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The details pertaining to the transfer of administration and to the termination of the occupation shall be arranged at Alexandrovsk between the commander of the Japanese occupation army and the representatives of the Union of Soviet Socialist Republics.

ARTICLE IV

The high contracting parties mutually declare that there actually exists no treaty or agreement of military alliance nor any other secret agreement which either of them has entered into with any third party and which constitutes an infringement upon, or a menace to, the sovereignty, territorial rights or national safety of the other contracting party.

ARTICLE V

The present protocol is to be considered as ratified with the ratification of the Convention embodying Basic Rules of the Relations between Japan and the Union of Soviet Socialist Republics, signed under the same date.

In witness whereof the respective plenipotentiaries have signed the present protocol in duplicate in the English language, and have affixed thereto their seals.

Done at Peking on the twentieth day of January, 1925.

KENKICHI YOSHIZAWA.
LEV KARAKHAN.

PROTOCOL B

The high contracting parties have agreed upon the following as the basis for the concession contracts to be concluded within five months from the date of the complete evacuation of Northern Saghalien by Japanese troops, as provided for in Article III of Protocol A signed this day between the plenipotentiaries of Japan and of the Union of Soviet Socialist Republics:

1. The Government of the Union of Soviet Socialist Republics agrees to grant to Japanese concerns recommended by the Government of Japan the concession for the exploitation of 50 per cent, in area, of the oil fields in Northern Saghalien which are mentioned in the memorandum submitted to the Representative of the Union by the Japanese Representative on August 29, 1924.

For the purpose of determining the area to be leased to the Japanese concerns for such exploitation, each of the said oil fields shall be divided into chequer-board squares of from fifteen to forty dessiatines each, and a number of these squares representing 50 per cent of the whole area shall be allotted to the Japanese, it being understood that the squares to be so leased to the Japanese are, as a rule, to be non-contiguous to one another, but shall include all the wells now being drilled or worked by the Japanese.

With regard to the remaining unleased lots of the oil fields mentioned in the

said memorandum, it is agreed that should the Government of the Union of Soviet Socialist Republics decide to offer such lots, wholly or in part for foreign concession, Japanese concerns shall be afforded equal opportunity in the matter of such concession.

2. The Government of the Union of Soviet Socialist Republics also agrees to authorize Japanese concerns recommended by the Government of Japan to prospect oil fields, for a period of from five to ten years, on the eastern coast of Northern Saghalien over an area of one thousand square versts to be selected within one year after the conclusion of the concession contracts, and in case oil fields shall have been established in consequence of such prospecting by the Japanese, the concession for the exploitation of 50 per cent, in area, of the oil fields so established shall be granted to the Japanese.

3. The Government of the Union of Soviet Socialist Republics agrees to grant to Japanese concerns recommended by the Government of Japan the concession for the exploitation of coal fields on the western coast of Northern Saghalien over a specific area which shall be determined in the concession contracts.

The Government of the Union of Soviet Socialist Republics further agrees to grant to such Japanese concerns the concession regarding coal fields in the Doue district over a specific area to be determined in the concession contracts. With regard to the coal fields outside the specific areas mentioned in the preceding two paragraphs, it is also agreed that should the Government of the Union of Soviet Socialist Republics decide to offer them for foreign concession, Japanese concerns shall be afforded equal opportunity in the matter of such concession.

4. The period of the concession for the exploitation of oil and coal fields stipulated in the preceding paragraphs shall be from forty to fifty years. 5. As royalty for the said concessions, the Japanese concessionnaires shall make over annually to the Government of the Union of Soviet Socialist Republics, in case of coal fields, from 5 to 8 per cent of their gross output and, in case of oil fields, from 5 to 15 per cent of their gross output: provided that in the case of a gusher, the royalty may be raised up to 45 per cent of its gross output. The percentage of output thus to be made over as royalty shall be definitely fixed in the concession contracts, and it may be graduated according to the scale of annual output in a manner to be defined in such contracts. 6. The said Japanese concerns shall be permitted to fell trees needed for purposes of the enterprises and to set up various undertakings with a view to facilitating communication and transportation of materials and products. Details connected therewith shall be arranged in the concession contracts. 7. In consideration of the royalty above mentioned and taking also into account the disadvantages under which the enterprises are to be placed by reason of the geographical position and other general conditions of the district affected, it is agreed that the importation and exportation of any articles, materials or products needed for or obtained from such enterprises shall

be permitted free of duty, and that the enterprises shall not be subject to any such taxation or restriction as may in fact render their remunerative working impossible.

8. The Government of the Union of Soviet Socialist Republics shall accord all reasonable protection and facilities to the said enterprises.

9. Details connected with foregoing articles shall be arranged in the concession contracts.

The present protocol is to be considered as ratified with the ratification of the Convention embodying Basic Rules of the Relations between Japan and the Union of Soviet Socialist Republics, signed under the same date.

In witness whereof the respective plenipotentiaries have signed the present protocol in duplicate in the English language, and have affixed thereto their seals.

Done at Peking on the twentieth day of January, 1925.

KENKICHI YOSHIZAWA.
LEV KARAKHAN.

DECLARATION

In proceeding this day to the signature of the Convention embodying Basic Rules of the Relations between the Union of Soviet Socialist Republics and Japan, the undersigned plenipotentiary of the Union of Soviet Socialist Republics has the honor to declare that the recognition by the Government of the Union of Soviet Socialist Republics of the validity of the Treaty of Portsmouth of September 5, 1905, does not in any way signify that the Government of the Union shares with the former Tsarist Government the political responsibility for the conclusion of the said treaty.

Peking, January 20, 1925.

Monsieur le Ministre,

LEV KARAKHAN.

I have the honor on behalf of my government to declare that the Government of the Union of Soviet Socialist Republics agrees that the work which is now being carried on by the Japanese in Northern Saghalien both in the oil and the coal fields, as stated in the memorandum handed to the plenipotentiary of the Union of Soviet Socialist Republics by the Japanese plenipotentiary on August 29, 1924, be continued until the conclusion of the concession contracts to be effected within five months from the date of complete evacuation of Northern Saghalien by the Japanese troops, provided the following conditions be abided by the Japanese:

1. The work must be continued in strict accordance with the data of the said memorandum of August 29, 1924, as regards the area, the number of workers and experts employed, the machinery and other conditions provided in the memorandum.

2. The produce such as oil and coal cannot be exported or sold and may

only be applied to the use of the staff and equipment connected with the said work.

3. The permission granted by the Government of the Union of Soviet Socialist Republics for the continuation of the work shall in no way affect the stipulations of the future concession contracts.

4. The question of operation of the Japanese wireless stations in Northern Saghalien "is reserved for future arrangement, and will be adjusted in a manner consistent with the existing laws of the Union of Soviet Socialist Republics prohibiting private and foreign establishment of wireless stations."

I avail myself, etc.

Peking, January 20, 1925.

Monsieur l'Ambassadeur,

LEV KARAKHAN.

I have the honor to acknowledge the receipt of the following note from your Excellency, under this date:

I have the honor on behalf of my government to declare that the Government of the Union of Soviet Socialist Republics agrees that the work which is now being carried on by the Japanese in Northern Saghalien both in the oil and coal fields, as stated in the memorandum handed to the plenipotentiary of the Union of Soviet Socialist Republics by the Japanese plenipotentiary on August 29, 1924, be continued until the conclusion of the concession contracts to be effected within five months from the date of complete evacuation of Northern Saghalien by the Japanese troops, provided the following conditions be abided by the Japa

nese:

1. The work must be continued in strict accordance with the data of the said memorandum of August 29, 1924, as regards the area, the number of workers and experts employed, the machinery and other conditions provided in the memorandum.

2. The produce such as oil and coal can not be exported or sold and may only be applied to the use of the staff and equipment connected with the said work.

3. The permission granted by the Government of the Union of Soviet Socialist Republics for the continuation of the work shall in no way affect the stipulations of the future concession contracts.

4. The question of operation of the Japanese wireless stations in Northern Saghalien is reserved for future arrangement, and will be adjusted in a manner consistent with the existing laws of the Union of Soviet Socialist Republics prohibiting private and foreign establishment of wireless stations.

On behalf of my government, I have the honor to state that the Japanese Imperial Government agrees entirely with the said Note.

I avail myself, etc.

Peking, January 20, 1925.

KENKICHI YOSHIZAWA.

Annexed Note

In proceeding this day to the signature of the Convention embodying Basic Rules of the Relations between Japan and the Union of Soviet Socialist Republics, the undersigned, plenipotentiary of the Union of Soviet Socialist Republics, has the honor to tender hereby to the Government of Japan an expression of sincere regrets for the Nikolaievsk incident of 1920. LEV KARAKHAN.

Peking, January 20, 1925.

PROTOCOL OF SIGNATURE

Kenkichi Yoshizawa, His Imperial Japanese Majesty's Envoy Extraordinary and Minister Plenipotentiary to China, and Lev Mikhailovitch Karakhan, Ambassador of the Union of Soviet Socialist Republics to China, authorized under their respective full powers found in due and good form, met this day at Peking, and closely examined the following documents:

1. A Convention embodying Basic Rules of the relations between Japan and the Union of Soviet Socialist Republics.

2. Two Protocols.

3. One Declaration. 4. One Set of Notes.

5. One Annexed Note.

Having agreed upon every term and stipulation contained therein, the plenipotentiaries have officially signed and sealed the respective documents. The two plenipotentiaries further agreed that there should be apposed to the present protocol the memorandum, handed by the Japanese plenipotentiary to the plenipotentiary of the Union of Soviet Socialist Republics on August 29th, 1924, and embodying a statement on the conditions of oil and coal fields worked by the Japanese in Northern Saghalien.

In faith whereof, the respective plenipotentiaries of the two high contracting parties have signed the present protocol in duplicate, in the English language, and have affixed thereto their seals.

Done at Peking this twentieth day of January one thousand nine hundred and twenty-five.

K. YOSHIZAWA.

L. KARAKHAN.

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