Peking, Oct. 3.
The Japanese military authorities are taking over the Shantung Railway to-day between Tsinanfu and Weihsien.
China's reply to the first Japanese. Note refused the request made by Japan and contended that there was. no connexion between the Tsingtao fortress and the railway outside German leased territory.
The Japanese point out that, from a strategical point of view, they could not allow the Germans to continue to hold and operate the railway in their rear during the siege of Tsingtao.
The Japanese reply to the last]; Chinese Note is as follows The Shantung Railway Concession is based upon a concession granted to the German Government in the Treaty signed between China and Germany in 1898. It is purely a German company and is in the nature of a public' property directly controlled by the German Government. In reality it is part of the leased territory of Kiaochou, being an extension thereof, while, according to the company's rules of association and the charter granted by the German Government, under which it is worked, it is a German company.
The above facts are indisputable and, in view of the manner in which the railway is worked, it is impossible to divide it up. The fact' that a nection of the line to the westward of Weihsien is within neutral territory cannot alter the original German status of the railway.
"The Japanese Government, having in view the complete demolition of the enemy's base at Tsingtao, in ance of its declaration of against Germany, is quite justified in taking possession of and controlling the railway as it constitutes an indivisible part of the leased territory of Tsingtao. Japan is entitled to do so without referring the matter to the Chinese Government, but in order to avoid a misunderstanding and the danger of a flict with the local authorities, Japan has acquainted China of her intentions, requesting China to make such arrangements as will allow this to be done without delay."
Text read from the printed page and cleaned; old type leaves the occasional error.