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.