THE FAR EASTERN CRISIS



  (3) The League of Nations has no ultimate authority over Japan's
mandated territory. The supreme control of all the mandates belongs
to the allied council of five Powers, namely, Great Britain, the United
States, France, Italy, and Japan. Japan will continue to administer
the islands after it ceases officially to be a member of the League of
Nations in March, 1935.
  (4) Upon Japan's withdrawal from the League her obligation to
follow the League of Nations mandatory regulations will expire, but
Japan is willing as heretofore to send an annual report on its admin-
istration of the mandated islands to Geneva and to participate in
various meetings to be held from time to time regarding mandatory
questions.
  The Japanese Navy's firm determination to retain the South Sea
Islands under Japanese mandate at any cost was expressed on No-
vember 15 by Vice-Admiral Sankichi Takahashi, the newly appointed
Commander-in-Chief of the Combined Fleet, according to the Japan
Times of November 16, 1934. Interviewed by newspaper correspond-
ents, Admiral Takahashi is reported to have stated that the Japanese
Navy was thoroughly prepared against the eventuality that Powers
belonging to the League might attempt forcibly to remove these is-
lands from the jurisdiction of Japan.
  Respectfully yours,                           JOsEPH C. GREW


893.00/12915
The Consul General at Mukden (Ballantine) to the Charge in China
                            (Gauss) 48

No. 20                                MUKDEN, December 7, 1934.
  SIR: I have the honor to enclose for the Legation's consideration a
translation 49 made in this office of an item in the Hoten Mainichi of
December 6 regarding an alleged movement on the part of members
of the former North Eastern Army to establish the independence of
North China, embracing the provinces of Hopei, Shantung, Shansi,
Chahar, and Suiyuan.
  The item appears in large head lines in the most prominent place
in the news columns. The source of the news is ascribed to "a certain
quarter", which according to accepted convention refers to the mili-
tary authorities. The entire set up of the article bears the ear marks
of military inspiration.
  The translation is a rather free one, as the original is couched in
such vague language that the meaning in several places is obscure.

  48 Copy transmitted to the Department by the Consul General at Mukden in
his
despatch of December 7, 1934; received January 2, 1935.
  9 Not printed.



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