File No. 793.94/225.

Ambassador Guthrie to the Secretary of State.

[Telegram.]

Today Baron Kato gave me a written memorandum which he told me had been given in the same manner to the Ambassadors of England, France and Russia and to no one else. He said that for many reasons both China and Japan were anxious that none of the terms of the proposition under discussion be disclosed as this would be embarrassing to both parties in the negotiations but that he desired you to know the true nature of the proposition and that [Page 85]they are not contrary to China’s integrity or to the rights and interests of other nations. In our personal conversation he stated that Japan had no desire for any naval station on the coast of China, either at Tsingtau or south of that point for the reason that it would be valueless to her, but that she would object to any other nation’s having one. The memorandum reads as follows:

First, in relation to the Province of Shantung:

1.
Engagement on the part of China to consent to all matters that may be agreed upon between Japan and Germany with regard to the disposition of all rights, interests and concessions which, in virtue of treaties or otherwise, Germany possesses in relation to the Province of Shantung.
2.
Engagement not to alienate or lease upon any pretext the Province of Shantung or any portion thereof, and any island lying near the coast of the said province.
3.
Grant to Japan of the right of construction of a railway connecting Chefoo or Lungkou and the Tsi-nan-Kiao-chou Railway.
4.
Addition of open marts in the Province of Shantung.

Second, in relation to South Manchuria and Eastern Inner Mongolia:

1.
Extension of the terms of lease of Kwan-tung, the South Manchuria Railway and the Antung-Mukden Railway.
2.
(a)Acquisition by the Japanese of the right of residence and the ownership of land.
(b) Grant to Japan of the mining rights of the mines specified by Japan.
3.
Obligation on the part of China to obtain in advance the consent of Japan before she grants railway concessions to any third power, procures the supply of capital from any third power for the construction of a railway, or raises from any third power a loan on security of any duties or taxes.
4.
Obligation on the part of China to consult Japan before employing advisers or tutors regarding political, financial or military matters.
5.
Transfer of management and control of the Kirin-Chang-chun Railway to Japan.

Third:

Agreement in principle that at an opportune moment in future Han-yeh-ping Company should be placed under the Japanese and Chinese cooperation.

Fourth:

Engagement, in accordance with the principle of maintenance of the territorial integrity of China, not to alienate or lease any ports or bays on, any island near the coast of China.

Guthrie.