the 28th Division to be reprimanded.

2. Officers responsible to be punished according to law. If the law
provides for severe punishment, such punishment will be inflicted.

3. Proclamations to be issued enjoining Chinese soldiers and
civilians in the districts where there is mixed residence to accord
considerate treatment to Japanese soldiers and civilians.

4. The Military Governor of Moukden to send a representative to Port
Arthur to convey his regret when the Military Governor of Kwantung
and Japanese Consul General at Moukden are there together.

5. A solatium of $500 (Five Hundred Dollars) to be given to the
Japanese merchant Yoshimoto.

But though the incident was thus nominally closed, and amicable
relations restored, the most important point--the question of Japanese
police-rights in Southern Manchuria and Eastern Inner Mongolia--was left
precisely where it had been before, the most vigorous Chinese protests
not having induced Japan to abate in the slightest her pretensions.
During previous years a number of Japanese police-stations and
police-boxes had been established in defiance of the local authorities
in these regions, and although China in these negotiations recorded her
strongest possible objection to their presence as being the principal
cause of the continual friction between Chinese and Japanese, Japan
refused to withdraw from her contention that they did not constitute any
extension of the principle of extraterritoriality, and that indeed
Japanese police, distributed at such points as the Japanese consular
authorities considered necessary, must be permanently accepted. Here
then is a matter which will require careful consideration when the
Powers meet to revise their Chinese Treaties as they must revise them
after the world-war; for Japan in Manchuria is fundamentally in no
different a position from England in the Yangtsze Valley and what
applies to one must apply to the other. The new Chinese police which are
being distributed in ever greater numbers throughout China form an
admirable force and are superior to Japanese police in the performance
of nearly all their duties. It is monstrous that Japan, as well as other
Powers, should act in such a reprehensible manner when the Chinese
administration is doing all it can to provide efficient guardians of the
peace.

[Illustration: The Famous or Infamous General Chang-Hsun, the leading
Reactionary in China to-