The Establishment of Smelting Plants
Smelting plants for various kinds of metals should be put up in all
mining districts to turn ore into metals. These smelting plants should
be conducted under the coöperative system. At first, a reasonable price
should be paid to the miner when the ore is collected. Afterwards, when
the metal is sold, either at home or in foreign markets, the smelting
works will take a share of the profit to cover the expenses, the
interest, the sinking fund, etc. The surplus profit should be divided
among the workers according to their wages, and among the capitalists
according to the proportion of ore they contribute to the furnace. In
this way we can encourage private mining enterprise which forms the
root of other industries. All smelting works should be put up according
to local needs and their scale should be determined by experts and
managed under a central control.
CONCLUSION
In this International Development Scheme, I venture to present a
practical solution for the three great world questions which are the
International War, the Commercial War and the Class War. As it has been
discovered by post-Darwin philosophers that the primary force of human
evolution is coöperation and not struggle as that of the animal world,
so the fighting nature, a residue of the animal instinct in man, must
be eliminated from man, the sooner the better.
International war is nothing more than pure and simple organized
robbery on a grand scale, which all right-minded people deplore. When
the United States of America turned the recent European conflict into a
world war by taking part in it, the American people to a man determined
to make this war end war forever. And the hope of the peace-loving
nations in the world was raised so high that we Chinese thought that
the "Tatung" or the Great Harmony Age was at hand. But unfortunately,
the United States has completely failed in peace, in spite of her great
success in war. Thus, the world has been thrown back to the pre-war
condition again. The scrambling for territories, the struggle for
food, and the fighting for raw materials will begin anew. So instead
of disarmament there is going to be a greater increase in the armies
and navies of the once allied powers for the next war. China, the most
rich and populous country in the world, will be the prize. Some years
ago there was great inclination among the Powers to divide China and
Imperial Russia actually took steps to colonize Manchuria. But the then
chivalrous Japan went to war with Russia and thus saved China from
partition. Now the militaristic policy of Japan is to swallow China
alone. So long as China is left to the tender mercy of the militaristic
powers she must either succumb to partition by several powers or be
swallowed up by one power.
However, the tide of the world seems to be turning. After centuries of
sound slumber, the Chinese people at last are waking up and realizing
that we must get up and follow in the world's progress. Now we are at
the parting of the ways. Shall we organize for war or shall we organize
for peace? Our militarists and reactionaries desire the former, and
they are going to Japanize China, so that when the time comes they will
start another Boxer Movement once more to defy the civilized world. But
as the founder of the Chung Hwa Min Kuo--the Chinese Republic--I desire
to have China organized for peace. I, therefore, begin to utilize
my pen, which I hope will prove even mightier than the sword that I
used to destroy the Manchu Dynasty, to write out these programs for
organizing China for peace.
During the course of my writing, these programs have been published
in various magazines and newspapers time after time and are being
spread all over China. They are welcomed everywhere and by everyone
in the country. So far there is not a word expressed in disfavor of
my proposition. The only anxiety ever expressed regarding my scheme
is where can we obtain such huge sums of money to carry out even a
small part of this comprehensive project. Fortunately, however, soon
after the preliminary part of my programs had been sent out to the
different governments and the Peace Conference, a new Consortium was
formed in Paris for the purpose of assisting China in developing her
natural resources. This was initiated by the American Government. Thus
we need not fear the lack of capital to start work in our industrial
development. If the Powers are sincere in their motive to coöperate for
mutual benefit, then the military struggle for material gain in China
could eventually be averted. For by coöperation, they can secure more
benefits and advantages than by struggle. The Japanese militarists
still think that war is the most profitable national pursuit, and
their General Staff keeps on planning a war once in a decade. This
Japanese illusion was encouraged and strengthened by the campaign of
1894 against China, a cheap and short one but rich in remuneration for
Japan; also by the campaign of 1904 against Russia which was a great
success to the Japanese, and its fruit of victory was no less in value;
finally by the campaign of 1914 against Germany which formed her part
in the world war Japan took. Although Japan took the smallest part in
the world war and expended the least in men and money, yet the fruit
of her victory was Shantung, a territory as large as Roumania before
the war, with a population as numerous as that of France. With such
crowning results in every war during the last thirty years no wonder
the Japanese militarists think that the most profitable business in
this world is War.
The effect of the last war in Europe proves, however, just the
contrary. An aggressive Germany lost entirely her capital and
interests, plus something more, while victorious France gained
practically nothing. Since China is awake now, the next aggression from
Japan will surely be met by a resolute resistance from the Chinese
people. Even granted that Japan could conquer China, it would be an
impossibility for Japan to govern China profitably for any period of
time. The Japanese financiers possess better foresight than their
militarists as was proved during the dispute of the Manchurian and
the Mongolian reservations when the former prevailed over the latter
thus causing the Japanese Government to give up her monopoly of these
territories to the new Consortium, in order to coöperate with the other
powers. We, the Chinese people, who desire to organize China for peace
will welcome heartily this new Consortium provided it will carry out
the principles which are outlined in these programs. Thus, coöperation
of various nations can be secured and the military struggle for
individual and national gain will cease forever.
Commercial war, or competition, is a struggle between the capitalists
themselves. This war has no national distinction. It is fought just
as furiously and mercilessly between countries as well as within
the country. The method of fighting is to undersell each other, in
order to exhaust the weaker rivals so that the victor may control the
market alone and dictate terms to the consuming public as long as
possible. The result of the commercial war is no less harmful and cruel
to the vanquished foes than an armed conflict. This war has become
more and more furious every day since the adoption of machinery for
production. It was once thought by the economists of the Adam Smith
school that competition was a beneficent factor and a sound economic
system, but modern economists discovered that it is a very wasteful
and ruinous system. As a matter of fact, modern economic tendencies
work in a contrary direction, that is, towards concentration instead
of competition. That is the reason why the trusts in America flourish
in spite of the anti-trust law and the public opinion which aim at
suppressing them. For trusts, by eliminating waste and cutting down
expenses can produce much cheaper than individual producers. Whenever
a trust enters into a certain field of industry, it always sweeps that
field clean of rivals, by supplying cheap articles to the public. This
would prove a blessing to the public but for the unfortunate fact that
the trust is a private concern, and its object is to make as much
profit as possible. As soon as all rivals are swept dean from the field
of competition, the trust would raise the price of its articles as
high as possible. Thus the public is oppressed by it. The trust is a
result of economic evolution, therefore it is out of human power to
suppress it. The proper remedy is to have it owned by all the people
of the country. In my International Development Scheme, I intend to
make all the national industries of China into a Great Trust owned by
the Chinese people, and financed with international capital for mutual
benefit. Thus once for all, commercial war will be done away with in
the largest market of the world.
Class war is a struggle between labor and capital. The war is at
present raging at its full height in all the highly developed
industrial countries. Labor feels sure of its final victory while
capitalists are determined to resist to the bitter end. When will it
end and what will be the decision no one dares to predict. China,
however, owing to the backwardness of her industrial development,
which is a blessing in disguise, in this respect, has not yet entered
into the class war. Our laboring class, commonly known as coolies,
are living from hand to mouth and will therefore only be too glad to
welcome any capitalist who would even put up a sweat shop to exploit
them. The capitalist is a rare specimen in China and is only beginning
to make his appearance in the treaty ports.
However, China must develop her industries by all means. Shall we
follow the old path of western civilization? This old path resembles
the sea route of Columbus' first trip to America. He set out from
Europe by a southwesterly direction through the Canary Islands to San
Salvador, in the Bahama Group. But nowadays navigators take a different
direction to America and find that the destination can be reached by a
distance many times shorter. The path of western civilization was an
unknown one and those who went before groped in the dark as Columbus
did on his first voyage to America. As a late comer, China can greatly
profit in covering the space by following the direction already charted
by western pioneers. Thus we can foresee that the final goal of the
westward-ho in the Atlantic is not India but the New World. So is the
case in the economic ocean. The goal of material civilization is not
private profit but public profit. And the shortest route to it is not
competition but coöperation. In my International Development Scheme,
I propose that the profits of this industrial development should go
first to pay the interest and principal of foreign capital invested in
it; second to give high wages to labor; and third to improve or extend
the machinery of production. Besides these provisions the rest of the
profit I should go to the public in the form of reduced prices in all
commodities and public services. Thus, all will enjoy, in the same
degree, the fruits of modern civilization. This industrial development
scheme which is roughly sketched in the above six programs is a part
of my general plan for constructing a New China. In a nutshell, it is
my idea to make capitalism create socialism in China so that these two
economic forces of human evolution will work side by side in future
civilization.
APPENDIX I
PRELIMINARY AGREEMENT PROVIDING FOR THE FINANCING AND CONSTRUCTION OF
THE RAILWAY FROM CANTON TO CHUNGKING WITH EXTENSION TO LANCHOW
This Agreement is made at Shanghai on the fourth day of the seventh
month of the second year of the Republic of China being the fourth
day of July, 1913, and the contracting parties are: The Chinese
National Railway Corporation (hereinafter termed "the Corporation")
duly authorized in virtue of the Presidential Mandate of the ninth
day of the ninth month of the Republic of China being the ninth day
of September, 1912, and in virtue of the Charter of the Corporation
duly promulgated by a Presidential Mandate of the thirty-first day of
the third month of the second year of the Republic of China being the
thirty-first day of March, 1913, on the one part and Messrs. Pauling
and Company, Limited, of 26 Victoria Street, London, S. W. (hereinafter
termed "the Contractors") on the other part.
NOW IT IS HEREBY AGREED by and between the parties hereto as follows:
ARTICLE I
The Contractors, or their Assigns, agree to issue on behalf of the
Government of the Republic of China a sterling Loan, bearing interest
at the rate of five per cent per annum, (hereinafter referred to as
"the Loan") for such an amount as may be mutually estimated to be
necessary for the completion of the Railway from Canton to Chungking.
The Loan shall be of the date on which the first series of Bonds are
issued and shall be called "The Chinese National Railways Government
five per cent Gold Loan of 1912 for the Canton Chungking Railway."
ARTICLE II
The proceeds of the Loan are designed for the construction and
equipment of the Railway from Canton to Chungking (hereinafter called
"the Railway") and for all necessary expenditure appertaining thereto
as may be arranged in the Detailed Agreement, referred to in Article 17.
ARTICLE III
The payment of the interest and the redemption of the Capital of the
Loan are guaranteed by the Government of the Republic of China and by a
special lien upon the Canton Chungking Railway.
This special lien constitutes a first mortgage in favour of the
Contractors, acting on behalf of the Bondholders, upon the Railway
itself, as and when constructed, and on the revenue of all
descriptions derivable therefrom, and upon all materials, rolling stock
and buildings of every description purchased or to be purchased for the
Railway.
Should there be default in payments on the dates fixed of all or part
of the half yearly interest or amortization payments, the Contractors
shall have the right to exercise on behalf of the Bondholders all the
rights of action which accrue to them from the special mortgage.
ARTICLE IV
During the time of construction of the Railway the interest on the
Bonds and on any advances made by the Contractors shall be paid from
the proceeds of the Loan. The accruing interest from any proceeds of
the Loan not used during the period of construction, and the earnings
derived by the Corporation from the working of any sections of the
Railway as they are built, are to be used to make up the amount
required for the payment of the said interest, and if any deficiency
remains it is to be met from the proceeds of the Loan.
When the construction of the Railway is wholly completed, the interest
on the Bonds is to be paid from the income or earnings of the Railway
received by the Corporation, in such manner and on such dates as may be
provided for in the Detailed Agreement provided for in Article 17 of
this Agreement.
If, at any time, the earnings of the Railway, together with the
funds available from the proceeds of the Loan, are not sufficient
to meet the interest on the Bonds and the repayment of the capital
in accordance with the Amortization Schedule to be attached to the
Detailed Agreement, the Government of the Republic of China, in
approving of this Agreement, unconditionally undertakes and promises to
pay the principal of the Loan and the interest of the Loan on the due
dates to be fixed therefor in the Detailed Agreement provided for in
Article 17 of this Agreement.
ARTICLE V
The bonds shall be Bonds of the Government of the Republic of China.
ARTICLE VI
The Loan shall be issued to the public in two or more series of Bonds,
the first issue to be made to the amount of from one to two million
pounds sterling as soon as possible after the signature of the Detailed
Agreement referred to in Article 17 of this Agreement. The issue price
of the Bonds shall be fixed by the Corporation and the Contractors
sometime before the issue, taking the last price of similar Bonds as a
basis for fixing the market price. The price payable to the Corporation
shall be the actual rate of issue to the public less a sufficient
amount to cover the cost of stamps on the Bonds in the various
countries of issue, provided always that at least fifty per cent of the
Bonds shall be issued in England, plus floatation charges of four per
cent retainable by the Contractors (that is to say, a charge of four
pounds for every one hundred pound Bond issued).
After the Detailed Agreement referred to in Article 17 is settled, and
pending the issue of the Loan, the Contractors shall deposit the sum
of fifty thousand pounds with the issuing Bank to the Canton Chungking
Railway account, and this amount can be drawn on by the Corporation for
survey and other necessary expenses authorized by the Managing Director
against certificates signed by the Chief Accountant and Chief Engineer.
This sum of fifty thousand pounds shall bear interest at the rate of
five per cent per annum and shall be refunded out of the proceeds of
the Loan.
ARTICLE VII
The proceeds of the Loan shall be deposited with the issuing Bank,
to be nominated and guaranteed by the Contractors, to the credit of
a Canton Chungking Railway Account on such terms as may be mutually
arranged in the Detailed Agreement referred to in Article 17.
When the work of construction is ready to begin a sum equal to the
estimated expenditure in China for six months shall be transferred to
a Bank in China to be mutually agreed upon and there placed to the
credit of a Canton Chungking Railway Account to be operated upon by the
Corporation under certificates signed by the Chief Accountant and the
Chief Engineer. This amount of estimated expenditure for six months
shall be maintained by subsequent monthly transfers so that, as far
as possible, there shall always be six months estimated expenditure in
China on deposit in a Bank in China to be mutually agreed upon.
ARTICLE VIII
Immediately after the signing of the Detailed Agreement, the
Corporation will establish a Head Office at Canton for the Canton
Chungking Railway. This Office will be under the direction of a
Chinese Managing Director to be appointed by the Corporation, with
whom will be associated a British Engineer-in-Chief and a British Firm
of Public Accountants, of recognized standing, whose representative
shall be Chief Accountant (hereinafter called "the Chief Accountant").
These British Employes shall be nominated by the Corporation and the
Contractors, jointly, and shall be appointed by the Corporation. Their
dismissal shall take place, only, with the joint approval of the
Corporation and the Contractors.
It is understood that the duties to be performed by these employes are
intended to promote the mutual interests of the Corporation and the
Bondholders respectively, and it is therefore agreed that all cases of
difference arising therefrom shall be referred for amicable adjustment
between the Corporation and the Representative of the Contractors. The
salaries and other terms of Agreement of the Engineer-in-chief and the
Chief Accountant shall be arranged between the Corporation and the
Contractors; and the amount of their salaries, etc., shall be paid out
of the general accounts of the Railway.
For all important technical appointments for the operation of the
Railway, Europeans of experience and ability shall be engaged and
wherever competent Chinese are available, they shall be employed.
All such appointments shall be made, and their functions defined,
by the Managing Director and the Engineer-in-Chief in consultation,
and shall be submitted for the approval of the Corporation; similar
procedure shall be followed in the case of Europeans employed in the
Chief Accountant's department. In the event of the misconduct, or
the incompetency of these European employes, their services may be
dispensed with by the Managing Director, after consultation with the
Engineer-in-Chief, and subject to the sanction of the Corporation. The
form of Agreements made with these European Employes shall conform to
the usual practice.
The accounts of the receipts and the disbursements of the Railway's
construction and operation, shall be in Chinese and English in the
department of the Chief Accountant, whose duty it shall be to organize
and supervise the same, and to report thereon for the information of
the Corporation through the Managing Director, and of the Contractors
as representing the Bondholders. All receipts and payments shall be
certified by the Chief Accountant and authorized by the Managing
Director.
For the general technical staff of the Railway, after completion of
construction, the necessary arrangements shall be made by the Managing
Director in consultation with the Engineer-in-Chief, and reported to
the Corporation in due course.
The duties of the Engineer-in-chief shall consist in the efficient and
economical maintenance of the Railway, and the general supervision
thereof in consultation with the Managing Director. The duties of the
Chief Engineer during construction shall be set forth in the Detailed
Agreement, referred to in Article 17 of this Agreement.
The Engineer-in-chief shall always give courteous consideration to the
wishes and instructions of the Corporation, whether conveyed directly
or through the Managing Director, and shall always comply therewith,
having at the same time due regard to the efficient construction and
maintenance of the Railway.
A school for the education of Chinese in Railway matters shall be
established by the Managing Director subject to the approval of the
Corporation.
ARTICLE IX
The Contractors shall construct and equip the Railway and shall receive
as remuneration a sum equal to seven per cent on the actual cost of the
construction and equipment of the Railway. The term "Equipment" shall
be held to include in its meaning all requirements necessary for the
operation of the Railway way and shall therefore include Rolling Stock
and Locomotives sufficient for operation.
It is clearly understood that the term "Equipment" does not include any
purchases made for the Railway after it has been completely constructed
and equipped and handed over ready for operation.
It is further clearly understood that the cost of land purchased for
the Railway, the salaries of the Managing Director, Chief Accountants,
Chief Engineer, and the cost of their offices and staff shall not be
included in the meaning of the terms "construction and equipment."
The Contractors shall have the option of constructing on the same terms
the proposed extension of the Railway to Lanchow in the Province of
Kansu, or a Railway of similar mileage in some other part of China to
be mutually agreed upon, and this option shall be for seven years from
the commencement of construction.
All other arrangements in connection with the construction and
equipment of the Railway shall be settled in the Detailed Agreement
referred to in Article 17.
ARTICLE X
All land that may be required along the whole course of the Railway
within survey limits, and for the necessary sidings, stations,
repairing shops and car sheds, to be provided for in accordance with
the detailed plans, shall be acquired by the Corporation at the actual
cost of the land, and shall be paid for out of the proceeds of the
Loan.
ARTICLE XI
The Contractors shall hand over to the Corporation each section of
the Railway, when completed, for operation in accordance with the
provisions of the Detailed Agreement.
ARTICLE XII
The Contractors shall be appointed Trustees for the Bondholders and
shall receive such remuneration as may be fixed in the Detailed
Agreement.
ARTICLE XIII
The Government of the Republic of China, whenever necessary, will
provide protection for the Railway while under construction or when in
operation, and all the properties of the Railway as well as Chinese and
foreigners employed thereon, are to enjoy protection from the local
Officials.
The Railway may maintain a force of Chinese Police with Chinese
officers, their wages and maintenance to be wholly defrayed as part
of the cost of the construction and maintenance of the Railway. In
the event of the Railway requiring further protection by the military
forces of the Government, the same shall be duly applied for by the
Head Office and promptly afforded, it being understood that such
military forces shall be maintained at the expense of the Government.
ARTICLE XIV
All materials of any kind that are required for the construction and
working of the Railway, whether imported from abroad or from the
Provinces to the scene of work, shall be exempted from Likin or other
duties so long as such exemption remains in force in respect of other
Chinese Railways. The Bonds of the Loan, together with their coupons
and the income of the Railway shall be free from imposts of any kind by
the Government of the Republic of China.
ARTICLE XV
With a view to encouraging Chinese industries, Chinese materials are to
be preferred, provided price and quality are suitable.
At equal rates and qualities, goods of British manufacture shall be
given preference over other goods of foreign origin.
ARTICLE XVI
The Contractors may, with the approval of the Corporation, and subject
to all their obligations, transfer or delegate all or any of their
rights, powers, and discretions, to their successors or assigns.
ARTICLE XVII
As soon as this Preliminary Agreement is signed it shall be forwarded
to the Government of the Republic of China for approval. When it has
met with the approval of the Government of the Republic of China, a
necessary Detailed Agreement shall be made embodying the principles
of this Agreement with such amplifications and additions as may be
mutually agreed upon between the parties hereto.
ARTICLE XVIII
On its approval of this Agreement, and acceptance of the obligations
set forth herein, the Government of the Republic of China shall
officially notify the British Minister at Peking of the fact, and this
approval shall be taken as covering the Detailed Agreement referred to
in Article 17.
ARTICLE XIX
This Agreement is executed in quadruplicate in English and Chinese,
one copy to be retained by the Corporation, one to be forwarded to the
Government of the Republic of China, one to be forwarded to the British
Minister at Peking, and one to be retained by the Contractors, and
should any doubt arise as to the interpretation of the Agreement the
English text shall be accepted as the standard.
Signed at Shanghai by the contracting parties on this fourth day of the
seventh month of the second year of the Republic of China being the
fourth day of July nineteen hundred and thirteen.
APPENDIX II
Legation of the United States of America
Peking, March 17, 1919.
Dr. Sun Yat Sen,
29 Rue Molière,
Shanghai, Kiangsu.
DEAR DR. SUN:
I have read with great interest your sketch project for the
international development of China as embodied in your letter
of February first to me. I congratulate you upon the broad and
statesmanlike attitude with which you treat this very important
subject. Your suggestion of united international participation in the
development of China's resources deserves the support of all friends
of China. It would be unfortunate indeed if the old régime of spheres
of influence, struggles for concessions and activities flavoring of
selfish exploitation should not, with the conclusion of the war, be
relegated to the past. You are right in recognizing the necessity of
a substitute for the old order and your proposal of a unified policy
under international organization with Chinese participation for the
larger development in China, naturally assuming that the inalienable
rights of the Chinese people are to be amply safeguarded, meets this
demand admirably.
We are hopeful that conditions in China may become such that the
Chinese people themselves may be encouraged to put their money into
productive enterprise and participate in the larger developments. We
are hopeful that the day is not far distant when the Chinese Government
may be able actively to interest itself in the encouragement of native
industry to the end that native capital of which there is a very
considerable quantity, may be induced to lend itself to productive
enterprises, because of a Confidence in constructive policy on the part
of the government.
If you will permit a suggestion, I would be inclined to reduce your
admirable program to one which would be in closer keeping with the
limits of the present world's resources in capital. As we all know
devastated Europe is calling for capital for rehabilitation and
other nations want capital for development programs of considerable
proportions. Thus it would seem that China's program of development
must of necessity take cognizance of her most immediate and most
pressing needs. We are all united in that transportation occupies a
prominent place in such a program. 50,000 miles of railway and 100,000
miles of good roads would seem to be sufficient to engage our attention
for any plans for the immediate future. This would allow ample
opportunity to penetrate the great rich unoccupied regions in the
North and West, which should be opened to colonization and development
as soon as possible in order to relieve the economic pressure of over
population in sections along the coasts and waterways, and to accord
opportunities to bring the rich regions of West China into contact with
the trade of the rest of China and the world at large.
Along with transportation, China needs to develop its resources in
iron and coal, the two great essentials to modern industrialism.
Arrangements should be made whereby foreign capital can come to China's
assistance in these two important industries, but care should be
exercised so as to preserve to China the iron and coal necessary for
its own uses, and prevent China's steel industry being mortgaged to
foreign interests, in a way so as to jeopardize China's future in this
important industry.
The reform of the currency and reforms in internal tax administrations
are questions of immediate importance to China's economic and
industrial development.
One of the greatest fields of potentiality in the immediate demands
of the New China, is agriculture. The country depends in its final
analysis upon the prosperity of its agriculture. At present probably
as much as 80% of China's population is agricultural. China's
greatest problem is the proper feeding and clothing of its vast
population. Improved conditions in agriculture, opening of new lands
to cultivation, irrigation and conservancy works, the encouragement
of the cattle and sheep industries, the development of the cotton
industry and the improvement of tea, silk and the seed crops of China,
are timely subjects in any program of developments. There is a vast
work to be done in agriculture in China, which will lead to prosperity
generally, and make possible developments with native capital in other
fields of activity, whereas if agricultural improvements are neglected,
it will be difficult to insure prosperity in other directions.
Thus for the present, I hope the main thought may be centered on
improvements in transportation, in currency and tax administrations, in
the development of coal and iron industries, and in agriculture. Many
of the suggested activities included in your very extensive program
will follow as a corollary to the above.
In thinking of all these developments, I believe that we should always
give thought to the fact that we are not dealing with a new country
but with one in which social arrangements are exceedingly intricate
and in which a long-tested system of agricultural and industrial
organization exists. It is to my mind most important that the
transition to new methods of industry and labor should not be sudden
but that the old abilities and values should be gradually transmuted.
It is important that the artistic ability existing in the silk and
porcelain manufacture, etc. should be maintained and fostered, and not
superseded by cheaper processes. It is also highly important that no
export of food should be permitted, except as to clearly ascertained
surpluses of production. It would produce enormous suffering were the
food prices in China suddenly to be raised to the world market level.
The one factor in modern organization which the Chinese must learn
better to understand is the corporation, and the fiduciary relationship
which the officers of the corporation ought to occupy with respect to
the stockholders. If the Chinese cannot learn to use the corporation
properly, the organization of the national credit cannot be effected.
Here, too, it is necessary that the capital of personal honesty which
was accumulated under the old system should not be lost but transferred
to the new methods of doing business. So at every point where we
are planning for a better and more efficient organization, it seems
necessary to hold on to the values created in the past and not to
disturb the entire balance of society by too sudden changes.
I wish again to congratulate you upon the statesmanlike view with which
you consider the whole question of the development of your country,
and the very timely suggestions you have to make in regard to a united
policy of international participation in these developments. I am
glad to note that the minds of the leaders among the Chinese people
today are being centered more and more upon the constructive needs of
the country and efforts are being made to meet these needs, in full
appreciation of China's relations with the people of other nations, to
the end that China's developments in the future may work in harmony
with the world developments generally.
I should be glad to hear from you further and more in detail concerning
development plans.
Believe me, with the highest regard,
Sincerely yours,
(Signed)
PAUL S. REINSCH.
APPENDIX III
DEPARTMENT OF COMMERCE
Office of the Secretary
Washington
May 12, 1919.
Hon. Sun Yat Sen,
29 Rue Molière,
Shanghai, China.
YOUR EXCELLENCY:
I have read with the greatest interest the project for the
International Development of China enclosed in your letter of March
17th, and agree with you that the economic development of China would
be of the greatest advantage, not only to China, but to the whole of
mankind.
The plans you propose, however, are so complex and extensive that it
will take many years to work them out in detail. You doubtless are
fully aware that it would take billions of dollars to carry out even
a small portion of your proposals and that most of them would not be
able to pay interest charges and expenses of operation for some years.
The first question to be decided, therefore, is how the interest
charges on the necessary loans could be met. The revenues of the
Chinese Republic are already too heavily burdened with the interest
charges on existing Government loans to warrant further charges, and
hence it would seem necessary for the present to limit the projects for
development to those which seem sufficiently remunerative to attract
private capital. The government of the United States has consistently
endeavored to manifest its disinterested friendship for the people of
China and will undoubtedly coöperate in every proper way in proposals
to advance their best interests.
Please accept my thanks for your kindness in submitting your proposals.
Respectfully,
(Signed)
WILLIAM C. REDFIELD,
_Secretary_.
APPENDIX IV
Il Ministro Delia Guerra
Rome, 17 Maggio, 1919.
Most Honorable
Sun Yat Sen,
29 Rue Molière,
Shanghai, China.
HONORABLE SIR:
I thank you for having so kindly communicated to me the interesting
project regarding how to employ through an International Organization
the exuberant industrial activities created by the war, in order to
exploit the great hidden riches of China.
Though aware of the practical difficulties which present themselves
in the accomplishment of this project, it meets with my utmost
appreciation, I assure you, for the modern spirit by which it is
animated and for the depth of its conception.
Accept my best wishes for complete success, in the advantage of your
noble country and for the interest of humanity.
Believe Me,
Faithfully yours,
(Signed)
GENERAL CAVIGLIA.
APPENDIX V
Peking, June 17, 1919.
Hon. Sun Yat Sen,
Shanghai.
DEAR SIR:
Permit me as a professional railway man to express my pleasure with
your article appearing in the Far Eastern Review for June.
I will not at this time express approval or disapproval of the route
which you have chosen but the idea of a line to connect up the great
agricultural interior with the densely populated coast appeals to me
strongly. I feel that you are making a definite contribution to railway
economic theory in this respect, whereas the line itself would relieve
congestion, open up a production area which would lower food costs,
furnish employment to large numbers of soldiers to be disbanded, and
put in circulation a large amount of hard money which would go far to
correct the currency situation.
I am especially pleased to have your article appear at this time for
I had already written one at the request of the publishers of the
forthcoming "Trans-Pacific" magazine in which I touched upon the same
line of thought. This will not appear until July and your opinions
will have done much to prepare the minds of sceptics upon the subject
by that time.
I trust that this intrusion of an entire stranger may be pardoned, and
that you will continue to support the thought which you have so ably
presented.
Very truly yours,
(Signed)
J. E. BAKER.
APPENDIX VI
3, Piazza Del Popolo
Roma
August 30, 1919.
Dr. Sun Yat Sen,
29 Rue Molière,
Shanghai, China.
MY DEAR DR. SUN YAT SEN:
I thank you for your very kind letter of June 19th which has just
been forwarded to me from my office in Rome, also for your kindness
in sending me your splendid project "To assist the Re-adjustment
of Post-bellum Industries," and the program for "The International
Development of China."
I assure you I read your proposals and studied the maps in connection
with your able and logical argument with the deepest interest. And I
beg you to accept my hearty congratulations.
I am entirely convinced that your noble _ideals will be_ realised, not
only for the benefit of China and the welfare of your own people, but
for the benefit and prosperity of the whole human race.
The Nations cannot continue to deny in the future as they have in the
past, the unlimited natural resources of your rich fertile country, in
foods, minerals, coal and iron, etc.; and your plans for development
and activity, as well as your methods of communication for expanding
and cultivating almost untouched miles of virgin soil, and bringing
these products to the doors of the "World Market" by a practical and
economic plan, scientifically studied out, places you at once among
the very rare few unselfish humanitarian benefactors, and reveals so
clearly your profound international sympathies.
The development of China's natural resources will give a new impetus
and vitality to industry and commerce in your country and will not only
be of incalculable benefit to your own people, but offer undeniable
and unlimited advantages to all people in all nations. Therefore
Governments and foreign financiers should not hesitate in giving your
plans their most careful consideration and support, and come to your
assistance in the realisation of your grand humanitarian project.
The construction of a great "Northern Port" on the Gulf of Pechili,
and the building of a system of railways from this great Northern Port
to the northwestern extremity of China, as well as the construction of
canals to connect the inland waterways systems of North and Central
China with the great "Northern Port," and the development of coal and
iron fields in Shansi which would necessitate the construction of iron
and steel works would not only offer employment to millions of your
country people, but would open wider, and advantageously, the doors of
thousands of well organised industries in many nations.
It is very encouraging to me, dear Dr. Sun Yat Sen, to know that you
look upon my plans of an "International World Centre of Communication"
with favor, and that you will further the idea among your countrymen by
writing about it in your magazine "The Construction."
This city, erected upon neutral grounds would offer at once the
practical framework for the essential needs of a League of Nations
and could become its dignified "Administrative Centre" crowned by an
International Court of Justice.
I have presented the plans and proposals of this World Centre to the
Rulers and governments of all nations, and hope to be able to go to
Washington in October to exhibit the large original drawings and
personally explain the project from a practical and economic point
of view before the foreign delegates who may meet there to assist in
the formation of a League of Nations, and I have written to President
Wilson, who after receiving the volumes containing the proposals and
plans, wrote that "he valued them very highly."
I hope that in the very near future this International World Centre of
communication may become a reality. It would be the means of clearly
defining and bringing into focus the highest natural products as well
as the most important industrial achievements of all countries. This
accomplishment would be one of the first definite steps toward more
friendly social and economic relations, and the practicability of
establishing such coöperation cannot be disputed.
This City of Peace should rise and stand as an International Monument,
erected by international contribution to commemorate the heroic
struggle and noble sacrifice of millions who gave their lives on the
battle fields, in the air and on the sea, that justice should triumph
and open the ways for humanity to progress in peace, and free from
tyranny in the future.
With the assurance, dear Dr. Sun Yat Sen, of my most profound
sympathies for your noble project, and with my deep gratitude for your
keen interest in my plans,
I beg to remain, with high esteem
Faithfully yours,
(Signed)
HENDRICK CHRISTIAN ANDERSEN.
[Illustration]
Transcribers' Notes
Punctuation and spelling were made consistent when a predominant
preference was found in this book; otherwise they were not changed.
Possibly inconsistent spellings of names and place-names have been
retained.
Simple typographical errors were corrected; occasional unbalanced
quotation marks retained.
Inconsistent hyphenation and ambiguous hyphens at the ends of lines
were retained.
"The Chochiang-Koria Line" is spelled that way throughout the book.
Page 195: "Great Southern Port" was printed as "Greatern"; changed here.
Page 247: "mileage" was printed as "milage"; changed here.