The outbreak of the World War found Germany in possession of the leased area and in substantial control of the territory under the concession.  On August 15, 1914, the Japanese Government presented an ultimatum to the German Government, in which the latter was required “to deliver on a date not later than September 15 to the Imperial 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.”

On the German failure to comply with these demands the Japanese Government landed troops and, in company with a small British contingent, took possession of the leased port and occupied the territory traversed by the German railway, even to the extent of establishing a civil government in addition to garrisoning the line with Japanese troops.  Apparently the actual occupation of this Chinese territory induced a change in the policy of the Imperial Government at Tokio, for in December, 1914, Baron Kato, the Minister of Foreign Affairs, declared that the restoration of Tsingtau to China “is to be settled in the future” and that the Japanese Government had made no promises to do so.

This statement, which seemed in contradiction of the ultimatum to Germany, was made in the Japanese Diet.  It was followed up in January, 1915, by the famous “Twenty-one Demands” made upon the Government at Peking.  It is needless to go into these demands further than to quote the first to which China was to subscribe.

“The Chinese Government agrees that when the Japanese Government hereafter approaches the German Government for the transfer of all rights and privileges of whatsoever nature enjoyed by Germany in the Province of Shantung, whether secured by treaty or in any other manner, China shall give her full assent thereto.”

The important point to be noted in this demand is that Japan did not consider that the occupation of Kiao-Chau and the seizure of the German concessions transferred title to her, but looked forward to a future transfer by treaty.

The “Twenty-one Demands” were urged with persistency by the Japanese Government and finally took the form of an ultimatum as to all but Group V of the “Demands.”  The Peking Government was in no political or military condition to resist, and, in order to avoid an open rupture with their aggressive neighbor, entered into a treaty granting the Japanese demands.

China, following the action which the United States had taken on February 3, 1917, severed diplomatic relations with Germany on March 14, and five months later declared war against her announcing at the same time that the treaties, conventions, and agreements between the two countries were by the declaration abrogated.  As to whether a state of war does in fact abrogate a treaty of the character of the Sino-German Treaty of 1898 some question may be raised under the accepted rules of international law, on the ground