THE WASHINGTON CONFERENCE

The Washington Conference, and the simultaneous conference, at Washington, between the Chinese and Japanese, have somewhat modified the Far Eastern situation. The general aspects of the new situation will be dealt with in the next chapter; for the present it is the actual decisions arrived at in Washington that concern us, as well as their effect upon the Japanese position in Siberia.

In the first place, the Anglo-Japanese Alliance has apparently been brought to an end, as a result of the conclusion of the Four Power Pact between America, Great Britain, France and Japan. Within this general alliance of the exploiting Powers, there is a subordinate grouping of America and Great Britain against France and Japan, the former standing for international capitalism, the latter for national capitalism. The situation is not yet plain, because England and America disagree as regards Russia, and because America is not yet prepared to take part in the reconstruction of Europe; but in the Far East, at any rate, we seem to have decided to seek the friendship of America rather than of Japan. It may perhaps be hoped that this will make our Chinese policy more liberal than it has been. We have announced the restoration of Wei-hai-wei—a piece of generosity which would have been more impressive but for two facts: first, that Wei-hai-wei is completely useless to us, and secondly, that the lease had only two more years to run. By the terms of the lease, in fact, it should have been restored as soon as Russia lost Port Arthur, however many years it still had to run at that date.

One very important result of the Washington Conference is the agreement not to fortify islands in the Pacific, with certain specified exceptions. This agreement, if it is adhered to, will make war between America and Japan very difficult, unless we were allied with America. Without a naval base somewhere near Japan, America could hardly bring naval force to bear on the Japanese Navy. It had been the intention of the Navy Department to fortify Guam with a view to turning it into a first-class naval base. The fact that America has been willing to forgo this intention must be taken as evidence of a genuine desire to preserve the peace with Japan.

Various small concessions were made to China. There is to be a revision of the Customs Schedule to bring it to an effective five per cent. The foreign Post Offices are to be abolished, though the Japanese have insisted that a certain number of Japanese should be employed in the Chinese Post Office. They had the effrontery to pretend that they desired this for the sake of the efficiency of the postal service, though the Chinese post is excellent and the Japanese is notoriously one of the worst in the world. The chief use to which the Japanese have put their postal service in China has been the importation of morphia, as they have not allowed the Chinese Customs authorities to examine parcels sent through their Post Office. The development of the Japanese importation of morphia into China, as well as the growth of the poppy in Manchuria, where they have control, has been a very sinister feature of their penetration of China.[[84]]

Of course the Open Door, equality of opportunity, the independence and integrity of China, etc. etc., were reaffirmed at Washington; but these are mere empty phrases devoid of meaning.

From the Chinese point of view, the chief achievement at Washington was the Shantung Treaty. Ever since the expulsion by the Germans at the end of 1914, the Japanese had held Kiaochow Bay, which includes the port of Tsingtau; they had stationed troops along the whole extent of the Shantung Railway; and by the treaty following the Twenty-one Demands, they had preferential treatment as regards all industrial undertakings in Shantung. The railway belonged to them by right of conquest, and through it they acquired control of the whole province. When an excuse was needed for increasing the garrison, they supplied arms to brigands, and claimed that their intervention was necessary to suppress the resulting disorder. This state of affairs was legalized by the Treaty of Versailles, to which, however, America and China were not parties. The Washington Conference, therefore, supplied an opportunity of raising the question afresh.

At first, however, it seemed as if the Japanese would have things all their own way. The Chinese wished to raise the question before the Conference, while the Japanese wished to settle it in direct negotiation with China. This point was important, because, ever since the Lansing-Ishii agreement, the Japanese have tried to get the Powers to recognize, in practice if not in theory, an informal Japanese Protectorate over China, as a first step towards which it was necessary to establish the principle that the Japanese should not be interfered with in their diplomatic dealings with China. The Conference agreed to the Japanese proposal that the Shantung question should not come before the Conference, but should be dealt with in direct negotiations between the Japanese and Chinese. The Japanese victory on this point, however, was not complete, because it was arranged that, in the event of a deadlock, Mr. Hughes and Sir Arthur Balfour should mediate. A deadlock, of course, soon occurred, and it then appeared that the British were no longer prepared to back up the Japanese whole-heartedly, as in the old days. The American Administration, for the sake of peace, showed some disposition to urge the Chinese to give way. But American opinion was roused on the Shantung question, and it appeared that, unless a solution more or less satisfactory to China was reached, the Senate would probably refuse to ratify the various treaties which embodied the work of the Conference. Therefore, at the last moment, the Americans strongly urged Japan to give way, and we took the same line, though perhaps less strongly. The result was the conclusion of the Shantung Treaty between China and Japan.

By this Treaty, the Chinese recover everything in Shantung, except the private property of Japanese subjects, and certain restrictions as regards the railway. The railway was the great difficulty in the negotiations, since, so long as the Japanese could control that, they would have the province at their mercy. The Chinese offered to buy back the railway at once, having raised about half the money as a result of a patriotic movement among their merchants. This, however, the Japanese refused to agree to. What was finally done was that the Chinese were compelled to borrow the money from the Japanese Government to be repaid in fifteen years, with an option of repayment in five years. The railway was valued at 53,400,000 gold marks, plus the costs involved in repairs or improvements incurred by Japan, less deterioration; and it was to be handed over to China within nine months of the signature of the treaty. Until the purchase price, borrowed from Japan, is repaid, the Japanese retain a certain degree of control over the railway: a Japanese traffic manager is to be appointed, and two accountants, one Chinese and the other Japanese, under the control of a Chinese President.

It is clear that, on paper, this gives the Chinese everything five years hence. Whether things will work out so depends upon whether, five years hence, any Power is prepared to force Japan to keep her word. As both Mr. Hughes and Sir Arthur Balfour strongly urged the Chinese to agree to this compromise, it must be assumed that America and Great Britain have some responsibility for seeing that it is properly carried out. In that case, we may perhaps expect that in the end China will acquire complete control of the Shantung railway.