ation 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 Railw