ARTICLE XIX
This Agreement is executed in quadruplicate in English and Chinese, one copy to be retained by the Corporation, one to be forwarded to the Government of the Republic of China, one to be forwarded to the British Minister at Peking, and one to be retained by the Contractors, and should any doubt arise as to the interpretation of the Agreement the English text shall be accepted as the standard.
Signed at Shanghai by the contracting parties on this fourth day of the seventh month of the second year of the Republic of China being the fourth day of July nineteen hundred and thirteen.
[APPENDIX II]
Legation of the United States of America
Peking, March 17, 1919.
Dr. Sun Yat Sen,
29 Rue Molière,
Shanghai, Kiangsu.
Dear Dr. Sun:
I have read with great interest your sketch project for the international development of China as embodied in your letter of February first to me. I congratulate you upon the broad and statesmanlike attitude with which you treat this very important subject. Your suggestion of united international participation in the development of China's resources deserves the support of all friends of China. It would be unfortunate indeed if the old régime of spheres of influence, struggles for concessions and activities flavoring of selfish exploitation should not, with the conclusion of the war, be relegated to the past. You are right in recognizing the necessity of a substitute for the old order and your proposal of a unified policy under international organization with Chinese participation for the larger development in China, naturally assuming that the inalienable rights of the Chinese people are to be amply safeguarded, meets this demand admirably.
We are hopeful that conditions in China may become such that the Chinese people themselves may be encouraged to put their money into productive enterprise and participate in the larger developments. We are hopeful that the day is not far distant when the Chinese Government may be able actively to interest itself in the encouragement of native industry to the end that native capital of which there is a very considerable quantity, may be induced to lend itself to productive enterprises, because of a Confidence in constructive policy on the part of the government.
If you will permit a suggestion, I would be inclined to reduce your admirable program to one which would be in closer keeping with the limits of the present world's resources in capital. As we all know devastated Europe is calling for capital for rehabilitation and other nations want capital for development programs of considerable proportions. Thus it would seem that China's program of development must of necessity take cognizance of her most immediate and most pressing needs. We are all united in that transportation occupies a prominent place in such a program. 50,000 miles of railway and 100,000 miles of good roads would seem to be sufficient to engage our attention for any plans for the immediate future. This would allow ample opportunity to penetrate the great rich unoccupied regions in the North and West, which should be opened to colonization and development as soon as possible in order to relieve the economic pressure of over population in sections along the coasts and waterways, and to accord opportunities to bring the rich regions of West China into contact with the trade of the rest of China and the world at large.
Along with transportation, China needs to develop its resources in iron and coal, the two great essentials to modern industrialism. Arrangements should be made whereby foreign capital can come to China's assistance in these two important industries, but care should be exercised so as to preserve to China the iron and coal necessary for its own uses, and prevent China's steel industry being mortgaged to foreign interests, in a way so as to jeopardize China's future in this important industry.
The reform of the currency and reforms in internal tax administrations are questions of immediate importance to China's economic and industrial development.
One of the greatest fields of potentiality in the immediate demands of the New China, is agriculture. The country depends in its final analysis upon the prosperity of its agriculture. At present probably as much as 80% of China's population is agricultural. China's greatest problem is the proper feeding and clothing of its vast population. Improved conditions in agriculture, opening of new lands to cultivation, irrigation and conservancy works, the encouragement of the cattle and sheep industries, the development of the cotton industry and the improvement of tea, silk and the seed crops of China, are timely subjects in any program of developments. There is a vast work to be done in agriculture in China, which will lead to prosperity generally, and make possible developments with native capital in other fields of activity, whereas if agricultural improvements are neglected, it will be difficult to insure prosperity in other directions.
Thus for the present, I hope the main thought may be centered on improvements in transportation, in currency and tax administrations, in the development of coal and iron industries, and in agriculture. Many of the suggested activities included in your very extensive program will follow as a corollary to the above.
In thinking of all these developments, I believe that we should always give thought to the fact that we are not dealing with a new country but with one in which social arrangements are exceedingly intricate and in which a long-tested system of agricultural and industrial organization exists. It is to my mind most important that the transition to new methods of industry and labor should not be sudden but that the old abilities and values should be gradually transmuted. It is important that the artistic ability existing in the silk and porcelain manufacture, etc. should be maintained and fostered, and not superseded by cheaper processes. It is also highly important that no export of food should be permitted, except as to clearly ascertained surpluses of production. It would produce enormous suffering were the food prices in China suddenly to be raised to the world market level. The one factor in modern organization which the Chinese must learn better to understand is the corporation, and the fiduciary relationship which the officers of the corporation ought to occupy with respect to the stockholders. If the Chinese cannot learn to use the corporation properly, the organization of the national credit cannot be effected. Here, too, it is necessary that the capital of personal honesty which was accumulated under the old system should not be lost but transferred to the new methods of doing business. So at every point where we are planning for a better and more efficient organization, it seems necessary to hold on to the values created in the past and not to disturb the entire balance of society by too sudden changes.
I wish again to congratulate you upon the statesmanlike view with which you consider the whole question of the development of your country, and the very timely suggestions you have to make in regard to a united policy of international participation in these developments. I am glad to note that the minds of the leaders among the Chinese people today are being centered more and more upon the constructive needs of the country and efforts are being made to meet these needs, in full appreciation of China's relations with the people of other nations, to the end that China's developments in the future may work in harmony with the world developments generally.
I should be glad to hear from you further and more in detail concerning development plans.
Believe me, with the highest regard,
Sincerely yours,
(Signed)
Paul S. Reinsch.
[APPENDIX III]
DEPARTMENT OF COMMERCE
Office of the Secretary
Washington
May 12, 1919.
Hon. Sun Yat Sen,
29 Rue Molière,
Shanghai, China.
Your Excellency:
I have read with the greatest interest the project for the International Development of China enclosed in your letter of March 17th, and agree with you that the economic development of China would be of the greatest advantage, not only to China, but to the whole of mankind.
The plans you propose, however, are so complex and extensive that it will take many years to work them out in detail. You doubtless are fully aware that it would take billions of dollars to carry out even a small portion of your proposals and that most of them would not be able to pay interest charges and expenses of operation for some years. The first question to be decided, therefore, is how the interest charges on the necessary loans could be met. The revenues of the Chinese Republic are already too heavily burdened with the interest charges on existing Government loans to warrant further charges, and hence it would seem necessary for the present to limit the projects for development to those which seem sufficiently remunerative to attract private capital. The government of the United States has consistently endeavored to manifest its disinterested friendship for the people of China and will undoubtedly coöperate in every proper way in proposals to advance their best interests.
Please accept my thanks for your kindness in submitting your proposals.
Respectfully,
(Signed)
William C. Redfield,
Secretary.
[APPENDIX IV]
Il Ministro Delia Guerra
Rome, 17 Maggio, 1919.
Most Honorable
Sun Yat Sen,
29 Rue Molière,
Shanghai, China.
Honorable Sir:
I thank you for having so kindly communicated to me the interesting project regarding how to employ through an International Organization the exuberant industrial activities created by the war, in order to exploit the great hidden riches of China.
Though aware of the practical difficulties which present themselves in the accomplishment of this project, it meets with my utmost appreciation, I assure you, for the modern spirit by which it is animated and for the depth of its conception.
Accept my best wishes for complete success, in the advantage of your noble country and for the interest of humanity.
Believe Me,
Faithfully yours,
(Signed)
General Caviglia.
[APPENDIX V]
Peking, June 17, 1919.
Hon. Sun Yat Sen,
Shanghai.
Dear Sir:
Permit me as a professional railway man to express my pleasure with your article appearing in the Far Eastern Review for June.
I will not at this time express approval or disapproval of the route which you have chosen but the idea of a line to connect up the great agricultural interior with the densely populated coast appeals to me strongly. I feel that you are making a definite contribution to railway economic theory in this respect, whereas the line itself would relieve congestion, open up a production area which would lower food costs, furnish employment to large numbers of soldiers to be disbanded, and put in circulation a large amount of hard money which would go far to correct the currency situation.
I am especially pleased to have your article appear at this time for I had already written one at the request of the publishers of the forthcoming "Trans-Pacific" magazine in which I touched upon the same line of thought. This will not appear until July and your opinions will have done much to prepare the minds of sceptics upon the subject by that time.
I trust that this intrusion of an entire stranger may be pardoned, and that you will continue to support the thought which you have so ably presented.
Very truly yours,
(Signed)
J. E. Baker.
[APPENDIX VI]
3, Piazza Del Popolo
Roma
August 30, 1919.
Dr. Sun Yat Sen,
29 Rue Molière,
Shanghai, China.
My Dear Dr. Sun Yat Sen:
I thank you for your very kind letter of June 19th which has just been forwarded to me from my office in Rome, also for your kindness in sending me your splendid project "To assist the Re-adjustment of Post-bellum Industries," and the program for "The International Development of China."
I assure you I read your proposals and studied the maps in connection with your able and logical argument with the deepest interest. And I beg you to accept my hearty congratulations.
I am entirely convinced that your noble ideals will be realised, not only for the benefit of China and the welfare of your own people, but for the benefit and prosperity of the whole human race.
The Nations cannot continue to deny in the future as they have in the past, the unlimited natural resources of your rich fertile country, in foods, minerals, coal and iron, etc.; and your plans for development and activity, as well as your methods of communication for expanding and cultivating almost untouched miles of virgin soil, and bringing these products to the doors of the "World Market" by a practical and economic plan, scientifically studied out, places you at once among the very rare few unselfish humanitarian benefactors, and reveals so clearly your profound international sympathies.
The development of China's natural resources will give a new impetus and vitality to industry and commerce in your country and will not only be of incalculable benefit to your own people, but offer undeniable and unlimited advantages to all people in all nations. Therefore Governments and foreign financiers should not hesitate in giving your plans their most careful consideration and support, and come to your assistance in the realisation of your grand humanitarian project.
The construction of a great "Northern Port" on the Gulf of Pechili, and the building of a system of railways from this great Northern Port to the northwestern extremity of China, as well as the construction of canals to connect the inland waterways systems of North and Central China with the great "Northern Port," and the development of coal and iron fields in Shansi which would necessitate the construction of iron and steel works would not only offer employment to millions of your country people, but would open wider, and advantageously, the doors of thousands of well organised industries in many nations.
It is very encouraging to me, dear Dr. Sun Yat Sen, to know that you look upon my plans of an "International World Centre of Communication" with favor, and that you will further the idea among your countrymen by writing about it in your magazine "The Construction."
This city, erected upon neutral grounds would offer at once the practical framework for the essential needs of a League of Nations and could become its dignified "Administrative Centre" crowned by an International Court of Justice.
I have presented the plans and proposals of this World Centre to the Rulers and governments of all nations, and hope to be able to go to Washington in October to exhibit the large original drawings and personally explain the project from a practical and economic point of view before the foreign delegates who may meet there to assist in the formation of a League of Nations, and I have written to President Wilson, who after receiving the volumes containing the proposals and plans, wrote that "he valued them very highly."
I hope that in the very near future this International World Centre of communication may become a reality. It would be the means of clearly defining and bringing into focus the highest natural products as well as the most important industrial achievements of all countries. This accomplishment would be one of the first definite steps toward more friendly social and economic relations, and the practicability of establishing such coöperation cannot be disputed.
This City of Peace should rise and stand as an International Monument, erected by international contribution to commemorate the heroic struggle and noble sacrifice of millions who gave their lives on the battle fields, in the air and on the sea, that justice should triumph and open the ways for humanity to progress in peace, and free from tyranny in the future.
With the assurance, dear Dr. Sun Yat Sen, of my most profound sympathies for your noble project, and with my deep gratitude for your keen interest in my plans,
I beg to remain, with high esteem
Faithfully yours,
(Signed)
Hendrick Christian Andersen.
(Click image for large, detailed version)
[Transcribers' Notes]
Punctuation and spelling were made consistent when a predominant preference was found in this book; otherwise they were not changed. Possibly inconsistent spellings of names and place-names have been retained.
Simple typographical errors were corrected; occasional unbalanced quotation marks retained.
Inconsistent hyphenation and ambiguous hyphens at the ends of lines were retained.
"The Chochiang-Koria Line" is spelled that way throughout the book.
Page [195]: "Great Southern Port" was printed as "Greatern"; changed here.
Page [247]: "mileage" was printed as "milage"; changed here.
Transcriber split the full [Map of China] into quadrants for better readability. If your reading device cannot display it directly, you will find the full-size version at Project Gutenberg:
http://www.gutenberg.org/files/45188/45188-h/images/endmapl.jpg