“On 15 June of this year 7,000 Kilometers of the estimated 11,000 kilometers of the railroad lines were under Japanese control. Now they are run by the South Manchurian Railway Co. The Japanese saw themselves forced to procure an ‘Ersatz’ because the Chinese could have taken with them nearly the entire rolling stock, and have ordered first of all 250 locomotives and 10,000 coahces in Japan. The orders went exclusively to Japan. It is to be expected that the future orders will also go to Japan and that we will lose the old Chinese railways as customers. “In addition to this the receipts of the Tientsin-Pukow line for the loans of 1908 and 1910 and the receipts of the Peking-Hangkow line for a number of middle termed delivery credits were mortgaged to us. These lines at present have no receipts. In order to maintain our rights, after the English had availed themselves of the use of the Tientsin-Pukow and Huknang loans from Japan on the 2nd of May of this year, we have demanded the same treatment for the Germany shares of these loans as well as the advance (670,000) on the Tientsin-Pukow lines. The Japanese Government up ot now has not answered this demand. “In the field of Chinese hydro-electricity the SIEMENS Company has had a leading position for many years. According to what the firm reports now, one can already clearly see today that Japan is not going to draw any non-Japanese firm in the future into the Chinese territories occupied by Japan, and that she is going to let the Nihon Deuslim Koji Kabushiki Kaisha (half national and half pertinent industry) carry out all supply and construction jobs. Examples of the Japanese advance already exist: