File No. 793.94/211.


The Legation is informed that the Japanese demands include not only predominant special interests in impairment of China’s sovereignty and of open door in Shantung, Kiangsu, Chekiang, Anhui and Kiangsi in addition to Manchuria, but also such further reservations in behalf of Japanese interests as would in effect make subject to their veto all future concessions to other nationalities throughout China. * * * This would effectively work the exclusion of American participation in economic and industrial development of China.

In insisting upon these demands the Japanese Minister stated to the Minister for Foreign Affairs that a considerable body of the Japanese public regards with disfavor the present administration of China but might be conciliated by compliance with their wishes and he added that in that case the Japanese Government could give President Yuan assurances of immunity from the activities of the Chinese rebels residing in Japan.

The reports that Japan’s action is impelled [by ?] China’s seeking an alliance with Germany are, in my opinion, utterly unfounded and fantastic.