2. China agrees to recognize Japan's privileged position in South
Manchuria and Inner Mongolia and to cede the sovereign rights of
these regions to Japan to enable her to carry out a scheme of
local defence on a permanent basis.
3. After the Japanese occupation of Kiaochow, Japan shall acquire
all the rights and privileges hitherto enjoyed by the Germans in
regard to railways, mines and all other interests, and after peace
and order is restored in Tsingtao, the place shall be handed back
to China to be opened as an International Treaty port.
4. For the maritime defence of China and Japan, China shall lease
strategic harbours along the coast of the Fukien province to Japan
to be converted into naval bases and grant to Japan in the said
province all railway and mining rights.
5. For the reorganization of the Chinese army China shall entrust
the training and drilling of the army to Japan.
6. For the unification of China's firearms and munitions of war,
China shall adopt firearms of Japanese pattern, and at the same
time establish arsenals (with the help of Japan) in different
strategic points.
7. With the object of creating and maintaining a Chinese Navy,
China shall entrust the training of her navy to Japan.
8. With the object of reorganizing her finances and improving the
methods of taxation, China shall entrust the work to Japan, and
the latter shall elect competent financial experts who shall act
as first-class advisers to the Chinese Government.
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