Chapter 2

The Emperor of the Great Qing Empire and the Emperor of the Great Japanese Empire, in order to establish a peace treaty, so that both countries and their subjects may resume peace and share happiness, and to prevent future disputes, have appointed as plenipotentiaries:

- The Emperor of the Great Qing Empire: Li Hongzhang, Grand Secretary of the Wenhua Hall, Grand Tutor to the Heir Apparent, Viceroy of Zhili, and Envoy Extraordinary and Minister Plenipotentiary for the Northern Maritime Trade, and Li Jingfang, Envoy Extraordinary and Minister Plenipotentiary, with the rank of a second-class official;

- The Emperor of the Great Japanese Empire: Itō Hirobumi, Prime Minister of the Cabinet, a second-rank, first-class marquis, and Mutsu Munemitsu, Minister of Foreign Affairs, a second-rank, first-class viscount.

After carefully examining the credentials of the plenipotentiaries, they have found them to be in good and proper form. They have agreed upon the following articles:

Article 1

China recognizes that Korea is a completely independent and autonomous state. Therefore, all acts that impair its independence and autonomy, such as the tributary ceremonies that Korea has performed for China, shall be completely abolished.

Article 2

China cedes to Japan the administration of the following territories, along with all fortifications, military equipment, factories, and all public property therein, in perpetuity.

1. The southern part of the province of Fengtian, within the boundaries described as follows: from the mouth of the Yalu River, following the river to the mouth of the Anping River, and from there to Fenghuangcheng, Haicheng, and Yingkou, forming a straight line to the south. All the cities and towns mentioned are included within the boundary line.

2. After the line reaches the Liao River at Yingkou, it follows the river to the sea, with the center of the river serving as the boundary. The islands on the east coast of the Liaodong Bay and the north coast of the Yellow Sea, which belong to the province of Fengtian, are also included in the ceded territory.

3. The entire island of Taiwan and all its affiliated islands.

4. The Pescadores (Penghu Islands), which lie between 119° and 120° East longitude and 23° and 24° North latitude.

Article 3

The boundaries described in the preceding article and marked on the map attached to this treaty shall, after the exchange of ratifications, be jointly surveyed and determined on the ground by at least two officials from each country. If any difficulties arise due to topography or geography, the officials shall make appropriate adjustments. The officials shall complete the boundary demarcation within one year of their appointment. However, until the adjustments are approved by the governments of both countries, the boundaries as defined in this treaty shall remain valid.

Article 4

China agrees to pay Japan 200 million taels of silver as war reparations. The payment shall be made in eight installments: the first installment of 50 million taels shall be paid within six months of the exchange of ratifications; the second installment of 50 million taels shall be paid within twelve months of the exchange of ratifications; the remaining amount shall be divided into six equal installments, to be paid annually, as follows: the first annual installment shall 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, with the years counted from the date of the exchange of ratifications. After the first installment is paid, interest at a rate of 5% per annum shall be charged on the remaining amount. China may, at its discretion, pay the entire remaining amount or any part thereof in advance. If the entire amount is paid within three years from the date of the exchange of ratifications, the interest paid shall be deducted from the principal, and the remaining amount shall be exempt from interest.

Article 5

Within two years from the date of the exchange of ratifications, Japanese subjects residing in the ceded territories who wish to move to areas outside the ceded territories may sell their property and leave. Those who remain after the deadline will be considered Japanese subjects. The province of Taiwan shall be handed over to Japan immediately after the exchange of ratifications, and the handover shall be completed within two months of the exchange of ratifications.

Article 6

All treaties between China and Japan, which have been rendered void by the current conflict, shall be renegotiated. China agrees to promptly appoint plenipotentiaries to negotiate a new commercial and navigation treaty and a land trade agreement with Japanese plenipotentiaries. The new treaties shall be based on the existing treaties between China and Western countries. Until the new treaties are implemented, Japanese officials, subjects, and commercial and industrial activities, as well as shipping and land trade, shall be treated with the same privileges and protection as those accorded to the most favored nations. The cessions mentioned in this article shall take effect six months after the signing of the treaty by the plenipotentiaries.

1. In addition to the existing open ports in China, the following places shall be opened as new commercial ports to allow Japanese subjects to reside and engage in commercial and industrial activities. These new ports shall be governed by the same regulations as existing open ports, and Japanese subjects shall enjoy the same privileges and benefits:

- Shashi, Hubei Province

- Chongqing, Sichuan Province

- Suzhou, Jiangsu Province

- Hangzhou, Zhejiang Province

Japan may appoint consuls to reside in these ports.

2. Japanese steamships may navigate the following routes to transport passengers and cargo:

- From Yichang, Hubei Province, up the Yangtze River to Chongqing, Sichuan Province

- From Shanghai, up the Wusong River and the Grand Canal to Suzhou and Hangzhou

Until new navigation regulations are established between China and Japan, these routes shall be governed by the existing regulations for foreign ships navigating inland waterways in China.

3. Japanese subjects may purchase and store goods in the interior of China, and may temporarily store imported goods in warehouses without paying taxes or other fees.

4. Japanese subjects may engage in various industrial activities in Chinese commercial ports and cities, and may import machinery by paying the prescribed import duties. Goods manufactured by Japanese subjects in China shall be subject to the same inland transportation taxes, inland taxes, and other fees as goods imported by Japanese subjects into China, and shall enjoy the same privileges and exemptions. Any additional regulations required due to these concessions shall be included in the new commercial and navigation treaty.

Article 7

Japanese troops currently stationed in China shall be withdrawn within three months of the exchange of ratifications, subject to the provisions of the next article.

Article 8

To ensure the faithful implementation of the terms of this treaty, China agrees to allow Japanese troops to temporarily occupy Weihaiwei in Shandong Province. After China has paid the first and second installments of reparations and the new commercial and navigation treaty has been ratified and exchanged, the Chinese government and the Japanese government shall agree on a comprehensive and effective method to use customs duties from the open ports as collateral for the remaining reparations and interest. Japan may withdraw its troops if the collateral method is established. If the collateral method is not established, Japan shall not withdraw its troops until the final installment of reparations is paid. However, even if the reparations are paid, Japan shall not withdraw its troops until the new commercial and navigation treaty is ratified and exchanged.

Article 9

After the exchange of ratifications, both countries shall return all prisoners of war. China agrees not to mistreat or punish the prisoners of war returned by Japan. China also agrees to release Japanese subjects who have been detained as military spies or suspects. China further agrees to pardon all Chinese subjects involved in the conflict with the Japanese army and to instruct the authorities not to detain them arbitrarily.

Article 10

From the date of the exchange of ratifications, both countries shall cease hostilities.

Article 11

This treaty, after being ratified by the Emperor of the Great Qing Empire and the Emperor of the Great Japanese Empire, shall be exchanged on April 14, 1895 (May 8, 1895 in the Japanese calendar) in Yantai.

In witness whereof, the plenipotentiaries of both countries have signed and affixed their seals to this treaty.

- Li Hongzhang, Grand Secretary of the Wenhua Hall, Grand Tutor to the Heir Apparent, Viceroy of Zhili, and Envoy Extraordinary and Minister Plenipotentiary for the Northern Maritime Trade, and First-Class Marquis (Seal)

- Li Jingfang, Envoy Extraordinary and Minister Plenipotentiary, with the rank of a second-class official (Seal)

- Itō Hirobumi, Prime Minister of the Cabinet, a second-rank, first-class marquis (Seal)

- Mutsu Munemitsu, Minister of Foreign Affairs, a second-rank, first-class viscount (Seal)

Signed at Shimonoseki on March 23, 1895 (April 17, 1895 in the Japanese calendar) (Two copies).

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