"(3.) On the preservation of the full freedom of navigation of the Straits of Korea.
"The project elaborated in this sense did not satisfy the Japanese Government, which in its last proposals not only declined to accept the conditions which appeared as the guarantee of the independence of Korea, but also began at the same time to insist on provisions to be incorporated in a project regarding the question of Manchuria. Such demands on the part of Japan, naturally, were inadmissible, the question of Russia's position in Manchuria concerning in the first place China, but also all the powers having commercial interests in China. The imperial government, therefore, saw absolutely no reason to include in a special treaty with Japan regarding Korean affairs any provisions concerning territory occupied by Russian troops.
"The imperial government, however, did not refuse, so long as the occupation of Manchuria lasts, to recognize both the sovereignty of the Emperor of China in Manchuria and also the rights acquired there by other powers through treaties with China. A declaration to this effect had already been made to the foreign cabinets. In view of this the imperial government, after charging its representatives at Tōkyō to present its reply to the latest proposal of Japan, was justified in expecting the Tōkyō cabinet to take into account the considerations set forth above and that it would appreciate the wish manifested by Russia to come to a peaceful understanding with Japan. Instead of this the Japanese Government, not even awaiting this reply, decided to break off negotiations and to suspend diplomatic relations. The imperial government, while laying on Japan the full responsibility for any consequences of such a course of action, will await the development of events, and the moment it becomes necessary will take the most decisive measures for the protection of its rights and interests in the Far East."
The official statement given by the Japanese foreign office on the night of February 8 reads as follows:
"It being indispensable to the welfare and safety of Japan to maintain the independence and territorial integrity of Korea, and to safeguard her paramount interests therein, the Japanese Government finds it impossible to view with indifference any action endangering the position of Korea, whereas Russia, notwithstanding her solemn treaty with China and her repeated assurances to the powers, not only continues her occupation of Manchuria, but has taken aggressive measures in Korean territory. Should Manchuria be annexed to Russia, the independence of Korea would naturally be impossible. The Japanese Government, therefore, being desirous of securing permanent peace for eastern Asia, by means of direct negotiations with Russia, with the view of arriving at a friendly adjustment of their mutual interests in both Manchuria and Korea, where their interests meet, communicated toward the end of July last such desire to the Russian Government, and invited its adherence. To this the Russian Government expressed a willing assent. Accordingly, on August 12, the Japanese Government proposed to Russia, through its representative at St. Petersburg, the basis of an agreement which was substantially as follows:
"(1.) A mutual agreement to respect the independence and territorial integrity of the Chinese and Korean empires.
"(2.) A mutual engagement to maintain the principles of an equal opportunity for the commerce and industry of all nations with the natives of those countries.
"(3.) A reciprocal recognition of Japan's preponderating interests in Korea, and that Russia has special interests in railway enterprises in Manchuria, and a mutual recognition of the respective rights of Japan and Russia to take measures necessary for the protection of the above-mentioned interests, so far as the principle of article 1 is not infringed.
"(4.) The recognition by Russia of the exclusive rights of Japan to give advice and assistance to Korea in the interests of reform and good government.
"(5.) The engagement on the part of Russia not to impede the eventual extension of the Korean railway into southern Manchuria, so as to connect with the Eastern Chinese [i. e., Manchurian] and the Shan-hai-kwan—Niu-chwang lines.