File No. 793.94/326.
Minister Reinsch to the Secretary of State.
Peking, May 3, 1915—4 p.m.
After the fullest consideration by the President and Cabinet, the Minister for Foreign Affairs on May 1 handed to Japanese Minister the reply to the revised demands.
The Chinese note disputes the charges of procrastination and insincerity made by Japan.
In connection with Shantung Group, all is granted with the counter-proposal regarding Article 1 asking participation in international conference for arrangement of altered status of Shantung, indemnification for losses consequent upon Tsingtau campaign and restoration of status quo ante bellum.
All Manchurian demands are met, with sole reservation that land cases be tried in Chinese court with Japanese assessor.
Three out of four Mongolian demands are accorded; namely, treaty ports, preference in railway loans, and engagement not to pledge local revenues. Demand for agricultural and industrial enterprises is rejected.
The last version of Hanyehping demand is accepted; namely, that Chinese Government will undertake not to make the company a Government-owned concern or allow the indebtedness to Japan to be paid off through foreign loans.
The Chinese Government again declared its inability to consider Group V but is ready to make a separate exchange of notes regarding non-alienation or mortgaging of Fukien harbors and naval stations.
[Page 131]When Japanese Minister queried regarding railway concessions the Minister for Foreign Affairs stated that national good faith prevented the Chinese Government from discussing this demand with Japan.
Minister for Foreign Affairs answered in the affirmative the question of the Japanese Minister whether these concessions were to be considered a maximum and whether he could inform his Government to that effect.
The Minister for Foreign Affairs also informed Japanese Minister that his Government, having gone to the utmost extent in a desire to prove its friendship for Japan by substantial concessions, would be compelled to place the whole situation before the Treaty Powers should Japan apply further pressure.