I strongly favoured creating banking institutions which would broadly represent American capital from variousregions of our country, and would respond to the urgent need of China for a modern organization of local credit.
There were but few American commission houses. In most cases American-manufactured goods were handled by houses of other nationality, who often gave scant attention to promoting American trade and used American products only when those of their own nation could not be obtained. It seemed worth while to establish additional trading companies, especially coöperative organizations among exporters, after the fashion of the "Representation for British Manufacturers, Ltd." Further, I strongly urged the American Government to station a commercial attaché in China. I was gratified by the appointment during the year of a commercial attaché in the person of Consul-General Julean Arnold, an official of great intelligence, wide knowledge, and untiring energy.
The Chinese cabinet, which had been under a provisional premier for several months, was finally reorganized in June, 1914. The chief change in the cabinet was the appointment of Mr. Liang Tun-yen as Minister of Communications, and the shifting of Mr. Chow Tsu-chi from that position to the Ministry of Finance. With these new ministers American contractors and financiers had much to do. Premier Hsiung Hsi-ling had withdrawn in February, and with him the two other members of the Chin Pu Tang or progressive party. These political leaders had served Yuan's purpose by aiding him to dissolve parliament; they could now be spared. But a new premier was not immediately found. Yuan at length prevailed on Mr. Hsu Shi-chang to take the premiership in June. The title of premier was changed to secretary of state.
I met Mr. Liang Tun-yen for the first time on June 2nd, at a luncheon given by Mr. B. Lenox Simpson, whose landlord he was. Mr. Liang is tall, aristocratic-looking, with a fine, intellectual face. He speaks English perfectly,as he received his earlier education in the United States. Then, as on frequent occasions in subsequent years, he expressed himself in a deeply pessimistic strain. He complained of recent inroads attempted by the French in Yunnan, and of the methods they employed to strengthen their hold. But this was only one cause for pessimism. In the future of his country he saw "no prospect of strong national action," or of "any sort of effective help from the outside." He considered the upper classes "incapable of sacrifices and vigorous action." He had recommended in 1901, he told me, that, instead of paying an indemnity, the Chinese should be allowed to spend an equal amount of public funds in sending abroad young men to be educated. All young Chinese, he said, should be sent abroad quite early, "before they have become corrupted."
When Mr. Liang Tun-yen assumed office, it was announced that he would subject the Ministry of Communications to a thorough cleansing. This implied that the ministry had been corrupt and systematically so, under the control of Mr. Liang Shih-yi. Outsiders watched for indications of how that astute manager would handle the new opposition.
Mr. Yeh Kung-cho, able and expert, had been chief of the Railway Bureau; he became a vice minister, but as he was a lieutenant of Liang Shih-yi's, it was understood that this position would probably be an empty dignity. A friend of Mr. Liang Tun-yen's, a highly respected engineer of American education, was appointed as the other vice minister. With no formal or open breach between the different factions, manœuvring and counter-manœuvring there undoubtedly was. The influence of Mr. Liang Shih-yi, however, seemed not seriously shaken. He had organized the Chinese railway experts and engineers in a railway association, keeping in touch with them through Mr. Yeh Kung-cho. Thus he held in his hands the main lines of influence. Also, he continued to head the Bank of Communications, which is the fiscal agency for the Railway Board. So again it seemed that the opposition could not get at the source of this unusual man's power.
Mr. Chow Tsu-chi, as Minister of Finance, warmly urged the idea that the Americans, to whom the Government had shown itself so friendly, reciprocate by making a loan to the Chinese Government. He planned a loan of $40,000,000 for the purpose of refunding the entire floating indebtedness of his government. Hopes had been entertained that the Standard Oil Company would use its influence in bringing about such a loan, but that company was not willing to go outside of the special business of its contract with China. The option which had been given to Mr. Gest had not yet resulted in any completed transaction in the United States. So accustomed were the Chinese to the readiness of any nationality which held important concessions, in turn to support the Chinese Government financially, that they could not understand how America, with professions of great friendship and just now substantially favoured by the Chinese, should not be ready to reciprocate. The soundness of the desire of the Americans to have every transaction stand on its own bottom and not to use financial support as a bait to obtain concessions, could, of course, be appreciated by the Chinese. But at times their urgent needs made them impatient.
The news of the assassination at Sarajevo reached us on July 1st. As this happened to be, though we did not then suspect it, the eve of a terrible convulsion in which all accepted conditions of life, national and international, were shattered and unsettled, I shall here insert parts of the memorandum which I drew up for my guidance at this time:
It is evident that China finds herself in a critical situation, in the sense that the fundamental character of her political life and the direction of her political development are now being decided. While a vast community living under a complicated social system, which embodies the experienceof thousands of years, cannot change its methods of a sudden and will undoubtedly for a long time continue to differ radically from Western political societies, yet it admits of no doubt that a new era of development has begun and that certain essential alternatives are being faced. Such alternatives are the continued unity of the nation or its division; its continued independence or the direct dominance of one or more foreign suzerains; its commercial unity or its division into spheres of influence; the tendency of its institutions of government, whether in the direction of the absolutism of Russia and Japan, or the republicanism of the United States; and the character of its educational and legal system, either dominated by the ideas of America and England or of continental Europe or Japan. From these, there also follow important alternatives in industrial and commercial policy.Under these circumstances, it is of great moment whether the Chinese Government will remain free, with the assistance of influences friendly to the development of China's nationality, to preserve the unity of the Chinese State and to develop its institutions; or whether its financial distress, combined with the plottings of a revolutionary opposition, will deliver it into the hands of those who are not favourable to the growth of China's national life.The United States of America enjoys a position of great advantage for assisting the Chinese Government and influencing its development in the direction of free national life. The lack of a desire for political interference, the real sympathy felt in America with the strivings of the Chinese people, and cultural, educational, and charitable work unselfishly performed, have given the United States the undivided confidence of China. It is certainly true that the Chinese people are anxious to follow in the footsteps of the United States if they may only be permitted to do so.Any development of enterprise which increases American commercial interest in China is incidentally favourable to Chinese independence; because, through the enlistment of neutral interests, the desire of outsiders for political control can be counterbalanced. The organizing of an American investment bank and similar agencies for the development of American commerce in China, participation of American capital in railway building, and the development of mines and oil fields through American companies and under American business methods would all be welcomed by China as the strengthening of a favourable influence. Different Chinese ministers have repeatedly said to me that at this time China is in need of the active assistance of those who are amicably disposed and that China is willing to do her part in coöperating, and in extending advantages, if only such active support is forthcoming. If American capital, industry,and commerce are not ready at this time to give that comparatively slight assistance to China which the situation calls for, it is likely that American action in China in the future will be on a far more modest basis than present possibilities promise.
It is evident that China finds herself in a critical situation, in the sense that the fundamental character of her political life and the direction of her political development are now being decided. While a vast community living under a complicated social system, which embodies the experienceof thousands of years, cannot change its methods of a sudden and will undoubtedly for a long time continue to differ radically from Western political societies, yet it admits of no doubt that a new era of development has begun and that certain essential alternatives are being faced. Such alternatives are the continued unity of the nation or its division; its continued independence or the direct dominance of one or more foreign suzerains; its commercial unity or its division into spheres of influence; the tendency of its institutions of government, whether in the direction of the absolutism of Russia and Japan, or the republicanism of the United States; and the character of its educational and legal system, either dominated by the ideas of America and England or of continental Europe or Japan. From these, there also follow important alternatives in industrial and commercial policy.
Under these circumstances, it is of great moment whether the Chinese Government will remain free, with the assistance of influences friendly to the development of China's nationality, to preserve the unity of the Chinese State and to develop its institutions; or whether its financial distress, combined with the plottings of a revolutionary opposition, will deliver it into the hands of those who are not favourable to the growth of China's national life.
The United States of America enjoys a position of great advantage for assisting the Chinese Government and influencing its development in the direction of free national life. The lack of a desire for political interference, the real sympathy felt in America with the strivings of the Chinese people, and cultural, educational, and charitable work unselfishly performed, have given the United States the undivided confidence of China. It is certainly true that the Chinese people are anxious to follow in the footsteps of the United States if they may only be permitted to do so.
Any development of enterprise which increases American commercial interest in China is incidentally favourable to Chinese independence; because, through the enlistment of neutral interests, the desire of outsiders for political control can be counterbalanced. The organizing of an American investment bank and similar agencies for the development of American commerce in China, participation of American capital in railway building, and the development of mines and oil fields through American companies and under American business methods would all be welcomed by China as the strengthening of a favourable influence. Different Chinese ministers have repeatedly said to me that at this time China is in need of the active assistance of those who are amicably disposed and that China is willing to do her part in coöperating, and in extending advantages, if only such active support is forthcoming. If American capital, industry,and commerce are not ready at this time to give that comparatively slight assistance to China which the situation calls for, it is likely that American action in China in the future will be on a far more modest basis than present possibilities promise.
The war, of course, brought many changes in China. Much of the good work which had been started was either destroyed or long delayed. It marked the end of one phase of China's development.
CHAPTER X
FOLK WAYS AND OFFICIALS
Several voices whispered: "It's Prince Pu Lun."
It was at President Yuan Shih-kai's reception, New Year's Day, 1914; the diplomatic corps and high officials were there. The Empress Dowager's residence, now occupied by the President, was the scene. From the side rooms, whither we had withdrawn for refreshments after exchanging greetings with the President, we looked out into the main hall and saw that its floor had been entirely cleared, and a solitary figure in a general's uniform was proceeding across the floor toward the President. Walking alone and unattended, the representative of the Chinese Imperial Family had come to bring its felicitations to the President of the Republic. For the first time since the abdication, the Imperial Family was publicly taking notice of him who had displaced it in power.
When the guests began to depart I gathered up my party and left the hall, together with Admiral Tsai Ting-kan. Outside was Prince Pu Lun, still solitary, walking with sad and pensive regard. We overtook him. I talked pleasantly with him on such non-committal matters as the Imperial collection of art, which was at this time being brought from Mukden. He seemed quite appreciative of this attention. I took him with me to the outer palace gate where his own carriage met him.
Except the automobiles used inside of the palace enclosure, few were then to be found in Peking; soon, with improved roads, many hundreds came. The Empress Dowager before her death had acquired a large collection of theseforeign vehicles, which interested her greatly; but up to the time of her death the Board of Ceremonies had not succeeded in solving the problem how she might ride in an automobile in which there would also be, in sitting posture, one of her servants, the chauffeur. If they had had more time, I imagine that they might have found some way by which the chauffeur could kneel in driving the Imperial car, but, as it was, the poor Empress Dowager never had the pleasure of the swift rides she so much coveted.
Many popular superstitions still prevailed in parts of the provinces. The military attaché of the American Legation, Major Bowley, who later did distinguished service in the Great War as general of artillery, was active in visiting the military commanders in different parts of China and in observing their actions and getting their views. He had just returned from such a trip to Kiangsi Province, and related how one of the generals there strove to improve his morale by drinking the blood of enemies who had been killed. He spared Major Bowley a cupful of this precious liquid, which was to be taken before breakfast. It is startling to discover among the people so highly civilized as are the Chinese occasional remnants of barbarous doctrines and practices. There is an inverted homœopathy in Chinese popular belief—to the effect that "equals strengthen equals"; thus, to eat muscle develops strength, to eat tripe aids the digestion, to eat heart or drink blood develops courage, and so on.
One evening, at a dinner at Mr. Liang Shih-yi's house a spirited discussion developed between the host and Mr. Anderson. The latter had related a local custom of the Soochow region according to which it was permissible for a community or a crowd of people to bite to death any person who was thoroughly disapproved of by all. Apparentlythe method of execution was in itself a guaranty of universal condemnation, as a great many people would have to coöperate to effect the desired result by this method. Mr. Liang protested that the expression "bite to death" was in this case used only metaphorically, and there followed a long debate on Chinese folk customs.
A dinner with General Kiang, Commander of the Peking Gendarmerie, afforded another sidelight on Chinese character. We had already been seated, when an unusually tall Chinese entered, wearing Chinese civilian dress. He was introduced as Tutuh Yin (General Yin Chang-heng), and I learned that he had just returned from Szechuan, where he had become governor during the revolution, after putting to death the Imperial Governor-General, Chao Er-feng. General Yin was of striking appearance, with strong features, and vigorous in gesture. Now, it is the custom at Chinese dinners, particularly when military are present, to engage in extensive drinkings of health. The Chinese, who are usually very abstemious, drink wine that resembles sherry, and also a liqueur-like rice wine, which latter is potent. The proposer of the toast raises his little cup and drains it in one draught; the guest to whom he addresses himself is expected to do likewise; both say "Gambey" (a challenge to empty the cup). General Yin, who seemed in high spirits, was on his legs half the time "gambeying" to the other guests, especially to myself and the other Americans, the military attaché, the Chinese secretary, the commandant of the guard, and other officers. General Yin must have performed this courtesy at least forty times in the course of the evening, which with the attentions paid us by the other members of the table round, amounted to a considerable challenge of one's capacity. It must, however, be confessed that I largely shirked this test, in company with the amiable General Yin Chang, my Manchuneighbour, by irrigating a large plant in front of us with the liquid dedicated to friendship.
I saw General Yin Chang next morning. He asked whether I knew what had been the matter with Tutuh Yin the night before. I said that he seemed very animated and carried his liquor very well. General Yin then told me that after I had left, the Tutuh Yin had sat down with him and talked seriously and intently, revealing his deep worry lest Yuan Shih-kai should have him executed. He stated that Chao Er-hsun, the brother of the murdered Viceroy, was in Peking, and with other men using every influence to destroy him. "So," the Manchu general said, "his bravado was just a cover for his worries."
Next day Yin Tutuh called on me at my residence. He expressed deep regret for having taken so much wine on the evening of the dinner. He said: "It is not my custom, but I was excited and worried because of the uncertainty of my affairs." He then launched forth into a literary discussion of Confucianism in its bearing upon modern thought. Not knowing that he was a student of the classics, I was surprised when he revealed this side of his nature. As a matter of fact, he greatly resembled the men of the Renaissance who combined harsh and cruel qualities with a deep love of literature. The last time I saw the Tutuh Yin, more than five years later, he presented me with his written works. There were gathered about twenty members of the Confucian Society, and the conversation again turned around the permanent qualities of Confucianism. When the concept of the "unknowable" was referred to, General Yin cited at length Herbert Spencer's views thereon. He said: "The greatness of Confucius lies in the fact that he centred his attention on those things which we know and can control, and that he aimed at the highest development of human action on this common-sense basis. He leaves the dreams about the unknowable to others."
Among our guests at a dinner was Dr. King Ya-mei, a Chinese lady noted for her wide information and cleverness. We spoke about the recent advance of Russia in Mongolia. "Who can resist Russia!" she exclaimed. Like all thinking Chinese, she was deeply worried about the difficulties confronting her nation on all sides. Dr. C.C. Wang, who was also present, spoke of the lack of continuity in developing expert knowledge, because of the frequent shifts which are made in the public service.
Dr. King Ya-mei then told an amusing incident, which shows how natural community action and passive resistance are to the Chinese. In an orphan asylum at Tientsin a new set of regulations had been issued, but the orphans had paid no attention to them. After a good many children had been called to order without result, a meeting was convoked by the principal. When the orphans were asked why they did not obey the regulations, their spokesman said: "We are perfectly satisfied with the old regulations, and have no desire to change them."—"But the new regulations have been made by your teachers," rejoined the superintendent, "and they must be obeyed."—"We do not think," the spokesman replied, "that they are an improvement, and we propose to obey the old rules."—"But, then you shall be punished severely."—"If you try to punish us, we shall all go away; and then what will become of the orphan asylum?"
They had reasoned it out that they were an important part of the institution. That orphans should conceive the idea to go on strike shows how normal and self-evident that mode of social action seems in China.
I was visited by the newly appointed Chinese minister to Japan, Mr. Lu Tsung-yu, who later became quite notorious in China in connection with the loans of 1918. He was accompanied by Doctor Tsur, the president of Tsing HuaCollege and a leading American-returned student. Mr. Lu is a slight man of suave manners, keen intelligence, and a love of manipulation. On this occasion he developed the idea that coöperation between the United States, China, and Japan was possible and desirable, as these three countries had many parallel interests. It was his opinion that Japan could not create an extensive settlement in Manchuria. He had been stationed in that region several years when Hsu Hsi-chang was viceroy; and he told me that he had observed that the Japanese came as officials, soldiers, or railway employees, or in connection with mining enterprises: but they did not seem to have any impulse to settle in the country as farmers, and as small merchants they could scarcely compete with the Chinese. Mr. Lu had been educated in Japan, being one of the first batch of Chinese students at Waseda University; together with Tsao Ju-lin, at this time Vice Minister of Foreign Affairs, who also later played an important part in Chino-Japanese affairs; and Chang Chung-hsiang, the Chief Justice of China at that time, a man who exercised considerable influence in introducing into China the Japanese idea of judicial procedure and organization and who became Chinese minister in Tokyo in 1916. This trio of associates was popularly known as "the Three Diamonds."
An important meeting of the diplomatic corps dealt with the procedure in the matter of claims against the Chinese Government on account of damage suffered during the revolution. The Japanese, French, and German representatives were inclined to insist that the Chinese Government be held responsible for all losses which could in any way be said to have been caused, directly or indirectly, by the revolution. In line with the traditional policy of fairness and moderation followed by the United States I strongly urged that only losses directly and physically traceable to violent action should be paid, eliminating such uncertain and contingentmatters as anticipated profits. The British minister gave support to this view; his legation, too, had not encouraged the filing of indirect claims. After much discussion, the suggestion was accepted in the form proposed. By this action were ruled out indirect claims to the amount of nearly four million dollars, which had already been listed and included by some of the legations in their totals.
The British Legation, in which diplomatic meetings are held, is an old palace, formerly the residence of a Manchu prince, which was purchased by the British Government at the time when legations were first established at Peking. Fortunately, the fine architectural forms of the old structure had been retained sufficiently to leave this group of buildings justly proportioned, beautifully decorated, and free from jarring foreign notes. One passes to the minister's residence through two lofty, open halls, with tiled roofs and richly coloured eaves. The residential buildings are Chinese without and semi-European within, Chinese decorative elements having been allowed to remain in the inner spaces. The diplomatic meetings always took place in the dining room, where a huge portrait of Queen Victoria, from the middle period of her reign, impassively—not without symbolic significance—looked down upon the company.
There were at this time about sixteen legations in Peking, so that the meetings were not too large for intimate conversation. The proceedings were usually carried on in the English language, partly out of deference to the Dean, and partly because English has come quite naturally to be the international language of the Far East.
The diplomatic corps in Peking meets frequently, and it has more comprehensive and complicated business than falls to such a body in any other capital. Matters of diplomatic routine occupy only a subsidiary place. Because of the system of extra-territoriality under which foreign residentsremain exempt from Chinese law and subject only to that of their own respective nation, the foreign representatives in China are constantly concerned with the internal affairs of that country. The effects of any legislation by the Chinese Government upon foreign residents have to be considered by the diplomatic corps: if the most punctilious minister discovers that the measure in question in any way transgresses that absolute immunity from local law which is claimed, then objection will be made, and the unanimous consent, which is necessary to approve of such matters, is difficult or impossible to obtain.
Questions of taxation are constantly before the diplomatic corps, as the Chinese local officials quite naturally attempt to find some way to make the foreigners bear at least part of the taxation of a government whose general protection they demand. The methods of proving claims and collecting indemnities give rise to much discussion, whenever there has been some outbreak of revolutionary activity. As certain revenues have been pledged for international loans, the diplomatic corps will object to the Chinese Government using these revenues at all before they have been released as not needed for defraying the debt charges. One of the most fruitful causes of irritation comes from attempts frequently made by one or the other minister to "hold up" the funds belonging to the Chinese until they have fulfilled some particular demand which he had made. The fact that it may be an entirely extraneous and irrelevant matter, such as the appointment of a national of the minister to a Chinese government job, does not seem to disturb the man who thinks he has found a clever way to achieve his purpose. The international settlement at Shanghai and the régime of foreign troops in Peking and along the Mukden Railway also give rise to a great many problems which are referred to the diplomatic corps. From questions involving the recognition of the Government itself to such matters asthe advisability of bambooing prisoners at Shanghai, no question seems to be too big or little to come before this body.
The discussions tend rather to avoid general issues and to confine themselves to a statement and explanation of the position taken by each government. Occasionally the stubborn and unreasonable adherence of one or two representatives to what is considered by others as an unduly severe and exacting position, leads to joint efforts in an attempt to make a more fair and liberal policy prevail. The discussions are not infrequently longer than is necessary; the main points are lost sight of, and discussion becomes entangled, because one side may be talking of one thing, whereas the other has quite a different matter in view. Until it is discovered that there is no real difference or only a difference in form, much valuable time may be consumed. At times, these conferences remind one of a university faculty meeting.
Weeks were filled with innumerable conferences on matters of business. In China it rarely happens that the decision lies with only one official. In order to have a proposal accepted, a great many men have to be consulted and won over. Impatient representatives, backed by strong national force, have frequently tried to cut short this procedure, and, planting themselves before the official whose assent they needed, have "pounded the table" until a promise was obtained. They sometimes succeeded by so powerfully getting on the nerves of the Chinese official that he saw no way to save his peace of mind but by giving in. At one time I expressed great surprise to the Minister of Finance, because, instead of insisting that reasonable arrangements for the renewal of a certain short-term loan should be made, he had given the representative in question—the agent of a munition company—a large order for additional materials which were not needed, only to secure an extension of time. He said, inself-defence: "The manners of the man were so abominable that I could not stand it any longer."
However, the method of the strong arm and mailed fist, while it has produced results in China, has also carried in itself the elements of its own defeat. The Chinese may make a concession under such circumstances, but they will thereafter have no interest whatsoever in facilitating the business in question; on the contrary, it is likely to be delayed and obstructed at every point, so that it can be carried out only through constant pressure and show of force. The people of China have a strong and widespread sense of equity. He who proposes a reasonable arrangement and gives himself the trouble to talk it over with officials and other men concerned, in the spirit of arriving at a solution fair to all, will build on a sound foundation. Whenever foreign interests have acted on this principle, the results have been far more fruitful of good than where things have been carried through with a high hand by demand and threat, without reasoning or give and take. But to sit in conference with various people on all the phases of any proposal is a great consumer of time. One is kept busy day and night in following the roads and trails that lead to the final meeting of minds from which action is to result.
I had a visit from the Tuchun Tien, of Kalgan, after my return from America in the fall of 1918. I found that the Tuchun was in very bad grace at the American Legation. He had interfered with an automobile service which an American had tried to establish between Kalgan and Urga, in Mongolia, and had in other ways shown an apparent hostility to legitimate American enterprise. As the writing of notes had not secured any satisfactory results, I began to probe into the situation to find what lay back of the attitude of the general.
I found that he was "blood-brother" of Mr. Pan Fu, whomin turn I numbered among my friends. I therefore consulted Mr. Pan Fu about the situation. He said that there must be some misunderstanding, as the General was certainly not animated by any feeling of hostility to America; but that it was possible that the particular American in Kalgan had rubbed him the wrong way. So he promised to write the General a long letter.
A short time later he called on me and reported that General Tien had written him that he was soon coming to Peking and would be very glad to meet me. The Tuchun soon called on me, with Mr. Chow Tsu-chi, and we had a most friendly talk. Very little was said about any past difficulties in Kalgan, but a great deal about future prospects of goodwill and mutual help. In fact, our friendship was quite firmly established, and there was no further room for misunderstanding.
Tuchun Tien was an open-faced, friendly looking person who, though he had straggling side whiskers unusual with the Chinese, had nothing of the berserker in his bearing. Our conversation was long and cordial. When it had already lasted more than an hour, Mr. Chow looked at me apologetically and said, in English: "We had better let him talk, it does him good." As for myself, I was glad to hear his views.
Mrs. Reinsch and I gave a dinner to Mr. Robert Gailey of the Y.M.C.A. on the eve of his departure for America. About thirty guests were present, all members of the American mission societies in Peking. I had just entered the reception room to be ready to welcome our guests when much to my surprise Prince Pu Lun was ushered in. It was evident that there had been some mistake about invitations, but as there appeared to be no other dinner given at the Legation, I made no effort to clear up the error and tried to make him thoroughly welcome. I had the table rearranged so as to seat the Prince between two ladies both of whomspoke Chinese very well. He appeared to be surprised at the composition of the company and the absence of wines, but was apparently well entertained by his neighbours. When the dinner was about half through, Kao, the head boy, came to the back of my chair and whispered to me: "Mrs. Lee's boy outside. Say Prince belong Mrs. Lee dinner." So after dinner I felt in duty bound to tell the Prince that Mrs. Lee had sent word that she would be very happy if he could come to her house in the course of the evening.
After a short conversation, in which he told me about his children of whom he is very fond, the Prince departed, to recoup himself at the house of the navy doctor for the abstinences laid upon him at the minister's dinner.
PART II
THE PASSING OF YUAN SHIH-KAI
CHAPTER XI
THE WAR: JAPAN IN SHANTUNG
On August 8, 1914, Japanese war vessels appeared near Tsingtau. Japan suggested on August 10th that the British Government might call for the coöperation of Japan under the terms of the Alliance. In view of possible consequences the British Government hesitated to make the call; the British in China considered it important that independent action by Japan in that country should be precluded.
Acting on its own account on August 15th, the Japanese Government sent the Shantung ultimatum to Germany. The British Government was then informed of the action taken. The German representative at Peking had discussed informally with the Foreign Office the possibility of immediately returning Kiaochow directly to China; but the Chinese Government was now pointedly warned by the Japanese that no such action would be permitted.
The Chinese Government then also seriously considered the policy of declaring war on Germany. It would have been as easy for the Chinese, as for any one else, to take Kiaochow from the Germans, but Japan was ready and anticipated them. In fact, the Japanese minister stated to the Chinese Foreign Office on August 20th that the Kiaochow matter no longer concerned the Chinese Government, which, he trusted, would remain absolutely passive in regard to it. The ultimatum to Germany, limited to August 23rd, demanded the delivery, at a date not later than September 15th of the leased territory of Kiaochow to the JapaneseGovernment, "with a view to the eventual restoration of the same to China."
Basing its action upon the language of this ultimatum, the American Government on August 19th made a communication to the Japanese Foreign Office, noting with satisfaction that Japan demanded the surrender of Kiaochow with the purpose of restoring that tract to China, and that it was seeking no territorial aggrandizement in China.
On my return to Peking on September 30th, I found the Chinese in a state of natural excitement over the action taken by Japan. By this time the Japanese had invested Tsingtau; the British, who had also sent a contingent of troops, were kept by the Japanese in a very subsidiary position. The scope of Japan's plans was more fully revealed on September 29th, when the Chinese Government was informed that "military necessity" required the Japanese Government to place troops along the entire railway in Shantung Province. As this railway had never had German military guards, and as the portion near Tsingtau was already held by Japanese troops, the military necessity of such further occupation was by no means apparent.
Mr. Liang Tun-yen, Minister of Communications, called on me on October 1st, expressing deep concern over the action of the Japanese in Shantung. He stated his conviction that, in departing from the necessary military operations around Tsingtau, it was Japan's plan to stir up trouble in the interior of China with a view to more extensive occupation of Chinese territory. From Japanese sources he had information to the effect that the Japanese militarists were not satisfied with the reduction of Tsingtau, but wished to take advantage of this opportunity to secure a solid footing—political and military—within the interior of China. He was further informed that they were ready to let loose large numbers of bandits and other irresponsible persons to coöperate with revolutionary elements in an attempt to create widespread uprisings, in order to furnish a pretext for military interference. When I called attention to the declarations regarding Kiaochow in Japan's ultimatum to Germany, the minister shook his head and said: "Unfortunately, Japanese policy cannot be judged by such professions, but only by the acts of the last twenty years, which make up a series of broken pledges and attacks upon the rights of China."
President Yuan Shih-kai had wished to see me; so I called on him informally on October 2nd. In stronger terms than Minister Liang he set forth his apprehensions. "From information in my possession," he stated, "I am convinced that the Japanese have a definite and far-reaching plan for using the European crisis to further an attempt to lap the foundations of control over China. In this, the control of Shantung through the possession of the port and the railway is to be the foundation stone. Their policy was made quite apparent through the threatened occupation of the entire Shantung Railway, which goes far beyond anything the Germans ever attempted in Shantung Province. It will bring the Japanese military forces to the very heart of China."
Thereupon Yuan Shih-kai requested that I ask President Wilson to use his good offices in conferring with the British Government, in order to prevail upon Japan to restrict her action in Shantung to the military necessities involved in the capture of Tsingtau, according to the original assurances given the Chinese Government. I communicated this request to the President through the Department of State.
With great promptness, however, the Japanese executed the plan they had adopted. They informed the Chinese that, being judges of their own military necessities, they would occupy the railway byforce majeureimmediately, but would leave its administration in Chinese hands—with the stipulation that Japanese conductors be placed on the trains. The Chinese found no means to resist this arrangement.
Mr. Eki Hioki, successor of Minister Yamaza, had arrived during the summer. He had for many years been minister in Chile, where I had met him in 1910; remembering his genial and sociable qualities, I was happy to renew this acquaintance. Mr. Hioki differed from his predecessor in his readiness to talk freely and abundantly. In our first conversation, when the relations between the United States and Japan came up, he adduced the customary argument that as the United States was preventing the Japanese from settling in America, we could not in fairness object if Japan tried to develop her activities and influence on the Asian continent. I could honestly assure him that American goodwill did go out in full measure to any legitimate development of Japanese enterprise and prosperity, but we also had duties toward our own citizens, who had been active in Chinese trade for more than 130 years, as well as toward China herself. We could not be expected to approve any action which would not respect the rights of these.
The Chinese people were becoming more and more alarmed about Japan in Shantung. The large number of petitions and manifestoes which came to me, as the representative of a friendly nation, from various parts of China, gave me an idea of how widespread was this anxiety. Some of these protests were written with the blood of the petitioner.
Count Okuma's declaration, that a large increase in the military forces of Japan was needed to preserve peace in the Far East, was interpreted as meaning that Japan would take the present opportunity to make good her actual domination throughout eastern Asia. The Chinese felt that any understanding with Japan would inevitably lead to the total subjection of China to the political dominance of her neighbour. They distrust all professions of Japanese friendship. Whenever I tried to argue that a frank understanding between China and Japan was desirable, I was told that China could not trust Japan; that Japan must not be judged by her professions, but by her past acts, all of which show a determined policy of political advance veiled by reassuring declarations.
Thus the Chinese feared Japanese intrigue at every point. They believed that revolutionary activities, as in the past, were getting encouragement from Japan. The Japanese were ready to take advantage of and to aggravate any weakness which might exist in Chinese social and political life. They would fasten like leeches upon any sore spot. The tendency toward rebellion and brigandage, the counterfeiting of banknotes, the corruption of officials, the undermining of the credit of important private and public enterprises, the furnishing of more dangerous drugs when opium was forbidden—in connection with such mischiefs individual Japanese had been active to the great damage of the Chinese. But though it would be unjust, of course, to charge up this meddling to the Japanese nation as a whole the connivance of their militarist government was a fact.
The British looked upon the new adventure of Japan with a decided lack of enthusiasm. While welcoming the losses inflicted on their enemy in war, they were evidently fearful of the results which might come from Shantung.
It was plain that the Russians, too, while allied with Japan, were quite aware of the dangers inherent in the Chinese situation. Taken with recent Japanese advances in Inner Mongolia, a situation was created in northern China which would be regarded as dangerous by the Russians. Discussing the unrest in China, the Russian minister said to me significantly: "The situation itself does not impress me as serious; the only serious thing about it is that the Japanese say it is serious."
In fine, the general temper and direction of Japanese action was not relished by the allies of Japan. Japan had taken advantage of a conflict which was primarily European, into the rigour of which she did not enter, for the purpose of gathering up the possessions of Germany in the Far Eastand the Pacific at a time when they could be but weakly defended.
This policy of Japan deeply affected American prospects and enterprise in China, as, also, that of the other leading nations. Since the American attitude of goodwill toward China had in the past been understood by the Chinese to imply a readiness to give them a certain support in times of need, large hopes were entertained as to what the United States would do. Rich and powerful beyond measure, she would, in the minds of the Chinese, help China to maintain her integrity, independence, and sovereignty. Other nations, not a little jealous of the past goodwill of the Chinese toward us, were not slow to point out that American friendship was a bubble which vanished before such concrete difficulties as the violation of China's neutrality. But the Chinese, after all, saw that it did not lie within the sphere of its action for the United States to come to the rescue with direct political and military support. True, the Chinese had encouraged American activities in China. They had looked upon them as a safeguard to their own national life. Since they were conducted in a fair spirit and without political afterthought, the Chinese did hope and expect as a minimum that Americans would stand by their guns and not let themselves be excluded by political intrigue or other means from their share in the development and activities of China.
CHAPTER XII
THE FAMOUS TWENTY-ONE DEMANDS, 1915
"Japan is going to take advantage of this war to get control of China." In these words President Yuan Shih-kai summed up the situation when I made my first call on him after returning from Europe in September. Many Chinese friends came to see me and tell me their fears. Admiral Tsai said: "Here are the beginnings of another Manchuria. Aggressive Japan in Shantung is different from any European tenant."
Events had moved rapidly. Tsingtau had been taken, German control had been wholly eliminated from the leasehold and the railway. The Chinese Government notified Japan that permission to use part of the Province of Shantung for military operations would be withdrawn, since occasion for it had disappeared. This the Japanese seized upon as a calculated and malignant insult; it was made the excuse for presentation of the demands.
The blow fell on January 18th. The Japanese minister sought a private interview with Yuan Shih-kai. This meeting took place at night. With a mien of great mystery and importance the minister opened the discussion. He enjoined absolute secrecy on pain of serious consequences before handing Yuan the text of the demands. He made therewith an oral statement of the considerations which favoured the granting of them.
The Chinese, fearing greater evils, did their best to guard the secret. They could not, however, keep in complete ignorance those whose interests would have been vitally affected; also memoranda of important conversations had tobe set down. As soon as I received the first inkling of what was going on, I impressed it on the Chinese that, since the subjects under discussion intimately affected American rights in China, I should be kept fully informed in order that my government, relying on the treaties and understandings concerning Chinese independence, could take necessary steps to safeguard its interests. The Chinese were of course ready to comply with my request. My intercourse with Chinese cabinet ministers and Foreign Office members was not confined to formal interviews and dinners. We exchanged many visits during which we conversed far into the night, without wasting time over formalities or official camouflage.
In the conversation in which he presented the twenty-one demands, the Japanese minister dropped several significant hints.
The minister then spoke of the Chinese revolutionists "who have very close relations with many Japanese outside of the Government, and have means and influence"; further, "it may not be possible for the Japanese Government to restrain such people from stirring up trouble in China unless the Chinese Government shall give some positive proof of friendship." The majority of the Japanese people, he continued, were opposed to President Yuan Shih-kai. "They believe," he went on, "that the President is strongly anti-Japanese, and that his government befriends the distant countries (Europe and America) and antagonizes the neighbour. If the President will now grant these demands, the Japanese people will be convinced that his feeling is friendly, and it will then be possible for the Japanese Government to give assistance to President Yuan." Yuan sat silent throughout this ominous conversation. The blow stunned him. He could only say: "You cannot expect me to say anything to-night."
Quite aside from the substance of the twenty-one demands, the threats and promises implied in this statementconvinced the Chinese leaders that Japan was contemplating a policy of extensive interference in the domestic affairs and political controversies in China, making use of these as a leverage to attain its own desires. The Chinese considered it an ominous fact that the paper on which the demands were written was watermarked with dreadnoughts and machine guns. They believed that the use of this particular paper was not purely accidental. Such details mean a good deal with people who are accustomed to say unpleasant things by hints or suggestions rather than by direct statements.
A Japanese press reporter called at the Legation on January 19th, and related his troubles to one of the secretaries. The Japanese minister refused absolutely, he said, to say anything about what passed between him and the President; therefore he had sought the American Legation, which might have knowledge which could help him. With his assumed naïveté the man possibly hoped to get a hint as to whether a "leak" had occurred between the Chinese and the American minister. But it was not until January 22nd that I learned the astonishing nature of the Japanese proposals. Calling on one of the Chinese ministers on current business, I found him perturbed. He finally confided to me, almost with tears, that Japan had made categorical demands which, if conceded, would destroy the independence of his country and reduce her to a servile state. He then told me in general terms their nature, saying: "Control of natural resources, finances, army! What will be left to China! Our people are being punished for their peacefulness and sense of justice." The blow evidently had come with stunning force, and the counsellors of the President had not been able to overcome the first terrified surprise, or to develop any idea as to how the crisis might be met.
An ice festival was being given on the next evening at the American guard skating rink. Mr. B. Lenox Simpson sought me out and accosted me quite dramatically, withthe words: "While we are gambolling here, the sovereignty of the country is passing like a cloud to the east. It is Korea over again." He had received accurate information as to the general character of the demands. Two days later the representative of the LondonTimes, who had been out of town, asked me casually: "Has anything happened?" "You may discover that something has happened," I replied, "if you look about." That evening he returned to me with all that he could gather.
Although these correspondents, as well as the Associated Press representative, telegraphed the astounding news to their papers, nothing was published for two weeks either in America or in England. The Associated Press withheld the report because its truth was categorically denied by the Japanese ambassador at Washington. Its Peking representative was directed to send "facts, not rumours." On January 27th it was given out "on the highest authority" both at Tokyo and at Washington that information purporting to outline the basis of negotiations was "absolutely without foundation." Only gradually the truth dawned on the British and American press. The British censor had held up the reports for a fortnight, but on February 5th Mr. Simpson wrote me in a hasty note: "My editors are in communication with me, and we have beaten the censors." From 25th January on, the demands began to be discussed confidentially among members of the diplomatic corps but publicly by the press in Peking. As the impossibility of keeping the matter secret locally was now universally granted from this time high Chinese officials consulted with me almost daily about their difficulties. The acceptance of these demands, of course, would have effectively put an end to the equal opportunities hitherto enjoyed in China by American citizens; I therefore made it my duty to watch the negotiations with great care.
The Japanese were avoiding any interference with theformal "integrity, sovereignty, and independence" of China; they were developing special interests, similar to those enjoyed by Japan in Manchuria, in other parts of China as well, particularly in the provinces of Shantung and Fukien. They could place the Chinese state as a whole in vassalage, through exercising control over its military establishment and over the most important parts of its administration. There would be three centres from which Japanese influence would be exercised—Manchuria, Shantung, and Fukien. Manchuria was to be made more completely a reserved area for Japanese capital and colonization, but with administrative control wielded through advisers and through priority in the matter of loans. In Shantung, the interest formerly belonging to Germany was to be taken over and expanded. A priority of right in Fukien was demanded, both in investment and development; this would effectively bar other nations and would assimilate this province to Manchuria. The northern sphere of Japan was to be expanded by including Inner Mongolia. From the Shantung sphere influence could be made to radiate to the interior by means of railway extensions to Honan and Shansi. Similarly, from the Fukien sphere, railway concessions would carry Japanese influence into the provinces of Kiangsi, Hupei, and Kwangtung. The Japanese interest already existing in the Hanyehping iron and coal enterprise, which was a mortgage with right to purchase pig iron at certain rates, was to be consolidated into a Japanese-controlled company. Added to these was the significant demand that outsiders be denied the right to work any mines in the neighbourhood of those owned by the Hanyehping company without its consent; nor were they to be permitted, lacking such consent, to carry out any undertaking that might directly or indirectly affect the interests of that company. This astonishing proposal sought to make the Japanese concern the arbiter of industrial enterprise in the middle Yangtse Valley.
Group V consisted of the sweeping demands which would have virtually deprived the Chinese Government of the substance of control over its own affairs. The employment of effective Japanese advisers in political, financial, and military affairs; the joint Chino-Japanese organization of the police forces in important places; the purchase from Japan of a fixed amount of munitions of war—50 per cent. or more; and the establishment of Chino-Japanese jointly worked arsenals, were embraced in these demands. The latter involved effective control over the armament and military organization of China.
So stunned was the Chinese Government by the Japanese stroke that it missed its first opportunity. It might have immediately given notice to the friendly Treaty Powers of the demands, which affected their equal rights in China, as well as the administrative independence of the Chinese Government.
A member of the Foreign Office consulted me about the best method of dealing with the demands; I expressed the opinion—which was not given by way of advice—that the detailed negotiation of individual demands, with a view of granting only the least objectionable, would be likely to give most force to considerations of equity. Time would be gained; the other nations interested would come to realize what was at stake. If certain liberal grants and concessions should be made, China could then with greater force refuse to create rights and privileges incompatible with her sovereignty. The situation would then be more fully and clearly understood by foreign nations.
As the negotiations proceeded the Japanese minister hinted to the Minister for Foreign Affairs that the Japanese public looked askance at the present Chinese administration, because of the hostility often demonstrated by Yuan Shih-kai; still, this feeling might be conciliated. It might evenbe possible for the Japanese Government to give President Yuan assistance against rebel activities. The sinister quality of this hint was fully appreciated. It was at this point that the Japanese minister used the simile which promptly became famous throughout the Far East. He employed this picturesque language: "The present crisis throughout the world virtually forces my government to take far-reaching action. When there is a fire in a jeweller's shop, the neighbours cannot be expected to refrain from helping themselves."
Notwithstanding powerful efforts on the part of Japan to enforce silence by menacing China and by muzzling the press in Japan, accurate information got abroad; whereupon the Japanese Government presented to the powers an expurgated version of its demands, from which the more objectionable articles were omitted. Later on, it was admitted that the demands of Group V had been "discussed," and statements were again issued on "the highest authority" that these so-called demands were merely overtures or suggestions, which violated no treaty and involved no infringement of Chinese territory and sovereignty. The Japanese Legation in Peking asked local correspondents to send out a similar statement, which, however, was refused by them, as the true nature of the demands was already known.
The British, who had more extensive interests at stake than any other foreign nation, had shown agitation. British residents and officials expressed deep concern because their government, being necessarily preoccupied with events in Europe, could not give full attention to the Far East. As the action of Japan had been taken under the ægis of the Anglo-Japanese Alliance, it seemed to the British that this was being used to nullify any influence which Great Britain might exercise, as against a plan on the part of Japan to seize control of the immense resources of China and of hermilitary establishment.[2]It was believed that some sort of communication relating to the demands had been made to the British Foreign Office before January 18th. When the expurgated summary came out, theTimesof London on February 12th published an editorial article describing Japan's proposals as reasonable and worthy of acceptance; it was understood in Peking that this approval related to the summary, not to the demands as actually made. But the Chinese officials were apprehensive lest a ready acquiescence of public opinion in the less obnoxious demands might encourage Japan to press the more strongly for the whole list. As late as February 19th, the State Department informed me that it inferred that the demands under Group V were not being urged. The full text of the actual demands as originally made had now been communicated to the various foreign offices; but because of the discrepancy between the two statements, they were inclined to believe that Japan was not really urging the articles of Group V.
The Japanese minister had at first demanded the acceptance in principle of the entire twenty-one proposals. This was declined by the Chinese Minister for Foreign Affairs. When the Japanese asked that Mr. Lu express a general opinion on each proposal, he readily indicated which of them the Chinese Government considered as possible subjects for negotiation. Forthwith the Japanese minister replied that the expression of opinion by Minister Lu was unsatisfactory; that negotiations could not continue unless it were radically modified. Mr. Lu was evasive and Mr. Hioki on February 18th became more peremptory; heinformed Mr. Lu that the negotiations might not be confined to the first four groups—that the whole twenty-one demands must be negotiated upon.
Thereupon I telegraphed inviting President Wilson's personal attention to the proposals which affected the rights and legitimate prospects of Americans in China. The President had already written me in a letter of February 8th: "I have had the feeling that any direct advice to China, or direct intervention on her behalf in the present negotiations, would really do her more harm than good, inasmuch as it would very likely provoke the jealousy and excite the hostility of Japan, which would first be manifested against China herself.... For the present I am watching the situation very carefully indeed, ready to step in at any point where it is wise to do so."
Shantung was first taken up in the negotiations. The negotiators were: the Chinese Minister for Foreign Affairs, Mr. Lu Tseng-tsiang; the vice-minister, Mr. Tsao Ju-lin; the Japanese minister, Mr. Eki Hioki; and Mr. Obata, Counsellor of Legation. Vice-Minister Tsao had been educated in Japan, and was generally considered as friendly to that country. The Japanese minister, genial in manner and insistent in business, was aided by a counsellor noted for tenacity of purpose and for a grim dourness. Point by point the demands on Shantung and Manchuria were sifted. By the preamble to Group II, in the original version, Japan claimed a "special position" in south Manchuria and in eastern Inner Mongolia. The Chinese took decided objection. The Japanese minister complained on March 6th of slow progress, giving thenceforward frequent hints that force might be resorted to. Finally, on March 11th, the Chinese were informed that a Japanese fleet had sailed for ports in China under sealed orders.
After agreeing to important concessions in Manchuria and Shantung, the Chinese determined to resist further demands.Just here the American Government gave the Japanese ambassador at Washington its opinion that certain clauses in the demands contravened existing treaty provisions. For the Japanese ambassador had offered a supplementary memorandum which substantially gave the proposals of Group V as "requests for friendly consideration." They were "mere suggestions" to the Chinese! This method of disarming foreign opposition imposed one disadvantage—it would hereafter hardly do actually to use military force to coerce China into accepting the "friendly suggestions" contained in Group V. The only chance of getting these concessions was to keep the other governments in uncertainty as to the actual demands, that they might not take them seriously, and meanwhile to bring pressure to bear in order to force Peking to accept these very proposals. The Chinese would feel themselves abandoned by the public opinion of the world.
The Japanese increased their military forces in Manchuria and Shantung during the second half of March; for a time the movement stopped the ordinary traffic on the Shantung Railway.
The new troops were "merely to relieve those now stationed in Chinese territory," it was stated. Military compulsion was clearly foreshadowed; and thus beset, the Chinese had by the end of March almost entirely accepted the Japanese demands in Shantung and Manchuria. I had a long interview with President Yuan Shih-kai on March 23rd. He seemed greatly worried but was still good-humoured. He said: "The buzzing gnats disturb my sleep, but they have not yet carried off my rice. So I can live." Then growing serious he went on: "I am prepared to make all possible concessions. But they must not diminish Chinese independence. Japan's acts may force upon me a different policy."
I wondered whether he was actually contemplating armedresistance. "Against any action taken by Japan, America will not protest, so the Japanese officials tell us. But the Japanese have often tried to discourage the Chinese by such statements," he added. "They say: 'America has no interest in the Chinese'; or, 'America cannot help you even if she wishes to.'"
Yuan felt that if America could only say, gently but firmly: "Such matters concerning foreign rights in China, in which we have an interest by treaties, policy, and traditions, cannot be discussed without our participation," the danger would largely dissolve.
Certain possible solutions were now suggested by the Department of State. They aimed to bestow desired benefits on Japan, but also to protect China and the interests of other nations in China. Personally, I felt that the demands of Group V should be wholly eliminated. Any version of them would tangle, would more inextricably snarl, the already complicated relationships of foreign powers in China, and choke all constructive American action.
The Japanese demands respecting Manchuria were substantially complied with during early April; and the Chinese thought this part of the negotiations closed. Not so the Japanese; they manœuvred to keep open the Manchurian question on points of detail. Meanwhile, they persistently injected Group V into the negotiations.
For over two months the negotiations had now gone on with two or three long conferences every week. The furnishing of war materials, Fukien Province, and pointed references to a "certain power"—meaning the United States—occupied the Japanese part of the discussion on April 6th. The Japanese minister was strikingly peremptory in manner. Because of the pretensions of this "certain power" he must insist on the demands regarding harbours and dockyards. Control, direct or indirect, of any naval base in Fukien must be frustrated, for the sake both of China and of Japan.The present American administration might withdraw its "pretensions"; but what if they should be resumed in future? The only safe course was to exclude this power from any possibility of getting such a foothold. Meanwhile, local Japanese-edited papers harped upon the great influence which Ambassador Chinda was alleged to wield over Secretary Bryan. It would be futile to hope, they insisted, that America might in any way assert herself in support of China.
At this time I informed the Chinese Minister for Foreign Affairs that should the attitude or policy of the United States be mentioned by any foreign representative, and should statements be made as to what the American Government would or would not admit, demand, or insist upon, the Chinese Government would be more than justified in taking up such a matter directly with the representative of the United States, through whom alone authoritative statements as to the action of his government could be made.
The American Government had filed with the Japanese strong objections to the granting of any special preference to any one nation in Fukien. It had also emphasized the right of its citizens to make contracts with the central and provincial Chinese governments, without interference and without being regarded as unfriendly by a third power. So far as harbours and naval bases were concerned, as stated previously, the American Government did not object to any arrangement whereby China would withhold such concessionsfrom any and allforeign powers. But Japan needed to allege some reason for making special demands with respect to Fukien; therefore it alleged the machinations of a "certain power."
No cause for apprehension existed. The talk of "pretensions" related to the Bethlehem Steel Company's contract, made five years earlier, which did not, however, touch Fukien, although a spurious version of the contract, circulated in Peking shortly before, gave this impression. Anunfounded report spread by interested parties was thus made the basis for a demand against the Chinese Government.
Meanwhile, what the Japanese had put forth for foreign consumption in the way of news was being compared with what was actually done in Peking. This annoyed the Japanese press, not so much because its government had been caught in the act of trying to mislead its own allies, as because timely publicity and strong public opinion abroad were defeating the attempt to impose its demands on the Chinese. The Chinese relied on public opinion. It was their great desire, as they often said to me, that although the American people and its government might not furnish material assistance it should at least know the facts about the attack made on Chinese liberty; for they saw in the public opinion of the world, and especially of the United States, the force which would ultimately prevail. Even with Yuan Shih-kai, man of authority though he was, this hope existed. Mr. Lu, the Minister for Foreign Affairs, said to me: "All that China hopes is that America and the world may know and judge."
Finally theJapan Mail, a semi-official Tokyo paper, published on April 1st the full text of the Japanese demands in English. Thus was admitted as a matter of course what had been categorically denied upon "the highest authority." While the secret negotiations were going on there was a byplay on the part of many official and non-official Japanese, who were evidently trying to create an atmosphere of antagonism to the Western nations. I received daily reports of conversations in private interviews, at dinners, and on semi-public occasions, in which Japanese were reminding the Chinese of all possible grievances against the West, and picturing to them the strength and importance that a Chino-Japanese alliance would have. Thus it was said many times: "Think of all the places from which we are at present excluded. Should we stand together, who couldclose the door in our face?" Or again: "Are you not weary of the domineering attitude of the foreign ministers in Peking? They do not pound the table in Tokyo. They would be sent home if they did." It was constantly repeated that all would be well if only China would let Japan reorganize her material and military resources. Visions of millions under arms, splendidly drilled and equipped—an invincible Chinese army officered by Japanese—were conjured up. To all such siren songs, however, the Chinese remained deaf.
A complete deadlock developed toward the end of April. The Chinese desired to dispose of the grants concerning Manchuria. The Japanese would not agree to anything definite without including the demands under Group V. As a prelude to an ultimatum, the Japanese minister on April 26th presented "demands" with respect to Shantung and Mongolia, unchanged except for the wording of the preamble; this substituted the term "economic relations" for "special position." With respect to Hanyehping, they were softened to provide that the Chinese might not convert the company into a state-owned concern, nor cause it to borrow foreign capital other than Japanese. Certain railway concessions were to be granted, and the most important demands under Group V were to be embodied into a protocol statement by the Minister for Foreign Affairs.
Mr. Lu pointed out that the railway grants sought conflicted with the concessions already given to British interests; Mr. Hioki then proposed that China grant these same concessions to Japan, letting Japan "fight it out" with Great Britain. With respect to Fukien, China was to state, in an exchange of notes, that no foreign nation might build dockyards or naval bases there, nor should foreign capital be borrowed for that purpose. Japan, therefore, abandoned her attempt to secure preferential rights in Fukien Province.
The Minister for Foreign Affairs handed his answer to the Japanese minister on May 1st. The demands under GroupV, Mr. Hioki was informed, could not possibly be accepted by a sovereign power. With respect to the other demands, a specific answer was given very closely approaching acceptance of the demands as revised by Japan. No railway concessions were made, however, and it included certain technical modifications with respect to the Manchurian demands. Everything asked with respect to Shantung was granted, with the counter-proposal that China take part in the negotiations between Japan and Germany.
This was conciliatory; nevertheless, the Japanese were moving their troops. Everything indicated extreme measures. Japan's reservists in Mukden had been ordered to their station, Japanese residents in Peking were warned to hold themselves ready. At Tsinanfu, new entrenchments were being built. When it was known that an ultimatum would be delivered, the Chinese officials were perplexed and undecided. Should they await its delivery, or try to placate the Japanese by further concessions? The Chinese find it hard to obey a demand backed by force; they are used to arrangements based on persuasion, reason, and custom. To submit to positive foreign dictation would be the greatest conceivablediminutio capitisfor the Government. Chinese officials visited me frequently. They seemed comforted in discussing their difficulties and fears. I could not, of course, give them advice, but I expressed my personal conviction that Japan could hardly find it feasible to include Group V—which she had explained to the powers as suggestions of friendship—in an ultimatum.
The position of the American minister throughout these negotiations had not been easy. The United States was the only power that had its hands free. The Chinese expected its resentment and strong opposition to any arrangements conflicting with Chinese independence and the equal rights of Americans in China. I could reiterate our repeated declarations of policy and allow the Chinese to draw theirown conclusions as to how far our national interests were involved. But when the minister I saw most frequently would ask: "But what will you do to maintain these rights you have so often asserted?" I had to be particularly careful not to express my own judgment as to what our course of action should be, in order not to arouse any hopes among the Chinese as to what my government would do. Instructions had been slow in coming.
It was my personal opinion that America had a sufficiently vital interest to insist on being consulted on every phase of these negotiations. The Chinese had hoped that America might lead Great Britain and France in a united, friendly, but positive insistence that the demands be settled only by common consent of all the powers concerned. But the situation was complex. The state of Europe was critical. The most I could do, and the least I owed the Chinese, was to give a sympathetic hearing to whatever they wished to discuss with me, and to give them my carefully weighed opinion. Our own national interests were closely involved. It was my positive duty to keep close watch of what was going on. While not taking the responsibility of giving advice to the Chinese, I could give them an idea as to how the tactical situation, as it developed from week to week, impressed me. Dr. Wellington Koo all through this time acted as liaison officer between the Minister for Foreign Affairs and myself, although I also saw many other members of the Ministry. In discussing the consecutive phases of the negotiations, as they developed, Doctor Koo and I had many interesting hours over diplomatic tactics and analysis, in which I admired his keenness of perception. Some objection was hinted by the Japanese Legation to Doctor Koo's frequent visits to my office and house, but his coming and going continued, as was proper.