putes arising
from lease contracts, shall be tried and adjudicated by Chinese
Authorities and the Japanese Consul may also depute an officer to
attend the proceedings. When the judicial system in the said
Province is completely reformed, all the civil and criminal cases
concerning Japanese subjects shall be tried entirely by Chinese law
courts.

RELATING TO EASTERN INNER MONGOLIA

(To be Exchanged by Notes)

1. The Chinese Government declare that China will not in future
pledge the taxes, other than customs and salt revenue of that part
of Eastern Inner Mongolia under the jurisdiction of South Manchuria
and Jehol Intendency, as security for raising a foreign loan.

2. The Chinese Government declare that China will herself provide
funds for building the railways in the part of Eastern Inner
Mongolia under the jurisdiction of South Manchuria and the Jehol
Intendency; if foreign capital is required, China will negotiate
with Japanese capitalists first, provided this does not conflict
with agreements already concluded with other Powers.

The Chinese Government agree, in the interest of trade and for the
residence of foreigners, to open by China herself certain suitable
places in that part of Eastern Inner Mongolia under the jurisdiction
of South Manchurian and the Jehol Intendency, as Commercial Marts.

The regulations for the said Commercial Marts will be made in
accordance with those of other Commercial Marts opened by China
herself.

GROUP III

The relations between Japan and the Hanyehping Company being very
intimate, if the said Company comes to an agreement with the
Japanese capitalists for co-operation, the Chinese Government shall
forthwith give their consent thereto. The Chinese Government further
declare that China will not convert the company into a state
enterprise, nor confiscate it, nor cause it to borrow and use
foreign capital other than Japanese.

Letter to be addressed by the Japanese Minister to the Chinese
Minister of Foreign Affairs.

Excellency: I have the honour to state that a report has reached me
that the Chinese Government have given permission to foreign nations
to construct, on the coast of Fukien Province, dock-yards, coaling
stations for military use, naval bases and other establishments for
military purposes; and further