File No. 793.94/295.

[Untitled]

At the meeting on the 13th instant the Chinese pressed for an answer to their proposals concerning Manchuria and were informed that the Japanese Government insisted upon the right to participate in making the agricultural tax and police regulations affecting Japanese residents.

In regard to Japan’s demands for railway grants in the fifth group the Minister for Foreign Affairs stated that those demands conflicted with grants already made to British interests; whereupon Japanese Minister replied that China had displayed a spirit of unfriendliness in thus granting to Great Britain lines which Japan had asked for, and said that it is desirable that the Chinese Government should give concessions asked by Japan and leave it to the latter to adjust with Great Britain any conflict between their claims.

At the meeting yesterday Japanese Minister demanded that the rights which the Chinese Government has offered to grant in respect to Manchuria should be extended to Eastern Mongolia. The Minister for Foreign Affairs declined to assimilate the two cases saying that at most his Government might consent to open certain additional treaty ports in Mongolia. After refusing to yield to further insistence the Minister for Foreign Affairs stated that he might find it possible to consider this demand on condition that the Japanese should wholly abandon the demands under Group V although he refused to commit himself in advance as to the concessions which his Government will in that case be prepared to make in Mongolia. Japanese Minister said he would refer the matter to his Government for instructions.

Reinsch.