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Here it is necessary to remark that not only did Japan in her negotiations over the Twenty-one Demands force China to hand over the twelve million pounds of German improvements in Shantung province, but that Baron Hayashi, the present Japanese Minister to China, "has recently declared that Japan would demand from China a vast settlement or concession at Tsingtao, thus making even the alleged handing-back of the leased territory which Japan is pledged to force from Germany at the Peace Conference wholly illusory, the formula of a Settlement being adopted because twelve years' experience of Port Arthur has shown that territorial "leases," with their military garrisons and administrative offices, are expensive and antiquated things, and that it is easier to push infiltration by means of a multitude of Settlements in which police-boxes and policemen form an important element, than to cut off slices of territory under a nomenclature which is a clamant advertisement of disruptive aims.

During previous years a number of Japanese police-stations and police-boxes had been established in defiance of the local authorities in these regions, and although China in these negotiations recorded her strongest possible objection to their presence as being the principal cause of the continual friction between Chinese and Japanese, Japan refused to withdraw from her contention that they did not constitute any extension of the principle of extraterritoriality, and that indeed Japanese police, distributed at such points as the Japanese consular authorities considered necessary, must be permanently accepted.

Here it is necessary to remark that not only did Japan in her negotiations over the Twenty-one Demands force China to hand over the twelve million pounds of German improvements in Shantung province, but that Baron Hayashi, the present Japanese Minister to China, has recently declared that Japan would demand from China a vast settlement or concession at Tsingtao, thus making even the alleged handing-back of the leased territory which Japan is pledged to force from Germany at the Peace Conference wholly illusory, the formula of a Settlement being adopted because twelve years' experience of Port Arthur has shown that territorial "leases," with their military garrisons and administrative offices, are expensive and antiquated things, and that it is easier to push infiltration by means of a multitude of Settlements in which police-boxes and policemen form an important element, than to cut off slices of territory under a nomenclature which is a clamant advertisement of disruptive aims.

During previous years a number of Japanese police-stations and police-boxes had been established in defiance of the local authorities in these regions, and although China in these negotiations recorded her strongest possible objection to their presence as being the principal cause of the continual friction between Chinese and Japanese, Japan refused to withdraw from her contention that they did not constitute any extension of the principle of extraterritoriality, and that indeed Japanese police, distributed at such points as the Japanese consular authorities considered necessary, must be permanently accepted.