File No. 551/83–84.

Chargé Fletcher to the Secretary of State.

No. 794.]

Sir: Referring to my No. 778 of the 2d instant, I have the honor to inclose a translation of the official Chinese text of the recent Russo-Chinese agreement relating to the establishment of customhouses in Northern Manchuria and fixing the duties to be levied on imports on land-borne goods thereat.

I have, etc.,

Henry P. Fletcher.
[Inclosure—Translation.]

Russo-Chinese experimental regulations for the establishment of customs-houses in North Manchuria.

Agreement of July 28, 1907.

I.

The convention for the land trade between Russia and China (1862) provides that no duties shall be levied on the frontier of the two countries within the limit of 100 li (30 miles);a and the Chinese Eastern Railway agreement provides that China must establish customs stations where the railway line crosses the frontier.b

Now, therefore, China agrees not to collect duty for the present upon goods shipped by railway to the stations within the 100–li limit on the frontier.

II.

Certain areas shall be fixed within which goods shipped by rail shall be required to pay but two-thirds of regular import duty.

At Harbin, the main station on the line, such two-thirds duty area shall extend to all points within a radius of 10 Chinese li (3 miles) from the station. At the following more important places such area shall extend to a distance of 5 li in each direction from the station, viz: Man-chu-li, Cha-lai-no-erh, [Page 139] Cha-lan-t’un, Fn-lu-erh-chi, Tsitsi-ha-erh, A-shih-ho, I-mien-p’o, Hai-lin, Yieh-ho, Mu-lin, Chiao-chie-chan, Shuang-cheng-p’u, Lao-sbao-kou, Yao-men, and K’una-ch’eng-tzu. The two-thirds duty regulation shall be put into effect at all the above places, and within the area around each as stipulated, with the exception, however, of Man-chu-li and Chiao-chie-chan (on the Sui-fen River) both of which places are situated within the 100–li duty-free limit. In addition to the above, there shall be two-thirds duty areas extending to a distance of three li in each direction from all the smaller stations on the Eastern Railway.

If, however, such goods are shipped out of the places above mentioned and the areas described, all other places being in inland territory, the full amount of the regular duty thereon must be made up and the goods considered subject to inland trade regulations.

III

This reduction of one-third of the regular import duty on goods shipped by railway is made by special agreement between China and Russia. China agrees, however, that not only Russian but all foreign merchandise shipped to China over the Eastern Railway, are equally affected.

Russia, on her part, agrees that all duty collected on goods which are not exempt from duty by the terms of the Russo-Chinese land trade convention shall be levied according to the new customs tariff, one-third of the regular amount being deducted.

IV

These articles of agreement shall serve in a general way for experimental regulations for North Manchnrian customs-houses. If it shall become necessary to make any additions or alterations therein, or if any corrections shall be found necessary in order that the regulations shall be in harmony with Chinese customs procedure, such changes may be considered and decided upon by both parties to this agreement after one year.

As to detailed regulations for customs-houses, the mapping of the different areas, and the locating of small stations, these matters shall be discussed and decided as soon as possible by representatives of the two countries.

exposition of article ii.

Some controversy with regard to the interpretation of Article II of the above agreement having occurred, the Chinese board of foreign affairs at a later date officially communicated the following explanation of its understanding of that article to the Russian minister in Peking and received his acceptance of the same:

Article II of the experimental regulations agreed upon by China and Russia for the opening of customs-houses in northern Manchuria contains the following clause:

“If, however, such goods are shipped out of the places above mentioned and the areas described, all other places being in inland territory, the full amount of the regular duty thereon must be made up and the goods considered subject to inland trade regulations.”

The meaning of this article is that all goods shipped out of the places mentioned and the areas described will (since all other places are considered to be within inland territory) be required to make up the full amount of the regular import duty by paying the one-third not previously collected. This additional one-third duty will take the place of a transit duty, and upon payment thereof a pass will be issued permitting the goods to be shipped to any point within the three eastern Provinces (Manchuria) under the inland trade regulations. Without such pass the goods will be subject to likin and other duties at all customs barriers passed. Furthermore, if it is proposed to ship these goods upon which the full import duty has been paid from the three eastern Provinces into China proper then a further half-duty will be collected thereon in accordance with the regular customs tariff, this being the transit duty for China proper. Upon payment of this duty a pass will be issued exempting the goods from further duty, but without such pass likin and other duties will be collected at all customs barriers passed.

And in addition it is clearly understood that this plan as explained is experimental, even as the regulations themselves, and if any additions or alterations are found necessary a consideration of the matter shall be held by both parties to this agreement one year hence.

  1. See Mayer’s “Treaties between the Empire of China and Foreign Powers,” page 113.
  2. See Rockhill’s “Treaties and Conventions with or concerning China and Korea,” page 214.