File No. 793.94/245.

Minister Reinsch to the Secretary of State.

[Telegram.]

Referring to my cable of February 26, 7 p.m. At the meeting March 6, Japanese Minister stated that his Government was dissatisfied with the slow progress of the negotiations and that unless by March 12 important concessions should have been granted, means outside of diplomacy might be resorted to. He continues to urge the consideration of the demands in Group V. The Chinese are ready to grant extension of South Manchuria Railway lease to ninety-nine years and of the repurchase terms, as well as of the Antung-Mukden line to seventy-two years; also to make some concessions regarding rights of residence and landholding in this region. The Chinese in making these important concessions desire definitive withdrawal of the obnoxious demands in Group V, but they fear armed pressure. Japanese Minister yesterday stated to the Vice Minister for Foreign Affairs that the railway guards on the South Manchuria Railway are shortly to be relieved by forces and he suggested the [Page 104] possibility that the old troops might thus find themselves free to take unexpected action.

Reinsch.