Article 1.  The Local System shall embrace provinces and hsien districts.

Any change for the existing division of provinces and hsien districts shall be decided by the Senate.  As to Mongolia, Tibet, Chinghai and other places where no provinces and hsien districts have been fixed, Parliament shall enforce these regulations there in future.

Art. 2.  A province shall have the following duties and rights:  (a) To fix local laws. (b) To manage provincial properties. (c) To attend to the affairs in connexion with police organization, sanitation, conservancy, roads, and public works. (d) To develop education and industry in accordance with the order and mandates of the Central Government. (e) To improve its navigation and telegraphic lines, or to undertake such enterprises with the co-operation of other provinces. (f) To organize precautionary troops for the protection of local interests, the method of whose organization, uniforms and arms shall be similar to those of the National Army.  With the exception of the matter of declaring war against foreign countries, the President shall have no power to transfer these troops to other provinces:  and unless the province is unable to suppress its own internal troubles, it shall not ask the Central Government for the service of the National Army. (g) The province shall defray its own expenses for the administration and the maintenance of precautionary troops; but the provinces which have hitherto received subsidies, shall continue to receive same from the National Treasury with the approval of Parliament. (h) Land, Title Deed, License, Mortgage, Tobacco and Wine, Butchery, Fishery and all other principal and additional taxes shall be considered as local revenues. (i) The province may fix rates for local tax or levy additional tax on the National Taxes. (j) The province shall have a provincial treasury. (k) It may raise provincial public loans. (l) It shall elect a certain number of Senators. (m) It shall fix regulations for the smaller local Self-Governing Bodies.

Art. 3.  Besides the above rights and privileges, a province shall bear the following responsibilities: 

(a) In case of financial difficulties of the Central Government, it shall share the burden according to the proportion of its revenue. (b) It shall enforce the laws and mandates promulgated by the Central Government. (c) It shall enforce the measures entrusted by the Central Government, but the latter shall bear the expenses. (d) In case the local laws and regulations are in conflict with those of the Central Government the latter may with the approval of Parliament cancel or modify the same. (e) In case of great necessity the provincial telegraph, railway, etc., may be utilized by the Central Government. (f) In case of negligence, or blunder made by the provincial authorities, which injures the interests of the nation, the Central Government, with the approval of Parliament, may reprimand