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COMUNIONE

may be so far reaching a nature that the Japanese might possibly. claim it prevents China from allowing a third Power to open any mine, or carry on any industry not only in the three provinces

+

of Hupeh, Aunan and Kwangsi, but alse in any other part of the

ublic.

Section IV. The same objection is made to the preamble of this article as has been raised to Article II of Section 1.

Article L. This article, if allowed to stand as drafted, may be construed by the Japanese as giving them the exclusive right to act as political, financial and military advisers to China, thus putting the Republic under Japanese tutelage and destroying her sovereign rights.

Such a situation could not be tolerated, in view of the large share of trade with China held by the other Treaty Powers and then great proportion of the national debt, to say nothing of the important British interests involving large capital sums invested in China which would be at stake.

Article II. lf granted similar ●ppostunity

must be given to other nationalities,

Article III. The same objectio n raised as

Article I of this section applies to this Article.

Article IV. The terms of this Article are not, it would appear, in accordance with "the most favoured nation" clause of our treaty with China.

Articles V and VI. If the Jpanese Government are permitted to construct the lines mentioned in Article V, they will be able to contrel the greater part of the Southern side of the Yangtse from the sea to Hankow, the valuable district on the shores of the Poyang lake, and thence through the whole length of Kiang-si te Swatow. The latter section will tend to still further strengthen their held on the province of Fuxien, the absorption of which provinse is foreshadowedz in Article VI.

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