[This Document is the Property of His Britannic Majesty's Government.]

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RECE

AFFAIRS OF CHINA. ·

18 JU

[June 3.]

CONFIDENTIAL.

SECTION 3.

[21476]

No. 1.

Mr. Rumbold to Sir Edward Grey.--(Received June 3.)

(No. 114. Confidential.) Sir,

Tokyo, May 8, 1911. I HAVE the honour to transmit to you herewith a précis by Mr. Hobart-Hampden of a leading article in the "Jiji Shimpo" of yesterday's date on the subject of Japanese rights and interests in Manchuria.* This article, as you will observe, has been written with especial reference to the recently concluded four-Power loan to China. The gist of the article is that Japan has large vested interests in Manchuria. Should the Chinese by themselves, or Chinese and foreigners together, as a result of the loan, embark on enterprises in Manchuria which prejudicially affect Japanese interests, without having first consulted the latter, their action might result in closing the open door in Manchuria. The paper thinks it well to put this warning on record in view of the failure of the Japanese Government to take action before the conclusion of the four-Power loan.

I asked the American Ambassador a few days ago what was his impression of the way in which the news of the conclusion of the loan had been received in Tokyo. His In view Excellency thought that there was no doubt that people here did not like it. of the large commercial and political interests Japan has in China it must seem strange both to the Japanese and Chinese that the former have not been admitted to participate in an operation of such considerable importance and magnitude. He thought that the Japanese Government were in a difficult position in this matter, and he wondered whether, in some way or other, the Japanese might not try to block the practical application of the loan by stirring up provincial agitation against its terms. I said that if they did this they would only lend colour to the ever-recurring suspicion that they had designs on Chinese territory.

Mr. O'Brien said that he had not mentioned the question to Marquis Komura.

I have, &c.

HORACE RUMBOLD.

* Not printed.

[2062 c-3]

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