Art. III. Germany and China shall in the near future draw up a further agreement relative to the management of the railway by the Company, and all matters pertaining thereto shall be discussed and decided upon by these two countries alone. But the Chinese Government shall afford every facility to the Chino-German Company in the construction of the road, and it shall enjoy all the advantages and benefits extended to other Chinese-foreign companies operating in China. It is understood that the object of this agreement is solely the development of commerce, and in constructing this railroad there is no intention to unlawfully seize any land in the Province of Shantung.

Art. IV. The Chinese Government will allow German subjects to hold and develop mining property for a distance of thirty li from each side of those railways and along the whole extent of the lines. The following places where mining operations may be carried on are particularly specified: Weihsien and Poshan along the line of the northern railway from Kiaochow to Tsinan, and Ichow, Laiwuhsien, etc., along the southern or Kiaochow-Ichow-Tsinan line. Both German and Chinese capital may be invested in these mining and other operations, but as to the rules and regulations relating thereto, this shall be left for future consideration. The Chinese Government shall afford every facility and protection to German subjects engaged in these works, just as provided for above in the article relating to railway construction, and all the advantages and benefits shall be extended to them that are enjoyed by the members of other Chineseforeign companies. The object in this case is also the development of commerce solely.

And Section III, relating to "Commercial Operations in Shantung," reads as follows:

The Chinese Government binds itself in all cases where foreign assistance, in persons, capital or material, may be needed for any purpose whatever within the Province of Shantung, to offer the said work or supplying of materials in the first instance to German manufacturers and merchants engaged in undertakings of the kind in question. In case German manufacturers or merchants are not inclined to undertake the performance of such works, or the furnishing of materials. China shall then be at liberty to act as she pleases.

As a result of Japan's ultimatum of May 7, 1915, China signed on May 25 and ratified on June 8, 1915, the following Treaty respecting the Province of Shantung: *

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Article I. The Chinese Government agrees to give full assent to all matters upon which the Japanese Government may hereafter agree with the German Government relating to the disposition of all rights, interests and concessions which Germany, by virtue of treaties or otherwise, possesses in relation to the Province of Shantung.

4 Hornbeck, Contemporary Politics in the Far East, p. 332.

Art. II. The Chinese Government agrees that as regards the railway to be built by China herself from Chefoo or Lungkow to connect with the KiaochowTsinanfu railway, if Germany abandons the privilege of financing the ChefooWeihsien line, China will approach Japanese capitalists to negotiate for a loan.

Art. III. The Chinese Government agrees in the interest of trade and for the residence of foreigners, to open by China herself as soon as possible certain suitable places in the Province of Shantung as Commercial Ports.

Art. IV. The present treaty shall come into force on the day of its signature.

On the same date (June 8, 1915), in an Exchange of Notes between the two Governments, Japan agreed to restore the leased territory of Kiaochow Bay to China on these conditions:

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1. The whole of Kiaochow Bay to be opened as a Commercial Port.

2. A concession under the exclusive jurisdiction of Japan to be established at a place designated by the Japanese Government.

3. If the foreign Powers desire it, an international concession may be established.

4. As regards the disposal to be made of the buildings and properties of Germany and the conditions and procedure relating thereto, the Japanese Government and the Chinese Government shall arrange the matter by mutual agreement before the restoration.

During the recent discussions as to the disposal of Japan's conquests made during the war at the Paris Peace Conference, it came to light that Great Britain, France, Italy, and Russia, by an Exchange of Notes with Japan in February, 1919, had agreed to "support Japan's claims in regard to the disposal of Germany's rights in Shantung and possessions in the islands north of the equator on the occasion of the Peace Conference."

The above are the main official documents on which the rights and privileges that Japan has acquired in Shantung will be based. They are thus summarized by one of the leading authorities on contemporary politics in the Far East:

The territory leased to Germany in March, 1898, included the Bay of Kiaochow and its immediate environment, some 400 square miles in all, to be held and administered by Germany for 99 years. In the immediate hinterland a neutral zone involving some 2,500 square miles was established. Germany was given the right to build two lines of railway in the province and to open mines along the lines; also a guaranty that German capital, assistance, and materia's 5 Hornbeck, op. cit., pp. 333-334.

6 See New York Times, April 22, 1919. The above citation is from the British note.

should be sought first in case the Chinese chose to develop the province with foreign aid.7

Upon the question of the obligation of Japan, whether moral or legal, to restore Kiaochow to China, we do not propose to enter. Indeed, it does not seem to us particularly important. Even if the so-called "restoration" be made, it will probably be upon such conditions as would leave Japan in virtual or actual political and economic control of the Shantung Province, and therefore with a firm grip on China. As a distinguished Chinese politician and diplomatist has expressed it, "she (Japan) will give us back the shells and keep the oysters.''8

AMOS S. HERSHEY.

THE PEACE NEGOTIATIONS WITH GERMANY1

"It is neither the time nor the place for superfluous words. The time has come when we must settle our account. In this plain, curt, business-like language, the negotiations for the restoration of peace, requested by the German Government of the President of the United States on October 6, 1918, were opened by Premier Clemenceau at Versailles on May 7, 1919.

The time was the fourth anniversary of the sinking of the Lusitania, and the place was the scene of Germany's peace of conquest, dictated to France in 1871. Perhaps the long series of barbarous crimes on land and sea of which the former event was merely typical and the ineffaceable memory of the half century of injustice which the latter event meant to France, inspired the language of the veteran French statesman who acted as spokesman for the twenty-seven nations, great and small, which Germany's unsuccessful attempt to repeat her triumphs of conquest of 1871 on a more ambitious scale in 1914-1918 had forced into the war of self-defense against her. Undoubtedly M. Clemenceau's words were intended to impress upon the German delegates that the terms of peace to be presently handed to them, which had been formulated and agreed upon by the Allied and

7 Hornbeck, op. cit., p. 295.

8 Dr. C. T. Wang, in The Outlook, June 25, 1918.

1 Except where otherwise stated, the quotations and other references to documents are taken from the English translations appearing in the New York Times Current History for June, July and August, 1919.

Associated Powers after months of arduous deliberations, were substantially final, and that Germany must be prepared without dicker or barter to settle the account which the outraged world had found to be due from her. "This second treaty of Versailles," continued M. Clemenceau, "has cost us too much not to take on our side all the necessary precautions and guarantees that the peace shall be a lasting one."

He informed the German plenipotentiaries that "no oral discussion is to take place and the observations of the German delegation will have to be submitted in writing." Every facility and the time necessary to examine the conditions would be granted, he stated, and the Allies were ready to give any explanations desired and to receive any observations the Germans might have to offer; but they would have a maximum period of two weeks in which to present written observations on the treaty.

On behalf of the German delegation, Count von BrockdorffRantzau read a prepared reply in which it was denied that Germany was solely responsible for the war and that the crimes of war were confined to Germany and her allies. Confessing that Germany's military power had been broken, the chief German delegate stated that he relied for a peace of justice upon President Wilson's principles, which, by their acceptance as the basis of negotiations, had become binding upon both parties to the war.

The proceedings were then closed and the plenipotentiaries did not meet again until the formal signature of the treaty on June 28.

In less than 400 spoken words, Premier Clemenceau had presented to Germany the draft of a treaty of peace which, according to a semiofficial summary given out at Paris, is the longest treaty ever drawn.2 It totals about 80,000 words divided into fifteen main sections and represents the combined product of over a thousand experts working continually through a series of commissions for the three and a half months from January 18. The treaty is printed in parallel pages of English and French, which are recognized as having equal validity. It does not deal with questions affecting Austria, Bulgaria and Turkey except in so far as binding Germany to accept any agreement reached with those former allies.

2 The draft treaty had been submitted to and approved by the Preliminary Peace Conference of the Allied and Associated Powers at Paris, in plenary session, on May 6, 1919.

Following the preamble and deposition of Powers comes the Covenant of the League of Nations as the first section of the treaty. The frontiers of Germany in Europe are defined in the second section; European political clauses given in the third; and extra-European political clauses in the fourth. Next are the military, naval, and air terms as the fifth section, followed by a section on Prisoners of War and Military Graves and a seventh on Responsibilities. Reparations, financial terms, and economic terms are covered in sections eight to ten. Then comes the Aeronautic section, ports, waterways, and railways section, the Labor Covenant, the section on guarantees, and the final clauses.

Germany, by the terms of the treaty, restores Alsace-Lorraine to France, accepts the internationalization of the Saar Basin temporarily and of Danzig permanently, agrees to territorial changes towards Belgium and Denmark and in East Prussia, cedes most of Upper Silesia to Poland, and renounces all territorial and political rights outside of Europe, as to her own or her allies' territories, and especially as to Morocco, Egypt, Siam, Liberia, and Shantung. She also recognizes the total independence of German Austria, Tehecho-Slovakia, and Poland.

Her army is reduced to 100,000 men including officers; conscription within her territories is abolished; all forts fifty kilometers east of the Rhine razed; and all importation, exportation and nearly all production of war material stopped. Allied occupation of parts of Germany will continue till reparation is made, but will be reduced at the end of each of three five-year periods if Germany is fulfilling her obligations. Any violation by Germany of the conditions as to the zone 50 kilometers east of the Rhine will be regarded as an act of war.

The German navy is reduced to six battleships, six light cruisers, and twelve torpedo-boats, without submarines and with a personnel of not over 15,000. All other vessels must be surrendered or destroyed. Germany is forbidden to build forts controlling the Baltic, must demolish Heligoland, open the Kiel Canal to all nations, and surrender her fourteen submarine cables. She may have no military or naval air forces except 100 unarmed seaplanes until October 1st to detect mines, and may manufacture no aviation material for six months.

Germany accepts full responsibility for all damages caused to