"(2) To deliver on a date not later than September 15 to the Japanese authorities, without condition or compensation, the entire leased territory of Kiao-chau, with a view to the eventual restoration of the same to China. "The Japanese Government announces at the same time that in the event of its not receiving by noon on August 23, 1914, an answer from the German Government signifying unconditional acceptance of the above advice offered by the Japanese Government, Japan will be compelled to take such action as it may deem necessary to meet the situation." [Illustration: Kiao-Chau (Tsing-Tau).] The intervention of Japan in the war, welcome as it was to Great Britain, created special problems for that empire. The British in China, and the people of Australia, New Zealand, and western North America had long been uneasy regarding the commercial and political policy of Japan. On the Pacific Coast of the United States and Canada a strong anti-Japanese sentiment had developed. British statesmen were apprehensive lest the entry of Japan into the war might be used to alienate American sympathy from the Allies and diminish the zeal of the Canadian and Australasian colonies for the war. To meet this situation, the British Government issued a formal statement which said: "It is understood that the action of Japan shall not extend to the Pacific Ocean beyond the China Sea, except in so far as it may be necessary to protect Japanese shipping lines in the Pacific, nor beyond Asiatic waters westward of the China Seas, nor to any foreign territory except territory in German occupation on the continent of eastern Asia." This declaration went far toward allaying uneasiness, especially in the United States. The Japanese people accepted the situation calmly. There were few noisy demonstrations. Germans living in Japan were not molested, notwithstanding the action of Germany, which immediately after the ultimatum was issued arrested every Japanese subject in Germany and seized funds of the Japanese Government deposited in the Deutsche Bank of Berlin. In Tokyo the chief of police told the people that although the two Governments had entered into hostilities, the people individually were not to cultivate hostility. The German Ambassador remained at the Japanese capital until August 30, 1914. A number of Germans who decided to stay in Japan were allowed to continue their regular occupations. When no answer came from Germany up to the time of the expiration of Japan's ultimatum, the imperial rescript declaring the existence of a state of war was issued next day. The emperor said: "We hereby declare war against Germany and we command our army and navy to carry on hostilities against that empire with all their strength, and we also command all our competent authorities to make every effort in pursuance of their respective duties to attain the national aim within the limit of the law of nations.