a and Eastern Inner Mongolia; if foreign capital is
required China may negotiate for a loan with Japanese capitalists first;
and further, the Chinese Government, when making a loan in future on the
security of taxes in the above mentioned places (excluding the salt and
customs revenue which has already been pledged by the Chinese Central
Government) may negotiate for it with Japanese capitalists first."

In reply I beg to state that I have taken note of the same.

I avail, etc.,

(Signed) HIOKO EKI.

His Excellency,
Lou Tseng-tsiang,
Minister of Foreign Affairs.

EXCHANGE OF NOTES RESPECTING THE EMPLOYMENT OF ADVISERS IN SOUTH
MANCHURIA

--Note--

Peking, the 25th day of the 5th month of the 4th year of the Republic of
China.

Monsieur le Ministre,

In the name of the Chinese Government, I have the honour to make the
following declaration to your Government:--

"Hereafter, if foreign advisers or instructors on political, financial,
military or police matters are to be employed in South Manchuria,
Japanese may be employed first."

I avail, etc.,

(Signed) LOU TSENG-TSIANG.

His Excellency,
Hioki Eki,
Japanese Minister.

--Reply--

Peking, the 25th day of the 5th month of the 4th year of Taisho.

Excellency,

I have the honour to acknowledge the receipt of Your Excellency's note
of this day's date in which you made the following declaration in the
name of your Government:--

"Hereafter if foreign advisers or instructors in political, financial,
military or police matters are to be employed in South Manchuria,
Japanese may be employed first."

In reply, I beg to state that I have taken note of the same.

I avail, etc.,

(Signed) HIOKI EKI.

His Excellency,
Lou Tseng-tsiang,
Minister of Foreign Affairs.

EXCHANGE OF NOTES RESPECTING THE EXPLANATION OF "LEASE BY NEGOTIATION"
IN SOUTH MANCHURIA

--Note--

Peking, the 25th day of the 5th month of the 4th year of Taisho.

Excellency,

I have the honour to state that the term lease by negotiation contained
in Article 2 of the Treaty respecting South Manchuria and Eastern Inner
Mongolia signed this day shall be understood to imply a long-term lease
of not more than thirty years and also the possibility of its
unconditional renewal.

I avail, etc.,

(Signed) HIOKI EKI.

His Excellency,
Lou Tseng-tsiang,
Minister of Foreign Affairs.

--Reply--

Peking, the 25th day of the 5th month of the 4th year of the Republic of
China.

M