phrase "to consult with the Japanese capitalists."

The article relating to the opening of trade marts in Eastern Inner
Mongolia in respect to location and regulations, may, following
their precedent set in Shantung, be the subject of an exchange of
notes.

6. From the phrase "those interested in the Company" in Group III of
the revised list of demands, the words "those interested in" may be
deleted.

7. The Japanese version of the Formal Agreement and its annexes
shall be the official text or both the Chinese and Japanese shall be
the official texts.

Whilst it would be an exaggeration to say that open panic followed the
filing of this document, there was certainly very acute alarm,--so much
so that it is to-day known in Peking that the Japanese Legation cabled
urgently to Tokio that even better terms could be obtained if the matter
was left to the discretion of the men on the spot. But the Japanese
Government had by now passed through a sufficiently anxious time itself,
being in possession of certain unmistakable warnings regarding what was
likely to happen after a world-peace had come,--if matters were pressed
too far. Consequently nothing more was done, and on the following day
China signified her acceptance of the Ultimatum in the following terms.

_Reply of the Chinese Government to the Ultimatum of the Japanese
Government, delivered to the Japanese Minister by the Minister of
Foreign Affairs on the 8th of May, 1915._

On the 7th of this month, at three o'clock P.M. the Chinese
Government received an Ultimatum from the Japanese Government
together with an Explanatory Note of seven articles. The Ultimatum
concluded with the hope that the Chinese Government by six o'clock
P.M. on the 9th of May will give a satisfactory reply, and it is
hereby declared that if no satisfactory reply is received before or
at the specified time, the Japanese Government will take steps she
may deem necessary.

The Chinese Government with a view to preserving the peace of the
Far East hereby accepts, with the exception of those five articles
of Group V postponed for later negotiation, all the articles of
Group I, II, III, and IV and the exchange of notes in connection
with Fukien Province in Group V as contained in the revised
proposals presented on the 26th of April, and in accordance with the
Explanatory Note of sev