AMERICA'S FROWN HAS PUT END TO JAPANESE COLONIZATION SCHEME

President Taft Submits to Senate Statement by Knox Announcing Attitude Assumed by United States.

SALE OF PROPERTY IN MEXICO DISCOURAGED

WASHINGTON, Wednesday, May 1. -- President Taft today informed the Senate that the department of state has no evidence whatever adequate to show any acquisition of land or any intention or desire to acquire land, whether directly or indirectly in Mexico by or on the part of the imperial Japanese government.

The President's message was in response to a Senate resolution calling for information regarding an alleged purchase of land at Magdalena Bay by the Japanese government or by a Japanese company.

With his brief message, the President transmitted a full report from Secretary of State Knox:

"There is nothing on file in the department of state," said the secretary, "that has justified any inference that the Mexican government or the imperial Japanese government has been occupied with any disposition of land near Magdalena Bay by which the latter government would acquire land there for any purpose. In these circumstances the department of state felt no necessity for further steps in the matter of any of these rumors, which are of a kind that all too frequently occur to the detriment of public opinion in the respective countries and are so alien to the cordial relations of the governments concerned."

Unreserved Denial Made.

Mr. Knox said the Japanese ambassador had informed the department that he had apprised his government of the rumors in question which had come to him through the public press and subsequently the ambassador made, with his government's authorization, an unreserved and categorical denial of the rumored purchase of land by the Japanese government or by a Japanese company, characterizing the report as entirely sensational and utterly without any foundation whatever, the Japanese government having never directly or indirectly attempted or contemplated the acquisition of any land at Magdalena Bay for any purpose.

Secretary Knox said the rumors regarding a Japanese purchase evidently arose from efforts by an American syndicate to dispose of certain lands near Magdalena Bay.

This American syndicate, according to the department's information, given in Secretary Knox's report, entered upon negotiations for a sale to a Japanese syndicate. Meantime an effort was made to ascertain the attitude of the American government toward such a transaction. There was evidence, Secretary Knox said, that the American syndicate felt or knew that Japanese capitalists would not care to consummate the purchase without the approval of the Japanese government toward such a transaction. There was evidence, Secretary Knox said, that the American syndicate felt or knew that Japanese capitalists would not care to consummate the purchase without the approval of the Japanese government and that the latter would not give its approval unless assured the transaction would be unobjectionable to the United States.

American Syndicate Warned.

The department of state made it plain to the American syndicate that such a transfer of lands would be interpreted in some quarters in a manner to cause a great outcry, and that such a result "would be so obviously a cause of regret to the government of the United States that it would appear unnecessary further that it would appear unnecessary further to comment on the disposition of the federal government in the premises."

The American syndicate, it appears, then sought to ascertain the attitude of the American government toward a company composed in part of Japanese investors, Americans retaining control of the property. To this proposition, the department replied that it could add nothing to its former statement. Since this reply, the files of the department disclose no further communication with the Americans interested in the lands. Under these circumstances, Secretary Knox declared:

"The department cannot assume there is any project on foot calling for action on the part of the Untied States."

The message precipitated a debate in the Senate. Senators Bacon and Lodge concurred in the opinion that if the Monroe doctrine did not cover the situation a new doctrine covering it could be created.

Explaining his reasons for calling for the correspondence, Lodge said it was to prevent the development of any embarrassing situation with reference to Mexico and Japan. He said the time had come when the United States should take the position that neither directly or indirectly could any foreign government obtain control of land in this hemisphere that might constitute a menace to the United States.

Senator Rayner said that if Japan established a base of supplies or coaling stations in Mexico, he would regard the act as a declaration of war.