established, China shall be required guarantee the foreign Powers. full satisfaction in the conduct of their commerce and the tariff to be arranged must meet with the con sent of the different Powers.
In accordance with Article of the Washington Treaty, consent shall be given to a 24 per cent. inereaie and from 2 to 5 per cent. increase on luxuries. This increase will bring the Chinese Government approximately $80,000,000 annually.
yearly increase must be ized to regulate China's finances fard to pay her administrative ex-
With regard to the question of the regulation of finance a special readjustment must be made with retard to the question of unsecured The Nishihara Claims 3. Regarding the Nishiharal Loans and other loans amounting' to $300,000,000 a settlement must made at this time in the follow.
Ing: mann 'a. From the ist year of the crease to the 6th and thereafter up to 50 years from the date of the increase, the whole amount shall be paid off.
If China seeks a foreign loan, this additional revenue may to readjust ment but the Boxer Indeninity cannot be sacrificed.
'4. The additional revenue cannot be used for military purposes and on this question there must be a guarantee from the Chinese Government.
'5. With regard to the settlement of the different loans even treatment must be accorded all nations.
Japan's wishes for the increase of Japanese trade in China are More Japanese in Customs 1. The number of Japanese in the Customs service must be in-export duty materials must be abolished.
The internal customs revenue shall be reckoned with the customs Bank become a depository revenue and the Yokohama Specie
for the same, '4. It is hoped that the Chinese Government will sacrifice the following prohibitions 'a. Export of grains.
Control of mines.
5, The limitations on coastwise trade is to be abolished.
6. With regard to Chinese produce, China shall cancel the goods tax,' the consumption tax, machinery tax and manufactured goods tax.
'7. If China brings up the subject that she shall have supervision of the Customs Revenue, it is the desire of the Japanese Government that the Powers should not unreasonable in their attitude.
Regarding the abolition of likin and other illegal taxes, although the Japanese Government desires a speedy solution, it, must regard the abolition of the Tuchun system and the curtailment of the]
Army as more essen!
E. Regarding the Customs increase, if China is not satisfied with the conditions made, and desires to increase her tariff to 73. per cent. legally, Japan will protest and watch developments.
Trade With Korea F. With regard to overland trade, although Japan recognizes. the Shanghai internal revenue tax (transit tax?) it nevertheless must consider the importance of the position of Korea. Japan will demand a one-third exemption such as Great Britain enjoys for the overland trade from Burmah and France, from Annam. If Japan finds it difficult to settle this matter at the conference, it shall resort to the application' of the Most Favoured Nation Clause.
Text read from the printed page and cleaned; old type leaves the occasional error.