(2 of 3)
Thoughts & Opinions. The Report finds that "the military operations of the Japanese troops [on the night they began their conquest of Manchuria] cannot be regarded as measures of legitimate self-defense" [as claimed by Japan].
Boldly realistic, the Report does not stick to Manchuria, but finds that a related and inseparable issue is the boycotting of Japanese goods by Chinese either in or out of Manchuria.
"No one can deny the right of individual Chinese to refuse to buy Japanese goods," says the Report, then continues: "Whether, however, the organized application of the boycott to the trade of one particular country is consistent with friendly relations or in conformity with treaty obligations is rather a problem of international law than a subject for our inquiry."
Again & again the five wise Westerners mention "Japan's treaty rights" and "the rights claimed by Japan" but leave as anybody's guess what these rights are and whether or not they include Japan's claims under her notorious "Twenty-One Demands."
Recommendations by the Commission cover1) establishment of "a completely new status" for Manchuria (Manchukuo) ; 2) termination of the "war in disguise" by an entire new set of treaties between China and Japan.
Manchuria, the Report recommends, should "secure, consistently with the sovereignty and administrative integrity of China, a large measure of autonomy." Specifically the Report recommends that the head of the new "autonomous Manchurian Government" should be appointed by the Chinese Government and should rule with the assistance of "foreign advisers," some of them Japanese and some (by implication) non-Asiatics.
Chinese soldiers, Japanese soldiers and all military forces whatsoever (including railway guards), should be replaced in Manchuria, the Report recommends, by a completely new "gendarmerie." Such sweeping changes, the Commissioners admit, could only be worked out by "temporary international cooperation" of the Great Powers.
The second set of Lytton recommendations calls for the signing by Japan and China of three new treaties1) settling what are Japan's "rights" or "interests"; 2) a "Treaty of Conciliation and Arbitration, Non-Aggression and Mutual Assistance"; 3) a "Commercial Treaty" to end boycotts amicably.
Procedure. In reporting to the League Council last week Lord Lytton & Commissioners suggested that the Council "invite" China and Japan to "discuss a solution of their dispute along the lines indicated."
Next, "if the invitation is accepted" an "advisory conference" should be called.
If this conference deadlocks, the Council should "attempt to secure an agreed settlement" (i. e. try to arbitrate). Finally —assuming all the big IFs have been surmounted—the new status of Manchuria would be "declared" by China and the treaties would be signed.