But the place was still under military rule, which discourages commerce. On my voyage out, three Germans had come on board at Singapore. They told me that, although they had been very happy under British rule, they preferred their own colony, and intended to start a hotel at Kiao Chao. Some time afterwards I met those three patriotic Germans again. They were on their way back to Singapore; because, so they said, they could not make a living at Kiao Chao! They told me that they were obliged to pay a tax of five per cent. upon their investment, with the prospect of paying another five per cent. when, after a period of years, their property should again be surveyed.
At Shanghai, which, being situated at the entrance Of the Yangtse Valley, is the most important Treaty Port in the Far East, I framed an elaborate report upon its trade. The China Association presented to me a memorandum containing the usual protest against the insecurity of British interests in China.
While I was at Shanghai I had three interviews with the Marquess Ito, lately Prime Minister of Japan. The Marquess, I believe, was unofficially employed in endeavouring to extend Japanese interests in China. He expressed the greatest friendliness towards Great Britain. During the political disturbances in Japan, the Marquess Ito had fled to England as a sailor before the mast in a British vessel. He told me that, landing at Gravesend very hungry, he went into a shop and bought a loaf, putting down half a sovereign. The shopman, presumably taking advantage of the fact that he was a Japanese, refused to give him the change. The Marquess told me that he was sadly shocked; for, until that moment, he had believed the English to be the most honest people in the world.
In Shanghai, I learned that one of the leaders of the Reform Party, Huang Chin, a victim of the coup d'état, had been arrested and was about to be sent to Nanking for execution. I urged his Excellency Kwei Chun, Viceroy of Szechuan, to use his influence to save Huang's life, pointing out to him that these political executions were exceedingly distasteful to the British people. I am glad to say that my intervention was effectual, in that Huang Chin, instead of being executed, was banished.
His Excellency Liu-Kwen-Yi having most courteously placed H.I.M.S. Nanshin at my disposal, I took passage in her to Nanking.
I was much interested in the arrangement and armament of the Chinese man-of-war; but as she was warmed by means of charcoal stoves, my investigations were conducted in a condition of partial suffocation from the fumes.
Upon arriving at Nanking in the Nanshin, I received a salute of fifteen guns; and proceeded to the Yamen of his Excellency the Viceroy Liu-Kwen-Yi between the lines of troops and banner-bearers, numbering some thousands, who were ranged along the whole route of four and a half miles in my honour. Liu-Kwen-Yi, who received me with the greatest courtesy and kindness, said that he was anxious to show his friendship for Great Britain in every way. In the course of two long and interesting conversations with the Viceroy, who expressed his fear of the present unstable posture of affairs, I suggested that there were two contingencies to fear: a rebellion against the Government and an insurrection against foreigners; either of which would be fatal to commercial security. His Excellency, however, assured me that there was no danger of disturbances inspired by dislike of the foreigner. Herein he was mistaken; for within two years occurred the Boxer outbreak, which had the approval, secret or overt, of the Empress Dowager. At the Viceroy's request, I drew up a memorandum containing my scheme for the reorganisation of the army on the principle of the Imperial Maritime Customs, which I had proposed at Pekin. A translation of this document was sent by the Viceroy to Pekin.
On my return journey, I inspected the army, the fleet, the arsenal and the Imperial naval college.
I arrived at Hong Kong for the second time on Christmas Day, 1898. The views of the China Association and of the British merchants here were of the same tenor as those, already described, expressed by the British communities at all the trading centres visited by me.
To complete my itinerary in brief, other places visited by me were Wuhu, Kinkiang, Chinkiang, Kiangzin, Hankow, Foochow, Swatow, Amoy, Canton, and Wuchow. At each place I drew up a report describing the local conditions and embodying the representations of the British communities.