privileged position in South Manchuria and Inner Mongolia and to cede the sovereign rights of these regions to Japan to enable her to carry out a scheme of local defence on a permanent basis.

3.  After the Japanese occupation of Kiaochow, Japan shall acquire all the rights and privileges hitherto enjoyed by the Germans in regard to railways, mines and all other interests, and after peace and order is restored in Tsingtao, the place shall be handed back to China to be opened as an International Treaty port.

4.  For the maritime defence of China and Japan, China shall lease strategic harbours along the coast of the Fukien province to Japan to be converted into naval bases and grant to Japan in the said province all railway and mining rights.

    5.  For the reorganization of the Chinese army China shall entrust
    the training and drilling of the army to Japan.

6.  For the unification of China’s firearms and munitions of war, China shall adopt firearms of Japanese pattern, and at the same time establish arsenals (with the help of Japan) in different strategic points.

    7.  With the object of creating and maintaining a Chinese Navy, China
    shall entrust the training of her navy to Japan.

8.  With the object of reorganizing her finances and improving the methods of taxation, China shall entrust the work to Japan, and the latter shall elect competent financial experts who shall act as first-class advisers to the Chinese Government.

9.  China shall engage Japanese educational experts as educational advisers and extensively establish schools in different parts of the country to teach Japanese so as to raise the educational standard of the country.

    10.  China shall first consult with and obtain the consent of Japan
    before she can enter into an agreement with another Power for making
    loans, the leasing of territory, or the cession of the same.

From the date of the signing of this Defensive Alliance, Japan and China shall work together hand-in-hand.  Japan will assume the responsibility of safeguarding Chinese territory and maintaining the peace and order in China.  This will relieve China of all future anxieties and enable her to proceed energetically with her reforms, and, with a sense of territorial security, she may wait for her national development and regeneration.  Even after the present European War is over and peace is restored China will absolutely have nothing to fear in the future of having pressure brought against her by the foreign powers.  It is only thus that permanent peace can be secured in the Far East.

But before concluding this Defensive Alliance, two points must first be ascertained and settled, (1) Its bearing on the Chinese Government. (2) Its bearing on those Powers having intimate relations