The surprising developments of the Far Eastern Question were soon to bring the new armaments to a terrible test. Japan and the whole world believed that the Liaotung Peninsula was made over to China in perpetuity. It soon appeared that the Czar and his Ministers had other views, and that, having used France and Germany for the purpose of warning off Japan, they were preparing schemes for the subjection of Manchuria to Russian influence. Or rather, it is probable that Li Hung Chang had already arranged the following terms with Russia as the price of her intervention on behalf of China. The needs of the Court of Pekin and the itching palms of its officials proved to be singularly helpful in the carrying out of the bargain. China being unequal to the task of paying the Japanese war indemnity, Russia undertook to raise a four per cent loan of 400,000,000 francs--of course mainly at Paris--in order to cover the half of that debt. In return for this favour, the Muscovites required the establishment of a Russo-Chinese Bank having widespread powers, comprising the receipt of taxes, the management of local finances, and the construction of such railway and telegraph lines as might be conceded by the Chinese authorities.

This in itself was excellent "brokerage" on the French money, of which China was assumed to stand in need. At one stroke Russia ended the commercial supremacy of England in China, the result of a generation of commercial enterprise conducted on the ordinary lines, and substituted her own control, with powers almost equal to those of a Viceroy. They enabled her to displace Englishmen from various posts in Northern China and to clog the efforts of their merchants at every turn. The British Government, we may add, showed a singular equanimity in face of this procedure.

But this was not all. At the close of March 1896, it appeared that the gratitude felt by the Chinese Andromeda to the Russian Perseus had ripened into a definite union. The two Powers framed a secret treaty of alliance which accorded to the northern State the right to make use of any harbour in China, and to levy Chinese troops in case of a conflict with an Asiatic State. In particular, the Court of Pekin granted to its ally the free use of Port Arthur in time of peace, or, if the other Powers should object, of Kiao-chau. Manchuria was thrown open to Russian officers for purposes of survey, etc., and it was agreed that on the completion of the trans-Siberian railway, a line should be constructed southwards to Talienwan or some other place, under the joint control of the two Powers[491].

The Treaty marks the end of the first stage in the Russification of Manchuria. Another stage was soon covered, and, as it seems, by the adroitness of Count Cassini, Russian Minister at Pekin. The details, and even the existence, of the Cassini Convention of September 30, 1896, have been disputed; but there are good grounds for accepting the following account as correct. Russia received permission to construct her line to Vladivostok across Manchuria, thereby saving the northern detour down the difficult valley of the Amur; also to build her own line to Mukden, if China found herself unable to do so; and the line southwards to Talienwan and Port Arthur was to be made on Russian plans. Further, all these new lines built by Russia might be guarded by her troops, presumably to protect them from natives who objected to the inventions of the "foreign devils." As regards naval affairs, the Czar's Government gained the right to "lease" from China the harbour of Kiao-chau for fifteen years; and, in case of war, to make use of Port Arthur. The last clauses granted to Russian subjects the right to acquire mining rights in Manchuria, and to the Czar's officers to drill the levies of that province in the European style, should China desire to reorganise them.[492]

But the protector had not reaped the full reward of his timely intervention in the spring of 1895. He had not yet gained complete control of an ice-free harbour. In fact, the prize of Kiao-chau, nearly within reach, now seemed to be snatched from his grasp by Kaiser Wilhelm. The details are well known. Two German subjects who were Roman Catholic missionaries in the Shan-tung province were barbarously murdered by Chinese ruffians on November 1, 1897. The outrage was of a flagrant kind, but in ordinary times would have been condoned by the punishment of the offenders and a fine payable by the district. But the occasion was far from ordinary. A German squadron therefore steamed into Kiao-chau and occupied that important harbour.

There is reason to think that Germany had long been desirous of gaining a foothold in that rich province. The present writer has been assured by a geological expert, Professor Skertchley, who made the first map of the district for the Chinese authorities, that that map was urgently demanded by the German envoy at Pekin about this time. In any case, the mineral wealth of the district undoubtedly influenced the course of events. In accordance with a revised version of the old Christian saying: "The blood of the martyrs is the seed of--the Empire," the Emperor William despatched his brother Prince Henry--the "mailed fist" of Germany--with a squadron to strengthen the Imperial grip on Kiao-chau. The Prince did so without opposition either from China or Russia. Finally, on March 5, 1898, the Court of Pekin confirmed to Germany the lease of that port and of the neighbouring parts of the province of Shan-tung.

The whole affair caused a great stir, because it seemed to prelude a partition of China, and that, too, in spite of the well-meaning declarations of the Salisbury Cabinet in favour, first, of the integrity of that Empire, and, when that was untenable, of the policy of the "open door" for traders of all nations. Most significant of all was the conduct of Russia. As far as is known, she made no protest against the action of Germany in a district to which she herself had laid claim. It is reasonable, on more grounds than one, to suppose that the two Powers had come to some understanding, Russia conceding Kiao-chau to the Kaiser, provided that she herself gained Port Arthur and its peninsula. Obviously she could not have faced the ill-will of Japan, Great Britain, Germany, and the United States--all more or less concerned at her rapid strides southward; and it is at least highly probable that she bought off Germany by waiving her own claims to Kiao-chau, provided that she gained an ideal terminus for her Siberian line, and a great naval and military stronghold. It is also worth noting that the first German troops were landed at Kiao-chau on November 17, 1897, while three Russian warships steamed into Port Arthur on December 18; and that the German "lease" was signed at Pekin on March 5, 1898; while that accorded to Russia bears date March 27[493].

If we accept the naive suggestion of the Russian author, "Vladimir," the occupation of Kiao-chau by Germany "forced" Russia "to claim some equivalent compensation." Or possibly the cession of Port Arthur was another of the items in Li Hung Chang's bargain with Russia. In any case, the Russian warships entered Port Arthur, at first as if for a temporary stay; when two British warships repaired thither the Czar's Government requested them to leave--a request with which the Salisbury Cabinet complied in an inexplicably craven manner (January 1898). Rather more pressure was needed on the somnolent mandarins of Pekin; but, under the threat of war with Russia if the lease of the Liao-tung Peninsula were not granted by March 27, it was signed on that day. She thereby gained control of that peninsula for twenty-five years, a period which might be extended "by mutual agreement." The control of all the land forces was vested in a Russian official; and China undertook not to quarter troops to the north without the consent of the Czar. Port Arthur was reserved to the use of Russian and Chinese ships of war; and Russia gained the right to erect fortifications.

The British Government, which had hitherto sought to uphold the integrity of China, thereupon sought to "save its face" by leasing Wei-hai-wei (July 1). An excuse for the weakness of the Cabinet in Chinese affairs has been put forward, namely, that the issue of the Sudan campaign was still in doubt, and that the efforts of French and Russians to reach the Upper Nile from the French Congo and Southern Abyssinia compelled Ministers to concentrate their attention on that great enterprise. But this excuse will not bear examination. Strength at any one point of an Empire is not increased by discreditable surrenders at other points. No great statesman would have proceeded on such an assumption.

Obviously the balance of gain in these shabby transactions in the north of China was enormously in favour of Russia. She now pushed on her railway southwards with all possible energy. It soon appeared that Port Arthur could not remain an open port, and it was closed to merchant ships. Then Talienwan was named in place of it, but under restrictions which made the place of little value to foreign merchants. Thereafter the new port of Dalny was set apart for purposes of commerce, but the efficacy of the arrangements there has never been tested. In the intentions of the Czar, Port Arthur was to become the Gibraltar of the Far East, while Dalny, as the commercial terminus of the trans-Siberian line, figured as the Cadiz of the new age of exploration and commerce opening out to the gaze of Russia.