Done at Shanghae this 5th day of September, in the year of our Lord 1902, corresponding with the Chinese date the 4th day of the 8th moon of the 28th year of Kwang Hsü. [L. 8.] JAS. L. MACKAY, [Signature of His Excellency Lü Hai-huan.] [Seal of the Chinese plenipotentiaries.] ANNEX A (1). Lu, president of the board of works; Sheng, junior guardian of the heir apparent, vicepresident of the board of works, imperial Chinese commissioners for dealing with the questions connected with the commercial treaties, to Sir James Mackay, His Britannic Majesty's special commissioner for the discussion of treaty matters. SHANGHAE, K. H. xxviii, 7th moon, 11th day—(Received August 15, 1902). We have the honor to inform you that we have received the following telegram from His Excellency Liu, governor-general of the Lang Chiang, on the subject of clause 2, 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 honor to make this communication. [Seal of the imperial commissioners for dealing with questions connected with treaty revision.] ANNEX A (2). SHANGHAE, August 18, 1902. GENTLEMEN: I have the honor to acknowledge the receipt of your dispatch of the 14th instant, forwarding copy of a telegram from His Exellency Liu, governor-general of the Liang Chiang, on the subject of Article II of the new treaty, and, in reply, I have the honor to state that his excellency's understanding of the article is perfectly correct. I presume the Chinese Government will make arrangements for the coinage of a national silver coin of such weight and touch as may be decided upon by them. These coins will be made available to the public in return for a quantity of silver bullion of equivalent weight and fineness, plus the usual mintage charge. The coins, which will become the national coinage of China, will be declared by the Chinese Government to be legal tender in payment of customs duty and in discharge of obligations contracted in haikwan taels, but only at their proportionate value to the haikwan tael, whatever that may be. I have, etc., Their Excellencies LÜ HAI-HUAN and SHENG HSÜAN-HUAI, etc. ANNEX B (1). JAS. L. MACKAY. Lu, president of the board of works; Sheng, junior guardian of the heir apparent, vicepresident 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, September 2, 1902. We have the honor to inform you that on the 22d August we, in conjunction with 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 likin of all kinds, a por FR 1902, PT 1-36 tion is appropriated for services of the foreign loans, a portion for the Pekin 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 likin 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 likin 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 likin 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 inemoralize 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 likin 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 operation due apportionment may be made accordingly, thus providing the provinces with funds available for local expenditure and displaying equitable and just treatment toward all." On the 1st instant an imperial decree, “Let action, as requested, be taken," was issued, and we now do ourselves the honor reverently to transcribe the same for your information. [Seal of the imperial commissioners for dealing with questions connected with treaty revision.] ANNEX B (2). SHANGHAI, September 5, 1902. GENTLEMEN: I have the honor to acknowledge the receipt of your dispatch of the 2d instant 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 likin 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 Pekin the same contribution as that which it has hitherto remitted out of its likin collections, and that the provinces also provide as hitherto out of these surtax funds whatever may be necessary for the service of the foreign loan to which likin is partly pledged. I hope your excellencies will send me a reply to this dispatch, and that you will agree to this correspondence forming part of the treaty as an annex. I have, etc., Their Excellencies LU HAI-HUAN and SHENG HSỮAN-HUAI, etc. JAS. L. MACKAY. ANNEX B (3). Lü, president of the board of works; Sheng, junior guardian of the heir apparent, vicepresident 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, September 5, 1902. We have the honor to acknowledge the receipt of your communication of to-day'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 Pekin in place of the contributions hitherto payable out of likin revenue. The amount, therefore, of the allocation due to the provinces, arranged between them and the 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 fulfill 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 likin 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 honor to state that we see no objection to this being done. [Seal of the imperial commissioners for dealing with questions connected with treaty revision.] ANNEX C. Inland waters steam navigation. ADDITIONAL RULES. 1. British steamship owners are at liberty to lease warehouses and jetties on the banks of waterways from Chinese subjects for a term not exceeding twenty-five 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 neighborhood. 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 navigating 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 the 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 offense, 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 cus toms at the nearest open port, who shall report the matter to the ministers of com merce. The latter, in conjunction with the governor-general or the 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 the customs, land or ship passengers or cargo at any recognized 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 regulations of July and September, 1898, to which they are supplementary, are provisional and may be modified, as circumstances require, by mutual consent. Done at Shanghae this 5th day of September, in the year of our Lord 1902, corresponding with the Chinese date the 4th day of the 8th moon of the 28th year of Kwang Hsü. [L.S.] JAS. L. MACKAY. [Signature of His Excellency Lü Hai-huan.] [Seal of the Chinese plenipotentiaries.] GREECE. COURTESIES AT PIRÆUS TO EUROPEAN SQUADRON OF THE No. 53, Greek series.] UNITED STATES NAVY. Mr. Francis to Mr. Hay. LEGATION OF THE UNITED STATES, Athens, February 1, 1902. SIR: I have the honor to report that the European squadron of the U. S. Navy, consisting of the U. S. S. Chicago, Albany, and Nashville, under command of Rear-Admiral Cromwell, arrived at Piræus January 23 and remained at that port until to-day, when it sailed for Palermo. The visit of the American war ships to Greek waters elicited much favorable comment, and Admiral Cromwell and his officers were the recipients of marked social attentions during their stay here. They were formally presented by me to their majesties the King and Queen of Greece on January 27. The following evening the annual dinner was given at the palace in honor of the United States legation, to which Admiral Cromwell and nine of his officers were invited. The King and Queen, accompanied by Prince Andreas, visited the flagship Chicago on January 31. In conversation with the American minister Their Majesties expressed great pleasure at the presence of United States war vessels in the harbor of Piræus and said they hoped similar visits by representatives of our Navy.would be more frequent in the future than they had been in the past. I have, etc., CHARLES S. FRANCIS. Mr. Francis to Mr. Hay. No. 56, Greek series.] LEGATION OF THE UNITED STATES, SIR: The recent visit of the European squadron of United States war ships to Hellenic waters has produced much favorable comment among the Greeks, whose sentiments have been widely published in the press of Athens. The general tenor of such expression may be understood from the following translation of a leading editorial that appeared in the Embros of February 1: The American squadron, which has been for some days our guest at Piræus, leaves to-day. It is the first time that the Stars and Stripes have waved in Greece over so many war ships. The sailors on these ships, as well as the millions of their compatriots who live beyond the seas, may be sure their glorious flag never waved in a more friendly port than Piræus. Our nation has welcomed with great pleasure the American officers and their men, and as they depart bestows upon them their |