Peking, Oct. 4.
A railway agreement was initialled on Saturday evening between the Chinese Government and the Russo-Asiatic Bank, whereby the Bank continues to function as the financial instrument of the Chinese Eastern Railway in accordance with the agreement of 1896 on a purely commercial basis and the status of that railway is clearly defined. The agreement is provisional pending the constitution of a recognized Russian Government. The Chinese will participate equitably in the working of the railway, China's political control of the Chinese Eastern Railway zone being recognized, while the Bank is described og a Russian limited company without any political character. Russians and Chinese will be employed equally in the chief posts in the traffic, construction and clerical departments of the Railway and the Board will consist of five Chinese and five Rus is With a Chinese President, who will have the casting vote, while seven votes will constitute a majority.
Tu accordance with Article 12 of the agreement of 1996, the Chinese original deposit in' the Russo-Chinese Bank (which was reduced by approximately a third when the Bank was reconstructed as the Russo-Asiatic Bank) will be repaid to China with interest from the date of the opening of the railway (in this connexion the Russians consider that the railway was actually opened in 1907 while the Chinese contend that the official ovening in 1903 should be taken. This represents the difference between $11.000,000 and $14,000.00 and the point is at present under discussion). A general meeting of shareholders will be held in Peking this month.
Although no provision has been made in that connexion in the agreement, the Bank expects continue to fly the French flag in China and else where extra-territoriality exists. as a sign_.of French protection. though the Russian character of the Bank is unquestioned.
The Government has decided that the Russian Courts at Harbin shall continue @ function over Russian citizens with appeal to the Chief Chinese Court at Harbin in the first instance and finally to the Supreme Court at Peking.—Reuter. Peking, Oct. 5.
Further inquiries show that China will not withdraw the original sum of Tls. 5.000.000, deposited in the Russo-Chinese Bank, for which she received Bank shares and which ie-wains in the Bank, but, in accordance with Article 12 of the Agreement of 1896, she will receive the Tls. 5,000,000 plus interest. due to her from the Railway Company when construction of the line was completed. This will be paid in railway bonds. The Government proposes to raise a foreign loan on these bonds for immediate famine relief, if the Powers agree to the. proposed Customs surtax.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.