CHAPTER XLIII
THE INTROMISSION OF THE ADMIRALS
In August, 1898, I received from the Associated Chambers of Commerce of Great Britain, whose President was Sir Stafford Northcote, an invitation to proceed on their behalf to China, "to obtain accurate information as to how security is to be ensured to commercial men who may be disposed to embark their capital in trade enterprise in China." Sir Stafford Northcote added that he desired to obtain a report on these matters from a "non-official source," and that, further, it should be supplied by an officer of naval or military experience, by reason of the importance of the question of adequate protection for British commercial ventures.
Accompanied by Mr. Robin Grey, who acted as an additional secretary, and by my secretary, Mr. Macdonald, I sailed for China towards the end of August. My commission, to report on the future prospects of British trade and commerce in China and especially to what extent the Chinese Government would guarantee the safe employment of British capital, was sufficiently wide in its scope.
At that time, there was much public discussion concerning the rivalry manifesting itself among the European nations interested in China, particularly with regard to railway concessions and like privileges. The public in general were of opinion that the British Government was very slow to assert British rights. In July, 1898, Sir Claude Macdonald, British Plenipotentiary at the Court of Pekin, was "authorised to inform the Chinese Government that Her Majesty's Government will support them in resisting any Power which commits an act of aggression on China or on account of China having granted permission to make or support any railway or public work to a British subject."
This was something, but it was not much; for China, comparing British assurances with Russian actions, entertained her own opinion concerning their comparative value. Nevertheless, the British policy was quite definitely the policy of the "Open Door"; which Mr. Balfour defined (10th August, 1898) as "the right of importing goods at the same rate that every nation imports goods, the same right of using railways that other nations possess. In other words, equal trade opportunities." The alternative policy of "Spheres of Influence," Mr. Balfour oracularly described as "a wholly different set of questions connected with concessions, and they cannot be treated in the same simple and obvious manner." But in what the treatment should consist, the public were not told.
It was not, perhaps, understood by the public at the time, how delicate was the international situation, nor how serious might be the consequences, not only of hasty action but, of any decisive action; and although it did not necessarily follow that nothing should be done, the difficulties and complications, many of which were known only to the Government, should be taken into consideration.
Russia was establishing herself in Manchuria, and was arming Port Arthur and Talienwan. Germany had declined to pledge herself not to levy preferential duties at Kiao Chao, and claimed exclusive rights over railway construction through the Shantung Province. France was claiming preferential rights with regard to her leasehold in Southern China. France and Russia were interesting themselves in the sanctioned trunk line from Pekin to Hankow and from Hankow to the south.
Nothing was settled with regard to the important question of the rights over the Yangtse basin.
Lord Salisbury had stated that he did not consider it to be the duty of Her Majesty's Government to make railways in China, or to find the money to make them; and both Lord Salisbury and Mr. Curzon (afterwards Viscount Curzon of Kedleston) affirmed that the failure of British syndicates to apply for concessions in China was due to their lack of initiative.
On the other hand, it was argued in the Press that the lack of initiative on the part of British enterprise was due to the lack of support and to the absence of a definite policy on the part of the Government, a criticism which, among others, was formulated by Sir Edward Grey, who was then of course in Opposition.