13

A.--5

but were ultimately completely successful. In 1898 Germany had, by convention with China, obtained a ninty-nine years' lease of part of the Chinese Province of Shantung, including the Bay of Kiaochow, together with, certain railway concessions. In 1914 Japan conquered the leased territory from Germany, and has ever since remained in occupation of it. By the Treaty of Versailles Germany renounced in favour of Japan all her rights in respect of this territory. The Chinese Government refused, however, to consent to this settlement, and declined accordingly to be a party to the Treaty of Versailles. The claim of China to the restoration of this territory has ever since remained a source of trouble, in the Far East. By the Shantung Treaty which has been happily arranged at Washington this difficulty has been settled to the satisfaction of both parties. Japan surrenders, upon terms agreed upon, all her interests, both territorial and economic, in the German leased territory of Kiaochow. The Shantung Railway is restored to China on payment of the value of the Japanese interest therein. All Japanese troops are to be withdrawn from the district, and the territory is to be opened by China to the foreign trade of all nations. The Chinese Customs Treaty-. The Chinese Customs Treaty is designed to increase the power and. stability of the Chinese Government by permitting that Government to raise further Customs revenue. .For many years the Chinese maritime Customs have been withdrawn by international agreement from the unrestricted authority of the Chinese Government. The tariff was fixed by agreement with the Western Powers, and the administration of the Customs laws was in part controlled by those Powers. The maintenance of this system is still deemed necessary, but provision is now made for such modification of the tariff as will, substantially increase the financial resources of the Chinese Government. Treaty for the Preservation of the Territorial and Administrative Integrity and Independence of China. The third and last Chinese Treaty is of a general and residuary character. By the first Article the Powers agree — "(!.) To respect the sovereignty, the independence, and. the territorial and administrative integrity of China : " (2.) To provide the fullest and most unembarrassed opportunity to China to develop and maintain for herself an effective and stable Government: " (3.) To use their influence for the purpose of effectually establishing and maintaining the principle of equal opportunity for the commerce and industry of all nations throughout the territory of China : " (4.) To refrain from taking advantage of conditions in China in orderto seek special rights or privileges which would abridge the rights of subjects and citizens of friendly States, and from countenancing action inimical to the security of such States." By Article 2 the Powers agree not to enter into any treaty, arrangement, or understanding which would infringe or impair the principles so declared. By Article 3 the Powers agree that they will not seek, or support their nationals in seeking, any such monopolies or preferential rights in Chinese territory as would be inconsistent with, the principle of equal opportunity for all nations. By Article 4 the Powers agree not to support any agreements by their nationals designed to create spheres of influence or territorial monopolies in China. By Article 5 China undertakes not to exercise or permit in respect of Chinese raihvays any discrimination between the commerce of one nation and that of another. Article 6 contains an undertaking by the Powers to respect China's neutrality in any future war. By Article 7 the Powers bind themselves to full and frank communication with each other as to all questions arising out of this Treaty. By Article 8 all other Powers are invited to adhere to the Treaty.