This is a modern-English version of China, Japan and the U.S.A.: Present-Day Conditions in the Far East and Their Bearing on the Washington Conference, originally written by Dewey, John. It has been thoroughly updated, including changes to sentence structure, words, spelling, and grammar—to ensure clarity for contemporary readers, while preserving the original spirit and nuance. If you click on a paragraph, you will see the original text that we modified, and you can toggle between the two versions.

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CHINA, JAPAN
AND THE
AND THE
U. S. A.

Present-day Conditions
in the Far East
and Their Bearing on
the Washington
Conference

Present-Day Conditions
in the Far East
and Their Impact on
the Washington
Conference

New Republic Pamphlet No. 1

New Republic Pamphlet #1

Published by the
REPUBLIC PUBLISHING CO., INC.
421 West Twenty-first Street
New York City
1921

Published by the
REPUBLIC PUBLISHING COMPANY, INC.
421 West 21st Street
NYC
1921

 

CHINA, JAPAN and the U. S. A.

China, Japan, and the U.S.

Introductory Note

Intro Note

The articles following are reprinted as they were written in spite of the fact that any picture of contemporary events is modified by subsequent increase of knowledge and by later events. In the main, however, the writer would still stand by what was said at the time. A few foot notes have been inserted where the text is likely to give rise to misapprehensions. The date of writing has been retained as a guide to the reader.

The following articles are reprinted exactly as they were written, even though any depiction of current events is affected by later insights and occurrences. Overall, the author still supports what was said at that time. A few footnotes have been added where the text might lead to misunderstandings. The original writing date has been kept to guide the reader.

I
On Two Sides of the Eastern Seas

It is three days’ easy journey from Japan to China. It is doubtful whether anywhere in the world another journey of the same length brings with it such a complete change of political temper and belief. Certainly it is greater than the alteration perceived in journeying directly from San Francisco to Shanghai. The difference is not one in customs and modes of life; that goes without saying. It concerns the ideas, beliefs and alleged information current about one and the same fact: the status of Japan in the international world and especially its attitude toward China. One finds everywhere in Japan a feeling of uncertainty, hesitation, even of weakness. There is a subtle nervous tension in the atmosphere as of a country on the verge of change but not knowing where the change will take it. Liberalism is in the air, but genuine liberals are encompassed with all sorts of difficulties especially in combining their liberalism with the devotion to theocratic robes which the imperialist militarists who rule Japan have so skilfully thrown about the Throne and the Government. But what one senses in China from the first moment is the feeling of the all-pervading power of Japan which is working as surely as fate to its unhesitating conclusion—the domination of Chinese politics and industry by Japan with a view to its final absorption. It is not my object to analyze the realities of the situation  or to inquire whether the universal feeling in China is a collective hallucination or is grounded in fact. The phenomenon is worthy of record on its own account. Even if it be merely psychological, it is a fact which must be reckoned with in both its Chinese and its Japanese aspects. In the first place, as to the differences in psychological atmosphere. Everybody who knows anything about Japan knows that it is the land of reserves and reticences. The half-informed American will tell you that this is put on for the misleading of foreigners. The informed know that it is an attitude shown to foreigners only because it is deeply engrained in the moral and social tradition of Japan; and that, if anything, the Japanese are more likely to be communicative—about many things at least—to a sympathetic foreigner, than to one another. The habit of reserve is so deeply embedded in all the etiquette, convention and daily ceremony of living, as well as in the ideals of strength of character, that only the Japanese who have subjected themselves to foreign influences escape it—and many of them revert. To put it mildly, the Japanese are not a loquacious people; they have the gift of doing rather than of gab.

It takes three days of easy travel from Japan to China. It’s hard to find another journey of the same length that results in such a drastic shift in political attitudes and beliefs anywhere in the world. The difference is definitely bigger than what you notice when traveling directly from San Francisco to Shanghai. It's not just about customs and lifestyles; that's obvious. It pertains to the ideas, beliefs, and common perceptions surrounding one shared reality: Japan's status in the global arena, especially concerning its relationship with China. In Japan, there’s a pervasive sense of doubt, hesitation, and even weakness. The atmosphere feels tense, like a country on the brink of change but unsure of where it’s headed. Liberalism is in the air, but true liberals face various challenges, particularly when trying to blend their liberal views with the commitment to theocratic authority that the militaristic leaders in Japan have skillfully wrapped around the Throne and the Government. In China, however, from the very first moment, you can sense Japan's overwhelming influence, which seems to drive unerringly toward a clear outcome: Japan's control over Chinese politics and industry with the intent of total assimilation. My goal isn’t to dissect the realities of this situation   or to determine whether the widespread sentiment in China is a shared illusion or based on facts. This phenomenon is significant enough to be noted on its own. Even if it is merely psychological, it’s a reality that needs to be acknowledged in both its Chinese and Japanese contexts. First, let's examine the differences in psychological atmosphere. Anyone familiar with Japan knows it’s a place of restraint and reticence. An uninformed American might say this is a performance to deceive outsiders. However, those who understand recognize that this attitude is only shown to foreigners because it’s deeply rooted in Japan's moral and social traditions; in fact, Japanese people tend to be more open—about many things at least—to a sympathetic foreigner than to each other. The tendency to hold back is so ingrained in their etiquette, social norms, and daily rituals, as well as in their ideals of strong character, that only those Japanese who have been influenced by foreign cultures can escape it—and even many of them revert back. To put it simply, the Japanese are not a chatty people; they have a talent for action rather than for words.

When accordingly a Japanese statesman or visiting diplomatist engages in unusually prolonged and frank discourse setting forth the aims and procedures of Japan, the student of politics who has been long in the East at once becomes alert, not to say suspicious. A recent illustration is so extreme that it will doubtless seem fantastic beyond belief. But the student at home will have to take these seeming fantasies seriously if he wishes to appreciate the present atmosphere of China. Cables have brought fragmentary reports of some addresses of Baron Goto in America. Doubtless in the American atmosphere these have the effect of reassuring America as to any improper ambitions on the part of Japan. In China, they were taken as announcements that Japan has about completed its plans for the absorption of China, and that the lucubration preliminary to operations of swallowing are about to begin. The reader is forgiven in advance any scepticism he feels about both the fact itself and the correctness of my report of the belief in the alleged fact. His scepticism will not surpass what I should feel in his place. But the suspicion aroused by such statements as this and the recent interview of Foreign Minister  Uchida and Baron Ishii must be noted as evidences of the universal belief in China that Japan has one mode of diplomacy for the East and another for the West, and that what is said in the West must be read in reverse in the East.

When a Japanese politician or visiting diplomat engages in unusually lengthy and candid discussions about Japan's goals and methods, a political student who has been in the East for some time becomes alert, if not suspicious. A recent example is so extreme that it may seem unbelievable. However, anyone studying this at home needs to take these apparent fantasies seriously to understand the current climate in China. Reports have come in about some speeches by Baron Goto in America. In the American context, these likely reassure people that Japan has no improper ambitions. In China, however, they were seen as announcements that Japan is close to finishing its plans to take control of China, and that the groundwork for this takeover is about to start. The reader is forgiven in advance for any skepticism about both the fact itself and my reporting on the belief in this supposed fact. Their skepticism won’t be greater than what I would feel in their position. Still, the suspicion raised by statements like this and the recent interview with Foreign Minister  Uchida and Baron Ishii should be noted as evidence of the widespread belief in China that Japan has one approach to diplomacy for the East and another for the West, and that what is said in the West needs to be interpreted in reverse in the East.

China, whatever else it is, is not the land of privacies. It is a proverb that nothing long remains secret in China. The Chinese talk more easily than they act—especially in politics. They are adepts in revealing their own shortcomings. They dissect their own weaknesses and failures with the most extraordinary reasonableness. One of the defects upon which they dwell is the love of finding substitutes for positive action, of avoiding entering upon a course of action which might be irrevocable. One almost wonders whether their power of self-criticism is not itself another of these substitutes. At all events, they are frank to the point of loquacity. Between the opposite camps there are always communications flowing. Among official enemies there are “sworn friends.” In a land of perpetual compromise, etiquette as well as necessity demands that the ways for later accommodations be kept open. Consequently things which are spoken of only under the breath in Japan are shouted from the housetops in China. It would hardly be good taste in Japan to allude to the report that influential Chinese ministers are in constant receipt of Japanese funds and these corrupt officials are the agencies by which political and economic concessions were wrung from China while Europe and America were busy with the war. But in China nobody even takes the trouble to deny it or even to discuss it. What is psychologically most impressive is the fact that it is merely taken for granted. When it is spoken of, it is as one mentions the heat on an unusually hot day.

China, whatever else it may be, isn’t a place where secrets thrive. There's a saying that nothing stays hidden for long in China. The Chinese find it easier to talk than to take action—especially in politics. They are skilled at admitting their own flaws. They analyze their weaknesses and failures with remarkable clarity. One of the issues they focus on is their tendency to look for substitutes for real action, preferring to avoid any course that could be permanent. It makes one wonder if their ability for self-criticism isn't just another form of evasion. In any case, they are open to the point of being overly chatty. There are always lines of communication between opposing sides. Among official rivals, there are “sworn friends.” In a country built on constant compromise, both etiquette and necessity require that paths for future deals remain open. As a result, topics that are whispered in Japan are openly discussed in China. It would hardly be acceptable in Japan to mention the rumor that powerful Chinese officials are regularly receiving Japanese money, and that these corrupt officials are the means by which political and economic concessions were forced from China while Europe and America were preoccupied with war. But in China, no one even bothers to deny it or discuss it. What’s most striking psychologically is that it’s simply accepted as a fact. When it comes up, it’s mentioned just like one might talk about the heat on a particularly warm day.

In speaking of the feeling of weakness current in Japan about Japan itself, one must refer to the economic situation because of its obvious connection with the international situation. In the first place, there is the strong impression that Japan is over-extended. Even in normal times, Japan relies more upon production for foreign markets than is regarded in most countries as safe policy. And there is the belief that Japan must do so, because only by large foreign sellings—large in comparison with the purchasing power of a people still having a low standard of life—can it purchase the raw  materials—and even food—it has to have. But during the war, the dependence of manufacturing and trade at home upon the foreign market was greatly increased. The domestic increase of wealth, though very great, is still too much in the hands of the few to affect seriously the internal demand for goods. Item one, which awakens sympathy for Japan as being in a somewhat precarious situation.

In discussing the widespread feeling of weakness in Japan regarding itself, we have to look at the economic situation due to its clear link to the international context. First, there's a strong sense that Japan is overstretched. Even during normal times, Japan depends more on production for foreign markets than most countries would consider a safe strategy. There's a belief that Japan must do this because it can only afford to buy the raw  materials—and even food—it needs through significant foreign sales—large relative to the purchasing power of a population that still has a low standard of living. But during the war, the reliance of domestic manufacturing and trade on the foreign market significantly increased. Although the growth of wealth domestically has been substantial, it's still concentrated in the hands of a few, which doesn't seriously boost the internal demand for goods. This situation raises empathy for Japan, as it finds itself in a somewhat unstable position.

Another item concerns the labor situation. Japan seems to feel itself in a dilemma. If she passes even reasonably decent factory laws (or rather attempts their enforcement) and regulates child and women’s labor, she will lose that advantage of cheap labor which she now counts on to offset her many disadvantages. On the other hand, strikes, labor difficulties, agitation for unions, etc., are constantly increasing, and the tension in the atmosphere is unmistakable. The rice riots are not often spoken of, but their memory persists, and the fact that they came very near to assuming a directly political aspect. Is there a race between fulfillment of the aspirations of the military clans who still hold the reins, and the growth of genuinely democratic forces which will forever terminate those aspirations? Certainly the defeat of Germany gave a blow to bureaucratic militarism in Japan which in time will go far. Will it have the time required to take effect on foreign policy? The hope that it will is a large factor in stimulating liberal sympathy for a Japan which is beginning to undergo the throes of transition.

Another issue is the labor situation. Japan seems to be in a dilemma. If it enacts even reasonably decent factory laws (or at least tries to enforce them) and regulates child and women’s labor, it will lose the advantage of cheap labor that it currently relies on to balance out its many disadvantages. On the flip side, strikes, labor issues, and demands for unions are constantly increasing, and the tension in the air is clear. The rice riots aren't often mentioned, but their memory lingers, especially since they nearly took on a directly political tone. Is there a race between meeting the ambitions of the military clans who still hold power and the rise of genuine democratic forces that will ultimately end those ambitions? Certainly, the defeat of Germany dealt a blow to bureaucratic militarism in Japan that will have significant long-term effects. Will there be enough time for this to influence foreign policy? The hope that it will is a major factor in encouraging liberal sympathy for a Japan that is starting to experience the struggles of transition.

As for the direct international situation of Japan, the feeling in Japan is that of the threatening danger of isolation. Germany is gone; Russia is gone. While those facts simplify matters for Japan somewhat, there is also the belief that in taking away potential allies, they have weakened Japan in the general game of balance and counter-balance of power. Particularly does the removal of imperialistic Russia relieve the threat on India which was such a factor in the willingness of Great Britain to make the offensive-defensive alliance. The revelation of the militaristic possibilities of America is another serious factor. Certainly the new triple entente cordiale of Japan, Italy and France is no adequate substitute for a realignment of international forces in which a common understanding between Great Britain and America is a dominant  factor. This factor explains, if it does not excuse, some of the querulousness and studied discourtesies with which the Japanese press for some months treated President Wilson, the United States in general and its relation to the League of Nations in particular, while it also throws light on the ardor with which the opportune question of racial discrimination was discussed. (The Chinese have an unfailing refuge in a sense of humor. It was interesting to note the delight with which they received the utterance of the Japanese Foreign Minister, after Japanese success at Paris, that “his attention had recently been called” to various press attacks on America which he much deprecated). In any case there is no mistaking the air of tension and nervous overstrain which now attends all discussion of Japanese foreign relations. In all directions, there are characteristic signs of hesitation, shaking of old beliefs and movement along new lines. Japan seems to be much in the same mood as that which it experienced in the early eighties before, toward the close of that decade, it crystallized its institutions through acceptance of the German constitution, militarism, educational system, and diplomatic methods. So that, once more, the observer gets the impression that substantially all of Japan’s energy, abundant as that is, must be devoted to her urgent problems of readjustment.

As for Japan's current international situation, there is a strong sense of the looming threat of isolation. Germany is out of the picture; Russia is out of the picture. While this simplifies things somewhat for Japan, there's also a belief that the removal of potential allies has weakened Japan in the overall balance of power. The departure of imperialistic Russia particularly eases the threat to India, which played a significant role in Great Britain's willingness to form an offensive-defensive alliance. Additionally, the potential military capabilities of America are another serious concern. Clearly, the new alliance between Japan, Italy, and France isn't a sufficient replacement for the need to realign international forces, where a common understanding between Great Britain and America is a key factor. This factor helps explain, if not justify, some of the complaints and deliberate discourtesies with which the Japanese press has addressed President Wilson, the United States in general, and its relationship to the League of Nations, while also shedding light on the passion with which the issue of racial discrimination has been discussed. (The Chinese always seem to find comfort in humor. It was noteworthy how much they enjoyed the remark from the Japanese Foreign Minister, after Japan's success in Paris, that “he had recently been made aware” of various press criticisms of America, which he strongly disapproved of.) In any case, there’s no denying the atmosphere of tension and anxious strain that now surrounds all discussions of Japan's foreign relations. Across the board, there are noticeable signs of uncertainty, re-evaluating old beliefs, and exploring new paths. Japan appears to be in a similar mindset to what it experienced in the early 1880s, before it solidified its institutions by adopting elements of the German constitution, militarism, education system, and diplomatic practices by the end of that decade. Thus, once again, it seems that nearly all of Japan’s considerable energy must be directed toward its pressing issues of readjustment.

Come to China, and the difference is incredible. It almost seems as if one were living in a dream; or as if some new Alice had ventured behind an international looking-glass wherein everything is reversed. That we in America should have little idea of the state of things and the frame of mind in China is not astonishing—especially in view of the censorship and the distraction of attention of the last few years. But that Japan and China should be so geographically near, and yet every fact that concerns them appear in precisely opposite perspective, is an experience of a life time. Japanese liberalism? Yes, it is heard of, but only in connection with one form which the longing for the miraculous deus ex machina takes. Perhaps a revolution in Japan may intervene to save China from the fate which now hangs over her. But there is no suggestion that anything less than a complete revolution will alter or even retard the course which is attributed to Japanese diplomacy working hand in hand with Japanese business interests  and militarism. The collapse of Russia and Germany? These things only mean that Japan has in a few years fallen complete heir to Russian hopes, achievements and possessions in Manchuria and Outer Mongolia, and has had opportunities in Siberia thrown into her hands which she could hardly have hoped for in her most optimistic moments. And now Japan has, with the blessing of the great Powers at Paris, become also the heir of German concessions, intrigues and ambitions, with added concessions, wrung (or bought) from incompetent and corrupt officials by secret agreements when the world was busy with war. If all the great Powers are so afraid of Japan that they give way to her every wish, what is China that she can escape the doom prepared for her? That is the cry of helplessness going up all over China. And Japanese propagandists take advantage of the situation, pointing to the action of the Peace Conference as proof that the Allies care nothing for China, and that China must throw herself into the arms of Japan if she is to have any protection at all. In short, Japan stands ready as she stood ready in Korea to guarantee the integrity and independence of China. And the fear that the latter must, in spite of her animosity toward Japan, accept this fate in order to escape something worse swims in the sinister air. It is the exact counterpart of the feeling current among the liberals in Japan that Japan has alienated China permanently when a considerate and slower course might have united the two countries. If the economic straits of Japan are alluded to, it is only as a reason why Japan has hurried her diplomatic coercion, her corrupt and secret bargainings with Chinese traitors and her industrial invasion. While the western world supposes that the military and the industrial party in Japan have opposite ideas as to best methods of securing Japanese supremacy in the East, it is the universal opinion in China that they two are working in complete understanding with one another, and the differences that sometimes occur between the Foreign Office in Tokyo and the Ministry of War (which is extra-constitutional in its status) are staged for effect.

Come to China, and the difference is astounding. It almost feels like you're living in a dream or as if a new Alice has stepped through an international looking-glass where everything is reversed. It’s not surprising that we in America have little understanding of the situation and mindset in China—especially considering the censorship and distractions of the past few years. However, the fact that Japan and China are so close geographically, yet everything concerning them seems to be viewed from completely opposite angles, is a once-in-a-lifetime experience. Japanese liberalism? Sure, it’s mentioned, but only in connection with a version that desires a miraculous solution deus ex machina. Perhaps a revolution in Japan could help save China from the fate that now threatens it. But there’s no indication that anything less than a complete revolution will change or even slow down the direction attributed to Japanese diplomacy, which works hand in hand with Japanese business interests   and militarism. The fall of Russia and Germany? These events only mean that Japan has quickly become the heir to Russia's hopes, achievements, and possessions in Manchuria and Outer Mongolia and has gained opportunities in Siberia that she could hardly have dreamed of in her most optimistic moments. Now Japan, with the support of the great Powers in Paris, has also inherited German concessions, schemes, and ambitions, along with additional concessions that were either coerced (or bought) from incompetent and corrupt officials through secret deals while the world was preoccupied with war. If all the great Powers are so afraid of Japan that they cater to her every wish, what hope does China have of escaping the fate prepared for her? That's the desperate feeling rising throughout China. Japanese propagandists exploit the situation, using the actions of the Peace Conference as evidence that the Allies have no regard for China, urging China to align with Japan if she wants any protection at all. In short, Japan is ready, just as she was in Korea, to guarantee China’s integrity and independence. The fear looms that, despite its hostility toward Japan, China may have to accept this fate to avoid something worse. This mirrors the sentiment among liberals in Japan who believe that Japan has permanently alienated China when a more considerate and gradual approach could have united both countries. When people mention Japan's economic difficulties, it’s only seen as a reason for Japan’s rushed diplomatic pressure, its corrupt and secret dealings with Chinese traitors, and its industrial invasion. While the Western world thinks the military and industrial factions in Japan have differing views on how to secure Japanese dominance in the East, the consensus in China is that they are completely aligned, and any apparent disagreements between the Foreign Office in Tokyo and the Ministry of War (which operates outside constitutional boundaries) are staged for show.

These are some of the aspects of the most complete transformation scene that it has ever been the lot of the writer to experience. May it turn out to be only an extraordinary psychological experience! But in the interests of truth it must  be recorded that every resident of China, Chinese or American, with whom I have talked in the last four weeks has volunteered the belief that all the seeds of a future great war are now deeply implanted in China. To avert such a calamity they look to the League of Nations or to some other force outside the immediate scene. Unfortunately the press of Japan treats every attempt to discuss the state of opinion in China or the state of facts as evidence that America, having tasted blood in the war, now has its eyes on Asia with the expectation later on of getting its hands on Asia. Consequently America is interested in trying to foster ill-will between China and Japan. If the pro-American Japanese do not enlighten their fellow-countrymen as to the facts, then America ought to return some of the propaganda that visits its shores. But every American who goes to Japan ought also to visit China—if only to complete his education.

These are some of the aspects of the most complete transformation scene that I have ever experienced as a writer. I hope it turns out to be just an extraordinary psychological experience! But to be truthful, I must note that every resident of China, whether Chinese or American, with whom I've spoken in the last four weeks has expressed the belief that all the seeds of a future great war are deeply planted in China. To prevent such a disaster, they look to the League of Nations or some other external force. Unfortunately, the Japanese press treats every attempt to talk about public opinion in China or the actual situation as proof that America, having tasted blood in the war, now has its sights set on Asia with hopes of eventually controlling it. As a result, America is seen as trying to stir up animosity between China and Japan. If the pro-American Japanese do not inform their fellow citizens about the facts, then America should return some of the propaganda that comes its way. However, every American who goes to Japan should also visit China—if only to fully educate themselves.

II
Shantung, As Seen From Within

1.

American apologists for that part of the Peace Treaty which relates to China have the advantage of the illusions of distance. Most of the arguments seem strange to anyone who lives in China even for a few months. He finds the Japanese on the spot using the old saying about territory consecrated by treasure spent and blood shed. He reads in Japanese papers and hears from moderately liberal Japanese that Japan must protect China, as well as Japan, against herself, against her own weak or corrupt government, by keeping control of Shantung to prevent China from again alienating that territory to some other power.

American supporters of that part of the Peace Treaty regarding China benefit from the biases that come with distance. Most of the arguments sound odd to anyone who has lived in China for even a few months. They see the Japanese asserting the old idea about territory earned through money spent and blood spilled. They read in Japanese newspapers and hear from somewhat progressive Japanese that Japan needs to protect both China and itself from its own weak or corrupt government by maintaining control of Shantung to stop China from giving that territory to another power again.

The history of European aggression in China gives this argument great force among the Japanese, who for the most part know nothing more about what actually goes on in China than they used to know about Korean conditions. These considerations, together with the immense expectations raised among the Japanese during the war concerning their coming  domination of the Far East and the unswerving demand of excited public opinion in Japan during the Versailles Conference for the settlement that actually resulted, give an ironic turn to the statement so often made that Japan may be trusted to carry out her promises. Yes, one is often tempted to say, that is precisely what China fears, that Japan will carry out her promises, for then China is doomed. To one who knows the history of foreign aggression in China, especially the technique of conquest by railway and finance, the irony of promising to keep economic rights while returning sovereignty lies so on the surface that it is hardly irony. China might as well be offered Kant’s Critique of Pure Reason on a silver platter as be offered sovereignty under such conditions. The latter is equally metaphysical.

The history of European aggression in China makes this argument very strong among the Japanese, who mostly know nothing more about what’s really happening in China than they did about conditions in Korea. These points, along with the huge expectations raised among the Japanese during the war about their impending dominance in the Far East, and the unwavering insistence of enthusiastic public opinion in Japan during the Versailles Conference for the settlement that ultimately happened, give an ironic twist to the often-stated idea that Japan can be trusted to keep its promises. Yes, one might often say, that is exactly what China fears—that Japan will keep its promises, because then China is doomed. For someone who understands the history of foreign aggression in China, especially the methods of conquest through railways and finance, the irony of promising to maintain economic rights while restoring sovereignty is so obvious that it barely counts as irony. China might as well be offered Kant’s Critique of Pure Reason on a silver platter as be given sovereignty under such conditions. The latter is equally abstract.

A visit to Shantung and a short residence in its capital city, Tsinan, made the conclusions, which so far as I know every foreigner in China has arrived at, a living thing. It gave a vivid picture of the many and intimate ways in which economic and political rights are inextricably entangled together. It made one realize afresh that only a President who kept himself innocent of any knowledge of secret treaties during the war, could be naïve enough to believe that the promise to return complete sovereignty retaining only economic rights is a satisfactory solution. It threw fresh light upon the contention that at most and at worst Japan had only taken over German rights, and that since we had acquiesced in the latter’s arrogations we had no call to make a fuss about Japan. It revealed the hollowness of the claim that pro-Chinese propaganda had wilfully misled Americans into confusing the few hundred square miles around the port of Tsing-tao with the Province of Shantung with its thirty millions of Chinese population.

A trip to Shantung and a brief stay in its capital, Tsinan, brought to life the conclusions that, as far as I know, every foreigner in China has reached. It provided a clear picture of the many close ways in which economic and political rights are deeply intertwined. It made one realize again that only a President who remained unaware of any secret treaties during the war could be naive enough to think that the promise to restore complete sovereignty while keeping only economic rights is a satisfactory solution. It shed new light on the argument that, at most and at worst, Japan only took over German rights, and that since we had accepted the latter’s claims, we had no reason to complain about Japan. It exposed the emptiness of the claim that pro-Chinese propaganda had intentionally misled Americans into confusing the few hundred square miles around the port of Tsingtao with the Province of Shantung and its thirty million Chinese people.

As for the comparison of Germany and Japan one might suppose that the objects for which America nominally entered the war had made, in any case, a difference. But aside from this consideration, the Germans exclusively employed Chinese in the railway shops and for all the minor positions on the railway itself. The railway guards (the difference between police and soldiers is nominal in China) were all Chinese, the Germans merely training them. As soon as Japan invaded Shantung and took over the railway, Chinese workmen and Chinese military  guards were at once dismissed and Japanese imported to take their places. Tsinan-fu, the inland terminus of the ex-German railway, is over two hundred miles from Tsing-tao. When the Japanese took over the German railway business office, they at once built barracks, and today there are several hundred soldiers still there—where Germany kept none. Since the armistice even, Japan has erected a powerful military wireless within the grounds of the garrison, against of course the unavailing protest of Chinese authorities. No foreigner can be found who will state that Germany used her ownership of port and railway to discriminate against other nations. No Chinese can be found who will claim that this ownership was used to force the Chinese out of business, or to extend German economic rights beyond those definitely assigned her by treaty. Common sense should also teach even the highest paid propagandist in America that there is, from the standpoint of China, an immense distinction between a national menace located half way around the globe, and one within two days’ sail over an inland sea absolutely controlled by a foreign navy, especially as the remote nation has no other foothold and the nearby one already dominates additional territory of enormous strategic and economic value—namely, Manchuria.

When comparing Germany and Japan, one might think that the reasons America entered the war made a difference. However, aside from that, the Germans only employed Chinese workers in the railway shops and for all the minor roles on the railway itself. The railway guards—who in China are essentially the same as police and soldiers—were all Chinese, with the Germans just training them. As soon as Japan invaded Shantung and took control of the railway, Chinese workers and Chinese military guards were immediately let go, and Japanese workers were brought in to replace them. Tsinan-fu, the inland terminus of the former German railway, is over two hundred miles from Tsing-tao. When the Japanese took over the German railway business office, they promptly built barracks, and today there are still several hundred soldiers stationed there—whereas Germany had none. Even after the armistice, Japan established a powerful military wireless within the garrison grounds, despite the ineffective protests from Chinese authorities. No foreigner will say that Germany used its control of the port and railway to discriminate against other nations. No Chinese person claims that this ownership was used to push them out of business or to extend German economic rights beyond what was explicitly granted by treaty. Common sense should also indicate, even to the highest-paid propagandist in America, that from China's perspective, there’s a huge difference between a national threat that’s half a world away and one that’s just two days' sail over an inland sea completely controlled by a foreign navy—especially when the distant nation has no other foothold and the nearby one already dominates additional territory of great strategic and economic importance—specifically, Manchuria.

These facts bear upon the shadowy distinction between the Tsing-tao and the Shantung claim, as well as upon the solid distinction between German and Japanese occupancy. If there still seemed to be a thin wall between Japanese possession of the port of Tsing-tao and usurpation of Shantung, it was enough to stop off the train in Tsinan-fu to see the wall crumble. For the Japanese wireless and the barracks of the army of occupation are the first things that greet your eyes. Within a few hundred feet of the railway that connects Shanghai, via the important center of Tientsin, with the capital, Peking, you see Japanese soldiers on the nominally Chinese street, guarding their barracks. Then you learn that if you travel upon the ex-German railway towards Tsing-tao, you are ordered to show your passport as if you were entering a foreign country. And as you travel along the road (remembering that you are over two hundred miles from Tsing-tao) you find Japanese soldiers at every station, and several garrisons and barracks at important towns on the line. Then you realize that at the shortest  possible notice, Japan could cut all communications between southern China (together with the rich Yangste region) and the capital, and with the aid of the Southern Manchurian Railway at the north of the capital, hold the entire coast and descend at its good pleasure upon Peking.

These facts highlight the unclear difference between the Tsing-tao and Shantung claims, as well as the clear difference between German and Japanese occupancy. If there still seemed to be a slight boundary between Japanese control of the port of Tsing-tao and their takeover of Shantung, a quick stop off the train in Tsinan-fu would make that boundary disappear. The Japanese wireless station and the barracks of the occupying army are the first things you notice. Within a few hundred feet of the railway linking Shanghai, through the key hub of Tientsin, to the capital, Beijing, you'll see Japanese soldiers in the nominally Chinese street, guarding their barracks. Then you find out that if you take the former German railway towards Tsing-tao, you’re required to show your passport as if you’re entering a foreign country. As you travel along the road (remember, you’re over two hundred miles from Tsing-tao), you encounter Japanese soldiers at every station, with several garrisons and barracks at major towns along the route. Then you realize that with very little notice, Japan could cut off all communications between southern China (including the wealthy Yangtze region) and the capital, and with the help of the Southern Manchurian Railway north of the capital, take control of the entire coastline and invade Beijing at their convenience.

You are then prepared to learn from eye-witnesses that when Japan made its Twenty-one Demands upon China, machine guns were actually in position at strategic points throughout Shantung, with trenches dug and sandbags placed. You know that the Japanese liberal spoke the truth, who told you, after a visit to China and his return to protest against the action of his government, that the Japanese already had such a military hold upon China that they could control the country within a week, after a minimum of fighting, if war should arise. You also realize the efficiency of official control of information and domestic propaganda as you recall that he also told you that these things were true at the time of his visit, under the Terauchi cabinet, but had been completely reversed by the present Hara ministry. For I have yet to find a single foreigner or Chinese who is conscious of any difference of policy, save as the end of the war has forced the necessity of caution, since other nations can now look China-wards as they could not during the war.

You are now ready to learn from eyewitnesses that when Japan issued its Twenty-one Demands to China, machine guns were actually set up at key locations throughout Shantung, with trenches dug and sandbags in place. You know that the Japanese liberal spoke the truth when he told you, after visiting China and returning to protest against his government's actions, that the Japanese already had such a military grip on China that they could take control of the country within a week, with minimal fighting, if war broke out. You also recognize the effectiveness of official information control and domestic propaganda as you remember he mentioned that these facts were true during his visit, under the Terauchi cabinet, but had been completely changed by the current Hara ministry. I have yet to find a single foreigner or Chinese who perceives any difference in policy, except that the end of the war has necessitated caution, as other nations can now look towards China in ways they couldn't during the war.

An American can get an idea of the realities of the present situation if he imagines a foreign garrison and military wireless in Wilmington, with a railway from that point to a fortified sea-port controlled by the foreign power, at which the foreign nation can land, without resistance, troops as fast as they can be transported, and with bases of supply, munitions, food, uniforms, etc., already located at Wilmington, at the sea-port and several places along the line. Reverse the directions from south to north, and Wilmington will stand for Tsinan-fu, Shanghai for New York, Nanking for Philadelphia with Peking standing for the seat of government at Washington, and Tientsin for Baltimore. Suppose in addition that the Pennsylvania road is the sole means of communication between Washington and the chief commercial and industrial centers, and you have the framework of the Shantung picture as it presents itself daily to the inhabitants of China. Upon second thought, however, the parallel is not quite accurate. You have to add that the same  foreign nation controls also all coast communications from, say, Raleigh southwards, with railway lines both to the nearby coast and to New Orleans. For (still reversing directions) this corresponds to the position of Imperial Japan in Manchuria with its railways to Dairen and through Korea to a port twelve hours sail from a great military center in Japan proper. These are not remote possibilities nor vague prognostications. They are accomplished facts.

An American can get a sense of the current situation if he imagines a foreign military force and communications in Wilmington, with a railway connecting it to a fortified seaport controlled by that foreign power, where they can land troops without any resistance as quickly as they can be transported, along with supply bases for munitions, food, uniforms, etc., already established at Wilmington, the seaport, and several points along the route. Flip the scenario from south to north, and Wilmington represents Tsinan-fu, Shanghai stands in for New York, Nanking for Philadelphia, with Peking as the U.S. government’s seat in Washington, and Tientsin for Baltimore. Now suppose that the Pennsylvania Railroad is the only communication line between Washington and the major commercial and industrial centers, and you have the basic outline of the Shantung situation as it appears every day to the people in China. However, on further thought, the comparison isn’t entirely accurate. You need to add that the same  foreign nation also controls all coastal communications from, say, Raleigh southwards, with rail lines both to the nearby coast and to New Orleans. For (still reversing directions) this mirrors the position of Imperial Japan in Manchuria, with its railways leading to Dairen and through Korea to a port just twelve hours' sail from a major military center in Japan. These are not distant possibilities or vague predictions. They are established facts.

Yet the facts give only the framework of the picture. What is actually going on within Shantung? One of the demands of the “postponed” group of the Twenty-one Demands was that Japan should supply military and police advisers to China. They are not so much postponed but that Japan enforced specific concessions from China during the war by diplomatic threats to reintroduce their discussion, or so postponed that Japanese advisers are not already installed in the police headquarters of the city of Tsinan, the capital city of Shantung of three hundred thousand population where the Provincial Assembly meets and all the Provincial officials reside. Within recent months the Japanese consul has taken a company of armed soldiers with him when he visited the Provincial Governor to make certain demands upon him, the visit being punctuated by an ostentatious surrounding of the Governor’s yamen by these troops. Within the past few weeks, two hundred cavalry came to Tsinan and remained there while Japanese officials demanded of the Governor drastic measures to suppress the boycott, while it was threatened to send Japanese troops to police the foreign settlement if the demand was not heeded.

Yet the facts provide only the framework of the situation. What is actually happening in Shantung? One of the demands from the "postponed" group of the Twenty-one Demands was for Japan to supply military and police advisors to China. They're not so much postponed as Japan made specific concessions during the war through diplomatic threats to bring this up again; or they’re postponed to the point where Japanese advisors are already set up in the police headquarters of Tsinan, the capital of Shantung, which has a population of three hundred thousand, where the Provincial Assembly meets and all the Provincial officials are based. In recent months, the Japanese consul has taken a unit of armed soldiers with him when visiting the Provincial Governor to make certain demands, and this visit was marked by a showy presence of troops surrounding the Governor’s yamen. In the last few weeks, two hundred cavalry arrived in Tsinan and stayed there while Japanese officials pressed the Governor for severe measures to suppress the boycott, threatening to send Japanese troops to police the foreign settlement if their demands were not met.

A former consul was indiscreet enough to put into writing that if the Chinese Governor did not stop the boycott and the students’ movement by force if need be, he would take matters into his own hands. The chief tangible charge he brought against the Chinese as a basis of his demand for “protection” was that Chinese store-keepers actually refused to accept Japanese money in payment for goods, not ordinary Japanese money at that, but the military notes with which, so as to save drain upon the bullion reserves, the army of occupation is paid. And all this, be it remembered, is more than two hundred miles from Tsing-tao and from eight to twelve months after the armistice. Today’s paper reports a visit of Japanese  to the Governor to inform him that unless he should prevent a private theatrical performance from being given in Tsinan by the students, they would send their own forces into the settlement to protect themselves. And the utmost they might need protection from, was that the students were to give some plays designed to foster the boycott!

A former consul was reckless enough to write that if the Chinese Governor didn’t put an end to the boycott and the students’ movement, even by force if necessary, he would take matters into his own hands. The main accusation he made against the Chinese as a reason for his demand for “protection” was that Chinese store-owners actually refused to accept Japanese money for goods, and not just any Japanese money, but the military notes used to pay the occupying army, which were issued to prevent draining the bullion reserves. And all of this, remember, is more than two hundred miles from Tsing-tao and eight to twelve months after the armistice. Today’s paper reports that a Japanese   visited the Governor to inform him that unless he stopped a private theater performance by the students in Tsinan, they would send their own forces into the settlement for protection. And the only thing they might need protection from was that the students were putting on plays to promote the boycott!

Japanese troops overran the Province before they made any serious attempt to capture Tsing-tao. It is only a slight exaggeration to say that they “took” the Chinese Tsinan before they took the German Tsing-tao. Propaganda in America has justified this act on the ground that a German railway to the rear of Japanese forces would have been a menace. As there were no troops but only legal and diplomatic papers with which to attack the Japanese, it is a fair inference that the “menace” was located in Versailles rather than in Shantung, and concerned the danger of Chinese control of their own territory. Chinese have been arrested by Japanese gendarmes in Tsinan and subjected to a torturing third degree of the kind that Korea has made sickeningly familiar. The Japanese claim that the injuries were received while the men were resisting arrest. Considering that there was no more legal ground for arrest than there would be if Japanese police arrested Americans in New York, almost anybody but the pacifist Chinese certainly would have resisted. But official hospital reports testify to bayonet wounds and the marks of flogging. In the interior where the Japanese had been disconcerted by the student propaganda they raided a High School, seized a school boy at random, and took him to a distant point and kept him locked up several days. When the Japanese consul at Tsinan was visited by Chinese officials in protest against these illegal arrests, the consul disclaimed all jurisdiction. The matter, he said, was wholly in the hands of the military authorities in Tsing-tao. His disclaimer was emphasized by the fact that some of the kidnapped Chinese were taken to Tsing-tao for “trial.”

Japanese troops took control of the Province before they made any serious effort to capture Tsing-tao. It’s only a slight exaggeration to say that they “took” the Chinese city of Tsinan before they took the German Tsing-tao. Propaganda in America has justified this action by arguing that a German railway behind the Japanese forces would have been a threat. Since there were no troops, only legal and diplomatic documents to challenge the Japanese, it’s fair to conclude that the “threat” was based in Versailles rather than in Shantung, and was about the risk of Chinese control over their own territory. The Japanese have arrested Chinese individuals in Tsinan and subjected them to brutal interrogations that are reminiscent of the atrocities in Korea. The Japanese assert that the injuries were sustained while the individuals were resisting arrest. Given that there was as little legal basis for arresting them as there would be if Japanese police arrested Americans in New York, almost anyone except the pacifist Chinese would likely have resisted. However, official hospital reports confirm bayonet wounds and signs of flogging. In the interior, where the Japanese were unsettled by student activism, they raided a high school, randomly seized a student, and took him to a remote location where he was held for several days. When Chinese officials visited the Japanese consul in Tsinan to protest these unlawful arrests, the consul denied all jurisdiction. He stated that the situation was entirely in the control of the military authorities in Tsing-tao. His denial was underscored by the fact that some of the kidnapped Chinese were taken to Tsing-tao for “trial.”

The matter of economic rights in relation to political domination will be discussed later in this article. It is no pleasure for one with many warm friends in Japan, who has a great admiration for the Japanese people as distinct from the ruling military and bureaucratic class, to report such facts as have been stated. One might almost say, one might positively  say from the standpoint of Japan itself, that the worst thing that can be charged against the policy of Japan in China for the last six years is its immeasurable stupidity. No nation has ever misjudged the national psychology of another people as Japan has that of China. The alienation of China is widespread, deep, bitter. Even the most pessimistic of the Chinese who think that China is to undergo a complete economic and political domination by Japan do not think it can last, even without outside intervention, more than half a century.

The issue of economic rights in relation to political control will be addressed later in this article. It’s not easy for someone with many close friends in Japan, who deeply admires the Japanese people separate from the ruling military and bureaucratic class, to report the facts that have been mentioned. One could almost say, in fact, from Japan's own perspective, that the worst thing that can be said about Japan's policy in China over the last six years is its sheer ineptitude. No nation has ever misread another people's national psychology as badly as Japan has misread China’s. The alienation felt by China is widespread, deep, and bitter. Even the most pessimistic Chinese, who believe China is heading toward total economic and political domination by Japan, don't think it will last more than half a century, even without outside interference.

Today, at the beginning of a new year, (1920) the boycott is much more complete and efficient than in the most tense days of last summer. Unfortunately, the Japanese policy seems to be under a truly Greek fate which drives it on. Concessions that would have produced a revulsion of feeling in favor of Japan a year ago will now merely salve the surface of the wound. What would have been welcomed even eight months ago would now be received with contempt. There is but one way in which Japan can now restore herself. It is nothing less than complete withdrawal from Shantung, with possibly a strictly commercial concession at Tsing-tao and a real, not a Manchurian, Open Door.

Today, at the start of a new year (1920), the boycott is much more thorough and effective than it was during the most intense days of last summer. Unfortunately, Japan's policy seems to be following a truly Greek fate that pushes it forward. Concessions that would have stirred support for Japan a year ago will now only cover up the wound. What would have been appreciated just eight months ago would now be met with disdain. There’s only one way for Japan to regain its standing. It involves nothing less than a complete withdrawal from Shantung, possibly with a strictly commercial concession in Tsing-tao and a genuine, not a Manchurian, Open Door.

According to the Japanese-owned newspapers published in Tsinan, the Japanese military commander in Tsing-tao recently made a speech to visiting journalists from Tokyo in which he said: “The suspicions of China cannot now be allayed merely by repeating that we have no territorial ambitions in China. We must attain complete economic domination of the Far East. But if Chino-Japanese relations do not improve, some third party will reap the benefit. Japanese residing in China incur the hatred of the Chinese. For they regard themselves as the proud citizens of a conquering country. When the Japanese go into partnership with the Chinese they manage in the greater number of cases to have the profits accrue to themselves. If friendship between China and Japan is to depend wholly upon the government it will come to nothing. Diplomatists, soldiers, merchants, journalists should repent the past. The change must be complete.” But it will not be complete until the Japanese withdraw from Shantung leaving their nationals there upon the footing of other foreigners in China.

According to Japanese-owned newspapers published in Tsinan, the Japanese military commander in Tsing-tao recently spoke to journalists from Tokyo and said: “The doubts from China can't just be satisfied by claiming that we have no territorial ambitions there. We need to achieve complete economic control over the Far East. But if relations between China and Japan don't improve, a third party will benefit. Japanese living in China face hostility from the Chinese because they see themselves as proud citizens of a conquering nation. When the Japanese partner with the Chinese, they often ensure that the profits go mostly to themselves. If the friendship between China and Japan relies solely on the government, it will be pointless. Diplomats, soldiers, merchants, and journalists need to reflect on the past. The change must be thorough.” But it won't be thorough until the Japanese pull out of Shantung and leave their nationals there on the same terms as other foreigners in China.

 2.

In discussing the return to China by Japan of a metaphysical sovereignty while economic rights are retained, I shall not repeat the details of German treaty rights as to the railway and the mines. The reader is assumed to be familiar with those facts. The German seizure was outrageous. It was a flagrant case of Might making Right. As von Buelow cynically but frankly told the Reichstag, while Germany did not intend to partition China, she also did not intend to be the passenger left behind in the station when the train started. Germany had the excuse of prior European aggressions, and in turn her usurpation was the precedent for further foreign rape. If judgments are made on a comparative basis, Japan is entitled to all of the white-washing that can be derived from the provocations of European imperialistic powers, including those countries that in domestic policy are democratic. And every fairminded person will recognize that, leaving China out of the reckoning, Japan’s proximity to China gives her aggressions the color of self-defence in a way that cannot be urged in behalf of any European power.

In discussing Japan's return of a metaphysical sovereignty to China while keeping economic rights, I won’t go over the details of German treaty rights regarding the railway and the mines. The reader is expected to be familiar with those facts. The German seizure was outrageous. It was a clear example of Might making Right. As von Buelow cynically but openly told the Reichstag, while Germany didn’t plan to partition China, she also didn’t intend to be the one left behind when the train departed. Germany used prior European aggressions as an excuse, and her takeover set a precedent for further foreign exploitation. If we evaluate things comparatively, Japan deserves all the justification it can get from the provocations of European imperial powers, including those that are democratic at home. And every fair-minded person will see that, aside from China, Japan’s closeness to China makes its actions appear as self-defense in a way that can’t be justified for any European power.

It is possible to look at European aggressions in, say, Africa as incidents of a colonization movement. But no foreign policy in Asia can shelter itself behind any colonization plea. For continental Asia is, for practical purposes, India and China, representing two of the oldest civilizations of the globe and presenting two of its densest populations. If there is any such thing in truth as a philosophy of history with its own inner and inevitable logic, one may well shudder to think of what the closing acts of the drama of the intercourse of the West and East are to be. In any case, and with whatever comfort may be derived from the fact that the American continents have not taken part in the aggression and hence may act as a mediator to avert the final tragedy, residence in China forces upon one the realization that Asia is, after all, a large figure in the future reckoning of history. Asia is really here after all. It is not simply a symbol in western algebraic balances of trade. And in the future, so to speak, it is going to be even more here, with its awakened national consciousness of about half the population of the whole globe.

It’s possible to view European aggressions in Africa as part of a colonization movement. But no foreign policy in Asia can hide behind any colonization excuse. For practical purposes, continental Asia is essentially India and China, two of the oldest civilizations in the world with some of the highest populations. If there is such a thing as a philosophy of history with its own internal and unavoidable logic, it’s unsettling to think about what the final acts of the drama between the West and East will be. In any case, regardless of how comforting it may be to note that the American continents haven’t participated in the aggression and could serve as mediators to prevent a final tragedy, living in China makes it clear that Asia is a significant factor in the future of history. Asia is really here after all. It’s not just a symbol in Western economic equations. In the future, so to speak, it’s going to be even more present, with its awakened national consciousness representing about half of the world’s population.

Let the agreements of France and Great Britain made with  Japan during the war stand for the measure of western consciousness of the reality of only a small part of Asia, a consciousness generated by the patriotism of Japan backed by its powerful army and navy. The same agreement measures western unconsciousness of the reality of that part of Asia which lies within the confines of China. An even better measure of western unconsciousness may be found perhaps in such a trifling incident as this:—An English friend long resident in Shantung told me of writing indignantly home concerning the British part in the Shantung settlement. The reply came, complacently stating that Japanese ships did so much in the war that the Allies could not properly refuse to recognize Japan’s claims. The secret agreements themselves hardly speak as eloquently for the absence of China from the average western consciousness. In saying that China and Asia are to be enormously significant figures in future reckonings, the spectre of a military Yellow Peril is not meant nor even the more credible spectre of an industrial Yellow Peril. But Asia has come to consciousness, and her consciousness of herself will soon be such a massive and persistent thing that it will force itself upon the reluctant consciousness of the west, and lie heavily upon its conscience. And for this fact, China and the western world are indebted to Japan.

Let the agreements between France and Great Britain made with   Japan during the war reflect the Western awareness of a small part of Asia, an awareness shaped by Japan's patriotism backed by its strong army and navy. This same agreement highlights the Western ignorance regarding that part of Asia within China. An even clearer example of this ignorance can be found in a seemingly trivial incident: An English friend who lived in Shantung told me about writing a frustrated letter home regarding the British involvement in the Shantung settlement. The response received was smugly stating that Japanese ships contributed so much during the war that the Allies couldn’t honestly disregard Japan’s claims. The secret agreements themselves hardly express the lack of awareness regarding China in the average Western mindset. When we say that China and Asia will play significantly important roles in future considerations, we’re not referring to the threat of a military Yellow Peril, nor even the more believable threat of an industrial Yellow Peril. But Asia has become aware of itself, and this self-awareness will soon be so substantial and persistent that it will demand attention from the resistant Western consciousness and weigh heavily on its conscience. And for this reality, both China and the Western world owe a debt to Japan.

These remarks are more relevant to a consideration of the relationship of economic and political rights in Shantung than they perhaps seem. For a moment’s reflection will call to mind that all political foreign aggression in China has been carried out for commercial and financial ends, and usually upon some economic pretext. As to the immediate part played by Japan in bringing about a consciousness which will from the present time completely change the relations of the western powers to China, let one little story testify. Some representatives of an English missionary board were making a tour of inspection through China. They went into an interior town in Shantung. They were received with extraordinary cordiality by the entire population. Some time afterwards some of their accompanying friends returned to the village and were received with equally surprising coldness. It came out upon inquiry that the inhabitants had first been moved by the rumor that these people were sent by the British government to secure the removal of the Japanese. Later they were moved by indignation that they had been disappointed.

These comments are more relevant to understanding the relationship between economic and political rights in Shantung than they might initially seem. A moment’s thought will remind us that all foreign aggression in China has been driven by commercial and financial motives, often under the guise of some economic justification. Regarding Japan's immediate role in creating an awareness that will fundamentally alter the relationship between Western powers and China, one small story illustrates this point. Some representatives from an English missionary board were touring China. They visited an inland town in Shantung, where they were greeted with remarkable warmth by the entire community. Later, when some of their friends returned to the village, they were welcomed with unexpected coldness. Upon inquiry, it turned out that the villagers had initially been enthusiastic because they believed these visitors were sent by the British government to help remove the Japanese. Their disappointment later turned into indignation.

 It takes no forcing to see a symbol in this incident. Part of it stands for the almost incredible ignorance which has rendered China so impotent nationally speaking. The other part of it stands for the new spirit which has been aroused even among the common people in remote districts. Those who fear, or who pretend to fear, a new Boxer movement, or a definite general anti-foreign movement, are, I think, mistaken. The new consciousness goes much deeper. Foreign policies that fail to take it into account and that think that relations with China can be conducted upon the old basis will find this new consciousness obtruding in the most unexpected and perplexing ways.

 It's easy to see a symbol in this situation. One part represents the almost unbelievable ignorance that has left China so powerless on a national level. The other part symbolizes the new spirit that has awakened even among ordinary people in remote areas. Those who are afraid, or who pretend to be afraid, of a new Boxer movement or a clear anti-foreign movement are, I believe, mistaken. This new awareness runs much deeper. Foreign policies that ignore it and assume that relations with China can continue as before will encounter this new awareness in the most surprising and confusing ways.

One might fairly say, still speaking comparatively, that it is part of the bad luck of Japan that her proximity to China, and the opportunity the war gave her to outdo the aggressions of European powers, have made her the first victim of this disconcerting change. Whatever the motives of the American Senators in completely disassociating the United States from the peace settlement as regards China, their action is a permanent asset to China, not only in respect to Japan but with respect to all Chinese foreign relations. Just before our visit to Tsinan, the Shantung Provincial Assembly had passed a resolution of thanks to the American Senate. More significant is the fact that they passed another resolution to be cabled to the English Parliament, calling attention to the action of the American Senate and inviting similar action. China in general and Shantung in particular feels the reinforcement of an external approval. With this duplication, its national consciousness has as it were solidified. Japan is simply the first object to be affected.

One might reasonably argue, comparing the situation, that it's somewhat unfortunate for Japan that being close to China and the opportunity the war provided to surpass the actions of European powers have made her the initial victim of this unsettling change. Regardless of the reasons behind the American Senators’ decision to completely separate the United States from the peace agreement concerning China, their actions are undoubtedly a lasting benefit for China, not just in relation to Japan but in all of China's foreign affairs. Just before we visited Tsinan, the Shantung Provincial Assembly passed a resolution thanking the American Senate. More importantly, they also passed another resolution to be sent to the English Parliament, highlighting the American Senate’s actions and encouraging a similar response. China as a whole, and Shantung in particular, feels strengthened by this external validation. With this support, its national identity has, in a way, become more consolidated. Japan is simply the first to be impacted.

The concrete working out of economic rights in Shantung will be illustrated by a single case which will have to stand as typical. Po-shan is an interior mining village. The mines were not part of the German booty; they were Chinese owned. The Germans, whatever their ulterior aims, had made no attempt at dispossessing the Chinese. The mines, however, are at the end of a branch line of the new Japanese owned railway—owned by the government, not by a private corporation, and guarded by Japanese soldiers. Of the forty mines, the Japanese have worked their way, in only four years, into all but four. Different methods are used. The simplest is, of course, discrimination in the use of the railway for shipping. Downright  refusal to furnish cars while competitors who accepted Japanese partners got them, is one method. Another more elaborate method is to send but one car when a large number is asked for, and then when it is too late to use cars, send the whole number asked for or even more, and then charge a large sum for demurrage in spite of the fact the mine no longer wants them or has cancelled the order. Redress there is none.

The practical implementation of economic rights in Shantung will be demonstrated by a single case that will have to serve as typical. Po-shan is an inland mining village. The mines were not part of the German loot; they were owned by the Chinese. The Germans, regardless of their hidden motives, made no effort to dispossess the Chinese. However, the mines are located at the end of a branch line of the new Japanese-owned railway—owned by the government, not a private company, and guarded by Japanese soldiers. Out of the forty mines, the Japanese have managed to take control of all but four in just four years. They use different tactics. The simplest, of course, is discrimination in railway usage for shipping. An outright refusal to provide train cars while allowing competitors who accepted Japanese partners to receive them is one method. Another, more complicated tactic is to send only one car when a large number is requested, and then when it's too late to use the cars, send the full requested amount or even more, and then charge a hefty fee for delays even though the mine no longer needs them or has canceled the order. There is no way to seek redress.

Tsinan has no special foreign concessions. It is, however, a “treaty port” where nationals of all friendly powers can do business. But Po-shan is not even a treaty port. Legally speaking no foreigners can lease land or carry on any business there. Yet the Japanese have forced a settlement as large in area as the entire foreign settlement in the much larger town of Tsinan. A Chinese refused to lease land where the Japanese wished to relocate their railway station. Nothing happened to him directly. But merchants could not get shipping space, or receive goods by rail. Some of them were beaten up by thugs. After a time, they used their influence with their compatriot to lease his land. Immediately the persecutions ceased. Not all the land has been secured by threats or coercion; some has been leased directly by Chinese moved by high prices, in spite of the absence of any legal sanction. In addition, the Japanese have obtained control of the electric light works and some pottery factories, etc.

Tsinan doesn’t have any special foreign concessions. However, it is a “treaty port” where people from all friendly countries can conduct business. On the other hand, Po-shan isn’t even a treaty port. Legally, no foreigners can lease land or conduct any business there. Still, the Japanese have managed to establish a settlement that covers a space as large as the entire foreign settlement in the much bigger town of Tsinan. When a Chinese person refused to lease land to the Japanese for their railway station, he didn’t face any direct consequences. However, merchants found it difficult to secure shipping space or get goods delivered by rail. Some of them were attacked by thugs. Eventually, the Japanese used their influence with their countryman to persuade him to lease the land. Once that happened, the harassment stopped. Not all the land was acquired through threats or coercion; some was leased directly by Chinese people lured by high prices, even though there was no legal backing for these agreements. Additionally, the Japanese have taken control of the electric light company and some pottery factories, among others.

Now even admitting that this is typical of the methods by which the Japanese plant themselves, a natural American reaction would be to say that, after all, the country is built up industrially by these enterprises, and that though the rights of some individuals may have been violated, there is nothing to make a national, much less an international fuss about. More or less unconsciously we translate foreign incidents into terms of our own experience and environment, and thus miss the entire point. Since America was largely developed by foreign capital to our own economic benefit and without political encroachments, we lazily suppose some such separation of the economic and political to be possible in China. But it must be remembered that China is not an open country. Foreigners can lease land, carry on business, and manufacture only in accord with express treaty agreements. There are no such agreements in the cases typified by the Po-shan incident. We may profoundly disagree with the closed economic policy of China, or we may believe that under existing circumstances it represents  the part of prudence for her. That makes no difference. Given the frequent occurrence of such economic invasions, with the backing of soldiers of the Imperial Army, with the overt aid of the Imperial Railway, and with the refusal of Imperial officials to intervene, there is clear evidence of the attitude and intention of the Japanese government in Shantung.

Now, even if we acknowledge that this is typical of how the Japanese operate, an instinctive American response might be to argue that the country is economically strengthened by these businesses, and that while some individuals' rights may have been compromised, there's no reason for a national, let alone international, uproar. More or less unconsciously, we interpret foreign occurrences through the lens of our own experiences and surroundings, thus missing the whole point. Since America was mostly built up using foreign investment to our own economic advantage, and without political interference, we might naively assume that a similar separation of economic and political matters is feasible in China. However, it’s important to remember that China is not an open country. Foreigners can lease land, run businesses, and manufacture only according to specific treaty agreements. There aren't any such agreements in situations like the Po-shan incident. We might strongly disagree with China's closed economic policy, or we might think that given the current circumstances, it’s a prudent choice for them. That doesn’t change anything. Given the repeated instances of these economic takeovers, supported by troops from the Imperial Army, aided openly by the Imperial Railway, and with Imperial officials refusing to step in, there’s clear evidence of the Japanese government's attitude and intentions in Shantung.

Because the population of Shantung is directly confronted with an immense amount of just such evidence, it cannot take seriously the professions of vague diplomatic utterances. What foreign nation is going to intervene to enforce Chinese rights in such a case as Po-shan? Which one is going effectively to call the attention of Japan to such evidences of its failure to carry out its promise? Yet the accumulation of precisely such seemingly petty incidents, and not any single dramatic great wrong, will secure Japan’s economic and political domination of Shantung. It is for this reason that foreigners resident in Shantung, no matter in what part, say that they see no sign whatever that Japan is going to get out; that, on the contrary, everything points to a determination to consolidate her position. How long ago was the Portsmouth treaty signed, and what were its nominal pledges about evacuation of Manchurian territory?

Because the people of Shantung are directly faced with a huge amount of just such evidence, they can't take vague diplomatic statements seriously. Which foreign nation is going to step in to enforce Chinese rights in a situation like Po-shan? Which one is going to effectively draw Japan's attention to its failures in keeping promises? Yet, it’s the accumulation of these seemingly minor incidents, rather than any single dramatic injustice, that will secure Japan’s economic and political control over Shantung. This is why foreigners living in Shantung, regardless of where they are, say they see no signs that Japan intends to leave; on the contrary, everything suggests a determination to solidify its position. How long ago was the Portsmouth treaty signed, and what were its stated commitments about evacuating Manchurian territory?

Not a month will pass without something happening which will give a pretext for delay, and for making the surrender of Shantung conditional upon this, that and the other thing. Meantime the penetration of Shantung by means of railway discrimination, railway military guards, continual nibblings here and there, will be going on. It would make the chapter too long to speak of the part played by manipulation of finance in achieving this process of attrition of sovereignty. Two incidents must suffice. During the war, Japanese traders with the connivance of their government gathered up immense amounts of copper cash from Shantung and shipped it to Japan against the protests of the Chinese government. What does sovereignty amount to when a country cannot control even its own currency system? In Manchuria the Japanese have forced the introduction of several hundred million dollars of paper currency, nominally, of course, based on a gold reserve. These notes are redeemable, however, only in Japan proper. And there is a law in Japan forbidding the exportation of gold. And there you are.

Not a month goes by without something happening that gives an excuse for delay and for making the surrender of Shantung conditional on this, that, and the other thing. In the meantime, the infiltration of Shantung through railway discrimination, military guards on the railways, and constant small encroachments will continue. It would take too long to discuss the role that financial manipulation plays in this erosion of sovereignty. Two incidents will have to do. During the war, Japanese traders, with their government’s help, collected massive amounts of copper cash from Shantung and shipped it to Japan despite the Chinese government's protests. What does sovereignty mean when a country can't even control its own currency system? In Manchuria, the Japanese have imposed the use of several hundred million dollars in paper currency, which is supposedly backed by gold reserves. However, these notes can only be redeemed in Japan itself. Plus, there's a law in Japan that prohibits the export of gold. And there you have it.

Japan itself has recently afforded an object lesson in the actual  connection of economic and political rights in China. It is so beautifully complete a demonstration that it was surely unconscious. Within the last two weeks, Mr. Obata, the Japanese minister in Peking, has waited upon the government with a memorandum saying that the Foochow incident was the culminating result of the boycott; that if the boycott continues, a series of such incidents is to be apprehended, saying that the situation has become “intolerable” for Japan, and disavowing all responsibility for further consequences unless the government makes a serious effort to stop the boycott. Japan then immediately makes certain specific demands. China must stop the circulation of handbills, the holding of meetings to urge the boycott, the destruction of Japanese goods that have become Chinese property—none have been destroyed that are Japanese owned. Volumes could not say more as to the real conception of Japan of the connection between the economic and the political relations of the two countries. Surely the pale ghost of “Sovereignty” smiled ironically as he read this official note. President Wilson after having made in the case of Shantung a sharp and complete separation of economic and political rights, also said that a nation boycotted is within sight of surrender. Disassociation of words from acts has gone so far in his case that he will hardly be able to see the meaning of Mr. Obata’s communication. The American sense of humor and fair-play may however be counted upon to get its point.

Japan has recently provided a clear example of the link between economic and political rights in China. It’s such a complete demonstration that it was likely unintentional. In the past two weeks, Mr. Obata, the Japanese minister in Beijing, has approached the government with a memo saying that the Foochow incident was the end result of the boycott; that if the boycott continues, a series of similar incidents is expected, stating that the situation has become “intolerable” for Japan, and rejecting all responsibility for further consequences unless the government seriously tries to stop the boycott. Japan then immediately makes certain specific demands. China must halt the distribution of flyers, stop meetings that promote the boycott, and prevent the destruction of Japanese goods that have become Chinese property—none of which have been destroyed that are Japanese-owned. This underscores Japan's true understanding of the relationship between the economic and political ties of the two countries. Surely, the faint echo of “Sovereignty” would have ironically smiled upon reading this official note. President Wilson, after creating a clear separation of economic and political rights in the case of Shantung, also stated that a nation under boycott is close to surrender. The disconnection of words from actions in his case has progressed so far that he will likely struggle to grasp the meaning of Mr. Obata’s message. However, the American sense of humor and fairness can be counted on to understand its point.

III
Hinterlands in China

One of the two Presidents of China—it is unnecessary to specify which—recently stated that a renewal of the Anglo-Japanese alliance meant a partition of China. In this division, Japan would take the north and Great Britain the south. Probably the remark was not meant to be taken literally in the sense of formal conquest or annexation, but rather symbolically with reference to the tendency of policies  and events. Even so, the statement will appear exaggerated or wild to persons outside of China, who either believe that the Open Door policy is now irrevocably established or that Japan is the only foreign Power which China has to fear. But a recent visit to the south revealed that in that section, especially in Canton, the British occupy much the same position of suspicion and dread which is held by the Japanese in the north.

One of the two Presidents of China—it’s not necessary to say which—recently said that a renewal of the Anglo-Japanese alliance meant a split in China. In this split, Japan would take the north and Great Britain the south. The remark was probably not meant to be taken literally in terms of formal conquest or annexation, but rather symbolically regarding the direction of policies   and events. Even so, the statement might seem exaggerated or outrageous to people outside of China, who either think the Open Door policy is now permanently established or that Japan is the only foreign power China has to worry about. However, a recent trip to the south showed that in that area, particularly in Canton, the British are viewed with the same suspicion and fear that the Japanese face in the north.

Upon the negative side, the Japanese menace is negligible in the province of Kwantung, in which Canton is situated. There are said to be more Americans in Canton than Japanese, and the American colony is not extensive. Upon the positive side the history of the Cassell collieries contract is instructive. It illustrates the cause of the popular attitude toward the British, and quite possibly explains the bitterness in the remark quoted. The contract is noteworthy from whatever standpoint it is viewed, whether that of time, of the conditions it contains or of the circumstances which accompany it.

On the downside, the Japanese threat is minimal in the Kwantung province, where Canton is located. It's said that there are more Americans in Canton than Japanese, and the American community isn’t that large. On the upside, the history of the Cassell collieries contract is instructive. It sheds light on the public’s attitude toward the British and likely explains the resentment in the quoted remark. The contract is significant from any perspective, whether considering the timing, its conditions, or the surrounding circumstances.

Premising that the contract delivers to a British company a monopoly of the rich coal deposits of the province for a period of ninety years and—quite incidentally of course—the right to use all means of transportation, water or rail, wharves and ports now in existence, and also to “construct, manage, superintend and work other roads, railways waterways as may be deemed advisable”—which reads like a monopoly of all further transportation facilities of the province—first take up the time of the making of the contract. It was drawn in April, 1920 and confirmed a few months later. It was made, of course, with the authorities of the Kwantung province, subject to confirmation at Peking. During this period, Kwantung province was governed by military carpet-baggers from the neighboring province of Kwangsei, which was practically alone of the southern provinces allied with the northern government, then under the control of the Anfu party. It was matter of common knowledge that the people of Canton and of the province were bitterly hostile to this outside control and submitted to it only because of military coercion. Civil strife for the expulsion of the outsiders was already going on, continually gaining headway, and a few months later the Kwangsei troops were defeated and expelled from the province by the forces of General  Chen, now the civil governor of Kwantung, who received a triumphal ovation upon his entrance into Canton. At this time the present native government was established, a change which made possible the return of Sun Yat Sen and his followers from their exile in Shanghai. It is evident, then, that the collieries contract giving away the natural resources of the people of the province, was knowingly made by a British company with a government which no more represented the people of the province than the military government of Germany represented the people of Belgium during the war.

Premising that the contract grants a British company a monopoly of the rich coal deposits in the province for a period of ninety years and—just incidentally—the right to use all types of transportation, including water and rail, existing docks and ports, and to "construct, manage, oversee, and operate any other roads, railways, or waterways as deemed necessary"—which effectively gives a monopoly over future transportation options in the province—let's first discuss how the contract came to be. It was created in April 1920 and confirmed a few months later. It was signed, of course, with the authorities of Kwantung province, subject to approval in Peking. At that time, Kwantung was ruled by military opportunists from the neighboring province of Kwangsei, which was one of the few southern provinces aligned with the northern government, controlled at that time by the Anfu party. It was well-known that the people of Canton and the province were strongly opposed to this external control and only accepted it because of military force. Civil unrest aimed at expelling the outsiders was already underway and gaining momentum, and a few months later Kwangsei troops were defeated and expelled from the province by General   Chen's forces, who became the civil governor of Kwantung and received a hero's welcome upon entering Canton. This was when the current local government was established, which allowed Sun Yat Sen and his supporters to return from their exile in Shanghai. It's clear, then, that the colliery contract, which handed over the province's natural resources, was knowingly signed by a British company with a government that represented the people of the province as little as the military government of Germany represented the people of Belgium during the war.

As to the terms of the contract, the statement that it gave the British company a monopoly of all the coal mines in the province, was not literally accurate. Verbally, twenty-two districts are enumerated. But these are the districts along the lines of the only railways in the province and the only ones soon to be built, including the as yet uncompleted Hankow-Canton railway. Possibly this fact accounts for the anxiety of the British partners in the Consortium that the completion of this line be the first undertaking financed by the Consortium. The document also includes what is perhaps a novelty in legal documents having such a momentous economic importance, namely, the words “etc.” after the districts enumerated by name.

Regarding the contract terms, the claim that it granted the British company a monopoly over all the coal mines in the province wasn't entirely accurate. In detail, twenty-two districts are listed. However, these are only the districts along the existing railways in the province and the ones that are soon to be built, including the still unfinished Hankow-Canton railway. This might explain the concern of the British partners in the Consortium that finishing this line should be the first project funded by the Consortium. The document also features what may be a first in legal documents of such significant economic importance: the inclusion of "etc." after the named districts.

For this concession, the British syndicate agreed to pay the provincial government the sum of $1,000,000 (silver of course). This million dollars is to bear six per cent interest to the company, and capital and interest are to be paid back to the company by the provincial government out of the dividends (if any) it is to receive. The nature of these “dividends” is set forth in an article which should receive the careful attention of promoters elsewhere as a model of the possibilities of exploiting contracts. The ten million capital is divided equally into “A” shares and “B” shares. The “A” shares go unreservedly to the directors of the company, and three millions of the “B” shares are to be allotted by the directors of the company at their discretion. The other two million are again divided into equal portions, one portion representing the sum advanced by the company to the province and to be paid back as just specified, while the other million—one-tenth of the capitalization—is to be a trust fund the dividends of which are to go for the “benefit of the poor people of the province” and  for an educational fund for the province. But before any dividends are paid upon the “B” shares, eight per cent dividends are to be paid upon the “A” shares and a dollar a ton royalty upon all coal mined. Those having any familiarity with the coal business with its usual royalty of about ten cents a ton can easily calculate the splendid prospects of the “poor people” and the schools, prospects which represent the total return to the provinces of a concession of untold worth. The contract also guarantees to the company the assistance of the provincial government in expropriating the owners of all coal mines which have been granted to other companies but not yet worked. These technical details make dry reading, but they throw light upon the spirit with which the British company undertook its predatory negotiations with a government renounced by the people it professed to govern. In comparison with the relatively crude methods of Japan in Shantung, they show the advantages of wide business experience.

For this agreement, the British syndicate decided to pay the provincial government $1,000,000 (in silver, of course). This million dollars will earn six percent interest for the company, and both the capital and interest will be repaid to the company by the provincial government from the dividends (if any) it receives. The nature of these “dividends” is detailed in an article that should be closely examined by promoters elsewhere as a model for how to exploit contracts. The ten million capital is divided equally into “A” shares and “B” shares. The “A” shares are allocated entirely to the company’s directors, and three million of the “B” shares will be distributed by the directors at their discretion. The remaining two million are divided into equal parts, one part reflecting the amount advanced by the company to the province, which will be paid back as previously mentioned, while the other million—one-tenth of the total capitalization—will serve as a trust fund, with dividends going towards the “benefit of the poor people of the province” and   for an educational fund for the province. However, before any dividends are distributed on the “B” shares, eight percent dividends must be paid on the “A” shares and a dollar a ton royalty on all coal mined. Those familiar with the coal industry, which typically has a royalty of about ten cents a ton, can easily see the fantastic prospects for the “poor people” and the schools—prospects that represent the total return for the provinces from a concession of immense value. The contract also ensures the company receives help from the provincial government in expropriating the owners of all coal mines granted to other companies but not yet in operation. These technicalities may seem dull, but they illuminate the approach with which the British company conducted its exploitative negotiations with a government abandoned by the very people it claimed to govern. In contrast to the relatively crude methods of Japan in Shantung, they highlight the benefits of extensive business experience.

As for the circumstances and context which give added menace to the contract, the following facts are significant. Hong Kong, a British crown colony, lies directly opposite the river upon which Canton is situated. It is the port of export and import for the vast districts served by the mines and railways of the province. It is unnecessary to point out the hold upon all economic development which is given through a monopolistic control of coal. It is hardly too much to say that the enforcement of the contract would enable British interests in Hong Kong to control the entire industrial development of the most flourishing of the provinces of China. It would be a comparatively easy and inexpensive matter to provide the main land with a first class modern harbor and port near Canton. But such a port would tend to reduce the assets of Hong Kong to the possession of the most beautiful scenery in the world. There is already fear that a new harbor will be built. Many persons think that the concession of building such railways etc., “as are deemed advisable for the purpose of the business of the company and to improve those now existing” is the object of the contract, even more than the coal monopoly. For the British already own a considerable part of the mainland, including part of the railway connecting the littoral with Canton. By building a cross-cut from the British owned portion of this railway  to the Hankow-Canton line, the latter would become virtually the Hankow-Hong Kong line, and Canton would be a way-station. With the advantages thus secured, the project for building a new port could be indefinitely blocked.

As for the circumstances and context that add to the threat of the contract, the following facts are important. Hong Kong, a British crown colony, is directly across the river from Canton. It serves as the main port for exporting and importing goods for the vast areas served by the province's mines and railways. It's obvious how much economic growth can be controlled through a monopoly on coal. It's not an exaggeration to say that enforcing the contract would allow British interests in Hong Kong to dominate the entire industrial development of one of China's most prosperous provinces. Creating a top-notch, modern harbor and port near Canton would be relatively easy and cost-effective. However, such a port would likely limit Hong Kong's advantages to just having some of the most stunning scenery in the world. There are already concerns that a new harbor will be built. Many believe that the contract's real goal is to grant permission to build railways and other necessary improvements even more than securing the coal monopoly. The British already control a significant part of the mainland, including part of the railway linking the coast to Canton. By extending a branch from the British-owned section of this railway to the Hankow-Canton line, the latter would essentially become the Hankow-Hong Kong line, turning Canton into just a stop along the way. With these advantages in hand, plans for building a new port could be indefinitely stalled.

During the period in which the contract was being secured, a congress of British Chambers of Commerce was held in Shanghai. Resolutions were passed in favor of abolishing henceforth the whole principle of special nationalistic concessions, and of cooperating with the Chinese for the upbuilding of China. At the close of the meeting the Chairman announced that a new era for China had finally dawned. All of the British newspapers in China lauded the wise action of the Chambers. At the same time, Mr. Lamont was in Peking, and was setting forth that the object of the Consortium was the abolition of further concessions, and the uniting of the financial resources of the banks in the Consortium for the economic development of China itself. By an ironical coincidence, the Hong Kong-Shanghai Bank, which is the financial power behind the contract and the new company, is the leading British partner in the Consortium. It is difficult to see how the British can henceforth accuse the Japanese of bad faith if any of the banking interests of that country should enter upon independent negotiations with any government in China.

During the time the contract was being finalized, a congress of British Chambers of Commerce took place in Shanghai. They passed resolutions in favor of ending all special nationalistic concessions and collaborating with the Chinese to help rebuild China. At the end of the meeting, the Chairman declared that a new era for China had finally begun. All the British newspapers in China praised the Chambers' wise decision. Meanwhile, Mr. Lamont was in Beijing, stating that the goal of the Consortium was to eliminate further concessions and combine the financial resources of the banks in the Consortium for China's economic development. Ironically, the Hong Kong-Shanghai Bank, which is the financial backbone of the contract and the new company, is the leading British partner in the Consortium. It's hard to understand how the British can now accuse the Japanese of bad faith if any banking interests from Japan decide to negotiate independently with any Chinese government.

By the time the scene of action was transferred to Peking in order to secure the confirmation of the central government, the Anfu regime was no more, and as yet no confirmation has been secured. The new government at Canton has declined to recognize the contract as having any validity. An official of the Hong Kong government has told an official of the Canton government that the Hong Kong government stands behind the enforcement of the contract, and that Kwantung province is a British Hinterland. Within the last few weeks the Governor of Hong Kong and a leading Chinese banker of Hong Kong who is a British subject have visited Peking. Rumors were rife in the south as to the object of the visit. British sources published the report that one object was to return Weihaiwei to China—in case Peking agreed to turn over more of the Kwantung mainland to Hong Kong as a quid pro quo. Chinese opinion in the south was that one main object was to secure the Peking confirmation of the Cassell contract, in which case  $900,000 more would be forthcoming, $100,000 having been paid down when the contract was signed with the provincial government. Peking does not recognize the present Canton government but regards it as an outlaw. The crowd that signed the contract is still in control of the neighboring province of Kwangsei and they are relied upon by the north to effect the military subjugation of the seceded province. Fighting has already, indeed, begun, but the Kwangsei militarists are badly in need of money; if Peking ratifies the contract, a large part of the funds will be paid over to them—all that isn’t lost by the wayside to the northern militarists.1 Meantime British news agencies keep up a constant circulation of reports tending to discredit the Kwantung government, although all impartial observers on the spot regard it as altogether the most promising one in China.

By the time the action moved to Beijing to get the central government's confirmation, the Anfu regime was gone, and no confirmation had been obtained yet. The new government in Canton refused to acknowledge the contract as valid. An official from the Hong Kong government informed an official from the Canton government that they support enforcing the contract and that Kwantung province is considered British territory. In the past few weeks, the Governor of Hong Kong and a prominent Chinese banker in Hong Kong, who is a British citizen, visited Beijing. There were many rumors in the south about the purpose of their visit. British sources reported that one aim was to return Weihaiwei to China if Beijing agreed to transfer more of the Kwantung mainland to Hong Kong in exchange. Chinese opinion in the south suggested that one main goal was to obtain Beijing's confirmation of the Cassell contract, which would result in an additional $900,000, with $100,000 already paid when the contract was signed with the provincial government. Beijing does not recognize the current Canton government and views it as illegitimate. The group that signed the contract is still in control of the nearby Kwangsei province and is relied upon by the north to help conquer the seceded province. Fighting has already begun, but the Kwangsei military leaders are in desperate need of funds; if Beijing ratifies the contract, a significant portion of the money will be allocated to them—all that isn’t lost to the northern military leaders. Meanwhile, British news agencies continue to circulate reports that aim to undermine the Kwantung government, even though all impartial observers on the ground consider it to be the most promising government in China.

These considerations not only throw light on some of the difficulties of the functioning of the Consortium, but they give an indispensable background for judging the actual effect of the renewal of the Anglo-Japanese alliance. By force of circumstances each government, even against its own wish, will be compelled to wink at the predatory policies of the other; and the tendency will be to create a division of spheres of influence between the north and south in order to avoid more direct conflicts. The English liberals who stand for the renewal of the alliance on the ground that it will enable England to exercise a check on Japanese policies, are more naïve than was Mr. Wilson with his belief in the separation of the economic and political control of Shantung.

These considerations not only shed light on some of the challenges faced by the Consortium, but also provide essential context for evaluating the real impact of renewing the Anglo-Japanese alliance. Due to the circumstances, each government, even if they don’t want to, will have to overlook the aggressive policies of the other; and the trend will be to establish a division of influence between the north and south to prevent more direct conflicts. The English liberals advocating for the renewal of the alliance, believing it will allow England to monitor Japanese policies, are more naïve than Mr. Wilson was with his faith in separating the economic and political control of Shantung.

It cannot be too often repeated that the real point of friction between the United States and Japan is not in California but in China. It is silly—unless it is calculated—for English authorities to keep repeating that under no circumstances does the alliance mean that Great Britain would support Japan in a war with the United States. The day the alliance is renewed, the hands of the militarists in Japan will be strengthened and the hands of the liberals—already weak enough—be still further weakened. In consequence, all the sources of friction in China between the United States and Japan will be intensified. I do not believe in the predicted war. But should it come, the  first act of Japan—so everyone in China believes—will be to seize the ports of northern China and its railways in order to make sure of an uninterrupted supply of food and raw materials. The act would be justified as necessary to national existence. Great Britain in alliance with Japan would be in no position to protest in anything but the most perfunctory way. The guarantee of such abstinence would be for Japan the next best thing to open naval and financial support. Without the guarantee they would not dare the seizure of Chinese ports. In recent years diplomatists have shown themselves capable of unlimited stupidity. But it is not possible that the men in the British Foreign Office are not aware of these elementary facts. If they renew the alliance they knowingly take the responsibility for the consequences.

It cannot be stressed enough that the main source of tension between the United States and Japan is not in California, but in China. It's foolish—unless it’s intentional—for British officials to keep insisting that the alliance means Great Britain would never support Japan in a conflict with the United States. The moment the alliance is renewed, it will strengthen the militarists in Japan and weaken the already fragile liberals even more. As a result, all the points of conflict in China between the United States and Japan will escalate. I don’t believe in the anticipated war. But if it happens, the first move Japan will make—so everyone in China believes—will be to seize the ports and railways in northern China to ensure a steady supply of food and raw materials. This action would be justified as essential for national survival. Great Britain, allied with Japan, would have no choice but to protest in a very minimal way. The assurance of such restraint would be almost as good as open naval and financial support for Japan. Without that guarantee, they wouldn’t risk taking Chinese ports. In recent years, diplomats have shown a knack for vast foolishness. But it's hard to believe the people in the British Foreign Office are unaware of these basic facts. If they renew the alliance, they are taking responsibility for the outcomes.

IV
A Political Upheaval in China

Even in America we have heard of one Chinese revolution, that which thrust the Manchu dynasty from the throne. The visitor in China gets used to casual references to the second revolution, that which frustrated Yuan Shi Kai’s aspirations to be emperor, and the third, the defeat in 1917 of the abortive attempt to put the Manchu boy emperor back into power. And within the last few weeks the (September 1920) fourth upheaval has taken place. It may not be dignified by the name of the fourth revolution, for the head of the state has not been changed by it. But as a manifestation of the forces that shape Chinese political events, for evil and for good, perhaps this last disturbance surpasses the last two “revolutions” in significance.

Even in America, we've heard of the Chinese revolution that removed the Manchu dynasty from power. Visitors to China often hear casual mentions of the second revolution, which dashed Yuan Shi Kai's ambitions to become emperor, and the third, which was the failed attempt in 1917 to restore the Manchu boy emperor to the throne. Recently, another upheaval occurred in September 1920. It might not be called the fourth revolution since it didn't change the head of state. However, as a reflection of the forces that drive Chinese political events—both for better and worse—this latest disturbance might be more significant than the last two "revolutions."

Chinese politics in detail are highly complicated, a mess of personalities and factions whose oscillations no one can follow who does not know a multitude of personal, family and provincial histories. But occasionally something happens which simplifies the tangle. Definite outlines frame themselves out of the swirling criss-cross of strife, intrigue and ambition. So,  at present, the complete collapse of the Anfu clique which owned the central government for two years marks the end of that union of internal militarism and Japanese foreign influence which was, for China, the most marked fruit of the war. When China entered the war a “War Participation” army was formed. It never participated; probably it was never meant to. But its formation threw power wholly into the hands of the military clique, as against the civilian constitutionalists. And in return for concessions, secret agreements relating to Manchuria, Shantung, new railways, etc., Japan supplied money, munitions, instructors for the army and a benevolent supervision of foreign and domestic politics. The war came to an unexpected and untimely end, but by this time the offspring of the marriage of the militarism of Yuan Shi Kai and Japanese money and influence was a lusty youth. Bolshevism was induced to take the place of Germany as a menace requiring the keeping up of the army, and loans and teachers. Mongolia was persuaded to cut her strenuous ties with Russia, to renounce her independence and come again under Chinese sovereignty.

Chinese politics are incredibly complicated, a jumble of personalities and factions that no one can keep up with unless they know a lot about various personal, family, and regional histories. But sometimes, something happens that simplifies the chaos. Clear outlines emerge from the swirling mix of conflict, intrigue, and ambition. So,   right now, the complete collapse of the Anfu clique, which controlled the central government for two years, marks the end of that alliance between internal militarism and Japanese foreign influence, which was the most significant outcome of the war for China. When China entered the war, a "War Participation" army was established. It never actually participated; it was probably never intended to. However, its formation completely shifted power into the hands of the military clique, sidelining the civilian constitutionalists. In return for concessions and secret agreements involving Manchuria, Shantung, new railways, etc., Japan provided money, weapons, military instructors, and supervised foreign and domestic politics kindly. The war ended unexpectedly and prematurely, but by then, the result of the partnership between Yuan Shi Kai's militarism and Japanese money and influence had grown into a strong force. Bolshevism was positioned to replace Germany as a threat that justified maintaining the army, as well as loans and educators. Mongolia was encouraged to sever its strong ties with Russia, give up its independence, and come back under Chinese sovereignty.

The army and its Japanese support and instruction was, accordingly, continued. In place of the “War Participation” army appeared the “Frontier Defense” army. Marshal Tuan, the head of the military party, remained the nominal political power behind the presidential chair, and General Hsu (commonly known as little Hsu, in distinction from old Hsu, the president) was the energetic manager of the Mongolian adventure which, by a happy coincidence, required a bank, land development companies and railway schemes, as well as an army. About this military centre as a nucleus gathered the vultures who fed on the carrion. This flock took the name of the Anfu Club. It did not control the entire cabinet, but to it belonged the Minister of Justice, who manipulated the police and the courts, persecuted the students, suppressed liberal journals and imprisoned inconvenient critics. And the Club owned the ministers of finance and communications, the two cabinet places that dispense revenues, give out jobs and make loans. It also regulated the distribution of intelligence by mail and telegraph. The reign of corruption and despotic inefficiency, tempered only by the student revolt, set in. In two years the Anfu Club got away with two hundred millions of  public funds directly, to say nothing of what was wasted by incompetency and upon the army. The Allies had set out to get China into the war. They succeeded in getting Japan into control of Peking and getting China, politically speaking, into a seemingly hopeless state of corruption and confusion.

The army, along with its Japanese support and training, continued to operate. The “War Participation” army was replaced by the “Frontier Defense” army. Marshal Tuan, the leader of the military faction, remained the nominal political power behind the presidency, while General Hsu (commonly referred to as little Hsu to differentiate him from old Hsu, the president) energetically managed the Mongolian campaign that coincidentally needed funding, land development companies, railway projects, and an army. Around this military center, a group of opportunists, known as the Anfu Club, gathered. They didn’t control the entire cabinet, but they did have the Minister of Justice, who manipulated the police and courts, persecuted students, silenced liberal publications, and imprisoned troublesome critics. The Club also had a grip on the ministers of finance and communications, the two cabinet roles responsible for managing revenue, distributing jobs, and issuing loans. They controlled the flow of information through mail and telegraph as well. A reign of corruption and ineffective despotism began, only disrupted by student protests. In two years, the Anfu Club managed to misappropriate two hundred million of   public funds, not to mention the money wasted due to incompetence and on the army. The Allies aimed to draw China into the war. They succeeded in putting Japan in control of Peking, leaving China, politically, in a seemingly hopeless situation of corruption and chaos.

The militaristic or Pei-Yang party was, however, divided into two factions, each called after a province. The Anwhei party gathered about little Hsu and was almost identical with the Anfus. The Chili faction had been obliged, so far as Peking was concerned, to content itself with such leavings as the Anfu Club tossed to it. Apparently it was hopelessly weaker than its rival, although Tuan, who was personally honest and above financial scandal, was supported by both factions and was the head of both. About three months ago there were a few signs that, while the Anfu Club had been entrenching itself in Peking, the rival faction had been quietly establishing itself in the provinces. A league of Eight Tuchuns (military governors of the provinces) came to the assistance of the president against some unusually strong pressure from the Anfu Club. In spite of the fact that the military governor of the three Manchurian provinces, Chang Tso Lin, popularly known as the Emperor of Manchuria, lined up with this league, practically nobody expected anything except some manœuvering to get a larger share of the spoils.

The militaristic Pei-Yang party was divided into two factions, each named after a province. The Anhwei faction rallied around little Hsu and was almost identical to the Anfu group. The Chili faction had to settle for whatever leftovers the Anfu Club offered, as far as Peking was concerned. It seemed to be hopelessly weaker than its rival, even though Tuan, who was personally honest and above financial scandals, was supported by both factions and led them both. About three months ago, there were some signs that while the Anfu Club was solidifying its power in Peking, the rival faction had been quietly establishing itself in the provinces. A coalition of eight Tuchuns (military governors of the provinces) came to the president's aid against some unusually strong pressure from the Anfu Club. Despite the fact that the military governor of the three Manchurian provinces, Chang Tso Lin, known as the Emperor of Manchuria, sided with this coalition, practically no one expected anything beyond some maneuvering to grab a bigger share of the loot.

But late in June the president invited Chang Tso Lin to Peking. The latter saw Tuan, told him that he was surrounded by evil advisers, demanded that he cut loose from little Hsu and the Anfu Club, and declared open war upon little Hsu—the two had long and notoriously been bitter enemies. Even then people had great difficulty in believing that anything would happen except another Chinese compromise. The president was known to be sympathetic upon the whole with the Chili faction, but the president, if not a typical Chinese, is at least typical of a certain kind of Chinese mandarin, non-resistant, compromising, conciliating, procrastinating, covering up, evading issues, face-saving. But finally something happened. A mandate was issued dismissing little Hsu from office, military and civil, dissolving the frontier defense corps as such, and bringing it under the control of the Ministry of War (usually armies in China belong to some general or Tuchun, not to the  country). For almost forty-eight hours it was thought that Tuan had consented to sacrifice little Hsu and that the latter would submit at least temporarily. Then with equally sensational abruptness Tuan brought pressure to bear on the president. The latter was appointed head of a national defense army, and rewards were issued for the heads of the chiefs of the Chili faction, nothing, however, being said about Chang Tso Lin, who had meanwhile returned to Mukden and who still professed allegiance to Tuan. Troops were mobilized; there was a rush of officials and of the wealthy to the concessions of Tientsin and to the hotels of the legation quarter.

But late in June, the president invited Chang Tso Lin to Beijing. Chang met with Tuan, told him that he was surrounded by bad advisers, demanded that he break away from little Hsu and the Anfu Club, and declared open war on little Hsu — the two had long been notorious rivals. Even then, people found it hard to believe that anything would happen, other than another compromise in China. The president was generally sympathetic to the Chili faction, but while he wasn’t a typical Chinese, he did fit the mold of a certain kind of Chinese mandarin: non-resistant, compromising, conciliatory, procrastinating, covering up, evading issues, and saving face. But finally, something happened. A mandate was issued dismissing little Hsu from all positions, both military and civil, dissolving the frontier defense corps, and bringing it under the control of the Ministry of War (usually, armies in China belong to some general or Tuchun, not to the country). For almost forty-eight hours, it seemed like Tuan had agreed to sacrifice little Hsu and that Hsu would at least temporarily submit. Then, with equally dramatic suddenness, Tuan applied pressure on the president. The president was appointed head of a national defense army, and bounties were announced for the heads of the leaders of the Chili faction, although nothing was mentioned about Chang Tso Lin, who had meanwhile returned to Mukden and still claimed loyalty to Tuan. Troops were mobilized; there was a rush of officials and wealthy people to the concessions in Tianjin and the hotels in the legation quarter.

This sketch is not meant as history, but simply as an indication of the forces at work. Hence it is enough to say that two weeks after Tuan and little Hsu had intimidated the president and proclaimed themselves the saviors of the Republic, they were in hiding, their enemies of the Chili party were in complete control of Peking, and rewards from fifty thousand dollars down were offered for the arrest of little Hsu, the ex-ministers of justice, finance and communications, and other leaders of the Anfu Club. The political turnover was as complete as it was sensational. The seemingly impregnable masters of China were impotent fugitives. The carefully built up Anfu Club, with its military, financial and foreign support, had crumbled and fallen. No country at any time has ever seen a political upheaval more sudden and more thoroughgoing. It was not so much a defeat as a dissolution like that of death, a total disappearance, an evaporation.

This account isn't intended to be a historical record, but rather a glimpse into the forces at play. So it's sufficient to say that two weeks after Tuan and little Hsu had intimidated the president and declared themselves the saviors of the Republic, they were in hiding, their enemies from the Chili party had taken full control of Peking, and rewards ranging from fifty thousand dollars and up were being offered for the capture of little Hsu, the former ministers of justice, finance, and communications, along with other leaders of the Anfu Club. The political shift was as dramatic as it was complete. The once unassailable rulers of China had become powerless fugitives. The Anfu Club, which had been carefully established with military, financial, and foreign backing, had disintegrated and collapsed. No country has ever experienced a political upheaval as sudden and all-encompassing as this. It wasn't merely a defeat; it was a dissolution akin to death, a total vanishing, an evaporation.

Corruption had worked inward, as it has a way of doing. Japanese-bought munitions would not explode; quartermasters vanished with the funds with which stores were to be bought; troops went without anything to eat for two or three days; large numbers, including the larger part of one division, went over to the enemy en masse; those who did not desert had no heart for fighting and ran away or surrendered on the slightest provocation, saying they were willing to fight for their country but saw no reason why they should fight for a faction, especially a faction that had been selling the country to a foreign nation. In the manner of the defeat of the Anfu clique at the height of its supremacy, rather than in the mere fact of its defeat, lies the credit side of the Chinese political balance sheet. It is a striking  exhibition of the oldest and best faith of the Chinese—the power of moral considerations. Public opinion, even that of the coolie on the street, was wholly against the Anfu party. It went down not so much because of the strength of the other side as because of its own rottenness.

Corruption had worked its way in, as it often does. Munitions bought from the Japanese wouldn’t explode; quartermasters disappeared with the funds meant for supplies; troops went without food for two or three days; a large number, including most of one division, defected to the enemy en masse; those who didn't desert lacked the will to fight and either ran away or surrendered at the slightest provocation, claiming they were willing to fight for their country but saw no reason to fight for a faction, especially one that had been selling out the country to a foreign nation. In the way the Anfu clique was defeated at the height of its power, rather than simply in the fact of its defeat, lies the positive side of the Chinese political balance sheet. It’s a striking   exhibition of the oldest and best belief of the Chinese—the power of moral considerations. Public opinion, even that of the laborers on the street, was completely against the Anfu party. It fell not so much because of the strength of the opposition but because of its own decay.

So far the results are to all appearances negative. The most marked is the disappearance of Japanese prestige. As one of the leading men in the War Office said: “For over a year now the people have been strongly opposed to the Japanese government on account of Shantung. But now even the generals do not care for Japan any more.” It is hardly logical to take the easy collapse of the Japanese-supported Anfu party as a proof of the weakness of Japan, but prestige is always a matter of feeling rather than of logic. Many who were intimidated to the point of hypnotism by the idea of the irresistible power of Japan are now freely laughing at the inefficiency of Japanese leadership. It would not be safe to predict that Japan will not come back as a force to be reckoned with in the internal as well as external politics of China, but it is safe to say that never again will Japan figure as superman to China. And such a negation is after all a positive result.

So far, the results seem to be negative. The most noticeable change is the decline in Japanese prestige. As one of the top officials in the War Office mentioned: “For over a year now, people have strongly opposed the Japanese government because of Shantung. But now even the generals have lost interest in Japan.” It doesn’t really make sense to interpret the easy collapse of the Japanese-backed Anfu party as proof of Japan's weakness, but prestige is more about perception than logic. Many who were once intimidated to the point of being mesmerized by the notion of Japan's unstoppable power are now openly mocking the ineffectiveness of Japanese leadership. While it wouldn't be wise to predict that Japan won't reemerge as a significant force in both Chinese internal and external politics, it's safe to say that Japan will never again be seen as a superpower by China. In the end, such a turnaround is, after all, a positive outcome.

And so in its way is the overthrow of the Anwhei faction of the militarist party. The Chinese liberals do not feel very optimistic about the immediate outcome. They have mostly given up the idea that the country can be reformed by political means. They are sceptical about the possibility of reforming even politics until a new generation comes on the scene. They are now putting their faith in education and in social changes which will take some years to consummate themselves visibly. The self-styled southern republican constitutional party has not shown itself in much better light than the northern militarist party. In fact, its old leader Sun Yat Sen now cuts one of the most ridiculous figures in China, as shortly before this upheaval he had definitely aligned himself with Tuan and little Hsu.2

And so, in its own way, is the overthrow of the Anwhei faction of the militarist party. The Chinese liberals don't feel very optimistic about the immediate outcome. They have mostly given up on the idea that the country can be reformed through political means. They are skeptical about the possibility of even reforming politics until a new generation comes onto the scene. They are now putting their faith in education and in social changes that will take several years to become noticeable. The self-styled southern republican constitutional party hasn't presented itself in a much better light than the northern militarist party. In fact, its former leader Sun Yat Sen now looks quite ridiculous in China, as just before this upheaval, he had clearly aligned himself with Tuan and little Hsu.2

 This does not mean, however, that democratic opinion thinks nothing has been gained. The demonstration of the inherent weakness of corrupt militarism will itself prevent the development of any militarism as complete as that of the Anfus. As one Chinese gentleman said to me: “When Yuan Shi Kai was overthrown, the tiger killed the lion. Now a snake has killed the tiger. No matter how vicious the snake may become, some smaller animal will be able to kill him, and his life will be shorter than that of either lion or tiger.” In short, each successive upheaval brings nearer the day when civilian supremacy will be established. This result will be achieved partly because of the repeated demonstrations of the uncongeniality of military despotism to the Chinese spirit, and partly because with every passing year education will have done its work. Suppressed liberal papers are coming to life, while over twenty Anfu subsidized newspapers and two subsidized news agencies have gone out of being. The soldiers, including many officers in the Anwhei army, clearly show the effects of student propaganda. And it is worth while to note down the name of one of the leaders on the victorious side, the only one whose troops did any particular fighting, and that against great odds in numbers. The name is Wu Pei Fu. He at least has not fought for the Chili faction against the Anwhei faction. He has proclaimed from the first that he was fighting to rid the country of military control of civil government, and against traitors who would sell their country to foreigners. He has come out strongly for a new popular assembly, to form a new constitution and to unite the country. And although Chang Tso Lin has remarked that Wu Pei Fu as a military subordinate could not be expected to intervene in politics, he has not as yet found it convenient to oppose the demand for a popular assembly. Meanwhile the liberals are organizing their forces, hardly expecting to win a victory, but resolved, win or lose, to take advantage of the opportunity to carry further the education of the Chinese people in the meaning of democracy.

 This doesn’t mean, though, that public opinion believes nothing has changed. The exposure of the inherent flaws of corrupt militarism will itself stop the rise of any militarism as strong as the Anfu. As one Chinese man told me: “When Yuan Shi Kai was overthrown, the tiger killed the lion. Now a snake has killed the tiger. No matter how vicious the snake gets, some smaller creature will be able to defeat it, and its life will be shorter than that of the lion or tiger.” In short, each upheaval brings us closer to a day when civilian authority will be established. This will happen partly because repeated examples of the incompatibility of military dictatorship with the Chinese spirit, and partly because education will continue to progress each year. Banned liberal newspapers are coming back to life, while over twenty Anfu-funded newspapers and two subsidized news agencies have shut down. The soldiers, including many officers in the Anwhei army, clearly show the impact of student activism. And it’s important to note the name of one of the leaders on the winning side, the only one whose troops actually engaged in significant battles, and that against overwhelming odds. His name is Wu Pei Fu. He has not fought for the Chili faction against the Anwhei faction. From the beginning, he has stated that he is fighting to free the country from military control of civil government, and against traitors who would sell their country to foreigners. He has strongly advocated for a new popular assembly to create a new constitution and unify the country. And although Chang Tso Lin has stated that Wu Pei Fu, as a military subordinate, shouldn’t be involved in politics, he has not yet found it convenient to oppose the call for a popular assembly. Meanwhile, the liberals are organizing their efforts, hardly expecting to win, but determined, whether they win or lose, to seize the opportunity to further educate the Chinese people about the meaning of democracy.

 V
Divided China

1.

In January 1920 the Peking government issued an edict proclaiming the unification of China. On May 5th Sun Yat Sen was formally inaugurated in Canton as president of all China. Thus China has within six months been twice unified, once from the northern standpoint and once from the southern. Each act of “unification” is in fact a symbol of the division of China, a division expressing differences of language, temperament, history, and political policy as well as of geography, persons and factions. This division has been one of the outstanding facts of Chinese history since the overthrow of the Manchus ten years ago and it has manifested itself in intermittent civil war. Yet there are two other statements which are equally true, although they flatly contradict each other and the one just made. One statement is that so far as the people of China are concerned there is no real division on geographical lines, but only the common division occurring everywhere between conservatives and progressives. The other is that instead of two divisions in China, there are at least five, two parties in both the north and south, and another in the central or Yangtse region,3 each one of the five splitting up again more or less on factional and provincial lines. And so far as the future is concerned, probably this last statement is the most significant of the three. That all three statements are true is what makes Chinese politics so difficult to understand even in their larger features.

In January 1920, the Peking government announced an edict declaring the unification of China. On May 5th, Sun Yat Sen was officially inaugurated in Canton as the president of all China. Within six months, China has been unified twice, first from the north and then from the south. Each act of "unification" actually symbolizes the division of China, a division that reflects differences in language, temperament, history, political policy, geography, people, and factions. This division has been a significant fact in Chinese history since the overthrow of the Manchus ten years ago, and it has resulted in intermittent civil war. However, there are two other statements that are also true, even though they contradict each other and the previous one. One statement is that, for the people of China, there is no real division along geographical lines, but only the common division seen everywhere between conservatives and progressives. The other is that instead of two divisions in China, there are at least five: two parties in both the north and the south, and another in the central or Yangtze region, 3 with each of the five further splitting up along factional and provincial lines. As for the future, this last statement is probably the most significant of the three. The fact that all three statements are true is what makes Chinese politics so challenging to understand, even in their broader aspects.

By the good fortune of circumstances we were in Canton when the inauguration occurred. Peking and Canton are a long way apart in more than distance. There is little exchange of actual news between the two places; what filters through into either city and gets published consists mostly of rumors  tending to discredit the other city. In Canton, the monarchy is constantly being restored in Peking; and in Peking, Canton is Bolshevized at least once a week, while every other week open war breaks out between the adherents of Sun Yat Sen, and General Chen Kwang Ming, the civil governor of the province. There is nothing to give the impression—even in circles which accept the Peking government only as an evil necessity—that the pretensions of Sun Yat Sen represent anything more than the desires of a small and discredited group to get some slight power for themselves at the expense of national unity. Even in Fukien, the province next north of Kwantung, one found little but gossip whose effect was to minimize the importance of the southern government. In foreign circles in the north as well as in liberal Chinese circles upon the whole, the feeling is general that bad as the de facto Peking government may be, it represents the cause of national unity, while the southern government represents a perpetuation of that division of China which makes her weak and which offers the standing invitation to foreign intrigue and aggression. Only occasionally during the last few months has some returned traveller timidly advanced the opinion that we had the “wrong dope” on the south, and that they were really trying “to do something down there.”

By a stroke of luck, we were in Canton when the inauguration took place. Peking and Canton are far apart both geographically and in other ways. There's barely any real news shared between the two cities; what trickles in and gets published is mostly gossip aimed at discrediting the other city. In Canton, people are always claiming that the monarchy is being restored in Peking; while in Peking, they say Canton turns Bolshevik at least once a week, and every other week, open conflict erupts between the supporters of Sun Yat Sen and General Chen Kwang Ming, the civil governor of the province. There’s nothing to suggest—even among those who see the Peking government as an unfortunate necessity—that Sun Yat Sen's claims are anything more than the ambitions of a small, discredited group trying to gain a bit of power at the expense of national unity. Even in Fukien, the province just north of Kwantung, the chatter merely served to downplay the significance of the southern government. In northern foreign circles and among liberal Chinese as a whole, there’s a prevailing sense that, however problematic the current Peking government might be, it stands for national unity, while the southern government only continues the division of China that makes it weak and invites foreign meddling and aggression. Only occasionally over the past few months has a returning traveler hesitantly suggested that we might have gotten the “wrong idea” about the south and that they’re genuinely trying “to accomplish something down there.”

Consequently there was little preparation on my part for the spectacle afforded in Canton during the week of May 5th. This was the only demonstration I have seen in China during the last two years which gave any evidence of being a spontaneous popular movement. New Yorkers are accustomed to crowds, processions, street decorations and accompanying enthusiasm. I doubt if New York has ever seen a demonstration which surpassed that of Canton in size, noise, color or spontaneity—in spite of tropical rains. The country people flocked in in such masses, that, being unable to find accommodation even in the river boats, they kept up a parade all night. Guilds and localities which were not able to get a place in the regular procession organized minor ones on their own account on the day before and after the official demonstration. Making all possible allowance for the intensity of Cantonese local loyalty and the fact that they might be celebrating a Cantonese affair rather than a principle, the scene was sufficiently impressive to revise one’s preconceived ideas and to make one try to find out what  it is that gives the southern movement its vitality.

As a result, I wasn't well-prepared for the spectacle in Canton during the week of May 5th. This was the only demonstration I’ve seen in China over the past two years that felt like a true grassroots movement. New Yorkers are used to crowds, parades, street decorations, and the excitement that goes with them. I doubt New York has ever witnessed a demonstration that surpassed Canton in size, noise, color, or spontaneity—despite the tropical rains. People from the countryside came in such large numbers that, unable to find accommodations even on the riverboats, they kept parading all night. Guilds and neighborhoods that couldn’t join the main procession organized their own smaller ones the day before and after the official event. Taking into account Cantonese local pride and the possibility that they might be celebrating a local issue rather than a broader principle, the scene was impressive enough to challenge one’s preconceived notions and inspire curiosity about what gives the southern movement its energy.

A demonstration may be popular and still be superficial in significance. However one found foreigners on the ground—at least Americans—saying that in the last few months the men in power in Canton were the only officials in China who were actually doing something for the people instead of filling their own pockets and magnifying their personal power. Even the northern newspapers had not entirely omitted reference to the suppression of licensed gambling. On the spot one learned that this suppression was not only genuine and thorough, but that it meant a renunciation of an annual revenue of nearly ten million dollars on the part of a government whose chief difficulty is financial, and where—apart from motives of personal squeeze—it would have been easy to argue that at least temporarily the end justified the means in retaining this source of revenue. English papers throughout China have given much praise to the government of Hong Kong because it has cut down its opium revenue from eight to four millions annually with the plan for ultimate extinction. Yet Hong Kong is prosperous, it has not been touched by civil war, and it only needs revenue for ordinary civil purposes, not as a means of maintaining its existence in a crisis.

A protest can be popular and still lack real depth. However, on the ground—at least among Americans—people were saying that in recent months, the leaders in Canton were the only officials in China who were actually doing something for the citizens instead of just lining their own pockets and boosting their power. Even the northern newspapers mentioned the crackdown on licensed gambling. What I found out was that this crackdown was not only real and comprehensive, but it also involved giving up nearly ten million dollars in annual revenue from a government that is already struggling financially. It could have been easy to argue that, at least for the short term, keeping that revenue was justified for the sake of the greater good, aside from personal greed. English newspapers all over China have praised the government of Hong Kong because it has reduced its opium revenue from eight million to four million annually with plans for complete elimination. Yet Hong Kong is thriving; it hasn't been affected by civil war, and it only requires revenue for normal civil needs, not to survive during a crisis.

Under the circumstances, the action of the southern government was hardly less than heroic. This renunciation is the most sensational act of the Canton government, but one soon learns that it is the accompaniment of a considerable number of constructive administrative undertakings. Among the most notable are attempts to reform the local magistracies throughout the province, the establishment of municipal government in Canton—something new in China where local officials are all centrally appointed and controlled—based upon the American Commission plan, and directed by graduates of schools of political science in the United States; plans for introducing local self-government throughout the province; a scheme for introduction of universal primary education in Canton to be completed in three steps.

Given the situation, the actions of the southern government were nothing short of heroic. This decision is the most dramatic move by the Canton government, but it soon becomes clear that it’s part of a larger effort involving several significant administrative initiatives. Among the most important are efforts to reform local magistrates across the province, the establishment of municipal government in Canton—which is unprecedented in China where local officials are normally appointed and overseen by the central government—modeled after the American Commission plan, and led by graduates of political science programs in the United States; plans for implementing local self-government throughout the province; and a proposal for introducing universal primary education in Canton, to be rolled out in three phases.

These reforms are provincial and local. They are part of a general movement against centralization and toward local autonomy which is gaining headway all over China, a protest against the appointment of officials from Peking and the management  of local affairs in the interests of factions—and pocketbooks—whose chief interest in local affairs is what can be extracted in the way of profit. For the only analogue of provincial government in China at the present time is the carpet bag government of the south in the days following our civil war. These things explain the restiveness of the country, including central as well as southern provinces, under Peking domination. But they do not explain the setting up of a new national, or federal government, with the election of Mr. Sun Yat Sen as its president. To understand this event it is necessary to go back into history.

These reforms are happening at the provincial and local levels. They are part of a broader movement across China aimed at reducing centralization and promoting local autonomy, pushing back against the appointment of officials from Peking and the management of local affairs in favor of factions—and personal gain—whose primary concern with local matters is profit. Right now, the only comparable form of provincial government in China resembles the carpetbagger government of the South after our Civil War. This situation helps explain the dissatisfaction felt throughout the country, including both central and southern provinces, regarding Peking's control. However, it doesn't clarify why a new national or federal government was established, marked by the election of Mr. Sun Yat-sen as its president. To fully grasp this event, we need to look back at history.

In June, 1917, the parliament in Peking was about to adopt a constitution. The parliament was controlled by leaders of the old revolutionary party who had been at loggerheads with Yuan and with the executive generally. The latter accused them of being obstructionists, wasting time in discussing and theorizing when the country needed action. Japan had changed her tactics regarding the participation of China in the war, and having got her position established through the Twenty-one Demands, saw a way of controlling Chinese arsenals and virtually amalgamating the Chinese armies with her own through supervising China’s entrance into the war. The British and French were pressing desperately for the same end. Parliament was slow to act, and Tang Shao Yi, Sun Yat Sen and other southern leaders were averse, since they regarded the war as none of China’s business and were upon the whole more anti-British than anti-German—a fact which partly accounts for the share of British journals in the present press propaganda against the Canton government. But what brought matters to a head was the fact that the constitution which was about to be adopted eliminated the military governors or tuchuns of the provinces, and restored the supremacy of civil authority which had been destroyed by Yuan Shi Kai, in addition to introducing a policy of decentralization. Coached by members of the so-called progressive party which claimed to be constitutionalist and which had a factionalist interest in overthrowing the revolutionaries who controlled the legislative branch if not the executive, the military governors demanded that the president suspend parliament and dismiss the legislators. This demand was more than passively supported by all the Allied diplomats in Peking with the honorable exception  of the American legation. The president weakly yielded and issued an edict dispelling parliament, virtually admitting in the document the illegality of his action. Less than a month afterwards he was a refugee in the Dutch legation on account of the farce of monarchical restoration staged by Chang Shun—who at the present time is again coming to the front in the north as adjutant to the plans of Chang Tso Lin, the present “strong man” of China. Later, elections were held and a new parliament elected. This parliament has been functioning as the legislature of China at Peking and elected the president, Hsu Shi Chang, the head of the government recognized by the foreign Powers—in short it is the Chinese government from an international standpoint, the Peking government from a domestic standpoint.

In June 1917, the parliament in Peking was set to adopt a constitution. This parliament was dominated by leaders of the old revolutionary party, who had been in conflict with Yuan and the executive branch in general. The latter accused them of being obstructionists, wasting time discussing and theorizing when the country needed action. Japan had changed its approach regarding China’s involvement in the war, having established its position through the Twenty-one Demands, and saw a way to control Chinese arsenals and effectively merge the Chinese armies with its own by overseeing China’s entry into the war. The British and French were urgently pushing for the same goal. Parliament was slow to respond, and leaders like Tang Shao Yi, Sun Yat Sen, and others from the south were reluctant, viewing the war as none of China’s business and generally being more anti-British than anti-German. This partly explains the role of British media in the current propaganda against the Canton government. However, the situation escalated because the constitution being adopted removed the military governors of the provinces and reinstated civil authority, which Yuan Shi Kai had dismantled, along with introducing a policy of decentralization. Influenced by members of the so-called progressive party, which claimed to be constitutionalist and had a factional interest in toppling the revolutionaries in control of the legislative branch, the military governors demanded that the president suspend parliament and dismiss the legislators. This demand was actively supported by all the Allied diplomats in Peking, with the honorable exception of the American legation. The president reluctantly complied and issued an edict dissolving parliament, virtually admitting the illegality of his action. Less than a month later, he became a refugee in the Dutch legation due to the farce of monarchical restoration orchestrated by Chang Shun, who is currently re-emerging in the north as an aide to Chang Tso Lin, the current "strong man" of China. Subsequently, elections were held and a new parliament was elected. This parliament has been functioning as the legislative body of China in Peking and elected the president, Hsu Shi Chang, head of the government recognized by foreign powers—in short, it represents the Chinese government from an international viewpoint and the Peking government from a domestic perspective.

The revolutionary members of the old parliament never recognized the legality of their dispersal, and consequently refused to admit the legal status of the new parliament, called by them the bogus parliament, and of the president elected by it, especially as the new legislative body was not elected according to the rules laid down by the constitution. Under the lead of some of the old members, the old parliament, called by its opponents the defunct parliament, has led an intermittent existence ever since. Claiming to be the sole authentic constitutional body of China, it finally elected Dr. Sun president of China and thus prepared the act of the fifth of May, already reported.

The revolutionary members of the old parliament never acknowledged the legality of their disbanding and, as a result, refused to recognize the legal status of the new parliament, which they referred to as the bogus parliament, as well as the president elected by it. They particularly objected since the new legislative body wasn’t elected according to the rules outlined in the constitution. Led by some of the old members, the old parliament, labeled the defunct parliament by its opponents, has continued to exist intermittently ever since. Claiming to be the only legitimate constitutional body of China, it eventually elected Dr. Sun as president of China and thus prepared for the events of May 5th, which have already been reported.

Such is the technical and formal background of the present southern government. Its attack upon the legality of the Peking government is doubtless technically justified. But for various reasons its own positive status is open to equally grave doubts. The terms “bogus” and “defunct,” so freely cast at each other, both seem to an outsider to be justified. It is less necessary to go into the reasons which appear to invalidate the position of the southern parliament because of the belated character of its final action. A protest which waits four years to assert itself in positive action is confronted not with legal technicalities but with accomplished facts. In my opinion, legality for legality, the southern government has a bare shade the better of the technical argument. But in the face of a government which has foreign recognition and which has maintained itself after a fashion for four years, a legal shadow is a precarious political basis. It is  wiser to regard the southern government as a revolutionary government, which in addition to the prestige of continuing the revolutionary movement of ten years ago has also a considerable sentimental asset as a protest of constitutionalism against the military usurpations of the Peking government.

Such is the technical and formal background of the current southern government. Its challenge to the legitimacy of the Peking government is certainly technically warranted. However, for various reasons, its own established status raises equally serious doubts. The labels “bogus” and “defunct,” frequently thrown at each other, both seem justifiable from an outsider's perspective. It's less crucial to delve into the reasons that seem to undermine the position of the southern parliament, given the delayed nature of its final actions. A protest that takes four years to turn into decisive action faces not just legal technicalities but also established facts. In my view, when it comes to legality, the southern government has a slight edge in the technical argument. Yet, in the presence of a government that has foreign recognition and has managed to maintain itself, in some manner, for four years, a legal shadow is a shaky political foundation. It is   wiser to view the southern government as a revolutionary administration, which, along with the prestige of continuing the revolutionary movement from ten years ago, also has significant sentimental value as a stand against the military takeovers of the Peking government.

It is an open secret that the southern movement has not received the undivided support of all the forces present in Canton which are opposed to the northern government. Tang Shao Yi, for example, was notable for his absence at the time of the inauguration, having found it convenient to visit the graves of his ancestors at that time. The provincial governor, General Chen Kwang Ming, was in favor of confining efforts to the establishment of provincial autonomy and the encouragement of similar movements in other provinces, looking forward to an eventual federal, or confederated, government of at least all the provinces south of the Yangtse. Many of his generals wanted to postpone action until Kwantung province had made a military alliance with the generals in the other southwestern provinces, so as to be able to resist the north should the latter undertake a military expedition. Others thought the technical legal argument for the new move was being overworked, and while having no objections to an out and out revolutionary movement against Peking, thought that the time for it had not yet come. They are counting on Chang Tso Lin’s attempting a monarchical restoration and think that the popular revulsion against that move would create the opportune time for such a movement as has now been prematurely undertaken. However in spite of reports of open strife freely circulated by British and Peking government newspapers, most of the opposition elements are now loyally suppressing their opposition and supporting the government of Sun Yat Sen. A compromise has been arranged by which the federal government will confine its attention to foreign affairs, leaving provincial matters wholly in the hands of Governor Chen and his adherents. There is still room for friction however, especially as to the control of revenues, since at present there are hardly enough funds for one administration, let alone two.

It’s well known that the southern movement hasn’t received full support from all the groups in Canton that oppose the northern government. For instance, Tang Shao Yi was notably absent during the inauguration, choosing to visit his ancestors' graves instead. The provincial governor, General Chen Kwang Ming, preferred to focus on establishing provincial autonomy and promoting similar movements in other provinces, aiming for a future federal or confederated government that includes all provinces south of the Yangtse. Many of his generals wanted to delay any action until Kwantung province formed a military alliance with generals from other southwestern provinces to prepare for a potential military response from the north. Others believed that the legal justification for the new initiative was being overemphasized. While they had no objections to a revolutionary movement against Peking, they felt the time wasn’t right yet. They’re anticipating that Chang Tso Lin will attempt to restore the monarchy, and they think that public backlash against that could create the right moment for the movement that has been initiated too soon. However, despite reports of open conflict circulated by British and Peking government newspapers, most opposition groups are currently suppressing their dissent and supporting Sun Yat Sen’s government. A compromise has been reached where the federal government will focus on foreign affairs, leaving provincial matters entirely to Governor Chen and his supporters. There’s still potential for conflict, especially over revenue control, as there are barely enough funds for one administration, let alone two.

 2.

The members of the new southern government are strikingly different in type from those one meets elsewhere whether in Peking or the provincial capitals. The latter men are literally mediaeval when they are not late Roman Empire, though most of them have learned a little modern patter to hand out to foreigners. The former are educated men, not only in the school sense and in the sense that they have had some special training for their jobs, but in the sense that they think the ideas and speak the language current among progressive folk all over the world. They welcome inquiry and talk freely of their plans, hopes and fears. I had the opportunity of meeting all the men who are most influential in both the local and federal governments; these conversations did not take the form of interviews for publication, but I learned that there are at least three angles from which the total situation is viewed.

The members of the new southern government are noticeably different from those you find elsewhere, whether in Beijing or the provincial capitals. The latter are essentially stuck in the past, reminiscent of the medieval era or the late Roman Empire, although many of them have picked up a bit of modern jargon to impress foreigners. The former group consists of educated individuals, not just in terms of formal education or specific job training, but in the way they understand and communicate the ideas and language that are popular among progressive people worldwide. They are open to questions and readily discuss their plans, hopes, and concerns. I had the chance to meet all the key figures in both local and federal governments; these conversations weren’t structured as interviews for publication, but I discovered that there are at least three perspectives on the overall situation.

Governor Chen has had no foreign education and speaks no English. He is distinctively Chinese in his training and outlook. He is a man of force, capable of drastic methods, straightforward intellectually and physically, of unquestioned integrity and of almost Spartan life in a country where official position is largely prized for the luxuries it makes possible. For example, practically alone among Chinese provincial officials of the first rank he has no concubines. Not only this, but he proposed to the provincial assembly a measure to disenfranchise all persons who have concubines. (The measure failed because it is said its passage would have deprived the majority of the assemblymen of their votes.) He is by all odds the most impressive of all the officials whom I have met in China. If I were to select a man likely to become a national figure of the first order in the future, it would be, unhesitatingly, Governor Chen. He can give and also command loyalty—a fact which in itself makes him almost unique.

Governor Chen has no foreign education and doesn’t speak any English. He has a distinctly Chinese training and perspective. He is a strong, decisive man, capable of taking bold actions, straightforward both mentally and physically, with unquestioned integrity and a lifestyle that is almost Spartan in a country where official positions are largely valued for the luxuries they bring. For instance, he is one of the few high-ranking Chinese provincial officials who has no concubines. In addition, he proposed a law to remove the voting rights of all people who have concubines. (The proposal failed because it is said that passing it would have taken away the votes of most assembly members.) Without a doubt, he is the most impressive official I’ve met in China. If I had to choose someone likely to become a significant national figure in the future, it would be, without hesitation, Governor Chen. He inspires loyalty and can also demand it—a fact that makes him almost unique.

His views in gist are as follows: The problem of problems in China is that of real unification. Industry and education are held back because of lack of stability of government, and the better elements in society seclude themselves from all public effort. The question is how this unification is to be obtained. In the past it has been tried by force used by strong individuals. Yuan Shi Kai tried and failed; Feng Kuo Chang tried and  failed; Tuan Chi Jui tried and failed. That method must be surrendered. China can be unified only by the people themselves, employing not force but the methods of normal political evolution. The only way to engage the people in the task is to decentralize the government. Futile efforts at centralization must be abandoned. Peking and Canton alike must allow the provinces the maximum of autonomy; the provincial capitals must give as much authority as possible to the districts, and the districts to the communities. Officials must be chosen by and from the local districts and everything must be done to encourage local initiative. Governor Chen’s chief ambition is to introduce this system into Kwantung province. He believes that other provinces will follow as soon as the method has been demonstrated, and that national unity will then be a pyramid built out of the local blocks.

His views in a nutshell are as follows: The biggest issue in China is achieving real unification. Industry and education are hindered by an unstable government, and the more progressive members of society isolate themselves from any public initiatives. The key question is how this unification can be achieved. In the past, attempts have been made through force by strong leaders. Yuan Shi Kai tried and failed; Feng Kuo Chang tried and failed; Tuan Chi Jui tried and failed. That approach must be abandoned. China can only be unified by the people themselves, using not force but the methods of normal political evolution. The only way to involve the people in this process is to decentralize the government. Futile attempts at centralization must cease. Both Peking and Canton need to give the provinces as much autonomy as possible; provincial capitals must delegate authority to the districts, and districts to communities. Officials should be elected from the local districts, and everything should be done to foster local initiative. Governor Chen’s primary goal is to implement this system in Kwantung province. He believes that as soon as this method proves successful, other provinces will follow, and national unity will then be built like a pyramid from local foundations.

With extreme self-government in administrative matters, Governor Chen will endeavor to enforce a policy of centralized economic control. He says in effect that the west has developed economic anarchy along with political control, with the result of capitalistic domination and class struggle. He wishes to avert this consequence in China by having government control from the first of all basic raw materials and all basic industries, mines, transportation, factories for cement, steel, etc. In this way the provincial authorities hope to secure an equable industrial development of the province, while at the same time procuring ample revenues without resorting to heavy taxation. Since almost all the other governors in China are using their power, in combination with the exploiting capitalists native and foreign, to monopolize the natural resources of their provinces for private profit, it is not surprising that Governor Chen’s views are felt to be a menace to privilege and that he is advertised all over China as a devout Bolshevist. His views have special point in view of British efforts to get an economic stranglehold upon the province—efforts which are dealt with in a prior chapter.

With strong self-control in administrative matters, Governor Chen will work to implement a policy of centralized economic control. He essentially states that the West has created economic chaos alongside political control, leading to capitalist dominance and class conflict. He aims to prevent this in China by having the government oversee all essential raw materials and key industries, including mines, transportation, and factories for cement, steel, and more. This way, the provincial authorities hope to achieve balanced industrial development in the province while also generating sufficient revenue without heavy taxation. Given that nearly all other governors in China are using their power, along with greedy local and foreign capitalists, to monopolize their provinces' natural resources for personal profit, it’s not surprising that Governor Chen's ideas are seen as a threat to privilege, leading to him being labeled throughout China as a devoted Bolshevist. His views are particularly relevant in light of British attempts to establish an economic stronghold in the province—efforts that are discussed in a previous chapter.

Another type of views lays chief stress upon the internal political condition of China. Its adherents say in effect: Why make such a fuss about having two governments for China, when, in point of fact, China is torn into dozens of governments? In the north, war is sure to break out sooner or later between Chang  Tso Lin and his rivals. Each military governor is afraid of his division generals. The brigade generals intrigue against the division leaders, and even colonels are doing all they can to further their personal power. The Peking government is a stuffed sham, taking orders from the military governors of the provinces, living only on account of jealousies among these generals, and by the grace of foreign diplomatic support. It is actually bankrupt, and this actual state will soon be formally recognized. The thing for us to do is to go ahead, maintain in good faith the work of the revolution, give this province the best possible civil administration; then in the inevitable approaching débâcle, the southern government will be ready to serve as the nucleus of a genuine reconstruction. Meantime we want, if not the formal recognition of foreign governments, at least their benevolent neutrality.

Another perspective emphasizes the internal political situation in China. Supporters argue: Why make such a big deal about having two governments for China when, in reality, it's divided into dozens of them? In the north, conflict is likely to erupt sooner or later between Chang  Tso Lin and his rivals. Each military governor fears their division generals. The brigade generals are scheming against the division leaders, and even colonels are doing everything they can to boost their own power. The Peking government is a mere facade, taking orders from the military governors of the provinces, surviving only because of rivalries among these generals and foreign diplomatic support. It's essentially bankrupt, and this reality will soon be officially acknowledged. Our task is to move forward, genuinely support the work of the revolution, provide the best possible civil administration for this province; then, when the inevitable collapse happens, the southern government will be ready to act as the foundation for real reconstruction. In the meantime, we want, if not the formal recognition of foreign governments, at least their friendly neutrality.

Dr. Sun still embodies in himself the spirit of the revolution of 1911. So far as that was not anti-Manchu it was in essence nationalistic, and only accidentally republican. The day after the inauguration of Dr. Sun, a memorial was dedicated to the seventy-two patriot heroes who fell in an abortive attempt in Canton to throw off the Manchu yoke, some six months before the successful revolt. The monument is the most instructive single lesson which I have seen in the political history of the revolution. It is composed of seventy-two granite blocks. Upon each is engraved: Given by the Chinese National League of Jersey City, or Melbourne, or Mexico, or Liverpool, or Singapore, etc. Chinese nationalism is a product of Chinese migration to foreign countries; Chinese nationalism on foreign shores financed the revolution, and largely furnished its leaders and provided its organization. Sun Yat Sen was the incarnation of this nationalism, which was more concerned with freeing China—and Asia—from all foreign domination than with particular political problems. And in spite of the movement of events since that day, he remains essentially at that stage, being closer in spirit to the nationalists of the European irredentist type than to the spirit of contemporary young China. A convinced republican, he nevertheless measures events and men in the concrete by what he thinks they will do to promote the independence of China from foreign control, rather than by what they will do to promote a truly democratic government. This  is the sole explanation that can be given for his unfortunate coquetting a year ago with the leaders of the now fallen Anfu Club. He allowed himself to be deceived into thinking that they were ready to turn against the Japanese if he would give them his support; and his nationalist imagination was inflamed by the grandiose schemes of little Hsu for the Chinese subjugation of Mongolia.

Dr. Sun still embodies the spirit of the 1911 revolution. While that revolution wasn't specifically against the Manchu, it was fundamentally nationalistic and only incidentally republican. The day after Dr. Sun's inauguration, a memorial was dedicated to the seventy-two patriot heroes who died in an unsuccessful attempt to overthrow the Manchu rule in Canton about six months before the successful uprising. The monument is the most informative single lesson I've seen in the political history of the revolution. It's made up of seventy-two granite blocks, each engraved with: Given by the Chinese National League of Jersey City, or Melbourne, or Mexico, or Liverpool, or Singapore, etc. Chinese nationalism is a result of Chinese migration to other countries; this nationalism abroad financed the revolution and provided many of its leaders and organization. Sun Yat Sen was the embodiment of this nationalism, which focused more on liberating China—and Asia—from any foreign domination rather than on specific political issues. Despite the developments since then, he essentially remains at that stage, being closer in spirit to the European nationalist movements than to the mindset of contemporary young China. A committed republican, he still assesses events and people based on what they will do to promote China's independence from foreign control, rather than on what they will do to establish a genuinely democratic government. This   is the only explanation for his unfortunate flirtation last year with the leaders of the now-defunct Anfu Club. He was misled into believing they would turn against the Japanese if he supported them, and his nationalist imagination was excited by the grand plans of the minor Hsu for China's domination over Mongolia.

More openly than others, Dr. Sun admits and justifies the new southern government as representing a division of China. If, he insists, it had not been for the secession of the south in 1917, Japan would now be in virtually complete control of all China. A unified China would have meant a China ready to be swallowed whole by Japan. The secession localized Japanese aggressions, made it evident that the south would fight rather than be devoured, and gave a breathing spell in which public opinion in the north rallied against the Twenty-one Demands and against the military pact with Japan. Thus it saved the independence of China. But, while it checked Japan, it did not checkmate her. She still expects with the assistance of Chang Tso Lin to make northern China her vassal. The support which foreign governments in general and the United States in particular are giving Peking is merely playing into the hands of the Japanese. The independent south affords the only obstacle which causes Japan to pause in her plan of making northern China in effect a Japanese province. A more than usually authentic rumor says that upon the occasion of the visit of the Japanese consul general to the new president (no other foreign official has made an official visit), the former offered from his government the official recognition of Dr. Sun as president of all China, if the latter would recognize the Twenty-one Demands as an accomplished fact. From the Japanese standpoint the offer was a safe one, as this acceptance of Japanese claims is the one thing impossible to the new government. But meantime the offer naturally confirms the nationalists of Dr. Sun’s type in their belief that the southern split is the key to maintaining the political independence of China; or, as Dr. Sun puts it, that a divided China is for the time being the only means to an ultimately independent China.

More openly than others, Dr. Sun acknowledges and justifies the new southern government as representing a division of China. He insists that if it weren't for the south's secession in 1917, Japan would now have nearly complete control over all of China. A unified China would have led to a China ready to be completely taken over by Japan. The secession contained Japanese aggression, made it clear that the south would fight rather than be consumed, and created a moment where public opinion in the north could rally against the Twenty-one Demands and the military pact with Japan. This ultimately preserved China's independence. However, while it slowed down Japan, it did not fully stop her. Japan still anticipates, with the help of Chang Tso Lin, making northern China her vassal. The support that foreign governments, especially the United States, are providing to Peking is simply aiding the Japanese. The independent south is the only barrier that makes Japan hesitate in her plan to effectively turn northern China into a Japanese province. A particularly credible rumor states that during the Japanese consul general's visit to the new president (no other foreign official has officially visited), he offered formal recognition of Dr. Sun as president of all China if Dr. Sun would accept the Twenty-one Demands as a done deal. From Japan's perspective, the offer was a safe one because accepting Japanese claims is something the new government cannot agree to. Meanwhile, the offer naturally reinforces nationalists like Dr. Sun in their belief that the southern divide is crucial for maintaining China’s political independence; or, as Dr. Sun puts it, that a divided China is, for now, the only way to achieve an ultimately independent China.

These views are not given as stating the whole truth of the situation. They are ex parte. But they are given as setting  forth in good faith the conceptions of the leaders of the southern movement and as requiring serious attention if the situation of China, domestic and international, is to be understood. Upon my own account, and not simply as expressing the views of others, I have reached a conclusion quite foreign to my thought before I visited the south. While it is not possible to attach too much importance to the unity of China as a part of the foreign policy of the United States, it is possible to attach altogether too much importance to the Peking government as a symbol of that unity. To borrow and adapt the words of one southern leader, while the United States can hardly be expected to do other than recognize the Peking as the de facto government, there is no need to coddle that government and give it face. Such a course maintains a nominal and formal unity while in fact encouraging the military and corrupt forces that keep China divided and which make for foreign aggression.

These perspectives don't present the complete truth of the situation. They're one-sided. However, they're shared in good faith to express the views of the leaders of the southern movement and should be taken seriously if we want to understand China's domestic and international circumstances. From my own standpoint, and not just reflecting others' opinions, I've arrived at a conclusion that contradicts my previous thoughts before I visited the south. While the unity of China is important for U.S. foreign policy, placing too much emphasis on the Peking government as a symbol of that unity is misguided. To paraphrase a southern leader, while the U.S. is expected to acknowledge Peking as the de facto government, there’s no need to indulge that government and give it legitimacy. This approach maintains a superficial and formal unity but actually supports the military and corrupt forces keeping China divided and leading to foreign aggression.

In my opinion as the outcome of two years’ observation of the Chinese situation, the real interests of both China and the United States would be served if, in the first place, the United States should take the lead in securing from the diplomatic body in Peking the serving of express notice upon the Peking government that in no case would a restoration of the monarchy be recognized by the Powers. This may seem in America like an unwarranted intervention in the domestic affairs of a foreign country. But in fact such intervention is already a fact. The present government endures only in virtue of the support of foreign Powers. The notice would put an end to one kind of intrigue, one kind of rumor and suspicion, which is holding industry and education back and which is keeping China in a state of unrest and instability. It would establish a period of comparative quiet in which whatever constructive forces exist may come to the front. The second measure would be more extreme. The diplomacy of the United States should take the lead in making it clear that unless the promises about the disbanding of the army, and the introduction of general retrenchment are honestly and immediately carried out, the Powers will pursue a harsh rather than a benevolent policy toward the Peking government, insisting upon immediate payment of interest and loans as they fall due and holding up the government to the strictest meeting of all its obligations. The notification to be effective  might well include a virtual threat of withdrawal of recognition in case the government does not seriously try to put its profuse promises into execution. It should also include a definite discouragement of any expenditures designed for military conquest of the south.

In my view, after two years of observing the situation in China, the best interests of both China and the United States would be served if, first, the United States took the lead in getting the diplomatic community in Beijing to inform the Chinese government that no restoration of the monarchy would be recognized by other nations. This might seem like unwarranted interference in the domestic affairs of a foreign country in America. However, such interference is already happening. The current government exists mainly because of the support from foreign powers. This notice would eliminate one source of intrigue, rumors, and suspicions that are hindering industry and education, keeping China in a state of unrest and instability. It would create a period of relative calm in which any constructive forces can emerge. The second measure would be more drastic. U.S. diplomacy should clarify that unless the promises regarding disbanding the army and implementing general budget cuts are honestly and immediately fulfilled, the powers will adopt a tough instead of a friendly approach toward the Beijing government, demanding immediate payment of interest and loans as they come due and holding the government to the strictest adherence to all its obligations. For the notification to be effective, it should include an implicit threat of withdrawing recognition if the government does not seriously work to fulfill its numerous promises. It should also clearly discourage any spending aimed at military conquest in the south.

Diplomatic recognition of the southern government is out of the question at present. It is not out of the question to put on the financial screws so that the southern government will be allowed space and time to demonstrate what it can do by peaceful means to give one or more provinces a decent, honest and progressive civil administration. It is unnecessary to enumerate the obstacles in the way of carrying out such a policy. But in my judgment it is the only policy by which the Great Powers will not become accomplices in perpetuating the weakness and division of China. It is the most straightforward way of meeting whatever plans of aggression Japan may entertain.

Diplomatic recognition of the southern government isn't an option right now. However, applying financial pressure is a feasible way to give the southern government the opportunity to show what it can achieve through peaceful means in providing decent, honest, and progressive civil administration in one or more provinces. There's no need to list all the challenges to implementing such a policy. In my view, it's the only approach that prevents the Great Powers from becoming complicit in prolonging China's weakness and division. It's also the most direct way to counter any aggressive plans Japan may have.

VI
Federalism in China

The newcomer in China in observing and judging events usually makes the mistake of attaching too much significance to current happenings. Occurrences take place which in the western world would portend important changes—and nothing important results. It is not easy to loosen the habit of years; and so the visitor assumes that an event which is striking to the point of sensationalism must surely be part of a train of events having a definite trend; some deep-laid plan must be behind it. It takes a degree of intellectual patience added to time and experience to make one realize that even when there is a rhythm in events the tempo is so retarded that one must wait a long time to judge what is really going on. Most political events are like daily changes in the weather, fluctuations back and forth which may seriously affect individuals but which taken one by one tell little about the movement of the seasons. Even the occurrences which are due to human  intention are usually sporadic and casual, and the observer errs by reading into them too much plot, too comprehensive a scheme, too farsighted a plan. The aim behind the event is likely to be only some immediate advantage, some direct increase of power, the overthrow of a rival, the grasping at greater wealth by an isolated act, without any consecutive or systematic looking ahead.

The newcomer in China who observes and judges events usually makes the mistake of putting too much importance on current happenings. Events occur that in the Western world would suggest major changes—and nothing significant comes of them. It’s not easy to break the habits of years; so the visitor assumes that an event that’s striking to the point of sensationalism must surely be part of a series of events with a clear direction; there must be some deep-seated plan behind it. It takes a level of intellectual patience combined with time and experience to understand that even when there is a pattern in events, the pace is so slow that one must wait quite a while to truly judge what is happening. Most political events are like daily changes in the weather, fluctuations that can seriously affect individuals but which, taken individually, reveal little about seasonal changes. Even the events that arise from human  intention are usually random and casual, and the observer mistakes them for having too much plot, too comprehensive a scheme, too far-sighted a plan. The motivation behind the event is likely to be just some immediate gain, some direct increase in power, the overthrow of a rival, or the pursuit of greater wealth through a single action, without any ongoing or systematic consideration for the future.

Foreigners are not the only ones who have erred, however, in judging the Chinese political situation of the last few years. Beginning two years ago, one heard experienced Chinese with political affiliations saying that it was impossible for things to go on as they were for more than three months longer. Some decisive change must occur. Yet outwardly the situation has remained much the same not only for three months but for two years, the exception being the overthrow of the Anfu faction a year ago. And this occurrence hardly marked a definite turn in events, as it was, to a considerable extent, only a shifting of power from the hands of one set of tuchuns to another set. Nevertheless at the risk of becoming a victim of the fallacy which I have been setting forth, I will hazard the remark that the last few months have revealed a definite and enduring trend—that through the diurnal fluctuations of the strife for personal power and wealth a seasonal political change in society is now showing itself. Certain lines of cleavage seem to show themselves, so that through the welter of striking, picturesque, sensational but meaningless events, a definite pattern is revealed.

Foreigners aren't the only ones who have made mistakes in judging the Chinese political situation over the past few years. About two years ago, experienced Chinese with political ties were saying that things couldn't continue as they were for more than three months. A major change had to happen. Yet, on the surface, the situation has remained pretty much the same not just for three months but for two years, with the only exception being the overthrow of the Anfu faction a year ago. This event hardly represented a clear shift in events, as it was mostly just a transfer of power from one group of leaders to another. Nevertheless, despite the risk of falling into the trap I've been discussing, I will venture to say that the last few months have shown a clear and lasting trend—that amidst the daily ups and downs of the struggle for personal power and wealth, a seasonal political change in society is becoming evident. Certain divides seem to be emerging, so that beneath the chaos of striking, colorful, sensational, but ultimately meaningless events, a distinct pattern is becoming apparent.

This pattern is indicated by the title of this chapter—a movement toward the development of a federal form of government. In calling the movement one toward federalism, there is, however, more of a jump into the remote future than circumstances justify. It would be more accurate, as well as more modest, to say that there is a well defined and seemingly permanent trend toward provincial autonomy and local self-government accompanied by a hope and a vague plan that in the future the more or less independent units will recombine into the United or Federated States of China. Some who look far into the future anticipate three stages; the first being the completion of the present secessionist movement; the second the formation of northern and southern confederations respectively; the third a reunion into a single state.

This pattern is reflected in the title of this chapter—a shift toward developing a federal government. However, labeling this shift as a move toward federalism represents more of a leap into the distant future than the current situation warrants. It would be more accurate, as well as more humble, to say that there is a clearly defined and seemingly lasting trend toward provincial autonomy and local self-governance, along with a hope and a vague plan that in the future, the more or less independent units will come together to form the United or Federated States of China. Some who look far ahead foresee three stages: the first being the completion of the ongoing secessionist movement; the second the formation of northern and southern confederations; and the third a reunification into a single state.

 To go into the detailed evidence for the existence of a definite and lasting movement of this sort would presume too much on the reader’s knowledge of Chinese geography and his acquaintance with specific recent events. I shall confine myself to quite general features of the situation. The first feature is the new phase which has been assumed by the long historic antagonism of the north and the south. Roughly speaking, the revolution which established the republic and overthrew the Manchus represented a victory for the south. But the transformation during the last five years of the nominal republic into a corrupt oligarchy of satraps or military governors or feudal lords has represented a victory for the north. It is a significant fact, symbolically at least, that the most powerful remaining tuchun or military governor in China—in some respects the only powerful one who has survived the vicissitudes of the last few years—namely Chang Tso Lin, is the uncrowned king of the three Manchurian provinces. The so-called civil war of the north and south is not, however, to be understood as a conflict of republicanism located in the south and militarism in the north. Such a notion is directly contrary to facts. The “civil war” till six or eight months ago was mainly a conflict of military governors and factions, part of that struggle for personal power and wealth which has been going on all over China.

 Going into detailed evidence for the existence of a clear and lasting movement like this would assume too much knowledge on the reader’s part regarding Chinese geography and recent events. I will limit myself to the broader aspects of the situation. The first aspect is the new phase in the long-standing conflict between the north and south. Generally speaking, the revolution that established the republic and overthrew the Manchus marked a win for the south. However, the last five years have seen the nominal republic transform into a corrupt oligarchy of local leaders, military governors, or feudal lords, representing a victory for the north. It’s an important point, at least symbolically, that the most powerful remaining military governor in China—who, in many ways, is the only one who has weathered the challenges of recent years—Chang Tso Lin, is essentially the unrecognized ruler of the three Manchurian provinces. The so-called civil war between the north and south should not be viewed as a battle between republicanism in the south and militarism in the north. This idea is directly contrary to the facts. Until six or eight months ago, the “civil war” was primarily a struggle among military governors and factions, part of the ongoing fight for personal power and wealth happening throughout China.

But recently events have taken a different course. In four of the southern provinces, tuchuns who seemed all powerful have toppled over, and the provinces have proclaimed or tacitly assumed their independence of both the Peking and the former military Canton governments—the province in which Canton situated being one of the four. I happened to be in Hunan, the first of the southerly provinces to get comparative independence, last fall, not long after the overthrow of the vicious despot who had ruled the province with the aid of northern troops. For a week a series of meetings were held in Changsha, the capital of the province. The burden of every speech was “Hunan for the Hunanese.” The slogan embodies the spirit of two powers each aiming at becoming the central authority; it is a conflict of the principle of provincial autonomy, represented by the politically more mature south, with that of militaristic centralization, represented by Peking.

But recently, things have changed. In four of the southern provinces, powerful local leaders have been overthrown, and the provinces have declared or quietly taken their independence from both the Peking government and the former military Canton government—the province where Canton is located being one of these four. Last fall, I was in Hunan, the first of the southern provinces to gain relative independence, shortly after the ousting of the cruel ruler who had governed the province with the support of northern troops. For a week, a series of meetings were held in Changsha, the province's capital. The main message in each speech was “Hunan for the Hunanese.” This slogan captures the essence of the struggle between two powers vying for central authority; it’s a clash between the idea of provincial autonomy, represented by the politically more advanced south, and the militaristic centralization represented by Peking.

As I write, in early September (1921), the immediate issue is  obscured by the fight which Wu Pei Fu is waging with the Hunanese who with nominal independence are in aim and interest allied with the south. If, as is likely, Wu Pei Fu wins, he may take one of two courses. He may use his added power to turn against Chang Tso Lin and the northern militarists which will bring him into virtual alliance with the southerners and establish him as the antagonist of the federal principle. This is the course which his earlier record would call for. Or he may yield to the usual official lust for power and money and try once more the Yuan Shi Kai policy of military centralization with himself as head, after trying out conclusions with Chang Tso Lin as his rival. This is the course which the past record of military leaders indicates. But even if Wu Pei Fu follows precedent and goes bad, he will only hasten his own final end. This is not prophecy. It is only a statement of what has uniformly happened in China just at the moment a military leader seemed to have complete power in his grasp. In other words, a victory for Wu Pei Fu may either accelerate or may retard the development of provincial autonomy according to the course he pursues. It cannot permanently prevent or deflect it.

As I write in early September 1921, the immediate issue is  clouded by the struggle that Wu Pei Fu is having with the Hunanese, who, while they have nominal independence, are aligned in aim and interest with the south. If, as seems likely, Wu Pei Fu wins, he might take one of two paths. He could use his newfound power to turn against Chang Tso Lin and the northern militarists, which would bring him into almost an alliance with the southerners and establish him as the opponent of the federal principle. This is the path his past record suggests he would choose. Alternatively, he might give in to the typical official greed for power and money and once again pursue the Yuan Shi Kai strategy of military centralization, positioning himself as the leader while testing his power against Chang Tso Lin as his rival. This second option aligns with the historical patterns of military leaders. However, even if Wu Pei Fu follows the usual precedent and turns corrupt, he will only speed up his own downfall. This isn’t a prophecy; it’s simply an observation of what has consistently occurred in China whenever a military leader seems to have total power in his grasp. In other words, a victory for Wu Pei Fu may either speed up or slow down the development of provincial autonomy, depending on the path he takes. It cannot permanently stop or divert it.

The basic factor that makes one sure that this trend toward local autonomy is a reality and not merely one of those meaningless shiftings of power which confuse the observer, is that it is in accord with Chinese temperament, tradition and circumstance. Feudalism is past and gone two thousand years ago, and at no period since has China possessed a working centralized government. The absolute empires which have come and gone in the last two millenniums existed by virtue of non-interference and a religious aura. The latter can never be restored; and every episode of the republic demonstrates that China with its vast and diversified territories, its population of between three hundred and fifty and four hundred million, its multitude of languages and lack of communications, its enormous local attachments sanctified by the family system and ancestral worship, cannot be managed from a single and remote centre. China rests upon a network of local and voluntary associations cemented by custom. This fact has given it its unparallelled stability and its power to progress even under the disturbed political conditions of the past ten years. I sometimes think that Americans with their own traditional contempt for politics and their spontaneous  reliance upon self-help and local organization are the ones who are naturally fitted to understand China’s course. The Japanese with their ingrained reliance upon the state have continually misjudged and misacted. The British understand better than we do the significance of local self-government; but they are misled by their reverence for politics so that they cannot readily find or see government when it does not take political form.

The key factor that confirms this trend toward local autonomy is real and not just some confusing shifts of power is that it aligns with Chinese temperament, tradition, and circumstances. Feudalism ended over two thousand years ago, and since then, China hasn’t had a functioning centralized government. The absolute empires that have come and gone over the last two millennia thrived due to non-interference and a religious atmosphere. The latter can never be reinstated; and every instance from the republic shows that China, with its vast and diverse regions, a population of around three hundred fifty to four hundred million, numerous languages, inadequate communication, and strong local ties rooted in family systems and ancestral worship, cannot be governed from a single, distant center. China relies on a network of local, voluntary associations strengthened by tradition. This reality has provided it with unmatched stability and its ability to make progress even amid the political turmoil of the past decade. I sometimes think that Americans, with their own traditional disdain for politics and their instinctive reliance on self-help and local organization, are the ones best suited to understand China's path. The Japanese, with their deep-seated dependence on the state, have consistently misjudged and mismanaged the situation. The British have a better grasp than we do of the importance of local self-government; however, their respect for politics often blinds them to the presence of government when it doesn’t take a political form.

It is not too much to say that one great cause for the overthrow of the Manchus was the fact that because of the pressure of international relations they attempted to force, especially in fiscal matters, a centralization upon the provinces wholly foreign to the spirit of the people. This created hostility where before there had been indifference. China may possibly not emerge from her troubles a unified nation, any more than a much smaller and less populous Europe emerged from the break-up of the Holy Roman Empire, a single state. Indeed one often wonders, not that China is divided, but that she is not much more broken up than she is. But one thing is certain. Whatever progress China finally succeeds in making will come from a variety of local centres, not from Peking or Canton. It will be effected by means of associations and organizations which even though they assume a political form are not primarily political in nature.

It's fair to say that a major reason for the fall of the Manchus was their attempt to impose centralized control, particularly in financial matters, on the provinces, which was completely against the people's spirit due to international pressures. This shift sparked resentment where there had previously been indifference. China might not emerge from its challenges as a unified nation, just like the much smaller and less populated Europe didn't become a single state after the dissolution of the Holy Roman Empire. In fact, it’s often surprising that China isn't even more fractured than it is. However, one thing is clear: any progress China manages to achieve will come from various local centers rather than from Beijing or Guangzhou. It will happen through associations and organizations that, while they may take on a political form, are not primarily political at their core.

Criticisms are passed, especially by foreigners, upon the present trend of events. The criticisms are more than plausible. It is evident that the present weakness of China is due to her divided condition. Hence it is natural to argue that the present movement being one of secession and general disintegration will increase the weakness of the country. It is also evident that many of China’s troubles are due to the absence of any efficient administrative system; it is reasonable to argue that China cannot get even railways and universal education without a strong and stable central government. There is no doubt about the facts. It is not surprising that many friends of China deeply deplore the present tendency while some regard it as the final accomplishment of the long predicted breakup of China. But remedies for China’s ills based upon ignoring history, psychology and actual conditions are so utopian that it is not worth while to argue whether or not they are theoretically desirable. The  remedy of China’s troubles by a strong, centralized government is on a par with curing disease by the expulsion of a devil. The evil of sectionalism is real, but since it is real it cannot be dealt with by trying a method which implies its non-existence. If the devil is really there, he will not be exorcized by a formula. If the trouble is internal, not due to an external demon, the disease can be cured only by using the factors of health and vigor which the patient already possesses. And in China while these factors of recuperation and growth are numerous, they all exist in connection with local organizations and voluntary associations. The increasing volume of the cry that the “tuchuns must go” comes from the provincial and local interests which have been insulted and violated by a nominally centralized but actually chaotic situation. After this negative work is completed, the constructive rebuilding of China can proceed only by utilizing local interests and abilities. In China the movement will be the opposite of that which occurred in Japan. It will be from the periphery to the centre.

Critics, especially from other countries, are commenting on the current events in China. Their criticisms are more than reasonable. It's clear that China's current weakness stems from its divided state. Therefore, it makes sense to argue that the ongoing movement toward secession and overall disintegration will further weaken the country. Many of China's problems also arise from the lack of an effective administrative system; it’s fair to say that China won’t achieve railways and universal education without a strong and stable central government. The facts are undeniable. It’s not surprising that many of China's supporters are deeply concerned about this trend, while some see it as the culmination of the long-anticipated fragmentation of China. However, solutions for China's issues that ignore history, psychology, and real conditions are so unrealistic that it’s pointless to debate whether they are theoretically desirable. The  solution of addressing China’s issues through a strong, centralized government is akin to trying to cure an illness by driving out a demon. The problem of regionalism is genuine, and since it is, it can't be resolved by adopting a method that assumes it doesn’t exist. If the demon really exists, it won't be exorcised with a simple formula. If the issue is internal, not caused by an external force, the cure can only come from harnessing the strengths and resources that the country already possesses. In China, while these resources for recovery and growth are plentiful, they exist within local organizations and voluntary groups. The growing demand for "tuchuns to go" comes from provincial and local interests that have been disrespected and mistreated by a superficially centralized but fundamentally chaotic structure. Once this negative phase is resolved, the constructive rebuilding of China can only begin by leveraging local interests and strengths. In China, the movement will be the reverse of what happened in Japan. It will start from the outskirts and move toward the center.

Another objection to the present tendency has force especially from the foreign standpoint. As already stated, the efforts of the Manchu dynasty in its latter days to enhance central power were due to international pressure. Foreign nations treated Peking as if it were a capital like London, Paris or Berlin, and in its efforts to meet foreign demands it had to try to become such a centre. The result was disaster. But foreign nations still want to have a single centre which may be held responsible. And subconsciously, if not consciously, this desire is responsible for much of the objection of foreign nationals to the local autonomy movement. They well know that it is going to take a long time to realize the ideal of federation, and meantime where and what is to be the agency responsible for diplomatic relations, the enforcing of indemnities and the securing of concessions?

Another objection to the current trend comes mainly from an international perspective. As mentioned before, the efforts of the Manchu dynasty in its later years to strengthen central authority were influenced by foreign pressure. Other countries treated Beijing like it was a capital similar to London, Paris, or Berlin, and in trying to meet these foreign demands, it sought to become such a center. The outcome was disastrous. However, foreign nations still prefer to have a single center that can be held accountable. Subconsciously, if not consciously, this desire drives a lot of the opposition from foreign nationals to the local autonomy movement. They understand that it will take a long time to achieve the ideal of federation, but in the meantime, where and who will be responsible for diplomatic relations, enforcing reparations, and securing concessions?

In one respect the secessionist tendency is dangerous to China herself as well as inconvenient to the powers. It will readily stimulate the desire and ability of foreign nations to interfere in China’s domestic affairs. There will be many centres at which to carry on intrigues and from which to get concessions instead of one or two. There is also danger that one foreign nation may line up with one group of provinces, and another foreign nation with another group, so that international friction will increase. Even now some Japanese sources and even such  an independent liberal paper as Robert Young’s Japan Chronicle are starting or reporting the rumor that the Cantonese experiment is supported by subsidies supplied by American capitalists in the hope of economic concessions. The rumor was invented for a sinister purpose. But it illustrates the sort of situation that may come into existence if there are several political centres in China and one foreign nation backs one and another nation, another.

In one way, the secessionist movement is harmful to China itself as well as being a hassle for other countries. It will easily encourage foreign nations to want to interfere in China’s internal matters. There will be multiple points for carrying out schemes and obtaining concessions instead of just one or two. There’s also the risk that one foreign country might align with one group of provinces, while another foreign country aligns with another group, leading to increased international tension. Even now, some Japanese sources, along with an independent liberal outlet like Robert Young’s Japan Chronicle, are starting or reporting rumors that the Cantonese experiment is being backed by American investors seeking economic concessions. This rumor was created for a malicious purpose. But it shows the kind of situation that could arise if there are multiple political centers in China, with one foreign nation supporting one and another nation supporting another.

The danger is real enough. But it cannot be dealt with by attempting the impossible—namely checking the movement toward local autonomy, even though disintegration may temporarily accompany it. The danger only emphasizes the fundamental fact of the whole Chinese situation; that its essence is time. The evils and troubles of China are real enough, and there is no blinking the fact that they are largely of her own making, due to corruption, inefficiency and absence of popular education. But no one who knows the common people doubts that they will win through if they are given time. And in the concrete this means that they be left politically alone to work out their own destiny. There will doubtless be proposals at the Pacific Conference to place China under some kind of international tutelage. This chapter and the events connected with the tendency which it reports will be cited as showing this need. Some of the schemes will spring from motives that are hostile to China. Some will be benevolently conceived in a desire to save China from herself and shorten her period of chaos and confusion. But the hope of the world’s peace, as well as of China’s freedom, lies in adhering to a policy of Hands Off. Give China a chance. Give her time. The danger lies in being in a hurry, in impatience, possibly in the desire of America to show that we are a power in international affairs and that we too have a positive foreign policy. And a benevolent policy of supporting China from without, instead of promoting her aspirations from within, may in the end do China about as much harm as a policy conceived in malevolence.

The danger is definitely real. But it can't be addressed by trying the impossible—namely, halting the movement toward local autonomy, even if disintegration might briefly accompany it. The danger only highlights the basic fact of the entire Chinese situation: its essence is time. The issues and troubles in China are very real, and there's no denying that they are largely self-inflicted, due to corruption, inefficiency, and a lack of popular education. But anyone who understands the common people knows they'll succeed if given time. In practical terms, this means leaving them politically alone to determine their own fate. There will likely be proposals at the Pacific Conference to put China under some form of international supervision. This chapter and the events related to the trend it describes will be referenced as evidence for this necessity. Some of the proposals will stem from motives that are against China's interests. Others will be well-meaning, aiming to save China from itself and reduce its period of chaos and confusion. However, the hope for world peace, as well as China’s freedom, lies in following a policy of Hands Off. Give China a chance. Give it time. The real danger is in rushing, being impatient, and possibly in America wanting to prove that we're a player in international affairs and that we have a positive foreign policy too. A well-meaning approach of supporting China from the outside, rather than supporting its ambitions from within, might ultimately do just as much harm as a policy rooted in hostility.

 VII
A Parting of the Ways for America

1

The realities of American policy in China and toward China are going to be more seriously tested in the future than they ever have been in the past. Japanese papers have been full of protests against any attempt by the Pacific Conference to place Japan on trial. Would that American journals were full of warnings that America is on trial at the Conference as to the sincerity and intelligent goodwill behind her amiable professions. The world will not stop with the Pacific Conference; the latter, however important, will not arrest future developments, and the United States will continue to be on trial till she has established by her acts a permanent and definite attitude. For the realities of the situation cannot be exhausted in any formula or in any set of diplomatic agreements, even if the Conference confounds the fears of pessimists and results in a harmonious union of the powers in support of China’s legitimate aspirations for free political and economic growth.

The realities of American policy in China and towards China are going to be tested more seriously in the future than they ever have been before. Japanese newspapers have been filled with protests against any attempt by the Pacific Conference to put Japan on trial. If only American publications were filled with warnings that America is on trial at the Conference regarding the sincerity and genuine goodwill behind its friendly statements. The world won't stop with the Pacific Conference; while it's important, it won't halt future developments, and the United States will continue to be on trial until it establishes a permanent and clear attitude through its actions. The realities of the situation can’t be captured in any formula or set of diplomatic agreements, even if the Conference eases the fears of pessimists and leads to a harmonious alliance of the powers in support of China’s legitimate aspirations for free political and economic growth.

The Conference, however, stands as a symbol of the larger situation; and its decisions or lack of them will be a considerable factor in the determination of subsequent events. Sometimes one is obliged to fall back on a trite phrase. We are genuinely at a parting of the ways. Even if we should follow in our old path, there would none the less be a parting of the ways, for we cannot consistently tread the old path unless we are animated by a much more conscious purpose and a more general and intelligent knowledge of affairs than have controlled our activities in the past.

The Conference, however, represents a larger situation; and its decisions, or the absence of them, will significantly influence what happens next. Sometimes you have to rely on a cliché. We're truly at a crossroads. Even if we decide to stick to our old ways, there would still be a crossroads because we can’t continue on the old path unless we're driven by a much clearer purpose and a broader understanding of the issues at hand than what has guided us in the past.

The ideas expressed by an English correspondent about the fear that America is soon to be an active source of danger in the Far East are not confined to persons on foreign shores. The prevailing attitude in some circles of American opinion is that called by President Hibben cynical pessimism. All professed radicals and many liberals believe that if our course has been better in the past it has been due to geographical accidents combined with indifference and with our undeveloped economic status. Consequently they believe that since we have now become what is  called a world-power and a nation which exports instead of importing capital, our course will soon be as bad as that of any of the rest of them. In some quarters this opinion is clearly an emotional reaction following the disillusionments of Versailles. In others, it is due to adherence to a formula: nothing in international affairs can come out of capitalism and America is emphatically a capitalistic country. Whether or not these feelings are correct, they are not discussable; neither an emotion nor an absolute formula is subject to analysis.

The ideas shared by an English correspondent about the fear that America is about to become a real source of danger in the Far East aren't just held by people abroad. Some circles of American opinion reflect what President Hibben calls cynical pessimism. All self-identified radicals and many liberals think that if our past behavior has been better, it's mainly due to geographical luck mixed with indifference and our underdeveloped economic status. Because of this, they believe that now that we’ve become what is called a world power and a nation that exports rather than imports capital, our actions will soon match the worst of the others. In some cases, this view is clearly an emotional reaction following the disillusionment from Versailles. In others, it's based on a formula: nothing good can come out of capitalism in international affairs, and America is definitely a capitalist country. Whether or not these feelings are valid, they aren't debatable; emotions and absolute formulas can't be analyzed.

But there are specific elements in the situation which give grounds for apprehension as to the future. These specific elements are capable of detection and analysis. An adequate realization of their nature will be a large factor in preventing cynical apprehensions from becoming actual. This chapter is an attempt at a preliminary listing, inadequate, of course, as any preliminary examination must be. While an a priori argument based on a fatalistic formula as to how a “capitalistic nation” must conduct itself does not appeal to me, there are nevertheless concrete facts which are suggested by that formula. Part of our comparatively better course in China in the past is due to the fact that we have not had the continuous and close alliance between the State Department and big banking interests which is found in the case of foreign powers. No honest well-informed history of developments in China could be written in which the Russian Asiatic Bank, the Foreign Bank of Belgium, the French Indo-China Bank and Banque Industrielle, the Yokohama Specie Bank, the Hongkong-Shanghai Bank, etc., did not figure prominently. These banks work in the closest harmony, not only with railway and construction syndicates and big manufacturing interests at home, but also with their respective foreign offices. It is hardly too much to say that legations and banks have been in most important matters the right and left hands of the same body. American business interests have complained an the past that the American government does not give to American traders abroad the same support that the nationals of other states receive. In the past these complaints have centred largely about actual wrongs suffered or believed to have been suffered by American business undertakings carried on in a foreign country. With the present expansion of capital and of commerce, the same complaints and demands are going to be made not with  reference to grievances suffered, but with reference to furthering, to pushing American commercial interests in connection with large banking groups. It would take a credulous person to deny the influence of big business in domestic politics. As we become more interested in commerce and banking enterprises what assurance have we that the alliance will not be transferred to international politics?

But there are specific factors in the situation that raise concerns about the future. These factors can be identified and analyzed. Understanding their nature will play a significant role in preventing cynical fears from becoming real. This chapter is an attempt at a preliminary list, though it’s inevitably incomplete since any initial exploration must be. While I don't find an argument based on a fatalistic view of how a “capitalistic nation” should behave convincing, there are still concrete facts implied by that view. Part of our relatively better track record in China in the past can be attributed to the absence of a continuous and close alliance between the State Department and major banking interests, unlike other foreign powers. No honest and well-informed history of developments in China could exclude the Russian Asiatic Bank, the Foreign Bank of Belgium, the French Indo-China Bank and Banque Industrielle, the Yokohama Specie Bank, the Hongkong-Shanghai Bank, and others. These banks operate closely with domestic railway and construction syndicates and major manufacturing interests, as well as with their respective foreign offices. It’s not too much to say that embassies and banks have often acted as the right and left hands of the same entity. American business interests have previously complained that the American government does not provide the same level of support to American traders abroad as other countries do for their nationals. Historically, these complaints have focused mainly on actual or perceived injustices faced by American businesses operating in foreign markets. With the current growth in capital and commerce, similar complaints and demands will be made not just concerning past grievances but in an effort to advance American commercial interests linked with major banking groups. It would take someone overly naive to deny the influence of big business in domestic politics. As we become more invested in commerce and banking ventures, what guarantees do we have that this alliance won’t extend into international politics?

It should be noted that the policy of the open door as affirmed by the great powers—and as frequently violated by them—even if it be henceforth observed in good faith, does not adequately protect us from this danger. The open door policy is not primarily a policy about China herself but rather about the policies of foreign powers toward one another with respect to China. It demands equality of economic opportunity for different nations. Were it enforced, it would prevent the granting of monopolies to any one nation: there is nothing in it to render impossible a conjoint exploitation of China by foreign powers, an organized monopoly in which each nation has its due share with respect to others. Such an organization might conceivably reduce friction among the great powers, and thereby reduce the danger of future wars—as long as China herself is impotent to go to war. The agreement might conceivably for a considerable time be of benefit to China herself. But it is clear that for the United States to become a partner in any such arrangement would involve a reversal of our historic policy in the Far East. It might be technically consistent with the open door policy, but it would be a violation of the larger sense in which the American people has understood and praised that ideal. He is blind who does not see that there are forces making for such a reversal. And since we are all more or less blind, an opening of our eyes to the danger is one of the conditions of its not being realized.

It’s important to recognize that the open door policy, as supported by the major powers—and often disregarded by them—does not fully protect us from this threat, even if it's followed sincerely from now on. The open door policy isn't mainly about China itself, but about how foreign powers interact with each other regarding China. It calls for equal economic opportunities for different nations. If enforced, it would stop any single nation from getting monopolies; however, it doesn't prevent a joint exploitation of China by foreign powers, where each nation has a fair share relative to others. Such an arrangement could potentially lessen conflict among the major powers and, in turn, minimize the risk of future wars—provided China remains unable to defend itself. This agreement might be beneficial to China for a considerable time. However, it's evident that for the United States to join such a setup would mean a shift away from our long-standing policy in the Far East. While it might technically align with the open door policy, it goes against the broader understanding that the American people have held and admired regarding that ideal. Anyone who fails to see that there are forces pushing for such a shift is blind. And since we are all somewhat blind to this, becoming aware of the danger is crucial to preventing it from becoming a reality.

One of the forces which is operative is indicated by the phrase that an international agreement on an economic and financial basis might be of value to China herself. The mere suggestion that such a thing is possible is abhorrent to many, especially to radicals. There seems to be something sinister in it. So it is worth explaining how and why it might be so. In the first place, it would obviously terminate the particularistic grabbing for “leased” territory, concessions and spheres of influence which  has so damaged China. At the present time, the point of this remark lies in its implied reference to Japan, as at one time it might have applied to Russia. Fear of Japan’s aims in China is not confined to China; the fear is widespread. An international economic arrangement may therefore be plausibly presented as the easiest and most direct method of relieving China of the Japanese menace. For Japan to stay out would be to give herself away; if she came in, it would subject Japanese activities to constant scrutiny and control. There is no doubt that part of the fear of Japan regarding the Pacific Conference is due to a belief that some such arrangement is contemplated. The case is easily capable of such presentation as to make it appeal to Americans who are really friendly to China and who haven’t the remotest interest in her economic exploitation.

One factor at play is highlighted by the idea that an international agreement based on economic and financial grounds could benefit China itself. The mere thought of this possibility is disturbing to many, especially radicals. It seems to carry some sinister undertones. Therefore, it’s worth explaining how and why this might be the case. Firstly, it would clearly put an end to the individualistic grabbing of "leased" territories, concessions, and spheres of influence that has severely harmed China. Right now, this comment implicitly points to Japan, as it once might have referred to Russia. Concerns about Japan’s intentions in China are not limited to China itself; this fear is widespread. An international economic arrangement could thus be seen as the easiest and most straightforward way to free China from the threat posed by Japan. For Japan to remain outside of such an arrangement would reveal its intentions; if it participated, its actions would be subject to ongoing scrutiny and oversight. There's no doubt that part of Japan's apprehension about the Pacific Conference stems from the belief that such an arrangement is being considered. This situation can easily be framed in a way that appeals to Americans who genuinely care about China and have no interest in exploiting her economically.

The arrangement would, for example, automatically eliminate the Lansing-Ishii agreement with its embarrassing ambiguous recognition of Japan’s special interests in China.

The arrangement would, for example, automatically eliminate the Lansing-Ishii agreement with its awkwardly vague recognition of Japan’s special interests in China.

The other factor is domestic. The distraction and civil wars of China are commonplaces. So is the power exercised by the military governors and generals. The greater one’s knowledge, the more one perceives how intimately the former evil is dependent upon the latter. The financial plight of the Chinese government, its continual foreign borrowings which threaten bankruptcy in the near future, depend upon militaristic domination and wild expenditure for unproductive purposes and squeeze. Without this expense, China would have no great difficulty henceforth in maintaining a balance in her budget. The retardation of public education whose advancement—especially in elementary schools—is China’s greatest single need is due to the same cause. So is the growth in official corruption which is rapidly extending into business and private life.

The other factor is domestic. The distractions and civil wars in China are well-known issues. So is the power held by military governors and generals. The more you know, the clearer it becomes how closely the first issue is linked to the second. The financial struggles of the Chinese government, along with its ongoing foreign loans that risk bankruptcy in the near future, are tied to military control and excessive spending on unproductive activities. Without these costs, China would have no major trouble from now on in keeping its budget balanced. The slowdown in public education, particularly in elementary schools, which is China's most pressing need, is caused by the same factors. The rise in official corruption, which is quickly spreading into business and private life, is also a result of this.

In fact, every one of the obstacles to the progress of China is connected with the rule of military factions and their struggles with one another for complete mastery. An economic international agreement among the great powers can be made which would surely reduce and possibly eliminate the greatest evils of “militarism.” Many liberal Chinese say in private that they would be willing to have a temporary international receivership for government finance, provided they could be assured of its nature and the exact date and conditions of its termination—a  proviso which they are sensible enough to recognize would be extremely difficult of attainment. American leadership in forming and executing any such scheme would, they feel, afford the best reassurance as to its nature and terms. Under such circumstances a plausible case can be made out for proposals which, under the guise of traditional American friendship for China, would in fact commit us to a reversal of our historic policy.

In fact, every obstacle to China’s progress is linked to the rule of military factions and their struggles for complete control. An international economic agreement among the major powers could definitely reduce and potentially eliminate the worst aspects of “militarism.” Many liberal Chinese privately express their willingness to accept a temporary international oversight for government finance, as long as they could be assured of its nature and the specific date and conditions for ending it—a  condition they understand would be very difficult to achieve. They believe that American leadership in creating and implementing such a plan would provide the best assurance regarding its nature and terms. In this context, a reasonable argument can be made for proposals that, while presented as traditional American friendship toward China, would actually lead us to reverse our historic policy.

There are radicals abroad and at home who think that our entrance into a Consortium already proves that we have entered upon the road of reversal and who naturally see in the Pacific Conference the next logical step. I have previously stated my own belief that our State Department proposed the Consortium primarily for political ends, as a means of checking the policy pursued by Japan of making unproductive loans to China in return for which she was getting an immediate grip on China’s natural resources and preparing the way for direct administrative and financial control when the day of reckoning and foreclosure should finally come. I also said that the Consortium was between two stools, the financial and the political and that up to the present its chief value had been negative and preventive, and that jealousy or lack of interest by Japan and Great Britain in any constructive policy on the part of the Consortium was likely to maintain the same condition. I have seen no reason thus far to change my mind on this point, nor in regard to the further belief that probably the interests of China in the end will be best served by the continuation of this deterrent function. But the question is bound to arise: why continue the Consortium if it isn’t doing anything? The pressure of foreign powers interested in the exploitation of China and of impatient American economic interests may combine to put an end to the present rather otiose existence led by the Consortium. The two stools between which the past action of the American government has managed to swing the Consortium may be united to form a single solid bench.

There are radicals both overseas and at home who believe that our joining the Consortium already shows we've started down the path of reversal, and they naturally view the Pacific Conference as the next logical step. I've already shared my belief that our State Department proposed the Consortium mainly for political reasons, as a way to counter Japan's strategy of making unproductive loans to China. In exchange, Japan was gaining immediate access to China's natural resources and setting the stage for direct administrative and financial control when everything finally comes to a head. I also mentioned that the Consortium was caught between financial and political interests, and so far its main value has been negative and preventative. The indifference or jealousy from Japan and Great Britain towards any constructive efforts by the Consortium is likely to keep this situation as it is. I haven’t found any reason to change my mind about this, nor about the belief that in the end, China’s interests will probably be best served by the continuation of this deterrent role. However, the question will inevitably come up: why keep the Consortium going if it’s not achieving anything? The pressure from foreign powers eager to exploit China, along with impatient American economic interests, might come together to bring an end to the Consortium’s currently ineffective existence. The two stools that have allowed the American government to swing the Consortium in the past could be merged into one solid bench.

At the risk of being charged with credulous gullibility, or something worse, I add that up to the present time the American phase of the Consortium hasn’t shown perceptible signs of becoming a club exercised by American finance over China’s economic integrity and independence. I believe the repeated statements of the American representative that he himself and  the interests he represents would be glad if China proved her ability to finance her own public utilities without resorting to foreign loans. This belief is confirmed by the first public utterance of the new American minister to China who in his reference to the Consortium laid emphasis upon its deterrent function and upon the stimulation it has given to Chinese bankers to finance public utilities. And it is the merest justice to Mr. Stevens, the American representative, to say that he represents the conservative investment type of banker, not the “promotion” type, and that thus far his great concern has been the problem of protecting the buyer of such securities as are passed on by the banks to the ultimate investor—so much so that he has aroused criticism from American business interests impatient for speedy action. But there is a larger phase of the Consortium concerning which I think apprehensions may reasonably be entertained.

At the risk of being seen as overly naive, or worse, I want to point out that so far, the American involvement in the Consortium hasn’t shown any clear signs of turning into a group controlled by American finance over China’s economic integrity and independence. I believe the repeated statements from the American representative that he and   the interests he represents would be happy if China could finance its own public utilities without needing foreign loans. This belief is backed up by the first public comments from the new American minister to China, who highlighted the Consortium's role in deterring negative actions and encouraging Chinese bankers to fund public utilities. It’s only fair to say that Mr. Stevens, the American representative, represents conservative investment bankers, not the “promotion” type, and so far, his main concern has been protecting the buyers of the securities that banks pass on to the ultimate investors—so much so that he's faced criticism from American business interests eager for quick results. However, there is a broader aspect of the Consortium that I believe raises valid concerns.

Suppose, if merely by way of hypothesis, that the American government is genuinely interested in China and in making the policy of the open door and Chinese territorial and administrative integrity a reality, not merely a name, and suppose that it is interested in doing so from an American self-interest sufficiently enlightened to perceive that the political and economic advancement of the United States is best furthered by a policy which is identical with China’s ability to develop herself freely and independently: what then would be the wise American course? In short, it would be to view our existing European interests and issues (due to the war) and our Far Eastern interests and issues as parts of one and the same problem. If we are actuated by the motive hypothetically imputed to our government and we fail in its realization, the chief reason will be that we regard the European question and the Asiatic problem as two different questions, or because we identify them from the wrong end.

Let's say, just for the sake of argument, that the American government truly cares about China and wants to make the open door policy and Chinese territorial and administrative integrity a reality, not just a name. And let's assume it’s motivated by a self-interest that’s smart enough to realize that the U.S.'s political and economic progress is best served by a policy that aligns with China’s ability to grow freely and independently: what would be the best course of action for America? In short, it would be to view our current European interests and issues (due to the war) alongside our Far Eastern interests and issues as all part of the same problem. If we are driven by the motive we’ve just imagined for our government and fail to achieve it, the main reason will be that we see the European question and the Asian issue as two separate problems or because we’re approaching them from the wrong perspective.

Our present financial interest in Europe is enormous. It involves not merely foreign governmental loans but a multitude of private advances and commitments. These financial entanglements affect not merely our industry and commerce but our politics. They involve much more immediately pressing concerns than to our Asiatic relations, and they involve billions where the latter involve millions. The danger under such conditions  that our Asiatic relations will be sacrificed to our European is hardly fanciful.

Our current financial interests in Europe are huge. They include not just loans to foreign governments but also a variety of private investments and commitments. These financial ties impact not only our industries and businesses but also our politics. They involve much more urgent issues than our relationships with Asia, and they involve billions of dollars compared to the millions involved in the latter. Under these circumstances, the risk that our Asian relations will be compromised for our European interests is not just a fantasy.

To make this abstract statement concrete, the firm of bankers, J. P. Morgan & Co., which is most heavily involved in European indebtedness to the United States, is the firm which is the leading spirit in the Consortium for China. It seems almost inevitable that the Asiatic problem should look like small potatoes in comparison with the European one, especially as our own industrial recuperation is so closely connected with European relations, while the Far East cuts a negligible figure. To my mind the real danger to set out upon selfish exploitation of China: intelligent self-interest, tradition and the fact that our chief asset in China is our past freedom from a predatory course, dictate a course of cooperation with China. The danger is that China will be subordinated and sacrificed because of primary preoccupation with the high finance and politics of Europe, that she will be lost in the shuffle.

To make this abstract statement clear, the banking firm J. P. Morgan & Co., which is most involved in European debt to the United States, is the leading force behind the Consortium for China. It seems almost unavoidable that the Asian issue appears minor compared to the European one, especially since our own industrial recovery is so closely linked to European relations, while the Far East seems insignificant. In my opinion, the real danger is pursuing selfish exploitation of China: intelligent self-interest, tradition, and the fact that our main advantage in China is our history of not being predatory suggest a path of cooperation with China. The risk is that China will be overlooked and sacrificed because of our primary focus on European high finance and politics, getting lost in the chaos.

The European aspect of the problem can be made more concrete by reference to Great Britain in particular. That country suffers from the embarrassment of the Japanese alliance. She has already made it sufficiently clear that she would like to draw America into the alliance, making it tripartite, since that would be the easiest way of maintaining good relations with both Japan and the United States. There is no likelihood that any such step will be consummated. But British diplomacy is experienced and astute. And by force of circumstances our high finance has contracted a sort of economic alliance with Great Britain. There is no wish to claim superior virtue for America or to appeal to the strong current of anti-British sentiment. But the British foreign office exists and operates apart from the tradition of liberalism which has mainly actuated English domestic politics. It stands peculiarly for the Empire side of the British Empire, no matter what party is in the saddle in domestic affairs. Every resource will be employed to bring about a settlement at the Pacific Conference which, even though it includes some degree of compromise on the part of Great Britain, will bend the Asiatic policy of the United States to the British traditions in the Far East, instead of committing Great Britain to combining with the United States in making a reality of the integrity of China to which both countries are nominally  committed. It does not seem an extreme statement to say that the immediate issues of the Conference depend upon the way in which our financial commitments in Europe are treated, either as reasons for our making concessions to European policy or on the other hand as a means of securing an adherence of the European powers to the traditional American policy.

The European aspect of the problem can be made more concrete by looking specifically at Great Britain. That country is feeling the strain of its alliance with Japan. It has already made it clear that it wants to involve America in the alliance to make it a tripartite one, as that would be the easiest way to maintain good relations with both Japan and the United States. However, there's little chance that any such step will actually happen. British diplomacy is skilled and experienced. By necessity, our financial dealings have formed a sort of economic alliance with Great Britain. There's no desire to claim that America is morally superior or to tap into the strong current of anti-British feelings. Yet, the British foreign office operates independently from the liberal tradition that largely shapes domestic politics in England. It represents the imperial side of the British Empire, regardless of which party is in power domestically. Every resource will be used to ensure a resolution at the Pacific Conference that, despite requiring some compromise from Great Britain, will align the U.S. Asian policy with British traditions in the Far East, rather than having Great Britain collaborate with the U.S. to genuinely uphold the integrity of China, to which both nations are nominally committed. It doesn't seem extreme to say that the immediate issues of the Conference depend on how our financial obligations in Europe are perceived, either as reasons for making concessions to European policy or as a way to ensure that European powers adhere to the traditional American approach.

A publicist in China who is of British origin and a sincere friend of China remarked in private conversation that if the United States could not secure the adherence of Great Britain to her Asiatic policy by persuasion (he was deploring the Japanese alliance) she might do so by buying it—through remission of her national debt to us. It is not necessary to resort to the measure so baldly suggested. But the remark at least suggests that our involvement in European, especially British, finance and politics may be treated in either of two ways for either of two results.

A British publicist in China and a genuine friend of the country mentioned in a private conversation that if the United States couldn’t convince Great Britain to support its Asian policy through persuasion (he was criticizing the Japanese alliance), it might resort to buying that support by writing off its national debt to us. It’s not necessary to resort to such a straightforward approach. However, the comment suggests that our involvement in European, particularly British, finance and politics can be seen in two different ways for two possible outcomes.

2

That the Chinese people generally speaking has a less antagonistic feeling toward the United States than towards other powers seems to me an undoubted fact. The feeling has been disturbed at divers times by the treatment of the Chinese upon the Pacific coast, by the exclusion act, by the turning over of our interest in the building of the Peking-Canton (or Hankow) railway to a European group, by the Lansing-Ishii agreement, and finally by the part played by President Wilson in the Versailles decision regarding Shantung. Those disturbances in the main, however, have made them dubious as to our skill, energy and intelligence rather than as to our good-will. Americans, taken individually and collectively, are to the Chinese—at least such was my impression—a rather simple folk, taking the word in its good and its deprecatory sense. In noting the Chinese reaction to the proposed Pacific Conference, it was interesting to see the combination of an almost unlimited hope that the United States was to lead in protecting them from further aggressions and in rectifying existing evils, with a lack of confidence, a fear that the United States would have something put over on it.

The general opinion among the Chinese people is that they feel less antagonistic toward the United States compared to other countries, and I believe that's a clear fact. This sentiment has been shaken at various times due to the treatment of Chinese individuals on the Pacific coast, the exclusion act, the transfer of our interests in constructing the Peking-Canton (or Hankow) railway to a European group, the Lansing-Ishii agreement, and finally, President Wilson's involvement in the Versailles decision regarding Shantung. However, these issues have mostly made the Chinese doubt our skill, energy, and intelligence rather than our goodwill. Americans, both as individuals and as a group, seem to the Chinese—at least that was my impression—to be fairly straightforward people, with both positive and negative connotations of the term. Observing the Chinese response to the proposed Pacific Conference was interesting; it revealed a mix of almost limitless hope that the United States would lead in protecting them from further aggressions and in solving existing problems, alongside a lack of confidence and a fear that the United States would be taken advantage of.

Friendly feeling is of course mainly based upon a negative  fact, the fact that the United States has taken no part in “leasing” territories, establishing spheres and setting up extra-national post-offices. On the positive side stands the contribution made by Americans to education, especially medical, and that of girls and women, and to philanthropy and relief. Politically, there are the early service of Burlinghame, the open door policy of John Hay (though failure to maintain it in fact while securing signatures to it on paper is a considerable part of the Chinese belief in our defective energy) and the part played by the United States in moderating the terms of the settlement of the Boxer outbreak, in addition to a considerable number of minor helpful acts. China also remembers that we were the only nation to take exception to the treaties embodying the Twenty-one Demands. While our exception was chiefly made on the basis of our own interests which these treaties might injuriously affect, a sentiment exists that the protest was a pledge of assistance to China when the time should be opportune for raising the whole question. And without doubt the reservation made on May 16, 1915, by our State Department is a strong card at the forthcoming Conference if the Department wishes to play it.

Friendly feelings are mainly built on a negative fact: the United States hasn’t engaged in “leasing” territories, creating spheres of influence, or establishing international post-offices. On the positive side, there's the contribution of Americans to education, particularly in medicine, and support for girls and women, along with philanthropy and relief efforts. Politically, we remember Burlinghame’s early service, John Hay's open door policy (though the failure to actually maintain it, despite having signatures, has contributed to the Chinese belief in our lack of energy), and the part the United States played in easing the terms after the Boxer Rebellion, along with many smaller acts of help. China also recalls that we were the only nation to object to the treaties that included the Twenty-one Demands. While our objection was mainly based on how those treaties could harm our interests, there’s a sentiment that the protest was a promise of support to China when the time comes to address the issue. Without a doubt, the reservation made by our State Department on May 16, 1915, is a strong asset at the upcoming Conference if the Department decides to use it.

From an American standpoint, the open door principle represents one of the only two established principles of American diplomacy, the other being, of course, the Monroe Doctrine. In connection with sentimental or idealistic associations which have clustered about it, it constitutes us in some vague fashion in both the Chinese and American public opinion a sort of guardian or at least spokesman of the interests of China in relation to foreign powers. Although, as was pointed out in a former chapter, the open door policy directly concerns other nations in their relation to China rather than China herself, yet the violation of the policy by other powers has been so frequent and so much to the detriment of China, that American interest, prestige and moral sentiment are now implicated in such an enforcement of it as will redound to the advantage of China.

From an American perspective, the open door principle is one of the only two established principles of American diplomacy, the other being the Monroe Doctrine. With the sentimental or idealistic associations that have surrounded it, it positions us, in some vague way, as a sort of guardian or at least a spokesperson for China’s interests in relation to foreign powers, both in Chinese and American public opinion. Although, as noted in a previous chapter, the open door policy primarily concerns other nations' relationships with China rather than China itself, the frequent violations of this policy by other powers have been detrimental to China. As a result, American interests, prestige, and moral sentiment are now tied to enforcing it in a way that benefits China.

Citizens of other countries are often irritated by a suggestion of such a relationship between the United States and China. It presents itself as a proclamation of superior national virtue under cover of which the United States aims to establish its influence in China at the expense of other countries. The irritation  is exasperated by the fact that the situation as it stands is an undoubted economic and political asset of the United States in China. We may concede without argument any contention that the situation is not due to any superior virtue but rather to contingencies of history and geography—in which respect it is not unlike many things that pass for virtues with individuals. The contention may be admitted without controversy because it is not pertinent to the main issue. The question is not so much how the state of affairs came about as what it now is, how it is to be treated and what consequences are in flow from it. It is a fact that up to the present an intelligent self-interest of America has coincided with the interests of a stable, independent and progressive China. It is also a fact that American traditions and sentiments have gathered about this consideration so that now there is widespread conviction in the American people of moral obligations of assistance and friendly protection owed by us to China. At present, no policy can be entered upon that does not bear the semblance of fairness and goodwill. We have at least so much protection against the dangers discussed in the prior chapter.

Citizens of other countries often feel annoyed by the idea of a special relationship between the United States and China. It comes across as a claim of superior national virtue, behind which the U.S. seeks to expand its influence in China to the detriment of other nations. This annoyance is made worse by the fact that the current situation is a clear economic and political advantage for the U.S. in China. We can agree without debate that this situation isn't due to any inherent superiority but instead stems from historical and geographical factors—similar to many traits that people sometimes mistake for virtues. This point of contention can be accepted without argument because it isn’t central to the main issue. The question isn't so much how things got to this point, but what the situation is now, how we should approach it, and what the potential consequences are. It's a fact that so far, America's practical self-interest has aligned with the interests of a stable, independent, and progressive China. It’s also true that American traditions and values have formed around this idea, creating a widespread belief among Americans that we have moral responsibilities to support and protect China. Currently, no policy can be pursued without appearing fair and benevolent. We at least have some protection against the dangers discussed in the previous chapter.

Among Americans in China and presumably at home there is a strong feeling that we should adopt for the future stronger and more positive policies than we have maintained in the past. This feeling seems to me fraught with dangers unless we make very clear to ourselves in just what respects we are to continue and make good in a more positive manner our traditional policy. To some extent our past policy has been one of drifting. Radical change in this respect may go further than appears upon the surface in altering other fundamental aspects of our policy. What is condemned as drifting is in effect largely the same thing that is also praised as non-interference. A detailed settled policy, no matter how “constructive” it may appear to be, can hardly help involving us in the domestic policies of China, an affair of factions and a game which the Chinese understand and play much better than any foreigners. Such an involvement would at once lessen a present large asset in China, aloofness from internal intrigues and struggles.

Among Americans in China and likely at home, there’s a strong sentiment that we should adopt stronger and more positive policies for the future than we have in the past. I think this feeling comes with risks unless we clearly define how we will continue and improve our traditional policy in a more positive way. To some extent, our past policy has been somewhat aimless. A drastic change might have effects that go beyond what we see on the surface, impacting other fundamental aspects of our policy. What is criticized as aimlessness is often the same thing that is celebrated as non-interference. A detailed, well-defined policy, no matter how “constructive” it seems, will almost certainly pull us into China's domestic issues, which are driven by factions and a game that the Chinese understand and navigate much better than any foreigner. Such involvement would quickly undermine a significant advantage we have in China: our detachment from internal conflicts and struggles.

The specific protests of Chinese in this country—mainly Cantonese—against the Consortium seem to me mainly based on misapprehension. But their general attitude of opposition nevertheless  conveys an important lesson. It is based on a belief that the effect of the Consortium will be to give the Peking government a factitious advantage in the internal conflict which is waging in China, so that to all intents and purposes it will mark a taking of sides on our part. It is well remembered that the effect of the “reorganization” loan of the prior Consortium—in which the United States was not a partner—was to give Yuan Shi Kai the funds which seated him and the militarist faction after him, firmly in the governmental saddle. Viewing the matter from a larger point of view than that of Canton vs. Peking, the most fundamental objection I heard brought by Chinese against the Consortium was in effect as follows: The republican revolution in China has still to be wrought out; the beginning of ten years ago has been arrested. It remains to fight it out. The inevitable effect of increased foreign financial and economic interest in China, even admitting that its industrial effect was advantageous to China, would be to create an interest in stabilizing China politically, which in effect would mean to sanctify the status quo, and prevent the development of a revolution which cannot be accomplished without internal disorders that would affect foreign investments unfavorably. These considerations are not mentioned for the sake of throwing light on the Consortium: they are cited as an illustration of the probability that a too positive and constructive development of our tradition of goodwill to China would involve us in an interference with Chinese domestic affairs injurious to China’s welfare, to that free and independent development in which we profess such interest.

The specific protests from the Chinese in this country—mostly Cantonese—against the Consortium seem to be largely based on misunderstanding. However, their general attitude of opposition still   conveys an important lesson. They believe that the Consortium will give the Peking government an unfair advantage in the internal conflict raging in China, effectively marking our side in the dispute. It's well remembered that the outcome of the “reorganization” loan from the previous Consortium—where the United States was not a partner—was to provide Yuan Shi Kai with the funds that allowed him and the militarist faction that followed him to take control of the government. Taking a broader perspective beyond Canton vs. Peking, the main objection I heard from the Chinese regarding the Consortium was essentially as follows: The republican revolution in China is still unfinished; it was halted ten years ago. The struggle must continue. The unavoidable result of increased foreign financial and economic interests in China, even if they had some industrial benefits, would be to foster an interest in stabilizing China politically, which would effectively perpetuate the status quo and hinder the development of a revolution that cannot occur without internal turmoil that would negatively impact foreign investments. These points are not raised simply to shed light on the Consortium; they serve as an illustration of the likelihood that a too aggressive and constructive approach to our goodwill towards China could lead to interference in Chinese domestic matters that would harm China’s welfare and hinder the free and independent development we claim to support.

But how, it will be asked, are we to protect China from foreign depredations, particularly those of Japan, how are we to change our nominal goodwill into a reality, if we do not enter much more positive and detailed policies? If there was in existence at the present time any such thing as a diplomacy of peoples as distinct from a diplomacy of governments, the question would mean something quite different from what it now means. As things now stand the people should profoundly distrust the politicians’ love for China. It is too frequently the reverse side of fear and incipient hatred of Japan, colored perhaps by anti-British feeling.

But how, it will be asked, are we supposed to protect China from foreign threats, especially from Japan? How can we turn our supposed goodwill into action if we don’t adopt much more specific and proactive policies? If there were such a thing as diplomacy of the people, as opposed to diplomacy of the governments, this question would carry a very different meaning than it does now. As it stands, the public should deeply doubt the politicians’ affection for China. It often comes from fear and an underlying animosity toward Japan, possibly influenced by anti-British sentiments.

There should be no disguising of the situation. The aggressive  activities of other nations in China, centering but not exhausted at this time in Japan, are not merely sources of trouble to China but they are potential causes of trouble in our own international relationships. We are committed by our tradition and by the present actualities of the situation to attempting something positive for China as respects her international status, to live up to our responsibility is a most difficult and delicate matter. We have on the one side to avoid getting entangled in quasi-imperialistic European policies in Asia, whether under the guise of altruism, of putting ourselves in a position where we can exercise a more effective supervision of their behavior, or by means of economic expansion. On the other side, we have to avoid drifting into that kind of covert or avowed antagonism to European and Japanese imperialism which will only increase friction, encourage a combination especially of Great Britain and Japan—-or of France and Japan—against us, and bring war appreciably nearer.

There should be no hiding from the reality. The aggressive activities of other nations in China, currently focused but not limited to Japan, are not just sources of trouble for China; they also pose potential issues for our own international relationships. We are bound by our traditions and the current situation to try to do something positive for China's international status. Upholding our responsibility is extremely challenging and sensitive. On one hand, we must steer clear of getting caught up in quasi-imperialist European policies in Asia, whether it's under the pretense of altruism, positioning ourselves to better oversee their actions, or through economic expansion. On the other hand, we need to avoid slipping into either a hidden or open hostility towards European and Japanese imperialism, which would only heighten tensions, encourage a coalition—especially between Great Britain and Japan or between France and Japan—against us, and bring war significantly closer.

We need to bear in mind that China will not be saved from outside herself. Even if by a successful war we should relieve China from Japanese encroachments, from all encroachments, China would not of necessity be brought nearer her legitimate goal of orderly and prosperous internal development. Apart from the question of how far war can now settle any fundamental issues without begetting others as dangerous, China of all countries is the one where settlement by force, especially by outside force, is least applicable, and most likely to be enormously disserviceable. China is used to taking time to deal with her problems: she can neither understand not profit by impatient methods of the western world which are profoundly alien to her genius. Moreover a civilization which is on a continental scale, which is so old that the rest of us are parvenus in comparison, which is thick and closely woven, cannot be hurried in its development without disaster. Transformation from within is its sole way out, and we can best help China by trying to see to it that she gets the time she needs in order to effect this transformation, whether or not we like the particular form it assumes at any particular time.

We need to remember that China won’t be saved from the outside. Even if we were to successfully fight a war to push back Japanese invasions or any outside attacks, it wouldn’t necessarily bring China closer to its goal of orderly and prosperous internal development. Aside from whether war can actually resolve any fundamental issues without creating other dangerous ones, China is the country where settling disputes through force, especially from outside, is the least effective and most likely to cause serious harm. China has a long history of taking its time to address its issues; it cannot understand or benefit from the impatient approaches of the Western world, which are completely foreign to its nature. Furthermore, a civilization as expansive and ancient as China, which is far more developed than others, cannot rush its progress without facing severe consequences. The only way out is through internal transformation, and we can best assist China by ensuring it has the time it needs to achieve this transformation, regardless of whether we agree with the specific forms it takes at any given moment.

A successful war in behalf of China would leave untouched her problems of education, of factional and sectional forces, of political immaturity showing itself in present incapacity for organization.  It would affect her industrial growth undoubtedly, but in all human probability for the worse, increasing the likelihood that she would enter upon an industrialization which would repeat the worst evils of western industrial life, without the immunities, resistances and remedial measures which the West has evolved. The imagination cannot conceive a worse crime than fastening western industrialism upon China before she has developed within herself the meaning of coping with the forces which it would release. The danger is great enough as it is. War waged in China’s behalf by western powers and western methods would make the danger practically irresistible. In addition we should gain a permanent interest in China which is likely to be of the most dangerous character to ourselves. If we were not committed by it to future imperialism, we should be luckier than we have any right to hope to be. These things are said against a mental protest to admitting even by implication the prospect of war with Japan, but it seems necessary to say them.

A successful war for China would leave her issues of education, internal divisions, and political immaturity unaddressed, as evidenced by her current inability to organize.   It would certainly impact her industrial growth, likely for the worse, increasing the chance that she would undergo industrialization that mimics the worst aspects of Western industrial life, without the protections and solutions that the West has developed. It’s hard to imagine a worse crime than imposing Western industrialism on China before she has figured out how to handle the forces it would unleash. The risk is already significant as it stands. War fought on China’s behalf by Western powers, using Western methods, would make the danger nearly impossible to manage. Furthermore, we would acquire a lasting interest in China that could pose serious risks to us. If we weren’t then bound to future imperialism, we’d be luckier than we should expect. These points are made against my better judgment to even hint at the possibility of war with Japan, but I feel it’s necessary to voice them.

These remarks are negative and vague as to our future course. They imply a confession of lack of such wisdom as would enable me to make positive definite proposals. But at least I have confidence in the wisdom and goodwill of the American and other peoples to deal with the problem, if they are only called into action. And the first condition of calling wisdom and goodwill into effective existence is to recognize the seriousness of the problem and the utter futility of trying to force its solution by impatient and hurried methods. Pro-Japanese apologetics is dangerous; it obscures the realities of the situation. An irritated anti-Japanism that would hasten the solution of the Chinese problem merely by attacking Japan is equally fatal to discovering and applying a proper method.

These comments are negative and unclear regarding our future direction. They suggest I lack the wisdom needed to make clear proposals. However, I have faith in the wisdom and goodwill of the American people and others to tackle the issue, as long as they are prompted to take action. The first step in mobilizing that wisdom and goodwill effectively is to acknowledge the seriousness of the problem and the complete futility of trying to rush its solution with impatient methods. Pro-Japanese arguments can be harmful; they cloud the realities of the situation. An irritated anti-Japanese sentiment that seeks to resolve the Chinese problem merely by attacking Japan is just as detrimental to finding and implementing the right approach.

More specifically and also more generically, proper publicity is the greatest need. If, as Secretary Hughes has intimated, a settlement of the problems of the Pacific is made a condition of arriving at an agreement regarding reduction and limitation of armaments, it is likely that the Conference might better never be held. In eagerness to do something which will pass as a settlement, either China’s—and Siberia’s—interests will be sacrificed in some unfair compromise, or irritation and friction will be increased—and in the end so will armaments. In any literal  sense, it is ridiculous to suppose that the problems of the Pacific can be settled in a few weeks, or months—or years. Yet the discussion of the problems, in separation from the question of armament, may be of great use. For it may further that publicity which is a pre-condition of any genuine settlement. This involves the public in diplomacy. But it also involves a wider publicity, one which will enlighten the world about the facts of Asia, internal and international.

More specifically and also more generally, effective publicity is the greatest need. If, as Secretary Hughes has suggested, resolving the issues in the Pacific is made a prerequisite for reaching an agreement on reducing and limiting armaments, it's likely that the Conference would be better off not happening at all. In the eagerness to achieve what might be seen as a resolution, either China's and Siberia's interests will be compromised in an unfair deal, or tensions will increase—and in the end, so will armaments. In any literal sense, it’s absurd to think that the issues in the Pacific can be resolved in a few weeks, months, or even years. However, discussing these issues separately from the question of armaments could be very beneficial. It could promote the kind of publicity that is essential for any genuine resolution. This involves the public in diplomacy. But it also means broader publicity, one that will inform the world about the realities of Asia, both internally and internationally.

Scepticism about Foreign Offices, as they are at present conducted, is justified. But scepticism about the power of public opinion, if it can be aroused and instructed, to reshape Foreign Office policies means hopelessness about the future of the world. Let everything possible be done to reduce armament, if only to secure a naval holiday on the part of the three great naval powers, and if only for the sake of lessening taxation. Let the Conference on Problems devote itself to discussing and making known as fully and widely as possible the element and scope of those problems, and the fears—or should one call them hopes?—of the cynics will be frustrated. It is not so important that a decision in the American sense of the Yap question be finally and forever arrived at, as it is that the need of China and the Orient in general for freer and fuller communications with the rest of the world be made clear—and so on, down or up the list of agenda. The commercial open door is needed. But the need is greater that the door be opened to light, to knowledge and understanding. If these forces will not create a public opinion which will in time secure a lasting and just settlement of other problems, there is no recourse save despair of civilization. Liberals can do something better than predicting failure and impugning motives. They can work for the opened door of open diplomacy, of continuous and intelligent inquiry, of discussion free from propaganda. To shirk this responsibility on the alleged ground that economic imperialism and organized greed will surely bring the Conference to failure is supine and snobbish. It is one of the factors that may lead the United States to take the wrong course in the parting of the ways.

Skepticism about Foreign Offices, as they currently operate, is understandable. However, doubting the ability of public opinion, if it can be awakened and informed, to change Foreign Office policies leads to a sense of hopelessness about the future of the world. Let's do everything we can to reduce armament, even if it's just to ensure a naval holiday among the three major naval powers, and to lessen taxes. The Conference on Problems should focus on discussing and widely sharing the nature and extent of these issues, and the fears—or should we say hopes?—of the cynics will be proven wrong. It's not as crucial to reach a definitive American-style resolution on the Yap question as it is to make clear the needs of China and the Orient as a whole for more open communication with the rest of the world, and so on, through the agenda. The commercial open door is essential. But it's even more critical that this door be opened to light, knowledge, and understanding. If these forces don't help create a public opinion that ultimately secures a lasting and fair resolution for other issues, there’s only despair for civilization ahead. Liberals can do more than just predict failure and question motives. They can advocate for open diplomacy, continuous and thoughtful inquiry, and discussions free from propaganda. To avoid this responsibility, claiming that economic imperialism and organized greed will inevitably lead to the Conference's failure, is lazy and elitist. It's a factor that could lead the United States to make the wrong choice at this crossroads.

Footnotes

  1. Since the text was written, the newspapers have stated that the Peking Government has officially refused to validate the agreement. Return
  2. This was written of course several months before Sun Yat Sen was reinstated in control of Canton by the successful revolt of his local adherents against the southern militarists who had usurped power and driven out Sun Yat Sen and his followers. But up to the time when I left China, in July of this year, it was true that the liberals of northern and central China who were bitterly opposed to the Peking Government, did not look to the Southern Government with much hope. The common attitude was a “plague upon both of your houses” and a desire for a new start. The conflict between North and South looms much larger in the United States than it did in China. Return
  3. Since the writing of this and the former chapter there are some signs that Wu Pei Fu wants to set up in control of the middle districts. Return

Transcriber’s Note

Obvious typographical errors have been repaired. The Table of Contents was added.

Obvious typographical errors have been corrected. The Table of Contents was added.

 

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