vernment agreed that whenever, in future, the said company and the
Japanese capitalists should arrive at a satisfactory arrangement for
co-operation, China will give her assent thereto. Thus the interests
of the Japanese capitalists are amply safeguarded.

Although the demand in the fourth group asking for a declaration not
to alienate China's coast is an infringement of her sovereign
rights, yet the Chinese Government offered to make a voluntary
pronouncement so far as it comports with China's sovereign rights.
Thus, it is seen that the Chinese Government, in deference to the
wishes of Japan, gave a most serious consideration even to those
demands, which gravely affect the sovereignty and territorial rights
of China as well as the principle of equal opportunity and the
treaties with foreign Powers. All this was a painful effort on the
part of the Chinese Government to meet the situation--a fact of
which the Japanese Government must be aware.

As regards the demands in the fifth group, they all infringe China's
sovereignty, the treaty rights of other Powers or the principle of
equal opportunity. Although Japan did not indicate any difference
between this group and the preceding four in the list which she
presented to China in respect to their character, the Chinese
Government, in view of their palpably objectionable features,
persuaded itself that these could not have been intended by Japan as
anything other than Japan's mere advice to China. Accordingly China
has declared from the very beginning that while she entertains the
most profound regard for Japan's wishes, she was unable to admit
that any of these matters could be made the subject of an
understanding with Japan. Much as she desired to pay regard to
Japan's wishes, China cannot but respect her own sovereign rights
and the existing treaties with other Powers. In order to be rid of
the seed for future misunderstanding and to strengthen the basis of
friendship, China was constrained to iterate the reasons for
refusing to negotiate on any of the articles in the fifth group, yet
in view of Japan's wishes China has expressed her readiness to state
that no foreign money was borrowed to construct harbour work in
Fukien Province. Thus it is clear that China went so far as to see a
solution for Japan of a question that really did not