The Premier, General Tuan Chi-jui, however, remained determined to carry his point, and within a week a second dispatch was sent to the House of Representatives demanding, in spite of what had happened, that the declaration of war be immediately brought up for debate. Meanwhile publication in a leading Peking newspaper of further details covering Japan's subterranean activities greatly inflamed the public, and made the Liberal political elements more determined than ever to stand firm. It was alleged that Count Terauchi was reviving in a more subtle form Group V of the Twenty-one Demands of 1915, the latest Japanese proposal taking the form of a secret Treaty of twenty articles of which the main stipulations were to be a loan of twenty million yen to China to reorganize the three main Chinese arsenals under Japanese guidance, and a further loan of eighty million yen to be expended on the Japanization of the Chinese army. As a result of this publication, which rightly or wrongly was declared to be without foundation, the editor of The Peking Gazette was seized in the middle of the night and thrown into gaol; but Parliament so far from being intimidated passed the very next day (19th May) a resolution refusing to consider in any form the declaration of war against Germany until the Cabinet had been reorganized—which meant the resignation of General Tuan Chi-jui. A last effort was made by the reactionary element to jockey the President into submission by presenting to the Chief Executive a petition from the Military Governors assembled in Peking demanding the immediate dissolution of Parliament. On this proposal being absolutely rejected by the President as wholly unconstitutional, and the Military Governors soundly rated for their interference, an ominous calm followed.

Parliament, however, remained unmoved and continued its work. Although the draft of the Permanent Constitution had been practically completed, important additions to the text were now proposed, such additions being designed to increase parliamentary control and provide every possible precaution against arbitrary acts in the future. Thus the new provision that a simple vote of want of confidence in the Cabinet must be followed by the President either dismissing the Cabinet or dissolving the House of Representatives—but that the dissolution of the Lower House could not be ordered without the approval of the Senate—was generally recognized as necessary to destroy the last vestiges of the Yuan Shih-kai régime. Furthermore a new article, conferring on the President the right to dismiss the Premier summarily by Presidential Mandate without the counter-signature of the other Cabinet Ministers, completed the disarray of the conservatives who saw in this provision the dashing of their last hopes.[[25]]

By the 21st May, the last remaining Cabinet Minister—the Minister of Education—had resigned and the Premier was left completely isolated. On the 23rd May the President, relying on the general support of the nation, summarily dismissed General Tuan Chi-jui from the Premiership and appointed the veteran diplomat Dr. Wu Ting-fang to act during the interim period in his stead, at the same time placing the metropolitan districts under four trustworthy Generals who were vested with provost-marshals' powers under a system which gave them command of all the so-called "precautionary troops" holding the approaches to the capital. The Military Governors, who a few hours before these events had left Peking precipitately in a body on the proclaimed mission of allying themselves with the redoubtable General Chang Hsun at Hsuchowfu, and threatening the safety of the Republic, were, however, coolly received in the provinces in spite of all their most bitter attempts to stir up trouble. This, however, as will be shown, had no influence on their subsequent conduct. The quiet disappearance of the ex-Premier in the midst of this upheaval caused the report to spread that all the members of the corrupt camarilla which had surrounded him were to be arrested, but the President soon publicly disclaimed any intention of doing so,—which appears to have been a fatal mistake. It is disheartening to have to state that nearly all the Allied Legations in Peking had been in intimate relations with this gang—always excepting the American Legation whose attitude is uniformly correct—the French Minister going so far as to entertain the Military Governors and declare, according to reports in the native press, that Parliament was of no importance at all, the only important thing being for China promptly to declare war. That some sort of public investigation into Peking diplomacy is necessary before there can be any hope of decent relations between China and the Powers seems indisputable.[[26]]

Before the end of May the militarists being now desperate, attempted the old game of inciting the provincial capitals "to declare their independence," although the mass of the nation was plainly against them. Some measure of success attended this move, since the soldiery of the northern provinces obediently followed their leaders and there was a sudden wild demand for a march on Peking. A large amount of rolling-stock on the main railways was seized with this object, the confusion being made worse confounded by the fierce denunciations which now came from the southernmost provinces, coupled with their threats to attack the Northern troops all along the line as soon as they could mobilize.

The month of June opened with the situation more threatening than it had been for years. Emissaries of the recalcitrant Military Governors, together with all sorts of "politicals" and disgruntled generals, gathered in Tientsin—which is 80 miles from Peking—and openly established a Military Headquarters which they declared would be converted into a Provisional Government which would seek the recognition of the Powers. Troops were moved and concentrated against Peking; fresh demands were made that the President should dissolve Parliament; whilst the Metropolitan press was suddenly filled with seditious articles. The President, seeing that the situation was becoming cataclysmic, was induced, through what influences is not known, to issue a mandate summoning General Chang Hsun to Peking to act as a mediator, which was another fatal move. He arrived in Tientsin with many troops on the 7th June where he halted and was speedily brought under subversive influences, sending at once up to Peking a sort of ultimatum which was simply the old demand for the dissolution of Parliament.

Meanwhile on the 5th June, the United States, which had been alarmed by these occurrences, had handed China the following Note hoping thereby to steady the situation:

The Government of the United States learns with the most profound regret of the dissension in China and desires to express the most sincere desire that tranquillity and political co-ordination may be forthwith re-established.

The entry of China into war with Germany—or the continuance of the status quo of her relations with that Government—are matters of secondary consideration.

The principal necessity for China is to resume and continue her political entity, to proceed along the road of national development on which she has made such marked progress.

With the form of Government in China or the personnel which administers that Government, the United States has an interest only in so far as its friendship impels it to be of service to China. But in the maintenance by China of one Central United and alone responsible Government, the United States is deeply interested, and now expresses the very sincere hope that China, in her own interest and in that of the world, will immediately set aside her factional political disputes, and that all parties and persons will work for the re-establishment of a co-ordinate Government and the assumption of that place among the Powers of the World to which China is so justly entitled, but the full attainment of which is impossible in the midst of internal discord.