[Enclosure]
Agreed Terms of Understanding Recorded in the
Minutes of the Chinese and Japanese Delegations Concerning the
Conclusion of the Treaty for the Settlement of Outstanding
Questions Relative to Shantung30
I. Transfer of Public
Properties
1. Japanese subjects will be permitted, subject to the provisions of
Chinese law, to become members or shareholders of any of the
commercial companies to be formed with respect to public enterprises
mentioned in Paragraph 4 of Annex II of the Treaty.
II. Withdrawal of Japanese
Troops
2. After the withdrawal of the Japanese troops provided for in
Articles IX–XI of the Treaty, no Japanese military force of any kind
will remain in any part of Shantung.
III. Tsingtao–Tsinanfu
Railway
3. All light railways constructed by Japan in Shantung and all
properties appurtenant thereto shall be considered as part of the
properties of the Tsingtao–Tsinanfu Railway.
4. The telegraph lines along the Railway shall also be considered as
part of the Railway properties.
5. The Chinese authorities, upon taking over the Railway, shall have
full power and discretion to retain or to remove the present
employees of Japanese nationality in the service of the Railway. In
replacing such employees, reasonable notice shall be given before
the date of the transfer of the Railway. Detailed arrangements
regarding the replacements to take effect immediately on the
transfer of the Railway are to be made by the Joint Railway
Commission provided for in Article XVI of the Treaty.
6. The entire subordinate staff of the Japanese Traffic Manager and
the Japanese Chief Accountant of the Railway is to be appointed by
the Chinese Managing Director. After two years and a half from the
date of the transfer of the Railway, the Chinese Government may
appoint an Assistant Traffic Manager of Chinese nationality for the
period of two years and a half, and such Chinese Assistant Traffic
Manager may likewise be appointed at any time upon notice being
given for the redemption of the Treasury Notes under Article XVIII
of the Treaty.
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7. The Chinese Government is under no obligation to appoint Japanese
subjects as members of the subordinate staff above mentioned.
8. The redemption of the Treasury Notes under Article XVIII of the
Treaty will not be effected with funds raised from any source other
than Chinese.
9. The Chinese Government will ask the Japanese Government for such
information as may be useful in making the selection of the Japanese
Traffic Manager and the Japanese Chief Accountant of the
Railway.
10. All questions relating to the existing contracts or commitments
made by the Japanese authorities in charge of the Railway shall be
settled by the Joint Railway Commission; and, prior to the transfer
of the Railway, the said Japanese authorities will not make any new
contracts or commitments calculated to be harmful to the interests
of the Railway.
IV. Opening of the Former German
Leased Territory of Kiaochow
11. The term “lawful pursuits” used in Article XXIII of the Treaty
shall not be so construed as to include agriculture, or any
enterprise prohibited by Chinese law or not permitted to foreign
nationals under the treaties between China and foreign Powers, it
being understood that this definition shall be without prejudice to
the question of the salt industry provided for in Article XXV of the
Treaty or to any question relating to vested rights which shall be
determined in accordance with Article XXIV of the Treaty.
V. Post Offices
12. All the Japanese Post Offices outside of the former German Leased
Territory of Kiaochow shall be withdrawn simultaneously with the
transfer of the Tsingtao–Tsinanfu Railway, if such transfer shall
take place before January 1, 1923, and, in any case, not later than
the said date.
13. All the Japanese Post Offices within the former German Leased
Territory of Kiaochow shall be withdrawn simultaneously with the
transfer of the administration of the said Territory.
VI. Claims
14. The omission of any reference in the Treaty to the question of
claims which Chinese citizens may have against the Japanese
authorities or Japanese subjects, for the restitution of real
property
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in Shantung or
for damages to the persons and property of Chinese citizens in
Shantung, shall not prejudice such claims.
15. The Chinese authorities shall furnish the Japanese authorities
with a list of such claims together with all available evidence in
support of each claim. Justice shall be done through diplomatic
channel as regards the claims against the Japanese authorities, and
through ordinary judicial procedure as regards the claims against
Japanese subjects. With respect to the latter class of claims, the
investigation into actual facts of each case may, if necessary, be
conducted by a Joint Commission of Japanese and Chinese officials,
in equal number, to be specially designated for that purpose.
16. The Japanese Government shall not be held responsible for any
damages which may have been directly caused by military operations
of Japan during the late war.
- S. A. S.
- V. K. W. K.
- C. H. W.
- T. K.
- K. S.
- M. H.
Washington, February 4,
1922.
