Through the great government-owned steamship line, the Toyo Kisen Kaisha, the Japanese Government controls the land for a Japanese coaling station at Manzanilla. At Acapulco a Japanese company holds a land concession on a high hill three miles from the sea. It is difficult to see what legitimate use a fishing company could make of this location. It is, however, an ideal site for a wireless station. In Mexico City an intimate friend of the Japanese Chargé d’Affaires owns a fortress-like building in the very heart of the capital. Another Japanese holds, under a ninety-nine year lease, an L-shaped strip of land partly surrounding and completely commanding the water works of the capital of Oxichimilco. The land is undeveloped. Both of these Japanese are well supplied with money and have been living in Mexico City for several years. Neither one has any visible means of support. And in all of the years of revolution in Mexico no Japanese have been killed—except by Villa. He has caused many of them to be executed, but always those that were masquerading as Chinese. Naturally a government cannot protest under such circumstances. These facts may or may not be significant. They serve to lend color to the convictions of anti-Japanese agitators in the United States, and as such they have been of value to Germany. Accordingly it was suggested to Señor Huerta that an alliance with Japan would be an excellent protective measure for him to take. Huerta had two reasons for looking with favor upon this proposal. He was very decidedly in the bad graces of Washington, and he was constantly menaced by the presence in Mexico of Felix Diaz, to whom he had agreed to resign the Presidency. Diaz was too popular to be shot, too strong politically to be exiled and yet—he must be removed. Here, thought Huerta, was an opportunity of killing two birds with one stone. He therefore sent Diaz to Japan, ostensibly to thank the Japanese Government for its participation in the Mexican Centennial celebration, three years before, but in reality to begin negotiations for a treaty which should follow the lines of the one unsuccessfully promulgated in 1911. Señor Diaz started for Japan—but he never arrived there. Somehow the State Department at Washington got news of the proposed treaty—how, only the German agents know—and Señor Diaz’s course was diverted.