Book: The Fight For The Republic in China

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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 Minster.

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 I. 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. (Changed to an exchange of notes.)

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 Lungkow 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.

(Supplementary Exchange of Notes)

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[15]

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 passports 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

(To be Exchanged by Notes)

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, nor 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 to-day 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 their 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 (a) the employment of advisers, (b) the establishment of
schools and hospitals, (c) the railway concessions in South China,
(d) the supply of arms and ammunition and the establishment of
arsenals and (e) 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 to-day 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.

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