CHAPTER XV

FOREIGNERS AND FOREIGN RELATIONS

By the Protocols of February and August, 1904, and still more perfectly

by the Convention of November, 1905, Japan became the sole official

medium for communication between Korea and all other foreign Powers.

Indeed, as the history of the relations between the two countries—already

narrated in summary form—abundantly shows, thus much of control over

Korean affairs had been demonstrated to be necessary for the welfare

of both. But apart from considerations which are fitted to influence

the judgment of either Japanese or Koreans, the question arises: How is

the Protectorate of Japan likely to affect other foreigners in their

relations to Korea? At present the foreign interests concerned in the

solution of the general problem are chiefly of two orders: they are the

interests of trade and commerce, and the missionary interests. The larger

diplomatic controversies, except so far as these may possibly arise

in adjusting these two classes of interests, have now, it would seem,

been satisfactorily arranged for some time to come. The recent treaties

concluded between Japan on the one side, and Great Britain, France,

and Russia on the other, all expressly guarantee respect for Japan’s

control over the peninsula. In addition to the arrangement for a sort

of reciprocal “hands-off” from each other’s possessions and “paramount

interests” in the Far East, into which France and Russia have entered,

Great Britain has pledged her support in defence of the Protectorate.

All these nations have, moreover, solemnly committed themselves to the

maintenance of the integrity of the Empire of China and to the policy of

the so-called “open door.” How unlikely it is, then, that the Japanese

Government should proceed at once to violate treaty obligations which it

has itself been at such pains and expense of men and money to secure, and

the maintenance of which, to the satisfaction of its foreign allies, so

intimately concerns its own future welfare.

These same Conventions which confer certain rights upon the Japanese

Government in Korea just as plainly put this Government under certain

solemn obligations. The foreign Powers have, strictly speaking, no

diplomatic corps at Seoul. Their Ambassadors and Ministers at Tokyo are

their representatives for Korea as well as for Japan. All foreign Powers

are represented by officials residing in the capital city of Korea who

have consular functions only. Since, however, such functions must, in

general, be exercised on the spot, and since other business can often

be transacted only there, with any tolerable degree of convenience, the

Consuls at Seoul are admitted to correspond with the Residency-General

and with the various subordinate Residencies. Naming them in the order

of their seniority, Belgium, China, Great Britain, Russia, France, and

the United States are now (in 1907) each represented by a Consul-General,

and Italy by a Consul. “Where foreign rights of any kind,” says Mr.

Stevens—who in saying this speaks both as Adviser to the Korean Council

of State and also as Counsellor to the Resident-General—“are threatened

or molested, it is the duty of the Japanese Government to furnish

safeguards or to provide a remedy. The Japanese Government has the

right to employ for that purpose all the machinery which the laws of

Korea place in its hands; and it would seem logically to follow, also,

that where such means prove inadequate, it is the right, as well as the

duty, of the Japanese Government to insist that the deficiency shall be

supplied by appropriate legislation or by such other method as may be

reasonable and just under the circumstances.”

It does not follow from this, however, that either the rights of the

Japanese Government allow, or their obligations compel, it to go to any

length demanded by foreign business men, or concessionaires, or even by

foreign missionaries, in promoting their real or fancied interests, or in

redressing their fancied as well as their real wrongs. There are plainly

limits to be observed in meeting demands and requests of this character.

It may be the duty of the Japanese Government, for example, to secure

and defend all the mining and other concessions made to foreigners which

can prove themselves to have been honestly obtained and administered in

substantial accord with the initial contract. Inasmuch as few concessions

of any sort among those obtained from the last Emperor can stand the

test of honesty, or even of tolerable freedom from corruption, it will

doubtless be well for the Japanese Government not to be over-scrupulous

or too curiously enquiring in many cases. But it certainly is not

its duty to allow the Imperial treasury to be plundered _ad libitum_

by contracts made, and concessions obtained, through combinations of

corrupt Korean officials with greedy and unscrupulous foreigners. Again:

it may be the duty of the Japanese Government to protect a certain

“freedom of the press,” in the case of publications owned and managed

by foreigners, even if printed in the vernacular and distributed widely

among the more ignorant and excitable of the native population. It is

certainly greatly to the credit of the Japanese officials to have borne

so quietly the slanderous and abusive attacks upon their government of

one such publication in Seoul. But surely there may be a limit here also.

Undoubtedly that limit was reached, when the vernacular edition of this

publication excited the natives to sedition, revolt, and assassination,

especially at so critical a juncture in the national affairs as occurred

during the spring and summer of 1907. Possibly, there is also a limit

beyond which misrepresentation and falsehood directed against individuals

not connected with the government ought not to be allowed to pass.[79]

It must also be remembered that the success of the Residency-General

in the economic, educational, and judicial reform of Korea depends

largely upon husbanding and developing the resources of Korea. In all

this, Mr. Megata, the Financial Adviser, has been the right-hand man of

Marquis Ito, the Resident-General. If these resources are squandered,

or “conceded” in such a way as to deprive the Korean Government and the

Korean people of the natural wealth of their own land, then the plans

for every kind of reform will be crippled, if not wholly thwarted. To

encourage legitimate business with all nations is for the advantage of

both the Japanese and the Korean Governments; such a policy is directly

in the line of Marquis Ito’s intentions for the reform and uplifting of

the economic condition of the peninsula. No one person would suffer so

severely in mind and in reputation as would the Resident-General himself

if this policy failed through any fault of his own or of his country’s

administration in Korea. But, on the other hand, to check the evil

consequences of illegitimate schemes of promotion already accomplished,

and to prevent the initiation of such schemes in the future, is an

equally necessary part of this policy.

On the whole subject of the attitude of the Japanese Government toward

foreign business interests in Korea the following lengthy quotations may

be considered as authoritative:

The foreign trade of Korea has been steadily increasing,

especially during the past six years. Making due allowance

for the increase of imports brought about by the war, the

proportion of normal increase gives every sign of healthy

growth. Japan’s trade is much the largest. Korean exports go

almost exclusively to Japan, except ginseng, which is sent

to China. Of the imports from Japan a large proportion are

foreign, as Japan is put down in the Customs Returns as the

country from which the importation was made, the country of

origin not being given. As Japan is the place of transhipment

for much of the trade, and as much of it passes through

Japanese hands, it would be difficult to differentiate. There

are certain important staples, however, concerning which there

can be no ambiguity—American kerosene, for example, which

practically monopolizes the market. Rails and railway equipment

also come from foreign countries, the cars and engines from the

United States. As Korea increases in wealth and her purchasing

capacity grows correspondingly, there will be a field for other

machinery, modern farming implements among the rest, no doubt.

American and European enterprise has not been so conspicuous

in the field of ordinary commercial enterprise as in other

directions. Concessions of one kind and another have attracted

more attention than trade and commerce. The most conspicuous

and successful undertaking of this kind is the Oriental

Consolidated Mining Company at Unsan in Northern Korea,

originally American; now it is generally understood to be

largely English in ownership. This was the first mining

concession ever granted to foreigners in Korea. His Majesty

the Emperor was originally a half owner in the company, but

sold out his interest for 300,000 _yen_ and a payment of 25,000

_yen_ per annum. The company’s concession covers a large area,

and the capital is $5,000,000, American money. At the outset

the enterprise did not look very promising, but by skilful

management it grew until it reached its present important

proportions.

It would probably be idle to attempt an analysis of the

advantages and disadvantages to Korea of enterprises of this

kind. Certainly, if there are any advantages, the Unsan

concession should be a favorable example. That it has been of

great advantage to Korea is at least an open question. On the

one side, in its favor, may be set the large amounts annually

expended by the company in wages, etc. This is undoubtedly a

good thing while it lasts; but gold mines are exhausted sooner

or later, and the benefits they confer are only temporary. The

abandoned mining sites in America, no matter how prosperous in

their day, can hardly be instanced as examples of prosperity

for the people of the country in which they are located, who

are _not_ owners of successful mines.... Against this, and

other like enterprises, may be cited, for one thing, the

disadvantage of the wholesale destruction of timber. The

country about Unsan has been practically denuded of timber, and

in an agricultural country like Korea this is undoubtedly an

evil.

This much has been said of the effects of the operations of a

successful company, conducted on a conservative basis, merely

to show that the advantages of the development of Korean

resources about which so much has been said, are not unmixed

blessings. The matter is of some importance in the light of all

that has been published of late upon the subject.... English

and German companies each obtained a mining concession, but

neither proved financially successful. Japanese also obtained

one concession, in which American capital is at present

interested.... The system of granting mining concessions

was open to so many objections that foreign representatives

frequently importuned the Korean Government to issue mining

regulations under which the mineral resources of the country

could be systematically developed. Nothing was done, however,

until after the establishment of the Residency-General,

when a mining law was passed. This law provides for mining

under proper safeguards as regards public and private

interests. Under the old system, or rather lack of system, the

concessionaire could do practically what he pleased within

the limits of his concession. Now he must conform to laws and

regulations which permit him to carry on his business under

conditions which promote the interests and conserve the rights

of all concerned.

The business methods which have developed in Korea since

intercourse with foreigners began are the natural outgrowth of

the circumstances and of the practices prevailing before that

time. Reference is not here intended to ordinary commercial

transactions, but to that species of business which has its

rise in government favors and thrives by government patronage.

In a country where the Government is the fountain-head of

favors of every description, it was perhaps inevitable that

the results should be those which we see in Korea. Viewed from

the most favorable standpoint they certainly leave much to be

desired. The Government, or, as has really been the actual

fact, the Emperor, has been persuaded to enter into a number

of business enterprises, both public and private, not a single

one of which has been successful and every one of which has

been the occasion of loss either to the public treasury or to

His Majesty’s privy purse. Undertakings of various kinds—wooden

manufactories, glass factories, railways, etc.—have been

projected, but have gone no further than the stage of involving

the employment of foreign directors, assistants, and the like,

and have stopped there. Sometimes foreign experts have been

employed who were really capable of conducting the business for

which their services were secured. They have come to Korea,

only to discover that no preparations have been made to carry

on the enterprises with which they were to be connected. In

other cases, the persons engaged to oversee the projected

enterprises have been notoriously incompetent, and the

whole affair has smacked largely of fraud from beginning to

end. It would require too much space to recount the various

undertakings of a public nature which have been attempted and

have ignominiously failed. The result has been monotonously

the same in every instance—namely, the payment by the Korean

Government of large sums of money for useless material and for

services never rendered. Another source of heavy loss has been

the contracts made on behalf of the Government for all sorts of

things—rice that was never needed, arms and ammunition which

were worthless, railroad material which was never delivered,

and so on through the long list of wasteful expenditure of the

public funds. It is something hardly capable of direct proof,

but there is no reasonable doubt that almost every one of these

enterprises had its inspiration in the desire for illicit gain

by one or another of the officials interested. The explanation

of the foreigners interested may be summed up in the phrase,

“that is the way business is done in Korea.” The Empire has

been the happy hunting-ground for the foreign business man

not over-scrupulous as to the methods by which money was to

be made. Equally it has held out golden opportunities to the

promoter and hunter for “concessions.” This does not include

those foreigners who are willing to take the chances of

success and the pecuniary risks inseparable from enterprises

like mining, for example, but that other class of promoters

who desire to get something for nothing, and then sell it to

others. The gentlemen who have so much to say about “enlisting

foreign capital” in the development of Korea’s resources will

generally be found upon investigation to be prepared only to

“enlist” some one else’s capital. The promoter has his uses,

no doubt, and, as a pioneer in new fields, unquestionably

accomplishes good in some cases. Unfortunately, in Korea

the results of his activities can hardly be classed in this

category.... Especially is this true of those enterprises with

which His Majesty has been most prominently identified as an

investor. As before said, they have invariably resulted in

heavy losses to the privy purse. Various explanations have been

given for this, but the fact remains and cannot be disputed.

Others have prospered, but so far as His Majesty is concerned,

the balance has always been on the debit side of the ledger.

If it were necessary to multiply instances of the injury done to the

economic interests of the Korean people, and of the difficulty of

adjusting in any half-satisfactory way the claims of foreign promoters

and concessionaires, it could easily be done upon good evidence. But

mention of a few such instances only—with the suppression of names and

details, for obvious reasons—will suffice to convince the reader, however

“patriotic” in such matters, who has even the semblance of a candid mind.

Prominent among examples is that of a foreign company of contractors,

who have obtained from the Korean Government a variety of claims, such

as public-utility franchises, and a mining concession. Of the former,

one franchise had cost the Privy Purse of the Korean Emperor not less

than 600,000 _yen_ up to 1902; and when it was sold to satisfy a mortgage

held by these same contractors, although Mr. J. McLeavy Brown, at the

time Commissioner-General of Customs, who had been appointed to audit the

accounts, recommended that items aggregating 1,100,000 _yen_ should be

disallowed, and gave his judgment to the effect that foreclosure would be

a grave injustice to His Majesty, the latter was induced to buy one-half

of the property at 750,000 _yen_. The whole of the same property not long

before had been offered at 800,000 _yen_! This public utility still fails

to yield a dollar in dividends to the royal investor.

Another franchise of this same company has been sold, without any

investment of capital on their part, to an English company for £15,000

cash and £50,000 in fully paid-up ordinary shares. Under the apparent

impression that they have even yet not sufficiently profited from

the Privy Purse of the Emperor and the national treasury of this

poverty-stricken land, the same company is bringing all possible

“influence” to bear in order to validate their claims to a “Mining

Concession.” With regard to this last claim, which is still contested, it

is enough for our purposes to say that it was surreptitiously obtained;

that the stipulation which required a capital of $1,000,000 fully paid up

at the time of incorporation has been violated; and that the provision

which guarantees that no other mining concession should be made to any

one, native or foreign, until these concessionaires had made their

choice, is plainly _contra bonos mores_. Moreover, negotiations have been

entered into by this company for the sale of this concession to another

foreign syndicate.

The mining claim of these foreign promoters, although it has not yet

been wholly adjusted is, indeed, a _cause célèbre_ on account of the

large sums involved; but it only illustrates a special combination of the

elements which are found, with a difference of mixture, in all the cases

of this general character. There was the foolish and wanton Emperor, who

has little intelligent care for the material or other interests of his

people; the crafty and corrupt Koreans, officials and ex-officials; the

land rich in unexplored and undeveloped resources, and the “enterprising”

foreigner, unscrupulous as to his methods and ready to utilize—either

truly or falsely—his alleged “influence” with the officials of his own

Government. Another case, in which all the participants were Koreans with

the exception of one foreigner, has also been charged to the account of

the Japanese Government on the debit side. This foreigner, having put

forth the claim to be a mining engineer (he was in truth only a miner—a

so-called “three-_yen_-a-day” man), associated himself with a Korean,

popularly known as “Pak the liar,” and through the latter obtained the

assistance at Court of a powerful official and his friends. A “company”

was formed, which obtained from the Emperor an elaborate document of

the “franchise” sort, giving them the exclusive right to find coal-oil

where no coal-oil was, to bottle mineral water from springs which have no

valuable qualities to their water, and to export coal which was totally

unfit for export. Appeals were constantly made, and answered, for funds

to further this enterprise, until His Majesty became tired, and the whole

affair was wound up. This was done by paying the foreigner 12,000 _yen_

claimed as back pay. He then departed to his native land to complain that

the Japanese were inimical to the investment of foreign capital in Korea.

The net result was a few thousand tons of coal taken from one small

mine—sold, but the proceeds never accounted for; an expenditure from the

Privy Purse variously estimated at from 300,000 _yen_ to 400,000 _yen_;

and the enrichment of certain Korean officials and ex-officials. For

all this Mr. Megata, the Japanese Financial Adviser, had to provide the

money. The “Poong Poo” Company itself never had any money to put into its

“promoting” schemes.

That the charge of favoring their own countrymen in the matter of

concessions and monopolies, which has been somewhat freely made abroad

against the Japanese Government in Korea, is not justifiable, the

following proof may be cited. At some time between January 15 and January

29 of 1905, Mr. Yi-chai-kuk, then Minister of the Imperial Household

of Korea, recognized and signed no fewer than twenty-three concessions

granted to one Yi-Sei-chik, a Korean, and his four Japanese associates.

These concessions included the consolidation of taxation on land, the

utilization of the water-ways for various purposes, and state monopolies

of tobacco, salt, kerosene, etc. Imperial orders were secretly given to

the same Yi to raise a foreign loan of several million _yen_ for the

purpose of detecting the secrets of the Military Headquarters stationed

in Korea, as well as of the Tokyo Government, and to make reports about

them.[80]

These iniquitous transactions in which Koreans and Japanese were

concerned were made, when discovered, the occasion of a memorandum of

protest. This memorandum reminded the Korean Government and Court that

they have often been unfaithful to the “general plan of administrative

reform,” based upon the compact made between Korea and Japan, by granting

to foreigners various important concessions in secret ways. With a view

of putting an end to any further recurrence of such complications, an

express Agreement was entered into, August, 1904, by which “it was

stipulated that, in case of granting concessions to foreigners, or of

making contracts with foreigners, the Imperial Governments should first

be informed and consulted with.” The memorandum then goes on to express

profound regret that “His Majesty and his Court” had attempted by these

concessions, “in defiance of this provision, a breach of faith.” Then

follows the demand upon the Minister for Foreign Affairs of Korea to take

the following steps:—

1. The Minister for Foreign Affairs, after stating to His

Majesty the above facts and reasons, shall announce in a most

public way under the Imperial order that the concessions above

mentioned are null and void, as they have failed to observe the

provisions of the Agreement between Korea and Japan.

2. It shall also be most publicly announced under the Imperial

order that, in any case of granting concessions to foreigners,

either the Korean Government or the Court shall first consult

with the Imperial Government.

This memorandum bears date of July 11, 1905. But this instance of the

most decisive steps taken by the Japanese Government to prevent its

own subjects from profiting by secret and corrupt alliance with Korean

officials, for the obtaining of concessions and contracts, is by no

means an isolated one. In truth, _the Japanese Protectorate is more

severe in dealing with such cases where Japanese are concerned, than

where other foreigners have the chief interests_. And repeatedly has the

Resident-General assured his own countrymen that they must expect no

favors in business schemes for exploiting Korea to their own advantage,

but to the injury of the Koreans themselves. Indeed, he has publicly

declared to all such Japanese: “_You have me for your enemy._”

More recently effective measures have been enacted and put into force

to make impossible the recurrence of the old-time ways of robbing Korea

by schemes for “promoting” her business enterprises and by secret ways

of obtaining concessions. Among such measures is the safeguarding of

the “Imperial black seal” (the Emperor’s private seal), which could

formerly be used to plunder the treasury without the knowledge or consent

of its legalized guardians, or even of the Emperor himself. Under the

new regulations, the black seal cannot be legally used except with the

knowledge and attestation of the Minister of the Household and his

Imperial Treasurer.

Among the other foreign relations into which Japan has entered, to

substitute for Korea, is the protection of Korean emigrants. Although

Korea needs, and can for a long time to come support, all its own

natural increase of native population, and several millions of foreign

immigrants besides, the complete lack of opportunity for “getting ahead”

in their native land caused a considerable exodus of her own population

some six or seven years ago. At the instance of an American, about 8,000

Korean men and 400 Korean women emigrated to Hawaii. In 1905 a Mexican

prevailed upon 1,300 natives to go to Mexico. This experience led the

Korean Government, in April, 1905, to issue an order prohibiting the

emigration of Korean laborers. Under the Japanese Protectorate, however,

in July, 1906, “An Emigrant Protection Law,” with detailed rules for its

operation, was enacted, which came into force on the 15th of September of

the same year.

With regard to all foreign relations with Korea, whether of legitimate

business, of commerce, or of emigration, the civilized world is

undoubtedly much better off now that their custody is in the hands of

the Japanese Residency-General. In our judgment the same thing is true

of those moral and religious interests represented by the missionary

bodies already established, or to be established in the future, in

the Korean peninsula. This is not, indeed, the opinion of all the

missionaries themselves. As regards the whole subject of the effect of

the Protectorate upon mission work—past, present, and future—there is

a difference of opinion among the missionaries themselves. As to the

attitude of Marquis Ito there can be no reasonable doubt. His expressions

of feeling and intention have been frequently mentioned in the earlier

chapters of this book. The missionary problem will be discussed, apart,

in a later chapter.

As to the general feeling of the Koreans themselves toward foreigners,

the following quotations are believed to express the truth:

Since the inauguration of foreign intercourse the anti-foreign

feeling of which the Tai Won Kun was so prominent an exponent,

appears to have died out. Possibly it may linger still in the

minds of some of the old-fashioned Confucian scholars, but not

to any appreciable extent. Formerly it was, no doubt, possible

to excite the people against foreigners for slight cause; but

exhibitions of anti-foreign sentiment in recent times appear to

have been officially instigated, as, for example, the massacre

of the French missionaries and their converts, for which the

Tai Won Kun is held responsible. More intimate intercourse with

the representatives of Western civilization, and especially

missionary labor which has been so genuinely successful, seem

to have eliminated anything like a general feeling of dislike

for foreigners.

The case of the Japanese stands by itself in this regard.

Much has been written of the ancient hatred of Koreans for

Japanese. Traces of that feeling may linger, but that it is an

ineradicable national trait, as some would seem to hold, hardly

seems possible. Koreans and Japanese have lived together in

complete amity and good fellowship in the past, and there is

no good reason why they should not live side by side on the

best of terms in the future. Certainly none in the sentiment

of dislike on one side, for the origin of which we must go

back nearly three centuries. The practical difficulty, the

dislike which really counts, is of more modern origin. Korea

and Japan have been jostled together, as it were, by two wars

in recent times, and the weaker of the two has suffered—a

circumstance to be regretted, no doubt, but still inevitable.

Korea has experienced some of the evils which follow in war’s

train; and while they were not nearly so disastrous as has been

represented, they have left a feeling of dislike and distrust

for those who are held responsible. This was to have been

expected and counted upon; for the remedy we must await the

wider and more intelligent comprehension of the real meaning

of the new order of things. When it is finally understood that

even-handed justice is the rule, that the life and property of

every man, no matter how humble, are safe under the law, and

that the presence of the alien does not mean licensed extortion

and oppression, we shall not hear anything more of that racial

hatred upon which so much stress has been laid.

In Korea with Marquis Ito · 第 15 / 19 章