Supplementary Agreement to the Treaty between Japan and Manchoukuo concerning the Residence of Japanese Subjects, Taxation, Etc., Manchoukuo:
In signing today the treaty between Japan and Manchoukuo concerning the residence of Japanese subjects, taxation, etc., in Manchoukuo, the respective plenipotentiaries of the two countries have agreed as follows:
ARTICLE I
The Government of Manchoukuo shall speedily take necessary steps in order that the rights of lease by negotiation hitherto possessed by Japanese subjects shall, in accordance with the different natures of such rights, be converted into landownership or other rights relating to land, as the case may be.
ARTICLE II
The scope of the administrative laws and ordinances of Manchoukuo concerning taxation, industries, etc., which govern Japanese subjects under Article 2 of the treaty and the manner of application thereof, shall previously be decided upon by consultation between the Japanese Ambassador Extraordinary and Plenipotentiary to Manchoukuo and the Minister for Foreign Affairs of Manchoukuo.
In case the Government of Manchoukuo intend to make any important alterations in respect of the laws and ordinances of Manchoukuo which govern Japanese
subjects under the stipulations of the preceding paragraph, they shall, until such time as Japanese subjects come within the jurisdiction of the law courts of Manchoukuo, obtain the previous approval of the Japanese Ambassador Extraordinary and Plenipotentiary to Manchoukuo.
The laws and ordinances of Manchoukuo, whereon a decision by consultation shall be made immediately after the coming into force of the treaty in accordance with the stipulations of the first paragraph of this Article, shall in the main be confined to laws and ordinances relating to the land tax, immovable-property contract tax, business tax, juridical person's business tax, crop-output tax, timber tax, mining registration tax, alcoholic drinks tax, cigarette tax, consolidated taxes, commercial registration tax, patent registration tax, utility-model registration tax and local taxes; and to administrative laws and ordinances relating to industrial property, weights and measures, measurement, mining, markets, stock-farming, finance and monopoly.
In levying upon Japanese subjects the business tax and juridical person's business tax of the various taxes enumerated in the preceding paragraph and the house tax and household income tax in the category of local taxes, the Government of Manchoukuo shall, for the time being after the coming into force of the treaty, apply reduced rates in accordance with a decision to be previously made by consultation between the Japanese Ambassador Extraordinary and Plenipotentiary to Manchoukuo and the Minister for Foreign Affairs of Manchoukuo; and, of local taxes, the additional business tax shall be based on the amount of tax assessed at such reduced rates. It is provided that the reduced rates to be applied immediately after the coming into force of the treaty shall be one-fourth the original rates in respect of the business tax, household income tax and the house tax levied on individuals, and one-third of the orginal rates in respect of the juridical person's business tax and the house tax levied on juridical persons.
ARTICLE III
The application and execution, in respect of Japanese subjects, of the laws and ordinances of Manchoukuo, which govern Japanese subjects under Article 2 of the treaty, shall, in so far as such application and execution require judicial procedure, be effected by Japanese consular officers until such time as Japanese subjects come within the jurisdiction of the law courts of Manchoukuo.
In case referred to in the preceding paragraph, Japanese consular officers shall, subject to the general rules and principles of consular jurisdiction, apply the relevant laws and ordinances of Manchoukuo. It is provided that, of the punishments provided for in such laws and ordinances, 'yu-chi-tu-hsing' shall be regarded and applied as 'choeki' (imprisonment with hard labour) or 'kinko' (imprisonment without hard labour); 'chu-i' as 'cho-eki' (imprisonment with hard labour) 'kinko' (imprisonment without hard labour) or 'koryu' (detention), 'fa-chin' as 'bakkin' (fine) or 'karyo' (administrative penalty), and 'kuo-tai-chi,' as 'ka-ryo' (negligence penalty).
In case a fine, administrative penalty or negligence penalty is imposed or an article is confiscated, in accordance with the stipulations of this Article, the proceeds of such fine, administrative penalty and negligence penalty and the confiscated article shall come into the possession of the Treasury of the Government of Manchoukuo.
ARTICLE IV
In accordance with an agreement with the Government of Manchoukuo to be made separately from the present treaty, the Government of Japan shall abolish or transfer, not later than December 31, the 12th Year of Showa, corresponding to December 31, the 4th Year of Kangtê, the administrative police existing within the territories of Manchoukuo; and, of the laws and ordinances of Manchoukuo mentioned in Article 2 of the treaty, those which concern taxation and those which have a special bearing upon administrative police within the South Manchuria Railway Zone shall not, until the aforesaid abolish or transfer of administrative police within the territories of Manchoukuo is effected, be put in force within the said zone. The scope of those laws and ordinances of Manchoukuo which, as above referred to, have a special bearing upon administrative police within the South Manchuria Railway Zone shall previously be decided upon by consultation between the Japanese Ambassador Extraordinary and Plenipotentiary to Manchoukuo and the Minister for Foreign Affairs of Manchoukuo.
The Government of Manchoukuo shall, in view of the stipulations of the preceding
paragraph, perfect their police system and make the preparations necessary for taking over the Japanese institutions and staffs concerned.
Untile the transfer of administrative police within the South Manchuria Railway Zone is effected and, in order to ensure the equality of the incidence of taxation upon Japanese subjects residing within and without the said zone the Japanese Government shall levy within this zone, from the date of the coming into force of the treaty, taxes which are as far as possible the same as the national taxes imposed by Manchoukuo upon Japanese subjects.
The Government of Manchoukuo shall not levy local taxes within the South Manchuria Railway Zone until after the institutions of the South Manchuria Railway Company concerning public works, education, sanitation, etc., existing within the said zone shall have been disposed of in accordance with an agreement to be reached between the Government of Japan and Manchoukuo apart from the present treaty.
ARTICLE V
Simultaneously with the coming into force within the South Manchuria Railway Zone of the laws and ordinances of Manchoukuo under Article 2 of the treaty, the Government of Manchoukuo shall take over, in the condition then existing, the Japanese institutions and staffs concerned, in accordance with a decision to be previously made by consultation between the Japanese Ambassador Extraordinary and Plenipotentiary to Manchoukuo and the Minister for Foreign Affairs of Manchoukuo.
ARTICLE VI
If any Japanese subject makes a complaint against the administrative measures taken by the competent authorities of Manchoukuo with reference to the laws and ordinances of Manchoukuo which govern Japanese subjects under Article 2 of the treaty, the Government of Manchoukuo shall take appropriate steps to redress the grievance.
ARTICLE VII
Matters which have been decided upon by consultation between the Japanese Ambassador Extraordinary and Plenipotentiary to Manchoukuo and the Minister for Foreign Affairs of Manchoukuo, and also matters in respect of which the approval of the said Japanese Ambassador has been obtained by the Government of Manchoukuo, in accordance with the stipulations of the present agreement, shall each be made known in the Official Gazettes of Japan and Manchoukuo.
ARTICLE VIII
The present agreement shall come into force simultaneously with the treaty.
In witness whereof, the Plenipotentiaries of Japan and of Manchoukuo have signed this agreement and affixed their seals thereto.
Attached is also the following: