The Twenty-one Demands

Although the press of the world gave a certain prominence at the time to the astounding demarche with which we now have to deal, there was such persistent mystery about the matter and so many official dementis accompanied every publication of the facts that even to this day the nature of the assault which Japan delivered on China is not adequately realized, nor is the narrow escape assigned its proper place in estimates of the future. Briefly, had there not been publication of the facts and had not British diplomacy been aroused to action there is little doubt that Japan would have forced matters so far that Chinese independence would now be virtually a thing of the past. Fortunately, however, China in her hour of need found many who were willing to succour her; with the result that although she lost something in these negotiations, Japan nevertheless failed in a very signal fashion to attain her main objective. The Pyrrhic victory which she won with her eleventh hour ultimatum will indeed in the end cost her more than would have a complete failure, for Chinese suspicion and hostility are now so deep-seated that nothing will ever completely eradicate them. It is therefore only proper that an accurate record should be here incorporated of a chapter of history which has much international importance; and if we invite close attention to the mass of documents that follow it is because we hold that an adequate comprehension of them is essential to securing the future peace of the Far East. Let us first give the official text of the original Demands:
JAPAN'S ORIGINAL TWENTY-ONE DEMANDS
Translations of Documents Handed to the President, Yuan shih-kai, by Mr. Hioki, the Japanese Minister, on January 18th, 1915.
GROUP I
The Japanese Government and the Chinese Government being desirous of maintaining the general peace in Eastern Asia and further strengthening the friendly relations and good neighbourhood existing between the two nations agree to the following articles:--
Article 1. The Chinese Government engages to give full assent to all matters upon which the Japanese Government may hereafter agree with the German Government relating to the disposition of all rights, interests and concessions, which Germany, by virtue of treaties or otherwise, possesses in relation to the Province of Shantung.
Article 2. The Chinese Government engages that within the Province of Shantung and along its coast no territory or island will be ceded or leased to a third Power under any pretext.
Article 3. The Chinese Government consents to Japan's building a railway from Chefoo or Lungkow to join the Kiaochou-Tsinanfu railway.
Article 4. The Chinese Government engages, in the interest of trade and for the residence of foreigners, to open by herself as soon as possible certain important cities and towns in the Province of Shantung as Commercial Ports. What places shall be opened are to be jointly decided upon in a separate agreement.
GROUP II
The Japanese Government and the Chinese Government, since the Chinese Government has always acknowledged the special position enjoyed by Japan in South Manchuria and Eastern Inner Mongolia, agree to the following articles:--
Article 1. The two Contracting Parties mutually agree that the term of lease of Port Arthur and Dalny and the term of lease of the South Manchurian Railway and the Antung-Mukden Railway shall be extended to the period of 99 years.
Article 2. Japanese subjects in South Manchuria and Eastern Inner Mongolia shall have the right to lease or own land required either for erecting suitable buildings for trade and manufacture or for farming.
Article 3. Japanese subjects shall be free to reside and travel in South Manchuria and Eastern Inner Mongolia and to engage in business and in manufacture of any kind whatsoever.
Article 4. The Chinese Government agrees to grant to Japanese subjects the right of opening the mines in South Manchuria and Eastern Inner Mongolia. As regards what mines are to be opened, they shall be decided upon jointly.
Article 5. The Chinese Government agrees that in respect of the cases mentioned herein below the Japanese Government's consent shall be first obtained before action is taken:--
Whenever permission is granted to the subject of a third Power to build a railway or to make a loan with a third Power for the purpose of building a railway in South Manchuria and Eastern Inner Mongolia.
Whenever a loan is to be made with a third Power pledging the local taxes of South Manchuria and Eastern Inner Mongolia as security.
Article 6. The Chinese Government agrees that if the Chinese Government employs political, financial or military advisers or instructors in South Manchuria or Eastern Inner Mongolia, the Japanese Government shall first be consulted.
Article 7. The Chinese Government agrees that the control and management of the Kirin-Changchun Railway shall be handed over to the Japanese Government for a term of 99 years dating from the signing of this Agreement.
GROUP III
The Japanese Government and the Chinese Government, seeing that Japanese financiers and the Hanyehping Co. have dose relations with each other at present and desiring that the common interests of the two nations shall be advanced, agree to the following articles:--
Article 1. The two Contracting Parties mutually agree that when the opportune moment arrives the Hanyehping Company shall be made a joint concern of the two nations and they further agree that without the previous consent of Japan, China shall not by her own act dispose of the rights and property of whatsoever nature of the said Company nor cause the said Company to dispose freely of the same.
Article 2. The Chinese Government agrees that all mines in the neighbourhood of those owned by the Hanyehping Company shall not be permitted, without the consent of the said Company, to be worked by other persons outside of the said Company; and further agrees that if it is desired to carry out any undertaking which, it is apprehended, may directly or indirectly affect the interests of the said Company, the consent of the said Company shall first be obtained.
GROUP IV
The Japanese Government and the Chinese Government with the object of effectively preserving the territorial integrity of China agree to the following special articles:--
The Chinese Government engages not to cede or lease to a third Power any harbour or bay or island along the coast of China.
GROUP V
Article 1. The Chinese Central Government shall employ influential Japanese advisers in political, financial and military affairs.
Article 2. Japanese hospitals, churches and schools in the interior of China shall be granted the right of owning land.
Article 3. Inasmuch as the Japanese Government and the Chinese Government have had many cases of dispute between Japanese and Chinese police to settle cases which caused no little misunderstanding, it is for this reason necessary that the police departments of important places shall be jointly administered by Japanese and Chinese or that the police departments of these places shall employ numerous Japanese, so that they may at the same time help to plan for the improvement of the Chinese Police Service.
Article 4. China shall purchase from Japan a fixed amount of munitions of war of what is needed by the Chinese Government or that there shall be established in China a Sino-Japanese jointly worked arsenal. Japanese technical experts are to be employed and Japanese material to be purchased.
Article 5. China agrees to grant to Japan the right of constructing a railway connecting Wuchang with Kiukiang and Nanchang, another line between Nanchang and Hanchow, and another between Nanchang and Chaochou.
Article 6. If China needs foreign capital to work mines, build railways and construct harbour-works in the Provinces of Fukien, Japan shall be first consulted.
Article 7. China agrees that Japanese subjects shall have the right of missionary propaganda in China.
The five groups into which the Japanese divided their demands possess a remarkable interest not because of their sequence, or the style of their phraseology, but because every word reveals a peculiar and very illuminating chemistry of the soul. To study the original Chinese text is to pass as it were into the secret recesses of the Japanese brain, and to find in that darkened chamber a whole world of things which advertise ambitions mixed with limitations, hesitations overwhelmed by audacities, greatnesses succumbing to littlenesses, and vanities having the appearance of velleities. Given an intimate knowledge of Far Eastern politics and Far Eastern languages, only a few minutes are required to re-write the demands in the sequence in which they were originally conceived as well as to trace the natural history of their genesis. Unfortunately a great deal is lost in their official translation, and the menace revealed in the Chinese original partly cloaked: for by transferring Eastern thoughts into Western moulds, things that are like nails in the hands of soft sensitive Oriental beings are made to appear to the steel-clad West as cold-blooded, evolutionary necessities which may be repellent but which are never cruel. The more the matter is studied the more convinced must the political student be that in this affair of the 18th January we have an international coup destined to become classic in the new text-books of political science. All the way through the twenty-one articles it is easy to see the desire for action, the love of accomplished facts, struggling with the necessity to observe the conventions of a stereotyped diplomacy and often overwhelming those conventions. As the thoughts thicken and the plot develops, the effort to mask the real intention lying behind every word plainly breaks down, and a growing exultation rings louder and louder as if the coveted Chinese prize were already firmly grasped. One sees as it were the Japanese nation, released from bondage imposed by the Treaties which have been binding on all nations since 1860, swarming madly through the breached walls of ancient Cathay and disputing hotly the spoils of age-old domains.
Group I, which deals with the fruits of victory in Shantung, has little to detain us since events which have just unrolled there have already told the story of those demands. In Shantung we have a simple and easily-understood repeated performance of the history of 1905 and the settlement of the Russo-Japanese War. Placed at the very head of the list of demands, though its legitimate position should be after Manchuria, obviously the purpose of Group I is conspicuously to call attention to the fact that Japan had been at war with Germany, and is still at war with her. This flourish of trumpets, after the battle is over, however, scarcely serves to disguise that the fate of Shantung, following so hard on the heels of the Russian debacle in Manchuria, is the great moral which Western peoples are called upon to note. Japan, determined as she has repeatedly announced to preserve the peace of the Orient by any means she deems necessary, has found the one and only formula that is satisfactory--that of methodically annexing everything worth fighting about.
So far so good. The insertion of a special preamble to Group II, which covers not only South Manchuria but Eastern Inner Mongolia as well, is an ingenious piece of work since it shows that the hot mood of conquest suitable for Shantung must be exchanged for a certain judicial detachment. The preamble undoubtedly betrays the guiding hand of Viscount Kato, the then astute Minister of Foreign Affairs, who saturated in the great series of international undertakings made by Japan since the first Anglo-Japanese Treaty of 1902, clearly believes that the stately Elizabethan manner which still characterizes British official phrasing is an admirable method to be here employed. The preamble is quite English; it is so English that one is almost lulled into believing that one's previous reasoning has been at fault and that Japan is only demanding what she is entitled to. Yet study Group II closely and subtleties gradually emerge. By boldly and categorically placing Eastern Inner Mongolia on precisely the same footing as Southern Manchuria--though they have nothing in common--the assumption is made that the collapse in 1908 of the great Anglo- American scheme to run a neutral railway up the flank of Southern Manchuria to Northern Manchuria , coupled with general agreement with Russia which was then arrived at, now impose upon China the necessity of publicly resigning herself to a Japanese overlordship of that region. In other words, the preamble of Group II lays down that Eastern Inner Mongolia has become part and parcel of the Manchurian Question because Japan has found a parallel for what she is doing in the acts of European Powers.
These things, however, need not detain us. Not that Manchuria or the adjoining Mongolian plain is not important; not that the threads of destiny are not woven thickly there. For it is certain that the vast region immediately beyond the Great Wall of China is the Flanders of the Far East--and that the next inevitable war which will destroy China or make her something of a nation must be fought on that soil just as two other wars have been fought there during the past twenty years. But this does not belong to contemporary politics; it is possibly an affair of the Chinese army of 1925 or 1935. Some day China will fight for Manchuria, if it is impossible to recover it in any other way,--nobody need doubt that. For Manchuria is absolutely Chinese--people must remember. No matter how far the town-dwelling Japanese may invade the country during the next two or three decades, no matter what large alien garrisons may be planted there, the Chinese must and will remain the dominant racial element, since their population which already numbers twenty-five millions is growing at the rate of half a million a year, and in a few decades will equal the population of a first-class European Power.
When we reach Group III we touch matters that are not only immediately vital but quite new in their type of audacity and which every one can to-day understand since they are politico- industrial. Group III, as it stands in the original text, is SIMPLY THE PLAN FOR THE CONQUEST OF THE MINERAL WEALTH OF THE YANGTSZE VALLEY which mainly centres round Hankow because the vast alluvial plains of the lower reaches of this greatest of rivers were once the floor of the Yellow Sea, the upper provinces of Hupeh, Hunan, Kiangsi being the region of prehistoric forests clothing the coasts, which once looked down upon the slowly- receding waste of waters, and which to-day contain all the coal and iron. Hitherto every one has always believed that the Yang tsze Valley was par excellence the British sphere in China; and every one has always thought that that belief was enough. It is true that political students, going carefully over all published documents, have ended their search by declaring that the matter certainly required further elucidation. To be precise, this so- called British sphere is not an enclave at all in the proper sense; indeed it can only seem one to those who still believe that it is still possible to pre-empt provinces by ministerial declarations. The Japanese have been the first to dare to say that the preconceived general belief was stupid. They know, of course, that it was a British force which invaded the Yangtsze Valley seventy-five years ago, and forced the signature of the Treaty of Nanking which first opened China to the world's trade; but they are by no means impressed with the rights which that action has been held to confer, since the mineral resources of this region are priceless in their eyes and must somehow be won.
The study of twenty years of history proves this assumption to be correct. Ever since 1895, Japan has been driving wedges into the Yangtsze Valley of a peculiar kind to form the foundations for her sweeping claims of 1915. Thus after the war with China in 1894-95, she opened by her Treaty of Peace four ports in the Yangtsze Valley region, Soochow, Hangchow, Chungking and Shasi; that is, at the two extreme ends of the valley she established politico- commercial points d'appui from which to direct her campaign. Whilst the proximity of Soochow and Hangchow to the British stronghold of Shanghai made it difficult to carry out any "penetration" work at the lower end of the river save in the form of subsidized steam-shipping, the case was different in Hunan and Hupeh provinces. There she was unendingly busy, and in 1903 by a fresh treaty she formally opened to trade Changsha, the capital of the turbulent Hunan province. Changsha for years remained a secret centre possessing the greatest political importance for her, and serving as a focus for most varied activities involving Hunan, Hupeh, and Kiangsi, as well as a vast hinterland. The great Tayeh iron-mines, although entirely Chinese-owned, were already being tapped to supply iron-ore for the Japanese Government Foundry at Wakamatsu on the island of Kiushiu. The rich coal mines of Pinghsiang, being conveniently near, supplied the great Chinese Government arsenal of Hanyang with fuel; and since Japan had very little coal or iron of her own, she decided that it would be best to embrace as soon as possible the whole area of interests in one categorical demand--that is to claim a dominant share in the Hanyang arsenal, the Tayeh iron-mines and the Ping-hsiang collieries. By lending money to these enterprises, which were grouped together under the name of Hanyehping, she had early established a claim on them which she turned at the psychological moment into an international question.
We can pass quickly by Group IV which is of little importance, except to say that in taking upon herself, without consultation with the senior ally, the duty of asking from China a declaration concerning the future non-leasing of harbours and islands, Japan has attempted to assume a protectorship of Chinese territory which does not belong to her historically. It is well also to note that although Japan wished it to appear to the world that this action was dictated by her desire to prevent Germany from acquiring a fresh foothold in China after the war, in reality Group IV was drafted as a general warning to the nations, one point being that she believed that the United States was contemplating the reorganization of the Foochow Arsenal in Fuhkien province, and that as a corollary to that reorganization would be given the lease of an adjoining harbour such as Santuao.
It is not, however, until we reach Group V that the real purpose of the Japanese demands becomes unalterably clear, for in this Group we have seven sketches of things designed to serve as the coup de grace. Not only is a new sphere--Fuhkien province-- indicated; not only is the mid-Yangtsze, from the vicinity of Kiukiang, to serve as the terminus for a system of Japanese railways, radiating from the great river to the coasts of South China; but the gleaming knife of the Japanese surgeon is to aid the Japanese teacher in the great work of propaganda; the Japanese monk and the Japanese policeman are to be dispersed like skirmishers throughout the land; Japanese arsenals are to supply all the necessary arms, or failing that a special Japanese arsenal is to be established; Japanese advisers are to give the necessary advice in finance, in politics, in every department--foreshadowing a complete and all embracing political control. Never was a more sweeping program of supervision presented, and small wonder if Chinese when they learnt of this climax exclaimed that the fate of Korea was to be their own. For a number of weeks after the presentation of these demands everything remained clothed in impenetrable mystery, and despite every effort on the part of diplomatists reliable details of what was occurring could not be obtained. Gradually, however, the admission was forced that the secrecy being preserved was due to the Japanese threat that publicity would be met with the harshest reprisals; and presently the veil was entirely lifted by newspaper publication and foreign Ambassadors began making inquiries in Tokio. The nature and scope of the Twenty-one Demands could now be no longer hidden; and in response to the growing indignation which began to be voiced by the press and the pressure which British diplomacy brought to bear, Japan found it necessary to modify some of the most important items. She had held twenty-four meetings at the Chinese Foreign Office, and although the Chinese negotiators had been forced to give way in such matters as extending the "leasing" periods of railways and territories in Manchuria and in admitting the Japanese right to succeed to all German interests and rights in Shantung , in the essential matters of the Hanyehping concessions and the noxious demands of Group V China had stood absolutely firm, declining even to discuss some of the items.
Accordingly Japanese diplomacy was forced to re-state and re-group the whole corpus of the demands. On the 26th April, acting under direct instructions from Tokio, the Japanese Minister to Peking presented a revised list for renewed consideration, the demands being expanded to twenty-four articles . Most significant, however, is the fact that Group V, was so remodelled as to convey a very different meaning, the group heading disappearing entirely and an innocent-looking exchange of notes being asked for. It is necessary to recall that, when taxed with making Demands which were entirely in conflict with the spirit of the Anglo-Japanese Alliance, the Japanese Government through its ambassadors abroad had categorically denied that they had ever laid any such Demands on the Chinese Government. It was claimed that there had never been twenty-one Demands, as the Chinese alleged, but only fourteen, the seven items of Group V being desiderata which it was in the interests of china to endorse but which Japan had no intention of forcing upon her. The writer, being acquainted from first to last with everything that took place in Peking from the 18th January to the filing of the Japanese ultimatum of the 7th May, has no hesitation in stigmatising this statement as false. The whole aim and object of these negotiations was to force through Group V. Japan would have gladly postponed sine die the discussion of all the other Groups had China assented to provisions which would have made her independence a thing of the past. Every Chinese knew that, in the main, Group V was simply a repetition of the measures undertaken in Korea after the Russo-Japanese war of 1905 as a forerunner to annexation; and although obviously in the case of China no such rapid surgery could be practised, the endorsement of these measures would have meant a virtual Japanese Protectorate. Even a cursory study of the text that follows will confirm in every particular these capital contentions:
JAPAN'S REVISED DEMANDS
Japan's Revised Demands on China, twenty-four in all, presented April 26, 1915.
NOTE ON ORIGINAL TEXT:

GROUP I
The Japanese Government and the Chinese Government, being desirous of maintaining the general peace in Eastern Asia and further strengthening the friendly relations and good neighbourhood existing between the two nations, agree to the following articles:--
Article 1. The Chinese Government engages to give full assent to all matters upon which the Japanese Government may hereafter agree with the German Government, relating to the disposition of all rights, interests and concessions, which Germany, by virtue of treaties or otherwise, possesses in relation to the Province of Shangtung.
Article 2.
The Chinese Government declares that within the Province of Shantung and along its coast no territory or island will be ceded or leased to any Power under any pretext.
Article 3. The Chinese Government consents that as regards the railway to be built by China herself from Chefoo or Lung kow to connect with the Kiaochow-Tsinanfu Railway, if Germany is willing to abandon the privilege of financing the Chefoo-Weihsien line. China will approach Japanese capitalists to negotiate for a loan.
Article 4. The Chinese Government engages, in the interest of trade and for the residence of foreigners, to open by China herself as soon as possible certain suitable places in the Province of Shantung as Commercial Ports.

The places which ought to be opened are to be chosen and the regulations are to be drafted, by the Chinese Government, but the Japanese Minister must be consulted before making a decision.
GROUP II
The Japanese Government and the Chinese Government, with a view to developing their economic relations in South Manchuria and Eastern Inner Mongolia, agree to the following articles:--
Article 1. The two contracting Powers mutually agree that the term of lease of Port Arthur and Dalny and the terms of the South Manchuria Railway and the Antung-Mukden Railway shall be extended to 99 years.

The term of lease of Port Arthur and Dalny shall expire in the 86th year of the Republic or 1997. The date for restoring the South Manchurian Railway to China shall fall due in the 91st year of the Republic or 2002. Article 12 in the original South Manchurian Railway Agreement stating that it may be redeemed by China after 36 years after the traffic is opened is hereby cancelled. The term of the Antung-Mukden Railway shall expire in the 96th year of the Republic or 2007.
Article 2. Japanese subjects in South Manchuria may lease or purchase the necessary land for erecting suitable buildings for trade and manufacture or for prosecuting agricultural enterprises.
Article 3. Japanese subjects shall be free to reside and travel in South Manchuria and to engage in business and manufacture of any kind whatsoever.
Article 3a. The Japanese subjects referred to in the preceding two articles, besides being required to register with the local authorities pass-ports which they must procure under the existing regulations, shall also submit to police laws and ordinances and tax regulations, which are approved by the Japanese consul. Civil and criminal cases in which the defendants are Japanese shall be tried and adjudicated by the Japanese consul; those in which the defendants are Chinese shall be tried and adjudicated by Chinese Authorities. In either case an officer can be deputed to the court to attend the proceedings. But mixed civil cases between Chinese and Japanese relating to land shall be tried and adjudicated by delegates of both nations conjointly in accordance with Chinese law and local usage. When the judicial system in the said region is completely reformed, all civil and criminal cases concerning Japanese subjects shall be tried entirely by Chinese law courts.
Article 4.
The Chinese Government agrees that Japanese subjects shall be permitted forthwith to investigate, select, and then prospect for and open mines at the following places in South Manchuria, apart from those mining areas in which mines are being prospected for or worked; until the Mining Ordinance is definitely settled methods at present in force shall be followed.
PROVINCE OF FENG-TIEN
Locality District Mineral
Niu Hsin T'ai Pen-hsi Coal Tien Shih Fu Kou Pen-hsi Coal Sha Sung Kang Hai-lung Coal T'ieh Ch'ang Tung-hua Coal Nuan Ti Tang Chin Coal An Shan Chan region From Liao-yang to Pen-hsi Iron
PROVINCE of KIRIN
Sha Sung Kang Ho-lung Coal and Iron Kang Yao Chi-lin Coal Chia P'i Kou Hua-tien Gold
Article 5. The Chinese Government declares that China will hereafter provide funds for building railways in South Manchuria; if foreign capital is required, the Chinese Government agrees to negotiate for the loan with Japanese capitalists first.
Article 5a. The Chinese Government agrees that hereafter, when a foreign loan is to be made on the security of the taxes of South Manchuria , it will negotiate for the loan with Japanese capitalists first.
Article 6. The Chinese Government declares that hereafter if foreign advisers or instructors on political, financial, military or police matters, are to be employed in South Manchuria, Japanese will be employed first.
Article 7. The Chinese Government agrees speedily to make a fundamental revision of the Kirin-Changchun Railway Loan Agreement, taking as a standard the provisions in railroad loan agreements made heretofore between China and foreign financiers. If, in future, more advantageous terms than those in existing railway loan agreements are granted to foreign financiers, in connection with railway loans, the above agreement shall again be revised in accordance with Japan's wishes.
All existing treaties between China and Japan relating to Manchuria shall, except where otherwise provided for by this Convention, remain in force.
1. The Chinese Government agrees that hereafter when a foreign loan is to be made on the security of the taxes of Eastern Inner Mongolia, China must negotiate with the Japanese Government first.
2. The Chinese Government agrees that China will herself provide funds for building the railways in Eastern Inner Mongolia; if foreign capital is required, she must negotiate with the Japanese Government first.
3. The Chinese Government agrees, in the interest of trade and for the residence of foreigners, to open by China herself, as soon as possible, certain suitable places in Eastern Inner Mongolia as Commercial Ports. The places which ought to be opened are to be chosen, and the regulations are to be drafted, by the Chinese Government, but the Japanese Minister must be consulted before making a decision.
4. In the event of Japanese and Chinese desiring jointly to undertake agricultural enterprises and industries incidental thereto, the Chinese Government shall give its permission.
GROUP III
The relations between Japan and the Hanyehping Company being very intimate, if those interested in the said Company come to an agreement with the Japanese capitalists for co-operation, the Chinese Government shall forthwith give its consent thereto. The Chinese Government further agrees that, without the consent of the Japanese capitalists, China will not convert the Company into a state enterprise, nor confiscate it, nor cause it to borrow and use foreign capital other than Japanese.
GROUP IV
China to give a pronouncement by herself in accordance with the following principle:--
No bay, harbour, or island along the coast of China may be ceded or leased to any Power.
Notes to be Exchanged A
As regards the right of financing a railway from Wuchang to connect with the Kiu-kiang-Nanchang line, the Nanchang-Hangchow railway, and the Nanchang-Chaochow railway, if it is clearly ascertained that other Powers have no objection, China shall grant the said right to Japan.
B
As regards the rights of financing a railway from Wuchang to connect with the Kiu-kiang-Nanchang railway, a railway from Nanchang to Hangchow and another from Nanchang to Chaochow, the Chinese Government shall not grant the said right to any foreign Power before Japan comes to an understanding with the other Power which is heretofore interested therein.
NOTES TO BE EXCHANGED
The Chinese Government agrees that no nation whatever is to be permitted to construct, on the coast of Fukien Province, a dockyard, a coaling station for military use, or a naval base; not to be authorized to set up any other military establishment. The Chinese Government further agrees not to use foreign capital for setting up the above mentioned construction or establishment.
Mr. Lu, the Minister of Foreign Affairs, stated as follows:--
1. The Chinese Government, shall, whenever, in future, it considers this step necessary, engage numerous Japanese advisers.
2. Whenever, in future, Japanese subjects desire to lease or purchase land in the interior of China for establishing schools or hospitals, the Chinese Government shall forthwith give its consent thereto.
3. When a suitable opportunity arises in future, the Chinese Government will send military officers to Japan to negotiate with Japanese military authorities the matter of purchasing arms or that of establishing a joint arsenal.
Mr. Hioki, the Japanese Minister, stated as follows:--
As relates to the question of the right of missionary propaganda the same shall be taken up again for negotiation in future.
An ominous silence followed the delivery of this document. The Chinese Foreign Office had already exhausted itself in a discussion which had lasted three months, and pursuant to instructions from the Presidential Palace prepared an exhaustive Memorandum on the subject. It was understood by now that all the Foreign Offices in the world were interesting themselves very particularly in the matter; and that all were agreed that the situation which had so strangely developed was very serious. On the 1st May, proceeding by appointment to the Waichiaopu the Japanese Minister had read to him the following Memorandum which it is very necessary to grasp as it shows how solicitous China had become of terminating the business before there was an open international break. It will also be seen that this Memorandum was obviously composed for purpose of public record, the fifth group being dealt with in such a way as to fix upon Japan the guilt of having concealed from her British Ally matters which conflicted vitally with the aims and objects of the Anglo-Japanese Alliance Treaty.
MEMORANDUM
Read by the Minister of Foreign Affairs to Mr. Hioki, the Japanese Minister, at a Conference held at Wai Chiao Pu, May 1, 1915.
The list of demands which the Japanese Government first presented to the Chinese Government consists of five groups, the first relating to Shantung, the second relating to South Manchuria and Eastern Inner Mongolia, the third relating to Hanyehping Company, the fourth asking for non-alienation of the coast of the country, and the fifth relating to the questions of national advisers, national police, national arms, missionary propaganda, Yangtsze Valley railways, and Fukien Province. Out of profound regard for the intentions entertained by Japan, the Chinese Government took these momentous demands into grave and careful consideration and decided to negotiate with the Japanese Government frankly and sincerely what were possible to negotiate. This is a manifestation to Japan of the most profound regard which the Chinese Government entertains for the relations between the two nations.
Ever since the opening of the negotiations China has been doing her best to hasten their progress holding as many as three conferences a week. As regards the articles in the second group, the Chinese Government being disposed to allow the Japanese Government to develop the economic relations of the two countries in South Manchuria, realizing that the Japanese Government attaches importance to its interests in that region, and wishing to meet the hope of Japan, made a painful effort, without hesitation, to agree to the extension of the 25-year lease of Port Arthur and Dalny, the 36-year period of the South Manchurian Railway and the 15-year period of the Antung-Mukden Railway, all to 99 years; and to abandon its own cherished hopes to regain control of these places and properties at the expiration of their respective original terms of lease. It cannot but be admitted that this is a most genuine proof of China's friendship for Japan.
As to the right of opening mines in South Manchuria, the Chinese Government has already agreed to permit Japanese to work mines within the mining areas designated by Japan. China has further agreed to give Japan a right of preference in the event of borrowing foreign capital for building railways or of making a loan on the security of the local taxes in South Manchuria. The question of revising the arrangement for the Kirin-Changchun Railway has been settled in accordance with the proposal made by Japan. The Chinese Government has further agreed to employ Japanese first in the event of employing foreign advisers on political, military, financial and police matters.
Furthermore, the provision about the repurchase period in the South Manchurian Railway was not mentioned in Japan's original proposal. Subsequently, the Japanese Government alleging that its meaning was not clear, asked China to cancel the provision altogether. Again, Japan at first demanded the right of Japanese to carry on farming in South Manchuria, but subsequently she considered the word "farming" was not broad enough and asked to replace it with the phrase "agricultural enterprises." To these requests the Chinese Government, though well aware that the proposed changes could only benefit Japan, still acceded without delay. This, too, is a proof of China's frankness and sincerity towards Japan.
As regards matters relating to Shangtung the Chinese Government has agreed to a majority of the demands.
The question of inland residence in South Manchuria is, in the opinion of the Chinese Government, incompatible with the treaties China had entered into with Japan and other Powers, still the Chinese Government did its best to consider how it was possible to avoid that incompatibility. At first, China suggested that the Chinese Authorities should have full rights of jurisdiction over Japanese settlers. Japan declined to agree to it. Thereupon China reconsidered the question and revised her counter-proposal five or six times, each time making some definite concession, and went so far to agree that all civil and criminal cases between Chinese and Japanese should be arranged according to existing treaties. Only cases relating to land or lease contracts were reserved to be adjudicated by Chinese Courts, as a mark of China's sovereignty over the region. This is another proof of China's readiness to concede as much as possible.
Eastern Inner Mongolia is not an enlightened region as yet and the conditions existing there are entirely different from those prevailing in South Manchuria. The two places, therefore, cannot be considered in the same light. Accordingly, China agreed to open commercial marts first, in the interests of foreign trade.
The Hanyehping Company mentioned in the third group is entirely a private company, and the Chinese Government is precluded from interfering with it and negotiating with another government to make any disposal of the same as the Government likes, but having regard for the interests of the Japanese capitalists, the Chinese Government agreed that whenever, in future, the said company and the Japanese capitalists should arrive at a satisfactory arrangement for co-operation, China will give her assent thereto. Thus the interests of the Japanese capitalists are amply safeguarded.
Although the demand in the fourth group asking for a declaration not to alienate China's coast is an infringement of her sovereign rights, yet the Chinese Government offered to make a voluntary pronouncement so far as it comports with China's sovereign rights. Thus, it is seen that the Chinese Government, in deference to the wishes of Japan, gave a most serious consideration even to those demands, which gravely affect the sovereignty and territorial rights of China as well as the principle of equal opportunity and the treaties with foreign Powers. All this was a painful effort on the part of the Chinese Government to meet the situation--a fact of which the Japanese Government must be aware.
As regards the demands in the fifth group, they all infringe China's sovereignty, the treaty rights of other Powers or the principle of equal opportunity. Although Japan did not indicate any difference between this group and the preceding four in the list which she presented to China in respect to their character, the Chinese Government, in view of their palpably objectionable features, persuaded itself that these could not have been intended by Japan as anything other than Japan's mere advice to China. Accordingly China has declared from the very beginning that while she entertains the most profound regard for Japan's wishes, she was unable to admit that any of these matters could be made the subject of an understanding with Japan. Much as she desired to pay regard to Japan's wishes, China cannot but respect her own sovereign rights and the existing treaties with other Powers. In order to be rid of the seed for future misunderstanding and to strengthen the basis of friendship, China was constrained to iterate the reasons for refusing to negotiate on any of the articles in the fifth group, yet in view of Japan's wishes China has expressed her readiness to state that no foreign money was borrowed to construct harbour work in Fukien Province. Thus it is clear that China went so far as to see a solution for Japan of a question that really did not admit of negotiation. Was there, then, evasion, on the part of China?
Now, since the Japanese Government has presented a revised list of demands and declared at the same time, that it will restore the leased territory of Kiaochow, the Chinese Government reconsiders the whole question and herewith submits a new reply to the friendly Japanese Government.
In this reply the unsettled articles in the first group are stated again for discussion.
As regards the second group, those articles which have already been initialled are omitted. In connection with the question of inland residence the police regulation clause has been revised in a more restrictive sense. As for the trial of cases relating to land and lease contracts the Chinese Government now permits the Japanese Consul to send an officer to attend the proceedings.
Of the four demands in connection with that part of Eastern Inner Mongolia which is within the jurisdiction of South Manchuria and the Jehol intendency, China agrees to three.
China, also, agrees to the article relating to the Hanyehping Company as revised by Japan.
It is hoped that the Japanese Government will appreciate the conciliatory spirit of the Chinese Government in making this final concession and forthwith give her assent thereto.
There is one more point. At the beginning of the present negotiations it was mutually agreed to observe secrecy but unfortunately a few days after the presentation of the demands by Japan an Osaka newspaper published an "Extra" giving the text of the demands. The foreign and the Chinese press has since been paying considerable attention to this question and frequently publishing pro-Chinese or pro-Japanese comments in order to call forth the World's conjecture--a matter which the Chinese Government deeply regrets.
The Chinese Government has never carried on any newspaper campaign and the Chinese Minister of Foreign Affairs has repeatedly declared this to the Japanese Minister.
In conclusion, the Chinese Government wishes to express its hope that the negotiations now pending between the two countries will soon come to an end and whatever misgivings foreign countries entertain toward the present situation may be quickly dispelled.
The Peking Government, although fully aware of the perils now confronting it, had dared to draft a complete reply to the revised Demands and had reduced Japanese redundancy to effective limits. Not only were various articles made more compact, but the phraseology employed conveyed unmistakably, if in a somewhat subtle way, that China was not a subordinate State treating with a suzerain. Moreover, after dealing succinctly and seriously with Groups I, II and III, the Chinese reply terminates abruptly, the other points in the Japanese List being left entirely unanswered. It is important to seize these points in the text that follows.
CHINA'S REPLY TO REVISED DEMANDS
China's Reply of May 1, 1915, to the Japanese Revised Demands of April 26, 1915.
GROUP I
The Chinese Government and the Japanese Government, being desirous of maintaining the general peace in Eastern Asia and further strengthening the friendly relations and good neighbourhood existing between the two nations, agree to the following articles:--
Article 1. The Chinese Government declares that they will give full assent to all matters upon which the Japanese and German Governments may hereafter mutually agree, relating to the disposition of all interests, which Germany, by virtue of treaties or recorded cases, possesses in relation to the Province of Shantung.
The Japanese Government declares that when the Chinese Government give their assent to the disposition of interests above referred to, Japan will restore the leased territory of Kiaochow to China; and further recognize the right of the Chinese Government to participate in the negotiations referred to above between Japan and Germany.
Article 2. The Japanese Government consents to be responsible for the indemnification of all losses occasioned by Japan's military operation around the leased territory of Kiaochow. The customs, telegraphs and post offices within the leased territory of Kiaochow shall, prior to the restoration of the said leased territory to China, be administered as heretofore for the time being. The railways and telegraph lines erected by Japan for military purposes are to be removed forthwith. The Japanese troops now stationed outside the original leased territory of Kiaochow are now to be withdrawn first, those within the original leased territory are to be withdrawn on the restoration of the said leased territory to China.
Article 3.
The Chinese Government declares that within the Province of Shantung and along its coast no territory or island will be ceded or leased to any Power under any pretext.
Article 4. The Chinese Government consent that as regards the railway to be built by China herself from Chefoo or Lung kow to connect with the Kiaochow-Tsinanfu railway, if Germany is willing to abandon the privilege of financing the Chefoo-Weihsien line, China will approach Japanese capitalists for a loan.
Article 5. The Chinese Government engage, in the interest of trade and for the residence of foreigners, to open by herself as soon as possible certain suitable places in the Province of Shantung as Commercial Ports.

The places which ought to be opened are to be chosen, and the regulations are to be drafted by the Chinese Government, but the Japanese Minister must be consulted before making a decision.
Article 6. If the Japanese and German Governments are not able to come to a definite agreement in future in their negotiations respecting transfer, etc., this provisional agreement contained in the foregoing articles shall be void.
GROUP II
The Chinese Government and the Japanese Government, with a view to developing their economic relations in South Manchuria, agree to the following articles:--
Article 2. Japanese subjects in South Manchuria may, by arrangement with the owners, lease land required for erecting suitable buildings for trade and manufacture or agricultural enterprises.
Article 3. Japanese subjects shall be free to reside and travel in South Manchuria and to engage in business and manufacture of any kind whatsoever.
Article 3a. The Japanese subjects referred to in the preceding two articles, besides being required to register with the local authorities pass-ports which they must procure under the existing regulations, shall also observe police rules and regulations and pay taxes in the same manner as Chinese. Civil and criminal cases shall be tried and adjudicated by the authorities of the defendant nationality and an officer can be deputed to attend the proceedings. But all cases purely between Japanese subjects and mixed cases between Japanese or Chinese, relating to land or disputes arising from lease contracts, shall be tried and adjudicated by Chinese Authorities and the Japanese Consul may also depute an officer to attend the proceedings. When the judicial system in the said Province is completely reformed, all the civil and criminal cases concerning Japanese subjects shall be tried entirely by Chinese law courts.
RELATING TO EASTERN INNER MONGOLIA
1. The Chinese Government declare that China will not in future pledge the taxes, other than customs and salt revenue of that part of Eastern Inner Mongolia under the jurisdiction of South Manchuria and Jehol Intendency, as security for raising a foreign loan.
2. The Chinese Government declare that China will herself provide funds for building the railways in the part of Eastern Inner Mongolia under the jurisdiction of South Manchuria and the Jehol Intendency; if foreign capital is required, China will negotiate with Japanese capitalists first, provided this does not conflict with agreements already concluded with other Powers.
The Chinese Government agree, in the interest of trade and for the residence of foreigners, to open by China herself certain suitable places in that part of Eastern Inner Mongolia under the jurisdiction of South Manchurian and the Jehol Intendency, as Commercial Marts.
The regulations for the said Commercial Marts will be made in accordance with those of other Commercial Marts opened by China herself.
GROUP III
The relations between Japan and the Hanyehping Company being very intimate, if the said Company comes to an agreement with the Japanese capitalists for co-operation, the Chinese Government shall forthwith give their consent thereto. The Chinese Government further declare that China will not convert the company into a state enterprise, not confiscate it, nor cause it to borrow and use foreign capital other than Japanese.
Letter to be addressed by the Japanese Minister to the Chinese Minister of Foreign Affairs.
Excellency: I have the honour to state that a report has reached me that the Chinese Government have given permission to foreign nations to construct, on the coast of Fukien Province, dock-yards, coaling stations for military use, naval bases and other establishments for military purposes; and further, that the Chinese Government are borrowing foreign capital for putting up the above-mentioned constructions or establishments. I shall be much obliged if the Chinese Government will inform me whether or not these reports are well founded in fact.
Reply to be addressed by the Chinese Minister of Foreign Affairs to the Japanese Minister.
Excellency: I have the honour to acknowledge the receipt of your Excellency's Note of ... In reply I beg to state that the Chinese Government have not given permission to foreign Powers to construct, on the coast of Fukien Province, dock-yards, coaling stations for military use, naval bases or other establishments for military purposes; nor do they contemplate to borrow foreign capital for putting up such constructions or establishments.
Within forty-eight hours of this passage-at-arms of the 1st May it was understood in Peking that Japan was meditating a serious step. That vague feeling of unrest which so speedily comes in capitals when national affairs reach a crisis was very evident, and the word "ultimatum" began to be whispered. It was felt that whilst China had held to her rights to the utmost and had received valuable indirect support from both England and the United States, the world-situation was such that it would be difficult to prevent Japan from proceeding to extremities. Accordingly there was little real surprise when on the 7th May Japan filed an ultimatum demanding a satisfactory reply within 48 hours to her Revised Demands--failing which those steps deemed necessary would be taken. A perusal of the text of the Ultimatum will show an interesting change in the language employed. Coaxing having failed, and Japan being 'now convinced that so long as she did not seek to annex the rights of other Foreign Powers in China open opposition could not be offered to her,' states her case very defiantly. One significant point, however, must be carefully noted--that she agrees "to detach Group V from the present negotiations and to discuss it separately in the future." It is this fact which remains the sword of Damocles hanging over China's head; and until this sword has been flung back into the waters of the Yellow Sea the Far Eastern situation will remain perilous.
JAPAN'S ULTIMATUM TO CHINA
Japan's Ultimatum delivered by the Japanese Minister to the Chinese Government, on May 7th, 1915.
The reason why the Imperial Government opened the present negotiations with the Chinese Government is first to endeavour to dispose of the complications arising out of the war between Japan and China, and secondly to attempt to solve those various questions which are detrimental to the intimate relations of China and Japan with a view to solidifying the foundation of cordial friendship subsisting between the two countries to the end that the peace of the Far East may be effectually and permanently preserved. With this object in view, definite proposals were presented to the Chinese Government in January of this year, and up to today as many as twenty-five conferences have been held with the Chinese Government in perfect sincerity and frankness.
In the course of the negotiation the Imperial Government have consistently explained the aims and objects of the proposals in a conciliatory spirit, while on the other hand the proposals of the Chinese Government, whether important or unimportant, have been attended to without any reserve.
It may be stated with confidence that no effort has been spared to arrive at a satisfactory and amicable settlement of those questions.
The discussion of the entire corpus of the proposals was practically at an end at the twenty-fourth conference; that is on the 17th of the last month. The Imperial Government, taking a broad view of the negotiation and in consideration of the points raised by the Chinese Government, modified the original proposals with considerable concessions and presented to the Chinese Government on the 26th of the same month the revised proposals for agreement, and at the same time it was offered that, on the acceptance of the revised proposals, the Imperial Government would, at a suitable opportunity, restore, with fair and proper conditions, to the Chinese Government the Kiaochow territory, in the acquisition of which the Imperial Government had made a great sacrifice.
On the 1st of May, the Chinese Government delivered the reply to the revised proposals of the Japanese Government, which is contrary to the expectations of the Imperial Government. The Chinese Government not only did not give a careful consideration to the revised proposals but even with regard to the offer of the Japanese Government to restore Kiaochow to the Chinese Government the latter did not manifest the least appreciation for Japan's good will and difficulties.
From the commercial and military point of view Kiaochow is an important place, in the acquisition of which the Japanese Empire sacrificed much blood and money, and, after the acquisition the Empire incurs no obligation to restore it to China. But with the object of increasing the future friendly relations of the two countries, they went to the extent of proposing its restoration, yet to her great regret, the Chinese Government did not take into consideration the good intention of Japan and manifest appreciation of her difficulties. Furthermore, the Chinese Government not only ignored the friendly feelings of the Imperial Government in offering the restoration of Kiaochow Bay, but also in replying to the revised proposals they even demanded its unconditional restoration; and again China demanded that Japan should bear the responsibility of paying indemnity for all the unavoidable losses and damages resulting from Japan's military operations at Kiaochow; and still further in connection with the territory of Kiaochow China advanced other demands and declared that she has the right of participation at the future peace conference to be held between Japan and Germany. Although China is fully aware that the unconditional restoration of Kiaochow and Japan's responsibility of indemnification for the unavoidable losses and damages can never be tolerated by Japan yet she purposely advanced these demands and declared that this reply was final and decisive.
Since Japan could not tolerate such demands the settlement of the other questions, however compromising it may be, would not be to her interest. The consequence is that the present reply of the Chinese Government is, on the whole, vague and meaningless.
Furthermore, in the reply of the Chinese Government to the other proposals in the revised list of the Imperial Government, such as South Manchuria and Eastern Inner Mongolia, where Japan particularly has geographical, commercial, industrial and strategic relations, as recognized by all the nations, and made more remarkable in consequence of the two wars in which Japan was engaged the Chinese Government overlooks these facts and does not respect Japan's position in that place. The Chinese Government even freely altered those articles which the Imperial Government, in a compromising spirit, have formulated in accordance with the statement of the Chinese Representatives thereby making the statements of the Representatives an empty talk; and on seeing them conceding with the one hand and withholding with the other it is very difficult to attribute faithfulness and sincerity to the Chinese authorities.
As regards the articles relating to the employment of advisers, the establishment of schools, and hospitals, the supply of arms and ammunition and the establishment of arsenals and railway concessions in South China in the revised proposals they were either proposed with the proviso that the consent of the Power concerned must be obtained, or they are merely to be recorded in the minutes in accordance with the statements of the Chinese delegates, and thus they are not in the least in conflict either with Chinese sovereignty or her treaties with the Foreign Powers, yet the Chinese Government in their reply to the proposals, alleging that these proposals are incompatible with their sovereign rights and treaties with Foreign Powers, defeat the expectations of the Imperial Government. However in spite of such attitude of the Chinese Government, the Imperial Government, though regretting to see that there is no room for further negotiations, yet warmly attached to the preservation of the peace of the Far East, is still hoping for a satisfactory settlement in order to avoid the disturbance of the relations.
So in spite of the circumstances which admitted no patience, they have reconsidered the feelings of the Government of their neighbouring country and, with the exception of the article relating to Fukien which is to be the subject of an exchange of notes as has already been agreed upon by the Representatives of both nations, will undertake to detach the Group V from the present negotiation and discuss it separately in the future. Therefore the Chinese Government should appreciate the friendly feelings of the Imperial Government by immediately accepting without any alteration all the articles of Group I, II, III, and IV and the exchange of notes in connection with Fukien province in Group V as contained in the revised proposals presented on the 26th of April.
The Imperial Government hereby again offer their advice and hope that the Chinese Government, upon this advice, will give a satisfactory reply by 6 o'clock P. M. on the 9th day of May. It is hereby declared that if no satisfactory reply is received before or at the specified time, the Imperial Government will take steps they may deem necessary.
EXPLANATORY NOTE
Accompanying Ultimatum delivered to the Minister of Foreign Affairs by the Japanese Minister, May 7th, 1915.
1. With the exception of the question of Fukien to be arranged by an exchange of notes, the five articles postponed for later negotiation refer to the employment of advisers, the establishment of schools and hospitals, the railway concessions in South China, the supply of arms and ammunition and the establishment of arsenals and right of Missionary propaganda.
2. The acceptance by the Chinese Government of the article relating to Fukien may be either in the form as proposed by the Japanese Minister on the 26th of April or in that contained in the Reply of the Chinese Government of May 1st. Although the Ultimatum calls for the immediate acceptance by China of the modified proposals presented on April 26th, without alteration but it should be noted that it merely states the principle and does not apply to this article and articles 4 and 5 of this note.
3. If the Chinese Government accept all the articles as demanded in the Ultimatum the offer of the Japanese Government to restore Kiaochow to China, made on the 26th of April, will still hold good.
4. Article 2 of Group II relating to the lease or purchase of land, the terms "lease" and "purchase" may be replaced by the terms "temporary lease" and "perpetual lease" or "lease on consultation," which means a long-term lease with its unconditional renewal.
Article 4 of Group II relating to the approval of police laws and Ordinances and local taxes by the Japanese Council may form the subject of a secret agreement.
5. The phrase "to consult with the Japanese Government" in connection with questions of pledging the local taxes for raising loans and the loans for the construction of railways, in Eastern Inner Mongolia, which is similar to the agreement in Manchuria relating to the matters of the same kind, may be replaced by the phrase "to consult with the Japanese capitalists."
The article relating to the opening of trade marts in Eastern Inner Mongolia in respect to location and regulations, may, following their precedent set in Shantung, be the subject of an exchange of notes.
6. From the phrase "those interested in the Company" in Group III of the revised list of demands, the words "those interested in" may be deleted.
7. The Japanese version of the Formal Agreement and its annexes shall be the official text or both the Chinese and Japanese shall be the official texts.
Whilst it would be an exaggeration to say that open panic followed the filing of this document, there was certainly very acute alarm,--so much so that it is today known in Peking that the Japanese Legation cabled urgently to Tokio that even better terms could be obtained if the matter was left to the discretion of the men on the spot. But the Japanese Government had by now passed through a sufficiently anxious time itself, being in possession of certain unmistakable warnings regarding what was likely to happen after a world-peace had come,--if matters were pressed too far. Consequently nothing more was done, and on the following day China signified her acceptance of the Ultimatum in the following terms.
Reply of the Chinese Government to the Ultimatum of the Japanese Government, delivered to the Japanese Minister by the Minister of Foreign Affairs on the 8th of May, 1915,
On the 7th of this month, at three o'clock P. M. the Chinese Government received an Ultimatum from the Japanese Government together with an Explanatory Note of seven articles. The Ultimatum concluded with the hope that the Chinese Government by six o'clock P. M. on the 9th of May will give a satisfactory reply, and it is hereby declared that if no satisfactory reply is received before or at the specified time, the Japanese Government will take steps she may deem necessary.
The Chinese Government with a view to preserving the peace of the Far East hereby accepts, with the exception of those five articles of Group V postponed for later negotiation, all the articles of Group I, II, III, and IV and the exchange of notes in connection with Fukien Province in Group V as contained in the revised proposals presented on the 26th of April, and in accordance with the Explanatory Note of seven articles accompanying the Ultimatum of the Japanese Government with the hope that thereby all the outstanding questions are settled, so that the cordial relationship between the two countries may be further consolidated. The Japanese Minister is hereby requested to appoint a day to call at the Ministry of Foreign Affairs to make the literary improvement of the text and sign the Agreement as soon as possible.
Thus ended one of the most extraordinary diplomatic negotiations ever undertaken in Peking.