The Government of the Autonomous Three Eastern Provinces of the Republic of China and the Government of the Union of Soviet Socialist Republics, desiring to promote the friendly relations and regulate the questions affecting the interests of both Parties, have agreed to conclude an Agreement between the two Parties, and to that end named as their Plenipotentiaries, that is to say:
The Government of the Autonomous Three Eastern Provinces of the Republic of China:
Cheng Tsian, Lui Yung-huan and Chung Shih-ming.
The Government of the Union of Soviet Socialist Republics:
Nikolai Kirillovich Kouznetzov.
Who, having communicated to each other their respective full powers, found to be in good and due form, have agreed upon the following Articles:
ARTICLE I
The Chinese Eastern Railway
The Governments of the two Contracting Parties agree to settle the question of the Chinese Eastern Railway as hereinafter provided:
(1) The Governments of the two Contracting Parties declare that the Chinese Eastern Railway is a purely commercial enterprise.
The Governments of the two Contracting Parties mutually declare that with the exception of matters pertaining to the business operations which are under the direct control of the Chinese Eastern Railway, all other matters affecting the rights of the National and the Local Governments of the Republic of China, such as judicial matters, matters relating to civil administration, military administration, police, municipal government, taxation and landed property (with the exception of lands required by the Chinese Eastern Railway itself) shall be administered by the Chinese Authorities.
(2) The time-limit as provided in Article XII. of the Contract for the Construction and Operation of the Chinese Eastern Railway of August 27th/September 8th, 1896, shall be reduced from eighty to sixty years, at the expiration of which the Government of China shall enter gratis into possession of the said Railway and its appurtenant properties.
Upon the consent of both Contracting Parties, the question of a further reduction of the said time-limit, that is, sixty years, may be discussed.
From the date of signing the present agreement, the Union of Soviet Socialist Republics agrees that China has the right to redeem the Chinese Eastern Railway. At the time of redemption, the two Contracting Parties shall determine what the Chinese Railway had actually cost, and it shall be redeemed by China with Chinese capital at a fair price.
(3) The Government of the Union of Soviet Socialist Republics agrees in a Commission to be organized by the two Contracting Parties to settle the question of the obligations of the Chinese Eastern Railway Company in accordance with Section 4 of Article IX. of the Agreement on General Principles for the Settlement of the Question between the Union of Soviet Socialist Republics and the Republic of China signed on May 31st, 1924, at Peking.
(4) The Governments of the two Contracting Parties mutually agree that the future of the Chinese Eastern Railway shall be determined by the Union of Soviet Socialist Republics and China to the exclusion of any third party or parties.
(5) The Contract for the Construction and Operation of the Chinese Eastern Railway of August 27th/September 8th, 1896, shall be completely revised, in accordance with the terms specified in this Agreement, by a Commission of the two Contracting Parties in four months from the date of signing the present Agreement. Pending the revision, the rights of the two Governments arising out of this Contract, which do not prejudice China's rights of sovereignty, shall be maintained.
(6) The Railway shall establish, for discussion and decision of all matters relating to the Chinese Eastern Railway, a Board of Directors
to be composed of ten persons, of whom five shall be appointed by China and five by the Union of Soviet Socialist Republics.
China shall appoint one of the Chinese Directors as President of the Board of Directors, who shall be ex-officio the Director-General.
The Union of Soviet Socialist Republics shall appoint one of the Russian Directors as Vice-President of the Board of Directors, who shall be ex-officio the Assistant Director-General.
Seven persons shall constiute a quorum, and all decisions of the Board of Directors shall have the consent of not less than six persons before they can be carried out.
The Director-General and the Assistant Director-General shall jointly manage the affairs of the Board of Directors, and they shall jointly sign all the documents of the Board.
In the absence of either the Director-General or the Assistant Director-General, their respective Governments may appoint another Director to officiate as the Director-General or the Assistant Director-General (in the case of the Director-General, by one of the Chinese Directors, and in that of the Assistant Director-General, by one of the Russian Directors).
(7) The Railway shall establish a Board of Auditors to be composed of five persons, namely, two Chinese Auditors, who shall be appointed by China, and three Russian Auditors, who shall be appointed by the Union of Soviet Socialist Republics.
The Chairman of the Board of Auditors shall be elected from among the Chinese Auditors.
(8) The Railway shall have a Manager, who shall be a national of the Union of Soviet Socialist Republics, and two Assistant Managers, one to be a national of the Union of Soviet Socialist Republics, and the other to be a national of the Republic of China.
The said officers shall be appointed by the Board of Directors and such appointments shall be confirmed by their respective Governments.
The rights and duties of the Manager and the Assistant Managers shall be defined by the Board of Directors.
(9) The Chiefs and Assistant Chiefs of the various departments of the Railway shall be appointed by the Board of Directors.
If the Chief of a department is a national of the Republic of China, the Assistant Chief of that department shall be a national of the Union of Soviet Socialist Republics, and if the Chief of a department is a national of the Union of Soviet Socialist Republics, the Assistant Chief of that department shall be a national of the Republic of
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China.
(10) The employment of persons in the various departments of the Railway shall be in accordance with the principle of equal representation between the nationals of the Republic of China and those of the Union of Soviet Socialist Republics.
(Note:—In carrying out the principle of equal representation, the normal course of life and activities of the Railway shall in no case be interrupted or injured, that is to say, the employment of the people of both nationalities shall be based in accordance with experience, personal qualifications and fitness of the appliants.)
(11) With the exception of the estimates and budgets as provided in Section XII. of Article I. of the present agreement, all other matters on which the Board of Directors cannot reach an agreement, shall be referred to the Governments of the Contracting Parties for a just and amicable settlement.
(12) The Board of Directors shall present the estimates and budgets of the Railway to a joint meeting of the Board of Directors and the Board of Auditors for consideration and approval.
(13) All the net profits of the Railway shall be held by the Board of Directors and shall not be used pending a final settlement, in a joint Commission, of the question of its distribution between the two Contracting Parties.
(14) The Board of Directors shall make a complete revision, as soon as possible, of the statutes of the Chinese Eastern Railway Company approved on December 4th, 1896, by the Tsarist Government in accordance with the present Agreement and not later than four months from the date of the constitution of the Board of Directors. Pending their revision, the aforesaid Statutes, insofar as they do not conflict with the present Agreement and do not prejudice the rights of sovereignty of the Republic of China, shall continue to be observed.
(15) As soon as the conditions of the redemption by China of the Chinese Eastern Railway are settled by both Contracting Parties, or soon as the Railway reverts to China upon the expiration of the time-limit as stipulated in Section II. of Article I. of the present Agreement, all parts of this Agreement concerning the same shall cease to have effect.
ARTICLE II
Navigation
The Governments of the two Contracting Parties agree to settle, on the basis of equality, reciprocity
and the respect of each other's sovereignty, the question relating to the navigation of all kinds of their vessels on those parts of the rivers, lakes, and other bodies of water, which are common to their respective borders, the details of this question to be regulated in a Commission of the two Contracting Parties within two months from the date of signing the present Agreement.
In view of the extensive freight and passenger interests of the Union of Soviet Socialist Republics on the River Sungari up to and including Harbin, and the extensive freight and passenger interests of China on the lower Amur River into the sea, both Contracting Parties agree, on the basis of equality and reciprocity, to take up the question of securing the said interests in the said Commission.
ARTICLE III
Boundaries
The Governments of the two Contracting Parties agree to redemarcate their boundaries through a Commission to be organized by both Parties, and, pending such redemarcation, to maintain the present boundaries.
ARTICLE IV
Tariff and Trade Agreement
The Governments of the two Contracting Parties agree to draw up a Customs Tariff and conclude a Commercial Treaty in a Commission to be organized by the said Parties on the basis of equality and reciprocity.
ARTICLE V
Propaganda
The Governments of the two Contracting Parties mutually pledge themselves not to permit within their respective territories the existence and/or activities of any organizations or groups whose aim is to struggle by acts of violence against Government of either Contracting Party.
The Governments of the two Contracting Parties further pledge themselves not to engage in propaganda directed against the political and social systems of either Contracting Party.
ARTICLE VI
Commissions
The Commissions as provided in the Articles of this Agreement shall commence their work within one month from the date of signing this
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Agreement, and shall complete their work as soon as possible and not later than six months. This does not apply to those Commissions whose time-limits have been specified in the respective Articles of this Agreement.
ARTICLE VII
The present Agreement shall come into effect from the date of signature.
In witness whereof, the respective Plenipotentiaries have signed the present Agreement in duplicate in the Chinese, Russian and English languages, and have affixed thereto their seals.
In case of dispute, the English text shall be accepted as the standard.
Done at the City of Mukden this Twentieth Day of the Nine Month of the Thirteenth Year of the Republic of China, which is the Twentieth Day of September, One Thousand Nine Hundred and Twenty-Four.
Signed:
Cheng Tsian (Seal)
Lui Yung-huan (Seal)
Chung Shih-ming (Seal)
Kouznetzov (Seal)