File No. 793.94/280.

[Untitled]

The Chinese yesterday postponed the crisis by yielding to demand that Japanese subjects be allowed to travel, reside, carry on trade and agriculture and lease land in Manchuria, remaining subject only to their national jurisdiction in criminal and civil matters except as to land cases. The Japanese thereupon insisted upon participation in police, which however was not conceded. The right of hospitals and schools to own land in the interior was discussed without result.

Although the Japanese Government is understood to have explained that the demands suppressed in its first communication to the Powers were merely requests I now learn that when that explanation was first reported in the newspapers the Secretary of Japanese Legation called especially at the Foreign Office to state in the Minister’s name that his Government recognized no such distinction and particularly would insist upon Group V of the demands equally with the others.

Reinsch.