Art. 94. Any law that is in conflict with the Const.i.tution shall not be valid.

CHAPTER X. NATIONAL FINANCE

Art. 95. The introduction of new taxes and alterations in the rate of taxation shall be fixed by law.

Art. 96. (Eliminated.)

Art. 97. The approval of the National a.s.sembly must be obtained for National loans, or the conclusion of agreements which tend to increase the burden of the National Treasury.

Art. ... Financial bills involving direct obligation on the part of the citizens shall first be submitted to the House of Representatives.

Art. 98. The Executive Department of the Government shall prepare a budget setting forth expenditures and receipts of the Nation for the fiscal year which shall be submitted to the House of Representatives within 15 days after the opening of the session of the National a.s.sembly.

Should the Senate amend or reject the budget pa.s.sed by the House of Representatives, it shall request the concurrence of the House of Representatives in its amendment or rejection, and, if such concurrence is not obtained, the budget shall be considered as pa.s.sed.

Art. 99. In case of special provisions, the Executive Department may fix in advance in the budget the period over which the appropriations are to be spread and may provide for the successive appropriations continuing over this period.

Art. 100. In order to provide for a safe margin for under-estimates or for items left out of the budget, the Executive Department may include contingent items in the budget under the heading of Reserve Fund. The sum expended under the above provision shall be submitted to the House of Representatives at the next session for recognition.

Art. 101. Unless approved by the Executive Department, the National a.s.sembly shall have no right to abolish or curtail any of the following items:

(1) Items in connection with obligations of the Government according to law.

(2) Items necessitated by the observance of treaties.

(3) Items legally fixed.

(4) Successive appropriations continuing over a period.

Art. 102. The National a.s.sembly shall not increase the annual expenditures as set down in the budget.

Art. 103. In case the budget is not yet pa.s.sed, when the fiscal year begins, the Executive Department may, during this period, follow the budget for the preceding year by limiting its expenditures and receipts by one-twelfth of the total amount for each month.

Art. 104. Should there be a defensive war against foreign invasion, or should there be a suppression of internal rebellion, or to provide against extraordinary calamity, when it is impossible to issue writs for summoning the National a.s.sembly, the Executive Department may adopt financial measures for the emergency, but it should request the recognition thereof by the House of Representatives within seven days after the convening of the next session of the National a.s.sembly.

Art. 105. Orders on the Treasury for payments on account of the annual expenditures of the Government shall first be pa.s.sed by the Auditing Department.

Art. 106. Accounts of the annual expenditures and annual receipts for each year should first be referred to the Auditing Department for investigation and then the Executive Department shall report the same to the National a.s.sembly.

If the account be rejected by the House of Representatives, the Cabinet shall be held responsible.

Art. 107. The method of organization of the Auditing Department and the qualification of the Auditors shall be fixed by law.

During his tenure of office, the auditor shall not be dismissed or transferred to any other duty or his salary be reduced except in accordance with the law.

The manner of punishment of Auditors shall be fixed by law.

Art. 108. The Chief of the Auditing Department shall be elected by the Senate. The Chief of the Auditing Department may attend sittings of both Houses and report on the Audit with explanatory statements.

CHAPTER XI. AMENDMENTS, INTERPRETATION AND INVIOLABILITY OF THE CONSt.i.tUTION

Art. 109. The National a.s.sembly may bring up bills for the amendment of the National Const.i.tution.

Bills of this nature shall not take effect unless approved by two-thirds of the members of each House present.

No bill for the amendment of the Const.i.tution shall be introduced unless signed by one-fourth of the members of each House.

Art. 110. The amendment of the National Const.i.tution shall be discussed and decided by the National Const.i.tutional Conference.

Art. 111. No proposal for a change of the form of Government shall be allowed as a subject for amendment.

Art. 112. Should there be any doubt as to the meaning of the text of the Const.i.tution, it shall be interpreted by the National Const.i.tutional Conference.

Art. 113. The National Const.i.tutional Conference shall be composed of the members of the National a.s.sembly.

Unless there be a quorum of two-thirds of the total number of the members of the National a.s.sembly, no Const.i.tutional Conference shall be held, and unless three-fourths of the members present vote in favour, no amendment shall be pa.s.sed. But with regard to the interpretation of the Const.i.tution, only two-thirds of the members present is required to decide an issue.

Art. ... The National Const.i.tution shall be the Supreme Law of the Land and shall be inviolable under any circ.u.mstances unless duly amended in accordance with the procedure specified in this Const.i.tution.

[Symbol: tick mark] A Chapter on Provincial or local organization is to be inserted under Chapter ..., providing for certain powers and rights to be given to local governments with the residual power left in the hands of the central government. The exact text is not yet settled.

Note: The Mark (*) indicates that the article has already been formally adopted as a part of the finished Const.i.tution.

The Mark ([Symbol: tick mark]) indicates that the article has not yet pa.s.sed through the second reading.

Those without marks have pa.s.sed through the second reading on May 28th, 1917. Articles bearing no number are additions to the original draft as presented to the Conference by the Drafting Committee.

THE LOCAL SYSTEM

DRAFT SUBMITTED TO PARLIAMENT

The following Regulations on the Local System have been referred to the Parliamentary Committee for consideration:--

Article 1. The Local System shall embrace provinces and hsien districts.

Any change for the existing division of provinces and hsien districts shall be decided by the Senate. As to Mongolia, Tibet, Chinghai and other places where no provinces and hsien districts have been fixed, Parliament shall enforce these regulations there in future.

Art. 2. A province shall have the following duties and rights: (a) To fix local laws. (b) To manage provincial properties. (c) To attend to the affairs in connexion with police organization, sanitation, conservancy, roads, and public works. (d) To develop education and industry in accordance with the order and mandates of the Central Government. (e) To improve its navigation and telegraphic lines, or to undertake such enterprises with the co-operation of other provinces. (f) To organize precautionary troops for the protection of local interests, the method of whose organization, uniforms and arms shall be similar to those of the National Army. With the exception of the matter of declaring war against foreign countries, the President shall have no power to transfer these troops to other provinces: and unless the province is unable to suppress its own internal troubles, it shall not ask the Central Government for the service of the National Army. (g) The province shall defray its own expenses for the administration and the maintenance of precautionary troops; but the provinces which have hitherto received subsidies, shall continue to receive same from the National Treasury with the approval of Parliament. (h) Land, t.i.tle Deed, License, Mortgage, Tobacco and Wine, Butchery, Fishery and all other princ.i.p.al and additional taxes shall be considered as local revenues.

(i) The province may fix rates for local tax or levy additional tax on the National Taxes. (j) The province shall have a provincial treasury.

(k) It may raise provincial public loans. (l) It shall elect a certain number of Senators. (m) It shall fix regulations for the smaller local Self-Governing Bodies.

Art. 3. Besides the above rights and privileges, a province shall bear the following responsibilities:

(a) In case of financial difficulties of the Central Government, it shall share the burden according to the proportion of its revenue. (b) It shall enforce the laws and mandates promulgated by the Central Government. (c) It shall enforce the measures entrusted by the Central Government, but the latter shall bear the expenses. (d) In case the local laws and regulations are in conflict with those of the Central Government the latter may with the approval of Parliament cancel or modify the same. (e) In case of great necessity the provincial telegraph, railway, etc., may be utilized by the Central Government. (f) In case of negligence, or blunder made by the provincial authorities, which injures the interests of the nation, the Central Government, with the approval of Parliament, may reprimand and rectify same. (g) It shall not make laws on the grant of monopoly and of copyrights; neither issue bank notes, manufacture coins, make implements of weights and measures; neither grant the right to local banks to manage the Government Treasury; nor sign contracts with foreigners on the purchase or sale of lands and mines, or mortgage land tax to them or construct naval harbours or a.r.s.enals. (h) All local laws, budgets, and other important matters shall be reported to the President from time to time. (i) The Central Government may transfer to itself the ownership of enterprises or rights which Parliament has decided should become national. (j) In case of a quarrel arising between the Central Government and the province, or between provinces, it shall be decided by Parliament. (k) In case of refusal to obey the orders of the Central Government, the President with the approval of Parliament may change the Shenchang (Governor) or dissolve the Provincial a.s.sembly. (l) The President with the approval of Parliament may suppress by force any province which defies the Central Authorities.

Art 4. A Shenchang shall be appointed for each province to represent the Central Government in the supervision of the local administration. The appointment shall be made with the approval of the Senate, the term, of office for the Shenchang shall be four years, and his annual salary shall be $24,000, which shall be paid out of the National Treasury.