The thunderclap of the European war shattered the uneasy calm in China, not because the Chinese knew anything of the mighty issues which were to be fought out with such desperation and valour, but because the presence of the German colony of Kiaochow on Chinese soil and the activity of German cruisers in the Yellow Sea brought the war to China's very doors. Vaguely conscious that this might spell disaster to his own ambitious plans, Yuan Shih-kai was actually in the midst of tentative negotiations with the German Legation regarding the retrocession of the Kiaochow territory when the news reached him that Japan, after some rapid negotiations with her British Ally, had filed an ultimatum on Germany, peremptorily demanding the handing-over of all those interests that had been forcibly acquired in Shantung province in the great leasing-year of 1898.
At once Yuan Shih-kai realized that the Nemesis which had dogged his footsteps all his life was again close behind him. In the Japanese attack on Kiaochow he foresaw a web of complications which even his unrivalled diplomacy might be unable to unravel; for he knew well from bitter experience that wherever the Japanese sets his foot there he remains. It is consequently round this single factor of Japan that the history of the two succeeding years revolves. From being indisputably the central figure on the Chinese canvas, Yuan Shih-kai suddenly becomes subordinate to the terror of Japanese intervention which hangs over him constantly like a black cloud, and governs every move he made from the 15th August, 1914, to the day of his dramatic death on the 6th June, 1916. We shall attempt to write down the true explanation of why this should have been so.
It is extremely hard to discuss the question of Japan for the benefit of an exclusively Western audience in a convincing way because Japanese policy has two distinct facets which seem utterly contradictory, and yet which are in a great measure understandable if the objects of that diplomacy are set down. Being endowed with an extraordinary capacity for taking detached views, the Statesmen of Tokio long ago discerned the necessity of having two independent policies—an Eastern policy for Eastern Asia and a Western policy for Western nations—because East and West are essentially antithetical, and cannot be treated (at least not yet) in precisely the same manner. Whilst the Western policy is frank and manly, and is exclusively in the hands of brilliant and attractive men who have been largely educated in the schools of Europe and America and who are fully able to deal with all matters in accordance with the customary traditions of diplomacy, the Eastern policy is the work of obscurantists whose imaginations are held by the vast projects which the Military Party believes are capable of realization in China. There is thus a constant contradiction in the attitude of Japan which men have sought in vain to reconcile. It is for this reason that the outer world is divided into two schools of thought, one believing implicitly in Japan's bona fides, the other vulgarly covering her with abuse and declaring that she is the last of all nations in her conceptions of fair play and honourable treatment. Both views are far-fetched. It is as true of Japan as it is of every other Government in the world that her actions are dictated neither by altruism nor by perfidy, but are merely the result of the faulty working of a number of fallible brains and as regards the work of administration in Japan itself the position is equally extraordinary. Here, at the extreme end of the world, so far from being in any way threatened, the principle of Divine Right, which is being denounced and dismembered in Europe as a crude survival from almost heathen days, stands untouched and still exhibits itself in all its pristine glory. A highly aristocratic Court, possessing one of the most complicated and jealously protected hierarchies in the world, and presided over by a monarch claiming direct descent from the sacred Jimmu Tenno of twenty-five hundred years ago, decrees to-day precisely as before, the elaborate ritual governing every move, every decision and every agreement. There is something so engaging in this political curiosity, something so far removed from the vast world-movement now rolling fiercely to its conclusion, that we may be pardoned for interpolating certain capital considerations which closely affect the future of China and therefore cannot fail to be of public interest.
The Japanese, who owe their whole theocratic conception to the Chinese, just as they owe all their letters and their learning to them, still nominally look upon their ruler as the link between Heaven and Earth, and the central fact dominating their cosmogony. Although the vast number of well-educated men who to-day crowd the cities of Japan are fully conscious of the bizarre nature of this belief in an age which has turned its back on superstition, nothing has yet been done to modify it because—and this is the important point—the structure of Japanese society is such that without a violent upheaval which shall hurl the military clan system irremediably to the ground, it is absolutely impossible for human equality to be admitted and the man-god theory to be destroyed. So long as these two features exist; that is so long as a privileged military caste supports and attempts to make all- powerful the man-god theory, so long will Japan be an international danger-spot because there will lack those democratic restraints which this war has shown are absolutely essential to secure a peaceful understanding among the nations. It is for this reason that Japan will fail to attain the position the art-genius and industry of her people entitle her to and must limp behind the progress of the world unless a very radical revision of the constitution is achieved. The disabilities which arise from an archaic survival are so great that they will affect China as adversely as Japan, and therefore should be universally understood. Japanese history, if stripped of its superficial aspects, has a certain remarkable quality; it seems steeped in heroic blood. The doctrine of force, which expresses itself in its crudest forms in Europe, has always been in Japan a system of heroic-action so fascinating to humanity at large that until recent times its international significance has not been realized. The feudal organization of Japanese society which arose as a result of the armed conquest of the islands fifteen hundred years ago, precluded centralizating measures being taken because the Throne, relying on the virtues of Divine Ancestors rather than on any well-articulated political theory, was weak in all except certain quasi-sacerdotal qualities, and forced to rely on great chieftains for the execution of its mandates as well as for its defence. The military title of "barbarian-conquering general," which was first conferred on a great clan leader eight centuries ago, was a natural enough development when we remember that the autochthonous races were even then not yet pushed out of the main island, and were still battling with the advancing tide of Japanese civilization which was itself composed of several rival streams coming from the Asiatic mainland and from the Malayan archipelagoes. This armed settlement saturates Japanese history and is responsible for the unending local wars and the glorification of the warrior. The conception of triumphant generalship which Hideyoshi attempted unsuccessfully to carry into Korea in the Sixteenth Century, led directly at the beginning of the Seventeenth Century to the formal establishment of the Shogunate, that military dictatorship being the result of the backwash of the Korean adventure, and the greatest proof of the disturbance which it had brought in Japanese society. The persistence of this hereditary military dictatorship for more than two and a half centuries is a remarkable illustration of the fact that as in China so in Japan the theocratic conception was unworkable save in primitive times—civilization demanding organization rather than precepts and refusing to bow its head to speechless kings. Although the Restoration of 1868 nominally gave back to the Throne all it had been forced to leave in other hands since 1603, that transfer of power was imaginary rather than real, the new military organization which succeeded the Shogun's government being the vital portion of the Restoration. In other words, it was the leaders of Japan's conscript armies who inherited the real power, a fact made amply evident by the crushing of the Satsuma Rebellion by these new corps whose organization allowed them to overthrow the proudest and most valourous of the Samurai and incidentally to proclaim the triumph of modern fire-arms.
Now it is important to note that as early as 1874—that is six years after the Restoration of the Emperor Meiji—these facts were attracting the widest notice in Japanese society, the agitation for a Constitution and a popular assembly being very vigourously pushed. Led by the well-known and aristocratic Itagaki, Japanese Liberalism had joined battle with out-and-out Imperialism more than a quarter of a century ago; and although the question of recovering Tariff and Judicial autonomy and revising the Foreign Treaties was more urgent in those days, the foreign question was often pushed aside by the fierceness of the constitutional agitation.
It was not, however, until 1889 that a Constitution was finally granted to the Japanese—that instrument being a gift from the Crown, and nothing more than a conditional warrant to a limited number of men to become witnesses of the processes of government but in no sense its controllers. The very first Diet summoned in 1890 was sufficient proof of that. A collision at once occurred over questions of finance which resulted in the resignation of the Ministry. And ever since those days, that is for twenty-seven consecutive years, successive Diets in Japan have been fighting a forlorn fight for the power which can never be theirs save by revolution, it being only natural that Socialism should come to be looked upon by the governing class as Nihilism, whilst the mob- threat has been very acute ever since the Tokio peace riots of 1905.
Now it is characteristic of the ceremonial respect which all Japanese have for the Throne that all through this long contest the main issue should have been purposely obscured. The traditional feelings of veneration which a loyal and obedient people feel for a line of monarchs, whose origin is lost in the mists of antiquity, are such that they have turned what is in effect an evergrowing struggle against the archaic principle of divine right into a contest with clan-leaders whom they assert are acting "unconstitutionally" whenever they choose to assert the undeniable principles of the Constitution. Thus to-day we have this paradoxical situation: that although Japanese Liberalism must from its very essence be revolutionary, i.e., destructive before it can hope to be constructive, it feigns blindness, hoping that by suasion rather than by force the principle of parliamentary government will somehow be grafted on to the body politic and the emperors, being left outside the controversy, become content to accept a greatly modified rule.
This hope seems a vain one in the light of all history. Militarism and the clans are by no means in the last ditch in Japan, and they will no more surrender their power than would the Russian bureaucracy. The only argument which is convincing in such a case is the last one which is ever used; and the mere mention of it by so-called socialists is sufficient to cause summary arrest in Japan. Sheltering themselves behind the Throne, and nominally deriving their latter-day dictatorship from the Imperial mandate, the military chiefs remain adamant, nothing having yet occurred to incline them to surrender any of their privileges. By a process of adaptation to present-day conditions, a formula has now been discovered which it is hoped will serve many a long year. By securing by extra-legal means the return of a "majority" in the House of Representatives the fiction of national support of the autocracy has been re-invigourated, and the doctrine laid down that what is good for every other advanced people in the world is bad for the Japanese, who must be content with what is granted them and never question the superior intelligence of a privileged caste. In the opinion of the writer, it is every whit as important for the peace of the world that the people of Japan should govern themselves as it is for the people of Germany to do so. The persistence of the type of military government which we see to-day in Japan is harmful for all alike because it is as antiquated as Tsarism and a perpetual menace to a disarmed nation such as China. So long as that government remains, so long must Japan remain an international suspect and be denied equal rights in the council- chambers of the Liberal Powers.
If the situation which arose on the 15th August, 1914, is to be thoroughly understood, it is necessary to pick up threads of Chino-Japanese relations from a good many years back. First-hand familiarity with the actors and the scenes of at least three decades is essential to give the picture the completeness, the brilliancy of colouring, and withal the suggestiveness inseparable from all true works of art. For the Chino-Japanese question is primarily a work of art and not merely a piece of jejune diplomacy stretched across the years. As the shuttle of Fate has been cast swiftly backwards and forwards, the threads of these entwining relations have been woven into patterns involving the whole Far East, until to-day we have as it were a complete Gobelin tapestry, magnificent with meaning, replete with action, and full of scholastic interest.
Let us follow some of the tracery. It has long been the habit to affirm that the conflict between China and Japan had its origin in Korea, when Korea was a vassal state acknowledging the suzerainty of Peking; and that the conflict merited ending there, since of the two protagonists contending for empire Japan was left in undisputed mastery. This statement, being incomplete, is dangerously false. Dating from that vital period of thirty years ago, when Yuan Shih-kai first went to Seoul as a general officer in the train of the Chinese Imperial Resident (on China being forced to take action in protection of her interests owing to the "opening" of Korea by the American Treaty of 1882) three contestants, equally interested in the balance of land-power in Eastern Asia were constantly pitted against one another with Korea as their common battling-ground—Russia, China and Japan. The struggle, which ended in the eclipse of the first two, merely shifted the venue from the Korean zone to the Manchurian zone; and from thence gradually extended it further and further afield until at last not only was Inner Mongolia and the vast belt of country fronting the Great Wall embraced within its scope, but the entire aspect of China itself was changed. For these important facts have to be noted. Until the Russian war of 1904-05 had demonstrated the utter valuelessness of Tsarism as an international military factor, Japan had been almost willing to resign herself to a subordinate role in the Far East. Having eaten bitter bread as the result of her premature attempt in 1895 (after the Korean war) to become a continental power—an attempt which had resulted in the forced retrocession of the Liaotung Peninsula—she had been placed on her good behaviour, an attitude which was admirably reflected in 1900 when her Peking Expeditionary Force proved itself so well- behaved and so gallant as to arouse the world's admiration. But the war with Russia and the collapse of the Tsar's Manchurian adventure not only drew her back into territory that she never hoped to see again, but placed her in possession of a ready-made railway system which carried her almost up to the Sungari river and surrendered to her military control vast grasslands stretching to the Khingan mountains. This Westernly march so greatly enlarged the Japanese political horizon, and so entirely changed the Japanese viewpoint, that the statesmen of Tokio in their excitement threw off their ancient spectacles and found to their astonishment that their eyes were every whit as good as European eyes. Now seeing the world as others had long seen it, they understood that just as with the individuals so with nations the struggle for existence can most easily be conducted by adopting that war-principle of Clausewitz—the restless offensive, and not by writing meaningless dispatches. Prior to the Russian war they had written to Russia a magnificent series of documents in which they had pleaded with sincerity for an equitable settlement,— only to find that all was in vain. Forced to battle, they had found in combat not only success but a new principle.
The discovery necessitated a new policy. During the eighties, and in a lesser degree in the nineties, Japan had apart from everything else been content to act in a modest and retiring way, because she wished at all costs to avoid testing too severely her immature strength. But owing to the successive collapses of her rivals, she now found herself not only forced to attack as the safest course of action, but driven to the view that the Power that exerts the maximum pressure constantly and unremittedly is inevitably the most successful. This conclusion had great importance. For just as the first article of faith for England in Asia has been the doctrine that no Power can be permitted to seize strategic harbours which menace her sea-communications, so did it now become equally true of Japan that her dominant policy became not an Eastern Monroe doctrine, as shallow men have supposed, but simply the Doctrine of Maximum Pressure. To press with all her strength on China was henceforth considered vital by every Japanese; and it's in this spirit that every diplomatic pattern has been woven since the die was cast in 1905. Until this signal fact has been grasped no useful analysis can be made of the evolution of present conditions. Standing behind this policy, and constantly reinforcing it, are the serried ranks of the new democracy which education and the great increase in material prosperity have been so rapidly creating. The soaring ambition which springs from the sea lends to the attacks developed by such a people the aspect of piracies; and it is but natural in such circumstances that for Chinese Japan should not only have the aspect of a sea-monster but that their country should appear as hapless Andromeda bound to a rock, always awaiting a Perseus who never comes. …
The Revolution of 1911 had been entirely unexpected in Japan. Whilst large outbreaks had been certainly counted on since the Chinese Revolutionary party had for years used Japan as an asylum and a base of operations, never had it been anticipated that the fall of an ancient Dynasty could be so easily encompassed. Consequently, the abdication of the Manchus as the result of intrigues rather than of warfare was looked upon as little short of a catastrophe because it hopelessly complicated the outlook, broke the pattern which had been so carefully woven for so many years, and interjected harsh elements which could not be assigned an orderly place. Not only was a well-articulated State-system suddenly consigned to the flames, but the ruin threatened to be so general that the balance of power throughout the Far East would be twisted out of shape. Japanese statesmen had desired a weak China, a China which would ultimately turn to them for assistance because they were a kindred race, but not a China that looked to the French Revolution for its inspiration. To a people as slow to adjust themselves to violent surprises as are the Japanese, there was an air of desperation about the whole business which greatly alarmed them, and made them determined at the earliest possible moment to throw every ounce of their weight in the direction which would best serve them by bringing matters back to their original starting-point. For this reason they were not only prepared in theory in 1911 to lend armed assistance to the Manchus but would have speedily done so had not England strongly dissented from such a course of action when she was privately sounded about the matter. Even to-day, when a temporary adjustment of Japanese policy has been successfully arranged, it is of the highest importance for political students to remember that the dynastic influences in Tokio have never departed from the view that the legitimate sovereignty of China remains vested in the Manchu House and that everything that has taken place since 1911 is irregular and unconstitutional.
For the time being, however, two dissimilar circumstances demanded caution: first, the enthusiasm which the Japanese democracy, fed by a highly excited press, exhibited towards the Young China which had been so largely grounded in the Tokio schools and which had carried out the Revolution: secondly—and far more important—the deep, abiding and ineradicable animosity which Japanese of all classes felt for the man who had come out of the contest head and shoulders above everybody else—Yuan Shih-kai. These two remarkable features ended by completely thrusting into the background during the period 1911-1914 every other element in Japanese statesmanship; and of the two the second must be counted the decisive one. Dating back to Korea, when Yuan Shih-kai's extraordinary diplomatic talents constantly allowed him to worst his Japanese rivals and to make Chinese counsels supreme at the Korean Court up to the very moment when the first shots of the war of 1894 were fired, this ancient dislike, which amounted to a consuming hatred, had become a fixed idea. Restrained by the world's opinion during the period prior to the outbreak of the world-war as well as by the necessity of acting financially in concert with the other Powers, it was not until August, 1914, that the longed-for opportunity came and that Japan prepared to act in a most remarkable way.
The campaign against Kiaochow was unpopular from the outset among the Japanese public because it was felt that they were not legitimately called upon to interest themselves in such a remote question as the balance of power among European nations, which was what British warfare against Germany seemed to them to be. Though some ill-will was felt against Germany for the part played by her in the intervention of 1895, it must not be forgotten that just as the Japanese navy is the child of the British navy, so is the Japanese army the child of the German army—and that Japanese army chiefs largely control Japan. These men were averse from "spoiling their army" in a contest which did not interest them. There was also the feeling abroad that England by calling upon her Ally to carry out the essential provisions of her Alliance had shown that she had the better part of a bargain, and that she was exploiting an old advantage in a way which could not fail to react adversely on Japan's future world's relationships. Furthermore, it is necessary to underline the fact that official Japan was displeased by the tacit support an uninterested British Foreign Office had consistently given to the Yuan Shih-kai regime. That the Chinese experiment was looked upon in England more with amusement than with concern irritated the Japanese—more particularly as the British Foreign Office was issuing in the form of White Papers documents covering Yuan Shih-kai's public declarations as if they were contributions to contemporary history. Thus in the preceding year (1913) under the nomenclature of "affairs in China" the text of a dementi regarding the President of China's Imperial aspirations had been published,—a document which Japanese had classified as a studied lie, and as an act of presumption because its wording showed that its author intended to keep his back turned on Japan. The Dictator had declared:—
… "From my student days, I, Yuan Shih-kai, have admired the example of the Emperors Yao and Shun, who treated the empire as a public trust, and considered that the record of a dynasty in history for good or ill is inseparably bound up with the public spirit or self-seeking by which it has been animated. On attaining middle age I grew more familiar with foreign affairs, was struck by the admirable republican system in France and America, and felt that they were a true embodiment of the democratic precepts of the ancients. When last year the patriotic crusade started in Wuchang its echoes went forth into all the provinces, with the result that this ancient nation with its 2,000 years of despotism adopted with one bound the republican system of government.
It was my good fortune to see this glorious day at my life's late eve; I cherished the hope that I might dwell in the seclusion of my own home and participate in the blessings of an age of peace.
But once again my fellow-countrymen honoured me with the pressing request that I should again assume a heavy burden, and on the day on which the Republic was proclaimed I announced it the whole nation that never again should a monarchy be permitted in China. At my inauguration I again took this solemn oath in the sight of heaven above and earth beneath. Yet of late ignorant persons in the provinces have fabricated wild rumours to delude men's minds, and have adduced the career of the First Napoleon on which to base their erroneous speculations. It is best not to inquire as to their motives; in some cases misconception may be the cause, in others deliberate malice.
The Republic has now been proclaimed for six months; so far there is no prospect of recognition from the Powers, while order is far from being restored in the provinces. Our fate hangs upon a hair; the slightest negligence may forfeit all. I, who bear this arduous responsibility, feel it my bounden duty to stand at the helm in the hope of successfully breasting the wild waves.
But while those in office are striving with all their might to effect a satisfactory solution, spectators seem to find a difficulty in maintaining a generous forbearance. They forget that I, who have received this charge from my countrymen, cannot possibly look dispassionately on when the fate of the nation is in the balance. If I were aware that the task was impossible and played a part of easy acquiescence, so that the future of the Republic might become irreparable, others might not reproach me, but my own conscience would never leave me alone.
My thoughts are manifest in the sight of high heaven. But at this season of construction and dire crisis how shall these mutual suspicions find a place? Once more I issue this announcement; if you, my fellow countrymen, do indeed place the safety of China before all other considerations, it behooves you to be large- minded. Beware of lightly heeding the plausible voice of calumny, and of thus furnishing a medium for fostering anarchy. If evilly disposed persons, who are bent on destruction, seize the excuse for sowing dissension to the jeopardy of the situation, I, Yuan Shih-kai, shall follow the behest of my fellow-countrymen in placing such men beyond the pale of humanity.
A vital issue is involved. It is my duty to lay before you my inmost thought, so that suspicion may be dissipated. Those who know have the right to impose their censure. It is for public opinion to take due notice."
Moreover Yuan Shih-kai had also shown in his selection and use of foreign Advisers, that he was determined to proceed in such a manner as to advertise his suspicion and enmity of Japan. After the Coup d'etat of the 4th November, 1913, and the scattering of Parliament, it was an American Adviser who was set to work on the new "Constitution"; and although a Japanese, Dr. Ariga, who was in receipt of a princely salary, aided and abetted this work, his endorsement of the dictatorial rule was looked upon as traitorous by the bulk of his countrymen. Similarly, it was perfectly well- known that Yuan Shih-kai was spending large sums of money in Tokio in bribing certain organs of the Japanese Press and in attempting to win adherents among Japanese members of Parliament. Remarkable stories are current which compromise very highly-placed Japanese but which the writer hesitates to set down in black and white as documentary proof is not available. In any case, be this as it may, it was felt in Tokio that the time had arrived to give a proper definition to the relations between the two states,—the more so as Yuan Shih-kai, by publicly proclaiming a small war-zone in Shantung within the limits of which the Japanese were alone permitted to wage war against the Germans, had shown himself indifferent to the majesty of Japan. The Japanese having captured Kiaochow by assault before the end of 1914 decided to accept the view that a de facto Dictatorship existed in China. Therefore on the 18th of January, 1915, the Japanese Minister, Dr. Hioki, personally served on Yuan Shih-kai the now famous Twenty-one Demands, a list designed to satisfy every present and future need of Japanese policy and to reduce China to a state of vassalage.
Although the press of the world gave a certain prominence at the time to the astounding demarche with which we now have to deal, there was such persistent mystery about the matter and so many official dementis accompanied every publication of the facts that even to this day the nature of the assault which Japan delivered on China is not adequately realized, nor is the narrow escape assigned its proper place in estimates of the future. Briefly, had there not been publication of the facts and had not British diplomacy been aroused to action there is little doubt that Japan would have forced matters so far that Chinese independence would now be virtually a thing of the past. Fortunately, however, China in her hour of need found many who were willing to succour her; with the result that although she lost something in these negotiations, Japan nevertheless failed in a very signal fashion to attain her main objective. The Pyrrhic victory which she won with her eleventh hour ultimatum will indeed in the end cost her more than would have a complete failure, for Chinese suspicion and hostility are now so deep-seated that nothing will ever completely eradicate them. It is therefore only proper that an accurate record should be here incorporated of a chapter of history which has much international importance; and if we invite close attention to the mass of documents that follow it is because we hold that an adequate comprehension of them is essential to securing the future peace of the Far East. Let us first give the official text of the original Demands:
Translations of Documents Handed to the President, Yuan shih-kai, by Mr. Hioki, the Japanese Minister, on January 18th, 1915.
The Japanese Government and the Chinese Government being desirous of maintaining the general peace in Eastern Asia and further strengthening the friendly relations and good neighbourhood existing between the two nations agree to the following articles:—
Article 1. The Chinese Government engages to give full assent to all matters upon which the Japanese Government may hereafter agree with the German Government relating to the disposition of all rights, interests and concessions, which Germany, by virtue of treaties or otherwise, possesses in relation to the Province of Shantung.
Article 2. The Chinese Government engages that within the Province of Shantung and along its coast no territory or island will be ceded or leased to a third Power under any pretext.
Article 3. The Chinese Government consents to Japan's building a railway from Chefoo or Lungkow to join the Kiaochou-Tsinanfu railway.
Article 4. The Chinese Government engages, in the interest of trade and for the residence of foreigners, to open by herself as soon as possible certain important cities and towns in the Province of Shantung as Commercial Ports. What places shall be opened are to be jointly decided upon in a separate agreement.
The Japanese Government and the Chinese Government, since the Chinese Government has always acknowledged the special position enjoyed by Japan in South Manchuria and Eastern Inner Mongolia, agree to the following articles:—
Article 1. The two Contracting Parties mutually agree that the term of lease of Port Arthur and Dalny and the term of lease of the South Manchurian Railway and the Antung-Mukden Railway shall be extended to the period of 99 years.
Article 2. Japanese subjects in South Manchuria and Eastern Inner Mongolia shall have the right to lease or own land required either for erecting suitable buildings for trade and manufacture or for farming.
Article 3. Japanese subjects shall be free to reside and travel in South Manchuria and Eastern Inner Mongolia and to engage in business and in manufacture of any kind whatsoever.
Article 4. The Chinese Government agrees to grant to Japanese subjects the right of opening the mines in South Manchuria and Eastern Inner Mongolia. As regards what mines are to be opened, they shall be decided upon jointly.
Article 5. The Chinese Government agrees that in respect of the (two) cases mentioned herein below the Japanese Government's consent shall be first obtained before action is taken:—
(a) Whenever permission is granted to the subject of a third Power to build a railway or to make a loan with a third Power for the purpose of building a railway in South Manchuria and Eastern Inner Mongolia.
(b) Whenever a loan is to be made with a third Power pledging the local taxes of South Manchuria and Eastern Inner Mongolia as security.
Article 6. The Chinese Government agrees that if the ChineseGovernment employs political, financial or military advisers orinstructors in South Manchuria or Eastern Inner Mongolia, theJapanese Government shall first be consulted.
Article 7. The Chinese Government agrees that the control and management of the Kirin-Changchun Railway shall be handed over to the Japanese Government for a term of 99 years dating from the signing of this Agreement.
The Japanese Government and the Chinese Government, seeing that Japanese financiers and the Hanyehping Co. have dose relations with each other at present and desiring that the common interests of the two nations shall be advanced, agree to the following articles:—
Article 1. The two Contracting Parties mutually agree that when the opportune moment arrives the Hanyehping Company shall be made a joint concern of the two nations and they further agree that without the previous consent of Japan, China shall not by her own act dispose of the rights and property of whatsoever nature of the said Company nor cause the said Company to dispose freely of the same.
Article 2. The Chinese Government agrees that all mines in the neighbourhood of those owned by the Hanyehping Company shall not be permitted, without the consent of the said Company, to be worked by other persons outside of the said Company; and further agrees that if it is desired to carry out any undertaking which, it is apprehended, may directly or indirectly affect the interests of the said Company, the consent of the said Company shall first be obtained.
The Japanese Government and the Chinese Government with the object of effectively preserving the territorial integrity of China agree to the following special articles:—
The Chinese Government engages not to cede or lease to a thirdPower any harbour or bay or island along the coast of China.
Article 1. The Chinese Central Government shall employ influentialJapanese advisers in political, financial and military affairs.
Article 2. Japanese hospitals, churches and schools in the interior of China shall be granted the right of owning land.
Article 3. Inasmuch as the Japanese Government and the Chinese Government have had many cases of dispute between Japanese and Chinese police to settle cases which caused no little misunderstanding, it is for this reason necessary that the police departments of important places (in China) shall be jointly administered by Japanese and Chinese or that the police departments of these places shall employ numerous Japanese, so that they may at the same time help to plan for the improvement of the Chinese Police Service.
Article 4. China shall purchase from Japan a fixed amount of munitions of war (say 50% or more) of what is needed by the Chinese Government or that there shall be established in China a Sino-Japanese jointly worked arsenal. Japanese technical experts are to be employed and Japanese material to be purchased.
Article 5. China agrees to grant to Japan the right of constructing a railway connecting Wuchang with Kiukiang and Nanchang, another line between Nanchang and Hanchow, and another between Nanchang and Chaochou.
Article 6. If China needs foreign capital to work mines, build railways and construct harbour-works (including dock-yards) in the Provinces of Fukien, Japan shall be first consulted.
Article 7. China agrees that Japanese subjects shall have the right of missionary propaganda in China. [Footnote: Refers to preaching Buddhism.]
The five groups into which the Japanese divided their demands possess a remarkable interest not because of their sequence, or the style of their phraseology, but because every word reveals a peculiar and very illuminating chemistry of the soul. To study the original Chinese text is to pass as it were into the secret recesses of the Japanese brain, and to find in that darkened chamber a whole world of things which advertise ambitions mixed with limitations, hesitations overwhelmed by audacities, greatnesses succumbing to littlenesses, and vanities having the appearance of velleities. Given an intimate knowledge of Far Eastern politics and Far Eastern languages, only a few minutes are required to re-write the demands in the sequence in which they were originally conceived as well as to trace the natural history of their genesis. Unfortunately a great deal is lost in their official translation, and the menace revealed in the Chinese original partly cloaked: for by transferring Eastern thoughts into Western moulds, things that are like nails in the hands of soft sensitive Oriental beings are made to appear to the steel-clad West as cold-blooded, evolutionary necessities which may be repellent but which are never cruel. The more the matter is studied the more convinced must the political student be that in this affair of the 18th January we have an international coup destined to become classic in the new text-books of political science. All the way through the twenty-one articles it is easy to see the desire for action, the love of accomplished facts, struggling with the necessity to observe the conventions of a stereotyped diplomacy and often overwhelming those conventions. As the thoughts thicken and the plot develops, the effort to mask the real intention lying behind every word plainly breaks down, and a growing exultation rings louder and louder as if the coveted Chinese prize were already firmly grasped. One sees as it were the Japanese nation, released from bondage imposed by the Treaties which have been binding on all nations since 1860, swarming madly through the breached walls of ancient Cathay and disputing hotly the spoils of age-old domains.
Group I, which deals with the fruits of victory in Shantung, has little to detain us since events which have just unrolled there have already told the story of those demands. In Shantung we have a simple and easily-understood repeated performance of the history of 1905 and the settlement of the Russo-Japanese War. Placed at the very head of the list of demands, though its legitimate position should be after Manchuria, obviously the purpose of Group I is conspicuously to call attention to the fact that Japan had been at war with Germany, and is still at war with her. This flourish of trumpets, after the battle is over, however, scarcely serves to disguise that the fate of Shantung, following so hard on the heels of the Russian debacle in Manchuria, is the great moral which Western peoples are called upon to note. Japan, determined as she has repeatedly announced to preserve the peace of the Orient by any means she deems necessary, has found the one and only formula that is satisfactory—that of methodically annexing everything worth fighting about.
So far so good. The insertion of a special preamble to Group II, which covers not only South Manchuria but Eastern Inner Mongolia as well, is an ingenious piece of work since it shows that the hot mood of conquest suitable for Shantung must be exchanged for a certain judicial detachment. The preamble undoubtedly betrays the guiding hand of Viscount Kato, the then astute Minister of Foreign Affairs, who saturated in the great series of international undertakings made by Japan since the first Anglo-Japanese Treaty of 1902, clearly believes that the stately Elizabethan manner which still characterizes British official phrasing is an admirable method to be here employed. The preamble is quite English; it is so English that one is almost lulled into believing that one's previous reasoning has been at fault and that Japan is only demanding what she is entitled to. Yet study Group II closely and subtleties gradually emerge. By boldly and categorically placing Eastern Inner Mongolia on precisely the same footing as Southern Manchuria—though they have nothing in common—the assumption is made that the collapse in 1908 of the great Anglo- American scheme to run a neutral railway up the flank of Southern Manchuria to Northern Manchuria (the once celebrated Chinchow- Aigun scheme), coupled with general agreement with Russia which was then arrived at, now impose upon China the necessity of publicly resigning herself to a Japanese overlordship of that region. In other words, the preamble of Group II lays down that Eastern Inner Mongolia has become part and parcel of the Manchurian Question because Japan has found a parallel for what she is doing in the acts of European Powers.
These things, however, need not detain us. Not that Manchuria or the adjoining Mongolian plain is not important; not that the threads of destiny are not woven thickly there. For it is certain that the vast region immediately beyond the Great Wall of China is the Flanders of the Far East—and that the next inevitable war which will destroy China or make her something of a nation must be fought on that soil just as two other wars have been fought there during the past twenty years. But this does not belong to contemporary politics; it is possibly an affair of the Chinese army of 1925 or 1935. Some day China will fight for Manchuria, if it is impossible to recover it in any other way,—nobody need doubt that. For Manchuria is absolutely Chinese—people must remember. No matter how far the town-dwelling Japanese may invade the country during the next two or three decades, no matter what large alien garrisons may be planted there, the Chinese must and will remain the dominant racial element, since their population which already numbers twenty-five millions is growing at the rate of half a million a year, and in a few decades will equal the population of a first-class European Power.
When we reach Group III we touch matters that are not only immediately vital but quite new in their type of audacity and which every one can to-day understand since they are politico- industrial. Group III, as it stands in the original text, is SIMPLY THE PLAN FOR THE CONQUEST OF THE MINERAL WEALTH OF THE YANGTSZE VALLEY which mainly centres round Hankow because the vast alluvial plains of the lower reaches of this greatest of rivers were once the floor of the Yellow Sea, the upper provinces of Hupeh, Hunan, Kiangsi being the region of prehistoric forests clothing the coasts, which once looked down upon the slowly- receding waste of waters, and which to-day contain all the coal and iron. Hitherto every one has always believed that the Yang tsze Valley was par excellence the British sphere in China; and every one has always thought that that belief was enough. It is true that political students, going carefully over all published documents, have ended their search by declaring that the matter certainly required further elucidation. To be precise, this so- called British sphere is not an enclave at all in the proper sense; indeed it can only seem one to those who still believe that it is still possible to pre-empt provinces by ministerial declarations. The Japanese have been the first to dare to say that the preconceived general belief was stupid. They know, of course, that it was a British force which invaded the Yangtsze Valley seventy-five years ago, and forced the signature of the Treaty of Nanking which first opened China to the world's trade; but they are by no means impressed with the rights which that action has been held to confer, since the mineral resources of this region are priceless in their eyes and must somehow be won.
The study of twenty years of history proves this assumption to be correct. Ever since 1895, Japan has been driving wedges into the Yangtsze Valley of a peculiar kind to form the foundations for her sweeping claims of 1915. Thus after the war with China in 1894-95, she opened by her Treaty of Peace four ports in the Yangtsze Valley region, Soochow, Hangchow, Chungking and Shasi; that is, at the two extreme ends of the valley she established politico- commercial points d'appui from which to direct her campaign. Whilst the proximity of Soochow and Hangchow to the British stronghold of Shanghai made it difficult to carry out any "penetration" work at the lower end of the river save in the form of subsidized steam-shipping, the case was different in Hunan and Hupeh provinces. There she was unendingly busy, and in 1903 by a fresh treaty she formally opened to trade Changsha, the capital of the turbulent Hunan province. Changsha for years remained a secret centre possessing the greatest political importance for her, and serving as a focus for most varied activities involving Hunan, Hupeh, and Kiangsi, as well as a vast hinterland. The great Tayeh iron-mines, although entirely Chinese-owned, were already being tapped to supply iron-ore for the Japanese Government Foundry at Wakamatsu on the island of Kiushiu. The rich coal mines of Pinghsiang, being conveniently near, supplied the great Chinese Government arsenal of Hanyang with fuel; and since Japan had very little coal or iron of her own, she decided that it would be best to embrace as soon as possible the whole area of interests in one categorical demand—that is to claim a dominant share in the Hanyang arsenal, the Tayeh iron-mines and the Ping-hsiang collieries. [Footnote: The reader will observe, that the expression "Hanyehping enterprises" is compounded by linking together characters denoting the triple industry.] By lending money to these enterprises, which were grouped together under the name of Hanyehping, she had early established a claim on them which she turned at the psychological moment into an international question.
We can pass quickly by Group IV which is of little importance, except to say that in taking upon herself, without consultation with the senior ally, the duty of asking from China a declaration concerning the future non-leasing of harbours and islands, Japan has attempted to assume a protectorship of Chinese territory which does not belong to her historically. It is well also to note that although Japan wished it to appear to the world that this action was dictated by her desire to prevent Germany from acquiring a fresh foothold in China after the war, in reality Group IV was drafted as a general warning to the nations, one point being that she believed that the United States was contemplating the reorganization of the Foochow Arsenal in Fuhkien province, and that as a corollary to that reorganization would be given the lease of an adjoining harbour such as Santuao.
It is not, however, until we reach Group V that the real purpose of the Japanese demands becomes unalterably clear, for in this Group we have seven sketches of things designed to serve as the coup de grace. Not only is a new sphere—Fuhkien province— indicated; not only is the mid-Yangtsze, from the vicinity of Kiukiang, to serve as the terminus for a system of Japanese railways, radiating from the great river to the coasts of South China; but the gleaming knife of the Japanese surgeon is to aid the Japanese teacher in the great work of propaganda; the Japanese monk and the Japanese policeman are to be dispersed like skirmishers throughout the land; Japanese arsenals are to supply all the necessary arms, or failing that a special Japanese arsenal is to be established; Japanese advisers are to give the necessary advice in finance, in politics, in every department—foreshadowing a complete and all embracing political control. Never was a more sweeping program of supervision presented, and small wonder if Chinese when they learnt of this climax exclaimed that the fate of Korea was to be their own. For a number of weeks after the presentation of these demands everything remained clothed in impenetrable mystery, and despite every effort on the part of diplomatists reliable details of what was occurring could not be obtained. Gradually, however, the admission was forced that the secrecy being preserved was due to the Japanese threat that publicity would be met with the harshest reprisals; and presently the veil was entirely lifted by newspaper publication and foreign Ambassadors began making inquiries in Tokio. The nature and scope of the Twenty-one Demands could now be no longer hidden; and in response to the growing indignation which began to be voiced by the press and the pressure which British diplomacy brought to bear, Japan found it necessary to modify some of the most important items. She had held twenty-four meetings at the Chinese Foreign Office, and although the Chinese negotiators had been forced to give way in such matters as extending the "leasing" periods of railways and territories in Manchuria and in admitting the Japanese right to succeed to all German interests and rights in Shantung (Group I and II), in the essential matters of the Hanyehping concessions (Group III) and the noxious demands of Group V China had stood absolutely firm, declining even to discuss some of the items.
Accordingly Japanese diplomacy was forced to re-state and re-group the whole corpus of the demands. On the 26th April, acting under direct instructions from Tokio, the Japanese Minister to Peking presented a revised list for renewed consideration, the demands being expanded to twenty-four articles (in place of the original twenty-one largely because discussion had shown the necessity of breaking up into smaller units some of the original articles). Most significant, however, is the fact that Group V, (which in its original form was a more vicious assault on Chinese sovereignty than the Austrian Ultimatum to Serbia of June, 1914) was so remodelled as to convey a very different meaning, the group heading disappearing entirely and an innocent-looking exchange of notes being asked for. It is necessary to recall that, when taxed with making Demands which were entirely in conflict with the spirit of the Anglo-Japanese Alliance, the Japanese Government through its ambassadors abroad had categorically denied that they had ever laid any such Demands on the Chinese Government. It was claimed that there had never been twenty-one Demands, as the Chinese alleged, but only fourteen, the seven items of Group V being desiderata which it was in the interests of china to endorse but which Japan had no intention of forcing upon her. The writer, being acquainted from first to last with everything that took place in Peking from the 18th January to the filing of the Japanese ultimatum of the 7th May, has no hesitation in stigmatising this statement as false. The whole aim and object of these negotiations was to force through Group V. Japan would have gladly postponed sine die the discussion of all the other Groups had China assented to provisions which would have made her independence a thing of the past. Every Chinese knew that, in the main, Group V was simply a repetition of the measures undertaken in Korea after the Russo-Japanese war of 1905 as a forerunner to annexation; and although obviously in the case of China no such rapid surgery could be practised, the endorsement of these measures would have meant a virtual Japanese Protectorate. Even a cursory study of the text that follows will confirm in every particular these capital contentions:
Japan's Revised Demands on China, twenty-four in all, presentedApril 26, 1915.
[The revised list of articles is a Chinese translation of the Japanese text. It is hereby declared that when a final decision is reached, there shall be a revision of the wording of the text.]
The Japanese Government and the Chinese Government, being desirous of maintaining the general peace in Eastern Asia and further strengthening the friendly relations and good neighbourhood existing between the two nations, agree to the following articles:—
Article 1. The Chinese Government engages to give full assent to all matters upon which the Japanese Government may hereafter agree with the German Government, relating to the disposition of all rights, interests and concessions, which Germany, by virtue of treaties or otherwise, possesses in relation to the Province of Shangtung.
Article 2. (Changed into an exchange of notes.)
The Chinese Government declares that within the Province of Shantung and along its coast no territory or island will be ceded or leased to any Power under any pretext.
Article 3. The Chinese Government consents that as regards the railway to be built by China herself from Chefoo or Lung kow to connect with the Kiaochow-Tsinanfu Railway, if Germany is willing to abandon the privilege of financing the Chefoo-Weihsien line. China will approach Japanese capitalists to negotiate for a loan.
Article 4. The Chinese Government engages, in the interest of trade and for the residence of foreigners, to open by China herself as soon as possible certain suitable places in the Province of Shantung as Commercial Ports.
(Supplementary Exchange of Notes)
The places which ought to be opened are to be chosen and the regulations are to be drafted, by the Chinese Government, but the Japanese Minister must be consulted before making a decision.
The Japanese Government and the Chinese Government, with a view to developing their economic relations in South Manchuria and Eastern Inner Mongolia, agree to the following articles:—
Article 1. The two contracting Powers mutually agree that the term of lease of Port Arthur and Dalny and the terms of the South Manchuria Railway and the Antung-Mukden Railway shall be extended to 99 years.
(Supplementary Exchange of Notes)
The term of lease of Port Arthur and Dalny shall expire in the 86th year of the Republic or 1997. The date for restoring the South Manchurian Railway to China shall fall due in the 91st year of the Republic or 2002. Article 12 in the original South Manchurian Railway Agreement stating that it may be redeemed by China after 36 years after the traffic is opened is hereby cancelled. The term of the Antung-Mukden Railway shall expire in the 96th year of the Republic or 2007.
Article 2. Japanese subjects in South Manchuria may lease or purchase the necessary land for erecting suitable buildings for trade and manufacture or for prosecuting agricultural enterprises.
Article 3. Japanese subjects shall be free to reside and travel in South Manchuria and to engage in business and manufacture of any kind whatsoever.
Article 3a. The Japanese subjects referred to in the preceding two articles, besides being required to register with the local authorities pass-ports which they must procure under the existing regulations, shall also submit to police laws and ordinances and tax regulations, which are approved by the Japanese consul. Civil and criminal cases in which the defendants are Japanese shall be tried and adjudicated by the Japanese consul; those in which the defendants are Chinese shall be tried and adjudicated by Chinese Authorities. In either case an officer can be deputed to the court to attend the proceedings. But mixed civil cases between Chinese and Japanese relating to land shall be tried and adjudicated by delegates of both nations conjointly in accordance with Chinese law and local usage. When the judicial system in the said region is completely reformed, all civil and criminal cases concerning Japanese subjects shall be tried entirely by Chinese law courts.
Article 4. (Changed to an exchange of notes.)
The Chinese Government agrees that Japanese subjects shall be permitted forthwith to investigate, select, and then prospect for and open mines at the following places in South Manchuria, apart from those mining areas in which mines are being prospected for or worked; until the Mining Ordinance is definitely settled methods at present in force shall be followed.
Locality District Mineral
Niu Hsin T'ai Pen-hsi CoalTien Shih Fu Kou Pen-hsi CoalSha Sung Kang Hai-lung CoalT'ieh Ch'ang Tung-hua CoalNuan Ti Tang Chin CoalAn Shan Chan region From Liao-yangto Pen-hsi Iron
PROVINCE of KIRIN(Southern portion)
Sha Sung Kang Ho-lung Coal and IronKang Yao Chi-lin (Kirin) CoalChia P'i Kou Hua-tien Gold
Article 5. (Changed to an exchange of notes.) The Chinese Government declares that China will hereafter provide funds for building railways in South Manchuria; if foreign capital is required, the Chinese Government agrees to negotiate for the loan with Japanese capitalists first.
Article 5a. (Changed to an exchange of notes.) The Chinese Government agrees that hereafter, when a foreign loan is to be made on the security of the taxes of South Manchuria (not including customs and salt revenue on the security of which loans have already been made by the Central Government), it will negotiate for the loan with Japanese capitalists first.
Article 6. (Changed to an exchange of notes.) The Chinese Government declares that hereafter if foreign advisers or instructors on political, financial, military or police matters, are to be employed in South Manchuria, Japanese will be employed first.
Article 7. The Chinese Government agrees speedily to make a fundamental revision of the Kirin-Changchun Railway Loan Agreement, taking as a standard the provisions in railroad loan agreements made heretofore between China and foreign financiers. If, in future, more advantageous terms than those in existing railway loan agreements are granted to foreign financiers, in connection with railway loans, the above agreement shall again be revised in accordance with Japan's wishes.
All existing treaties between China and Japan relating toManchuria shall, except where otherwise provided for by thisConvention, remain in force.
1. The Chinese Government agrees that hereafter when a foreign loan is to be made on the security of the taxes of Eastern Inner Mongolia, China must negotiate with the Japanese Government first.
2. The Chinese Government agrees that China will herself provide funds for building the railways in Eastern Inner Mongolia; if foreign capital is required, she must negotiate with the Japanese Government first.
3. The Chinese Government agrees, in the interest of trade and for the residence of foreigners, to open by China herself, as soon as possible, certain suitable places in Eastern Inner Mongolia as Commercial Ports. The places which ought to be opened are to be chosen, and the regulations are to be drafted, by the Chinese Government, but the Japanese Minister must be consulted before making a decision.
4. In the event of Japanese and Chinese desiring jointly to undertake agricultural enterprises and industries incidental thereto, the Chinese Government shall give its permission.
The relations between Japan and the Hanyehping Company being very intimate, if those interested in the said Company come to an agreement with the Japanese capitalists for co-operation, the Chinese Government shall forthwith give its consent thereto. The Chinese Government further agrees that, without the consent of the Japanese capitalists, China will not convert the Company into a state enterprise, nor confiscate it, nor cause it to borrow and use foreign capital other than Japanese.
China to give a pronouncement by herself in accordance with the following principle:—
No bay, harbour, or island along the coast of China may be ceded or leased to any Power.
Notes to be Exchanged A
As regards the right of financing a railway from Wuchang to connect with the Kiu-kiang-Nanchang line, the Nanchang-Hangchow railway, and the Nanchang-Chaochow railway, if it is clearly ascertained that other Powers have no objection, China shall grant the said right to Japan.
As regards the rights of financing a railway from Wuchang to connect with the Kiu-kiang-Nanchang railway, a railway from Nanchang to Hangchow and another from Nanchang to Chaochow, the Chinese Government shall not grant the said right to any foreign Power before Japan comes to an understanding with the other Power which is heretofore interested therein.
The Chinese Government agrees that no nation whatever is to be permitted to construct, on the coast of Fukien Province, a dockyard, a coaling station for military use, or a naval base; not to be authorized to set up any other military establishment. The Chinese Government further agrees not to use foreign capital for setting up the above mentioned construction or establishment.
Mr. Lu, the Minister of Foreign Affairs, stated as follows:—
1. The Chinese Government, shall, whenever, in future, it considers this step necessary, engage numerous Japanese advisers.
2. Whenever, in future, Japanese subjects desire to lease or purchase land in the interior of China for establishing schools or hospitals, the Chinese Government shall forthwith give its consent thereto.
3. When a suitable opportunity arises in future, the Chinese Government will send military officers to Japan to negotiate with Japanese military authorities the matter of purchasing arms or that of establishing a joint arsenal.
Mr. Hioki, the Japanese Minister, stated as follows:—
As relates to the question of the right of missionary propaganda the same shall be taken up again for negotiation in future.
An ominous silence followed the delivery of this document. The Chinese Foreign Office had already exhausted itself in a discussion which had lasted three months, and pursuant to instructions from the Presidential Palace prepared an exhaustive Memorandum on the subject. It was understood by now that all the Foreign Offices in the world were interesting themselves very particularly in the matter; and that all were agreed that the situation which had so strangely developed was very serious. On the 1st May, proceeding by appointment to the Waichiaopu (Foreign Office) the Japanese Minister had read to him the following Memorandum which it is very necessary to grasp as it shows how solicitous China had become of terminating the business before there was an open international break. It will also be seen that this Memorandum was obviously composed for purpose of public record, the fifth group being dealt with in such a way as to fix upon Japan the guilt of having concealed from her British Ally matters which conflicted vitally with the aims and objects of the Anglo-Japanese Alliance Treaty.
Read by the Minister of Foreign Affairs to Mr. Hioki, the JapaneseMinister, at a Conference held at Wai Chiao Pu, May 1, 1915.
The list of demands which the Japanese Government first presented to the Chinese Government consists of five groups, the first relating to Shantung, the second relating to South Manchuria and Eastern Inner Mongolia, the third relating to Hanyehping Company, the fourth asking for non-alienation of the coast of the country, and the fifth relating to the questions of national advisers, national police, national arms, missionary propaganda, Yangtsze Valley railways, and Fukien Province. Out of profound regard for the intentions entertained by Japan, the Chinese Government took these momentous demands into grave and careful consideration and decided to negotiate with the Japanese Government frankly and sincerely what were possible to negotiate. This is a manifestation to Japan of the most profound regard which the Chinese Government entertains for the relations between the two nations.
Ever since the opening of the negotiations China has been doing her best to hasten their progress holding as many as three conferences a week. As regards the articles in the second group, the Chinese Government being disposed to allow the Japanese Government to develop the economic relations of the two countries in South Manchuria, realizing that the Japanese Government attaches importance to its interests in that region, and wishing to meet the hope of Japan, made a painful effort, without hesitation, to agree to the extension of the 25-year lease of Port Arthur and Dalny, the 36-year period of the South Manchurian Railway and the 15-year period of the Antung-Mukden Railway, all to 99 years; and to abandon its own cherished hopes to regain control of these places and properties at the expiration of their respective original terms of lease. It cannot but be admitted that this is a most genuine proof of China's friendship for Japan.
As to the right of opening mines in South Manchuria, the Chinese Government has already agreed to permit Japanese to work mines within the mining areas designated by Japan. China has further agreed to give Japan a right of preference in the event of borrowing foreign capital for building railways or of making a loan on the security of the local taxes in South Manchuria. The question of revising the arrangement for the Kirin-Changchun Railway has been settled in accordance with the proposal made by Japan. The Chinese Government has further agreed to employ Japanese first in the event of employing foreign advisers on political, military, financial and police matters.
Furthermore, the provision about the repurchase period in the South Manchurian Railway was not mentioned in Japan's original proposal. Subsequently, the Japanese Government alleging that its meaning was not clear, asked China to cancel the provision altogether. Again, Japan at first demanded the right of Japanese to carry on farming in South Manchuria, but subsequently she considered the word "farming" was not broad enough and asked to replace it with the phrase "agricultural enterprises." To these requests the Chinese Government, though well aware that the proposed changes could only benefit Japan, still acceded without delay. This, too, is a proof of China's frankness and sincerity towards Japan.
As regards matters relating to Shangtung the Chinese Government has agreed to a majority of the demands.
The question of inland residence in South Manchuria is, in the opinion of the Chinese Government, incompatible with the treaties China had entered into with Japan and other Powers, still the Chinese Government did its best to consider how it was possible to avoid that incompatibility. At first, China suggested that the Chinese Authorities should have full rights of jurisdiction over Japanese settlers. Japan declined to agree to it. Thereupon China reconsidered the question and revised her counter-proposal five or six times, each time making some definite concession, and went so far to agree that all civil and criminal cases between Chinese and Japanese should be arranged according to existing treaties. Only cases relating to land or lease contracts were reserved to be adjudicated by Chinese Courts, as a mark of China's sovereignty over the region. This is another proof of China's readiness to concede as much as possible.
Eastern Inner Mongolia is not an enlightened region as yet and the conditions existing there are entirely different from those prevailing in South Manchuria. The two places, therefore, cannot be considered in the same light. Accordingly, China agreed to open commercial marts first, in the interests of foreign trade.
The Hanyehping Company mentioned in the third group is entirely a private company, and the Chinese Government is precluded from interfering with it and negotiating with another government to make any disposal of the same as the Government likes, but having regard for the interests of the Japanese capitalists, the Chinese Government agreed that whenever, in future, the said company and the Japanese capitalists should arrive at a satisfactory arrangement for co-operation, China will give her assent thereto. Thus the interests of the Japanese capitalists are amply safeguarded.
Although the demand in the fourth group asking for a declaration not to alienate China's coast is an infringement of her sovereign rights, yet the Chinese Government offered to make a voluntary pronouncement so far as it comports with China's sovereign rights. Thus, it is seen that the Chinese Government, in deference to the wishes of Japan, gave a most serious consideration even to those demands, which gravely affect the sovereignty and territorial rights of China as well as the principle of equal opportunity and the treaties with foreign Powers. All this was a painful effort on the part of the Chinese Government to meet the situation—a fact of which the Japanese Government must be aware.
As regards the demands in the fifth group, they all infringe China's sovereignty, the treaty rights of other Powers or the principle of equal opportunity. Although Japan did not indicate any difference between this group and the preceding four in the list which she presented to China in respect to their character, the Chinese Government, in view of their palpably objectionable features, persuaded itself that these could not have been intended by Japan as anything other than Japan's mere advice to China. Accordingly China has declared from the very beginning that while she entertains the most profound regard for Japan's wishes, she was unable to admit that any of these matters could be made the subject of an understanding with Japan. Much as she desired to pay regard to Japan's wishes, China cannot but respect her own sovereign rights and the existing treaties with other Powers. In order to be rid of the seed for future misunderstanding and to strengthen the basis of friendship, China was constrained to iterate the reasons for refusing to negotiate on any of the articles in the fifth group, yet in view of Japan's wishes China has expressed her readiness to state that no foreign money was borrowed to construct harbour work in Fukien Province. Thus it is clear that China went so far as to see a solution for Japan of a question that really did not admit of negotiation. Was there, then, evasion, on the part of China?
Now, since the Japanese Government has presented a revised list of demands and declared at the same time, that it will restore the leased territory of Kiaochow, the Chinese Government reconsiders the whole question and herewith submits a new reply to the friendly Japanese Government.
In this reply the unsettled articles in the first group are stated again for discussion.
As regards the second group, those articles which have already been initialled are omitted. In connection with the question of inland residence the police regulation clause has been revised in a more restrictive sense. As for the trial of cases relating to land and lease contracts the Chinese Government now permits the Japanese Consul to send an officer to attend the proceedings.
Of the four demands in connection with that part of Eastern Inner Mongolia which is within the jurisdiction of South Manchuria and the Jehol intendency, China agrees to three.
China, also, agrees to the article relating to the HanyehpingCompany as revised by Japan.
It is hoped that the Japanese Government will appreciate the conciliatory spirit of the Chinese Government in making this final concession and forthwith give her assent thereto.