Mr. Griscom to Mr. Hay.

[Telegram.—Paraphrase.]

(Mr. Griscom transmits a statement from the minister for foreign affairs relating to the two points proposed by Russia, whose answer was received yesterday.

  • First. To maintain the stipulation relating to the establishment of the neutral zone as originally proposed by Russia; that is to say, neutralization of the Korean territory lying between Korea-Manchuria frontier and the thirty-ninth parallel north latitude.
  • Second. Regarding Manchuria the following stipulation is proposed by Russia: Japan to recognize that Manchuria is entirely outside her sphere of interest, and Russia not to impede in Manchuria the rights and privileges belonging to Japan and other powers under their existing treaties with China, exclusive of the establishment of foreign settlements.

Mr. Griscom reports that according to the minister’s statement the Japanese Government has not yet determined what stand it will take and that the serious consideration of the matter will consume several days. The minister called special attention to the provision excluding foreign settlements, and advanced the opinion that the same practically nullifies the agreement offered by Russia not to obstruct the rights of foreign powers in Manchuria which have been established by treaties, as the absence of foreign settlements would make it impossible for any foreigner to trade or reside in Manchuria.