893.00/3049
The Minister in China (Reinsch) to the Acting Secretary of
State
Peking, March 7,
1919.
[Received April
7.]
No. 2572
Sir: In connection with my telegram of even
date28 I have the honor
to enclose the following papers:
Telegram from the southern delegation at the Shanghai Peace
Conference to the Dean of the Diplomatic Body, dated March 3rd;29
Memorandum from the Japanese Minister concerning disbandment of the
War Participation Army;
Communication made by the Japanese Minister through a Secretary to
the Acting Minister for Foreign Affairs;30
An Aide-Memoire presented March 7th;
The substance of the Armament Loan Agreement and the War
Participation Loan Agreement as given out in the Japanese Press;
and
Further inter-change of telegrams between Mr. Tong Shao-yi, the
British Minister, and the Premier as given out by the Intelligence
Bureau of the Constitutional Government of China and reprinted in
the North China Star of March 6th.31
It will be noted, it is claimed that the Japanese Arms syndicate was
given preferential rights to supply arms to China in the future.
Such preferential arrangement could, of course, not be upheld in the
face of general treaty provisions.
An article from The Peking Leader of March
6th, concerning the War Participation Loan, which is a moderate
expression of current Chinese opinion, is also herewith
enclosed.32
The attitude of the Shanghai Peace Conference to these matters will
be reported on in a separate despatch.
I have [etc.]
[Page 311]
[Enclosure 1]
The Japanese Minister in China
(Obata) to the British
Minister in China (Jordan)
Memorandum
The Japanese Government have given their serious consideration to
the proposal of the British Government for a joint action to be
taken at Peking by the Representatives of the Allied and
Associated Powers with a view to strengthening hands of
President Hsu Shih-chang against General Tuan in the matter of
the disbandment of the War Participation Army. They fully
realize that the question of the new army forms one of the
difficulties with which the Conference of the Northern and
Southern Delegates now in session at Shanghai is being
confronted. They are not informed whether the British Government
following the same line of the policy now proposed have in
contemplation similar action by the foreign Representatives in
Peking with regard to the other points of differences standing
equally in the way of an early reunion of China. In any case the
action suggested by the British Government does not seem to be
wholly reconcilable with the declaration of the Japanese,
British, French, Italian and the United States Governments
embodied in the Aide-Memoire of December
2nd, 1918,33 in which
the five Governments specifically disclaim any “desire to
control or influence the particular terms of adjustment which
must remain for the Chinese themselves to arrange”. Such action,
with all its good intentions, will no doubt be regarded as an
attempt to influence one of the terms now awaiting adjustment at
the Shanghai Conference, and the Japanese Government are
strongly of opinion that it would be unwise for the foreign
Powers to interfere in the settlement of any of those terms in
favour of one contending faction against the other. It would be
added that the Japanese Government have not the slightest
intention to raise any difficulty to China’s abandoning of plan
for organization of a new army. On the contrary, they are quite
ready to do all that lies in their power to facilitate work of
the Shanghai Conference consistent with the declaration of the
five Powers of December 2nd. They do not, however, consider
[themselves] justified in taking part in the action which seems
to them to imply departure from policy adopted in common accord
and declared in an official communication by the Allied and
Associated Governments. In thus communicating to His Excellency
the British Minister the views which the Japanese Government
feel it due to frankness
[Page 312]
to state, the Japanese Minister sincerely trusts that these
views will commend themselves to the favourable reply of the
British Government.
[Enclosure 2]
The Representatives of
France, Great Britain, Italy, and the United
States to the Chinese Acting
Minister for Foreign Affairs
Aide-Mémoire
The Representatives of France, Great Britain, Italy and the
United States desire to associate themselves with and give their
full support to the communication already made to the Chinese
Government by their Japanese Colleague in which the hope is
expressed that, in view of the general state of affairs, the
Chinese Government will, in order to promote early reunion of
the North and the South, refrain for the present from drawing on
the proceeds of the War Participation Loan now on deposit in the
Japanese Bank.
[Enclosure 3]
Article on “Sino-Japanese Agreements”
Published in the “Peking Times”, March 1, 1919
“Nichi Nichi” Discloses
“Secrets”
The Nichi Nichi publishes what purports to
be details of the Arms Loan and the National Defense Army Loan
Agreements, concluded between Japan and China, which have been
made the basis of so much diplomatic rancor during the last few
weeks. The Arms Loan contract consists of the following clauses:
“The Chinese Government shall purchase from the Taihei
Kumiai arms manufactured in Japan.
“Japan shall supply to China through the Taihei Kumiai
25,000 rifles, 5,000 machine-guns, mountain, field,
quickfiring guns and 160 12-inch mortars, with
ammunition required for these guns, as well as saddles,
wagons, leather and engineers’ supplies to the value of
Yen 30,000,000 (including Yen 184,000 transport
charges).
“The Chinese Government shall not use these arms for the
purposes of internal strife.
“The Taihei Kumiai shall have preferential rights in
supplying arms to China when necessity arises in the
future.
“Japanese officers’ should be engaged as instructors for
the training of Chinese troops.”
[Page 313]
arms partly delivered
The Nichi Nichi understands that the above
contract became an accomplished fact in January [September] 1918, and the first instalment
consisting of 120 field-guns, 60 mountain-guns, 20,000 rifles
and 60 machine-guns, was supplied last year and a second
instalment was delivered some time ago. The delivery of the
remainder, however, will be withheld.
national defense loan
Particulars of the National Defense Army Loan are as follows:
“A syndicate of Japanese bankers will loan to the Chinese
Government the amount of Yen 20,000,000.
“The Chinese Government shall use the proceeds of the
loan for the organization of three army divisions,
chiefly for the purpose of national defense.
“For the organization of the army, the Chinese Government
shall engage Japanese instructors and the necessary arms
shall be bought from Japan.
“The syndicate of Japanese bankers shall deliver to the
Chinese Government Yen 300,000 each month.”
american loan failed
The Nichi Nichi further says that the
foregoing contract was signed between China and the Japanese
syndicate in February [September], 1918,
in accordance with the stipulations of the Sino-Japanese
Military Agreement, concluded in the same year.34 At first China
wanted, at the advice of the French Government, to borrow funds
required for the dispatch of an expedition to Europe from
America, but as the negotiations with American capitalists
failed the matter was referred to the Japanese bankers. The
latter agreed to advance money on condition that the funds
should be used for the purpose of organizing a national defense
army.
During last year the syndicate paid Y3,700,000 to China, but as
there was a possibility of the money being used for the purposes
of internal strife the delivery of the remainder of the loan has
been withheld and the amount is on deposit with the Chartered
Exchange Bank of China.
will beat covenant
out
Although it seems to be the desire of the Chinese delegates in
Paris, continues the Nichi Nichi, that
the question of the repudiation of these agreements be decided
upon by the peace conference, even
[Page 314]
before the consummation of a league of
nations, this will not be possible. As the Japanese authorities
are convinced that the revision or abrogation of these
agreements will be necessitated by the consummation of a league
of nations, it seems to be their intention to carry out the
terms of the agreements in a suitable manner before such a
contingency arises.
