The Chinese Government declares that hereafter if foreign advisers or instructors on political, financial, military or police matters, are to be employed in South Manchuria, Japanese will be employed first.

Article 7.  The Chinese Government agrees speedily to make a fundamental revision of the Kirin-Changchun Railway Loan Agreement, taking as a standard the provisions in railroad loan agreements made heretofore between China and foreign financiers.  If, in future, more advantageous terms than those in existing railway loan agreements are granted to foreign financiers, in connection with railway loans, the above agreement shall again be revised in accordance with Japan’s wishes.

    All existing treaties between China and Japan relating to Manchuria
    shall, except where otherwise provided for by this Convention,
    remain in force.

    1.  The Chinese Government agrees that hereafter when a foreign loan
    is to be made on the security of the taxes of Eastern Inner
    Mongolia, China must negotiate with the Japanese Government first.

2.  The Chinese Government agrees that China will herself provide funds for building the railways in Eastern Inner Mongolia; if foreign capital is required, she must negotiate with the Japanese Government first.

3.  The Chinese Government agrees, in the interest of trade and for the residence of foreigners, to open by China herself, as soon as possible, certain suitable places in Eastern Inner Mongolia as Commercial Ports.  The places which ought to be opened are to be chosen, and the regulations are to be drafted, by the Chinese Government, but the Japanese Minister must be consulted before making a decision.

    4.  In the event of Japanese and Chinese desiring jointly to
    undertake agricultural enterprises and industries incidental
    thereto, the Chinese Government shall give its permission.

    GROUP III

The relations between Japan and the Hanyehping Company being very intimate, if those interested in the said Company come to an agreement with the Japanese capitalists for co-operation, the Chinese Government shall forthwith give its consent thereto.  The Chinese Government further agrees that, without the consent of the Japanese capitalists, China will not convert the Company into a state enterprise, nor confiscate it, nor cause it to borrow and use foreign capital other than Japanese.

    GROUP IV

    China to give a pronouncement by herself in accordance with the
    following principle:—­

    No bay, harbour, or island along the coast of China may be ceded or
    leased to any Power.

    Notes to be Exchanged

    A

As regards the right of financing a railway from Wuchang to connect with the Kiu-kiang-Nanchang line, the Nanchang-Hangchow railway, and the Nanchang-Chaochow railway, if it is clearly ascertained that other Powers have no objection, China shall grant the said right to Japan.

    B