Accompanying Ultimatum delivered to the Minister of Foreign Affairs
    by the Japanese Minister, May 7th, 1915.

1.  With the exception of the question of Fukien to be arranged by an exchange of notes, the five articles postponed for later negotiation refer to (a) the employment of advisers, (b) the establishment of schools and hospitals, (c) the railway concessions in South China, (d) the supply of arms and ammunition and the establishment of arsenals and (e) right of missionary propaganda.

2.  The acceptance by the Chinese Government of the article relating to Fukien may be either in the form as proposed by the Japanese Minister on the 26th of April or in that contained in the Reply of the Chinese Government of May 1st.  Although the Ultimatum calls for the immediate acceptance by China of the modified proposals presented on April 26th, without alteration but it should be noted that it merely states the principle and does not apply to this article and articles 4 and 5 of this note.

    3.  If the Chinese Government accept all the articles as demanded in
    the Ultimatum the offer of the Japanese Government to restore
    Kiaochow to China, made on the 26th of April, will still hold good.

4.  Article 2 of Group II relating to the lease or purchase of land, the terms “lease” and “purchase” may be replaced by the terms “temporary lease” and “perpetual lease” or “lease on consultation,” which means a long-term lease with its unconditional renewal.

    Article 4 of Group II relating to the approval of police laws and
    Ordinances and local taxes by the Japanese Council may form the
    subject of a secret agreement.

5.  The phrase “to consult with the Japanese Government” in connection with questions of pledging the local taxes for raising loans and the loans for the construction of railways, in Eastern Inner Mongolia, which is similar to the agreement in Manchuria relating to the matters of the same kind, may be replaced by the phrase “to consult with the Japanese capitalists.”

The article relating to the opening of trade marts in Eastern Inner Mongolia in respect to location and regulations, may, following their precedent set in Shantung, be the subject of an exchange of notes.

    6.  From the phrase “those interested in the Company” in Group III of
    the revised list of demands, the words “those interested in” may be
    deleted.

    7.  The Japanese version of the Formal Agreement and its annexes
    shall be the official text or both the Chinese and Japanese shall be
    the official texts.