The delimitation commission will enter upon its duties as soon as possible, and will bring its labours to a conclusion within the period of one year after appointment.

The alignments laid down in this act shall, however, be maintained until the rectifications of the delimitation commission, if any are made, shall have received the approval of the governments of Japan and China.

Art. 4. China agrees to pay to Japan as a war indemnity the sum of 200,000,000 Kuping Taels. The said sum to be paid in eight instalments. The first instalment of 50,000,000 taels to be paid within six months, and the second instalment of 50,000,000 taels to be paid within twelve months, after the exchange of the ratifications of this act. The remaining sum to be paid in six equal annual instalments, as follows: The first of such equal annual instalments to be paid within two years; the second within three years; the third within four years; the fourth within five years; the fifth within six years, and the sixth within seven years, after the exchange of the ratification of this act. Interest at the rate of 5 per centum per annum shall begin to run on all unpaid portions of the said indemnity from the date the first instalment falls due.

China shall, however, have the right to pay by anticipation at any time any or all of the said instalments. In case the whole amount of the indemnity is paid within three years after the exchange of the ratification of the present act, all interest shall be waived and the interest for two years and a half or for any less period if then already paid shall be included as a part of the principal amount of the indemnity.

Art. 5. The inhabitants of the territories ceded to Japan, who wish to take up their residence outside the ceded districts, shall be at liberty to sell their real property and retire. For this purpose a period of two years from the date of the exchange of the ratifications of the present act shall be granted. At the expiration of that period those of the inhabitants who shall not have left such territories shall, at the option of Japan, be deemed to be Japanese subjects.

Each of the two governments shall, immediately upon the exchange of the ratifications of the present act, send one or more commissioners to Formosa to effect a final transfer of that province; and within the space of two months after the exchange of the ratifications of this act such transfer shall be completed.

Art. 6. All treaties between Japan and China having come to an end in consequence of the war, China engages, immediately upon the exchange of the ratifications of this act, to appoint plenipotentiaries to conclude, with the Japanese plenipotentiaries, a treaty of commerce and navigation and a convention to regulate frontier intercourse and trade. The treaties, conventions and regulations now subsisting between China and European powers shall serve as a basis for the said treaty and convention between Japan and China. From the date of the exchange of the ratifications of this act until the said treaty and convention are brought into actual operation, the Japanese government; its officials; commerce; navigation; frontier intercourse and trade; industries; ships and subjects, shall, in every respect, be accorded by China the most favoured nation treatment.

China makes in addition the following concession, to take effect six months after the date of the present act:

1st.—The following cities, towns and ports, in addition to those already opened, shall be opened to the trade, residence, industries and manufactures of Japanese subjects, under the same conditions and with the same privileges and facilities as exist at the present in cities, towns, and ports of China: