The fate of that section of the Eastern Chinese Railway between Harbin and Pogranichnaya cannot be foreseen. If the Japanese establish themselves at Harbin, it may be disposed of in the same manner as the southern section, or the Russian authorities may have running powers over it, or it may be allowed to remain wholly in the hands of Russia--since it connects with the Ussuri railway which has one terminus at Vladivostok, and the other at Khabarovsk on the River Amur. For obvious reasons, I think Japan will endeavour to obtain and keep control of this eastern section, and of the Ussuri railway. Should she do this the Russian terminus of the Trans-Siberian Railway will be Harbin, unless the northern, original route be continued and the line prolonged eastward from Stretensk on the Shilka. Russia will be asked to relinquish the Island of Saghalien--taken from Japan when she was a weak power--the Aleutian, Prybilov, and other sealing islands of the north Pacific. These Japan wishes to have absolutely, valuing them higher than a foothold upon the mainland of Siberia. Japan would also like to occupy permanently the port, harbour, and works at Vladivostok, which she considers to be of greater value to her than is Port Arthur. In short, Japan wishes to possess, or dominate, every place which Russia might eventually utilize as a naval base. More than this, Japan is determined to be the naval power of the East Pacific, and should Russia ever possess a fighting navy, Japan intends to make it impossible for that navy to have any permanent establishment in the Far East. It is for this reason, the blocking of Russia from approaches to ice-free water and the eastern seas, that Japan may find it necessary to hold Harbin and dominate the lower reaches of the Amur, and the Ussuri province. Another point upon which Japan will insist is the opening up of Manchuria to foreign trade. She will require of China, as a condition precedent to handing over the territory, that at every place along the railway lines and rivers at which Russia has, or had, settlements, foreigners shall be free to reside and to carry on their calling, as in the treaty ports. This has already been made known to China. As usual the Chinese authorities demur to concede this, but Japan remains firm; she will insist, and if necessary she will defy China, occupying and administering the country, and dare China to turn her out by force of arms.