2. The mines and railways of Manchuria, Shantung and
Lungchow (in Kwangsi province) are affected by inter-
national relations and therefore will not be allowed to form
precedents either for Chinese or foreigners.
3. Railways and mines must not be worked in combin-
ation. In future no more mining rights will be given along
the routes. Mining companies are allowed, however, to

1 For full text of the regulations see translation given in U. S.
Monthly Consular Reports, April, 1899.
38 RAILWAY PROBLEMS IN CHINA [266

construct branch railways to connect with the nearest water-
ways.
4. Only the Government board has the right to grant ap-
plications for mines and railways.
5. In the case of Chinese enterprises the companies must
have a proportion of at least three-tenths of the shares
owned by Chinese. When this proportion has been raised,
foreigners may be invited to buy shares ; but in borrowing
foreign money the sanction of the board must first be asked.
Foreign money-lenders must on the other hand request their
minister to communicate with the Tsung-li Yamen, asking
if the company is authorized to borrow. Money lent in
any other way will be treated as a private loan. Should
disputes arise between Chinese and foreign merchants, in
connection with railway and mining enterprises, they must
be settled by arbitration; the governments concerned will
not interfere.
6. All such enterprises will be granted a monopoly for a
fixed period, the duration of which will be determined by
the circumstances of the case.
