The Birmingham age-herald., 1915-05-02
Far-Reaching Group V" of Japan's Demands Are Re- jected in Their Entirety, Says Peking Report
ACTION CAUSES
 LITTLE SURPRISE
 IN UNITED STATES
Bryan Refuses Comment,
 But Is Believed to Be Working for Amicable Ad- justment of Negotiations

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 Picking, May 2.-(2:3o a. m.)--China has replied to the Japanese demands in a note, which, while complying with some of them, definitely refuses 10 accede to others, including the most important, embodied in what is known as group five.
 China also has furnished to the Jan anese minister, Ekl HioSi, list of fur ther concessions which she is willing to- grant. but after perusing the note and the list. NJ Hiolsi declared 1t was far from complying with the 2i demands as presented by Japan
 This action was taken after President Yuan Shi Kai had thoroughly discussed the entire situation with his cabinet and his advisers, The Chinese plenipoten- tiaries met the Japanese plenIpotentiariez( on Saturday at the foreign office presented Ghina's reply. which, in stance, refused the so-called general mands of Japan. M Hiold asked whet these were Chinas maximum concessl and then. whether he should cable government
 l.u Cheng Hsiang. Chinese foreign mi ister, replied that these were China maximum concessions and that the Ja anese minister could so inform his ga 
 May Appeal to Powers
 The conference terminated with neither the Japanese nor Chinese asking for and other meeting. Should Japan now prel sent an ultimatum or occupy further ter-# ritory in China, it is ntimated that the* Chinsse probably would appeal to thes tour pe'Tvrsswhich are rleossd to China s 
 The Chinese note briefly recitss : .de history of the negotiations. It denS Japans charge that China has displayed rrocrastinaton and delayed the confer- ences by disputlng various points and also the charges of Chinese insIncerity and unfriendllness. It further denies that China is conducting n newspaper cam. paign abroad. These were the req sons the Japanese plenipotentiaries gave for presenting their latest list of 24 demands as q preliminary to an ultimatum.
 The list of concessions Is In the nature of counter proposals China asks tho right to participate in an international conference in which the altered ststuS of shantung will be rearranged; indcmni ty for losses incurred in conscqueuce e& the Tsingtau campaIgn and also fesforn fion of it's status as before the war These three requests are repeated from China's| original counter proposals.
 Fr;aher Concessions
 China orers further concessions with|
  Japanese demands. China cedes to fhre| Of the four demands regarding MonscIi the opening of treaty ports. preferenc in railway loans and the nonpiedginw local taxes. The agricultural demand rejected.
 Respecting the Hanyehping compa China agrees that. pending the even formation of chino-Japanesc conlI the government cannot make the pany state-owned or borrow foreign ital for the repayment of the Japan loan. The Chinese understand that acceptable to Japan.
 China rejects the fifth group. with exception of the modified Fukien dema offering In this connection separs note, intended to meet Japan's wish by pledging that no foreigners sbalI ceIve coastal expressions or contrsc without Japan's consent. <
 Group five comprises seven articles rd lating to the employment by China Japanese as advisors in political flnan| cial and military affairs; supervision 00 the Chinese police. the right of Japans5 ese ownership of land; Japanese supf vision over the manufacture or purchal by China of munitions of war: varidI railway and mining rights, and the rlsfl, by the Japanese to propagate Buddhisu In China.
 Lu Cheng- Hsiang informed M Hiokl' at the conference yesterday that the quo- tations embodied in .Iapan's revised de- mands were composed of words and state- ments of which he had made use in the course of his explanations as to why China could not consider group five, tho Japanese minister having requested sucIl explanations. Tsu Cheng- Hsiang added that. as a fundamental mlslinderstanding existed the plenipotentiaries had better say nothing further concerning group five.
 M IIiolSi made inquiry regarding the absence of railway concessions. to which the Chinese foreign minister replied that China's good faith was at stake. as nho had already granted definite concessiono to another power.
 Causes No Surprise
 Washington, May l.--Rejection by China of the so-called general group or the JApaneh6 OeInduuS occdsloheO Att- tie surprise in official quarters here.
 While the railway and mining con-. sessions sought pertaining directly tn certain local sections of China in witch the Japanese are endeavoring to es- tablish a sphere of influence. have been regarded as not difficult of adjustment. the article in Group have besn looked upon since the beginning by the Chinese as most vital to the main- tenance of the territorial integrity and sovereignty of China.
 China early in February practically rejected the same demands by refusing to discuss them. Their reappearance in a modified form was believed by tho Japapese to offer a basis for compro- mise; but china's action today indi- cates her unwillingness to admit the articles to discussion even under modl | hcation.
 Observers here did not believe that c crisis had been reached; but that with the expression by each side of its e1>. treme posttion. the way would bo
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