File No. 793.94/276.

[Untitled]

The Japanese at the conference held yesterday adopted an attitude of uncompromising exigence, the Minister stating that as the Chinese are now fully aware of the Japanese demands further discussion of the details is unnecessary and China is now expected to make categorical answer and be prepared for the consequences of refusal.

The demands as to the right of residence in the interior of Manchuria in addition to the opening of seventeen treaty ports there also those concerning Han-yeh-ping and the right of Buddhist propaganda were insisted upon in toto. The Chinese fear injection of political intrigue into the entire Buddhist system of China.

The most serious matter is the insistence of Japan upon the second portion of Han-yeh-ping demand, the effect of which would be to give Japanese interests the right of veto over competitive mining developments in the Yangtze region.

An ultimatum backed by force is momentarily expected.

Reinsch.