PART I. THE EUROPEAN WAR AND THE CHINESE QUESTION

Ver.10/04/01*END*

Produced by Robert Rowe, Charles Franks

and the Online Distributed Proofreading Team

THE FIGHT FOR THE REPUBLIC IN CHINA

BY B. L. PUTNAM WEALE

PREFACE

This volume tells everything that the student or the casual reader

needs to know about the Chinese Question. It is sufficiently

exhaustive to show very clearly the new forces at work, and to

bring some realisation of the great gulf which separates the

thinking classes of to-day from the men of a few years ago;

whilst, at the same time, it is sufficiently condensed not to

overwhelm the reader with too great a multitude of facts.

Particular attention may be devoted to an unique feature--namely,

the Chinese and Japanese documentation which affords a sharp

contrast between varying types of Eastern brains. Thus, in the

Memorandum of the Black Dragon Society (Chapter VII) we have a

very clear and illuminating revelation of the Japanese political

mind which has been trained to consider problems in the modern

Western way, but which remains saturated with theocratic ideals in

the sharpest conflict with the Twentieth Century. In the pamphlet

of Yang Tu (Chapter VIII) which launched the ill-fated Monarchy

Scheme and contributed so largely to the dramatic death of Yuan

Shih-kai, we have an essentially Chinese mentality of the

reactionary or corrupt type which expresses itself both on home

and foreign issues in a naively dishonest way, helpful to future

diplomacy. In the Letter of Protest (Chapter X) against the

revival of Imperialism written by Liang Ch'i-chao--the most

brilliant scholar living--we have a Chinese of the New or Liberal

China, who in spite of a complete ignorance of foreign languages

shows a marvellous grasp of political absolutes, and is a

harbinger of the great days which must come again to Cathay. In

other chapters dealing with the monarchist plot we see the

official mind at work, the telegraphic despatches exchanged

between Peking and the provinces being of the highest diplomatic

interest. These documents prove conclusively that although the

Japanese is more practical than the Chinese--and more concise--

there can be no question as to which brain is the more fruitful.

Coupled with this discussion there is much matter giving an

insight into the extraordinary and calamitous foreign ignorance

about present-day China, an ignorance which is just as marked

among those resident in the country as among those who have never

visited it. The whole of the material grouped in this novel

fashion should not fail to bring conviction that the Far East,

with its 500 millions of people, is destined to play an important

role in post-bellum history because of the new type of modern

spirit which is being there evolved. The influence of the Chinese

Republic, in the opinion of the writer, cannot fail to be

ultimately world-wide in view of the practically unlimited

resources in man-power which it disposes of.

In the Appendices will be found every document of importance for

the period of under examination,--1911 to 1917. The writer desires

to record his indebtedness to the columns of The Peking Gazette, a

newspaper which under the brilliant editorship of Eugene Ch'en--a

pure Chinese born and educated under the British flag--has fought

consistently and victoriously for Liberalism and Justice and has

made the Republic a reality to countless thousands who otherwise

would have refused to believe in it.

PUTNAM WEALE. PEKING, June, 1917.

CONTENTS

I. GENERAL INTRODUCTION

II. THE ENIGMA OF YUAN SHIH-KA

III. THE DREAM REPUBLIC (From the Manchu Abdication to the

dissolution of Parliament)

IV. THE DICTATOR AT WORK (From the Coup d'etat of the 4th. Nov.

1913 to the outbreak of the World-war, 1. August, 1914)

V. THE FACTOR OF JAPAN

VI. THE TWENTY-ONE DEMANDS

VII. THE ORIGIN OF THE TWENTY-ONE DEMANDS

VIII. THE MONARCHIST PLOT 1 DEGREE The Pamphlet of Yang Tu

IX. THE MONARCHY PLOT 2 DEGREES Dr. Goodnow's Memorandum

X. THE MONARCHY MOVEMENT Is OPPOSED The Appeal of the Scholar

Liang Chi-chao

XI. THE DREAM EMPIRE ("The People's Voice" and the action of the

Powers)

XII. "THE THIRD REVOLUTION" The Revolt of Yunnan

XIII. "THE THIRD REVOLUTION'" (CONTINUED) Downfall and Death of

Yuan Shih-kai

XIV. THE NEW REGIME--FROM 1916 TO 1917

XV. THE REPUBLIC IN COLLISION WITH REALITY: Two TYPICAL INSTANCES

OF "FOREIGN AGGRESSION"

XVI. CHINA AND THE WAR

XVII. THE FINAL PROBLEM:--REMODELLING THE POLITICO-ECONOMIC

RELATIONSHIP BETWEEN CHINA AND THE WORLD

APPENDICES--DOCUMENTS AND MEMORANDA

THE FIGHT FOR THE REPUBLIC IN CHINA

CHAPTER I

GENERAL INTRODUCTION

The revolution which broke out in China on the 10th October, 1911,

and which was completed with the abdication of the Manchu Dynasty

on the 12th February, 1912, though acclaimed as highly successful,

was in its practical aspects something very different. With the

proclamation of the Republic, the fiction of autocratic rule had

truly enough vanished; yet the tradition survived and with it

sufficient of the essential machinery of Imperialism to defeat the

nominal victors until the death of Yuan Shih-kai.

The movement to expel the Manchus, who had seized the Dragon

Throne in 1644 from the expiring Ming Dynasty, was an old one.

Historians are silent on the subject of the various secret plots

which were always being hatched to achieve that end, their silence

being due to a lack of proper records and to the difficulty of

establishing the simple truth in a country where rumour reigns

supreme. But there is little doubt that the famous Ko-lao-hui, a

Secret Society with its headquarters in the remote province of

Szechuan, owed its origin to the last of the Ming adherents, who

after waging a desperate guerilla warfare from the date of their

expulsion from Peking, finally fell to the low level of inciting

assassinations and general unrest in the vain hope that they might

some day regain their heritage. At least, we know one thing

definitely: that the attempt on the life of the Emperor Chia Ching

in the Peking streets at the beginning of the Nineteenth Century

was a Secret Society plot, and brought to an abrupt end the

pleasant habit of travelling among their subjects which the great

Manchu Emperors K'anghsi and Ch'ien Lung had inaugurated and

always pursued and which had so largely encouraged the growth of

personal loyalty to a foreign House.

From that day onwards for over a century no Emperor ventured out

from behind the frowning Walls of the Forbidden City save for

brief annual ceremonies such as the Worship of Heaven on the

occasion of the Winter Solstice, and during the two "flights"--

first, in 1860 when Peking was occupied by an Anglo-French

expedition and the Court incontinently sought sanctuary in the

mountain Palaces of Jehol; and, again, in 1900, when with the

pricking of the Boxer bubble and the arrival of the International

relief armies, the Imperial Household was forced along the stony

road to faroff Hsianfu.

The effect of this immurement was soon visible; the Manchu rule,

which was emphatically a rule of the sword, was rapidly so

weakened that the emperors became no more than rois faineants at

the mercy of their ministers.

[Footnote: As there is a good deal of misunderstanding on the

subject of the Manchus an explanatory note is useful.

The Manchu people, who belong to the Mongol or Turanian Group,

number at the maximum five million souls. Their distribution at

the time of the revolution of 1911 was roughly as follows: In and

around Peking say two millions, in posts through China say one-

half million,--or possibly three-quarters of a million; in

Manchuria Proper--the home of the race--say two or two and a half

millions. The fighting force was composed in this fashion: When

Peking fell into their hands in 1644 as a result of a stratagem

combined with dissensions among the Chinese themselves, the entire

armed strength was re-organized in Eight Banners or Army Corps,

each corps being composed of three racial divisions, (1) pure

Manchus, (2) Mongols who had assisted in the conquest and (3)

Nothern Chinese who had gone over to the conquerors. These Eight

Banners, each commanded by an "iron-capped" Prince, represented

the authority of the Throne and had their headquarters in Peking

with small garrisons throughout the provinces at various strategic

centres. These garrisons had entirely ceased to have any value

before the 18th Century had closed and were therefore pure

ceremonial and symbolic, all the fighting being done by special

Chinese corps which were raised as neccessity arose.]

The history of the Nineteenth Century is thus logically enough the

history of successive collapses. Not only did overseas foreigners

openly thunder at the gateways of the empire and force an ingress,

but native rebellions were constant and common. Leaving minor

disturbances out of account, there were during this period two

huge Mahommedan rebellions, besides the cataclysmic Taiping rising

which lasted ten years and is supposed to have destroyed the

unbelievable total of one hundred million persons. The empire,

torn by internecine warfare, surrendered many of its essential

prerogatives to foreigners, and by accepting the principle of

extraterritoriality prepared the road to ultimate collapse.

How in such circumstances was it possible to keep alive

absolutism? The answer is so curious that we must be explicit and

exhaustive.

The simple truth is that save during the period of vigour

immediately following each foreign conquest (such as the Mongol

conquest in the Thirteenth Century and the Manchu in the

Seventeenth) not only has there never been any absolutism properly

so-called in China, but that apart from the most meagre and

inefficient tax-collecting and some rough-and-ready policing in

and around the cities there has never been any true governing at

all save what the people did for themselves or what they demanded

of the officials as a protection against one another. Any one who

doubts these statements has no inkling of those facts which are

the crown as well as the foundation of the Chinese group-system,

and which must be patiently studied in the village-life of the

country to be fitly appreciated. To be quite frank, absolutism is

a myth coming down from the days of Kublai Khan when he so proudly

built his Khan-baligh (the Cambaluc of Marco Polo and the forebear

of modern Peking) and filled it with his troops who so soon

vanished like the snows of winter. An elaborate pretence, a

deliberate policy of make-believe, ever since those days invested

Imperial Edicts with a majesty which they have never really

possessed, the effacement of the sovereign during the Nineteenth

Century contributing to the legend that there existed in the

capital a Grand and Fearful Panjandrum for whom no miracle was too

great and to whom people and officials owed trembling obedience.

In reality, the office of emperor was never more than a politico-

religious concept, translated for the benefit of the masses into

socio-economic ordinances. These pronouncements, cast in the form

of periodic homilies called Edicts, were the ritual of government;

their purpose was instructional rather than mandatory; they were

designed to teach and keep alive the State-theory that the Emperor

was the High Priest of the Nation and that obedience to the

morality of the Golden Age, which had been inculcated by all the

philosophers since Confucius and Mencius flourished twenty-five

centuries ago, would not only secure universal happiness but

contribute to national greatness.

The office of Emperor was thus heavenly rather than terrestrial,

and suasion, not arms, was the most potent argument used in

everyday life. The amazing reply (i.e., amazing to foreigners)

made by the great Emperor K'ang-hsi in the tremendous Eighteenth

Century controversy between the Jesuit and the Dominican

missionaries, which ruined the prospects of China's ever becoming

Roman Catholic and which the Pope refused to accept--that the

custom of ancestor-worship was political and not religious--was

absolutely correct, POLITICS IN CHINA UNDER THE EMPIRE BEING ONLY

A SYSTEM OF NATIONAL CONTROL EXERCISED BY INCULCATING OBEDIENCE TO

FOREBEARS. The great efforts which the Manchus made from the end

of the Sixteenth Century (when they were still a small Manchurian

Principality striving for the succession to the Dragon Throne and

launching desperate attacks on the Great Wall of China) to receive

from the Dalai Lama, as well as from the lesser Pontiffs of Tibet

and Mongolia, high-sounding religious titles, prove conclusively

that dignities other than mere possession of the Throne were held

necessary to give solidity to a reign which began in militarism

and which would collapse as the Mongol rule had collapsed by a

mere Palace revolution unless an effective MORAL title were

somehow won.

Nor was the Manchu military Conquest, even after they had entered

Peking, so complete as has been represented by historians. The

Manchus were too small a handful, even with their Mongol and

Chinese auxiliaries, to do more than defeat the Ming armies and

obtain the submission of the chief cities of China. It is well-

known to students of their administrative methods, that whilst

they reigned over China they RULED only in company with the

Chinese, the system in force being a dual control which, beginning

on the Grand Council and in the various great Boards and

Departments in the capital, proceeded as far as the provincial

chief cities, but stopped short there so completely and absolutely

that the huge chains of villages and burgs had their historic

autonomy virtually untouched and lived on as they had always

lived. The elaborate system of examinations, with the splendid

official honours reserved for successful students which was

adopted by the Dynasty, not only conciliated Chinese society but

provided a vast body of men whose interest lay in maintaining the

new conquest; and thus Literature, which had always been the door

to preferment, became not only one of the instruments of

government, but actually the advocate of an alien rule. With their

persons and properties safe, and their women-folk protected by an

elaborate set of capitulations from being requisitioned for the

harems of the invaders, small wonder if the mass of Chinese

welcomed a firm administration after the frightful disorders which

had torn the country during the last days of the Mings. [Footnote:

This most interesting point--the immunity of Chinese women from

forced marriage with Manchus--has been far too little noticed by

historians though it throws a flood of light on the sociological

aspects of the Manchu conquest. Had that conquest been absolute it

would have been impossible for the Chinese people to have

protected their womenfolk in such a significant way.]

It was the foreigner, arriving in force in China after the capture

of Peking and the ratification of the Tientsin Treaties in 1860,

who so greatly contributed to making the false idea of Manchu

absolutism current throughout the world; and in this work it was

the foreign diplomat, coming to the capital saturated with the

tradition of European absolutism, who played a not unimportant

part. Investing the Emperors with an authority with which they

were never really clothed save for ceremonial purposes

(principally perhaps because the Court was entirely withdrawn from

view and very insolent in its foreign intercourse) a conception of

High Mightiness was spread abroad reminiscent of the awe in which

Eighteenth Century nabobs spoke of the Great Mogul of India.

Chinese officials, quickly discovering that their easiest means of

defence against an irresistible pressure was to take refuge behind

the august name of the sovereign, played their role so

successfully that until 1900 it was generally believed by

Europeans that no other form of government than a despotism sans

phrase could be dreamed of. Finding that on the surface an

Imperial Decree enjoyed the majesty of an Ukaze of the Czar,

Europeans were ready enough to interpret as best suited their

enterprises something which they entirely failed to construe in

terms expressive of the negative nature of Chinese civilization;

and so it happened that though the government of China had become

no government at all from the moment that extraterritoriality

destroyed the theory of Imperial inviolability and infallibility,

the miracle of turning state negativism into an active governing

element continued to work after a fashion because of the disguise

which the immense distances afforded.

Adequately to explain the philosophy of distance in China, and

what it has meant historically, would require a whole volume to

itself; but it is sufficient for our purpose to indicate here

certain prime essentials. The old Chinese were so entrenched in

their vastnesses that without the play of forces which were

supernatural to them, i.e., the steam-engine, the telegraph, the

armoured war-vessel, etc., their daily lives could not be

affected. Left to themselves, and assisted by their own methods,

they knew that blows struck across the immense roadless spaces

were so diminished in strength, by the time they reached the spot

aimed at, that they became a mere mockery of force; and, just

because they were so valueless, paved the way to effective

compromises. Being adepts in the art which modern surgeons have

adopted, of leaving wounds as far as possible to heal themselves,

they trusted to time and to nature to solve political differences

which western countries boldly attacked on very different

principles. Nor were they wrong in their view. From the capital to

the Yangtsze Valley (which is the heart of the country), is 800

miles, that is far more than the mileage between Paris and Berlin.

From Peking to Canton is 1,400 miles along a hard and difficult

route; the journey to Yunnan by the Yangtsze river is upwards of

2,000 miles, a distance greater than the greatest march ever

undertaken by Napoleon. And when one speaks of the Outer

Dominions--Mongolia, Tibet, Turkestan--for these hundreds of

miles it is necessary to substitute thousands, and add there to

difficulties of terrain which would have disheartened even Roman

Generals.

Now the old Chinese, accepting distance as the supreme thing, had

made it the starting-point as well as the end of their government.

In the perfected viceregal system which grew up under the Ming

Dynasty, and which was taken over by the Manchus as a sound and

admirable governing principle, though they superimposed their own

military system of Tartar Generals, we have the plan that

nullified the great obstacle. Authority of every kind was

delegated by the Throne to various distant governing centuries in

a most complete and sweeping manner, each group of provinces,

united under a viceroy, being in everything but name so many

independent linked commonwealths, called upon for matricular

contributions in money and grain but otherwise left severely

alone. [Footnote: A very interesting proof--and one that has never

been properly exposed--of the astoundingly rationalistic

principles on which the Chinese polity is founded is to be seen in

the position of priesthoods in China. Unlike every other

civilization in the world, at no stage of the development of the

State has it been necessary for religion in China to intervene

between the rulers and the ruled, saving the people from

oppression. In Europe without the supernatural barrier of the

Church, the position of the common people in the Middle Ages would

have been intolerable, and life, and virtue totally unprotected.

Buckle, in his "History of Civilization," like other extreme

radicals, has failed to understand that established religions have

paradoxically been most valuable because of their vast secular

powers, exercised under the mask of spiritual authority. Without

this ghostly restraint rulers would have been so oppressive as to

have destroyed their peoples. The two greatest monuments to

Chinese civilization, then consist of these twin facts; first,

that the Chinese have never had the need for such supernatural

restraints exercised by a privileged body, and secondly, that they

are absolutely without any feeling of class or caste--prince and

pauper meeting on terms of frank and humorous equality--the race

thus being the only pure and untinctured democracy the world has

ever known.] The chain which bound provincial China to the

metropolitan government was therefore in the last analysis finance

and nothing but finance; and if the system broke down in 1911 it

was because financial reform--to discount the new forces of which

the steam engine was the symbol--had been attempted, like military

reform, both too late and in the wrong way, and instead of

strengthening, had vastly weakened the authority of the Throne.

In pursuance of the reform-plan which became popular after the

Boxer Settlement had allowed the court to return to Peking from

Hsianfu, the viceroys found their most essential prerogative,

which was the control of the provincial purse, largely taken from

them and handed over to Financial Commissioners who were directly

responsible to the Peking Ministry of Finance, a Department which

was attempting to replace the loose system of matricular

contributions by the European system of a directly controlled

taxation every penny of which would be shown in an annual Budget.

No doubt had time been vouchsafed, and had European help been

enlisted on a large scale, this change could ultimately have been

made successful. But it was precisely time which was lacking; and

the Manchus consequently paid the penalty which is always paid by

those who delay until it is too late. The old theories having been

openly abandoned, it needed only the promise of a Parliament

completely to destroy the dignity of the Son of Heaven, and to

leave the viceroys as mere hostages in the hands of rebels. A few

short weeks of rebellion was sufficient in 1911 to cause the

provinces to revert to their condition of the earlier centuries

when they had been vast unfettered agricultural communities. And

once they had tasted the joys of this new independence, it was

impossible to conceive of their becoming "obedient" again.

Here another word of explanation is necessary to show clearly the

precise meaning of regionalism in China.

What had originally created each province was the chief city in

each region, such cities necessarily being the walled repositories

of all increment. Greedy of territory to enhance their wealth, and

jealous of their power, these provincial capitals throughout the

ages had left no stone unturned to extend their influence in every

possible direction and bring under their economic control as much

land as possible, a fact which is abundantly proved by the highly

diversified system of weights and measures throughout the land

deliberately drawn-up to serve as economic barriers. River-

courses, mountain-ranges, climate and soil, no doubt assisted in

governing this expansion, but commercial and financial greed was

the principal force. Of this we have an exceedingly interesting

and conclusive illustration in the struggle still proceeding

between the three Manchurian provinces, Fengtien, Kirin and

Heilungchiang, to seize the lion's share of the virgin land of

Eastern Inner Mongolia which has an "open frontier" of rolling

prairies. Having the strongest provincial capital--Moukden--it

has been Fengtien province which has encroached on the Mongolian

grasslands to such an extent that its jurisdiction to-day envelops

the entire western flank of Kirin province (as can be seen in the

latest Chinese maps) in the form of a salamander, effectively

preventing the latter province from controlling territory that

geographically belongs to it. In the same way in the land-

settlement which is still going on the Mongolian plateau

immediately above Peking, much of what should be Shansi territory

has been added to the metropolitan province of Chihli. Though

adjustments of provincial boundaries have been summarily made in

times past, in the main the considerations we have indicated have

been the dominant factors in determining the area of each unit.

Now in many provinces where settlement is age-old, the regionalism

which results from great distances and bad communications has been

greatly increased by race-admixture. Canton province, which was

largely settled by Chinese adventurers sailing down the coast from

the Yangtsze and intermarrying with Annamese and the older

autochthonous races, has a population-mass possessing very

distinct characteristics, which sharply conflict with Northern

traits. Fuhkien province is not only as diversified but speaks a

dialect which is virtually a foreign language. And so on North and

West of the Yangtsze it is the same story, temperamental

differences of the highest political importance being everywhere

in evidence and leading to perpetual bickerings and jealousies.

For although Chinese civilization resembles in one great

particular the Mahommedan religion, in that it accepts without

question all adherents irrespective of racial origin, POLITICALLY

the effect of this regionalism has been such that up to very

recent times the Central Government has been almost as much a

foreign government in the eyes of many provinces as the government

of Japan. Money alone formed the bond of union; so long as

questions of taxation were not involved, Peking was as far removed

from daily life as the planet Mars.

As we are now able to see very clearly, fifty years ago--that is

at the time of the Taiping Rebellion--the old power and spell of

the National Capital as a military centre had really vanished.

Though in ancient days horsemen armed with bows and lances could

sweep like a tornado over the land, levelling everything save the

walled cities, in the Nineteenth Century such methods had become

impossible. Mongolia and Manchuria had also ceased to be

inexhaustible reservoirs of warlike men; the more adjacent

portions had become commercialized; whilst the outer regions had

sunk to depopulated graziers' lands. The Government, after the

collapse of the Rebellion, being greatly impoverished, had openly

fallen to balancing province against province and personality

against personality, hoping that by some means it would be able to

regain its prestige and a portion of its former wealth. Taking

down the ledgers containing the lists of provincial contributions,

the mandarins of Peking completely revised every schedule,

redistributed every weight, and saw to it that the matricular

levies should fall in such a way as to be crushing. The new

taxation, likin, which, like the income-tax in England, is in

origin purely a war-tax, by gripping inter-provincial commerce by

the throat and rudely controlling it by the barrier-system, was

suddenly disclosed as a new and excellent way of making felt the

menaced sovereignty of the Manchus; and though the system was

plainly a two-edged weapon, the first edge to cut was the Imperial

edge; that is largely why for several decades after the Taipings

China was relatively quiet.

Time was also giving birth to another important development--

important in the sense that it was to prove finally decisive. It

would have been impossible for Peking, unless men of outstanding

genius had been living, to have foreseen that not only had the

real bases of government now become entirely economic control, but

that the very moment that control faltered the central government

of China would openly and absolutely cease to be any government at

all. Modern commercialism, already invading China at many points

through the medium of the treaty-ports, was a force which in the

long run could not be denied. Every year that passed tended to

emphasize the fact that modern conditions were cutting Peking more

and more adrift from the real centres of power--the economic

centres which, with the single exception of Tientsin, lie from 800

to 1,500 miles away. It was these centres that were developing

revolutionary ideas--i. e., ideas at variance with the Socio-

economic principles on which the old Chinese commonwealth had been

slowly built up, and which foreign dynasties such as the Mongol

and the Manchu had never touched. The Government of the post-

Taiping period still imagined that by making their hands lie more

heavily than ever on the people and by tightening the taxation

control--not by true creative work--they could rehabilitate

themselves.

It would take too long, and would weary the indulgence of the

reader to establish in a conclusive manner this thesis which had

long been a subject of inquiry on the part of political students.

Chinese society, being essentially a society organized on a

credit-co-operative system, so nicely adjusted that money, either

coined or fiduciary, was not wanted save for the petty daily

purchases of the people, any system which boldly clutched at the

financial establishments undertaking the movement of sycee

(silver) from province to province for the settlement of trade-

balances, was bound to be effective so long as those financial

establishments remained unshaken.

The best known establishments, united in the great group known as

the Shansi Bankers, being the government bankers, undertook not

only all the remittances of surpluses to Peking, but controlled by

an intricate pass-book system the perquisites of almost every

office-holder in the empire. No sooner did an official, under the

system which had grown up, receive a provincial appointment than

there hastened to him a confidential clerk of one of these

accommodating houses, who in the name of his employers advanced

all the sums necessary for the payment of the official's post, and

then proceeded with him to his province so that moiety by moiety,

as taxation flowed in, advances could be paid off and the

equilibrium re-established. A very intimate and far-reaching

connection thus existed between provincial money-interests and the

official classes. The practical work of governing China was the

balancing of tax-books and native bankers' accounts. Even the

"melting-houses," where sycee was "standardized" for provincial

use, were the joint enterprises of officials and merchants;

bargaining governing every transaction; and only when a violent

break occurred in the machinery, owing to famine or rebellion, did

any other force than money intervene.

There was nothing exceptional in these practices, in the use of

which the old Chinese empire was merely following the precedent of

the Roman Empire. The vast polity that was formed before the time

of Christ by the military and commercial expansion of Rome in the

Mediterranean Basin, and among the wild tribes of Northern Europe,

depended very largely on the genius of Italian financiers and tax-

collectors to whom the revenues were either directly "farmed," or

who "assisted" precisely after the Chinese method in financing

officials and local administrations, and in replenishing a central

treasury which no wealth could satisfy. The Chinese phenomenon was

therefore in no sense new; the dearth of coined money and the

variety of local standards made the methods used economic

necessities. The system was not in itself a bad system: its fatal

quality lay in its woodenness, its lack of adaptability, and in

its growing weakness in the face of foreign competition which it

could never understand. Foreign competition--that was the enemy

destined to achieve an overwhelming triumph and dash to ruins a

hoary survival.

War with Japan sounded the first trumpet-blast which should have

been heeded. In the year 1894, being faced with the necessity of

finding immediately a large sum of specie for purpose of war, the

native bankers proclaimed their total inability to do so, and the

first great foreign loan contract was signed.

[Footnote: (a) This loan was the so-called 7 per cent Silver loan

of 1894 for Shanghai Taels 10,000,000 negotiated by the Hongkong &

Shanghai Bank. It was followed in 1895 by a 3,000,000 pounds Gold

6 per cent Loan, then by two more 6 per cent loans for a million

each in the same year, making a total of 6,635,000 pounds sterling

for the bare war-expenses. The Japanese war indemnity raised in

three successive issues--from 1895 to 1898--of 16,000,000 pounds

each, added 48,000,000 pounds. Thus the Korean imbroglio cost

China nearly 55 millions sterling. As the purchasing power of the

sovereign is eight times larger in China than in Europe, this debt

economically would mean 440 millions in England--say nearly double

what the ruinous South African war cost. It is by such methods of

comparison that the vital nature of the economic factor in recent

Chinese history is made clear.]

Little attention was attracted to what is a turning-point in

Chinese history. There cannot be the slightest doubt that in 1894

the Manchus wrote the first sentences of an abdication which was

only formally pronounced in 1912: they had inaugurated the

financial thraldom under which China still languishes. Within a

period of forty months, in order to settle the disastrous Japanese

war, foreign loans amounting to nearly fifty-five million pounds

were completed. This indebtedness, amounting to nearly three times

the "visible" annual revenues of the country--that is, the

revenues actually accounted for to Peking--was unparalleled in

Chinese history. It was a gold indebtedness subject to all sorts

of manipulations which no Chinese properly understood. It had

special political meaning and special political consequences

because the loans were virtually guaranteed by the Powers. It was

a long-drawn coup d'etat of a nature that all foreigners

understood because it forged external chains.

The internal significance was even greater than the external. The

loans were secured on the most important "direct" revenues

reaching Peking--the Customs receipts, which were concerned with

the most vital function in the new economic life springing up, the

steam-borne coasting and river-trade as well as the purely

foreign trade. That most vital function tended consequently to

become more and more hall-marked as foreign; it no longer depended

in any direct sense on Peking for protection. The hypothecation of

these revenues to foreigners for periods running into decades--

coupled with their administration by foreigners--was such a

distinct restriction of the rights of eminent domain as to amount

to a partial abrogation of sovereignty.

That this was vaguely understood by the masses is now quite

certain. The Boxer movement of 1900, like the great proletarian

risings which occurred in Italy in the pre-Christian era as a

result of the impoverishment and moral disorder brought about by

Roman misgovernment, was simply a socio-economic catastrophe

exhibiting itself in an unexpected form. The dying Manchu dynasty,

at last in open despair, turned the revolt, insanely enough,

against the foreigner--that is against those who already held the

really vital portion of their sovereignty. So far from saving

itself by this act, the dynasty wrote another sentence in its

death-warrant. Economically the Manchus had been for years almost

lost; the Boxer indemnities were the last straw. By more than

doubling the burden of foreign commitments, and by placing the

operation of the indemnities directly in the hands of foreign

bankers by the method of monthly quotas, payable in Shanghai, THE

PEKING GOVERNMENT AS FAR BACK AS FIFTEEN YEARS AGO WAS REDUCED TO

BEING A GOVERNMENT AT THIRTY DAYS' SIGHT, AT THE MERCY OF ANY

SHOCK OF EVENTS WHICH COULD BE PROTRACTED OVER A FEW MONTHLY

SETTLEMENTS. There is no denying this signal fact, which is

probably the most remarkable illustration of the restrictive power

of money which has ever been afforded in the history of Asia.

The phenomenon, however, was complex and we must be careful to

understand its workings. A mercantile curiosity, to find the

parallel for which we must go back to the Middle Ages in Europe,

when "free cities" such as those of the Hanseatic League

plentifully dotted river and coast line, served to increase the

general difficulties of a situation which no one formula could

adequately cover. Extraterritoriality, by creating the "treaty

port" in China, had been the most powerful weapon in undermining

native economics; yet at the same time it had been the agent for

creating powerful new counter-balancing interests. Though the

increasingly large groups of foreigners, residing under their own

laws, and building up, under their own specially protected system

of international exchange, a new and imposing edifice, had made

the hovel-like nature of Chinese economics glaringly evident, the

mercantile classes of the New China, being always quick to avail

themselves of money-making devices, had not only taken shelter

under this new and imposing edifice, but were rapidly extending it

of their own accord. In brief, the trading Chinese were

identifying themselves and their major interests with the treaty-

ports; they were transferring thither their specie and their

credits; making huge investments in land and properties, under the

aegis of foreign flags in which they absolutely trusted. The

money-interests of the country knew instinctively that the native

system was doomed and that with this doom there would come many

changes; these interests, in the way common to money all the world

over, were insuring themselves against the inevitable.

The force of this--politically--became finally evident in 1911;

and what we have said in our opening sentences should now be

clear. The Chinese Revolution was an emotional rising against the

Peking System because it was a bad and inefficient and retrograde

system, just as much as against the Manchus, who after all had

adopted purely Chinese methods and who were no more foreigners

than Scotchmen or Irishmen are foreigners to-day in England. The

Revolution of 1911 derived its meaning and its value--as well as

its mandate--not from what it proclaimed, but for what it stood

for. Historically, 1911 was the lineal descendant of 1900, which

again was the offspring of the economic collapse advertised by the

great foreign loans of the Japanese war, loans made necessary

because the Taipings had disclosed the complete disappearance of

the only raison d'etre of Peking sovereignty, i.e. the old-time

military power. The story is, therefore, clear and well-connected

and so logical in its results that it has about it a finality

suggesting the unrolling of the inevitable.

During the Revolution the one decisive factor was shown to be

almost at once--money, nothing but money. The pinch was felt at

the end of the first thirty days. Provincial remittances ceased;

the Boxer quotas remained unpaid; a foreign embargo was laid upon

the Customs funds. The Northern troops, raised and trained by Yuan

Shih-kai, when he was Viceroy of the Metropolitan province, were,

it is true, proving themselves the masters of the Yangtsze and

South China troops; yet that circumstance was meaningless. Those

troops were fighting for what had already proved itself a lost

cause--the Peking System as well as the Manchu dynasty. The fight

turned more and more into a money-fight. It was foreign money

which brought about the first truce and the transfer of the so-

called republican government from Nanking to Peking. In the

strictest sense of the words every phase of the settlement then

arrived at was a settlement in terms of cash.[Footnote: There is

no doubt that the so-called Belgian loan, 1,800,000 pounds of

which was paid over in cash at the beginning of 1912, was the

instrument which brought every one to terms.]

Had means existed for rapidly replenishing the Chinese Treasury

without having recourse to European stockmarkets (whose actions

are semi-officially controlled when distant regions are involved)

the Republic might have fared better. But placed almost at once

through foreign dictation under a species of police-control,

which while nominally derived from Western conceptions, was

primarily designed to rehabilitate the semblance of the authority

which had been so sensationally extinguished, the Republic

remained only a dream; and the world, taught to believe that there

could be no real stability until the scheme of government

approximated to the conception long formed of Peking absolutism,

waited patiently for the rude awakening which came with the Yuan

Shih-kai coup d'etat of 4th November, 1913. Thus we had this

double paradox; on the one hand the Chinese people awkwardly

trying to be western in a Chinese way and failing: on the other,

foreign officials and foreign governments trying to be Chinese and

making the confusion worse confounded. It was inevitable in such

circumstances that the history of the past six years should have

been the history of a slow tragedy, and that almost every page

should be written over with the name of the man who was the

selected bailiff of the Powers--Yuan Shih-kai.

CHAPTER II

THE ENIGMA OF YUAN SHIH-KAI

THE HISTORY OF THE MAN FROM THE OPENING OF HIS CAREER IN KOREA, IN

1882 TO THE END OF THE REVOLUTION, 12TH FEBRUARY, 1912

Yuan Shih-kai's career falls into two clear-cut parts, almost as

if it had been specially arranged for the biographer; there is the

probationary period in Korea, and the executive in North China.

The first is important only because of the moulding-power which

early influences exerted on the man's character; but it is

interesting in another way since it affords glimpses of the sort

of things which affected this leader's imagination throughout his

life and finally brought him to irretrievable ruin. The second

period is choke-full of action; and over every chapter one can see

the ominous point of interrogation which was finally answered in

his tragic political and physical collapse.

Yuan Shih-kai's origin, without being precisely obscure, is

unimportant. He came of a Honanese family who were nothing more

distinguished than farmers possessing a certain amount of land,

but not too much of the world's possessions. The boy probably ran

wild in the field at an age when the sons of high officials and

literati were already pale and anaemic from overmuch study. To

some such cause the man undoubtedly owed his powerful physique,

his remarkable appetite, his general roughness. Native biographers

state that as a youth he failed to pass his hsiu-tsai

examinations--the lowest civil service degree--because he had

spent too much time in riding and boxing and fencing. An uncle in

official life early took charge of him; and when this relative

died the young man displayed filial piety in accompanying the

corpse back to the family graves and in otherwise manifesting

grief. Through official connections a place was subsequently found

for him in that public department under the Manchus which may be

called the military intendancy, and it was through this branch of

the civil service that he rose to power. Properly speaking Yuan

Shih-kai was never an army-officer; he was a military official--

his highest rank later on being that of military judge, or better,

Judicial Commissioner.

Yuan Shih-kai first emerges into public view in 1882 when, as a

sequel to the opening of Korea through the action of foreign

Powers in forcing the then Hermit kingdom to sign commercial

treaties, China began dispatching troops to Seoul. Yuan Shih-kai,

with two other officers, commanding in all some 3,000 men, arrived

from Shantung, where he had been in the train of a certain General

Wu Chang-ching, and now encamped in the Korean capital nominally

to preserve order, but in reality, to enforce the claims of the

suzerain power. For the Peking Government had never retreated from

the position that Korea had been a vassal state ever since the

Ming Dynasty had saved the country from the clutches of Hideyoshi

and his Japanese invaders in the Sixteenth Century. Yuan Shih-kai

had been personally recommended by this General Wu Chang-ching as

a young man of ability and energy to the famous Li Hung Chang, who

as Tientsin Viceroy and High Commissioner for the Northern Seas

was responsible for the conduct of Korean affairs. The future

dictator of China was then only twenty-five years old.

His very first contact with practical politics gave him a peculiar

manner of viewing political problems. The arrival of Chinese

troops in Seoul marked the beginning of that acute rivalry with

Japan which finally culminated in the short and disastrous war of

1894-95. China, in order to preserve her influence in Korea

against the growing influence of Japan, intrigued night and day in

the Seoul Palaces, allying herself with the Conservative Court

party which was led by the notorious Korean Queen who was

afterwards assassinated. The Chinese agents aided and abetted the

reactionary group, constantly inciting them to attack the Japanese

and drive them out of the country.

Continual outrages were the consequence. The Japanese legation was

attacked and destroyed by the Korean mob not once but on several

occasions during a decade which furnishes one of the most amazing

chapters in the history of Asia. Yuan Shih-kai, being then merely

a junior general officer under the orders of the Chinese Imperial

Resident, is of no particular importance; but it is significant of

the man that he should suddenly come well under the limelight on

the first possible occasion. On 6th December, 1884, leading 2,000

Chinese troops, and acting in concert with 3,000 Korean soldiers,

he attacked the Tong Kwan Palace in which the Japanese Minister

and his staff, protected by two companies of Japanese infantry,

had taken refuge owing to the threatening state of affairs in the

capital. Apparently there was no particular plan--it was the

action of a mob of soldiery tumbling into a political brawl and

assisted by their officers for reasons which appear to-day

nonsensical. The sequel was, however, extraordinary. The Japanese

held the Palace gates as long as possible, and then being

desperate exploded a mine which killed numbers of Koreans and

Chinese soldiery and threw the attack into confusion. They then

fought their way out of the city escaping ultimately to the

nearest sea-port, Chemulpo.

The explanation of this extraordinary episode has never been made

public. The practical result was that after a period of extreme

tension between China and Japan which was expected to lead to war,

that political genius, the late Prince Ito, managed to calm things

down and arrange workable modus vivendi. Yuan Shih-kai, who had

gone to Tientsin to report in person to Li Hung Chang, returned to

Seoul triumphantly in October, 1885, as Imperial Resident. He was

then twenty-eight years old; he had come to the front, no matter

by what means, in a quite remarkable manner.

The history of the next nine years furnishes plenty of minor

incidents, but nothing of historic importance. As the faithful

lieutenant of Li Hung Chang, Yuan Shih-kai's particular business

was simply to combat Japanese influence and hold the threatened

advance in check. He failed, of course, since he was playing a

losing game; and yet he succeeded where he undoubtedly wished to

succeed. By rendering faithful service he established the

reputation he wished to win; and though he did nothing great he

retained his post right up to the act which led to the declaration

of war in 1894. Whether he actually precipitated that war is still

a matter of opinion. On the sinking by the Japanese fleet of the

British steamer Kowshing, which was carrying Chinese

reinforcements from Taku anchorage to Asan Bay to his assistance,

seeing that the game was up, he quietly left the Korean capital

and made his way overland to North China. That swift, silent

journey home ends the period of his novitiate.

It took him a certain period to weather the storm which the utter

collapse of China in her armed encounter with Japan brought about

--and particularly to obtain forgiveness for evacuating Seoul

without orders. Technically his offence was punishable by death--

the old Chinese code being most stringent in such matters. But by

1896 he was back in favour again, and through the influence of his

patron Li Hung Chang, he was at length appointed in command of the

Hsiaochan camp near Tientsin, where he was promoted and given the

task of reforming a division of old-style troops and making them

as efficient as Japanese soldiery. He had already earned a wide

reputation for severity, for willingness to accept responsibility,

for nepotism, and for a rare ability to turn even disasters to his

own advantage--all attributes which up to the last moment stood

him in good stead.

In the Hsiaochan camp the most important chapter of his life

opens; there is every indication that he fully realized it.

Tientsin has always been the gateway to Peking: from there the

road to high preferment is easily reached. Yuan Shih-kai marched

steadily forward, taking the very first turning-point in a manner

which stamped him for many of his compatriots in a way which can

never be obliterated.

It is first necessary to say a word about the troops of his

command, since this has a bearing on present-day politics. The

bulk of the soldiery were so-called Huai Chun--i.e., nominally

troops from the Huai districts, just south of Li Hung Chang's

native province Anhui. These Kiangu men, mixed with Shantung

recruits, had earned a historic place in the favour of the Manchus

owing to the part they had played in the suppression of the

Taiping Rebellion, in which great event General Gordon and Li Hung

Chang had been so closely associated. They and the troops of Hunan

province, led by the celebrated Marquis Tseng Kuo-fan, were "the

loyal troops," resembling the Sikhs during the Indian Mutiny; they

were supposed to be true to their salt to the last man. Certainly

they gave proofs of uncustomary fidelity.

In those military days of twenty years ago Yuan Shih-kai and his

henchmen were, however, concerned with simpler problems. It was

then a question of drill and nothing but drill. In his camp near

Tientsin the future President of the Chinese Republic succeeded in

reorganizing his troops so well that in a very short time the

Hsiaochan Division became known as a corps d'elite. The discipline

was so stern that there were said to be only two ways of noticing

subordinates, either by promoting or beheading them. Devoting

himself to his task Yuan Shih-kai gave promise of being able to

handle much bigger problems.

His zeal soon attracted the attention of the Manchu Court. The

circumstances in Peking at that time were peculiar. The famous old

Empress Dowager, Tzu-Hsi, after the Japanese war, had greatly

relaxed her hold on the Emperor Kwanghsu, who though still in

subjection to her, nominally governed the empire. A well-

intentioned but weak man, he had surrounded himself with advanced

scholars, led by the celebrated Kang Yu Wei, who daily studied

with him and filled him with new doctrines, teaching him to

believe that if he would only exert his power he might rescue the

nation from international ignominy and make for himself an

imperishable name.

The sequel was inevitable. In 1898 the oriental world was

electrified by the so-called Reform Edicts, in which the Emperor

undertook to modernize China, and in which he exhorted the nation

to obey him. The greatest alarm was created in Court circles by

this action; the whole vast body of Metropolitan officialdom,

seeing its future threatened, flooded the Palace of the Empress

Dowager with Secret Memorials praying her to resume power.

Flattered, she gave her secret assent.

Things marched quickly after that. The Empress, nothing loth,

began making certain dispositions. Troops were moved, men were

shifted here and there in a way that presaged action; and the

Emperor, now thoroughly alarmed and yielding to the entreaties of

his followers, sent two members of the Reform Party to Yuan Shih-

kai bearing an alleged autograph order for him to advance

instantly on Peking with all his troops; to surround the Palace,

to secure the person of the Emperor from all danger, and then to

depose the Empress Dowager for ever from power. What happened is

equally well-known. Yuan Shih-kai, after an exhaustive examination

of the message and messengers, as well as other attempts to

substantiate the genuineness of the appeal, communicated its

nature to the then Viceroy of Chihli, the Imperial Clansman Jung

Lu, whose intimacy with the Empress Dowager since the days of her

youth has passed into history. Jung Lu lost no time in acting. He

beheaded the two messengers and personally reported the whole plot

to the Empress Dowager who was already fully warned. The result

was the so-called coup d'etat of September, 1898, when all the

Reformers who had not fled were summarily executed, and the

Emperor Kwanghsu himself closely imprisoned in the Island Palace

within that portion of the Forbidden City known as the Three

Lakes, having (until the Boxer outbreak of 1900 carried him to

Hsianfu), as sole companions his two favourites, the celebrated

odalisques "Pearl" and "Lustre."

This is no place to enter into the controversial aspect of Yuan

Shih-kai's action in 1898 which has been hotly debated by

partisans for many years. For onlookers the verdict must always

remain largely a matter of opinion; certainly this is one of those

matters which cannot be passed upon by any one but a Chinese

tribunal furnished with all the evidence. Those days which

witnessed the imprisonment of Kwang Hsu were great because they

opened wide the portals of the Romance of History: all who were in

Peking can never forget the counter-stroke; the arrival of the

hordes composed of Tung Fu-hsiang's Mahommedan cavalry--men who

had ridden hard across a formidable piece of Asia at the behest of

their Empress and who entered the capital in great clouds of dust.

It was in that year of 1898 also that Legation Guards reappeared

in Peking--a few files for each Legation as in 1860--and it was

then that clear-sighted prophets saw the beginning of the end of

the Manchu Dynasty.

Yuan Shih-kai's reward for his share in this counter-revolution

was his appointment to the governorship of Shantung province. He

moved thither with all his troops in December, 1899. Armed cap-a-

pie he was ready for the next act--the Boxers, who burst on China

in the Summer of 1900. These men were already at work in Shantung

villages with their incantations and alleged witchcraft. There is

evidence that their propaganda had been going on for months, if

not for years, before any one had heard of it. Yuan Shih-kai had

the priceless opportunity of studying them at close range and soon

made up his mind about certain things. When the storm burst,

pretending to see nothing but mad fanatics in those who, realizing

the plight of their country, had adopted the war-cry "Blot out the

Manchus and the foreigner," he struck at them fiercely, driving

the whole savage horde headlong into the metropolitan province of

Chihli. There, seduced by the Manchus, they suddenly changed the

inscription on their flags. Their sole enemy became the foreigner

and all his works, and forthwith they were officially protected.

Far and wide they killed every white face they could find. They

tore up railways, burnt churches and chapels and produced a

general anarchy which could only have one end--European

intervention. The man, sitting on the edge of Chinese history but

not yet identifying himself with its main currents because he was

not strong enough for that, had once again not judged wrongly.

With his Korean experience to assist him, he had seen precisely

what the end must inevitably be.

The crash in Peking, when the siege of the Legations had been

raised by an international army, found him alert and sympathetic--

ready with advice, ready to shoulder new responsibilities, ready

to explain away everything. The signature of the Peace Protocol of

1901 was signalized, by his obtaining the viceroyalty of Chihli,

succeeding the great Li Hung Chang himself, who had been

reappointed to his old post, but had found active duties too

wearisome. This was a marvellous success for a man but little over

forty. And when the fugitive Court at length returned from Hsianfu

in 1902, honours were heaped upon him as a person particularly

worthy of honour because he had kept up appearances and maintained

the authority of the distressed Throne. As if in answer to this he

flooded the Court with memorials praying that in order to restore

the power of the Dynasty a complete army of modern troops be

raised--as numerous as possible but above all efficient.

His advice was listened to. From 1902 until 1907 as Minister of

the Army Reorganization Council--a special post he held

simultaneously with that of metropolitan Viceroy--Yuan Shih-kai's

great effort was concentrated on raising an efficient fighting

force. In those five years, despite all financial embarrassments,

North China raised and equipped six excellent Divisions of field-

troops--75,000 men--all looking to Yuan Shih-kai as their sole

master. So much energy did he display in pushing military

reorganization throughout the provinces that the Court, warned by

jealous rivals of his growing power, suddenly promoted him to a

post where he would be powerless. One day he was brought to Peking

as Grand Councillor and President of the Board of Foreign Affairs,

and ordered to hand over all army matters to his noted rival, the

Manchu Tieh Liang. The time had arrived to muzzle him. His last

phase as a pawn had come.

Few foreign diplomats calling at China's Foreign Office to discuss

matters during that short period which lasted barely a twelve-

month, imagined that the square resolute-looking man who as

President of the Board gave the same energy and attention to

consular squabbles as to the reorganization of a national fighting

force, was almost daily engaged in a fierce clandestine struggle

to maintain even his modest position. Jealousy, which flourishes

in Peking like the upas tree, was for ever blighting his schemes

and blocking his plans. He had been brought to Peking to be tied

up; he was constantly being denounced; and even his all powerful

patroness, the old Empress Dowager, who owed so much to him,

suffered from constant premonitions that the end was fast

approaching, and that with her the Dynasty would die.

In the Autumn of 1908 she took sick. The gravest fears quickly

spread. It was immediately reported that the Emperor Kwanghsu was

also very ill--an ominous coincidence. Very suddenly both

personages collapsed and died, the Empress Dowager slightly before

the Emperor. There is little doubt that the Emperor himself was

poisoned. The legend runs that as he expired not only did he give

his Consort, who was to succeed him in the exercise of the nominal

power of the Throne, a last secret Edict to behead Yuan Shih-kai,

but that his faltering hand described circle after circle in the

air until his followers understood the meaning. In the vernacular

the name of the great viceroy and the word for circle have the

same sound; the gesture signified that the dying monarch's last

wish was revenge on the man who had failed him ten years before.

An ominous calm followed this great break with the past. It was

understood that the Court was torn by two violent factions

regarding the succession which the Empress Tzu-hsi had herself

decided. The fact that another long Regency had become inevitable

through the accession of the child Hsuan Tung aroused instant

apprehensions among foreign observers, whilst it was confidently

predicted that Yuan Shih-kai's last days had come.

The blow fell suddenly on the 2nd January, 1909. In the interval

between the death of the old Empress and his disgrace, Yuan Shih-

kai was actually promoted to the highest rank in the gift of the

Throne, that is made "Senior Guardian of the Heir Apparent" and

placed in charge of the Imperial funeral arrangements--a

lucrative appointment. During that interval it is understood that

the new Regent, brother of the Emperor Kwang-hsu, consulted all

the most trusted magnates of the empire regarding the manner in

which the secret decapitation Decree should be treated. All

advised him to be warned in time, and not to venture on a course

of action which would be condemned both by the nation and by the

Powers. Another Edict was therefore prepared simply dismissing

Yuan Shih-kai from office and ordering him to return to his native

place.

Every one remembers that day in Peking when popular rumour

declared that the man's last hour had come. Warned on every side

to beware, Yuan Shih-kai left the Palace as soon as he had read

the Edict of dismissal in the Grand Council and drove straight to

the railway-station, whence he entrained for Tientsin, dressed as

a simple citizen. Rooms had been taken for him at a European

hotel, the British Consulate approached for protection, when

another train brought down his eldest son bearing a message direct

from the Grand Council Chamber, absolutely guaranteeing the safety

of his life. Accordingly he duly returned to his native place in

Honan province, and for two years--until the outbreak of the

Revolution--devoted himself sedulously to the development of the

large estate he had acquired with the fruits of office. Living

like a patriarch of old, surrounded by his many wives and

children, he announced constantly that he had entirely dropped out

of the political life of China and only desired to be left in

peace. There is reason to believe, however, that his henchmen

continually reported to him the true state of affairs and bade him

bide his time. Certain it is that the firing of the first shots on

the Yangtsze found him alert and issuing private orders to his

followers. It was inevitable that he should have been recalled to

office--and actually within one hundred hours of the first news of

the outbreak the Court sent for him urgently and ungraciously.

From the 14th October, 1911, when he was appointed by Imperial

Edict Viceroy of Hupeh and Hunan and ordered to proceed at once to

the front to quell the insurrection, until the 1st November, when

he was given virtually Supreme Power as President of the Grand

Council in place of Prince Ching, a whole volume is required to

discuss adequately the maze of questions involved. For the

purposes of this account, however, the matter can be dismissed

very briefly in this way. Welcoming the opportunity which had at

last come and determined once for all to settle matters

decisively, so far as he was personally concerned, Yuan Shih-kai

deliberately followed the policy of holding back and delaying

everything until the very incapacity marking both sides--the

Revolutionists quite as much as the Manchus--forced him, as man of

action and man of diplomacy, to be acclaimed the sole mediator and

saviour of the nation.

The detailed course of the Revolution, and the peculiar manner in

which Yuan Shih-kai allowed events rather than men to assert their

mastery has often been related and need not long detain us. It is

generally conceded that in spite of the bravery of the raw

revolutionary levies, their capacity was entirely unequal to the

trump card Yuan Shih-kai held all the while in his hand--the six

fully-equipped Divisions of Field Troops he himself had organized

as Tientsin Viceroy. It was a portion of this field-force which

captured and destroyed the chief revolutionary base in the triple

city of Hankow, Hanyang and Wuchang in November, 1911, and which

he held back just as it was about to give the coup de grace by

crossing the river in force and sweeping the last remnants of the

revolutionary army to perdition. Thus it is correct to declare

that had he so wished Yuan Shih-kai could have crushed the

revolution entirely before the end of 1911; but he was

sufficiently astute to see that the problem he had to solve was

not merely military but moral as well. The Chinese as a nation

were suffering from a grave complaint. Their civilization had been

made almost bankrupt owing to unresisted foreign aggression and to

the native inability to cope with the mass of accumulated wrongs

which a superimposed and exhausted feudalism--the Manchu system--

had brought about. Yuan Shih-kai knew that the Boxers had been

theoretically correct in selecting as they first did the watchword

which they had first placed on their banners--"blot out the

Manchus and all foreign things." Both had sapped the old

civilization to its foundations. But the program they had proposed

was idealistic, not practical. One element could be cleared away--

the other had to be endured. Had the Boxers been sensible they

would have modified their program to the extent of protecting the

foreigners, whilst they assailed the Dynasty which had brought

them so low. The Court Party, as we have said, seduced their

leaders to acting in precisely the reverse sense.

Yuan Shih-kai was neither a Boxer, nor yet a believer in

idealistic foolishness. He had realized that the essence of

successful rule in the China of the Twentieth Century was to

support the foreign point of view--nominally at least--because

foreigners disposed of unlimited monetary resources, and had

science on their side. He knew that so long as he did not openly

flout foreign opinion by indulging in barefaced assassinations, he

would be supported owing to the international reputation he had

established in 1900. Arguing from these premises, his instinct

also told him that an appearance of legality must always be

sedulously preserved and the aspirations of the nation nominally

satisfied. For this reason he arranged matters in such a manner as

to appear always as the instrument of fate. For this reason,

although he destroyed the revolutionists on the mid-Yangtsze, to

equalize matters, on the lower Yangtsze he secretly ordered the

evacuation of Nanking by the Imperialist forces so that he might

have a tangible argument with which to convince the Manchus

regarding the root and branch reform which he knew was necessary.

That reform had been accepted in principle by the Throne when it

agreed to the so-called Nineteen Fundamental Articles, a corpus of

demands which all the Northern Generals had endorsed and had

indeed insisted should be the basis of government before they

would fight the rebellious South in 1911. There is reason to

believe that provided he had been made de facto Regent, Yuan Shih-

kai would have supported to the end a Manchu Monarchy. But the

surprising swiftness of the Revolutionary Party's action in

proclaiming the Republic at Nanking on the 1st January, 1912, and

the support which foreign opinion gave that venture confused him.

He had already consented to peace negotiations with the

revolutionary South in the middle of December, 1911, and once he

was drawn into those negotiations his policy wavered, the

armistice in the field being constantly extended because he saw

that the Foreign Powers, and particularly England, were averse

from further civil war. Having dispatched a former lieutenant,

Tong Shao-yi, to Shanghai as his Plenipotentiary, he soon found

himself committed to a course of action different from what he had

originally contemplated. South China and Central China insisted so

vehemently that the only solution that was acceptable to them was

the permanent and absolute elimination of the Manchu Dynasty, that

he himself was half-convinced, the last argument necessary being

the secret promise that he should become the first President of

the united Republic. In the circumstances, had he been really

loyal, it was his duty either to resume his warfare or resign his

appointment as Prime Minister and go into retirement. He did

neither. In a thoroughly characteristic manner he sought a middle

course, after having vaguely advocated a national convention to

settle the matter. By specious misrepresentation the widow of the

Emperor Kwang Hsu--the Dowager Empress Lung Yu who had succeeded

the Prince Regent Ch'un in her care of the interests of the child

Emperor Hsuan Tung--was induced to believe that ceremonial

retirement was the only course open to the Dynasty if the country

was to be saved from disruption and partition. There is reason to

believe that the Memorial of all the Northern Generals which was

telegraphed to Peking on the 28th January, 1912, and which advised

abdication, was inspired by him. In any case it was certainly Yuan

Shih-kai, who drew up the so-called Articles of Favourable

Treatment for the Manchu House and caused them to be telegraphed

to the South, whence they were telegraphed back to him as the

maximum the Revolutionary Party was prepared to concede: and by a

curious chance the attempt made to assassinate him outside the

Palace Gates actually occurred on the very day he had submitted an

outline of these terms on his bended knees to the Empress Dowager

and secured their qualified acceptance. The pathetic attempt to

confer on him as late as the 26th January the title of Marquess,

the highest rank of nobility which could be given a Chinese, an

attempt which was four times renewed, was the last despairing

gesture of a moribund power. Within very few days the Throne

reluctantly decreed its own abdication in three extremely curious

Edicts which are worthy of study in the appendix. They prove

conclusively that the Imperial Family believed that it was only

abdicating its political power, whilst retaining all ancient

ceremonial rights and titles. Plainly the conception of a

Republic, or a People's Government, as it was termed in the native

ideographs, was unintelligible to Peking.

Yuan Shih-kai had now won everything he wished for. By securing

that the Imperial Commission to organize the Republic and re-unite

the warring sections was placed solely in his hands, he prepared

to give a type of Government about which he knew nothing a trial.

It is interesting to note that he held to the very end of his life

that he derived his powers solely from the Last Edicts, and in

nowise from his compact with the Nanking Republic which had

instituted the so-called Provisional Constitution. He was careful,

however, not to lay this down categorically until many months

later when his dictatorship seemed undisputed. But from the day of

the Manchu Abdication almost, he was constantly engaged in

calculating whether he dared risk everything on one throw of the

dice and ascend the Throne himself; and it is precisely this which

imparts such dramatic interest to the astounding story which

follows.

CHAPTER III

THE DREAM REPUBLIC

(FROM THE 1ST JANUARY, 1912, TO THE DISSOLUTION OF PARLIAMENT)

To describe briefly and intelligibly the series of transactions

from the 1st January, 1912, when the Republic was proclaimed at

Nanking by a handful of provincial delegates, and Dr. Sun Yat Sen

elected Provisional President, to the coup d'etat of 4th November,

1913, when Yuan Shih-kai, elected full President a few weeks

previously, after having acted as Chief Executive for twenty

months, boldly broke up Parliament and made himself de facto

Dictator of China, is a matter of extraordinary difficulty.

All through this important period of Chinese history one has the

impression that one is in dreamland and that fleeting emotions

take the place of more solid things. Plot and counter-plot follow

one another so rapidly that an accurate record of them all would

be as wearisome as the Book of Chronicles itself; whilst the

amazing web of financial intrigue which binds the whole together

is so complex--and at the same time so antithetical to the

political struggle--that the two stories seem to run counter to

one another, although they are as closely united as two assassins

pledged to carry through in common a dread adventure. A huge

agglomeration of people estimated to number four hundred millions,

being left without qualified leaders and told that the system of

government, which had been laid down by the Nanking Provisional

Constitution and endorsed by the Abdication Edicts, was a system

in which every man was as good as neighbour, swayed meaninglessly

to and fro, vainly seeking to regain the equilibrium which had

been so sensationally lost. A litigious spirit became so universal

that all authority was openly derided, crimes of every description

being so common as to force most respectable men to withdraw from

public affairs and leave a bare rump of desperadoes in power.

Long embarrassed by the struggle to pay her foreign loans and

indemnities, China was also virtually penniless. The impossibility

of arranging large borrowings on foreign markets without the open

support of foreign governments--a support which was hedged round

with conditions--made necessary a system of petty expedients under

which practically every provincial administration hypothecated

every liquid asset it could lay hands upon in order to pay the

inordinate number of undisciplined soldiery who littered the

countryside. The issue of unguaranteed paper-money soon reached

such an immense figure that the market was flooded with a

worthless currency which it was unable to absorb. The Provincial

leaders, being powerless to introduce improvement, exclaimed that

it was the business of the Central Government as representative of

the sovereign people to find solutions; and so long as they

maintained themselves in office they went their respective ways

with a sublime contempt for the chaos around them.

What was this Central Government? In order successfully to

understand an unparalleled situation we must indicate its nature.

The manoeuvres to which Yuan Shih-kai had so astutely lent himself

from the outbreak of the Revolution had left him at its official

close supreme in name. Not only had he secured an Imperial

Commission from the abdicating Dynasty to organize a popular

Government in obedience to the national wish, but having brought

to Peking the Delegates of the Nanking Revolutionary Body he had

received from them the formal offer of the Presidency.

These arrangements had, of course, been secretly agreed to en bloc

before the fighting had been stopped and the abdication

proclaimed, and were part and parcel of the elaborate scenery

which officialdom always employs in Asia even when it is dealing

with matters within the purview of the masses. They had been made

possible by the so-called "Article of Favourable Treatment" drawn-

up by Yuan Shih-kai himself, after consultation with the

rebellious South. In these Capitulations it had been clearly

stipulated that the Manchu Imperial Family should receive in

perpetuity a Civil List of $4,000,000 Mexican a year, retaining

all their titles as a return for the surrender of their political

power, the bitter pill being gilded in such fashion as to hide its

real meaning, which alone was a grave political error.

In spite of this agreement, however, great mutual suspicion

existed between North and South China. Yuan Shih-kai himself was

unable to forget that the bold attempt to assassinate him in the

Peking streets on the 17th January, when he was actually engaged

in negotiating these very terms of the Abdication, had been

apparently inspired from Nanking; whilst the Southern leaders were

daily reminded by the vernacular press that the man who held the

balance of power had always played the part of traitor in the past

and would certainly do the same again in the near future.

When the Delegates came to Peking in February, by far the most

important matter which was still in dispute was the question of

the oath of office which Yuan Shih-kai was called upon to take to

insure that he would be faithful to the Republic. The Delegates

had been charged specifically to demand on behalf of the seceding

provinces that Yuan Shih-kai should proceed with them to Nanking

to take that oath, a course of action which would have been held

tantamount by the nation to surrender on his part to those who had

been unable to vanquish him in the field. It must also not be

forgotten that from the very beginning a sharp and dangerous

cleavage of opinion existed as to the manner in which the powers

of the new government had been derived. South and Central China

claimed, and claimed rightly, that the Nanking Provincial

Constitution was the Instrument on which the Republic was based:

Yuan Shih-kai declared that the Abdication Edicts, and not the

Nanking Instrument had established the Republic, and that

therefore it lay within his competence to organize the new

government in the way which he considered most fit.

The discussion which raged was suddenly terminated on the night of

the 29th February (1912) when without any warning there occurred

the extraordinary revolt of the 3rd Division, a picked Northern

corps who for forty-eight hours plundered and burnt portions of

the capital without any attempts at interference, there being

little doubt to-day that this manoeuvre was deliberately arranged

as a means of intimidation by Yuan Shih-kai himself. Although the

disorders assumed such dimensions that foreign intervention was

narrowly escaped, the upshot was that the Nanking Delegates were

completely cowed and willing to forget all about forcing the

despot of Peking to proceed to the Southern capital. Yuan Shih-kai

as the man of the hour was enabled on the 10th March, 1912, to

take his oath in Peking as he had wished thus securing full

freedom of action during the succeeding years. [Footnote: The

defective nature of this oath of office will be patent at a

glance: "At the beginning of the Republic there are many things to

be taken care of. I, Yuan Shih-kai, sincerely wish to exert my

utmost to promote the democratic spirit, to remove the dark blots

of despotism, to obey strictly the Constitution, and to abide by

the wish of the people, so as to place the country in a safe,

united, strong, and firm position, and to effect the happiness and

welfare of the divisions of the Chinese race. All these wishes I

will fulfil without fail. As soon as a new President is elected by

the National Assembly I shall at once vacate my present position.

With all sincerity I take this oath before the people of China.

"Dated the tenth day of March in the First Year of the Republic of

China (1912)."

(Signed) Yuan Shih-kai.]

It was on this astounding basis--by means of an organized revolt--

that the Central Government was re-organized; and every act that

followed bears the mark of its tainted parentage. Accepting

readily as his Ministers in the more unimportant government

Departments the nominees of the Southern Confederacy (which was

now formally dissolved), Yuan Shih-kai was careful to reserve for

his own men everything that concerned the control of the army and

the police, as well as the all-important ministry of finance. The

framework having been thus erected, attention was almost

immediately concentrated on the problem of finding money, an

amazing matter which would weary the stoutest reader if given in

all its detail but which being part and parcel of the general

problem must be referred to.

Certain essential features can be very rapidly exposed. We have

already made clear the purely economic nature of the forces which

had sapped the foundations of Chinese society. Primarily it had

been the disastrous nature of Chinese gold-indebtedness which had

given the new ideas the force they required to work their will on

the nation. And just because the question of this gold-

indebtedness had become so serious and such a drain on the nation,

some months before the outbreak of the Revolution an arrangement

had been entered into with the bankers of four nations for a

Currency Loan of 10,000,000 pounds with which to make an organized

effort to re-establish internal credit. But this loan had never

actually been floated, as a six months' safety clause had

permitted a delay during which the Revolution had come. It was

therefore necessary to begin the negotiations anew; and as the

rich prizes to be won in the Chinese lottery had attracted general

attention in the European financial world through the

advertisement which the Revolution had given the country, a host

of alternative loan proposals now lay at the disposal of Peking.

Consequently an extraordinary chapter of bargaining commenced.

Warned that an International Debt Commission was the goal aimed at

by official finance, Yuan Shih-kai and the various parties who

made up the Government of the day, though disagreeing on almost

every other question, were agreed that this danger must be fought

as a common enemy. Though the Four-Power group alleged that they

held the first option on all Chinese loans, money had already been

advanced by a Franco-Belgian Syndicate to the amount of nearly two

million pounds during the critical days of the Abdication. Furious

at the prospect of losing their percentages, the Four Power group

made the confusion worse confounded by blocking all competing

proposals and closing every possible door. Russia and Japan, who

had hitherto not been parties to the official consortium,

perceiving that participation had become a political necessity,

now demanded a place which was grudgingly accorded them; and it

was in this way that the celebrated six-power Group arose.

It was round this group and the proposed issue of a 60,000,000

pounds loan to reorganize Chinese finance that the central battle

raged. The Belgian Syndicate, having been driven out of business

by the financial boycott which the official group was strong

enough to organize on the European bourses, it remained for China

to see whether she could not find some combination or some man who

would be bold enough to ignore all governments.

Her search was not in vain. In September (1912) a London

stockbroker, Mr. Birch Crisp, determined to risk a brilliant coup

by negotiating by himself a Loan of 10,000,000 pounds; and the

world woke up one morning to learn that one man was successfully

opposing six governments. The recollection of the storm raised in

financial circles by this bold attempt will be fresh in many

minds. Every possible weapon was brought into play by

international finance to secure that the impudence of financial

independence should be properly checked; and so it happened that

although 5,000,000 pounds was secured after an intense struggle,

it was soon plain that the large requirements of a derelict

government could not be satisfied in this Quixotic manner. Two

important points had, however, been attained; first, China was

kept financially afloat during the year 1912 by the independence

of a single member of the London Stock Exchange; secondly, using

this coup as a lever the Peking Government secured better terms

than otherwise would have been possible from the official

consortium.

Meanwhile the general internal situation remained deplorable.

Nothing was done for the provinces whose paper currency was

depreciating from month to month in an alarming manner; whilst the

rivalries between the various leaders instead of diminishing

seemed to be increasing. The Tutuhs, or Military Governors, acting

precisely as they saw fit, derided the authority of Peking and

sought to strengthen their old position by adding to their armed

forces. In the capital the old Manchu court, safely entrenched in

the vast Winter Palace from which it has not even to-day been

ejected (1917) published daily the Imperial Gazette, bestowing

honours and decorations on courtiers and clansmen and preserving

all the old etiquette. In the North-western provinces, and in

Manchuria and Mongolia, the socalled Tsung She Tang, or Imperial

Clan Society, intrigued perpetually to create risings which would

hasten the restoration of the fallen House; and although these

intrigues never rose to the rank of a real menace to the country,

the fact that they were surreptitiously supported by the Japanese

secret service was a continual source of anxiety. The question of

Outer Mongolia was also harassing the Central Government. The

Hutuktu or Living Buddha of Urga--the chief city of Outer

Mongolia--had utilized the revolution to throw off his allegiance

to Peking; and the whole of this vast region had been thrown into

complete disorder--which was still further accentuated when Russia

on the 21st October (1912) recognized its independence. It was

known that as a pendent to this Great Britain was about to insist

on the autonomy of Tibet,--a development which greatly hurt

Chinese pride.

On the 15th August, 1912, the deplorable situation was well-

epitomised by an extraordinary act in Peking, when General Chang

Cheng-wu, one of the "heroes" of the original Wuchang rising, who

had been enticed to the capital, was suddenly seized after a

banquet in his honour and shot without trial at midnight.

This event, trivial in itself during times when judicial murders

were common, would have excited nothing more than passing interest

had not the national sentiment been so aroused by the chaotic

conditions. As it was it served to focus attention on the general

maladministration over which Yuan Shih-kai ruled as provisional

President. "What is my crime?" had shrieked the unhappy

revolutionist as he had been shot and then bayonetted to death.

That query was most easily answered. His crime was that he was not

strong enough or big enough to compete against more sanguinary

men, his disappearance being consequently in obedience to an

universal law of nature. Yuan Shih-kai was determined to assert

his mastery by any and every means; and as this man had flouted

him he must die.

The uproar which this crime aroused was, however, not easily

appeased; and the Advisory Council, which was sitting in Peking

pending the assembling of the first Parliament, denounced the

Provisional President so bitterly that to show that these

reproaches were ill-deserved he invited Dr. Sun Yat-sen to the

capital treating him with unparalleled honours and requesting him

to act as intermediary between the rival factions. All such

manoeuvres, however, were inspired with one object,--namely to

prove how nobody but the master of Peking could regulate the

affairs of the country.

Still no Parliament was assembled. Although the Nanking

Provisional Constitution had stipulated that one was to meet

within ten months i. e. before 1st November, 1912, the elections

were purposely delayed, the attention of the Central Government

being concentrated on the problem of destroying all rivals, and

everything being subordinate to this war on persons. Rascals,

getting daily more and more out of hand, worked their will on rich

and poor alike, discrediting by their actions the name of

republicanism and destroying public confidence--which was

precisely what suited Yuan Shih-kai. Dramatic and extraordinary

incidents continually inflamed the public mind, nothing being too

singular for those remarkable days.

Very slowly the problem developed, with everyone exclaiming that

foreign intervention was becoming inevitable. With the beginning

of 1913, being unable to delay the matter any longer, Yuan Shih-

kai allowed elections to be held in the provinces. He was so badly

beaten at the polls that it seemed in spite of his military power

that he would be outvoted and outmanoeuvred in the new National

Assembly and his authority undermined. To prevent this a fresh

assassination was decided upon. The ablest Southern leader, Sung

Chiao-jen, just as he was entraining for Peking with a number of

Parliamentarians at Shanghai, was coolly shot in a crowded railway

station by a desperado who admitted under trial that he had been

paid 200 pounds for the job by the highest authority in the land,

the evidence produced in court including telegrams from Peking

which left no doubt as to who had instigated the murder.

The storm raised by this evil measure made it appear as if no

parliament could ever assemble in Peking. But the feeling had

become general that the situation was so desperate that action had

to be taken. Not only was their reputation at stake, but the

Kuomingtang or Revolutionary Party now knew that the future of

their country was involved just as much as the safety of their own

lives; and so after a rapid consultation they determined that they

would beard the lion in his den. Rather unexpectedly on the 7th

April (1913) Parliament was opened in Peking with a huge Southern

majority and the benediction of all Radicals. [Footnote: The

Parliament of China is composed of a House of Representatives

numbering 596 members and a Senate of 274. The Representatives are

elected by means of a property and educational franchise which is

estimated to give about four million voters (1 per cent of the

population) although in practice relatively few vote. The Senate

is elected by the Provincial Assemblies by direct ballot. In the

opinion of the writer, the Chinese Parliament in spite of obvious

shortcoming, is representative of the country in its present

transitional stage.] Hopes rose with mercurial rapidity as a

solution at last seemed in sight. But hardly had the first

formalities been completed and Speakers been elected to both

Houses, than by a single dramatic stroke Yuan Shih-kai reduced to

nought these labours by stabbing in the back the whole theory and

practice of popular government.

The method he employed was simplicity itself, and it is peculiarly

characteristic of the man that he should have been so bluntly

cynical. Though the Provisional Nanking Constitution, which was

the "law" of China so far as there was any law at all, had laid

down specifically in article XIX that all measures affecting the

National Treasury must receive the assent of Parliament, Yuan

Shih-kai, pretending that the small Advisory Council which had

assisted him during the previous year and which had only just been

dissolved, had sanctioned a foreign loan, peremptorily ordered the

signature of the great Reorganization Loan of 25,000,000 pounds

which had been secretly under negotiation all Winter with the

financial agents of six Powers, [Footnote: The American Group at

the last moment dropped out of the Sextuple combination (prior to

the signature of the contract) after President Wilson had made his

well-known pronouncement deprecating the association of Americans

in any financial undertakings which impinged upon the rights of

sovereignty of a friendly Power,--which was his considered view of

the manner in which foreign governments were assisting their

nationals to gain control of the Salt Administration. The exact

language the President used was that the conditions of the loan

seemed "to touch very nearly the administrative independence of

China itself," and that a loan thus obtained was "obnoxious" to

the principles upon which the American government rests. It is to

be hoped that President Wilson's dictum will be universally

accepted after the war and that meddling in Chinese affairs will

cease.] although the rupture which had come in the previous June

as a forerunner to the Crisp loan had caused the general public to

lose sight of the supreme importance of the financial factor.

Parliament, seeing that apart from the possibility of a Foreign

Debt Commission being created something after the Turkish and

Egyptian models, a direct challenge to its existence had been

offered, raged and stormed and did its utmost to delay the

question; but the Chief Executive having made up his mind shut

himself up in his Palace and absolutely refused to see any

Parliamentary representatives. Although the Minister of Finance

himself hesitated to complete the transaction in the face of the

rising storm and actually fled the capital, he was brought back by

special train and forced to complete the agreement. At four

o'clock in the morning on the 25th April the last documents were

signed in the building of a foreign bank and the Finance Minister,

galloping his carriage suddenly out of the compound to avoid

possible bombs, reported to his master that at last--in spite of

the nominal foreign control which was to govern the disbursement--

a vast sum was at his disposal to further his own ends.

Safe in the knowledge that possession is nine points of the law,

Yuan Shih-kai now treated with derision the resolutions which

Parliament passed that the transaction was illegal and the loan

agreement null and void. Being openly backed by the agents of the

Foreign Powers, he immediately received large cash advances which

enabled him to extend his power in so many directions that further

argument with him seemed useless. It is necessary to record that

the Parliamentary leaders had almost gone down on their knees to

certain of the foreign Ministers in Peking in a vain attempt to

persuade them to delay--as they could very well have done--the

signature of this vital Agreement for forty-eight hours so that it

could be formally passed by the National Assembly, and thus save

the vital portion of the sovereignty of the country from passing

under the heel of one man. But Peking diplomacy is a perverse and

disagreeable thing; and the Foreign Ministers of those days,

although accredited to a government which while it had not then

been formally recognized as a Republic by any Power save the

United States, was bound to be so very shortly, were determined to

be reactionary and were at heart delighted to find things running

back normally to absolutism.

[Footnote: The United States accorded formal recognition to the

Republic on the election of the Speakers of the two Houses of

Parliament: the other Treaty Powers delayed recognition until Yuan

Shih-kai had been elected full President in October. It has been

very generally held that the long delay in foreign recognition of

the Republic contributed greatly to its internal troubles by

making every one doubt the reality of the Nanking transaction.

Most important, however, is the historical fact that a group of

Powers numbering the two great leaders of democracy in Europe--

England and France--did everything they could in Peking to

enthrone Yuan Shih-kai as dictator.]

High finance had at last got hold of everything it required from

China and was in no mood to relax the monopoly of the salt

administration which the Loan Agreement conferred. Nor must be the

fact be lost sight of that of the nominal amount of 25,000,000

pounds which had been borrowed, fully half consisted of repayments

to foreign Banks and never left Europe. According to the schedules

attached to the Agreement, Annex A, comprising the Boxer arrears

and bank advances, absorbed 4,317,778 pounds: Annex B, being so-

called provincial loans, absorbed a further 2,870,000 pounds:

Annex C, being liabilities shortly maturing, amounted to 3,592,263

pounds: Annex D, for disbandment of troops, amounted to 3,000,000

pounds: Annex C, to cover current administrative expenses totalled

5,500,000 pounds: whilst Annex E which covered the reorganization

of the Salt Administration, absorbed the last 2,000,000 pounds.

The bank profits on this loan alone amounted to 1 1/4 million

pounds; whilst Yuan Shih-kai himself was placed in possession by a

system of weekly disbursements of a sum roughly amounting to ten

million sterling, which was amply sufficient to allow him to wreak

his will on his fellow-countrymen. Exasperated to the pitch of

despair by this new development, the Central and Southern

provinces, after a couple of months' vain argument, began openly

to arm. On the 10th July in Kiangse province on the river Yangtsze

the Northern garrisons were fired upon from the Hukow forts by the

provincial troops under General Li Lieh-chun and the so-called

Second Revolution commenced.

The campaign was short and inglorious. The South, ill-furnished

with munitions and practically penniless, and always confronted by

the same well-trained Northern Divisions who had proved themselves

invincible only eighteen months before, fought hard for a while,

but never became a serious menace to the Central Government owing

to the lack of co-operation between the various Rebel forces in

the field. The Kiangse troops under General Li Lieh-chun, who

numbered at most 20,000 men, fought stiffly, it is true, for a

while but were unable to strike with any success and were

gradually driven far back from the river into the mountains of

Kiangse where their numbers rapidly melted away. The redoubtable

revolutionary Huang Hsin, who had proved useful as a propagandist

and a bomb-thrower in earlier days, but who was useless in serious

warfare, although he assumed command of the Nanking garrison which

had revolted to a man, and attempted a march up the Pukow railway

in the direction of Tientsin, found his effort break down almost

immediately from lack of organization and fled to Japan. The

Nanking troops, although deserted by their leader, offered a

strenuous resistance to the capture of the southern capital which

was finally effected by the old reactionary General Chang Hsun

operating in conjunction with General Feng Kuo-chang who had been

dispatched from Peking with a picked force. The attack on the

Shanghai arsenal which had been quietly occupied by a small

Northern Garrison during the months succeeding the great loan

transaction, although pushed with vigour by the South, likewise

ultimately collapsed through lack of artillery and proper

leadership. The navy, which was wholly Southern in its sympathies

and which had been counted upon as a valuable weapon in cutting

off the whole Yangtsze Valley, was at the last moment purchased to

neutrality by a liberal use of money obtained from the foreign

banks, under, it is said, the heading of administrative expenses!

The turbulent city of Canton, although it also rose against the

authority of Peking, had been well provided for by Yuan Shih-kai.

A border General, named Lung Chi-Kwang, with 20,000 semi-savage

Kwangsi troops had been moved near the city and at once attacked

and overawed the garrison. Appointed Military Governor of the

province in return for his services, this Lung Chi-kwang, who was

an infamous brute, for three years ruled the South with heartless

barbarity, until he was finally ejected by the great rising of

1916. Thoroughly disappointed in this and many other directions

the Southern Party was now emasculated; for the moneyed classes

had withheld their support to the end, and without money nothing

is possible in China. The 1913 outbreak, after lasting a bare two

months, ignominiously collapsed with the flight of every one of

the leaders on whose heads prices were put. The road was now left

open for the last step Yuan Shih-kai had in mind, the coup against

Parliament itself, which although unassociated in any direct way

with the rising, had undoubtedly maintained secret relations with

the rebellious generals in the field.

Parliament had further sinned by appointing a Special

Constitutional Drafting Committee which had held its sittings

behind closed doors at the Temple of Heaven. During this drafting

of the Permanent Constitution, admittance had been absolutely

refused to Yuan Shih-kai's delegates who had been sent to urge a

modification of the decentralization which had been such a

characteristic of the Nanking Instrument. Such details as

transpired showed that the principle of absolute money-control was

not only to be the dominant note in the Permanent Constitution,

but that a new and startling innovation was being included to

secure that a de facto Dictatorship should be rendered impossible.

Briefly, it was proposed that when Parliament was not actually in

session there should be left in Peking a special Parliamentary

Committee, charged with supervising and controlling the Executive,

and checking any usurpation of power.

This was enough for Yuan Shih-kai: he felt that he was not only an

object of general suspicion but that he was being treated with

contempt. He determined to finish with it all. He was as yet,

however, only provisional President and it was necessary to show

cunning. Once more he set to work in a characteristic way. By a

liberal use of money Parliament was induced to pass in advance of

the main body of articles the Chapter of the Constitution dealing

with the election and term of office of the President. When that

had been done the two Chambers sitting as an Electoral College,

after the model of the French Parliament, being partly bribed and

partly terrorised by a military display, were induced to elect him

full President.

On the 10th October he took his final oath of office as President

for a term of five years before a great gathering of officials and

the whole diplomatic body in the magnificent Throne Room of the

Winter Palace. Safe now in his Constitutional position nothing

remained for him but to strike. On the 4th November he issued an

arbitrary Mandate, which received the counter-signature of the

whole Cabinet, ordering the unseating of all the so-called

Kuomingtang or Radical Senators and Representatives on the counts

of conspiracy and secret complicity with the July rising and

vaguely referring to the filling of the vacancies thus created by

new elections. [Footnote: According to the official lists

published subsequent to the coup d'etat, 98 Senators and 252

Members of the House of Representatives had their Parliamentary

Certificates impounded by the police as a result of the Mandates

of the 4th November, and were ordered to leave the Capital. In

addition 34 Senators and 54 Members of the Lower House fled from

Peking before their Certificates could be seized. Therefore the

total number affected by the proscription was 132 Senators and 306

Representatives. As the quorums in the case of both Houses are

half the total membership, any further sittings were thus made

impossible.] The Metropolitan Police rigorously carried out the

order and although no brutality was shown, it was made clear that

if any of the indicted men remained in Peking their lives would be

at stake. Having made it impossible for Parliament to sit owing to

the lack of quorums, Yuan Shih-kai was able to proceed with his

work of reorganization in the way that best suited him; and the

novel spectacle was offered of a truly Mexican situation created

in the Far East by and with the assent of the Powers. It is

significant that the day succeeding this coup d'etat of the 4th

November the agreement conceding autonomy to Outer Mongolia was

signed with Russia, China simply retaining the right to station a

diplomatic representative at Urga. [Footnote: A full copy of this

agreement will be found in the appendix.]

In spite of his undisputed power, matters however did not improve.

The police-control, judiciously mingled with assassinations, which

was now put in full vigour was hardly the administration to make

room for which the Manchus had been expelled; and the country

secretly chafed and cursed. But the disillusionment of the people

was complete. Revolt had been tried in vain; and as the support

which the Powers were affording to this regime was well understood

there was nothing to do but to wait, safe in the knowledge that

such a situation possessed no elements of permanency.

CHAPTER IV

THE DICTATOR AT WORK

(FROM THE COUP D'ETAT OF THE 4TH NOVEMBER, 1913, TO THE OUTBREAK

OF THE WORLD-WAR 1ST AUGUST, 1914)

With the Parliament of China effectively destroyed, and the

turbulent Yangtsze Valley dragooned into sullen submission, Yuan

Shih-kai's task had become so vastly simplified that he held the

moment to have arrived when he could openly turn his hand to the

problem of making himself absolutely supreme, de jure as well as

de facto. But there was one remaining thing to be done. To drive

the last nail into the coffin of the Republic it was necessary to

discredit and virtually imprison the man who was Vice-President.

It is highly characteristic that although he had received from the

hero of the Wuchang Rising the most loyal co-operation--a co-

operation of a very arduous character since the Commander of the

Middle Yangtsze had had to resist the most desperate attempts to

force him over to the side of the rebellion in July, 1913,

nevertheless, Yuan Shih-kai was determined to bring this man to

Peking as a prisoner of state.

It was just the fact that General Li Yuan-hung was a national hero

which impelled the Dictator to action. In the election which had

been carried out in October, 1913, by the National Assembly

sitting as a National Convention, in spite of every effort to

destroy his influence, the personal popularity of the Vice-

President had been such that he had received a large number of

votes for the office of full President--which had necessitated not

one but three ballots being taken, making most people declare that

had there been no bribery or intimidation he would have probably

been elected to the supreme office in the land, and ousted the

ambitious usurper. In such circumstances his complete elimination

was deemed an elementary necessity. To secure that end Yuan Shih-

kai suddenly dispatched to Wuchang--where the Vice-President had

resided without break since 1911--the Minister of War, General

Tuan Chi-jui, with implicit instructions to deal with the problem

in any way he deemed satisfactory, stopping short of nothing

should his victim prove recalcitrant.

Fortunately General Tuan Chi-jui did not belong to the ugly breed

of men Yuan Shih-kai loved to surround himself with; and although

he was a loyal and efficient officer the politics of the assassin

were unknown to him. He was therefore able to convince the Vice-

President after a brief discussion that the easiest way out of the

ring of intriguers and plotters in which Yuan Shih-kai was rapidly

surrounding him in Wuchang was to go voluntarily to the capital.

There at least he would be in daily touch with developments and

able to fight his own battles without fear of being stabbed in the

back; since under the eye of the foreign Legations even Yuan Shih-

kai was exhibiting a certain timidity. Indeed after the outcry

which General Chang Cheng-wu's judicial murder had aroused he had

reserved his ugliest deeds for the provinces, only small men being

done to death in Peking. Accordingly, General Li Yuan-hung packed

a bag and accompanied only by an aide-de-camp left abruptly for

the capital where he arrived on the 11th December, 1913.

A great sensation was caused throughout China by this sudden

departure, consternation prevailing among the officers and men of

the Hupeh (Wuchang) army when the newspapers began to hint that

their beloved chief had been virtually abducted. Although

cordially received by Yuan Shih-kai and given as his personal

residence the Island Palace where the unfortunate Emperor Kwang

Hsu had been so long imprisoned by the Empress Dowager Tsu Hsi

after her coup d'etat of 1898, it did not take long for General Li

Yuan-hung to understand that his presence was a source of

embarrassment to the man who would be king. Being, however, gifted

with an astounding fund of patience, he prepared to sit down and

allow the great game which he knew would now unroll to be played

to its normal ending. What General Li Yuan-hung desired above all

was to be forgotten completely and absolutely--springing to life

when the hour of deliverance finally arrived. His policy was shown

to be not only psychologically accurate, but masterly in a

political sense. The greatest ally of honesty in China has always

been time, the inherent decency of the race finally discrediting

scoundrelism in every period of Chinese history.

The year 1914 dawned with so many obstacles removed that Yuan

Shih-kai became more and more peremptory in his methods. In

February the young Empress Lun Yi, widow of the Emperor Kwang Hsu,

who two years previously in her character of guardian of the boy-

Emperor Hsuan Tung, had been cajoled into sanctioning the

Abdication Edicts, unexpectedly expired, her death creating

profound emotion because it snapped the last link with the past.

Yuan Shih-kai's position was considerably strengthened by this

auspicious event which secretly greatly delighted him; and by his

order for three days the defunct Empress lay in State in the Grand

Hall of the Winter Palace and received the obeisance of countless

multitudes who appeared strangely moved by this hitherto unknown

procedure. There was now only a nine-year old boy between the

Dictator and his highest ambitions. Two final problems still

remained to be dealt with: to give a legal form to a purely

autocratic rule, and to find money to govern the country. The

second matter was vastly more important than the first to a man

who did not hesitate to base his whole polity on the teachings of

Machiavelli, legality being looked upon as only so much political

window-dressing to placate foreign opinion and prevent

intervention, whilst without money even the semblance of the

rights of eminent domain could not be preserved. Everything indeed

hinged on the question of finding money.

There was none in China, at least none for the government.

Financial chaos still reigned supreme in spite of the great

Reorganization Loan of 25,000,000 pounds, which had been carefully

arranged more for the purpose of wiping-out international

indebtedness and balancing the books of foreign bankers than to

institute a modern government. All the available specie in the

country had been very quietly remitted in these troubled times by

the native merchant-guilds from every part of China to the vast

emporium of Shanghai for safe custody, where a sum not far short

of a hundred million ounces now choked the vaults of the foreign

banks,--being safe from governmental expropriation. The collection

of provincial revenues having been long disorganized, Yuan Shih-

kai, in spite of his military dictatorship, found it impossible to

secure the proper resumption of the provincial remittances. Fresh

loans became more and more sought after; by means of forced

domestic issues a certain amount of cash was obtained, but the

country lived from hand to mouth and everybody was unhappy. Added

to this by March the formidable insurrection of the "White Wolf"

bandits in Central China--under the legendary leadership of a man

who was said to be invulnerable--necessitated the mobilization of

a fresh army which ran into scores of battalions and which was

vainly engaged for nearly half a year in rounding-up this replica

of the Mexican Villa. So demoralized had the army become from long

license that this guerilla warfare was waged with all possible

slackness until a chance shot mortally wounded the chief brigand

and his immense following automatically dispersed. During six

months these pests had ravaged three provinces and menaced one of

the most strongly fortified cities in Asia--the old capital of

China, Hsianfu, whither the Manchu Court had fled in 1900.

Meanwhile wholesale executions were carried out in the provinces

with monotonous regularity and all attempts at rising ruthlessly

suppressed. In Peking the infamous Chih Fa Chu or Military Court--

a sort of Chinese Star-Chamber--was continually engaged in

summarily dispatching men suspected of conspiring against the

Dictator. Even the printed word was looked upon as seditious, an

unfortunate native editor being actually flogged to death in

Hankow for telling the truth about conditions in the riverine

districts. These cruelties made men more and more determined to

pay off the score the very first moment that was possible.

Although he was increasingly pressed for ready money, Yuan Shih-

kai, by the end of April, 1914, had the situation sufficiently in

hand to bring out his supreme surprise,--a brand-new Constitution

promulgated under the euphonious title of "The Constitutional

Compact."

This precious document, which had no more legality behind it as a

governing instrument than a private letter, can be studied by the

curious in the appendix where it is given in full: here it is

sufficient to say that no such hocuspocus had ever been previously

indulged in China. Drafted by an American legal adviser, Dr.

Goodnow, who was later to earn unenviable international notoriety

as the endorser of the monarchy scheme, it erected what it was

pleased to call the Presidential System; that is, it placed all

power directly in the hands of the President, giving him a single

Secretary of State after the American model and reducing Cabinet

Ministers to mere Department Chiefs who received their

instructions from the State Department but had no real voice in

the actual government. A new provincial system was likewise

invented for the provinces, the Tutuhs or Governors of the

Revolutionary period being turned into Chiang Chun or Military

Officials on the Manchu model and provincial control absolutely

centralized in their hands, whilst the Provincial Assemblies

established under the former dynasty were summarily abolished. The

worship at the Temple of Heaven was also re-established and so was

the official worship of Confucius--both Imperialistic measures--

whilst a brand-new ceremony, the worship of the two titulary

Military Gods, was ordered so as to inculcate military virtue! It

was laid down that in the worship of Heaven the President would

wear the robes of the Dukes of the Chow dynasty, B. C. 1112, a

novel and interesting republican experiment. Excerpts from two

Mandates which belong to these days throw a flood of light on the

kind of reasoning which was held to justify these developments.

The first declares:

... "In a Republic the Sovereign Power is vested in the people,

and the main principle is that all things should be determined in

accordance with the desires of the majority. These desires may be

embraced by two words, namely, existence and happiness. I, the

President, came from my farm because I was unable to bear the

eternal sufferings of the innocent people. I assumed office and

tried vainly to soothe the violent feelings. The greatest evil

nowadays is the misunderstanding of true principles. The

Republicans on the pretext of public interest try to attain

selfish ends, some going so far as to consider the forsaking of

parents as a sign of liberty and regarding the violation of the

laws as a demonstration of equality. I will certainly do my best

to change all this."

In the second Mandate Yuan Shih-kai justifies the re-establishment

of the Confucian worship in a singular way, incidentally showing

how utterly incomprehensible to him is the idea of representative

government, since he would appear to have imagined that by

dispatching circular telegrams to the provincial capitals and

receiving affirmative replies from his creatures all that is

necessary in the way of a national endorsement of high

constitutional measures had been obtained.

... "China's devotion to Confucius began with the reign of the

Emperor Hsiaowu, of the Han dynasty, who rejected the works of the

hundred authors, making the six Confucian classics the leading

books. Confucius, born in the time of the tyranny of the nobility,

in his works declared that after war disturbances comes peace, and

with peace real tranquillity and happiness. This, therefore, is

the fountain of Republicanism. After studying the history of China

and consulting the opinions of scholars, I find that Confucius

must remain the teacher for thousands of generations. But in a

Republic the people possess sovereign power. Therefore circular

telegrams were dispatched to all the provinces to collect

opinions, and many affirmative answers have already been received.

Therefore, all colleges, schools, and public bodies are ordered to

revive the sacrificial ceremony of Confucius, which shall be

carefully and minutely ordained" ...

With the formal promulgation of the Constitutional Compact the

situation had become bizarre in the extreme. Although even the

child-mind might have known that powers for Constitution-making

were vested solely in the National Assembly, and that the re-

division of authority which was now made was wholly illegal,

because Yuan Shih-kai as the bailiff of the Powers was able to do

much as he pleased; and at a moment when Liberal Europe was on the

eve of plunging into the most terrible war in history in defence

of right against might, reaction and Prussianism of the most

repulsive type were passed by unnoticed in China. In a few loosely

drafted chapters not only was the governance of the country

rearranged to suit a purely dictational rule, but the actual

Parliament was permanently extinguished and replaced by a single

Legislative Chamber (Li Fa Yuan) which from its very composition

could be nothing but a harmless debating Society with no greater

significance than a dietine of one of the minor German States.

Meanwhile, as there was no intention of allowing even this chamber

to assemble until the last possible moment, a Senate was got

together as the organ of public opinion, ten Senators being chosen

to draft yet another Constitution which would be the final one.

Remarkable steps were taken a little later in the year (1914) to

secure that the succession to the dictatorship should be left in

Yuan Shih-kai's own hands. An elaborate ritual was contrived and

officially promulgated under the title of the Presidential

Succession Law on the 29th December whereby the Chief Executive

selected three names which were placed in a gold box in a Stone

House in the grounds of the Palace,--the gold box only to be

opened when death or incapacity deprived the nation of its self-

appointed leader. For the term of the presidency was openly

converted into one of ten years and made subject to indefinite

renewal by this precious instrument which was the work of the

puppet senate. In case of the necessity of an election suddenly

arising, an Electoral College was to be formed by fifty members

drawn from the Legislative Chamber and fifty from the Senate, the

Presidential candidates consisting of the President (if he so

desired) and the three whose names were in the gold box in the

Stone House in the Palace grounds. It is not definitely known to

whom these provisions were due, but it is known that at least they

were not the work of the American adviser.

His responsibility, however, was very great; for the keynote of

all this scheme, according to Dr. Goodnow, [Footnote: It is

significant that Dr. Goodnow carried out all his Constitutional

Studies in Germany, specializing in that department known as

Administrative Law which has no place, fortunately, in Anglo-Saxon

conceptions of the State.] was "centralization of power," a

parrot-like phrase which has deluded better men than ever came to

China and which--save as a method necessary during a state of war

--should have no place in modern politics. But it was precisely

this which appealed to Yuan Shih-kai. Although as President he was

ex officio Commander-in-Chief of the Army and Navy, he now turned

this office into a direct and special organization installed

within the precincts of the Imperial City. The flags of this new

dictatorship constantly floated over his palace, whilst scores of

officers were appointed to scores of departments which were

directly concerned with centralizing the control of every armed

man in the country in the master's hands. Meanwhile in order to

placate provincial commanders, a "Palace of Generals," was created

in Peking to which were brought all men it was held desirable to

emasculate. Here, drawing ample salaries, they could sit in

idleness the livelong day, discussing the battles they had never

fought and intriguing against one another, two occupations in

which the product of the older school of men in China excels.

Provincial levies which had any military virtue, were gradually

disbanded, though many of the rascals and rapscallions, who were

open menaces to good government were left with arms in their hands

so as to be an argument in favour of drastic police-rule. Thus it

is significant of the underlying falseness and weakness of the

dictator's character that he never dared to touch the troops of

the reprobate General Chang Hsun, who had made trouble for years,

and who had nearly embroiled China in war with Japan during the

so-called Second Revolution (July-August, 1913) by massacring some

Japanese civilians in the streets of Nanking when the city was

recaptured. So far from disbanding his men, Chang Hsun managed

constantly to increase his army of 30,000 men on the plea that the

post of Inspector-General of the Yangtsze Valley, which had been

given to him as a reward for refusing to throw in his lot with the

Southern rebels, demanded larger forces. Yuan Shih-kai, although

half-afraid of him, found him at various periods useful as a

counterweight to other generals in the provinces; in any case he

was not the man to risk anything by attempting to crush him. As he

was planted with his men astride of the strategically important

Pukow railway, it was always possible to order him at a moment's

notice into the Yangtsze Valley which was thus constantly under

the menace of fire and sword.

Far and wide Yuan Shih-kai now stretched his nets. He even

employed Americans throughout the United States in the capacity of

press-agents in order to keep American public opinion favourable

to him, hoping to invoke their assistance against his life-enemy--

Japan--should that be necessary. The precise details of this

propaganda and the sums spent in its prosecution are known to the

writer; if he refrains from publishing them it is solely for

reasons of policy. England it was not necessary to deal with in

this way. Chance had willed that the British Representative in

Peking should be an old friend who had known the Dictator

intimately since his Korean days; and who faithful to the

extraordinary English love of hero-worship believed that such a

surprising character could do little wrong. British policy which

has always been a somewhat variable quantity in China, owing to

the spasmodic attention devoted to such a distant problem, may be

said to have been non-existent during all this period--a state of

affairs not conducive to international happiness.

Slowly the problem developed in a shiftless, irresolute way.

Unable to see that China had vastly changed, and that government

by rascality had become a physical and moral impossibility, the

Legations in Peking adopted an attitude of indifference leaving

Yuan Shih-kai to wreak his will on the people. The horde of

foreign advisers who had been appointed merely as a piece of

political window-dressing, although they were allowed to do no

work, were useful in running backwards and forwards between the

Legations and the Presidential headquarters and in making each

Power suppose that its influence was of increasing importance. It

was made abundantly clear that in Yuan Shih-kai's estimation the

Legations played in international politics much the same role that

provincial capitals did in domestic politics: so long as you bound

both to benevolent neutrality the main problem--the consolidation

of dictatorial power--could be pushed on with as you wished.

Money, however, remained utterly lacking and a new twenty-five

million sterling loan was spoken of as inevitable--the accumulated

deficit in 1914 being alone estimated at thirty-eight million

pounds. But although this financial dearth was annoying, Chinese

resources were sufficient to allow the account to be carried on

from day to day. Some progress was made in railways, building

concessions being liberally granted to foreign corporations, this

policy having received a great impetus from the manner in which

Dr. Sun Yat Sen had boomed the necessity for better communications

during the short time he had ruled at a National Railway Bureau in

Shanghai, an office from which he had been relieved in 1913 on it

being discovered that he was secretly indenting for quick-firing

guns. Certain questions proved annoying and insoluble, for

instance the Tibetan question concerning which England was very

resolute, as well as the perpetual risings in Inner Mongolia, a

region so close to Peking that constant concentrations of troops

were necessary. But on the whole as time went on there was

increasing indifference both among the Foreign Powers and Chinese

for the extraordinary state of affairs which had been allowed to

grow up.

There was one notable exception, however, Japan. Never relaxing

her grip on a complicated problem, watchful and active, where

others were indifferent and slothful, Japan bided her time.

Knowing that the hour had almost arrived when it would be possible

to strike, Japan was vastly active behind the scenes in China long

before the outbreak of the European war gave her the longed for

opportunity; and largely because of her the pear, which seemed

already almost ripe, finally withered on the tree.

CHAPTER V

THE FACTOR OF JAPAN

(FROM THE OUTBREAK OP THE WORLD-WAR, 1ST AUGUST, 1914, TO THE

FILING OP THE TWENTY-ONE DEMANDS, 18TH JANUARY, 1915)

The thunderclap of the European war shattered the uneasy calm in

China, not because the Chinese knew anything of the mighty issues

which were to be fought out with such desperation and valour, but

because the presence of the German colony of Kiaochow on Chinese

soil and the activity of German cruisers in the Yellow Sea brought

the war to China's very doors. Vaguely conscious that this might

spell disaster to his own ambitious plans, Yuan Shih-kai was

actually in the midst of tentative negotiations with the German

Legation regarding the retrocession of the Kiaochow territory when

the news reached him that Japan, after some rapid negotiations

with her British Ally, had filed an ultimatum on Germany,

peremptorily demanding the handing-over of all those interests

that had been forcibly acquired in Shantung province in the great

leasing-year of 1898.

At once Yuan Shih-kai realized that the Nemesis which had dogged

his footsteps all his life was again close behind him. In the

Japanese attack on Kiaochow he foresaw a web of complications

which even his unrivalled diplomacy might be unable to unravel;

for he knew well from bitter experience that wherever the Japanese

sets his foot there he remains. It is consequently round this

single factor of Japan that the history of the two succeeding

years revolves. From being indisputably the central figure on the

Chinese canvas, Yuan Shih-kai suddenly becomes subordinate to the

terror of Japanese intervention which hangs over him constantly

like a black cloud, and governs every move he made from the 15th

August, 1914, to the day of his dramatic death on the 6th June,

1916. We shall attempt to write down the true explanation of why

this should have been so.

It is extremely hard to discuss the question of Japan for the

benefit of an exclusively Western audience in a convincing way

because Japanese policy has two distinct facets which seem utterly

contradictory, and yet which are in a great measure understandable

if the objects of that diplomacy are set down. Being endowed with

an extraordinary capacity for taking detached views, the Statesmen

of Tokio long ago discerned the necessity of having two

independent policies--an Eastern policy for Eastern Asia and a

Western policy for Western nations--because East and West are

essentially antithetical, and cannot be treated (at least not yet)

in precisely the same manner. Whilst the Western policy is frank

and manly, and is exclusively in the hands of brilliant and

attractive men who have been largely educated in the schools of

Europe and America and who are fully able to deal with all matters

in accordance with the customary traditions of diplomacy, the

Eastern policy is the work of obscurantists whose imaginations are

held by the vast projects which the Military Party believes are

capable of realization in China. There is thus a constant

contradiction in the attitude of Japan which men have sought in

vain to reconcile. It is for this reason that the outer world is

divided into two schools of thought, one believing implicitly in

Japan's bona fides, the other vulgarly covering her with abuse and

declaring that she is the last of all nations in her conceptions

of fair play and honourable treatment. Both views are far-fetched.

It is as true of Japan as it is of every other Government in the

world that her actions are dictated neither by altruism nor by

perfidy, but are merely the result of the faulty working of a

number of fallible brains and as regards the work of

administration in Japan itself the position is equally

extraordinary. Here, at the extreme end of the world, so far from

being in any way threatened, the principle of Divine Right, which

is being denounced and dismembered in Europe as a crude survival

from almost heathen days, stands untouched and still exhibits

itself in all its pristine glory. A highly aristocratic Court,

possessing one of the most complicated and jealously protected

hierarchies in the world, and presided over by a monarch claiming

direct descent from the sacred Jimmu Tenno of twenty-five hundred

years ago, decrees to-day precisely as before, the elaborate

ritual governing every move, every decision and every agreement.

There is something so engaging in this political curiosity,

something so far removed from the vast world-movement now rolling

fiercely to its conclusion, that we may be pardoned for

interpolating certain capital considerations which closely affect

the future of China and therefore cannot fail to be of public

interest.

The Japanese, who owe their whole theocratic conception to the

Chinese, just as they owe all their letters and their learning to

them, still nominally look upon their ruler as the link between

Heaven and Earth, and the central fact dominating their cosmogony.

Although the vast number of well-educated men who to-day crowd the

cities of Japan are fully conscious of the bizarre nature of this

belief in an age which has turned its back on superstition,

nothing has yet been done to modify it because--and this is the

important point--the structure of Japanese society is such that

without a violent upheaval which shall hurl the military clan

system irremediably to the ground, it is absolutely impossible for

human equality to be admitted and the man-god theory to be

destroyed. So long as these two features exist; that is so long as

a privileged military caste supports and attempts to make all-

powerful the man-god theory, so long will Japan be an

international danger-spot because there will lack those democratic

restraints which this war has shown are absolutely essential to

secure a peaceful understanding among the nations. It is for this

reason that Japan will fail to attain the position the art-genius

and industry of her people entitle her to and must limp behind the

progress of the world unless a very radical revision of the

constitution is achieved. The disabilities which arise from an

archaic survival are so great that they will affect China as

adversely as Japan, and therefore should be universally

understood. Japanese history, if stripped of its superficial

aspects, has a certain remarkable quality; it seems steeped in

heroic blood. The doctrine of force, which expresses itself in its

crudest forms in Europe, has always been in Japan a system of

heroic-action so fascinating to humanity at large that until

recent times its international significance has not been realized.

The feudal organization of Japanese society which arose as a

result of the armed conquest of the islands fifteen hundred years

ago, precluded centralizating measures being taken because the

Throne, relying on the virtues of Divine Ancestors rather than on

any well-articulated political theory, was weak in all except

certain quasi-sacerdotal qualities, and forced to rely on great

chieftains for the execution of its mandates as well as for its

defence. The military title of "barbarian-conquering general,"

which was first conferred on a great clan leader eight centuries

ago, was a natural enough development when we remember that the

autochthonous races were even then not yet pushed out of the main

island, and were still battling with the advancing tide of

Japanese civilization which was itself composed of several rival

streams coming from the Asiatic mainland and from the Malayan

archipelagoes. This armed settlement saturates Japanese history

and is responsible for the unending local wars and the

glorification of the warrior. The conception of triumphant

generalship which Hideyoshi attempted unsuccessfully to carry into

Korea in the Sixteenth Century, led directly at the beginning of

the Seventeenth Century to the formal establishment of the

Shogunate, that military dictatorship being the result of the

backwash of the Korean adventure, and the greatest proof of the

disturbance which it had brought in Japanese society. The

persistence of this hereditary military dictatorship for more than

two and a half centuries is a remarkable illustration of the fact

that as in China so in Japan the theocratic conception was

unworkable save in primitive times--civilization demanding

organization rather than precepts and refusing to bow its head to

speechless kings. Although the Restoration of 1868 nominally gave

back to the Throne all it had been forced to leave in other hands

since 1603, that transfer of power was imaginary rather than real,

the new military organization which succeeded the Shogun's

government being the vital portion of the Restoration. In other

words, it was the leaders of Japan's conscript armies who

inherited the real power, a fact made amply evident by the

crushing of the Satsuma Rebellion by these new corps whose

organization allowed them to overthrow the proudest and most

valourous of the Samurai and incidentally to proclaim the triumph

of modern fire-arms.

Now it is important to note that as early as 1874--that is six

years after the Restoration of the Emperor Meiji--these facts were

attracting the widest notice in Japanese society, the agitation

for a Constitution and a popular assembly being very vigourously

pushed. Led by the well-known and aristocratic Itagaki, Japanese

Liberalism had joined battle with out-and-out Imperialism more

than a quarter of a century ago; and although the question of

recovering Tariff and Judicial autonomy and revising the Foreign

Treaties was more urgent in those days, the foreign question was

often pushed aside by the fierceness of the constitutional

agitation.

It was not, however, until 1889 that a Constitution was finally

granted to the Japanese--that instrument being a gift from the

Crown, and nothing more than a conditional warrant to a limited

number of men to become witnesses of the processes of government

but in no sense its controllers. The very first Diet summoned in

1890 was sufficient proof of that. A collision at once occurred

over questions of finance which resulted in the resignation of the

Ministry. And ever since those days, that is for twenty-seven

consecutive years, successive Diets in Japan have been fighting a

forlorn fight for the power which can never be theirs save by

revolution, it being only natural that Socialism should come to be

looked upon by the governing class as Nihilism, whilst the mob-

threat has been very acute ever since the Tokio peace riots of

1905.

Now it is characteristic of the ceremonial respect which all

Japanese have for the Throne that all through this long contest

the main issue should have been purposely obscured. The

traditional feelings of veneration which a loyal and obedient

people feel for a line of monarchs, whose origin is lost in the

mists of antiquity, are such that they have turned what is in

effect an evergrowing struggle against the archaic principle of

divine right into a contest with clan-leaders whom they assert are

acting "unconstitutionally" whenever they choose to assert the

undeniable principles of the Constitution. Thus to-day we have

this paradoxical situation: that although Japanese Liberalism must

from its very essence be revolutionary, i.e., destructive before

it can hope to be constructive, it feigns blindness, hoping that

by suasion rather than by force the principle of parliamentary

government will somehow be grafted on to the body politic and the

emperors, being left outside the controversy, become content to

accept a greatly modified rule.

This hope seems a vain one in the light of all history. Militarism

and the clans are by no means in the last ditch in Japan, and they

will no more surrender their power than would the Russian

bureaucracy. The only argument which is convincing in such a case

is the last one which is ever used; and the mere mention of it by

so-called socialists is sufficient to cause summary arrest in

Japan. Sheltering themselves behind the Throne, and nominally

deriving their latter-day dictatorship from the Imperial mandate,

the military chiefs remain adamant, nothing having yet occurred to

incline them to surrender any of their privileges. By a process of

adaptation to present-day conditions, a formula has now been

discovered which it is hoped will serve many a long year. By

securing by extra-legal means the return of a "majority" in the

House of Representatives the fiction of national support of the

autocracy has been re-invigourated, and the doctrine laid down

that what is good for every other advanced people in the world is

bad for the Japanese, who must be content with what is granted

them and never question the superior intelligence of a privileged

caste. In the opinion of the writer, it is every whit as important

for the peace of the world that the people of Japan should govern

themselves as it is for the people of Germany to do so. The

persistence of the type of military government which we see to-day

in Japan is harmful for all alike because it is as antiquated as

Tsarism and a perpetual menace to a disarmed nation such as China.

So long as that government remains, so long must Japan remain an

international suspect and be denied equal rights in the council-

chambers of the Liberal Powers.

If the situation which arose on the 15th August, 1914, is to be

thoroughly understood, it is necessary to pick up threads of

Chino-Japanese relations from a good many years back. First-hand

familiarity with the actors and the scenes of at least three

decades is essential to give the picture the completeness, the

brilliancy of colouring, and withal the suggestiveness inseparable

from all true works of art. For the Chino-Japanese question is

primarily a work of art and not merely a piece of jejune diplomacy

stretched across the years. As the shuttle of Fate has been cast

swiftly backwards and forwards, the threads of these entwining

relations have been woven into patterns involving the whole Far

East, until to-day we have as it were a complete Gobelin tapestry,

magnificent with meaning, replete with action, and full of

scholastic interest.

Let us follow some of the tracery. It has long been the habit to

affirm that the conflict between China and Japan had its origin in

Korea, when Korea was a vassal state acknowledging the suzerainty

of Peking; and that the conflict merited ending there, since of

the two protagonists contending for empire Japan was left in

undisputed mastery. This statement, being incomplete, is

dangerously false. Dating from that vital period of thirty years

ago, when Yuan Shih-kai first went to Seoul as a general officer

in the train of the Chinese Imperial Resident (on China being

forced to take action in protection of her interests owing to the

"opening" of Korea by the American Treaty of 1882) three

contestants, equally interested in the balance of land-power in

Eastern Asia were constantly pitted against one another with Korea

as their common battling-ground--Russia, China and Japan. The

struggle, which ended in the eclipse of the first two, merely

shifted the venue from the Korean zone to the Manchurian zone; and

from thence gradually extended it further and further afield until

at last not only was Inner Mongolia and the vast belt of country

fronting the Great Wall embraced within its scope, but the entire

aspect of China itself was changed. For these important facts have

to be noted. Until the Russian war of 1904-05 had demonstrated the

utter valuelessness of Tsarism as an international military

factor, Japan had been almost willing to resign herself to a

subordinate role in the Far East. Having eaten bitter bread as the

result of her premature attempt in 1895 (after the Korean war) to

become a continental power--an attempt which had resulted in the

forced retrocession of the Liaotung Peninsula--she had been placed

on her good behaviour, an attitude which was admirably reflected

in 1900 when her Peking Expeditionary Force proved itself so well-

behaved and so gallant as to arouse the world's admiration. But

the war with Russia and the collapse of the Tsar's Manchurian

adventure not only drew her back into territory that she never

hoped to see again, but placed her in possession of a ready-made

railway system which carried her almost up to the Sungari river

and surrendered to her military control vast grasslands stretching

to the Khingan mountains. This Westernly march so greatly enlarged

the Japanese political horizon, and so entirely changed the

Japanese viewpoint, that the statesmen of Tokio in their

excitement threw off their ancient spectacles and found to their

astonishment that their eyes were every whit as good as European

eyes. Now seeing the world as others had long seen it, they

understood that just as with the individuals so with nations the

struggle for existence can most easily be conducted by adopting

that war-principle of Clausewitz--the restless offensive, and not

by writing meaningless dispatches. Prior to the Russian war they

had written to Russia a magnificent series of documents in which

they had pleaded with sincerity for an equitable settlement,--

only to find that all was in vain. Forced to battle, they had

found in combat not only success but a new principle.

The discovery necessitated a new policy. During the eighties, and

in a lesser degree in the nineties, Japan had apart from

everything else been content to act in a modest and retiring way,

because she wished at all costs to avoid testing too severely her

immature strength. But owing to the successive collapses of her

rivals, she now found herself not only forced to attack as the

safest course of action, but driven to the view that the Power

that exerts the maximum pressure constantly and unremittedly is

inevitably the most successful. This conclusion had great

importance. For just as the first article of faith for England in

Asia has been the doctrine that no Power can be permitted to seize

strategic harbours which menace her sea-communications, so did it

now become equally true of Japan that her dominant policy became

not an Eastern Monroe doctrine, as shallow men have supposed, but

simply the Doctrine of Maximum Pressure. To press with all her

strength on China was henceforth considered vital by every

Japanese; and it's in this spirit that every diplomatic pattern

has been woven since the die was cast in 1905. Until this signal

fact has been grasped no useful analysis can be made of the

evolution of present conditions. Standing behind this policy, and

constantly reinforcing it, are the serried ranks of the new

democracy which education and the great increase in material

prosperity have been so rapidly creating. The soaring ambition

which springs from the sea lends to the attacks developed by such

a people the aspect of piracies; and it is but natural in such

circumstances that for Chinese Japan should not only have the

aspect of a sea-monster but that their country should appear as

hapless Andromeda bound to a rock, always awaiting a Perseus who

never comes. ...

The Revolution of 1911 had been entirely unexpected in Japan.

Whilst large outbreaks had been certainly counted on since the

Chinese Revolutionary party had for years used Japan as an asylum

and a base of operations, never had it been anticipated that the

fall of an ancient Dynasty could be so easily encompassed.

Consequently, the abdication of the Manchus as the result of

intrigues rather than of warfare was looked upon as little short

of a catastrophe because it hopelessly complicated the outlook,

broke the pattern which had been so carefully woven for so many

years, and interjected harsh elements which could not be assigned

an orderly place. Not only was a well-articulated State-system

suddenly consigned to the flames, but the ruin threatened to be so

general that the balance of power throughout the Far East would be

twisted out of shape. Japanese statesmen had desired a weak China,

a China which would ultimately turn to them for assistance because

they were a kindred race, but not a China that looked to the

French Revolution for its inspiration. To a people as slow to

adjust themselves to violent surprises as are the Japanese, there

was an air of desperation about the whole business which greatly

alarmed them, and made them determined at the earliest possible

moment to throw every ounce of their weight in the direction which

would best serve them by bringing matters back to their original

starting-point. For this reason they were not only prepared in

theory in 1911 to lend armed assistance to the Manchus but would

have speedily done so had not England strongly dissented from such

a course of action when she was privately sounded about the

matter. Even to-day, when a temporary adjustment of Japanese

policy has been successfully arranged, it is of the highest

importance for political students to remember that the dynastic

influences in Tokio have never departed from the view that the

legitimate sovereignty of China remains vested in the Manchu House

and that everything that has taken place since 1911 is irregular

and unconstitutional.

For the time being, however, two dissimilar circumstances demanded

caution: first, the enthusiasm which the Japanese democracy, fed

by a highly excited press, exhibited towards the Young China which

had been so largely grounded in the Tokio schools and which had

carried out the Revolution: secondly--and far more important--the

deep, abiding and ineradicable animosity which Japanese of all

classes felt for the man who had come out of the contest head and

shoulders above everybody else--Yuan Shih-kai. These two

remarkable features ended by completely thrusting into the

background during the period 1911-1914 every other element in

Japanese statesmanship; and of the two the second must be counted

the decisive one. Dating back to Korea, when Yuan Shih-kai's

extraordinary diplomatic talents constantly allowed him to worst

his Japanese rivals and to make Chinese counsels supreme at the

Korean Court up to the very moment when the first shots of the war

of 1894 were fired, this ancient dislike, which amounted to a

consuming hatred, had become a fixed idea. Restrained by the

world's opinion during the period prior to the outbreak of the

world-war as well as by the necessity of acting financially in

concert with the other Powers, it was not until August, 1914, that

the longed-for opportunity came and that Japan prepared to act in

a most remarkable way.

The campaign against Kiaochow was unpopular from the outset among

the Japanese public because it was felt that they were not

legitimately called upon to interest themselves in such a remote

question as the balance of power among European nations, which was

what British warfare against Germany seemed to them to be. Though

some ill-will was felt against Germany for the part played by her

in the intervention of 1895, it must not be forgotten that just as

the Japanese navy is the child of the British navy, so is the

Japanese army the child of the German army--and that Japanese army

chiefs largely control Japan. These men were averse from "spoiling

their army" in a contest which did not interest them. There was

also the feeling abroad that England by calling upon her Ally to

carry out the essential provisions of her Alliance had shown that

she had the better part of a bargain, and that she was exploiting

an old advantage in a way which could not fail to react adversely

on Japan's future world's relationships. Furthermore, it is

necessary to underline the fact that official Japan was displeased

by the tacit support an uninterested British Foreign Office had

consistently given to the Yuan Shih-kai regime. That the Chinese

experiment was looked upon in England more with amusement than

with concern irritated the Japanese--more particularly as the

British Foreign Office was issuing in the form of White Papers

documents covering Yuan Shih-kai's public declarations as if they

were contributions to contemporary history. Thus in the preceding

year (1913) under the nomenclature of "affairs in China" the text

of a dementi regarding the President of China's Imperial

aspirations had been published,--a document which Japanese had

classified as a studied lie, and as an act of presumption because

its wording showed that its author intended to keep his back

turned on Japan. The Dictator had declared:--

... "From my student days, I, Yuan Shih-kai, have admired the

example of the Emperors Yao and Shun, who treated the empire as a

public trust, and considered that the record of a dynasty in

history for good or ill is inseparably bound up with the public

spirit or self-seeking by which it has been animated. On attaining

middle age I grew more familiar with foreign affairs, was struck

by the admirable republican system in France and America, and felt

that they were a true embodiment of the democratic precepts of the

ancients. When last year the patriotic crusade started in Wuchang

its echoes went forth into all the provinces, with the result that

this ancient nation with its 2,000 years of despotism adopted with

one bound the republican system of government.

It was my good fortune to see this glorious day at my life's late

eve; I cherished the hope that I might dwell in the seclusion of

my own home and participate in the blessings of an age of peace.

But once again my fellow-countrymen honoured me with the pressing

request that I should again assume a heavy burden, and on the day

on which the Republic was proclaimed I announced it the whole

nation that never again should a monarchy be permitted in China.

At my inauguration I again took this solemn oath in the sight of

heaven above and earth beneath. Yet of late ignorant persons in

the provinces have fabricated wild rumours to delude men's minds,

and have adduced the career of the First Napoleon on which to base

their erroneous speculations. It is best not to inquire as to

their motives; in some cases misconception may be the cause, in

others deliberate malice.

The Republic has now been proclaimed for six months; so far there

is no prospect of recognition from the Powers, while order is far

from being restored in the provinces. Our fate hangs upon a hair;

the slightest negligence may forfeit all. I, who bear this arduous

responsibility, feel it my bounden duty to stand at the helm in

the hope of successfully breasting the wild waves.

But while those in office are striving with all their might to

effect a satisfactory solution, spectators seem to find a

difficulty in maintaining a generous forbearance. They forget that

I, who have received this charge from my countrymen, cannot

possibly look dispassionately on when the fate of the nation is in

the balance. If I were aware that the task was impossible and

played a part of easy acquiescence, so that the future of the

Republic might become irreparable, others might not reproach me,

but my own conscience would never leave me alone.

My thoughts are manifest in the sight of high heaven. But at this

season of construction and dire crisis how shall these mutual

suspicions find a place? Once more I issue this announcement; if

you, my fellow countrymen, do indeed place the safety of China

before all other considerations, it behooves you to be large-

minded. Beware of lightly heeding the plausible voice of calumny,

and of thus furnishing a medium for fostering anarchy. If evilly

disposed persons, who are bent on destruction, seize the excuse

for sowing dissension to the jeopardy of the situation, I, Yuan

Shih-kai, shall follow the behest of my fellow-countrymen in

placing such men beyond the pale of humanity.

A vital issue is involved. It is my duty to lay before you my

inmost thought, so that suspicion may be dissipated. Those who

know have the right to impose their censure. It is for public

opinion to take due notice."

Moreover Yuan Shih-kai had also shown in his selection and use of

foreign Advisers, that he was determined to proceed in such a

manner as to advertise his suspicion and enmity of Japan. After

the Coup d'etat of the 4th November, 1913, and the scattering of

Parliament, it was an American Adviser who was set to work on the

new "Constitution"; and although a Japanese, Dr. Ariga, who was in

receipt of a princely salary, aided and abetted this work, his

endorsement of the dictatorial rule was looked upon as traitorous

by the bulk of his countrymen. Similarly, it was perfectly well-

known that Yuan Shih-kai was spending large sums of money in Tokio

in bribing certain organs of the Japanese Press and in attempting

to win adherents among Japanese members of Parliament. Remarkable

stories are current which compromise very highly-placed Japanese

but which the writer hesitates to set down in black and white as

documentary proof is not available. In any case, be this as it

may, it was felt in Tokio that the time had arrived to give a

proper definition to the relations between the two states,--the

more so as Yuan Shih-kai, by publicly proclaiming a small war-zone

in Shantung within the limits of which the Japanese were alone

permitted to wage war against the Germans, had shown himself

indifferent to the majesty of Japan. The Japanese having captured

Kiaochow by assault before the end of 1914 decided to accept the

view that a de facto Dictatorship existed in China. Therefore on

the 18th of January, 1915, the Japanese Minister, Dr. Hioki,

personally served on Yuan Shih-kai the now famous Twenty-one

Demands, a list designed to satisfy every present and future need

of Japanese policy and to reduce China to a state of vassalage.

CHAPTER VI

THE TWENTY-ONE DEMANDS

Although the press of the world gave a certain prominence at the

time to the astounding demarche with which we now have to deal,

there was such persistent mystery about the matter and so many

official dementis accompanied every publication of the facts that

even to this day the nature of the assault which Japan delivered

on China is not adequately realized, nor is the narrow escape

assigned its proper place in estimates of the future. Briefly, had

there not been publication of the facts and had not British

diplomacy been aroused to action there is little doubt that Japan

would have forced matters so far that Chinese independence would

now be virtually a thing of the past. Fortunately, however, China

in her hour of need found many who were willing to succour her;

with the result that although she lost something in these

negotiations, Japan nevertheless failed in a very signal fashion

to attain her main objective. The Pyrrhic victory which she won

with her eleventh hour ultimatum will indeed in the end cost her

more than would have a complete failure, for Chinese suspicion and

hostility are now so deep-seated that nothing will ever completely

eradicate them. It is therefore only proper that an accurate

record should be here incorporated of a chapter of history which

has much international importance; and if we invite close

attention to the mass of documents that follow it is because we

hold that an adequate comprehension of them is essential to

securing the future peace of the Far East. Let us first give the

official text of the original Demands:

JAPAN'S ORIGINAL TWENTY-ONE DEMANDS

Translations of Documents Handed to the President, Yuan shih-kai,

by Mr. Hioki, the Japanese Minister, on January 18th, 1915.

GROUP I

The Japanese Government and the Chinese Government being desirous

of maintaining the general peace in Eastern Asia and further

strengthening the friendly relations and good neighbourhood

existing between the two nations agree to the following articles:--

Article 1. The Chinese Government engages to give full assent to

all matters upon which the Japanese Government may hereafter agree

with the German Government relating to the disposition of all

rights, interests and concessions, which Germany, by virtue of

treaties or otherwise, possesses in relation to the Province of

Shantung.

Article 2. The Chinese Government engages that within the Province

of Shantung and along its coast no territory or island will be

ceded or leased to a third Power under any pretext.

Article 3. The Chinese Government consents to Japan's building a

railway from Chefoo or Lungkow to join the Kiaochou-Tsinanfu

railway.

Article 4. The Chinese Government engages, in the interest of

trade and for the residence of foreigners, to open by herself as

soon as possible certain important cities and towns in the

Province of Shantung as Commercial Ports. What places shall be

opened are to be jointly decided upon in a separate agreement.

GROUP II

The Japanese Government and the Chinese Government, since the

Chinese Government has always acknowledged the special position

enjoyed by Japan in South Manchuria and Eastern Inner Mongolia,

agree to the following articles:--

Article 1. The two Contracting Parties mutually agree that the

term of lease of Port Arthur and Dalny and the term of lease of

the South Manchurian Railway and the Antung-Mukden Railway shall

be extended to the period of 99 years.

Article 2. Japanese subjects in South Manchuria and Eastern Inner

Mongolia shall have the right to lease or own land required either

for erecting suitable buildings for trade and manufacture or for

farming.

Article 3. Japanese subjects shall be free to reside and travel in

South Manchuria and Eastern Inner Mongolia and to engage in

business and in manufacture of any kind whatsoever.

Article 4. The Chinese Government agrees to grant to Japanese

subjects the right of opening the mines in South Manchuria and

Eastern Inner Mongolia. As regards what mines are to be opened,

they shall be decided upon jointly.

Article 5. The Chinese Government agrees that in respect of the

(two) cases mentioned herein below the Japanese Government's

consent shall be first obtained before action is taken:--

(a) Whenever permission is granted to the subject of a third Power

to build a railway or to make a loan with a third Power for the

purpose of building a railway in South Manchuria and Eastern Inner

Mongolia.

(b) Whenever a loan is to be made with a third Power pledging the

local taxes of South Manchuria and Eastern Inner Mongolia as

security.

Article 6. The Chinese Government agrees that if the Chinese

Government employs political, financial or military advisers or

instructors in South Manchuria or Eastern Inner Mongolia, the

Japanese Government shall first be consulted.

Article 7. The Chinese Government agrees that the control and

management of the Kirin-Changchun Railway shall be handed over to

the Japanese Government for a term of 99 years dating from the

signing of this Agreement.

GROUP III

The Japanese Government and the Chinese Government, seeing that

Japanese financiers and the Hanyehping Co. have dose relations

with each other at present and desiring that the common interests

of the two nations shall be advanced, agree to the following

articles:--

Article 1. The two Contracting Parties mutually agree that when

the opportune moment arrives the Hanyehping Company shall be made

a joint concern of the two nations and they further agree that

without the previous consent of Japan, China shall not by her own

act dispose of the rights and property of whatsoever nature of the

said Company nor cause the said Company to dispose freely of the

same.

Article 2. The Chinese Government agrees that all mines in the

neighbourhood of those owned by the Hanyehping Company shall not

be permitted, without the consent of the said Company, to be

worked by other persons outside of the said Company; and further

agrees that if it is desired to carry out any undertaking which,

it is apprehended, may directly or indirectly affect the interests

of the said Company, the consent of the said Company shall first

be obtained.

GROUP IV

The Japanese Government and the Chinese Government with the object

of effectively preserving the territorial integrity of China agree

to the following special articles:--

The Chinese Government engages not to cede or lease to a third

Power any harbour or bay or island along the coast of China.

GROUP V

Article 1. The Chinese Central Government shall employ influential

Japanese advisers in political, financial and military affairs.

Article 2. Japanese hospitals, churches and schools in the

interior of China shall be granted the right of owning land.

Article 3. Inasmuch as the Japanese Government and the Chinese

Government have had many cases of dispute between Japanese and

Chinese police to settle cases which caused no little

misunderstanding, it is for this reason necessary that the police

departments of important places (in China) shall be jointly

administered by Japanese and Chinese or that the police

departments of these places shall employ numerous Japanese, so

that they may at the same time help to plan for the improvement of

the Chinese Police Service.

Article 4. China shall purchase from Japan a fixed amount of

munitions of war (say 50% or more) of what is needed by the

Chinese Government or that there shall be established in China a

Sino-Japanese jointly worked arsenal. Japanese technical experts

are to be employed and Japanese material to be purchased.

Article 5. China agrees to grant to Japan the right of

constructing a railway connecting Wuchang with Kiukiang and

Nanchang, another line between Nanchang and Hanchow, and another

between Nanchang and Chaochou.

Article 6. If China needs foreign capital to work mines, build

railways and construct harbour-works (including dock-yards) in the

Provinces of Fukien, Japan shall be first consulted.

Article 7. China agrees that Japanese subjects shall have the

right of missionary propaganda in China. [Footnote: Refers to

preaching Buddhism.]

The five groups into which the Japanese divided their demands

possess a remarkable interest not because of their sequence, or

the style of their phraseology, but because every word reveals a

peculiar and very illuminating chemistry of the soul. To study the

original Chinese text is to pass as it were into the secret

recesses of the Japanese brain, and to find in that darkened

chamber a whole world of things which advertise ambitions mixed

with limitations, hesitations overwhelmed by audacities,

greatnesses succumbing to littlenesses, and vanities having the

appearance of velleities. Given an intimate knowledge of Far

Eastern politics and Far Eastern languages, only a few minutes are

required to re-write the demands in the sequence in which they

were originally conceived as well as to trace the natural history

of their genesis. Unfortunately a great deal is lost in their

official translation, and the menace revealed in the Chinese

original partly cloaked: for by transferring Eastern thoughts into

Western moulds, things that are like nails in the hands of soft

sensitive Oriental beings are made to appear to the steel-clad

West as cold-blooded, evolutionary necessities which may be

repellent but which are never cruel. The more the matter is

studied the more convinced must the political student be that in

this affair of the 18th January we have an international coup

destined to become classic in the new text-books of political

science. All the way through the twenty-one articles it is easy to

see the desire for action, the love of accomplished facts,

struggling with the necessity to observe the conventions of a

stereotyped diplomacy and often overwhelming those conventions. As

the thoughts thicken and the plot develops, the effort to mask the

real intention lying behind every word plainly breaks down, and a

growing exultation rings louder and louder as if the coveted

Chinese prize were already firmly grasped. One sees as it were the

Japanese nation, released from bondage imposed by the Treaties

which have been binding on all nations since 1860, swarming madly

through the breached walls of ancient Cathay and disputing hotly

the spoils of age-old domains.

Group I, which deals with the fruits of victory in Shantung, has

little to detain us since events which have just unrolled there

have already told the story of those demands. In Shantung we have

a simple and easily-understood repeated performance of the

history of 1905 and the settlement of the Russo-Japanese War.

Placed at the very head of the list of demands, though its

legitimate position should be after Manchuria, obviously the

purpose of Group I is conspicuously to call attention to the fact

that Japan had been at war with Germany, and is still at war with

her. This flourish of trumpets, after the battle is over, however,

scarcely serves to disguise that the fate of Shantung, following

so hard on the heels of the Russian debacle in Manchuria, is the

great moral which Western peoples are called upon to note. Japan,

determined as she has repeatedly announced to preserve the peace

of the Orient by any means she deems necessary, has found the one

and only formula that is satisfactory--that of methodically

annexing everything worth fighting about.

So far so good. The insertion of a special preamble to Group II,

which covers not only South Manchuria but Eastern Inner Mongolia

as well, is an ingenious piece of work since it shows that the hot

mood of conquest suitable for Shantung must be exchanged for a

certain judicial detachment. The preamble undoubtedly betrays the

guiding hand of Viscount Kato, the then astute Minister of Foreign

Affairs, who saturated in the great series of international

undertakings made by Japan since the first Anglo-Japanese Treaty

of 1902, clearly believes that the stately Elizabethan manner

which still characterizes British official phrasing is an

admirable method to be here employed. The preamble is quite

English; it is so English that one is almost lulled into believing

that one's previous reasoning has been at fault and that Japan is

only demanding what she is entitled to. Yet study Group II closely

and subtleties gradually emerge. By boldly and categorically

placing Eastern Inner Mongolia on precisely the same footing as

Southern Manchuria--though they have nothing in common--the

assumption is made that the collapse in 1908 of the great Anglo-

American scheme to run a neutral railway up the flank of Southern

Manchuria to Northern Manchuria (the once celebrated Chinchow-

Aigun scheme), coupled with general agreement with Russia which

was then arrived at, now impose upon China the necessity of

publicly resigning herself to a Japanese overlordship of that

region. In other words, the preamble of Group II lays down that

Eastern Inner Mongolia has become part and parcel of the

Manchurian Question because Japan has found a parallel for what

she is doing in the acts of European Powers.

These things, however, need not detain us. Not that Manchuria or

the adjoining Mongolian plain is not important; not that the

threads of destiny are not woven thickly there. For it is certain

that the vast region immediately beyond the Great Wall of China is

the Flanders of the Far East--and that the next inevitable war

which will destroy China or make her something of a nation must be

fought on that soil just as two other wars have been fought there

during the past twenty years. But this does not belong to

contemporary politics; it is possibly an affair of the Chinese

army of 1925 or 1935. Some day China will fight for Manchuria, if

it is impossible to recover it in any other way,--nobody need

doubt that. For Manchuria is absolutely Chinese--people must

remember. No matter how far the town-dwelling Japanese may invade

the country during the next two or three decades, no matter what

large alien garrisons may be planted there, the Chinese must and

will remain the dominant racial element, since their population

which already numbers twenty-five millions is growing at the rate

of half a million a year, and in a few decades will equal the

population of a first-class European Power.

When we reach Group III we touch matters that are not only

immediately vital but quite new in their type of audacity and

which every one can to-day understand since they are politico-

industrial. Group III, as it stands in the original text, is

SIMPLY THE PLAN FOR THE CONQUEST OF THE MINERAL WEALTH OF THE

YANGTSZE VALLEY which mainly centres round Hankow because the vast

alluvial plains of the lower reaches of this greatest of rivers

were once the floor of the Yellow Sea, the upper provinces of

Hupeh, Hunan, Kiangsi being the region of prehistoric forests

clothing the coasts, which once looked down upon the slowly-

receding waste of waters, and which to-day contain all the coal

and iron. Hitherto every one has always believed that the Yang

tsze Valley was par excellence the British sphere in China; and

every one has always thought that that belief was enough. It is

true that political students, going carefully over all published

documents, have ended their search by declaring that the matter

certainly required further elucidation. To be precise, this so-

called British sphere is not an enclave at all in the proper

sense; indeed it can only seem one to those who still believe that

it is still possible to pre-empt provinces by ministerial

declarations. The Japanese have been the first to dare to say that

the preconceived general belief was stupid. They know, of course,

that it was a British force which invaded the Yangtsze Valley

seventy-five years ago, and forced the signature of the Treaty of

Nanking which first opened China to the world's trade; but they

are by no means impressed with the rights which that action has

been held to confer, since the mineral resources of this region

are priceless in their eyes and must somehow be won.

The study of twenty years of history proves this assumption to be

correct. Ever since 1895, Japan has been driving wedges into the

Yangtsze Valley of a peculiar kind to form the foundations for her

sweeping claims of 1915. Thus after the war with China in 1894-95,

she opened by her Treaty of Peace four ports in the Yangtsze

Valley region, Soochow, Hangchow, Chungking and Shasi; that is, at

the two extreme ends of the valley she established politico-

commercial points d'appui from which to direct her campaign.

Whilst the proximity of Soochow and Hangchow to the British

stronghold of Shanghai made it difficult to carry out any

"penetration" work at the lower end of the river save in the form

of subsidized steam-shipping, the case was different in Hunan and

Hupeh provinces. There she was unendingly busy, and in 1903 by a

fresh treaty she formally opened to trade Changsha, the capital of

the turbulent Hunan province. Changsha for years remained a secret

centre possessing the greatest political importance for her, and

serving as a focus for most varied activities involving Hunan,

Hupeh, and Kiangsi, as well as a vast hinterland. The great Tayeh

iron-mines, although entirely Chinese-owned, were already being

tapped to supply iron-ore for the Japanese Government Foundry at

Wakamatsu on the island of Kiushiu. The rich coal mines of

Pinghsiang, being conveniently near, supplied the great Chinese

Government arsenal of Hanyang with fuel; and since Japan had very

little coal or iron of her own, she decided that it would be best

to embrace as soon as possible the whole area of interests in one

categorical demand--that is to claim a dominant share in the

Hanyang arsenal, the Tayeh iron-mines and the Ping-hsiang

collieries. [Footnote: The reader will observe, that the

expression "Hanyehping enterprises" is compounded by linking

together characters denoting the triple industry.] By lending

money to these enterprises, which were grouped together under the

name of Hanyehping, she had early established a claim on them

which she turned at the psychological moment into an international

question.

We can pass quickly by Group IV which is of little importance,

except to say that in taking upon herself, without consultation

with the senior ally, the duty of asking from China a declaration

concerning the future non-leasing of harbours and islands, Japan

has attempted to assume a protectorship of Chinese territory which

does not belong to her historically. It is well also to note that

although Japan wished it to appear to the world that this action

was dictated by her desire to prevent Germany from acquiring a

fresh foothold in China after the war, in reality Group IV was

drafted as a general warning to the nations, one point being that

she believed that the United States was contemplating the

reorganization of the Foochow Arsenal in Fuhkien province, and

that as a corollary to that reorganization would be given the

lease of an adjoining harbour such as Santuao.

It is not, however, until we reach Group V that the real purpose

of the Japanese demands becomes unalterably clear, for in this

Group we have seven sketches of things designed to serve as the

coup de grace. Not only is a new sphere--Fuhkien province--

indicated; not only is the mid-Yangtsze, from the vicinity of

Kiukiang, to serve as the terminus for a system of Japanese

railways, radiating from the great river to the coasts of South

China; but the gleaming knife of the Japanese surgeon is to aid

the Japanese teacher in the great work of propaganda; the Japanese

monk and the Japanese policeman are to be dispersed like

skirmishers throughout the land; Japanese arsenals are to supply

all the necessary arms, or failing that a special Japanese arsenal

is to be established; Japanese advisers are to give the necessary

advice in finance, in politics, in every department--foreshadowing

a complete and all embracing political control. Never was a more

sweeping program of supervision presented, and small wonder if

Chinese when they learnt of this climax exclaimed that the fate of

Korea was to be their own. For a number of weeks after the

presentation of these demands everything remained clothed in

impenetrable mystery, and despite every effort on the part of

diplomatists reliable details of what was occurring could not be

obtained. Gradually, however, the admission was forced that the

secrecy being preserved was due to the Japanese threat that

publicity would be met with the harshest reprisals; and presently

the veil was entirely lifted by newspaper publication and foreign

Ambassadors began making inquiries in Tokio. The nature and scope

of the Twenty-one Demands could now be no longer hidden; and in

response to the growing indignation which began to be voiced by

the press and the pressure which British diplomacy brought to

bear, Japan found it necessary to modify some of the most

important items. She had held twenty-four meetings at the Chinese

Foreign Office, and although the Chinese negotiators had been

forced to give way in such matters as extending the "leasing"

periods of railways and territories in Manchuria and in admitting

the Japanese right to succeed to all German interests and rights

in Shantung (Group I and II), in the essential matters of the

Hanyehping concessions (Group III) and the noxious demands of

Group V China had stood absolutely firm, declining even to discuss

some of the items.

Accordingly Japanese diplomacy was forced to re-state and re-group

the whole corpus of the demands. On the 26th April, acting under

direct instructions from Tokio, the Japanese Minister to Peking

presented a revised list for renewed consideration, the demands

being expanded to twenty-four articles (in place of the original

twenty-one largely because discussion had shown the necessity of

breaking up into smaller units some of the original articles).

Most significant, however, is the fact that Group V, (which in its

original form was a more vicious assault on Chinese sovereignty

than the Austrian Ultimatum to Serbia of June, 1914) was so

remodelled as to convey a very different meaning, the group

heading disappearing entirely and an innocent-looking exchange of

notes being asked for. It is necessary to recall that, when taxed

with making Demands which were entirely in conflict with the

spirit of the Anglo-Japanese Alliance, the Japanese Government

through its ambassadors abroad had categorically denied that they

had ever laid any such Demands on the Chinese Government. It was

claimed that there had never been twenty-one Demands, as the

Chinese alleged, but only fourteen, the seven items of Group V

being desiderata which it was in the interests of china to endorse

but which Japan had no intention of forcing upon her. The writer,

being acquainted from first to last with everything that took

place in Peking from the 18th January to the filing of the

Japanese ultimatum of the 7th May, has no hesitation in

stigmatising this statement as false. The whole aim and object of

these negotiations was to force through Group V. Japan would have

gladly postponed sine die the discussion of all the other Groups

had China assented to provisions which would have made her

independence a thing of the past. Every Chinese knew that, in the

main, Group V was simply a repetition of the measures undertaken

in Korea after the Russo-Japanese war of 1905 as a forerunner to

annexation; and although obviously in the case of China no such

rapid surgery could be practised, the endorsement of these

measures would have meant a virtual Japanese Protectorate. Even a

cursory study of the text that follows will confirm in every

particular these capital contentions:

JAPAN'S REVISED DEMANDS

Japan's Revised Demands on China, twenty-four in all, presented

April 26, 1915.

NOTE ON ORIGINAL TEXT:

[The revised list of articles is a Chinese translation of the

Japanese text. It is hereby declared that when a final decision is

reached, there shall be a revision of the wording of the text.]

GROUP I

The Japanese Government and the Chinese Government, being desirous

of maintaining the general peace in Eastern Asia and further

strengthening the friendly relations and good neighbourhood

existing between the two nations, agree to the following

articles:--

Article 1. The Chinese Government engages to give full assent to

all matters upon which the Japanese Government may hereafter agree

with the German Government, relating to the disposition of all

rights, interests and concessions, which Germany, by virtue of

treaties or otherwise, possesses in relation to the Province of

Shangtung.

Article 2. (Changed into an exchange of notes.)

The Chinese Government declares that within the Province of

Shantung and along its coast no territory or island will be ceded

or leased to any Power under any pretext.

Article 3. The Chinese Government consents that as regards the

railway to be built by China herself from Chefoo or Lung kow to

connect with the Kiaochow-Tsinanfu Railway, if Germany is willing

to abandon the privilege of financing the Chefoo-Weihsien line.

China will approach Japanese capitalists to negotiate for a loan.

Article 4. The Chinese Government engages, in the interest of

trade and for the residence of foreigners, to open by China

herself as soon as possible certain suitable places in the

Province of Shantung as Commercial Ports.

(Supplementary Exchange of Notes)

The places which ought to be opened are to be chosen and the

regulations are to be drafted, by the Chinese Government, but the

Japanese Minister must be consulted before making a decision.

GROUP II

The Japanese Government and the Chinese Government, with a view to

developing their economic relations in South Manchuria and Eastern

Inner Mongolia, agree to the following articles:--

Article 1. The two contracting Powers mutually agree that the term

of lease of Port Arthur and Dalny and the terms of the South

Manchuria Railway and the Antung-Mukden Railway shall be extended

to 99 years.

(Supplementary Exchange of Notes)

The term of lease of Port Arthur and Dalny shall expire in the

86th year of the Republic or 1997. The date for restoring the

South Manchurian Railway to China shall fall due in the 91st year

of the Republic or 2002. Article 12 in the original South

Manchurian Railway Agreement stating that it may be redeemed by

China after 36 years after the traffic is opened is hereby

cancelled. The term of the Antung-Mukden Railway shall expire in

the 96th year of the Republic or 2007.

Article 2. Japanese subjects in South Manchuria may lease or

purchase the necessary land for erecting suitable buildings for

trade and manufacture or for prosecuting agricultural enterprises.

Article 3. Japanese subjects shall be free to reside and travel in

South Manchuria and to engage in business and manufacture of any

kind whatsoever.

Article 3a. The Japanese subjects referred to in the preceding two

articles, besides being required to register with the local

authorities pass-ports which they must procure under the existing

regulations, shall also submit to police laws and ordinances and

tax regulations, which are approved by the Japanese consul. Civil

and criminal cases in which the defendants are Japanese shall be

tried and adjudicated by the Japanese consul; those in which the

defendants are Chinese shall be tried and adjudicated by Chinese

Authorities. In either case an officer can be deputed to the court

to attend the proceedings. But mixed civil cases between Chinese

and Japanese relating to land shall be tried and adjudicated by

delegates of both nations conjointly in accordance with Chinese

law and local usage. When the judicial system in the said region

is completely reformed, all civil and criminal cases concerning

Japanese subjects shall be tried entirely by Chinese law courts.

Article 4. (Changed to an exchange of notes.)

The Chinese Government agrees that Japanese subjects shall be

permitted forthwith to investigate, select, and then prospect for

and open mines at the following places in South Manchuria, apart

from those mining areas in which mines are being prospected for or

worked; until the Mining Ordinance is definitely settled methods

at present in force shall be followed.

PROVINCE OF FENG-TIEN

Locality District Mineral

Niu Hsin T'ai Pen-hsi Coal

Tien Shih Fu Kou Pen-hsi Coal

Sha Sung Kang Hai-lung Coal

T'ieh Ch'ang Tung-hua Coal

Nuan Ti Tang Chin Coal

An Shan Chan region From Liao-yang

to Pen-hsi Iron

PROVINCE of KIRIN

(Southern portion)

Sha Sung Kang Ho-lung Coal and Iron

Kang Yao Chi-lin (Kirin) Coal

Chia P'i Kou Hua-tien Gold

Article 5. (Changed to an exchange of notes.) The Chinese

Government declares that China will hereafter provide funds for

building railways in South Manchuria; if foreign capital is

required, the Chinese Government agrees to negotiate for the loan

with Japanese capitalists first.

Article 5a. (Changed to an exchange of notes.) The Chinese

Government agrees that hereafter, when a foreign loan is to be

made on the security of the taxes of South Manchuria (not

including customs and salt revenue on the security of which loans

have already been made by the Central Government), it will

negotiate for the loan with Japanese capitalists first.

Article 6. (Changed to an exchange of notes.) The Chinese

Government declares that hereafter if foreign advisers or

instructors on political, financial, military or police matters,

are to be employed in South Manchuria, Japanese will be employed

first.

Article 7. The Chinese Government agrees speedily to make a

fundamental revision of the Kirin-Changchun Railway Loan

Agreement, taking as a standard the provisions in railroad loan

agreements made heretofore between China and foreign financiers.

If, in future, more advantageous terms than those in existing

railway loan agreements are granted to foreign financiers, in

connection with railway loans, the above agreement shall again be

revised in accordance with Japan's wishes.

All existing treaties between China and Japan relating to

Manchuria shall, except where otherwise provided for by this

Convention, remain in force.

1. The Chinese Government agrees that hereafter when a foreign

loan is to be made on the security of the taxes of Eastern Inner

Mongolia, China must negotiate with the Japanese Government first.

2. The Chinese Government agrees that China will herself provide

funds for building the railways in Eastern Inner Mongolia; if

foreign capital is required, she must negotiate with the Japanese

Government first.

3. The Chinese Government agrees, in the interest of trade and for

the residence of foreigners, to open by China herself, as soon as

possible, certain suitable places in Eastern Inner Mongolia as

Commercial Ports. The places which ought to be opened are to be

chosen, and the regulations are to be drafted, by the Chinese

Government, but the Japanese Minister must be consulted before

making a decision.

4. In the event of Japanese and Chinese desiring jointly to

undertake agricultural enterprises and industries incidental

thereto, the Chinese Government shall give its permission.

GROUP III

The relations between Japan and the Hanyehping Company being very

intimate, if those interested in the said Company come to an

agreement with the Japanese capitalists for co-operation, the

Chinese Government shall forthwith give its consent thereto. The

Chinese Government further agrees that, without the consent of the

Japanese capitalists, China will not convert the Company into a

state enterprise, nor confiscate it, nor cause it to borrow and

use foreign capital other than Japanese.

GROUP IV

China to give a pronouncement by herself in accordance with the

following principle:--

No bay, harbour, or island along the coast of China may be ceded

or leased to any Power.

Notes to be Exchanged A

As regards the right of financing a railway from Wuchang to

connect with the Kiu-kiang-Nanchang line, the Nanchang-Hangchow

railway, and the Nanchang-Chaochow railway, if it is clearly

ascertained that other Powers have no objection, China shall grant

the said right to Japan.

B

As regards the rights of financing a railway from Wuchang to

connect with the Kiu-kiang-Nanchang railway, a railway from

Nanchang to Hangchow and another from Nanchang to Chaochow, the

Chinese Government shall not grant the said right to any foreign

Power before Japan comes to an understanding with the other Power

which is heretofore interested therein.

NOTES TO BE EXCHANGED

The Chinese Government agrees that no nation whatever is to be

permitted to construct, on the coast of Fukien Province, a

dockyard, a coaling station for military use, or a naval base; not

to be authorized to set up any other military establishment. The

Chinese Government further agrees not to use foreign capital for

setting up the above mentioned construction or establishment.

Mr. Lu, the Minister of Foreign Affairs, stated as follows:--

1. The Chinese Government, shall, whenever, in future, it

considers this step necessary, engage numerous Japanese advisers.

2. Whenever, in future, Japanese subjects desire to lease or

purchase land in the interior of China for establishing schools or

hospitals, the Chinese Government shall forthwith give its consent

thereto.

3. When a suitable opportunity arises in future, the Chinese

Government will send military officers to Japan to negotiate with

Japanese military authorities the matter of purchasing arms or

that of establishing a joint arsenal.

Mr. Hioki, the Japanese Minister, stated as follows:--

As relates to the question of the right of missionary propaganda

the same shall be taken up again for negotiation in future.

An ominous silence followed the delivery of this document. The

Chinese Foreign Office had already exhausted itself in a

discussion which had lasted three months, and pursuant to

instructions from the Presidential Palace prepared an exhaustive

Memorandum on the subject. It was understood by now that all the

Foreign Offices in the world were interesting themselves very

particularly in the matter; and that all were agreed that the

situation which had so strangely developed was very serious. On

the 1st May, proceeding by appointment to the Waichiaopu (Foreign

Office) the Japanese Minister had read to him the following

Memorandum which it is very necessary to grasp as it shows how

solicitous China had become of terminating the business before

there was an open international break. It will also be seen that

this Memorandum was obviously composed for purpose of public

record, the fifth group being dealt with in such a way as to fix

upon Japan the guilt of having concealed from her British Ally

matters which conflicted vitally with the aims and objects of the

Anglo-Japanese Alliance Treaty.

MEMORANDUM

Read by the Minister of Foreign Affairs to Mr. Hioki, the Japanese

Minister, at a Conference held at Wai Chiao Pu, May 1, 1915.

The list of demands which the Japanese Government first presented

to the Chinese Government consists of five groups, the first

relating to Shantung, the second relating to South Manchuria and

Eastern Inner Mongolia, the third relating to Hanyehping Company,

the fourth asking for non-alienation of the coast of the country,

and the fifth relating to the questions of national advisers,

national police, national arms, missionary propaganda, Yangtsze

Valley railways, and Fukien Province. Out of profound regard for

the intentions entertained by Japan, the Chinese Government took

these momentous demands into grave and careful consideration and

decided to negotiate with the Japanese Government frankly and

sincerely what were possible to negotiate. This is a manifestation

to Japan of the most profound regard which the Chinese Government

entertains for the relations between the two nations.

Ever since the opening of the negotiations China has been doing

her best to hasten their progress holding as many as three

conferences a week. As regards the articles in the second group,

the Chinese Government being disposed to allow the Japanese

Government to develop the economic relations of the two countries

in South Manchuria, realizing that the Japanese Government

attaches importance to its interests in that region, and wishing

to meet the hope of Japan, made a painful effort, without

hesitation, to agree to the extension of the 25-year lease of Port

Arthur and Dalny, the 36-year period of the South Manchurian

Railway and the 15-year period of the Antung-Mukden Railway, all

to 99 years; and to abandon its own cherished hopes to regain

control of these places and properties at the expiration of their

respective original terms of lease. It cannot but be admitted that

this is a most genuine proof of China's friendship for Japan.

As to the right of opening mines in South Manchuria, the Chinese

Government has already agreed to permit Japanese to work mines

within the mining areas designated by Japan. China has further

agreed to give Japan a right of preference in the event of

borrowing foreign capital for building railways or of making a

loan on the security of the local taxes in South Manchuria. The

question of revising the arrangement for the Kirin-Changchun

Railway has been settled in accordance with the proposal made by

Japan. The Chinese Government has further agreed to employ

Japanese first in the event of employing foreign advisers on

political, military, financial and police matters.

Furthermore, the provision about the repurchase period in the

South Manchurian Railway was not mentioned in Japan's original

proposal. Subsequently, the Japanese Government alleging that its

meaning was not clear, asked China to cancel the provision

altogether. Again, Japan at first demanded the right of Japanese

to carry on farming in South Manchuria, but subsequently she

considered the word "farming" was not broad enough and asked to

replace it with the phrase "agricultural enterprises." To these

requests the Chinese Government, though well aware that the

proposed changes could only benefit Japan, still acceded without

delay. This, too, is a proof of China's frankness and sincerity

towards Japan.

As regards matters relating to Shangtung the Chinese Government

has agreed to a majority of the demands.

The question of inland residence in South Manchuria is, in the

opinion of the Chinese Government, incompatible with the treaties

China had entered into with Japan and other Powers, still the

Chinese Government did its best to consider how it was possible to

avoid that incompatibility. At first, China suggested that the

Chinese Authorities should have full rights of jurisdiction over

Japanese settlers. Japan declined to agree to it. Thereupon China

reconsidered the question and revised her counter-proposal five or

six times, each time making some definite concession, and went so

far to agree that all civil and criminal cases between Chinese and

Japanese should be arranged according to existing treaties. Only

cases relating to land or lease contracts were reserved to be

adjudicated by Chinese Courts, as a mark of China's sovereignty

over the region. This is another proof of China's readiness to

concede as much as possible.

Eastern Inner Mongolia is not an enlightened region as yet and the

conditions existing there are entirely different from those

prevailing in South Manchuria. The two places, therefore, cannot

be considered in the same light. Accordingly, China agreed to open

commercial marts first, in the interests of foreign trade.

The Hanyehping Company mentioned in the third group is entirely a

private company, and the Chinese Government is precluded from

interfering with it and negotiating with another government to

make any disposal of the same as the Government likes, but having

regard for the interests of the Japanese capitalists, the Chinese

Government agreed that whenever, in future, the said company and

the Japanese capitalists should arrive at a satisfactory

arrangement for co-operation, China will give her assent thereto.

Thus the interests of the Japanese capitalists are amply

safeguarded.

Although the demand in the fourth group asking for a declaration

not to alienate China's coast is an infringement of her sovereign

rights, yet the Chinese Government offered to make a voluntary

pronouncement so far as it comports with China's sovereign rights.

Thus, it is seen that the Chinese Government, in deference to the

wishes of Japan, gave a most serious consideration even to those

demands, which gravely affect the sovereignty and territorial

rights of China as well as the principle of equal opportunity and

the treaties with foreign Powers. All this was a painful effort on

the part of the Chinese Government to meet the situation--a fact

of which the Japanese Government must be aware.

As regards the demands in the fifth group, they all infringe

China's sovereignty, the treaty rights of other Powers or the

principle of equal opportunity. Although Japan did not indicate

any difference between this group and the preceding four in the

list which she presented to China in respect to their character,

the Chinese Government, in view of their palpably objectionable

features, persuaded itself that these could not have been intended

by Japan as anything other than Japan's mere advice to China.

Accordingly China has declared from the very beginning that while

she entertains the most profound regard for Japan's wishes, she

was unable to admit that any of these matters could be made the

subject of an understanding with Japan. Much as she desired to pay

regard to Japan's wishes, China cannot but respect her own

sovereign rights and the existing treaties with other Powers. In

order to be rid of the seed for future misunderstanding and to

strengthen the basis of friendship, China was constrained to

iterate the reasons for refusing to negotiate on any of the

articles in the fifth group, yet in view of Japan's wishes China

has expressed her readiness to state that no foreign money was

borrowed to construct harbour work in Fukien Province. Thus it is

clear that China went so far as to see a solution for Japan of a

question that really did not admit of negotiation. Was there,

then, evasion, on the part of China?

Now, since the Japanese Government has presented a revised list of

demands and declared at the same time, that it will restore the

leased territory of Kiaochow, the Chinese Government reconsiders

the whole question and herewith submits a new reply to the

friendly Japanese Government.

In this reply the unsettled articles in the first group are stated

again for discussion.

As regards the second group, those articles which have already

been initialled are omitted. In connection with the question of

inland residence the police regulation clause has been revised in

a more restrictive sense. As for the trial of cases relating to

land and lease contracts the Chinese Government now permits the

Japanese Consul to send an officer to attend the proceedings.

Of the four demands in connection with that part of Eastern Inner

Mongolia which is within the jurisdiction of South Manchuria and

the Jehol intendency, China agrees to three.

China, also, agrees to the article relating to the Hanyehping

Company as revised by Japan.

It is hoped that the Japanese Government will appreciate the

conciliatory spirit of the Chinese Government in making this final

concession and forthwith give her assent thereto.

There is one more point. At the beginning of the present

negotiations it was mutually agreed to observe secrecy but

unfortunately a few days after the presentation of the demands by

Japan an Osaka newspaper published an "Extra" giving the text of

the demands. The foreign and the Chinese press has since been

paying considerable attention to this question and frequently

publishing pro-Chinese or pro-Japanese comments in order to call

forth the World's conjecture--a matter which the Chinese

Government deeply regrets.

The Chinese Government has never carried on any newspaper campaign

and the Chinese Minister of Foreign Affairs has repeatedly

declared this to the Japanese Minister.

In conclusion, the Chinese Government wishes to express its hope

that the negotiations now pending between the two countries will

soon come to an end and whatever misgivings foreign countries

entertain toward the present situation may be quickly dispelled.

The Peking Government, although fully aware of the perils now

confronting it, had dared to draft a complete reply to the revised

Demands and had reduced Japanese redundancy to effective limits.

Not only were various articles made more compact, but the

phraseology employed conveyed unmistakably, if in a somewhat

subtle way, that China was not a subordinate State treating with a

suzerain. Moreover, after dealing succinctly and seriously with

Groups I, II and III, the Chinese reply terminates abruptly, the

other points in the Japanese List being left entirely unanswered.

It is important to seize these points in the text that follows.

CHINA'S REPLY TO REVISED DEMANDS

China's Reply of May 1, 1915, to the Japanese Revised Demands of

April 26, 1915.

GROUP I

The Chinese Government and the Japanese Government, being desirous

of maintaining the general peace in Eastern Asia and further

strengthening the friendly relations and good neighbourhood

existing between the two nations, agree to the following

articles:--

Article 1. The Chinese Government declares that they will give

full assent to all matters upon which the Japanese and German

Governments may hereafter mutually agree, relating to the

disposition of all interests, which Germany, by virtue of treaties

or recorded cases, possesses in relation to the Province of

Shantung.

The Japanese Government declares that when the Chinese Government

give their assent to the disposition of interests above referred

to, Japan will restore the leased territory of Kiaochow to China;

and further recognize the right of the Chinese Government to

participate in the negotiations referred to above between Japan

and Germany.

Article 2. The Japanese Government consents to be responsible for

the indemnification of all losses occasioned by Japan's military

operation around the leased territory of Kiaochow. The customs,

telegraphs and post offices within the leased territory of

Kiaochow shall, prior to the restoration of the said leased

territory to China, be administered as heretofore for the time

being. The railways and telegraph lines erected by Japan for

military purposes are to be removed forthwith. The Japanese troops

now stationed outside the original leased territory of Kiaochow

are now to be withdrawn first, those within the original leased

territory are to be withdrawn on the restoration of the said

leased territory to China.

Article 3. (Changed to an exchange of notes.)

The Chinese Government declares that within the Province of

Shantung and along its coast no territory or island will be ceded

or leased to any Power under any pretext.

Article 4. The Chinese Government consent that as regards the

railway to be built by China herself from Chefoo or Lung kow to

connect with the Kiaochow-Tsinanfu railway, if Germany is willing

to abandon the privilege of financing the Chefoo-Weihsien line,

China will approach Japanese capitalists for a loan.

Article 5. The Chinese Government engage, in the interest of trade

and for the residence of foreigners, to open by herself as soon as

possible certain suitable places in the Province of Shantung as

Commercial Ports.

(Supplementary Exchange of Notes)

The places which ought to be opened are to be chosen, and the

regulations are to be drafted by the Chinese Government, but the

Japanese Minister must be consulted before making a decision.

Article 6. If the Japanese and German Governments are not able to

come to a definite agreement in future in their negotiations

respecting transfer, etc., this provisional agreement contained in

the foregoing articles shall be void.

GROUP II [Footnote: Six articles found in Japan's Revised Demands

are omitted here as they had already been initiated by the Chinese

Foreign Minister and the Japanese minister.]

The Chinese Government and the Japanese Government, with a view to

developing their economic relations in South Manchuria, agree to

the following articles:--

Article 2. Japanese subjects in South Manchuria may, by

arrangement with the owners, lease land required for erecting

suitable buildings for trade and manufacture or agricultural

enterprises.

Article 3. Japanese subjects shall be free to reside and travel in

South Manchuria and to engage in business and manufacture of any

kind whatsoever.

Article 3a. The Japanese subjects referred to in the preceding two

articles, besides being required to register with the local

authorities pass-ports which they must procure under the existing

regulations, shall also observe police rules and regulations and

pay taxes in the same manner as Chinese. Civil and criminal cases

shall be tried and adjudicated by the authorities of the defendant

nationality and an officer can be deputed to attend the

proceedings. But all cases purely between Japanese subjects and

mixed cases between Japanese or Chinese, relating to land or

disputes arising from lease contracts, shall be tried and

adjudicated by Chinese Authorities and the Japanese Consul may

also depute an officer to attend the proceedings. When the

judicial system in the said Province is completely reformed, all

the civil and criminal cases concerning Japanese subjects shall be

tried entirely by Chinese law courts.

RELATING TO EASTERN INNER MONGOLIA (To be Exchanged by Notes)

1. The Chinese Government declare that China will not in future

pledge the taxes, other than customs and salt revenue of that part

of Eastern Inner Mongolia under the jurisdiction of South

Manchuria and Jehol Intendency, as security for raising a foreign

loan.

2. The Chinese Government declare that China will herself provide

funds for building the railways in the part of Eastern Inner

Mongolia under the jurisdiction of South Manchuria and the Jehol

Intendency; if foreign capital is required, China will negotiate

with Japanese capitalists first, provided this does not conflict

with agreements already concluded with other Powers.

The Chinese Government agree, in the interest of trade and for the

residence of foreigners, to open by China herself certain suitable

places in that part of Eastern Inner Mongolia under the

jurisdiction of South Manchurian and the Jehol Intendency, as

Commercial Marts.

The regulations for the said Commercial Marts will be made in

accordance with those of other Commercial Marts opened by China

herself.

GROUP III

The relations between Japan and the Hanyehping Company being very

intimate, if the said Company comes to an agreement with the

Japanese capitalists for co-operation, the Chinese Government

shall forthwith give their consent thereto. The Chinese Government

further declare that China will not convert the company into a

state enterprise, not confiscate it, nor cause it to borrow and

use foreign capital other than Japanese.

Letter to be addressed by the Japanese Minister to the Chinese

Minister of Foreign Affairs.

Excellency: I have the honour to state that a report has reached

me that the Chinese Government have given permission to foreign

nations to construct, on the coast of Fukien Province, dock-yards,

coaling stations for military use, naval bases and other

establishments for military purposes; and further, that the

Chinese Government are borrowing foreign capital for putting up

the above-mentioned constructions or establishments. I shall be

much obliged if the Chinese Government will inform me whether or

not these reports are well founded in fact.

Reply to be addressed by the Chinese Minister of Foreign Affairs

to the Japanese Minister.

Excellency: I have the honour to acknowledge the receipt of your

Excellency's Note of ... In reply I beg to state that the

Chinese Government have not given permission to foreign Powers to

construct, on the coast of Fukien Province, dock-yards, coaling

stations for military use, naval bases or other establishments for

military purposes; nor do they contemplate to borrow foreign

capital for putting up such constructions or establishments.

Within forty-eight hours of this passage-at-arms of the 1st May it

was understood in Peking that Japan was meditating a serious step.

That vague feeling of unrest which so speedily comes in capitals

when national affairs reach a crisis was very evident, and the

word "ultimatum" began to be whispered. It was felt that whilst

China had held to her rights to the utmost and had received

valuable indirect support from both England and the United States,

the world-situation was such that it would be difficult to prevent

Japan from proceeding to extremities. Accordingly there was little

real surprise when on the 7th May Japan filed an ultimatum

demanding a satisfactory reply within 48 hours to her Revised

Demands--failing which those steps deemed necessary would be

taken. A perusal of the text of the Ultimatum will show an

interesting change in the language employed. Coaxing having

failed, and Japan being 'now convinced that so long as she did not

seek to annex the rights of other Foreign Powers in China open

opposition could not be offered to her,' states her case very

defiantly. One significant point, however, must be carefully

noted--that she agrees "to detach Group V from the present

negotiations and to discuss it separately in the future." It is

this fact which remains the sword of Damocles hanging over China's

head; and until this sword has been flung back into the waters of

the Yellow Sea the Far Eastern situation will remain perilous.

JAPAN'S ULTIMATUM TO CHINA

Japan's Ultimatum delivered by the Japanese Minister to the

Chinese Government, on May 7th, 1915.

The reason why the Imperial Government opened the present

negotiations with the Chinese Government is first to endeavour to

dispose of the complications arising out of the war between Japan

and China, and secondly to attempt to solve those various

questions which are detrimental to the intimate relations of China

and Japan with a view to solidifying the foundation of cordial

friendship subsisting between the two countries to the end that

the peace of the Far East may be effectually and permanently

preserved. With this object in view, definite proposals were

presented to the Chinese Government in January of this year, and

up to today as many as twenty-five conferences have been held with

the Chinese Government in perfect sincerity and frankness.

In the course of the negotiation the Imperial Government have

consistently explained the aims and objects of the proposals in a

conciliatory spirit, while on the other hand the proposals of the

Chinese Government, whether important or unimportant, have been

attended to without any reserve.

It may be stated with confidence that no effort has been spared to

arrive at a satisfactory and amicable settlement of those

questions.

The discussion of the entire corpus of the proposals was

practically at an end at the twenty-fourth conference; that is on

the 17th of the last month. The Imperial Government, taking a

broad view of the negotiation and in consideration of the points

raised by the Chinese Government, modified the original proposals

with considerable concessions and presented to the Chinese

Government on the 26th of the same month the revised proposals for

agreement, and at the same time it was offered that, on the

acceptance of the revised proposals, the Imperial Government

would, at a suitable opportunity, restore, with fair and proper

conditions, to the Chinese Government the Kiaochow territory, in

the acquisition of which the Imperial Government had made a great

sacrifice.

On the 1st of May, the Chinese Government delivered the reply to

the revised proposals of the Japanese Government, which is

contrary to the expectations of the Imperial Government. The

Chinese Government not only did not give a careful consideration

to the revised proposals but even with regard to the offer of the

Japanese Government to restore Kiaochow to the Chinese Government

the latter did not manifest the least appreciation for Japan's

good will and difficulties.

From the commercial and military point of view Kiaochow is an

important place, in the acquisition of which the Japanese Empire

sacrificed much blood and money, and, after the acquisition the

Empire incurs no obligation to restore it to China. But with the

object of increasing the future friendly relations of the two

countries, they went to the extent of proposing its restoration,

yet to her great regret, the Chinese Government did not take into

consideration the good intention of Japan and manifest

appreciation of her difficulties. Furthermore, the Chinese

Government not only ignored the friendly feelings of the Imperial

Government in offering the restoration of Kiaochow Bay, but also

in replying to the revised proposals they even demanded its

unconditional restoration; and again China demanded that Japan

should bear the responsibility of paying indemnity for all the

unavoidable losses and damages resulting from Japan's military

operations at Kiaochow; and still further in connection with the

territory of Kiaochow China advanced other demands and declared

that she has the right of participation at the future peace

conference to be held between Japan and Germany. Although China is

fully aware that the unconditional restoration of Kiaochow and

Japan's responsibility of indemnification for the unavoidable

losses and damages can never be tolerated by Japan yet she

purposely advanced these demands and declared that this reply was

final and decisive.

Since Japan could not tolerate such demands the settlement of the

other questions, however compromising it may be, would not be to

her interest. The consequence is that the present reply of the

Chinese Government is, on the whole, vague and meaningless.

Furthermore, in the reply of the Chinese Government to the other

proposals in the revised list of the Imperial Government, such as

South Manchuria and Eastern Inner Mongolia, where Japan

particularly has geographical, commercial, industrial and

strategic relations, as recognized by all the nations, and made

more remarkable in consequence of the two wars in which Japan was

engaged the Chinese Government overlooks these facts and does not

respect Japan's position in that place. The Chinese Government

even freely altered those articles which the Imperial Government,

in a compromising spirit, have formulated in accordance with the

statement of the Chinese Representatives thereby making the

statements of the Representatives an empty talk; and on seeing

them conceding with the one hand and withholding with the other it

is very difficult to attribute faithfulness and sincerity to the

Chinese authorities.

As regards the articles relating to the employment of advisers,

the establishment of schools, and hospitals, the supply of arms

and ammunition and the establishment of arsenals and railway

concessions in South China in the revised proposals they were

either proposed with the proviso that the consent of the Power

concerned must be obtained, or they are merely to be recorded in

the minutes in accordance with the statements of the Chinese

delegates, and thus they are not in the least in conflict either

with Chinese sovereignty or her treaties with the Foreign Powers,

yet the Chinese Government in their reply to the proposals,

alleging that these proposals are incompatible with their

sovereign rights and treaties with Foreign Powers, defeat the

expectations of the Imperial Government. However in spite of such

attitude of the Chinese Government, the Imperial Government,

though regretting to see that there is no room for further

negotiations, yet warmly attached to the preservation of the peace

of the Far East, is still hoping for a satisfactory settlement in

order to avoid the disturbance of the relations.

So in spite of the circumstances which admitted no patience, they

have reconsidered the feelings of the Government of their

neighbouring country and, with the exception of the article

relating to Fukien which is to be the subject of an exchange of

notes as has already been agreed upon by the Representatives of

both nations, will undertake to detach the Group V from the

present negotiation and discuss it separately in the future.

Therefore the Chinese Government should appreciate the friendly

feelings of the Imperial Government by immediately accepting

without any alteration all the articles of Group I, II, III, and

IV and the exchange of notes in connection with Fukien province in

Group V as contained in the revised proposals presented on the

26th of April.

The Imperial Government hereby again offer their advice and hope

that the Chinese Government, upon this advice, will give a

satisfactory reply by 6 o'clock P. M. on the 9th day of May. It is

hereby declared that if no satisfactory reply is received before

or at the specified time, the Imperial Government will take steps

they may deem necessary.

EXPLANATORY NOTE

Accompanying Ultimatum delivered to the Minister of Foreign

Affairs by the Japanese Minister, May 7th, 1915.

1. With the exception of the question of Fukien to be arranged by

an exchange of notes, the five articles postponed for later

negotiation refer to (a) the employment of advisers, (b) the

establishment of schools and hospitals, (c) the railway

concessions in South China, (d) the supply of arms and ammunition

and the establishment of arsenals and (e) right of Missionary

propaganda.

2. The acceptance by the Chinese Government of the article

relating to Fukien may be either in the form as proposed by the

Japanese Minister on the 26th of April or in that contained in the

Reply of the Chinese Government of May 1st. Although the Ultimatum

calls for the immediate acceptance by China of the modified

proposals presented on April 26th, without alteration but it

should be noted that it merely states the principle and does not

apply to this article and articles 4 and 5 of this note.

3. If the Chinese Government accept all the articles as demanded

in the Ultimatum the offer of the Japanese Government to restore

Kiaochow to China, made on the 26th of April, will still hold

good.

4. Article 2 of Group II relating to the lease or purchase of

land, the terms "lease" and "purchase" may be replaced by the

terms "temporary lease" and "perpetual lease" or "lease on

consultation," which means a long-term lease with its

unconditional renewal.

Article 4 of Group II relating to the approval of police laws and

Ordinances and local taxes by the Japanese Council may form the

subject of a secret agreement.

5. The phrase "to consult with the Japanese Government" in

connection with questions of pledging the local taxes for raising

loans and the loans for the construction of railways, in Eastern

Inner Mongolia, which is similar to the agreement in Manchuria

relating to the matters of the same kind, may be replaced by the

phrase "to consult with the Japanese capitalists."

The article relating to the opening of trade marts in Eastern

Inner Mongolia in respect to location and regulations, may,

following their precedent set in Shantung, be the subject of an

exchange of notes.

6. From the phrase "those interested in the Company" in Group III

of the revised list of demands, the words "those interested in"

may be deleted.

7. The Japanese version of the Formal Agreement and its annexes

shall be the official text or both the Chinese and Japanese shall

be the official texts.

Whilst it would be an exaggeration to say that open panic followed

the filing of this document, there was certainly very acute

alarm,--so much so that it is today known in Peking that the

Japanese Legation cabled urgently to Tokio that even better terms

could be obtained if the matter was left to the discretion of the

men on the spot. But the Japanese Government had by now passed

through a sufficiently anxious time itself, being in possession of

certain unmistakable warnings regarding what was likely to happen

after a world-peace had come,--if matters were pressed too far.

Consequently nothing more was done, and on the following day China

signified her acceptance of the Ultimatum in the following terms.

Reply of the Chinese Government to the Ultimatum of the Japanese

Government, delivered to the Japanese Minister by the Minister of

Foreign Affairs on the 8th of May, 1915,

On the 7th of this month, at three o'clock P. M. the Chinese

Government received an Ultimatum from the Japanese Government

together with an Explanatory Note of seven articles. The Ultimatum

concluded with the hope that the Chinese Government by six o'clock

P. M. on the 9th of May will give a satisfactory reply, and it is

hereby declared that if no satisfactory reply is received before

or at the specified time, the Japanese Government will take steps

she may deem necessary.

The Chinese Government with a view to preserving the peace of the

Far East hereby accepts, with the exception of those five articles

of Group V postponed for later negotiation, all the articles of

Group I, II, III, and IV and the exchange of notes in connection

with Fukien Province in Group V as contained in the revised

proposals presented on the 26th of April, and in accordance with

the Explanatory Note of seven articles accompanying the Ultimatum

of the Japanese Government with the hope that thereby all the

outstanding questions are settled, so that the cordial

relationship between the two countries may be further

consolidated. The Japanese Minister is hereby requested to appoint

a day to call at the Ministry of Foreign Affairs to make the

literary improvement of the text and sign the Agreement as soon as

possible.

Thus ended one of the most extraordinary diplomatic negotiations

ever undertaken in Peking.

CHAPTER VII

THE ORIGIN OF THE TWENTY-ONE DEMANDS

The key to this remarkable business was supplied by a cover sent

anonymously to the writer during the course of these negotiations

with no indication as to its origin. The documents which this

envelope contained are so interesting that they merit attention at

the hands of all students of history, explaining as they do the

psychology of the Demands as well as throwing much light on the

manner in which the world-war has been viewed in Japan.

The first document is purely introductory, but is none the less

interesting. It is a fragment, or rather a precis of the momentous

conversation which took place between Yuan Shih-kai and the

Japanese Minister when the latter personally served the Demands on

the Chief Executive and took the opportunity to use language

unprecedented even in the diplomatic history of Peking.

The precis begins in a curious way. After saying that "the

Japanese Minister tried to influence President Yuan Shih-kai with

the following words," several long lines of asterisks suggest that

after reflection the unknown chronicler had decided, for political

reasons of the highest importance, to allow others to guess how

the "conversation" opened. From the context it seems absolutely

clear that the excised words have to deal with the possibility of

the re-establishment of the Empire in China--a very important

conclusion in view of what followed later in the year. Indeed

there is no reason to doubt that the Japanese Envoy actually told

Yuan Shih-kai that as he was already virtually Emperor it lay

within his power to settle the whole business and to secure his

position at one blow. In any case the precis begins with these

illuminating sentences:

... Furthermore, the Chinese revolutionists are in close touch and

have intimate relations with numerous irresponsible Japanese, some

of whom have great influence and whose policy is for strong

measures. Our Government has not been influenced by this policy,

but if your Government does not quickly agree to these

stipulations, it will be impossible to prevent some of our

irresponsible people from inciting the Chinese revolutionists to

create trouble in China.

The majority of the Japanese people are also opposed to President

Yuan and Yuan's Government. They all declare that the President

entertains anti-Japanese feeling and adopts the policy of

"befriending the Far" (Europe and America) and "antagonizing the

Near" (Japan). Japanese public opinion is therefore exceedingly

hostile.

Our Government has all along from first to last exerted its best

efforts to help the Chinese Government, and if the Chinese

Government will speedily agree to these stipulations it will have

thus manifested its friendship for Japan.

The Japanese people will then be able to say that the President

never entertained anti-Japanese feelings, or adopted the policy of

"befriending the Far and antagonizing the Near." Will not this

then be indeed a bona fide proof of our friendly relations?

The Japanese Government also will then be inclined to render

assistance to President Yuan's Government whenever it is necessary

... .

We are admittedly living in a remarkable age which is making waste

paper of our dearest principles. But in all the welter which the

world war has made it would be difficult to find anything more

extraordinary than these few paragraphs. Japan, through her

official representative, boldly tears down the veil hiding her

ambitions, and using the undoubted menace which Chinese

revolutionary activities then held for the Peking Government,

declares in so many words that unless President Yuan Shih-kai bows

his head to the dictation of Tokio, the duel which began in Seoul

twenty-five years ago would be openly resumed.

Immediately following the "conversation" is the principal document

in the dossier. This is nothing less than an exhaustive

Memorandum, divided into two sections, containing the policy

advocated by the Japanese secret society, called the Black Dragon

Society, which is said to have assumed that name on account of the

members (military officers) having studied the situation in the

Heilungchiang (or "Black Dragon") province of Manchuria. The

memorandum is the most remarkable document dealing with the Far

East which has come to light since the famous Cassini Convention

was published in 1896. Written presumably late in the autumn of

1914 and immediately presented to the Japanese Government, it may

undoubtedly be called the fulminate which exploded the Japanese

mine of the 18th January, 1915. It shows such sound knowledge of

world-conditions, and is so scientific in its detachment that

little doubt can exist that distinguished Japanese took part in

its drafting. It can therefore be looked upon as a genuine

expression of the highly educated Japanese mind, and as such

cannot fail to arouse serious misgivings. The first part is a

general review of the European War and the Chinese Question: the

second is concerned with the Defensive Alliance between China and

Japan which is looked upon as the one goal of all Japanese

Diplomacy.

PART I. THE EUROPEAN WAR AND THE CHINESE QUESTION

The present gigantic struggle in Europe has no parallel in

history. Not only will the equilibrium of Europe be affected and

its effect felt all over the globe, but its results will create a

New Era in the political and social world. Therefore, whether or

not the Imperial Japanese Government can settle the Far Eastern

Question and bring to realization our great Imperial policy

depends on our being able to skilfully avail ourselves of the

world's general trend of affairs so as to extend our influence and

to decide upon a course of action towards China which shall be

practical in execution. If our authorities and people view the

present European War with indifference and without deep concern,

merely devoting their attention to the attack on Kiaochow,

neglecting the larger issues of the war, they will have brought to

nought our great Imperial policy, and committed a blunder greater

than which it can not be conceived. We are constrained to submit

this statement of policy for the consideration of our authorities,

not because we are fond of argument but because we are deeply

anxious for our national welfare.

No one at present can foretell the outcome of the European War. If

the Allies meet with reverses and victory shall crown the arms of

the Germans and Austrians, German militarism will undoubtedly

dominate the European Continent and extend southward and eastward

to other parts of the world. Should such a state of affairs happen

to take place the consequences resulting therefrom will be indeed

great and extensive. On this account we must devote our most

serious attention to the subject. If, on the other hand, the

Germans and Austrians should be crushed by the Allies, Germany

will be deprived of her present status as a Federated State under

a Kaiser. The Federation will be disintegrated into separate

states, and Prussia will have to be content with the status of a

second-rate Power. Austria and Hungary, on account of this defeat,

will consequently be divided. What their final fate shall be, no

one would now venture to predict. In the meantime Russia will

annex Galicia and the Austrian Poland: France will repossess

Alsace and Lorraine: Great Britain will occupy the German Colonies

in Africa and the South Pacific; Servia and Montenegro will take

Bosnia, Herzegovina and a certain portion of Austrian Territory;

thus making such great changes in the map of Europe that even the

Napoleonic War in 1815 could not find a parallel.

When these events take place, not only will Europe experience

great changes, but we should not ignore the fact that they will

occur also in China and in the South Pacific. After Russia has

replaced Germany in the territories lost by Germany and Austria,

she will hold a controlling influence in Europe, and, for a long

time to come, will have nothing to fear from her western frontier.

Immediately after the war she will make an effort to carry out her

policy of expansion in the East and will not relax that effort

until she has acquired a controlling influence in China. At the

same time Great Britain will strengthen her position in the

Yangtsze Valley and prohibit any other country from getting a

footing there. France will do likewise in Yunnan province using it

as her base of operations for further encroachments upon China and

never hesitate to extend her advantages. We must therefore

seriously study the situation remembering always that the combined

action of Great Britain, Russia, and France will not only affect

Europe but that we can even foresee that it will also affect

China.

Whether this combined action on the part of England, France and

Russia is to terminate at the end of the war or to continue to

operate, we can not now predict. But after peace in Europe is

restored, these Powers will certainly turn their attention to the

expansion of their several spheres of interest in China, and, in

the adjustment, their interests will most likely conflict with one

another. If their interests do not conflict, they will work

jointly to solve the Chinese Question. On this point we have not

the least doubt. If England, France and Russia are actually to

combine for the coercion of China, what course is to be adopted by

the Imperial Japanese Government to meet the situation? What

proper means shall we employ to maintain our influence and extend

our interests within this ring of rivalry and competition? It is

necessary that we bear in mind the final results of the European

War and forestall the trend of events succeeding it so as to be

able to decide upon a policy towards China and determine the

action to be ultimately taken. If we remain passive, the Imperial

Japanese Government's policy towards China will lose that

subjective influence and our diplomacy will be checked forever by

the combined force of the other Powers. The peace of the Far East

will be thus endangered and even the existence of the Japanese

Empire as a nation will no doubt be imperilled. It is therefore

our first important duty at this moment to enquire of our

Government what course is to be adopted to face that general

situation after the war? What preparations are being made to meet

the combined pressure of the Allies upon China? What policy has

been followed to solve the Chinese Question? When the European War

is terminated and peace restored we are not concerned so much with

the question whether it be the Dual Monarchies or the Triple

Entente which emerge victorious but whether, in anticipation of

the future expansion of European influence in the Continents of

Europe and Asia, the Imperial Japanese Government should or should

not hesitate to employ force to check the movement before this

occurrence. Now is the most opportune moment for Japan to quickly

solve the Chinese Question. Such an opportunity will not occur for

hundreds of years to come. Not only is it Japan's divine duty to

act now, but present conditions in China favour the execution of

such a plan. We should by all means decide and act at once. If our

authorities do not avail themselves of this rare opportunity,

great difficulty will surely be encountered in future in the

settlement of this Chinese Question. Japan will be isolated from

the European Powers after the war, and will be regarded by them

with envy and jealousy just as Germany is now regarded. Is it not

then a vital necessity for Japan to solve at this very moment the

Chinese Question?

No one--not even those who care nothing for politics--can deny

that there is in this document an astounding disclosure of the

mental attitude of the Japanese not only towards their enemies but

towards their friends as well. They trust nobody, befriend nobody,

envy nobody; they content themselves with believing that the whole

world may in the not distant future turn against them. The burden

of their argument swings just as much against their British ally

as against Germany and Austria; and the one and only matter which

preoccupies Japanese who make it their business to think about

such things is to secure that Japan shall forestall Europe in

seizing control of China. It is admitted in so many words that it

is too early to know who is to triumph in the gigantic European

struggle; it is also admitted that Germany will forever be the

enemy. At the same time it is expected, should the issue of the

struggle be clearcut and decisive in favour of the Allies, that a

new three-Power combination formed by England, France and Russia

may be made to operate against Japan. Although the alliance with

England, twice renewed since 1902, should occupy as important a

place in the Far East as the Entente between England and France

occupies in Europe, not one Japanese in a hundred knows or cares

anything about such an arrangement; and even if he has knowledge

of it, he coolly assigns to his country's major international

commitment a minimum and constantly diminishing importance. In his

view the British Alliance is nothing but a piece of paper which

may be consumed in the great bonfire now shedding such a lurid

light over the world. What is germane to the matter is his own

plan, his own method of taking up arms in a sea of troubles. The

second part of the Black Dragon Society's Memorandum, pursuing the

argument logically and inexorably and disclosing traces of real

political genius, makes this unalterably clear.

Having established clearly the attitude of Japan towards the

world--and more particularly towards the rival political

combinations now locked together in a terrible death-struggle,

this second part of the Memorandum is concerned solely with China

and can be broken into two convenient sections. The first section

is constructive--the plan for the reconstruction of China is

outlined in terms suited to the Japanese genius. This part begins

with an illuminating piece of rhetoric.

The Fight for the Republic in China(#4522) · 第 1 / 13 章