ends of progress, well-being and culture, the total amount of the debt shall be used for works of mutual benefit on the frontiers of the two nations, in accordance with the forms stipulated in the following articles.

II. The money shall be principally applied to the foundation and maintenance, on a point of the Uruguayan and Brazilian frontier, of an Institute of Work, in which, under the auspices of the two Governments, Uruguayans and Brazilians in equal numbers shall receive, in the Spanish and Fortuguese languages, scientific and professional instruction on all subjects pertaining to agricultural and pastoral industries, and to the industries derived from and connected with these. In order to raise the prestige and to increase the efficiency of all the trades, industries, arts and sciences connected with the soil, equal attention will be given to the lectures devoted to the practical side of such industries as to those dealing with higher professional and technical matters.

III. This institution shall be established on the frontier line, the area being approximately equal on both sides, in the zone of Acegua or in whatever place may appear more convenient, and the place shall be chosen and marked out by two High Commissioners, appointed by both Governments for this purpose and for the special work which shall be entrusted to them in accordance with the following articles.

IV. The general plan of the establishment, its educational programme (due respect being always paid to its essentially agricultural nature), its system of administration and all other points which relate to its fundamental purposes, shall be studied jointly and proposed to the two High Contracting Parties by the two High Commissioners mentioned in the previous article, who may obtain assistance from the necessary technical assessors and helpers.

V. The most suitable place for the Institute of Work having been chosen and the Institute planned under the conditions best suited to its immediate execution, its successful administration and its future prosperity and efficiency, the plans of the High Commissioners being approved jointly by their respective Governments, and the necessary ground being acquired, all of which shall be especially sanctioned by the two High Contracting Parties within twenty months after the exchange of ratifications of this Treaty, the technical departments of the Oriental Republic of the Uruguay shall commence, under the supervision of the High Commissioners, the construction of the establishment which, except in a clear case of force majeure, should be ready to be handed over to the authorities who are to administer it two years after the commencement of the works, at which time the functions of the High Commissioners will then cease. [1917-18. CXI.]

2 X 2

VI. The plan and programmes of studies of the Schools and Sections into which the Institute of Work may be divided, as also the regulations of the service and of the schools and everything relating to the internal movement of the Institution and its dependencies, shall be in the hands of its educational and administrative authorities, to whose guidance the establishment shall be handed over, in accordance with the Statute previously approved by the two Governments.

VII. In order to facilitate the purchase of the ground necessary for the Institute of Work and all its dependencies, the two High Contracting Parties agree that, in view of the public utility of such ground, the necessary authorisation is hereby granted to them for its expropriation, if necessary, within the territories of both countries and in accordance with the laws dealing with such subjects.

VIII. Special attention should be given by the High Commissioners to the management and administration of the Institute of Work and a careful study made of the means of preventing possible difficulties arising in the future. Should it be found that the plan outlined in the preceding articles relative to the building of the establishment might be the cause of difficulties of any sort, the High Commissioners should draw up another plan for the same, choosing from one of the following alternatives:

(1.) To divide into two equal parts the sums destined to this end in Articles XV and XVI, one Institute to be founded by each each country in each territory, with independent administrations.

(2.) Or, the Oriental Republic of the Uruguay to hand over to Brazil such sums, in order that Brazil may set up and administer the establishment on her frontier territory, Uruguay lending all the technical help that may be required of her.

(3.) Or, finally, in some other way better suited to ensure, in accordance with the high aims of this Treaty, the permanent harmony and the future progressive prosperity of the Institution.

The proposals which, in accordance with any of these alternatives, may be made by the High Commissioners, shall come into force as soon as approved by both Governments.

IX. With part of the debt the Government of the Oriental Republic of the Uruguay shall build an international bridge over the Yaguaron river between the Uruguayan town of Rio Branco and the Brazilian city of Yaguaron, or in its neighbourhood, if this appears more advantageous to the judg ment of a mixed Commission. This mixed Commission shall be appointed by the High Contracting Parties to study

the best site for the bridge and to prepare, in accordance with the High Commissioners, within the period of twenty months of which Article V treats, the plans of construction within the limits of the approximate sum established in Article XV of this Treaty.

X. The bridge to be built is intended for every kind of traffic, pedestrian and horse traffic, and for vehicles of every kind, including railroad vehicles.

XI. To open the bridge for international traffic, both Governments bind themselves to establish in their respective jurisdictions and at the ends of the bridge, fiscal and custom posts fitted for every kind of operation.

XII. The use of the bridge shall be completely free for all classes of traffic and transit. The two countries may, however, by mutual agreement, levy a contribution, once or periodically, on the railway companies that may be authorised to use the bridge.

XIII. The two countries shall, jointly, lay down the regulations for the use of the bridge with regard to general traffic, the policing of the bridge, the upkeep of the railway lines and Customs fiscalisation.

XIV. The Oriental Republic of the Uruguay binds itself to commence the construction of the bridge six months after the approval of the plans, and to open it to traffic twenty-four months after the commencement of the works.

XV. With a view to carrying out the financial stipulations of this Treaty, the Oriental Republic of the Uruguay shall issue within one year from the exchange of ratifications of this Treaty, a special debt of 5,000,000 pesos of Uruguayan money at 5 per cent. interest and with a yearly amortisation of 1 per cent. The price of issue (which will be made gradually as the successive payments of the works, prescribed in clauses A and B of this Article, require), is fixed by common accord at 86 per cent. The Uruguayan Government binds itself to maintain this rate, in the event of the market quotation of this debt falling below this rate when the time comes for making an issue.

The total proceeds of this debt shall be applied as follows:

(A.) Up to 1,000,000 pesos for the studies and construction of the international bridge.

(B.) Up to 1,700,000 pesos for acquiring ground not less. than 4,000 hectares in extent, for the Institute of Work, for preliminary studies, for fees and expenses paid to the two High Commissioners and to their technical and auxiliary staff, for building, furniture, scientific material, agricultural machinery, breeding stock, and everything necessary for the installation and working of the Institute.

(C.) The entire balance of this new debt shall form a fund, which shall be applied to the maintenance of the estab lishment and also to the upkeep of the international bridge. The amount of the balance should, for this purpose, be converted in equal parts into bonds of Uruguayan and Brazilian Public Debt, with an interest of not less than 5 per cent.

XVI. The fund created by Article XV, clause C, for the maintenance of the establishment and the upkeep of the international bridge, shall be increased:

(1.) By the interest from the new debt, mentioned in the same article, to be calculated from the date of its emission to the completion of the works and the opening of the bridge to public service.

(2.) By what may be over from the sums mentioned in clauses A and B of the same Article XV.

(3.) By the profit obtained from a possible issue of the bonds of the new debt at a price higher than the rate of 86 per cent. fixed in the preceding article.

(4.) By the contribution paid by the railway companies, of which Article XII treats.

(5.) By the revenue accruing from the agricultural and industrial production of the Institute.

(6.) By donations made to the Institute.

XVII. If, after having made the technical studies and plans and the approximate cost of the works of the international bridge and the Institute and calculated the revenue indispensable for the upkeep of the bridge and the maintenance of the Institute, the High Commissioners should find it convenient to modify or partially to transpose the sums mentioned in Articles XV and XVI, such partial modifications or transpositions may be effected from the time of their proposal by full and common accord of the two High Commissioners and of their approval by both Governments.

The fund established in Article XV, clause C, shall be handed over by the Government of the Oriental Republic of the Uruguay to be applied in due form as soon as the works of the bridge and the Institute of Work are completed.

XVIII. The fund treated of in Articles XV and XVI shall be in the custody of the Governments of Uruguay and Brazil, which by common assent shall determine the method of administering the same.

The cost of maintenance of the teaching establishment and the upkeep of the bridge shall be determined annually by means of budgets proposed by those in charge of the bridge and of the Institute, and approved by the two Governments.

In the event of any of the alternatives proposed in Article VIII being adopted, the two Contracting Parties are

hereby authorised to proceed in the form which they judge best, in accordance with the spirit of the present Treaty. They may not, however, abandon the construction of the international bridge nor the institution of the reserve fund, the revenues of which guarantee the upkeep of the bridge.

XIX. The debt owed by the Oriental Republic of the Uruguay to the United States of Brazil being liquidated in the manner prescribed in this Treaty, the respective Governments will consider as lapsed any claims related to this debt.

XX. The present Treaty, after approval by the Congress of both countries, shall be ratified and the ratifications exchanged in Rio de Janeiro as soon as possible.

In faith whereof the above mentioned Plenipotentiaries have signed the present Treaty, done in duplicate, in the Spanish and Portuguese languages, and thereunto affixed their seals, in the City of Rio de Janeiro the 22nd day of July of the year 1918.

(L.S.) NILHO PECANHA. (L.S.) BALTASAR BRUM.

CHINESE

PRESIDENTIAL

PROCLAMATION

declaring the Severance of Diplomatic Relations between China and Germany.--Peking, March 14, 1917.*

(Translation).

CHINA has observed strict neutrality since the outbreak of the war in Europe. A note, however, was received from the German Government on the 2nd day of the 2nd month of this year, warning us of the danger to neutral ships sailing from the latter date in certain zones as defined according to the new blockade declared by Germany, &c. The Government thereupon decided that, inasmuch as the German method of attacking merchant ships has already caused con. siderable loss of Chinese life and property and as the new submarine policy would cause even greater menace and injury, China, moved by the desire to uphold International Law and to discharge the duty of protecting the life and property of her people, lodged a strong protest with the German Government and stated that, unless Germany withdrew her new policy, China would be compelled to sever diplomatic relations with Germany. It was then hoped that Germany would not persist in her policy but would maintain

* From "Official Documents relating to the War (for the year 1917)" published by the Chinese Ministry of Foreign Affairs.