File No. 793.94/224.

Minister Reinsch to the Secretary of State.

[Telegram—Extract.]

My telegram of February 8, 9 p.m. Japanese Minister yesterday informed the Foreign Office that the expression of the Minister for Foreign Affairs on the demands is considered unsatisfactory by the Japanese Government and that it must be modified as otherwise negotiations cannot be continued. The Chinese Government is today to make counter-proposals on the demands relating to Manchuria, Mongolia and Shantung. The attempt will be made by the Chinese to give to the concessions exacted a form that will preserve the principle of equal opportunity.

Reinsch.