The New York herald., 1921-11-05
JAPAN'S SHANTUNG
PROPOSAL REJECTED
Remote From Hopes and Ex-
pectations, China Replies
in Note.

PEKIN, Nov. 4 (Associated Press) -
In 1000 word note the Chinese Gov
ernment has replied to the latest pro-
posals of the Japanese Government con-
corning the Shantung situation. II states
that the Japanese proposals are not ac-
ceptable.
The japanese memorandum to China
of October 10. the note declares, shows
an apparent misunderstanding and mis-
Interpretation Of the text OF the Chinese
note of October S, thereby necessitating
further statement by the Chinese Gov
ernment covering past facts and an
unchanged viewpoint on the part of
China"
"The summary of the Japanese Gov
ernment's proposed basis of settlement"
the memorandum continues. 'is alto
gether too remote from the hopes and
expectations of the Chinese Government
and people. who therefore are obliged
to await patiently an opportunity suit
able to Japan for a reconsideration of
her position.
The Chinese memorandum of October
points out the difference in views be-
tween China and Japan rega riding the
principles underlying the Japanese pro-
posals and the contents and terms
thereof II the Japanese Government
understood these differences she would
very surely have proposed a more sub
stantial and more just project, which
would universally be recognized as fair.
IT is most regrettable, however, that the
Japanese Government has given no sign
of concessions, while maintaining that
China openly is unwilling to proceed
with negotiations
China was unable to sign the ver-
sailles treaty owing to the Shantung
article, hence 1t is impossible to compel
her to recognize the effects arising from
the treaty regarding Shantung Japan
considers that the Kiao-Chau leasehold
was transferred to her by the operation
of the treaty. while China deems the
leasehold to have expired through her
declaration of war against Germany If
both countries insist on this difference
in viewpoint a solution of the problem
would be rendered forever impossible.
but since Japan is willing to restore
Kiao-ChAu completely to China, further
necessity for Japans insistence on the
point in the dispute does not exist.
Regarding the German declaration
concerning SnantunR: CHINA, when the
Chino-German commercial agreement
was negotiated. insisted on her demand
for the restoration of Kiao-Chau, but
Germany could only regret to China that
Germanys power for returning Kiao-
Chau had been lost through a force
majeure. which explanation China simply
acknowledged. Hence II Is serious
Misunderstanding for Japan to- construe
this incident as meaning China's recog-
milton of the Versailles treaty.
Indeed, China desires a fair settle
ment In the interest of her nationals and
the foreign Powers; but thus far Japan
has not presented its avowed concrete
and fair project. and hence China can
not define her attitude one way or the
other, finding the proposals of the sec
ond Japanese memorandum even more
difficult to accept"
The Chinese Government and news
papers incline to direct negotiations be-
tween the two countries and express the
hope that Japan soon will present
more acceptable formula for a settle
ment of the controversy. Washington
frequently Is suggested as the seat OF
the negotiations.