The Truth about China and Japan/Document F

by B. L. Putnam Weale

(F)

(Translation)

KIRIN AND HEILUNGCHIANG MINING AND FORESTRY AGREEMENT

Note.—This agreement is a good illustration of Japanese secret methods: for a sum equivalent to three million pounds sterling the forests and mines of the two northernmost Manchurian provinces, with an area hardly inferior to France and Germany, and worth incalculable sums, are mortgaged in such a way as to give Japan prior rights. This agreement must be broken.

For the object of developing the Mining and Forestry industry in Kirin and Heilungchiang provinces, the Government of the Republic of China (hereafter called the First Party) agrees to conclude a loan for thirty million yen (Yen 30,000,000) with the Tsung Hua Hwai Yi Bank (hereafter called the Second Party). The Articles which are agreed to by the two Contracting Parties are as follows:

2. The total amount of this loan is thirty million yen.
3. The term of the loan is ten years, which therefore expires on the first of August, 1928. But the loan may be continued by a further arrangement between the said Parties at the expiration of the above stipulated term.
4. Five years from the date of signing this Agreement, however, a part of the loan may be repaid after a prior notice of six months.
5. The interest on this loan is 7%% annually, which is Y7.50 for every 100 yen, but for any additional term as provided for in Article 2 the rate of interest shall be fixed again according to the state of the money-market.
6. The payment of the first instalment of the interest, which begins from the date of the paying-over of the loan up to the 14th Jan., 1919, shall be made in advance by the First Party. After that, every six months' interest shall be paid in advance on the 15th January and 15th July of every year. But the last interest-payment shall be made by a calculation carried up to the last day of the term of loan and be paid in advance.
7. The payment of this loan will be made fully without any deduction.
8. The payment of the principal and interest shall be made in Tokio, Japan.
9. The security of this loan is as follows:
   (a) The Mines and Governmental Forests in the Kirin and Heilungchiang provinces.
   (b) The Governmental income on the production of the above mentioned Mines and Forests.
   
9. If the First Party wishes to conclude any other loan, with other Parties, using the above mentioned Mines and Forests or the Governmental incomes as security, an arrangement must be first made with the Second Party.
10. This Agreement shall be void when full redemption of capital and interest have been made.

This Agreement is in Japanese and Chinese, three copies in each language. The Ministry of Agriculture and Commerce, the Ministry of Finance, and the Second Party shall each retain one copy of both Japanese and Chinese. If there is dispute regarding the meaning, the Japanese copy shall be considered authoritative.

Tien Wen Lih, Minister of the
Ministry of Agriculture and Com-
merce.
Tsao Ru Lin, Minister of the Minis-
try of Finance.
Lu Tsung Yu, the General Mana-
ger of the Tsung Hua Hwai Yi
Bank.
Shih-nan-chuang-tse-long, the
Japanese Business Manager of
the Tsung Hua Hwai Yi Bank.

2nd August, 1918.