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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 neighbourhood. 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 merchandize, 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 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 offence, 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 Customs at the nearest open port who shall report the matter to the Minister of Commerce. The latter in conjunction with the Governor-General or 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. JAS. L. MACKAY.

(L.S.)

(Signature of his Excellency Lü Hai-huan.)
(Signature of his Excellency Shêng Hsuan-huai.)

(Seal of the Chinese Plenipotentiaries.)

No. 40.

CONVENTION BETWEEN GREAT BRITAIN AND CHINA RESPECTING THIBET, TO WHICH IS ANNEXED THE CONVENTION BETWEEN GREAT BRITAIN AND THIBET, SIGNED AT LHASA, SEPTEMBER 7, 1904.

Signed at Peking, April 27, 1906.*

[Ratifications exchanged at London, July 23, 1906.]

WHEREAS His Majesty the King of Great Britain and Ireland and of the British Dominions beyond the Seas, Emperor of India, and His Majesty the Emperor of China are sincerely desirous to maintain and perpetuate the relations of friendship and good understanding which now exist between their respective Empires;

And whereas the refusal of Thibet to recognize the validity of or to carry into full effect the provisions of the Anglo-Chinese Convention of March 17, 1890, and Regulations of December 5th, 1893, placed the British Government under the necessity of taking steps to secure their rights and interests under the said Convention and Regulations;

And whereas a Convention of ten Articles was signed at Lhasa on September 7th, 1904, on behalf of Great Britain and Thibet, and was ratified by the Viceroy and Governor-General of India on behalf of Great Britain on November 11th, 1904, a declaration on behalf of Great Britain modifying its terms under certain conditions being appended thereto;

His Britannic Majesty and His Majesty the Emperor of China, have resolved to conclude a Convention on this subject and have for this purpose named I'lenipotentiaries, that is to say:

His Majesty the King of Great Britain and Ireland:

Sir Ernest Mason Satow, Knight Grand Cross of the Most Distinguished Order of Saint Michael and Saint George, His said Majesty's Envoy Extraordinary and Minister Plenipotentiary to His Majesty the Emperor of China;

and His Majesty the Emperor of China:

His Excellency Tong Shoa-yi, His said Majesty's High Commissioner Plenipotentiary and a Vice-President of the Board of Foreign Affairs;

Signed also in Chinese.

who, having communicated to each other their respective full powers, and finding them to be in good and true form, have agreed upon and concluded the following Convention in six Articles:

ARTICLE I.

Confirmation of Convention of September 7, 1904, between Great Britain and Thibet.

The Convention concluded on September 7th, 1904, by Great Britain and Thibet, the texts of which in English and Chinese are attached to the present Convention as an Annex, is hereby confirmed, subject to the modification stated in the Declaration appended thereto, and both of the High Contracting Parties engage to take at all times such steps as may be necessary to secure the due fulfilment of the terms specified therein.

ARTICLE II.

Non-interference of Great Britain or other foreign Countries in Thibet.

The Government of Great Britain engages not to annex Thibetan territory or to interfere in the administration of Thibet. The Government of China also undertakes not to permit any other foreign State to interfere with the territory or internal administration of Thibet.

ARTICLE III.

Concessions in Thibet are denied to any other State but China.Telegraph Lines to India.

The concessions which are mentioned in Article 9 (d) of the Convention concluded on September 7th, 1904, by Great Britain and Thibet are denied to any State or to the subject of any State other than China, but it has been arranged with China that at the trade marts specified in Article 2 of the aforesaid Convention Great Britain shall be entitled to lay down telegraph lines connecting with India.

ARTICLE IV.

Provisions of Anglo-Chinese Convention of 1890 and Regulations of 1893.

The provisions of the Anglo-Chinese Convention of 1890* and Regulations of 1893* shall, subject to the terms of this present Convention and Annex thereto, remain in full force.

* Not printed, as they are Indian documents relating to local and frontier questions with Thibet.

ARTICLE V.

English Text of Convention to be authoritative.

The English and Chinese texts of the present Convention have been carefully compared and found to correspond, but in the event of there being any difference of meaning between them the English text shall be authoritative.

ARTICLE VI.

Ratifications.

This Convention shall be ratified by the Sovereigns of both countries, and ratifications shall be exchanged at London within three months after the date of signature by the Plenipotentiaries of both Powers.

In token whereof the respective Plenipotentiaries have signed and sealed this Convention, four copies in English and four in Chinese.

Done at Peking this twenty-seventh day of April, one thousand nine hundred and six, being the fourth day of the fourth month of the thirty-second year of the reign of Kuang Hsü.

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Whereas doubts and difficulties have arisen as to the meaning and validity of the Anglo-Chinese Convention of 1890, and the

Signed also in Chinese.

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