(British and Foreign State Papers, 1892-1893, Vol. LXXXV)

  1. A TRADE mart shall be established at Yatung on the Tibetan side of the frontier, and shall be open to all British subjects for purposes of trade from the 1st day of May, 1894. The Government of India shall be free to send officers to reside at Yatung to watch the conditions of British trade at that mart.
  2. British subjects trading at Yatung shall be at liberty to travel freely to anD fro between the frontier and Yatung, to reside at Yatung, and to rent houses and godowns for their own accommodation, and the storage of their goods. The Chinese Government undertake that suitable buildings for the above purposes shall be provided for British subjects, and also that a special and fitting residence shall be provided for the officer or officers appointed by the Government of India under Regulation I to reside at Yatung. British subjects shall be at liberty to sell their goods to whom so ever they please, to purchase native commodities in kind or in money, to hire transport of any kind, and in general to conduct their business transactions in conformity with local usage, and without any vexatious restrictions. Such British subjects shall receive efficient protection for their persons and property. At Lang-jo and Ta-chun, between the frontier and Yatung, where rest-houses have been built by the Tibetan authorities, British subjects can break their journey in consideration of a daily rent.
  3. Import and export trade in the following articles:- arms, ammunition, military stores, salt, liquors, and intoxicating or narcotic drugs, may, at the option of either Government, be entirely prohibited, or permitted only on such conditions as either Government, on their own side, may think fit to impose.
  4. Goods, other than goods of the descriptions enumerated in Regulation 3, entering Tibet from British India, across the Sikkim-Tibet frontier, or vice versa, whatever their origin, shall be exempt from duty for a period of five years, commencing from the date of the opening of Yatung to trade; but after the expiration of this term, if found desirable, a tariff may be mutually agreed upon and enforced. Indian tea may be imported into Tibet at a rate of duty not exceeding that at which Chinese tea is imported into England, but trade in Indian tea shall not be engaged in during the five years for which other commodities are exempt.
  5. All goods on arrival at Yatung, whether from British India or from Tibet, must be reported at the Custom Station there for examination, and the report must give full particulars of the description, quantity, and value of the goods.
  6. In the event of trade disputes arising between British and Chinese or Tibetan subjects in Tibet, they shall be inquired into and settled in personal conference by the Political Officer for Sikkim and the Chinese Frontier Officer. The object of personal conference being to ascertain facts and do justice, where there is a divergence of views, the law of the country to which the defendant belongs shall guide.
  7. Dispatches from the Government of India to the Chinese Imperial Resident in Tibet shall be handed over by the Political officer for Sikkim to the Chinese Frontier Officer, who will forward them by special courier. Dispatches from the Chinese Imperial Resident in Tibet to the Government of India will be handed over by the Chinese Frontier Officer to the Political Officer for Sikkim, who will forward them as quickly as possible.
  8. Dispatches between the Chinese and Indian officials must be treated with due respect, and couriers will be assisted in passing to and fro by the officers of each Government
  9. After the expiration of one year from the date of the opening of Yatung, such Tibetans as continue to graze their cattle in Sikkim will be subject to such Regulations as the British Government may from time to time enact for the general conduct of grazing in Sikkim. Due notice will be given of such Regulations.

General Articles

  1. In the event of disagreement between the Political Officer for Sikkim and the Chinese Frontier Officer, each official shall report the matter to his immediate superior, who in turn, if a settlement is not arrived at between them, shall refer such matter to their respective Governments for disposal.
  2. After the lapse of five years from the date on which these Regulations shall come into force, and on six months’ notice given by either party, these Regulations shall be subject to revision by Commissioners appointed on both sides for purpose, who shall be empowered to decide on and adopt such amendments and extensions as experience shall prove to be desirable.
  3. It having been stipulated that Joint Commissioners should be appointed by the British and Chinese Governments under Article VII of the settlement of the questions reserved under Articles IV, V, and VI of the said Convention; and the Commissioners thus appointed having met and discussed the questions referred to, namely, trade, communication, and pasturage, have been further appointed to sign the Agreement in nine Regulations and three General Articles now arrived at, and to declare that the said nine Regulations and the three General Articles form part of the Convention itself.

In witness whereof the respective Commissioners have hereto subscribed their names. Done in quadruplicate at Darjeeling, this 5th day of December, in the year 1893, corresponding with the Chinese date, the 28th day of the 10th moon of the 19th year of Kuang Hsu.

British Commissioner.
Chinese Commissioners.

(A Tibetan Minister was present at the negotiations in Darjeeling but took no active part and did not sign the Regulations).