WAR APPENDIX
the basis of good relation between Japan and Russia, and in addition with a view to protect the rights and interests of Japan, have given most careful and serious consideration to the reply of the Imperial Russian Government which was delivered by His Excellency Baron Rosen on the 6th instant. They have finally come to the conclusion that the following modifications are necessary, i.e:—
1.Suppression of the first clause of Article V of the Russian Counter-Proposals (presented to the Japanese Government through Baron Rosen, December nth) that is to say, "not to use any part of Corean territory for strategical purposes."
2.Suppression of the whole Article (VI) concerning establishment of a neutral zone.
3.The Russian proposal concerning Manchuria to be agreed to with the following modifications:
a. Recognition by Japan of Manchuria and its littoral as being outside her sphere of interest and an engagement on the part of Russia to respect the territorial integrity of China in Manchuria.
b.Russia within the limits of Manchuria will not impede Japan nor other Powers in the enjoyment of rights and privileges acquired by them under the existing treaties with China.
c.Recognition by Russia of Corea and its littoral as being outside her sphere of interest.
4.Addition of an Article to the following effect: Recognition by Japan of Russia's special interests in Manchuria and of the right of Russia to take measures necessary for the protection of those interests.
The grounds for these amendments having been frequently and fully explained on previous occasions, the Imperial Government do not think it necessary to repeat the explanations. It is sufficient here to express their earnest hope for reconsideration by the Imperial Russian Government.
It should be further remarked that the suppression of the clause excluding the establishment of settlements in Manchuria is desired because it conflicts with stipulations of the new Commercial Treaty between Japan and China. In this respect, however, Japan will be satisfied if she receives equal treatment with another Power which has already acquired similar rights in regard to settlements in Manchuria. The statement in the Russian reply that the Japanese Govern-
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