"It was the intention of the Japanese Government originally that a conference should take place between its representatives at St. Petersburg and the Russian authorities, so as to facilitate progress as much as possible in reaching a solution of the situation, but the Russian Government absolutely refused to do so, on the plea that the Tsar planned a trip abroad; and for other reasons it was unavoidably decided to conduct the negotiations at Tōkyō. It was not until October 3 that the Russian Government presented counter-proposals. She therein declined to engage in respect to the sovereignty and territorial integrity of China, and stipulate the maintenance of the principle of equal opportunities for the commerce and industry of all nations in China, and requested that Japan declare Manchuria and its littoral as being entirely outside of her sphere of interest. She further put several restrictions upon Japan's freedom of action in Korea; for instance, while recognizing Japan's right to dispatch troops, when necessary, for the protection of her interests in Korea, Russia refused to allow her to use any portion of Korean territory for strategical purposes; in fact, Russia went so far as to propose to establish a neutral zone in Korean territory north of the thirty-ninth parallel.
"The Japanese Government failed utterly to see why Russia, who professed no intention of absorbing Manchuria, should be disinclined to insert in the convention a clause in complete harmony with her own repeatedly declared principle respecting the sovereignty and territorial integrity of China. Furthermore, this refusal on the part of the Russian Government impressed the Japanese Government all the more with the necessity for the insertion of that clause.
"Japan has important commercial interests in Manchuria, and entertains no small hopes of their future development; and politically she has even greater interests there by reason of Manchuria's relations to Korea, so she could not possibly recognize Manchuria as being entirely outside her sphere of interest. These reasons decided Japan absolutely to reject the Russian proposal.
"Accordingly, the Japanese Government explained the foregoing views to the Russian Government, and at the same time it introduced other necessary amendments in the Russian counter-proposals. They further proposed, with regard to the neutral zone, that if one was to be created it should be established on both sides of the boundary line between Manchuria and Korea, with an equal width, say, of fifty kilometers.
"After repeated discussions at Tōkyō, the Japanese Government finally presented to the Russian Government its definitive amendment on October 30. The Japanese Government then frequently urged the Russian Government to give it an early reply, but this was again delayed, and only delivered on December 11. In that reply Russia suppressed the clauses relating to Manchuria so as to make the proposed convention apply entirely to Korea, and maintained its original demand in regard to the non-employment of Korean territory for strategical purposes, as well as a neutral zone; but the exclusion of Manchuria from the proposed convention being contrary to the original object of the negotiations, which were to remove causes of conflict between the two countries by a friendly arrangement of their interests, both in Manchuria and Korea, the Japanese Government asked the Russian Government to reconsider the question, and again proposed the removal of the restriction regarding the use of Korean territory, and the entire suppression of the neutral zone, on the ground that if Russia was opposed to the establishment of one in Manchuria it should not establish one in Korea.
"The last reply of Russia was received at Tōkyō on January 6. In this reply it is true Russia proposed to agree to insert the following clause in the proposed agreement:
"'The recognition by Japan of Manchuria and its littoral as outside her sphere of interest, while Russia, within the limits of that province, would not impede Japan or any other power in the employment of rights or privileges acquired by them under existing treaties with China exclusive of the establishment of a settlement.'
"But this was proposed to be agreed upon only upon conditions maintaining the clauses regarding a neutral zone in Korean territory and the non-employment of Korean territory for strategical purposes, the conditions whereof were impossible for Japan to accept, as had already been fully explained to Russia. It should further be observed that no mention was made at all of the territorial integrity of China in Manchuria, and it must be self-evident to everybody that the engagement now proposed by Russia would be of no practical value so long as it was unaccompanied by a definite stipulation regarding the territorial integrity of China in Manchuria, since treaty rights are only coexisting with sovereignty. Eventually, the absorption of Manchuria by Russia would annul at once those rights and privileges acquired by the powers in Manchuria by virtue of treaties with China."
Both the negotiations and the general diplomatic relations between Japan and Russia were severed by the former power on February 5. With this, diplomacy passed into war.