Laws of the People's Republic of China

    Article 1  These Provisions are enacted in accordance with Railway Law of
the People's Republic of China and with a view to defining the liability for
damages paid by the railway transportation enterprise to the passenger, and to
guaranteeing the legitimate rights and interests of the passenger.

    Article 2  These Provisions shall apply to the compensation for the
casualty accident of passenger and the damage of personal luggage during the
period of railway passenger transportation within the territory of the
People's Republic of China.

    The period of railway passenger transportation as referred to in aforesaid
paragraph is calculated from the moment when the passenger checks in and
enters into the railway station to the moment when the passenger arrives at
the destination and comes out of the railway station.

    Article 3  Passenger as referred to in these Provisions is a person who
takes the train with valid ticket, or a child who takes the train free of
charge in accordance with relevant provisions of railway authority of the
State Council.

    With the consent of the railway transportation enterprise, a person
supervising the goods aboard the train covered by a contract of railway
transportation of goods is regarded as a passenger.

    Article 4  Should the casualty accident of passenger and the damage of
personal luggage be due to force majeure or the passenger's self-causation,
the railway transportation enterprise shall not be liable therefor.

    Article 5  Should the railway transportation enterprise be liable for
compensation under these Provisions, the limitation of damages for casualty
accident of the passenger: not exceeding 40000 RMB per passenger; the
limitation of damages for damage to personal luggage: not exceeding 800 RMB
per passenger.

    A higher limitation of damages than that of aforesaid paragraph may be
agreed upon a written contract between the railway transportation enterprise
and the passenger.

    Article 6  The compensation paid by the railway transportation enterprise
in accordance with these Provisions shall not affect the passenger to get the
payment of the insurance indemnity according to relevant provisions of the
state concerning forced insurance in accidental damage for railway passenger.

    Article 7  The compensation paid to foreigners, overseas Chinese,
compatriots from Hong kong, Macao and Taiwan may be converted into the
currency of the country or region concerned and the rate of exchange shall be
set by the exchange rate announced by the authorized bank of the People's
Republic of China at the date on which the compensation is paid.

    Article 8  The claim for compensation against the railway transportation
enterprise shall be made by the passenger or his heir within one year counting
from the day on which the accident occured.

    The railway transportation enterprise shall reply to the claim for
compensation within 30 days counting from the claim is recieved.

    Article 9  In the event that a dispute with respect to the compensation
for damage arises between the passenger or his heir and the railway
transportation enterprise, they may bring a suit before the people's court.

    Article 10  These Provisions shall come into force as of september 1, 1994.