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No dues shall be demanded from Chinese ships of war and merchantvessels in the Bay of Kiao-chau, except those which may be levied upon other vessels for the purpose of maintaining the necessary harbor arrangements and quays.

ARTICLE V.

Should Germany at some future time express the wish to return Kiaochau Bay to China before the expiration of the lease, China engages to refund to Germany the expenditures she has incurred at Kiao-chau, and to cede to Germany a more suitable place.

Germany engages at no time to sublet the territory leased from China to another power.

The Chinese population dwelling in the ceded territory shall at all times enjoy the protection of the German Government, provided that they behave in conformity with law and order; unless their land is required for other purposes they may remain there.

If land belonging to Chinese owners is required for any other purpose, the owner will receive compensation therefor."

As regards the re-establishment of Chinese customs stations which formerly existed outside the ceded territory, but within the 50-kilom. zone, the Imperial German Government intends to come to an agreement with the Chinese Government for the definitive regulation of the customs frontier, and the mode of collecting customs duties, in a manner which will safeguard all the interests of China, and proposes to enter into further negotiations on the subject.

SECTIONS II AND III.

I. The Chinese Government sanctions the construction by Germany of two lines of railway in Shantung. The first will run from Kiao-chau and Tsinan-fu to the boundary of Shantung province via Wei-hsien, Tsinchow, Pashan, Tsechuen and Suiping. The second line will connect Kiao-chau with Chinchow, whence an extension will be constructed to Tsinan through Laiwu-hsien. The construction of this extension shall not be begun until the first part of the line, the main line, is completed, in order to give the Chinese an opportunity of connecting this line in the most advantageous manner with their own railway system. What places the line from Tsinan-fu to the provincial boundary shall take en route is to be determined hereafter.

II. In order to carry out the above mentioned railway work a Chino

German company shall be formed, with branches at whatever places may be necessary, and in this company both German and Chinese subjects shall be at liberty to invest money if they so choose, and appoint directors for the management of the undertaking.

III. All arrangements in connection with the works specified shall be determined by a future conference of German and Chinese representatives. The Chinese Government shall afford every facility and protection and extend every welcome to representatives of the German railway company operating in Chinese territory.

Profits derived from the working of these railways shall be justly divided pro rata between the shareholders without regard to nationality. The object of constructing these lines is solely the development of commerce. In inaugurating a railway system in Shantung Germany entertains no treacherous intention towards China, and undertakes not to unlawfully seize any land in the province.

IV. The Chinese Government will allow German subjects to hold and develop mining property for a distance of 30 li from each side of these railways and along the whole extent of the lines. The following places where mining operations may be carried on are particularly specified along the northern railway from Kiao-chau to Tsinan, Wei-hsien, Pashan-hsien and various other points; and along the southern Kiao-chauTsinan Chinchow line, Chinchow-fu, Laiwu-hsien, etc.

Chinese capital may be invested in these operations and arrangements for carrying on the work shall hereafter be made by a joint conference of Chinese and German representatives.

All German subjects engaged in such works in Chinese territory shall be properly protected and welcomed by the Chinese authorities and all profits derived shall be fairly divided between Chinese and German shareholders according to the extent of the interest they hold in the undertakings.

In trying to develop mining property in China, Germany is actuated by no treacherous motives against this country, but seeks alone to increase commerce and improve the relations between the two countries.

The Chinese Government binds itself in all cases where foreign assistance, in persons, capital or material, may be needed for any purpose whatever within the Province of Shantung, to offer the said work or supplying of materials, in the first instance to German manufacturers and merchants engaged in undertakings of the kind in question.

In case German manufacturers and merchants are not inclined to

undertake the performance of suck works or the furnishing of materials, China shall then be at liberty to act as she pleases.

The above agreement shall be ratified by the sovereigns of both the contracting states, and the ratifications exchanged in such manner that, after the receipt in Berlin of the treaty ratified by China, the copy ratified by Germany shall be handed to the Chinese Minister in Berlin.

The foregoing treaty has been drawn up in four copies, two in German and two in Chinese, and was signed by the representatives of the two contracting states on the 6th March, 1898, corresponding to the 14th day of the second month in the twenty-fourth year Kuang-hsü.

(Great Seal of the Tsung-li Yamên.)

The Imperial German Minister,

(Signed)

BARON VON HEYKING.

LI HUNG-CHANG (in Chinese),

Imperial Chinese Grand Secretary, Minister of the Tsung-li Yamen, &c., WENG TUNG-Ho (in Chinese), Imperial Chinese Grand Secretary, Member of the Council of State, Minister of the Tsung-li, Yamen, &c.

CONVENTION BETWEEN RUSSIA AND CHINA FOR LEASE TO RUSSIA OF PORT ARTHUR, TALIENWAN, AND THE ADJACENT WATERS.1

Signed at Peking, March 27, 1898.

[TRANSLATION]

On the 6th day of the 3rd moon of the 24th year of Kuang Hsü (27th March, 1898), His Majesty the Emperor of China especially deputed the Grand Secretary Li, and the Vice-President of the Board of Revenue Chang, as plenipoteniaries to settle the matters connected with the loan of Port Arthur and Talienwan, with the Russian Charge d'Affaires Pavloff.

The convention drawn up is as follows:

Article I. In order for the protection of the Russian fleet, and (to enable it) to have a secure base on the north coast of China, His Majesty the Emperor of China agrees to lease to Russia Port Arthur, Talienwan, and the adjacent waters. But this lease is to be without prejudice to China's authority in that territory.

1 Rockhill, p. 50.

Art. II. The boundary of the territory leased in pursuance of the foregoing extends from Talienwan northward in accordance with the requirements (of the situation) on land, and of the protection of the territory, and permission shall be given for its being placed at whatever distance may be necessary.

The exact boundary and the other details of this convention, shall be jointly arranged at St. Petersburgh with Hsü Ta-jên, after the signature of this convention, with all possible expedition, and a separate special article drawn up. After the boundary has been decided, all the territory included in it, and the adjacent waters shall be entirely handed over to Russia to use under lease.

Art. III. The term of lease is fixed as twenty-five years from the date of signature. On expiration an extension of the term may be arranged between the two countries.

Art. IV. Within the term fixed, in the territory leased to Russia, and in the adjacent waters, all movements of forces, whether naval or military, and (the appointment of) high officials to govern the districts, shall be entirely left to Russian officers, one man being made responsible, but he is not to have the title of governor-general or governor.

No Chinese troops of any kind whatever are to be allowed to be stationed within this boundary. Chinese within the boundary may leave or remain at their pleasure, and are not to be driven away.

Should any criminal cases occur, the criminal is to be handed over to the nearest Chinese official to be punished according to law, in accordance with the arrangement laid down by the VIIIth Article of the Russian-Chinese Treaty of the 10th year of Hsien Fêng (1860).

Art. V. To the north of the territory leased there shall be left a piece of territory, the extent of which is to be arranged by Hsü Ta-jên and the Russian Foreign Office. This piece is to be entirely left to Chinese officials, but no Chinese troops are to enter it, except after arrangement with the Russian officials.

Art. VI. The governments of the two countries agree that, as Port Arthur is solely a naval port, only Russian and Chinese vessels are to be allowed to use it, and it is to be considered a closed port as far as the war and merchant-vessels of the other powers are concerned.

As to Talienwan, with the exception of a part within the port which, like Port Arthur, is to be reserved for the use of Russian and Chinese men-of-war, the remainder is to be a trading port, where the merchantvessels of all countries can freely come and go.

Art. VII. Russia definitely recognizes the territory leased, but Port Arthur and Talienwan are of special importance. (As to) provision of funds, she will herself erect what buildings are required for the naval or military forces, for the erection of batteries, or barracks for the garrisons, and generally provide all the funds required.

Art. VIII. The Chinese Government agree that the principle of the permission given in the 22nd year of Kuang Hsü (1896) to the Manchurian Railway Company for the construction of a railway shall now, from the date of signature, be extended to the construction of a branch. line from a certain station on the aforesaid main line to Talienwan, or, if necessity requires, the same principle shall be extended to the construction of a branch line from the main line to a convenient point on the sea-coast in the Liaotung Peninsula, between Ying-tzu (Newchwang) and the Yalu River.

The provisions of the agreement of the 8th September, 1896, between the Chinese Government and the Russo-Chinese Bank shall be strictly observed with regard to the branch line above mentioned. The direction of the line and the places it is to pass shall be arranged by Hsü Ta-jên and the Manchurian Railway Company. But this railway concession is never to be used as a pretext for encroachment on Chinese territory, nor to be allowed to interfere with Chinese authority or interests.

After Im

Art. IX. This convention shall come into force from the date of exchange [sic] by the plenipotentiaries of both countries. perial ratification exchange shall take place at St. Petersburgh.

ADDITIONAL AGREEMENT DEFINING BOUNDARIES OF LEASED AND NEUTRAL-
IZED TERRITORY IN LIAO-TUNG PENINSULA.1

Signed at St. Petersburg, 7th May, 1898.
[TRANSLATION]

The Governments of Russia and China being desirous of adding some stipulations to the treaty concluded at Peking on the 15th March, 1898 (Russian Calendar) the plenipotentiaries of both governments have agreed upon the following:

Article I. In accordance with the IInd Article of the original treaty the northern territory leased and yielded to Russia-Port Arthur, Talien

1 Rockhill, p. 53.

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