NOTES TO BE EXCHANGED The Chinese Government agrees that no nation whatever is to be permitted to construct, on the coast of Fukien Province, a dockyard, a coaling station for military use, or a naval base; not to be authorized to set up any other military establishment. The Chinese Government further agrees not to use foreign capital for setting up the above mentioned construction or establishment. Mr. Lu, the Minister of Foreign Affairs, stated as follows:-- 1. The Chinese Government, shall, whenever, in future, it considers this step necessary, engage numerous Japanese advisers. 2. Whenever, in future, Japanese subjects desire to lease or purchase land in the interior of China for establishing schools or hospitals, the Chinese Government shall forthwith give its consent thereto. 3. When a suitable opportunity arises in future, the Chinese Government will send military officers to Japan to negotiate with Japanese military authorities the matter of purchasing arms or that of establishing a joint arsenal. Mr. Hioki, the Japanese Minister, stated as follows:-- As relates to the question of the right of missionary propaganda the same shall be taken up again for negotiation in future. An ominous silence followed the delivery of this document. The Chinese Foreign Office had already exhausted itself in a discussion which had lasted three months, and pursuant to instructions from the Presidential Palace prepared an exhaustive Memorandum on the subject. It was understood by now that all the Foreign Offices in the world were interesting themselves very particularly in the matter; and that all were agreed that the situation which had so strangely developed was very serious. On the 1st May, proceeding by appointment to the Waichiaopu (Foreign Office) the Japanese Minister had read to him the following Memorandum which it is very necessary to grasp as it shows how solicitous China had become of terminating the business before there was an open international break. It will also be seen that this Memorandum was obviously composed for purpose of public record, the fifth group being dealt with in such a way as to fix upon Japan the guilt of having concealed from her British Ally matters which conflicted vitally with the aims and objects of the Anglo-Japanese Alliance Treaty. MEMORANDUM Read by the Minister of Foreign Affairs to Mr. Hioki, the Japanese Minister, at a Conference held at Wai Chiao Pu, May 1, 1915.