On the 19th of June (July 2, N. S.) the council decided that the occupation of the whole of Korea, or even of the northern part, would be unprofitable to Russia, and therefore undesirable. Our activity in the basin of the Yalu, moreover, might give Japan reason to fear a seizure by us of the northern part of the peninsula. On the 24th of June (July 7, N. S.) the council invited Actual State Councillor Balasheff and Lieutenant Colonel Madritoff, of the General Staff, to appear before it, and explain the status of the Yalu enterprise. From their testimony it appeared that the business was legally organized, the company holding permits from the Chinese authorities to cut timber on the northern side of the Yalu, and a concession from the Korean Government covering the southern side. Although the enterprise lost, to some extent, its provocative character, after the conclusions of the St. Petersburg council of April 5, 1903 (April 18, N. S.) became known in the province of Kwang-tung, its operations could not yet be regarded as purely commercial. Its affairs were managed by Lieutenant Colonel Madritoff, of the General Staff, although that officer was not officially in service. After consideration of all the facts presented, the members of the council came to the conclusion that "although the Russian Timber Company really appears to be a commercial organization, its employment of officers of the active military service to do work that has military importance undoubtedly gives to it a politico-military aspect." The council, therefore, acknowledged the necessity of "taking measures, at once, to give the enterprise an exclusively commercial character, to exclude from it officers of the regular army, and to commit the management of the timber business to persons not employed in the service of the Empire." On the 24th of June (July 7, N. S.) these conclusions were signed by all the members of the council, including State Councillor Bezobrazoff. It is evident, from the facts above set forth, that the statement in which M. Roslavleff charges the members of the council with signing minutes of proceedings that gave the Bezobrazoff adventure a place among useful imperial enterprises is fiction. Upon what it was based we do not know. The duty of immediately carrying into effect the conclusions of the council rested upon Admiral Alexeieff, by virtue of the authority given to him. The thing that he had to do, first of all, and that he was fully empowered to do, was to recall our force from Feng-wang-cheng and the company of chasseurs from the Yalu. Why this was not done I do not know. Personally, I did not allow Lieutenant Colonel Madritoff to continue his connection with the timber company as an officer of the General Staff, and I may add that he and other officers who associated themselves with the enterprise did so without consulting me.