Mr. Griscom to Mr. Hay.

No. 31.]

Sir: I have the honor to confirm my telegram of the 18th instant.

In an interview on the 17th instant the minister for foreign affairs informed me that he had received the long-expected reply of Russia to the proposals made by Japan in July last for an agreement in regard to the situation in Manchuria and Korea. He said that the reply is entirely unsatisfactory to Japan in view of the fact that it treats solely of Korea and ignores the suggestions made in regard to Manchuria. As the minister stated, it is practically a flat refusal to treat with Japan on the Manchurian question. He gave me no idea of the position Russia has taken with regard to Korea. I may mention, however, that the British minister tells me he has seen the reply and that Russia offers to concede that Japan has some special rights in Korea and proposes a neutral zone of territory between the thirty-ninth parallel and the Yalu River; the Japanese to refrain from endeavoring to extend their sphere of influence north of that parallel, and Russian troops to remain west and north of the Yalu.

However that may be, the foreign minister informed me that the treatment of the question in the reply is not satisfactory to his Government, as the original basis of negotiations proposed by Japan is entirely lost sight of. The two points upon which Japan wishes to insist are that the integrity of the Chinese Empire be maintained and that Russia recognize the rights which Japan has acquired from China by treaty or convention. These points, declared the minister, are of vital import and no negotiations which ignored them could be satisfactory to Japan. In conclusion he stated that his Government would [Page 622] refer the reply back to the Russian Government and ask for a reconsideration upon the basis originally proposed by Japan. * * *

The Japanese press is almost unanimously clamoring for war, but there is every evidence that the Government has the situation well in hand. The foreign minister said to me that it would probably be a month before Russia would be heard from again, and he spoke in general as if the prospect offered a vista of negotiations rather than of war.

I have, etc.,

Lloyd C. Griscom.