THE SHANTUNG SETTLEMENT The Shantung Settlement was not so evidently chargeable to secret negotiations as the crisis over the disposition of Fiume, but the decision was finally reached through that method.

The controversy between Japan and China as to which country should become the possessor of the former German property and rights in the Shantung Peninsula was not decided until almost the last moment before the Treaty with Germany was completed.

Under pressure of the necessity of making the document ready for delivery to the German delegates, President Wilson, M.
Clemenceau, and Mr.Lloyd George, composing the Council of the Heads of States in the absence of Signor Orlando in Rome, issued an order directing the Drafting Committee of the Conference to prepare articles for the Treaty embodying the decision that the Council had made.

This decision, which was favorable to the Japanese claims, was the result of a confidential arrangement with the Japanese delegates by which, in the event of their claims being granted, they withdrew their threat to decline to sign the Treaty of Peace, agreed not to insist on a proposed amendment to the Covenant declaring for racial equality, and orally promised to restore to China in the near future certain rights of sovereignty over the territory, which promise failed of confirmation in writing or by formal public declaration.
It is fair to presume that, if the conflicting claims of Japan and China to the alleged rights of Germany in Chinese territory had been settled upon the merits through the medium of an impartial commission named by the Conference, the Treaty provisions relating to the disposition of those rights would have been very different from those which "The Three" ordered to be drafted.

Before a commission of the Conference no persuasive reasons for conceding the Japanese claims could have been urged on the basis of an agreement on the part of Japan to adhere to the League of Nations or to abandon the attempt to have included in the Covenant a declaration of equality between races.