admit of
negotiation. Was there, then, evasion, on the part of China?

Now, since the Japanese Government has presented a revised list of
demands and declared at the same time, that it will restore the
leased territory of Kiaochow, the Chinese Government reconsiders the
whole question and herewith submits a new reply to the friendly
Japanese Government.

In this reply the unsettled articles in the first group are stated
again for discussion.

As regards the second group, those articles which have already been
initialled are omitted. In connection with the question of inland
residence the police regulation clause has been revised in a more
restrictive sense. As for the trial of cases relating to land and
lease contracts the Chinese Government now permits the Japanese
Consul to send an officer to attend the proceedings.

Of the four demands in connection with that part of Eastern Inner
Mongolia which is within the jurisdiction of South Manchuria and the
Jehol intendency, China agrees to three.

China, also, agrees to the article relating to the Hanyehping
Company as revised by Japan.

It is hoped that the Japanese Government will appreciate the
conciliatory spirit of the Chinese Government in making this final
concession and forthwith give her assent thereto.

There is one more point. At the beginning of the present
negotiations it was mutually agreed to observe secrecy but
unfortunately a few days after the presentation of the demands by
Japan an Osaka newspaper published an "Extra" giving the text of the
demands. The foreign and the Chinese press has since been paying
considerable attention to this question and frequently publishing
pro-Chinese or pro-Japanese comments in order to call forth the
World's conjecture--a matter which the Chinese Government deeply
regrets.

The Chinese Government has never carried on any newspaper campaign
and the Chinese Minister of Foreign Affairs has repeatedly declared
this to the Japanese Minster.

In conclusion, the Chinese Government wishes to express its hope
that the negotiations now pending between the two countries will
soon come to an end and whatever misgivings foreign countries
entertain toward the present situation may be quickly dispelled.

The Peking Government, although fully aware of the perils now
confronting