocol itself should be terminated. This treaty for the relinquishment of extraterritorial rights in China and the regulation of related matters entered into force on May 20, 1943 (Treaty Series 984). The United Kingdom’s treaty with China of even date effected the same result (United Kingdom, Treaty Series No. 2 (1943); Cmd. 6456). Belgium concluded a similar treaty with China on October 20, 1943; the Netherlands on May 29, 1945; and France on February 28, 1946.

The position of Italy, Japan, and Spain with respect to the protocol of 1901 remains to be regulated.

March 14, 1917 is the date of China’s breaking off diplomatic relations with Germany; war was declared as of August 14, 1917, 10 a.m.

Article 129.

From the coming into force of the present Treaty the High Contracting Parties shall apply, in so far as concerns them respectively: [Page 286]

The Arrangement of August 29, 1902, regarding the new Chinese customs tariff;
The Arrangement of September 27, 1905, regarding Whang-Poo, and the provisional supplementary Arrangement of April 4, 1912.

China, however, will no longer be bound to grant to Germany the advantages or privileges which she allowed Germany under these Arrangements.

Note to IV, 129

China did not sign this treaty for reasons connected with the terms of articles 156–58. The agreements between China and Germany of May 20, 1921 regarding the restoration of peace (9 League of Nations Treaty Series, p. 271) consist of a covering letter, a German declaration and a Chinese letter of confirmation, an agreement, and an exchange of notes. In the covering letter the German Consul General at Peking wrote to the Chinese Minister for Foreign Affairs:

“In compliance with instructions from my Government, I have the honour to inform you once more that it is not prepared at the present time to declare again its general recognition of the Treaty of Versailles. Such a step would be equivalent to a voluntary acceptance of the Treaty on the part of the German Government, and would prejudice the subsequent revision of the said Treaty. The German Government would not, however, raise any objection should China, apart from the provisions of Articles 128 to 134 of the Treaty, avail herself of certain other rights which she derives from the Treaty, and which she may consider of importance to herself, either in their present form or, should the Treaty be revised, in their modified form.”

According to the preamble of the declaration “Germany undertakes to fulfil toward China the obligations arising out of articles 128 to 134.” Germany in the declaration consented to the abrogation of consular jurisdiction in China. By the agreement diplomatic agents were exchanged and rights of residence accorded.

The arrangement of August 29, 1902 (37 British and Foreign State Papers, p. 695) was signed by the United States, though not brought into force by it. A treaty between China and the United States signed October 8, 1903 (Treaty Series 430; Treaties, Conventions, etc., 1776–1909, i, 261) was applicable at the conclusion of this treaty, as well as similar bilateral treaties with Great Britain and Japan. The treaty between the United States, Belgium, the British Empire, China, France, Italy, Japan, the Netherlands, and Portugal [Page 287] relating to the Chinese customs tariff signed at Washington February 6, 1922 (Treaty Series 724: Treaties, Conventions, etc., 1910–23, iii, 3125) provided for a Revision Commission which met at Peking from October 1925 until July 1926. China’s tariff autonomy by January 1, 1929 was contemplated but not realized by that date.

The arrangements regarding the Whang-Poo conservancy (near Shanghai) are printed, ibid., 1776–1909, ii, 2013, and ibid., 1910–23, iii, 3043, where the supplementary article of January 19, 1916 is also given.

Article 130.

Subject to the provisions of Section VIII of this Part, Germany cedes to China all the buildings, wharves and pontoons, barracks, forts, arms and munitions of war, vessels of all kinds, wireless telegraphy installations and other public property belonging to the German Government, which are situated or may be in the German Concessions at Tientsin and Hankow or elsewhere in Chinese territory.

It is understood, however, that premises used as diplomatic or consular residences or offices are not included in the above cession, and, furthermore, that no steps shall be taken by the Chinese Government to dispose of the German public and private property situated within the so-called Legation Quarter at Peking without the consent of the Diplomatic Representatives of the Powers which, on the coming into force of the present Treaty, remain Parties to the Final Protocol of September 7, 1901.

Note to IV, 130

The “glacis” appertaining to the German Legation at Peking was renounced by the declaration of May 20, 1921 in favor of China under the conditions of this article.

Article 131.

Germany undertakes to restore to China wthin twelve months from the coming into force of the present Treaty all the astronomical instruments which her troops in 1900–1901 carried away from China, and to defray all expenses which may be incurred in effecting such restoration, including the expenses of dismounting, packing, transporting, insurance and installation in Peking.

[Page 288]

Article 132.

Germany agrees to the abrogation of the leases from the Chinese Government under which the German Concessions at Hankow and Tientsin are now held.

China, restored to the full exercise of her sovereign rights in the above areas, declares her intention of opening them to international residence and trade. She further declares that the abrogation of the leases under which these concessions are now held shall not affect the property rights of nationals of Allied and Associated Powers who are holders of lots in these concessions.

Article 133.

Germany waives all claims against the Chinese Government or against any Allied or Associated Government arising out of the internment of German nationals in China and their repatriation. She equally renounces all claims arising out of the capture and condemnation of German ships in China, or the liquidation, sequestration or control of German properties, rights and interests in that country since August 14, 1917. This provision, however, shall not affect the rights of the parties interested in the proceeds of any such liquidation, which shall be governed by the provisions of Part X (Economic Clauses) of the present Treaty.

Note to IV, 133

Germany, in the declaration of May 20, 1921, was prepared to reimburse the Chinese Government for the cost of interning German troops in China. This was in addition to reparation and was effectuated by a payment of $4,000,000 and debentures of the Tientsin-Pukow and Hukuang Railway.

Article 134.

Germany renounces in favour of the Government of His Britannic Majesty the German State property in the British Concession at Shameen at Canton. She renounces in favour of the French and Chinese Governments conjointly the property of the German school situated in the French Concession at Shanghai.

Note to IV, 134

Reparation credits to Germany under this article were: German school in French concession at Shanghai, 1,888,456 gold marks; property in the British Concession at Shameen, 538,049 gold marks.