“Fourth. Stripped of all words that befog the issue, would we not, under the guise of making a treaty with Germany, really be making a treaty with Japan by which we compel one of our Allies (China) to cede against her will these things to Japan?  Would not this action be really more unjustifiable than the one which you have refused to be a party to on the Dalmatian Coast?  Because, in the latter case, the territory in dispute did not belong to one of the Allies, but to one of the Central Powers; the question in Dalmatia is as to which of two friendly powers we shall give territory taken from an enemy power; in China the question is, shall we take certain claimed rights from one friendly power in order to give them to another friendly power.

“It would seem to be advisable to call particular attention to what the Japanese mean when they say that they will return Kiao-chow to China.  They do not offer to return the railway, the mines or the port, i.e., Tsingtau.  The leased territory included a portion of land on the north-east side of the entrance of the Bay and another on the south-west and some islands.  It is a small territory.  The 50 Kilometer Zone was not included.  That was a limitation put upon the movement of German troops.  They could not go beyond the boundary of the zone.  Within this zone China enjoyed all rights of sovereignty and administration.

“Japan’s proposal to abandon the zone is somewhat of an impertinence, since she has violated it ever since she took possession.  She kept troops all along the railway line until recently and insists on maintaining in the future a guard at Tsinan, 254 miles away.  The zone would restrict her military movements, consequently she gives it up.

“The proposals she makes are (1) to open the whole bay.  It is from 15 to 20 miles from the entrance to the northern shore of the bay. (2) To have a Japanese exclusive concession at a-place to be designated by her, i.e., she can take just as much as she likes of the territory around the bay.  It may be as large as the present leased territory, but more likely it will include only the best part of Tsingtau.  What then does she give up?  Nothing but such parts of the leased territory as are of no value.

“The operation then would amount chiefly to an exchange of two pieces of paper—­one cancelling the lease for 78 years, the other granting a more valuable concession which would amount to a permanent title to the port.  Why take two years to go through this operation?

   “If it be right for a policeman, who recovers your purse, to keep the
   contents and claim that he has fulfilled his duty in returning the
   empty purse, then Japan’s conduct may be tolerated.

   “If it be right for Japan to annex the territory of an Ally, then it
   cannot be wrong for Italy to retain Fiume taken from the enemy.