struction 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
(Foreign Office) 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-alien