The Truth about China and Japan/Document L

by B. L. Putnam Weale

(L)

TEXT OF SINO-JAPANESE WIRELESS INSTALLATION AGREEMENT

Explanatory Note.—The annexed Wireless Telegraph agreement is important to complete the general survey of the methods which Japan has used and is still using to get control of China.

By virtue of this agreement Japanese agents for a period of thirty years will control the central wireless installation of the capital of China—that is, they can build the station, which is extremely doubtful. In the matter of wireless, as in all scientific work, the Japanese are mere copyists, their wireless work being extremely imperfect

It should be noted that the British Marconi Company had a preliminary agreement for this installation on a purely commercial basis—but that lack of proper diplomatic support, coupled with Japanese intrigue and money, allowed this Japanese invasion to take place.

It is proposed to erect in China a great Wireless Telegraphic Installation that shall be capable of communicating telegraphically direct with Japanese, European or American great installations. The conditions of agreement are as follows:—

2. This Agreement is contracted by the Chinese Ministry of the Navy of the one part (hereinafter called "the Chinese Government") and by Messrs. The Mitsui Co., a Japanese firm, undertaking the contract (hereinafter called "the Contractors") of the other part, and the two contracting parties have mutually agreed upon the conditions of this Agreement.
3. The Chinese Government have consented to allow the Contractors to erect a great wireless installation whose forwarding and receiving apparatus shall be capable of communicating messages with Japan, Europe and America. The site of the installation shall, after being designated by the Chinese Government, be either bought or leased for the purposes of erection.
4. The cost for the lease or purchase of lands, erection of buildings and masts or towers, and the construction, transport and erection of the plant, etc., is estimated to be £536,267 (the estimates are attached hereinafter), a sum which the Contractors shall raise and shall also assume entire responsibility for all matters connected with the construction and equipment.
5. The above mentioned capital sum of £536,267, which is for the purpose of constructing the telegraphic installation, shall be repaid in thirty equal annual instalments, that is to say, the whole of this capital shall be divided into thirty equal parts, of which one part shall be paid each year. The part that remains unpaid shall bear interest at the rate of 8% per annum, to be included in the yearly instalment of repayment. The date for each yearly instal ment of repayment shall be fixed to be on the 31st of December, solar calendar, to commence from the year that operations begin.
6. The Contractor's security for the above capital and for the annual interest shall be from the remaining balance of the receipts of the telegraphic installation after due deduction of all disbursements that are to be drawn from that source, hence the Contractors have to assume sole responsibility for the repayment of all disbursements; should the receipts be insufficient to meet the disbursements, then for the repayments of capital and interest the Contractors shall also assume responsibility, but the Chinese Government shall confer upon the Contractors full controlling powers within the period of thirty years duration.
7. During the period of sole control of the telegraphic installation by the Contractors, the Chinese Government shall be entitled to a royalty of 10% of the receipts of the workings of the telegraphic installation, which is to be calculated in accordance with the whole year of the solar calendar and shall be payable at the end of each year. Should the receipts earned for the whole year's working of the telegraphic installation be insufficient to cover the payments of disbursements then the Chinese Government shall still be entitled to a ten per centum of the total receipts collected during the whole year.
8. The Chinese Government have power to appoint officers in the installation to oversee and supervise accounts, in order that a proper check may be established over the royalty as set forth in Article 6. Besides the appointment of above-mentioned officials, students may be appointed to practise at the station, but the Chinese Government shall bear the whole of the expenses that these students may cost.
9. Owing to the very great responsibility involved with regard to receipts of the working of the station, the Chinese Government must accord its assent to unrestricted communication with wireless stations in all foreign countries and with seaports and ships, with a view to future development, but in communication with wireless stations in the interior of China, with the exception of military communications which shall obey the orders of military organizations, all other commercial communications in the interior of China shall be uniformly refused acceptance. In the event of the Chinese Government being on a war footing this station shall obey all martial orders laid down in China.
10. At any time within the thirty-year period, the Government may take back for itself the station. At that time all outstanding balance yet unpaid and accrued interest of 8% up to that date shall be wholly liquidated by the Chinese Government; the Contractors shall then at the same time have vitiated all their rights of movements vis-à-vis the station. According to the above-mentioned procedure, the Contractors shall previous to the handing over of the station to the Chinese Government make an inventory in the Chinese and English languages of all articles and things that compose the station and present the inventory to the Ministry.

Government Must Recognize Contractor's Proprietary Rights in Case of Failure of Payment

10. Should the Chinese Government be unable to repay the sums in accordance with what is stipulated in Article 9, then the Government has no power to remove from the Contractors their control of the station. Should the Government act in any manner of such a nature it must recognize the Contractors' possession of proprietary rights over the Telegraphic Station.
11. Since the Contractors have to bear the responsibility of repayment of capital and payment of annual interest during the term of thirty years, therefore the Contractors have the right to transfer the Telegraphic Station to another company, but the consent of the Chinese Government must be obtained otherwise it would not be lawful.
12. At the end of the period of thirty years (should provision of Article 9 have not been acted upon), then, irrespective of the capital having been totally redeemed or otherwise, this Telegraphic Station shall then wholly be handed over to the Chinese Government without price and the Government shall take over the Station, the Contractors making demand for no recompense whatsoever, but the Government shall give six months previous notice, otherwise the Contractors shall appropriate a 5% of the annual receipts up to the fifth year as remuneration.

Personnel of Station Must Be Retained after Redemption of Loan

13. After the Chinese Government shall have taken over the Telegraphic Station as a Government property, the service of the personnel of the Station shall be retained by the Government, who shall pay them their cash salaries. Should there be any one unsuitable, that person may be discharged from the service, but during the term of control by the Contractors all members of the staff shall be found by the Contractors, who shall pay them their salaries, such salaries shall be drawn from the receipts of the Station.
14. Should greater power be added or additional plant be purchased during the term of thirty years of control of the Station by the Contractors, the Contractors shall assume responsibility for such augmentations, but the consent of the Chinese Government for such addition of capital outlay must be obtained and the repayment of such additional outlay shall still be within the same period of thirty years as aforesaid—that is, devoted to repayments of capital and payment of interest.
15. The Chinese Government shall issue huchows (exemption certificates) for the Contractors to facilitate the transport of all kinds of machinery, material and exempt such from likin and other inland miscellaneous charges, but the Contractors must furnish full lists of all machinery material in order that they may be examined and then huchows be issued for these consignments. As to other matters, the regular ordinary regulations in force in China shall be followed.
16. Should Chinese products of suitable quality and cheaper price be available for use among the material needed for the Telegraphic Station such products shall be given first preference.
17. This Agreement is done in three exemplars, each, in the Chinese and English languages. Should there arise any difference in interpretation of any point, the English version shall be the authoritative text.

(Signed) The Ministry of the Navy of
the Republic of China.
The Representative of Messrs.
The Mitsui Co.

Done in the
7th Year of the Republic of China,
on the 21st Day of February.

Note to the Ministry of the Navy from Mr. Omura, Representative of Messrs. Mitsui & Co.

21st February.

Gentlemen,

With reference to the Supplementary Articles of Agreement, in Article 2 it is stated that while the control of the Telegraphic Station is assumed by the Chinese Government all disbursements and the service of the amortization of the capital and interest payments shall be wholly assumed by the Chinese Government, should your Ministry entertain misunderstandings as to this Clause our firm is willing to undertake the control of the Station on behalf of your Government under instructions from your Government, and our firm will also undertake to repay capital and interest and all disbursements shall be paid, and act in accordance with the Articles of conditions as agreed upon in the Proper Agreement. The three clauses set forth below are for the purpose of safeguarding the interests of our firm and are as follows:

1. The Chinese Government must give one year's previous notice in order that reliable measures as to procedure may be devised.
2. During the period that the Telegraphic Station is under the control of the Chinese Government the interest on the capital and all disbursements shall be borne by the Chinese Government independently in accordance with the stipulations set forth in the present Agreement.
3. During the period that the Telegraphic Station is under the control of our firm, our firm shall be allowed to collect charges for transmission of all official and commercial messages.

With respects, etc.

This note is attached to the end of the Supplementary Articles Agreement. As both parties are mutually agreeable this is sealed in testimony.

Ministry of the Navy of the Republic
of China.
Representative of Messrs. Mitsui Co.

Supplementary Articles to the Agreement

The Ministry of the Navy (hereinafter called "the Chinese Government") with the Japanese firm, Messrs. Mitsui & Co., the contracting engineers (hereinafter called "the contractors") have mutually come to an agreement upon supplementary articles, in the 7th year on the 21st day of February, for the construction of a wireless telegraph station.

According to the agreement the Chinese Government may at any time repay the outstanding unpaid balance and take over the station as a Government property.

Now it is agreed that the procedure to be adopted after the completion of the erection of the telegraph station, is that the station shall be immediately taken over by the Chinese Government. The expenses necessary for its erection shall be raised by the contractors for the Chinese Government, hence the following supplementary articles have been mutually agreed upon by the Chinese Government and the contractors, and are as follows:

1. The contractors undertake to raise a loan for a total sum of £536,267 for the Chinese Government which shall be placed to the credit of the contractors in a Japanese bank for the purpose of constructing a wireless telegraph station.
2. The repayment of the above-mentioned capital sum by the Chinese Government shall be spread over thirty years, that is to say, the total capital shall be divided into thirty equal parts and one part shall be repaid each year, amounting to a sum of £17,875.11.4; the unpaid outstanding balance shall bear interest of eight per cent. per annum, to be payable on the same date as the date of repayment of the annual instalment, to which it shall be added.
3. The date of repayment of capital each year shall be fixed to be on December 31 of the Solar Calendar. The first year for commencing the repayment shall be from the tenth year after the year that the station commences to operate after its construction and erection are completed and it can communicate telegraphically with the stations erected in Japan, Europe and America.
4. The rate for the repayment of interest by the Chinese Government shall be according to Article 2 of the Supplementary Agreement, and interest shall commence to be paid on December 31 of the year that the erection of the telegraph station is completed.
5. According to this agreement of supplementary articles, since the control of the telegraphic station and the powers of its commercial management shall be taken over again by the Chinese Government, therefore, should the telegraphic station receipts from its workings be deficient to meet the payment of disbursements and so forth, the contractors shall not assume any responsibility and Article 5 of the proper agreement shall also be vitiated.
6. After the taking over again of the telegraphic station by the Chinese Government should in the course of its commercial operation there arise any impediment from other overseas cable companies with whom the Chinese Government have already entered into any agreements, then the contractors shall act under the instructions of the Chinese Government, whereby the contractors shall devise means to remove any restrictive conditions by negotiation with those cable companies with the station, and should no satisfactory solution be arrived at then the repayments of the instalments that the Chinese Government ought to repay shall be postponed for the time being until some solution shall have been come to, after which repayments may be resumed.
7. The present supplementary article of agreement shall be an integral part of the proper agreement and shall be identically acted upon in accordance with Article 17 of the proper agreement.

(Ministry of the Navy of the Republic of China) (The Japanese firm, Mitsui & Co.; Representative, Omura). Done in the 7th year of the Republic of China, on the 21st day of February.

Note to the Ministry op the Navy, from Mr. Omura

Gentlemen,

The agreements entered into between your Government and the Great Northern and Eastern Extension Cable Companies state that prior to the year 1930 no other land telegraph station shall be allowed to communicate telegraphically with Europe and America and so forth, our firm shall duly respect this clause within the year limit prior to the year 1930 as provided for in Article 8 of our Supplementary Articles Agreement. From the year 1931 your Government's agreement with the Great Northern and Eastern Extension Cable Companies will terminate and lose its virtue, and our firm then shall be able to connect with Europe and America and all the world round by commercial communication without restriction. We, therefore, hereby make this declaration, and respectfully request you to take note. This note is attached to the end of our Supplementary Articles Agreement. As both parties are in mutual agreement, seals are affixed in testimony. (Mitsui & Co.), February 21.

To the Ministry of the Navy, from Mr. Omura.

 

Gentlemen,

The agreement that our firm has entered into with your Ministry for the construction of a great wireless telegraph station, all the necessary material required is selected from noted factories in Japan and is either purchased from Europe or America and is of the best quality and in no case will any inferior material be employed in substitution. We hereby make this declaration and respectfully request you to take note. This note is attached to the Supplementary Articles Agreement, and as both parties are in agreement seals are affixed in testimony (Mitsui & Co.; Representative, Omura), February 21.

Declaration

Whereas the Proper and Supplementary Agreements for the construction of a large wireless telegraph station were completed on February 21, 1918, and whereas it is mutually agreed by both parties that during the term of thirty years no other party shall be allowed to erect a similar wireless telegraph station for communicating telegraphically with Japan, Europe and America, neither may the Chinese Government itself erect an installation, and the Cabinet have in meeting passed the application, and whereas the conditions of the agreement have been mutually agreed upon and the agreement has been signed by both the contracting parties at the end of the document, and, furthermore, the statement as set forth in the preceding has been mutually agreed upon by both the contracting parties and that the procedure set forth in Article 17 of the Proper Agreement shall be adopted.

7th year of the Republic of China, March 5. (Mitsui & Co., Omura.)