The most urgent problem in China's relations with foreign powers is Japanese aggression. Originally Japan was less powerful than China, but after 1868 the Japanese rapidly learnt from us whatever we had to teach in the way of skilful homicide, and in 1894 they resolved to test their new armaments upon China, just as Bismarck tested his on Denmark. The Chinese Government preserved its traditional haughtiness, and appears to have been quite unaware of the defeat in store for it. The question at issue was Korea, over which both Powers claimed suzerainty. At that time there would have been no reason for an impartial neutral to take one side rather than the other. The Japanese were quickly and completely victorious, but were obliged to fight Russia before obtaining secure possession of Korea. The war with Russia (1904-5) was fought chiefly in Manchuria, which the Russians had gained as a reward for befriending China. Port Arthur and Southern Manchuria up to Mukden were acquired by the Japanese as a result of the Russo-Japanese war; the rest of Manchuria came under Japanese control as a result of Russia's collapse after the Great War.

The nominal sovereignty in Manchuria is still Chinese; the Chinese have the civil administration, an army, and the appointment of the Viceroy. But the Japanese also have troops in Manchuria; they have the railways, the industrial enterprises, and the complete economic and military control. The Chinese Viceroy could not remain in power a week if he were displeasing to the Japanese, which, however, he takes care not to be. (See Note A.) The same situation was being brought about in Shantung.

Shantung brings us to what Japan did in the Great War. In 1914, China could easily have been induced to join the Allies and to set to work to turn the Germans out of Kiao-Chow, but this did not suit the Japanese, who undertook the work themselves and insisted upon the Chinese remaining neutral (until 1917). Having captured Tsing-tau, they presented to the Chinese the famous Twenty-One Demands, which gave the Chinese Question its modern form. These demands, as originally presented in January 1915, consisted of five groups. The first dealt with Shantung, demanding that China should agree in advance to whatever terms Japan might ultimately make with Germany as regarded this Chinese province, that the Japanese should have the right to construct certain specified railways, and that certain ports (unspecified) should be opened to trade; also that no privileges in Shantung should be granted to any Power other than Japan. The second group concerns South Manchuria and Eastern Inner Mongolia, and demands what is in effect a protectorate, with control of railways, complete economic freedom for Japanese enterprise, and exclusion of all other foreign industrial enterprise. The third group gives Japan a monopoly of the mines and iron and steel works in a certain region of the Yangtze,[[63]] where we claim a sphere of influence. The fourth group consists of a single demand, that China shall not cede any harbour, bay or island to any Power except Japan. The fifth group, which was the most serious, demanded that Japanese political, financial, and military advisers should be employed by the Chinese Government; that the police in important places should be administered by Chinese and Japanese jointly, and should be largely Japanese in personnel; that China should purchase from Japan at least 50 per cent. of her munitions, or obtain them from a Sino-Japanese arsenal to be established in China, controlled by Japanese experts and employing Japanese material; that Japan should have the right to construct certain railways in and near the Yangtze valley; that Japan should have industrial priority in Fukien (opposite Formosa); and finally that the Japanese should have the right of missionary propaganda in China, to spread the knowledge of their admirable ethics.

These demands involved, as is obvious, a complete loss of Chinese independence, the closing of important areas to the commerce and industry of Europe and America, and a special attack upon the British position in the Yangtze. We, however, were so busy with the war that we had no time to think of keeping ourselves alive. Although the demands constituted a grave menace to our trade, although the Far East was in an uproar about them, although America took drastic diplomatic action against them, Mr. Lloyd George never heard of them until they were explained to him by the Chinese Delegation at Versailles.[[64]] He had no time to find out what Japan wanted, but had time to conclude a secret agreement with Japan in February 1917, promising that whatever Japan wanted in Shantung we would support at the Peace Conference.[[65]] By the terms of the Anglo-Japanese Alliance, Japan was bound to communicate the Twenty-one Demands to the British Government. In fact, Japan communicated the first four groups, but not the fifth and worst, thus definitely breaking the treaty;[[66]] but this also, one must suppose, Mr. Lloyd George only discovered by chance when he got to Versailles.

China negotiated with Japan about the Twenty-one Demands, and secured certain modifications, but was finally compelled to yield by an ultimatum. There was a modification as regards the Hanyehping mines on the Yangtze, presumably to please us; and the specially obnoxious fifth group was altered into an exchange of studiously vague Notes.[[67]] In this form, the demands were accepted by China on May 9, 1915. The United States immediately notified Japan that they could not recognize the agreement. At that time America was still neutral, and was therefore still able to do something to further the objects for which we were supposed to be fighting, such as protection of the weaker nations. In 1917, however, after America had entered the war for self-determination, it became necessary to placate Japan, and in November of that year the Ishii-Lansing Agreement was concluded, by which "the Government of the United States recognizes that Japan has special interests in China, particularly for the parts to which her possessions are contiguous." The rest of the agreement (which is long) consists of empty verbiage.[[68]]

I come now to the events leading up to China's entry into the war.[[69]] In this matter, the lead was taken by America so far as severing diplomatic relations was concerned, but passed to Japan as regards the declaration of war. It will be remembered that, when America broke off diplomatic relations with Germany, President Wilson called upon all neutrals to do likewise. Dr. Paul S. Reinsch, United States Minister in Peking, proceeded to act with vigour in accordance with this policy. He induced China first, on February 9, 1917, to send a Note of expostulation to Germany on the subject of the submarine campaign; then, on March 14th, to break off diplomatic relations. The further step of declaring war was not taken until August 14th. The intrigues connected with these events deserve some study.

In view of the fact that the Japanese were among the Allies, the Chinese had not any strong tendency to take sides against Germany. The English, French and Russians had always desired the participation of China (for reasons which I shall explain presently), and there appears to have been some suggestion, in the early days of the war, that China should participate in return for our recognizing Yuan Shi-k'ai as Emperor. These suggestions, however, fell through owing to the opposition of Japan, based partly on hostility to Yuan Shi-k'ai, partly on the fear that China would be protected by the Allies if she became a belligerent. When, in November 1915, the British, French and Russian Ambassadors in Tokyo requested Japan to join in urging China to join the Allies, Viscount Ishii said that "Japan considered developments in China as of paramount interest to her, and she must keep a firm hand there. Japan could not regard with equanimity the organization of an efficient Chinese army such as would be required for her active participation in the war, nor could Japan fail to regard with uneasiness a liberation of the economic activities of 400,000,000 people."[[70]] Accordingly the proposal lapsed. It must be understood that throughout the war the Japanese were in a position to blackmail the Allies, because their sympathies were with Germany, they believed Germany would win, and they filled their newspapers with scurrilous attacks on the British, accusing them of cowardice and military incompetence.[[71]]

But when America severed diplomatic relations with Germany, the situation for China was changed. America was not bound to subservience to Japan, as we were; America was not one of the Allies; and America had always been China's best friend. Accordingly, the Chinese were willing to take the advice of America, and proceeded to sever diplomatic relations with Germany in March 1917. Dr. Reinsch was careful to make no promises to the Chinese, but of course he held out hopes. The American Government, at that time, could honestly hold out hopes, because it was ignorant of the secret treaties and agreements by which the Allies were bound. The Allies, however, can offer no such excuse for having urged China to take the further step of declaring war. Russia, France, and Great Britain had all sold China's rights to secure the continued support of Japan.

In May 1916, the Japanese represented to the Russians that Germany was inviting Japan to make a separate peace. In July 1916, Russia and Japan concluded a secret treaty, subsequently published by the Bolsheviks. This treaty constituted a separate alliance, binding each to come to the assistance of the other in any war, and recognizing that "the vital interests of one and the other of them require the safeguarding of China from the political domination of any third Power whatsoever, having hostile designs against Russia or Japan." The last article provided that "the present agreement must remain profoundly secret except to both of the High Contracting Parties."[[72]] That is to say, the treaty was not communicated to the other Allies, or even to Great Britain, in spite of Article 3 of the Anglo-Japanese Alliance, which provides that "The High Contracting Parties agree that neither of them will, without consulting the other, enter into a separate agreement with another Power to the prejudice of the objects described in the preamble of this Agreement," one of which objects was the preservation of equal opportunity for all Powers in China and of the independence and integrity of the Chinese Empire.

On February 16, 1917, at the very time when America was urging China to sever diplomatic relations with Germany, we concluded an agreement with Japan containing the following words:—