In Asia, as in Europe, the dominant factor in the policy of the Government has been the desire to reach the sea-coast; and in both continents the ports first acquired were in northern latitudes where the coasts are free from ice during only a part of the year. In this respect, Nikolaefsk and Vladivostok in the Far East correspond to Archangel and St. Petersburg in Europe. Such ports could not fulfil all the requirements, and consequently the expansive tendency turned southwards—in Europe towards the Black Sea and the Mediterranean, and in Asia towards the Persian Gulf, the Indian Ocean and the Gulf of Pechili.

In Persia the Russian Government pursues the policy of pacific infiltration, and already the northern half of the Shah's dominions is pretty well permeated with Russian influence, commercial and political. In the southern half the infiltration is to some extent checked by physical obstacles and British influence, but it is steadily advancing, and the idea of obtaining a port on the Persian Gulf is coming within the range of practical politics.

In Afghanistan also the pressure is felt, and here too the expansive tendency meets with opposition from England. More than once the two great Powers have come dangerously near to war—notably in 1885, at the moment of the Penjdeh incident, when the British Parliament voted 11,000,000 pounds for military preparations. Fortunately on that occasion the problem was solved by diplomacy. The northern frontier of Afghanistan was demarcated by a joint commission, and an agreement was come to by which this line should form the boundary of the British and Russian spheres of influence. For some years Russia scrupulously respected this agreement, but during our South African difficulties she showed symptoms of departing from it, and at one moment orders were issued from St. Petersburg for a military demonstration on the Afghan frontier. Strange to say, the military authorities, who are usually very bellicose, deprecated such a movement, on the ground that a military demonstration in a country like Afghanistan might easily develop into a serious campaign, and that a serious campaign ought not to be undertaken in that region until after the completion of the strategical railways from Orenburg to Tashkent.

As this important line has now been completed, and other strategic lines are in contemplation, the question arises whether Russia meditates an attack on India. It is a question which is not easily answered. No doubt there are many Russians who think it would be a grand thing to annex our Indian Empire, with its teeming millions and its imaginary fabulous treasures, and not a few young officers imagine that it would be an easy task. Further, it is certain that the problem of an invasion has been studied by the Headquarters Staff in St. Petersburg, just as the problem of an invasion of England has been studied by the Headquarters Staff in Berlin. It may be pretty safely asserted, however, that the idea of a conquest of India has never been seriously entertained in the Russian official world. What has been seriously entertained, not only in the official world, but by the Government itself, is the idea—strongly recommended by the late General Skobelef—that Russia should, as quickly as possible, get within striking distance of our Indian possessions, so that she may always be able to bring strong diplomatic pressure on the British Government, and in the event of a conflict immobilise a large part of the British army.

The expansive tendency in the direction of the Persian Gulf and the Indian Ocean was considerably weakened by the completion of the Trans-Siberian Railway and the rapid development of an aggressive policy in the Far east. Never, perhaps, has the construction of a single line produced such deep and lasting changes in the sphere of Weltpolitik.

As soon as the Trans-Siberian was being rapidly constructed a magnificent prospect opened up to the gaze of imaginative politicians in St. Petersburg. The foreground was Manchuria a region of 364,000 square miles, endowed by nature with enormous mineral resources, and presenting a splendid field for agricultural colonisation and commercial enterprise. Beyond was seen Korea, geographically an appendix of Manchuria, possessing splendid harbours, and occupied by an effete, unwarlike population, wholly incapable of resisting a European Power. That was quite enough to inflame the imagination of patriotic Russians; but there was something more, dimly perceived in the background. Once in possession of Manchuria, supplied with a network of railways, Russia would dominate Peking and the whole of Northern China, and she would thus be able to play a decisive part in the approaching struggle of the European Powers for the Far-Eastern Sick Man's inheritance.

Of course there were obstacles in the way of realising this grandiose scheme, and there were some cool heads in St. Petersburg who were not slow to point them out. In the first place the undertaking must be extremely costly, and the economic condition of Russia proper was not such as to justify the expenditure of an enormous capital which must be for many years unproductive. Any superfluous capital which the country might possess was much more urgently required for purposes of internal development, and the impoverished agricultural population ought not to be drained of their last meagre reserves for the sake of gigantic political schemes which did not directly contribute to their material welfare. To this the enthusiastic advocates of the forward policy replied that the national finances had never been in such a prosperous condition, that the revenue was increasing by leaps and bounds, that the money invested in the proposed enterprise would soon be repaid with interest; and that if Russia did not at once seize the opportunity she would find herself forestalled by energetic rivals. There was still, however, one formidable objection. Such an enormous increase of Russia's power in the Far East would inevitably arouse the jealousy and opposition of other Powers, especially of Japan, for whom the future of Korea and Manchuria was a question of life and death. Here again these advocates of the forward policy had their answer ready. They declared that the danger was more apparent than real. In Far-Eastern diplomacy the European Powers could not compete with Russia, and they might easily be bought off by giving them a very modest share of the spoil; as for Japan, she was not formidable, for she was just emerging from Oriental barbarism, and all her boasted progress was nothing more than a thin veneer of European civilisation. As the Moscow patriots on the eve of the Crimean War said contemptuously of the Allies, "We have only to throw our hats at them," so now the believers in Russia's historic mission in the Far East spoke of their future opponents as "monkeys" and "parrots."

The war between China and Japan in 1894-5, terminating in the Treaty of Shimonoseki, which ceded to Japan the Liaotung Peninsula, showed Russia that if she was not to be forestalled she must be up and doing. She accordingly formed a coalition with France and Germany, and compelled Japan to withdraw from the mainland, on the pretext that the integrity of China must be maintained. In this way China recovered, for a moment, a bit of lost territory, and further benefits were conferred on her by a guarantee for a foreign loan, and by the creation of the Russo-Chinese Bank, which would assist her in her financial affairs. For these and other favours she was expected to be grateful, and it was suggested to her that her gratitude might take the form of facilitating the construction of the Trans-Siberian Railway. If constructed wholly on Russian territory the line would have to make an enormous bend to the northward, whereas if it went straight from Lake Baikal to Vladivostok it would be very much shorter, and would confer a very great benefit on the north-eastern provinces of the Celestial Empire. This benefit, moreover, might be greatly increased by making a branch line to Talienwan and Port Arthur, which would some day be united with Peking. Gradually Li-Hung-Chang and other influential Chinese officials were induced to sympathise with the scheme, and a concession was granted for the direct line to Vladivostok through Chinese territory.

The retrocession of the Liaotung Peninsula had not been effected by Russia alone. Germany and France had co-operated, and they also expected from China a mark of gratitude in some tangible form. On this point the statesmen of Berlin held very strong views, and they thought it advisable to obtain a material guarantee for the fulfilment of their expectations by seizing Kiaochau, on the ground that German missionaries had been murdered by Chinese fanatics.

For Russia this was a most unwelcome incident. She had earmarked Kiaochau for her own purposes, and had already made an agreement with the authorities in Peking that the harbour might be used freely by her fleet. And this was not the worst. The incident might inaugurate an era of partition for which she was not yet prepared, and another port which she had earmarked for her own use might be seized by a rival. Already English ships of war were reported to be prowling about in the vicinity of the Liaotung Peninsula. She hastened to demand, therefore, as a set-off for the loss of Kiaochau, a lease of Port Arthur and Talienwan, and a railway concession to unite these ports with the Trans-Siberian Railway. The Chinese Government was too weak to think of refusing the demands, and the process of gradually absorbing Manchuria began, in accordance with a plan already roughly sketched out in St. Petersburg.