Art. 11.  Conformably to Article IV of the Note exchanged between China and Russia on the fifth day of the eleventh month of the second year of the Republic of China (23rd October, 1915), the territory of autonomous Outer Mongolia comprises the regions which were under the jurisdiction of the Chinese Amban at Ourga, or the Tartar-General at Ouliassoutai and of the Chinese Amban at Kobdo; and connects with the boundary of China by the limits of the banners of the four aimaks of Khalkha and of the district of Kobdo, bounded by the district of Houloun-Bourie on the east, by Inner Mongolia on the south, by the Province of Sinkiang on the southwest, and by the districts of Altai on the West.

The formal delimitation between China and autonomous Mongolia is to be carried out by a special commission of delegates of China, Russia and autonomous Outer Mongolia, which shall set itself to the work of delimitation within a period of two years from the date of signature of the present Agreement.

Art. 12.  It is understood that customs duties are not to be established for goods of whatever origin they may be, imported by Chinese merchants into autonomous Outer Mongolia.  Nevertheless, Chinese merchants shall pay all the taxes on internal trade which have been established in autonomous Outer Mongolia and which may be established therein in the future, payable by the Mongols of autonomous Outer Mongolia.  Similarly the merchants of autonomous Outer Mongolia, when importing any kind of goods of local production into “Inner China,” shall pay all the taxes on trade which have been established in “Inner China” and which may be established therein in the future, payable by Chinese merchants.  Goods of foreign origin imported from autonomous Outer Mongolia into “Inner China” shall be subject to the customs duties stipulated in the regulations for land trade of the seventh year of the reign of Kouang-Hsu (1881).

Art. 13.  Civil and criminal actions arising between Chinese subjects residing in autonomous Outer Mongolia are to be examined and adjudicated by the Chinese Dignitary at Urga and by his assistants in the other localities of autonomous Outer Mongolia.

Art. 14.  Civil and criminal actions arising between Mongols of autonomous Outer Mongolia and Chinese subjects residing therein are to be examined and adjudicated by the Chinese Dignitary at Urga and his assistants in the other localities of autonomous Outer Mongolia, or their delegates, and the Mongolian authorities.  If the defendant or accused of autonomous Outer Mongolia, the joint examination and decision of the case are to be held at the Chinese Dignitary’s place at Niga and that of his assistants in the other localities of autonomous Outer Mongolia; if the defendant or the accused is a Mongol of autonomous Outer Mongolia and the claimant or the complainment is a Chinese subject, the case is to be examined and decided in the same manner in the Mongolian yamen.  The guilty are to be punished according to their own laws.  The interested parties are free to arrange their disputes amicably by means of arbitrators chosen by themselves.