The Japanese government debt outstanding is £300,000,000, as compared with China’s debt of £93,000,000, and Japan’s industrials have borrowed privately abroad an added £60,000,000. Japan’s Debt Annual in £. Interest. Due. 4% sterling £10,000,000 4½% sterling 29,750,000 4½% second series 29,750,000 4% 1905 Russia war 25,000,000 After 1921 5% 1906 Russia war, railways, ships, Manchuria, Korea, Formosa, Saghalien, etc. 183,000,000 5% 1907 11,500,000 After 1922 4% 1910 11,000,000 After 1920 ------------ Total Japan’s debt £300,000,000 £12,000,000 Total China’s debt 93,000,000 4,642,000 Total India’s debt 170,000,000 Great as is Japan’s debt, she can make heavy payments on it because she owns her railways, and can allot the railway surplus to the diminishing of the debt, which China and India can also do because of the nationalization of most of the railways. In April, 1912, the Lodge Resolution in the American Senate brought out the fact that a Japanese trans-Pacific steamship company, acting doubtless on behalf of the Japan forward party, had long been endeavoring to obtain from Mexico a strategic base on Magdalena Bay, which could, as a coaling station, threaten the whole Pacific coast. How would Japan like it if America obtained a coaling station in Manchuria? She and Russia compelled China to refuse America a railway franchise in Pechili in 1910.