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China to another under the same conditions in respect of security as copper "cash", it is now agreed that in cases of expected scarcity or famine from whatsoever cause in any district, the Chinese Government shall, on giving 21 days' notice, be at liberty to prohibit the shipment of rice and other grain from such district.

Should any vessel specially chartered to load rice or grain previously contracted for, have arrived at her loading port prior to or on the day when a notice of prohibition to export comes into force she shall be allowed an extra week in which to ship her cargo.

If, during the existence of this prohibition, any shipment of rice or grain is allowed by the authorities, the prohibition shall, ipso facto, be considered cancelled and shall not be re-imposed until six weeks' notice has been given

When a prohibition is notified, it will be stated whether the Government have any Tribute or Army Rice which they intend to ship during the time of prohibition, and if so, the quantity shall be

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It is agreed that either of the High Contracting Parties to this Treaty may demand a revision of the Tariff at the end of 10 years; but if no demand be made on either side within six months after the end of the first 10 years, then the Tariff shall remain in force for 10 years more, reckoned from the end of the preceding 10 years; and so it shall be

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Lü, President of Works; SHENG, Junior Guardian of the Heir Apparent, Vice-President of the Board of Works;

Imperial Chinese Commissioners, for dealing with questions connected with the Commercial Treaties, to Sir JAMES MACKAY, His Britannic Majesty's Special Commissioner for the discussion of Treaty matters.

Shanghai: K. H. XXVIII., 7th moon, 11th day.

(Received August 15, 1902.)

We have the honour to inform you that we have received the following telegram from His Excellency Liu, GovernorGeneral of the Liang Chiang, on the subject of Clause II. mutually agreed upon by us:

"As regards this clause, it is necessary to insert therein a clear stipulation, to the effect that no matter what changes may take place in the future, all Customs' duties must continue to be calculated on the basis of the existing higher rate of the Haikwan Tael over the Treasury Tael, and that the touch' and weight of the former must be made good".

As we have already arranged with you that a declaration of this kind should be embodied in an official note, and form an Annex to the present Treaty for purposes of record. we hereby do ourselves the honour to make this communication.

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Lü, President of the Board of Works; SHENG, Junior Guardian of the Heir Apparent, Vice-President of the Board of Works

Imperial Chinese Commissioners for dealing with questions connected with the Commercial Treaties, to Sir JAMES L. MACKAY, His Britannic Majesty's Special Commissioner.

Shanghai, Sept. 2, 1902.

that on Aug. 22 we, in conjunction with We have the honour to inform you the Governors-General of the Liang Chiang and the Hukuang Provinces, Their Excellencies Liu and Chang, addressed the following telegraphic Memorial to the Throne:

"Of the revenue of the different Provinces derived from lekin of all kinds, a portion is appropriated for the service of the foreign loans, a portion for the Peking Government, and the balance is reserved for the local expenditure of the Provinces concerned.

"In the negotiations now being conducted with Great Britain for the amendment of the Commercial Treaties, a mutual arrangement has been come to providing for the imposition of additional taxes, in compensation for the abolition of all kinds of lekin and other imposts on goods, prohibited by article VIII. After payment of interest and sinking fund on the existing foreign loan, to the extent to which lekin is thereto pledged, these additional taxes shall be allocated to the various Provinces to make up deficiencies and replace revenue, in order that no hardships may be entailed on them.

With a view to preserving the original intention underlying the proposal to increase the duties in compensation for the loss of revenue derived from lekin and other imposts on goods, it is further stipulated that the surtaxes shall not be appropriated for other purposes, shall not form part of the Imperial Maritime Customs revenue proper, and shall in no case be pledged as security for any new foreign loan.

"It is therefore necessary to memoralise for the issue of an Edict, giving effect to the above stipulations and directing the Board of Revenue to find out what proportion of the provincial revenues derived from lekin of all kinds, now about to be abolished, each Province has hitherto had to remit, and what proportion it has been entitled to retain, so that, when the Article comes into aperation, due apportionment may be made accordingly, thus providing the Provinces with funds available for local expenditure, and displaying equitable and just treatment towards all".

On 1st inst. an Imperial Decree "Let action, as requested, be taken" was issued, and we now do ourselves the honour reverently to transcribe the same for your information.

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(2).

Shanghai, Sept. 5, 1902. GENTLEMEN, I have the honour to acknowledge the receipt of your despatch of the 2nd inst. forwarding the text of the Memorial and Decree dealing with the disposal of the surtaxes.

I understand that the surtaxes in addition to not being pledged for any new foreign loan are not to be pledged to, or held to be security for, liabilities already contracted by China except in so far as lekin revenue has already been pledged to an existing loan.

I also understand from the Memorial that the whole of the surtaxes provided by Article VIII. of the New Treaty goes to the Provinces in proportions to be agreed upon between them and the Board of Revenue, but that out of these surtaxes each Province is obliged to remit to Peking the same contribution as that which it has hitherto remitted out of its lekin collections, and that the Provinces also provide as hitherto out of these surtax funds whatever may be

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LU, President of the Board of Works; SHENG, Junior Guardian of the Heir Apparent, Vice-President of the Board of Works;

Imperial Chinese Commissioners for

dealing with questions connected with the Commercial Treaties, to Sir JAMES L. MACKAY, His Britannic Majesty's Special Commissioner.

Shanghai, Sept. 5, 1902.

We have the honour to acknowledge the receipt of your communication of today's date with regard to the allocation of the surtax funds allotted to the Provinces, and to inform you that the views therein expressed are the same as our

own.

We would, however, wish to point out that, were the whole amount of the allocation due paid over to the Provinces, unnecessary expense would be incurred in the retransmission by them of such portions thereof as would have to be remitted to Peking in place of the contributions hitherto payable out of lekin revenue. The amount, therefore, of the allocation due to the Provinces, arranged between them and Board of Revenue, will be retained in the hands of the Maritime Customs, who will await the instructions of the Provinces in regard to the remittance of such portion thereof as may be necessary to fulfil their obligations, and (on receipt of these instructions) will send forward the amount direct. The balance will be held to the order of the Provinces.

In so far as lekin is pledged to the service of the 1898 loan, a similar method of procedure will be adopted.

As you request that this correspondence be annexed to the Treaty, we have the honour to state that we see no objection to this being done.

Annex (C).

INLAND WATERS STEAM NAVIGATION.

ADDITIONAL RULES.

1. British steamship owners are at liberty to leare warehouses and jetties on the banks of waterways from Chinese subjects for a term not exceeding 25 years, with option of renewal on terms to be mutually arranged. In cases where British merchants are unable to secure warehouses and jetties from Chinese subjects on satisfactory terms, the local officials, after consultation with the Minister of Commerce, shall arrange to provide these on renewable lease as above mentioned at current equitable

rates.

2. Jetties shall only be erected in such positions that they will not obstruct the inland waterway or interfere with navigation, and with the sanction of the nearest Commissioner of Customs; such sanction, however, shall not be arbitrarily withheld.

3. British merchants shall pay taxes and contributions on these warehouses and jetties on the same footing as Chinese proprietors of similar properties in the neighbourhood. British merchants may only employ Chinese agents and staff to reside in warehouses so leased at places touched at by steamers engaged in inland traffic to carry on their business; but British merchants may visit these places from time to time to look after their affairs. The existing rights of Chinese jurisdiction over Chinese subjects shall not by reason of this clause be diminished or interfered with in any

way.

4. Steam vessels navigation the inland waterways of China shall be responsible for loss caused to riparian proprietors by damage which they may do to the banks or works on them and for the loss which may be caused by such damage. In the event of China desiring to prohibit the use of some particular shallow waterway by launches, because there is reason to fear that the use of it by them would be likely to injure the banks and cause damage to the adjoining country, the British authorities, when appealed to, shall, if satisfied of the validity of the objection, prohibit the use of that waterway by British launches, provided that

Chinese launches are also prohibited from using it.

Both Foreign and Chinese launches are prohibited from crossing dams and weirs at present in existence on inland waterways where they are likely to cause injury to such works, which would be detrimental to the water service of the local people.

5. The main object of the British Government in desiring to see the inland waterways of China opened to steam navigation being to afford facilities for the rapid transport of both foreign and native merchandise, they undertake to offer no impediment to the transfer to a Chinese company and the Chinese flag of any British steamer which may now or hereafter be employed on the inland waters of China, should the owner be willing to make the transfer.

In event of a Chinese company registered under Chinese law being formed to run steamers on the inland waters of China the fact of British subjects holding shares in such a company shall not entitle the steamers to fly the British flag.

6. Registered steamers and their tows are forbidden, just as junks have always been forbidden, to carry contraband goods. Infraction of this rule will entail the penalties prescribed in the treaties for such an offence and cancellation of the Inland Waters Navigation Certificate carried by the vessels, which will be prohibited from thereafter plying on inland waters.

7. As it is desirable that the people living inland should be disturbed as little as possible by the advent of steam vessels to which they are not accustomed, inland waters not hitherto frequented by steamers shall be opened as gradually as may be convenient to merchants and only as the owners of steamers may see prospect of remunerative trade.

In cases where it is intended to run steam vessels on waterways on which such vessels have not hitherto run, intimation shall be made to the Commissioner of Customs at the nearest open port who shall report the matter to the Ministers of Commerce. The latter in conjunction with the Governor-General or Governor of the Province, after careful consideration of all the circumstances of the case, shall at once give their approval.

8. A registered steamer may ply within the waters of a port, or from one open port or ports to another open port or ports, or from one open port or ports to places inland, and thence back to such port or ports. She may, on making due report to tho Customs, land or ship passengers or cargo at any recognised places of trade passed in the course of the voyage; but may not ply between inland places exclusively except with the consent of the Chinese Government.

9. Any cargo and passenger boats may be towed by steamers. The helmsman and crew of any boat towed shall be Chinese. All boats, irrespective of ownership, must be registered before they can proceed inland.

10. These Rules are supplementary to the Inland Steam Navigation Regulations of July and September, 1898. The latter, where untouched by the present Rules, remain in full force and effect; but the present Rules hold in the case of such of the former Regulations as the present Rules affect. The present Rules, and the

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CONVENTION ENTRE LA FRANCE ET LE SIAM.
(Paris, 7 octobre 1902.)

Le président de la République française et S. M. le roi de Siam, désireux de rendre plus étroites et plus confiantes les relations d'amitié qui existent entre leurs deux pays et de régler certaines difficultés qui s'étaient élevées sur l'interprétation du traité et de la convention du 3 octobre 1893, ont décidé de conclure une nouvelle convention et ont nommé à cet effet pour leurs plénipotentiaires, savoir:

Le président de la République française, M. Théophile Delcassé, député, ministre des Affaires étrangères, etc., et Sa Majesté le roi de Siam, Phya Suriya Nuvatr, son envoyé extraordinaire et ministre plénipotentiaire près le président de la République française, décoré de la 1re classe de l'Ordre royal de la Couronne de Siam, grand Officier de l'Ordre national de la Légion d'honneur,

etc.

Lesquels, après s'être communiqué leurs pleins pouvoirs, trouvés en bonne et due forme, sont convenus des dispositions suivantes:

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Article premier.

§. 1. La frontière entre le Siam et le Cambodge part, sur la rive gauche du Grand Lac, de l'embouchure de la rivière Stung-Roluos; elle suit le parallèle de ce point dans la direction de l'Est jusqu'à la rencontre de la rivière Prék-kompongtiam, puis, remontant vers le Nord, elle se confond avec le méridien de ce point de rencontre jusqu'à la chaîne de montagnes Pnom-dang-rek. De là elle suit la ligne de partage des eaux entre les bassins du Nam Sen et du Mékong d'une part et du Nam-moun d'autre part, et rejoint la chaîne Pnom-padang dont elle suit la crête vers l'Est jusqu'au Mékong.

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