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Shantung shall at once consider the circumstances and comply with such application. The amount to be contributed by the Company for the troops dispatched shall be the subject of a further understanding.

ART. 27. In the German leased territory the rights of sovereignty are safeguarded by the Governor of Tsingtao. In the districts of the remaining part of the Province of Shantung through which the railway is running, the rights of sovereignty are safeguarded by the Governor of the Province of Shantung.

Art. 28. It shall be the subject of further agreements when and under what conditions the Chinese Government may in future take over the railway.

The foregoing regulations after being approved shall be notified to the Authorities of the Shantung Province and to the officials of the railway. Thereupon they shall be duly observed.

Should it in future be deemed necessary to have alterations made of some of the above regulations or to have drawn up supplementary rules, this can only be done by mutual agreement between the then Governor of the Province of Shantung and the Shantung Railway Company.

This agreement is executed in two exemplars each of which contains a Chinese as well as a German version of like tenour. Each of the contracting parties has received one exemplar.


Chinanfu, the 21st of March 1900. Seal and signature of GOVERNOR YUAN Shin Kai,

H. I. M's Special Delegate, Lieutenant General.
Signed: YIN CHANG.

Die Betriebsdirection der Schantung-Eisenbahn-Gesellschaft.



[Translation.) The Emperor of China has appointed Yang Shih-hsiang, Civil and Military Governor of Shantung, and the German Emperor, Van Semmern, Civil and Military Governor of Kiaochow, who after communicating full powers and finding them in due form have agreed upon the following articles:

Whereas the German Emperor has, for the purpose of promoting friendly relations, agreed to withdraw the troops stationed at Kiaochow and Kaomi, the following articles are hereby concluded.

Art. 1. The German troops at Kiaochow shall withdraw immediately after this ('onvention has been signed.

ART. 2. One-fourth of the German troops stationed at Kaomi shall withdraw immediately after the signing of this Convention, and another fourth, within two months therefrom. The remaining troops shall withdraw within the next two months during which period barracks and stables shall be so speedily built in Tsingtao that the said troops may withdraw altogether within this said time limit. But in case the said works can not be finished within the two months, a complete withdrawal shall nevertheless be effected-there shall be no further extension of time.

ART. 3. From the date of the signing of this Convention, no matter whether the German troops at Kiaochow and Kaomi have completely withdrawn or not, the railways within the surrounding zone shall completely be under the supervision and protection of the Chinese local authorities and police officers. The police officers shall despatch so many policemen as they deem fit but not more than two hundred and forty, to be evenly stationed at various sections; all matters relating thereto shall be conducted according to the police regulations prevailing beyond the surrounding zone. At some place near the city of Kaomi there shall be established a police office with a police force of not more than one hundred men who shall, by turn, attend to their duty in the protection of the railway and in the suppression of disturbances which may arise. But if China should station troops in the said place, all matters relating thereto shall be governed by the Kiaochow Lease Convention.

ART. 4. All the works which Germany has constructed in Kiaochow and Kaomi such as barracks, stables, drill grounds, roads, waterworks, and the like, together with the foundations thereof, houses and the fixtures attached thereto cost, calculated at their original prices, $496,388.48. From this amount are to be subtracted

$21,388.48 expended for annual repairs and considered as representing the annual diminution of the value of the properties, and $70,000.00 as extra reduction; the net price will then be $400,000.00 at which the said properties will be purchased by and reverted to China under a separate agreement. The price of the buildings shall be paid off in four installments within two years from the day when the barracks at Kiaochow and Kaomi are handed over. After their purchase or reversion, all the buildings shall be reserved for educational and other public uses.

ART. 5. In case Germany should, in accordance with the Treaties, require passage for her troops through Kiaochow and Kaomi, and stay there for a few days, a few weeks' notice will be necessary, in order that a vacant place may be assigned for their temporary stay, free of charge.

Of this Convention there shall be made four copies in Chinese and four in German, identical in sense; and after they have been signed, two copies each of the Chinese and German texts shall be filed at the office of the Governor of Shantung, and the other two copies each of the said two languages, at the office of the Civil and Military Governor of Kiaochow, for reference, transmission and observance.

The second Day, eleventh Moon of the Reign of Kwanghsu, corresponding to the 28th of November, 1905.




For the purpose of defining the mining rights of the Chino-German Company along the railways in Shantung Province and concluding a working arrangement the Provincial Authorities of Shantung and the Mining Company have mutually agreed upon the following Articles:

Art. I. 1. The Shantung Mining Company reserves for its exclusive exploitation the Fangtze and Tzechwan mining areas and the mining district from Chinlingchen along the Kiaochow-Chinan Railway in a northerly direction for a distance of 30 li to Changtien.

2. The Company is to prepare maps showing the boundaries of the mining areas it designates for exclusive development. These maps are to form an important part of this Agreement. All mining properties within the specified areas are to be exclusively exploited by the Company and no (hinese undertakings are permitted therein.

3. With the exception of the delimited areas set aside herein for exclusive development by the Mining Company all mining rights hitherto granted by China to the Company within 30 li (15 kilometers) on both sides of Kiaochow-Chinan Railroad now in operation, the Tientsin-Pukow Railroad now under construction, and the Kiaochow Ichow railroad recently surveyed are hereby canceled.

1. Tzechwan Hsien and Poshan Hsien being within the 30-li zone of mining rights, the Company originally intended to exploit it by itself. Now as an act of special friendship, the Company hereby relinquishes its claim to Poshan mines. The Tzechwan mining area beginning on the south at Ta Kwei Shan passing Lungkow Chen in a north-westerly direction and reaching the eastern boundary of Tzechwan, is hereby likewise relinquished to the Chinese for their free exploitation. The remaining areas in this region shall, in accordance with Article I, belong to the mining areas of the Company.

5. The 30-li zone of the Fangtze mining area in Weihsien touches the boundaries of Changlo and Ankiu Hsiens and includes parts thereof. The Company surrenders voluntarily, as a further evidence of goodwill, its claim to the north western district of Ankiu Heien. It retains, however, its title to Chinshanwa mining area in Changlo Hsien to the extent of 10-li from Fangtze mine in a straight line.

6. For the purpose of delimiting mining areas the Provincial Authorities of Shantung and the Mining Company have jointly drawn up following maps:

1. Tzechwan mining area and the mining area from Chinlingchen to Changtien. 2. The southern section of the Tzechwan mining area. 3. Mining areas in Weihsien and Changlo Hsien. 4. General map showing all mining areas delimited by this Agreement.

ART. 2. 1. Within the mining areas relinquished by the Mining Company in the three Hsiens of Changkiu, Tzechwan and Poshan along the Kiaochow-Chinan Railway Chinese are not permitted to undertake the development of the biggest mine therein before the year 1920, but they shall be at liberty to do so after that year.

2. In the mining areas reserved by the Company all Chinese mining shafts that are now in a working condition shall be stopped within one month from the date of a formal exchange of the texts of this Agreement duly approved by the Chinese and German Governments.

3. The Chinese Government is still to accord protection to the works of the Company in accordance with the provisions of the Mining Agreement concluded in the 26th year of Kwang Hsu, corresponding to the year 1900 A. D.

4. Should the Chinese Government and merchants be short of capital for the exploitation of the mines in the districts relinquished to China by this Agreement, they shall approach German capitalists for loans. If foreign materials and machinery are needed they shall purchase them from Germany. If foreign engineers are to be employed they engage German engineers.

ART. 3. To meet the expenditures hitherto incurred by the Company for prospecting mines, fixing boundaries and purchasing lands, the Chinese Government agrees to pay to the Company $210,000 Mex., the said sum being payable within one year from the date of this Agreement in two installments. After the signing of this Agreement the Company shall immediately turn over to the Chinese Government all maps and papers relating to the prospecting of these mines and all lands purchased by the Company.

ART. 4. Chinlingchen iron mine is to be exploited according to the Mining Regulations of the 26th year of Kwanghsu (1900). If China desires to establish iron smelting works near the mine a joint stock company may be formed, with a capital of something like 500,000 taels. Regulations therefor are to be drawn up separately at the proper time.

This Agreement is executed in quadruplicate copies in the Chinese and German languages, found identical in sense, together with four sets of maps of the mines, to be held by the contracting parties.

Third year of Hsun Tung, 6th month, 29th day, corresponding to the 24th day of
July 1911.
Delimitation Commissioners of the Imperial Chinese Government, namely.
Signed: Su, Commissioner for the Promotion of Industrial Affairs at Muken.

Yu, Expectant Taotai of Shantung, Managing Director of the China-
German Mining Company, German Consul General at Chinanfu,

Shantung. Senator BRANDEGEE. Being included in the record, this document will be available to Senators when the debate comes on.

Senator McCUMBER. Let us see what that covers, because there seem to have been so many treaties between China and Germany here. This refers to the treaty of what date?

Mr. FERGUSON. March 6, 1898, sir.

Senator BRANDEGEE. That is the treaty by which Germany first got Kiaochow.

Mr. FERGUSON. By which Germany first got Kiaochow.

Senator McCUMBER. That does not then include the agreement between China and Germany respecting the Kiaochow-China Railway regulations of March 21, 1900 ? · Mr. FERGUSON. No, sir. Í have that also and can give that to the committee if it so desires.

(The agreement last referred to will be found heretofore printed in this day's hearing.)

I want to call the attention of the committee to one other matter in that agreement.

Senator McCUMBER. I only wanted to show just the limits of the treaty.

Mr. FERGUSON. That is the limit of the treaty. That was later, March 21, 1900. Then there was the further convention of November 28, 1905, respecting the withdrawal of German troops from Kiaochow and Kaomi.

Then there was another agreement of July 24, 1911, between the provincial authorities of Shantung, and the Chino-German mining agreement

Senator Knox. Do these treaties appear in Rockhill's Chinese treaties?

Mr. FERGUSON. These later ones do not, as they were after Mr. Rockhill's edition, which was in 1908. The Chino-German Mining Co. agreement for delimiting mining areas in the Province of Shantung was July 24, 1911. If the committee so desires I can have all these included as an appendix to my testimony.

Senator McCUMBER. Do you think these latter ones in any way explain the others and are necessary? They are quite lengthy, and I can not see the necessity, unless you have read them over and think they really have a bearing upon the construction of the first treaty of March 6.

Mr. FERGUSON. They have none. They only show the extent to which German interests were limited in the Province of Shantung. That is the only point, Senator.

Senator MOCUMBER. I understand.
Senator Knox. That is an important point, I think.

Senator McCUMBER. I have no objection, if you think it is necessary to have them all here. I have read them and have them before

me. .

Senator Knox. The point has been made that the Japanese are getting so much more than the Germans had, that it is well to know what the Germans had.

Senator MoCUMBER. What the Germans had is stated in the first treaty, and as I understand the subsequent treaties do not extend any German rights.

Mr. FERGUSON. No. The subsequent treaty, though, specifies them and gives the arrangement under which these rights are to be exercised.

Senator Knox. They were in the nature of limitations, were they


Senator. BRANDEGEE. Then they should go into the record, I think.
Senator McCUMBER. I do not object.

(The two last-named documents will be found, with those already mentioned, heretofore printed in this day's hearing.)

Senator BRANDEGEE. What is the book which the Senator has in which he says these treaties appear?

Senator McCUMBER. What I have is a book headed “The Shantung Question-A statement of China's claim together with important documents submitted to the Peace Conference in Paris.” It is published by the Chinese National Welfare Society in America, August 1, 1919. I think all the members of the committee have the same book.

Mr. FERGUSON. I do not know of that and have not seen it, Senator. What I am holding in my hand and quoting from here is the Chinese Government official translation of those agreements.

Senator McCUMBER. From what I heard you read, they agree entirely with this statement by the Chinese society.

Mr. FERGUSON. May I call attention to article 28 of the railway convention of March 21, 1900, also in amplification of my testimony of yesterday as to the possibility of China recovering from Germany the rights in the railway which she allowed Germany to build? Article 28 states

It shall be the subject of further agreements when and under what conditions the Chinese Government may in future take over the railway.


That is simply in confirmation of the statement which I made yesterday that in the contract with Germany for the building of the railway was included the usual stipulation that China has made also with other nations, that in due course of time the Chinese Government would be able to buy back from the concessionaire all the concessionaire's rights in the property.

Senator BRANDEGEE. That language as you read it would mean, would it not, sir, that Japan fixed her own terms upon which China would get back these concessions ?

Mr. FERGUSON. This is Germany that I am referring to here.

Senator BRANDEGEE. I mean Germany. If they have got to agree, that makes Germany the arbiter, does it not?

Mr. FERGUSON. I might say that this contract came to the office of which I was the adviser at the time, and I was familiar with the idea behind that, which was that when China was prepared to put up the money for it, the question of how much money was necessary to do it would be the subject of further agreement, not the question whether she would be allowed to do it or not. It was a question of how much.

Senator BRANDEGEE. J know, but that leaves Germany in a position to fix the price.


Senator BRANDEGEE. And China can not have it back unless she agrees to Germany's terms. Mr. FERGUSON. Unless there is a mutual agreement. Senator BRANDEGEE. There is no provision for arbitration.

Mr. FERGUSON. No, sir, but that would come up under the arrangement

Senator Knox. Do you recall any case where China has ever got anything back, even though she was to get it back at the end of a specified period or to get it back by virtue of an arrangement?

Mr. FERGUSON. Yes, China took back from a Belgian syndicate the control of the Peking-Hankow Railway and refinanced it.

Senator Knox. Was not that rather an unusual case? Take the case of the Manchurian Railroad. Russia had the Manchurian Railroad for a definite, specific period of time.


Senator KNOX. But under the treaty of Portsmouth, as I understand it, it went over to Japan. The Russian rights went over to Japan. Mr. FERGUSON. Yes.

Senator Knox. Has not Japan served notice on China that notwithstanding the limited period of time which that extended, she did not intend to surrender the railroad?

Mr. FURGESON. That is not quite what occurred, Senator. What occurred was that in this treaty of May 25, 1915, to which we made so frequent reference yesterday, one of the provisions concerning Manchuria and eastern inner Mongolia was that the rights of the Russian concessionaries should be extended for the period of 99 years; so that that railroad does not come back to China until 2003, if I have the date right. I can tell you exactly

Senator KNOX. When was it to have come back under the original concession ?

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