The New York herald., 1922-02-02

pended for permanent improvements on
or additions to the said properties, less
suitable allowance for depreciation. IL
| is understood that no charge will be
made with respect to the wharves, ware
houses and other similar properties men
toned in paragraph 1 Of this article, ex-
cent for such permanent improvements
| on or additions to them as may have
been made by Japan during her adminis-
tration of the railway. less a suitable
allowance for depreciation,
| The Government OF Japan and the
Government of China shall each appoint
three commissioners to form a joint
railway commission. with powers to ap-
praise the actual value of the railway
properties on the basis defined In the
preceding paragraph, and to arrange the
transfer of the said properties.
| Such transfer shall be completed as
soon as possible, and, In any case not
| later than nine months from the date
of the coming into force of the present
agreement.
To effect the reimbursement under
paragraph of this article China shall
simultaneously with the completion or
the transfer Of the railway properties.
deliver to Japan Chinese Government
treasury notes, secured on the proper
ties and revenues of the railway and
running for a period OF fifteen years, put
redeemable at the option of China ~
the end of five years from the date OF
the delivery Of the treasury notes, or at
any time thereafter upon six months
previous notice.
Pending lie redemption OF the said
| treasury notes, the Chinese Government
will select and appoint. for so long q
period as the said notes remain unre-
deemed. Japanese subject to the post
Of traffic manager and another Japanese
subject to be chief accountant jointly
with the Chinese chief accountant, with
coordinate functions. These officials
shall all be under the direction, control
and supervision of the Chinese manag-
4 ing director, and removable for cause.
| Financial details of a technical char
acter relating to the said treasury notes,
| not provided for in this article, shall be
determined in mutual accord between
the Japanese and Chinese authorities as
soon as possible and in any case not
later than six months from the date OF
the coming into force of the present
| agreement.
THE EXTENSIONS OF THE rsINGTAo-TsIN-
ANFU RAILWAY.
IT is agreed that the concessions re-
lating to the two extensions of the Tsing-
| tao-Tsinanfu railway, namely, the Tsin-
Lanfu-Shunteh and the Kaomi-Hsuchow-
| fu lines, will be thrown open for the
common activity of an international
financial group on terms to be arranged
between the Chinese Government and
the said group.
MINES.
The mines of Tsechuan, Fangtse and
| Chinlingchen, for which the mining
rights were formerly granted by China
| to Germany, shall be handed over to a
| company to be formed by a special
1 charter Of the Chinese Government in
which the Japanese capital may not ex-
ceed the amount of the Chinese capital.
The mode and terms of such arrange
ment shall be determined by the Chi
nese and Japanese commissions which
are to be appointed for that purpose and
which shall meet Immediately upon the
coming into force of the present agree
ment.
| OPENING OF THE FORMER GERMAN LEASED
| TERRITORY.
The Japanese Government declares
| that it has no intention Of seeking the
|
settlement or of an international settle
ment in Tsingtao.
The Chinese Government, on Its part.
declares that the entire area of the for
mer German leased territory of Kiao-
chou will be opened to foreign trade and
that foreigners will be permitted freely
to reside and to carry on commerce. in
dustry and other lawful pursuits within
such area.
The vested rights lawfully and equi-
table acquired by foreign nationals in
such area. whether under the German
regime or during the Japanese military
occupation. will be respected.
| All questions relating to the status or
validity Of suoh vested rights acquired
by Japanese nationals shall be arranged
by the Sino-Japanese joint commission
| SALT INDUSTRY.
| Whereas the salt industry is a Gov
ernment monopoly in China, IL is agreed
that the interests of Japanese companies
or Japanese nationals actually engaged
in the said industry along the coast of
Kiaochou Bay are to be purchased by
the Chinese Government on payment OF
fair compensation and that expectation
to japan of a quantity of salt produced
| Dy tne saiu INDUSTRY diouB tile sa1u coast
Is to be permitted on reasonable terms.
Arrangements for the above purposes
including the transfer of said interests
to the Chinese Government shall be
completed by the Chinese and Japanese
| commissions as soon as possible and in
any case not later than six months from
the date of the coming into force of the
present agreement.
X.
SUBMARINE CABLES
Iapan declares that all the rights,
| tt,ta and privfleges concerning former