In order to obtain a clear understanding of this situation, it is necessary to return to the outbreak of hostilities and thence trace the evolution of Chinese diplomacy up to their close. At the unexpected dispatch of large forces by Japan to Korea, in June, 1894, the Chinese Government appealed to some foreign Ministers at Peking to bring pressure to bear upon Japan to withdraw her troops from the Peninsula. The Russian Minister is said to have observed that Russia would not be prepared to organize an armed coercion until Japan endeavored to exercise actual control over the Korean Kingdom, but might undertake to tender friendly advice to Japan to withdraw. England was reluctant, but as an appeal was again made to the Powers, she took the lead in persuading others to join in a concert to stay Japan’s hand in Korea. The plan was, however, frustrated by the emphatic refusal of Germany to consider it. An ineffectual counsel was then made to Japan by a few of the Powers individually, not to embark upon a war against China.[[122]] A war, nevertheless, ensued, with a rare success on the part of Japan. During the course of hostilities, China seems to have more than once[[123]] avowed her impotence and requested the Powers to intervene, until her repeated reverses on land and the well-nigh complete annihilation of her northern squadron brought her to such straits that the friendly Powers could no longer remain inactive. Japan also intimated her willingness to negotiate for peace. After the envoys whom China had sent with insufficient powers had been twice refused by Japan, Li Hung-chang, later to be joined by his son-in-law, Li Ching-fang, arrived with plenary powers at Shimonoseki, on March 19, 1895, where he was received by the Japanese Plenipotentiaries, Count Itō, Premier, and Viscount Mutsu, Foreign Minister. It appears, however, that China had already signified to certain Powers her suspicion that Japan desired the cession of a territory on the Chinese mainland. Before, therefore, Li Hung-chang left the Chinese shores, the German Minister at Tokio was instructed by his government to warn the Japanese Foreign Office that certain Powers had been contemplating assent to China’s appeal to interfere, and that the demand for a cession of territory on the continent would be particularly calculated to provoke such an intervention.[[124]]

It was under these circumstances that negotiations were opened between the Chinese and Japanese Plenipotentiaries on March 20. It is unnecessary here to recount the story of an abortive attempt made on Li’s life by a fanatic, and of the consequent armistice for twenty days. At Li’s recovery, the Japanese terms for peace were proposed on April 1, which with amendments became the basis of the final Treaty[[125]] signed at Shimonoseki on April 17. It provided, among other things, for the absolute independence of Korea, the cession to Japan of the Liao-tung Peninsula, Formosa, and the Pescadores, and an indemnity of two hundred million taels. Of the ceded territories, the Liao-tung being situated, as it were, in a position to hold a key at once to Peking, Manchuria, and Korea, its cession to Japan was probably calculated, from the latter’s point of view, first, to render any renewed attempt of China to dominate Korea impossible, and, secondly, to establish an effective barrier against the southern expansion of Russia.[[126]]

Naturally, the progress of the peace negotiations had been watched with keen interest by the European Powers. Particularly alert was Russia, whose press deprecated so early as March 31 the alleged intention of Japan to secure territory on the mainland, and which, as soon as Li Hung-chang communicated to her early in April the terms proposed by Japan and appealed to her to interfere, discerned in those terms a great turning-point of her own career in the East. She must at once have realized the grave danger to the entire future of her Eastern policy from Japan’s occupation of the Liao-tung Peninsula, as well as the immense advantages which her own possession of the same territory would confer upon herself. Nor did the Korean independence, which the new treaty secured, fail to be interpreted by the Russian press as an exclusive protectorate to be exercised by Japan over the Kingdom. “Russia,” wrote the Novoe Vremya about April 20, “cannot permit the protectorate over Korea which Japan has secured for herself by the conditions of the treaty. If the single port of Port Arthur remain in possession of Japan, Russia will severely suffer in the material interest and in the prestige of a Great Power.”[[127]] It was just the time to intervene. China had shown herself impotent, and had appealed for intervention, and Japan was an exhausted victor. By one clever stroke Russia might coerce the latter and ingratiate herself with the former. She would, however, perhaps have thought twice before she acted, had it not been for the active assistance rendered to her by France and Germany. At a council, it is said, Russian naval and military authorities concluded that Russia alone could not successfully combat Japan, which, however, might be coerced if Russia coöperated with France. An active communication of views now ensued between the Foreign Offices of St. Petersburg, Berlin, Paris, and London. The diplomatic correspondence of the day is still withheld from the public view, but it is well-known that France readily acceded to the Russian desire for a joint intervention, and Germany suddenly changed her former attitude toward Japan and allied herself with the two intervening Powers; while Great Britain, which had more than once acted in favor of China, altered her course to the opposite direction by declining to admit that Japan’s terms of peace were prejudicial to her own interests. The reasons avowed by Germany and France for their assistance to Russia would seem to be rather unconvincing, unless one takes for granted the existence of certain unexpressed motives for the act. Germany claimed to have found in the terms of peace a future menace to the political and economical interests of Europe, for those terms “would constitute a political preponderance of Japan over China,” to use the language of “an evidently inspired article” of the Cologne Gazette, “and would exercise a determining influence on the development of China’s economic condition, and of the sway of Japan in that country. From this it is concluded that Japan is endeavoring to post herself as a sentry, as it were, before all the chief important routes of China. As Japan commands, by Port Arthur and Wei-hai-Wei, the approach to the Yellow Sea, and, by Formosa and the Pescadores, the chief commercial route to China, it is taken to be desirous of encircling her with a firm girdle, in order, if necessary, to seclude her completely from the world. The European Powers, therefore, wish to ward off in time any steps prejudicial to their interests.”[[128]] Nor did the reasons brought forward by France seem to be more germane to her own interests than those of Germany were to hers. The Débats wrote, on April 31, that all the clauses on the occupation of continental territory were impossible for Europe to recognize. Moreover, Port Arthur, with a strip of territory round it in the hands of the Japanese, would be a menace for the independence of Korea, as much as for the security of Peking. The Temps also said that Japan’s predominance over China, which would be the ultimate result of the arrangement, was “a constant menace for the interests of Europe. It was a serious blow dealt at the rights of the immediate adjacent Powers.... A European concert was now a duty toward civilization.” Perhaps it is safe to say that, so far as France was concerned, her desire to oblige her political ally was a more real ground for her coöperation with the latter than any other presented in her press. As for Germany, her Foreign Minister then remarked, it is said, that Japan had never requited the favors Germany had done her during the war, but had, on the contrary, deliberately concluded with China a treaty containing provisions not only excessively favorable to Japan, but also prejudicial to the political and economic interests of Europe. This remark, again, hardly explains the suddenly changed attitude of Germany. Perhaps it is well to surmise that there existed deeper and more complex diplomatic reasons, upon which it would be idle here to speculate. The declination of Great Britain to join in the concert may more easily be accounted for. China, which she had at first favored, had not only been inclining toward Russia, but had shown herself by her incompetency less worthy of trust than the ambitious Japan. The latter had also secured in the treaty certain commercial and industrial privileges in South China which would be even more advantageous to Great Britain than to Japan, while, on the other hand, the former had little reason to suppose that Japan’s retention of the Liao-tung was designed to imperil China and Korea. On the contrary, the presence of Japan at the strategic position on the mainland might prove an effective check upon Russia, whose cause Great Britain was the least inclined to advocate. She therefore stood aloof from the joint intervention, and her conduct provoked a bitter resentment in the Russian and French press.[[129]]

The plan of intervention seems to have matured between Russia, France, and Germany by April 20, and, on April 23, their representatives at Tokio separately presented brief notes at the Foreign Office. These notes, accompanied as they were by the verbal profession of each of the Governments, particularly the German, of its friendly motive in the act, intimated that Japan’s retention of the territory was considered by them as not only imperiling the Chinese Capital, but also making the Korean independence illusory, and, consequently, prejudicial to the permanent peace of the Far East.[[130]] The treaty of Shimonoseki had been signed on April 17, and the exchange of its ratifications fixed for May 8. The Japanese Government had to answer the three Powers within the fifteen days between April 23 and May 8, for, whatever its decision regarding the Liao-tung, it would be unwise to postpone the ratification of the treaty with China.[[131]] In the mean time, the Eastern fleets of the three Powers were augmented and concentrated, and made ready, if need be, for an immediate and concerted action, Russia going even so far as to prepare the army contingents in the Amur region for quick mobilization. Unknown as it was how thoroughly the Powers were determined, in case Japan should refuse to consider their counsel, to appeal to force of arms, none the less real was their idea of coercion, as well as the exhaustion of Japan’s resources. On the other hand, the common interests of Japan, Great Britain, and the United States had not developed to such an extent as to justify their united resistance against the intervening Powers. Japan seems to have complied with the Powers’ wishes so far as to agree to retrocede the Liao-tung save the small peninsula of Kin-chow containing Port Arthur, but the Powers declined for evident reasons to accede to the proposed compromise. The British Foreign Minister also urged Japan to make to the susceptibilities of Europe all concessions compatible with her dignity and her permanent interests.[[132]] The Japanese Government, after holding repeated conference before the Throne and with military councilors,[[133]] definitely resolved, on May 4, to relinquish, for an additional monetary consideration from China,[[134]] all of the Liao-tung. Evidently time was too limited and the occasion too inopportune for Japan successfully to induce China to pledge not to alienate in the future any part of the retroceded territory to another Power. On May 10, the entire nation of Japan beheld with deep emotions the simultaneous publication of the treaty of Shimonoseki, which had been ratified in its original form, and of a special Imperial decree countersigned by all the Ministers of the Cabinet, announcing that a desire to insure a permanent repose of the Orient had compelled Japan to go to war, and that the same desire had now prompted the three Powers to tender to Japan their present friendly counsel, which the Emperor, for the sake of peace, had accepted.[[135]]

The historical significance of this memorable incident deserves special emphasis. It is not too much to say that with it Eastern Asiatic history radically changed its character, for it marks the beginning of a new era, in which the struggle is waged no longer among the Oriental nations themselves, but between sets of interests and principles which characterize human progress at its present stage, and which are represented by the greatest Powers of the world. China’s position as a dominant exclusive force was no sooner overthrown in Korea than it was replaced by that of another power of a like policy and with aggressive tendencies. Moreover, the area opened to the advance of Russia covered not only Korea, but also Northern China and beyond, and the new aggressor was the very power which had thirty years before created a restless feeling among the Japanese, by extending toward them through Primorsk and Sakhalien its already enormous contiguous dominion. The influence of Russia was now brought face to face with that of Japan, each with a promise to extend against, and perhaps to clash with, the other. With the movement of Russia there traveled from Europe to East Asia her sympathetic relations with France, while against this practical alliance stood the increasing common interests and sympathies of Japan, Great Britain, and the United States; Germany remaining as a free lance between the two groups of Powers. This remarkable accession, in both area and agents, of the new activity in the East was heralded in, to all appearance, not gradually, but with a sudden sweep. And gravely ominous was its opening scene, representing at once a pretended good-will toward a feeble empire and an armed coercion of a proud nation whom coercion would only stimulate to greater ambition.

It now remains for us to interpret the effects wrought upon Japan by the intervention of the three Powers, for the sentiment of the nation seems to be so universally and persistently misunderstood as to have caused even some of the natives to misconstrue their own feelings. It is generally supposed that the conduct of the Powers in depriving Japan of her prize of victory excited in her breast a deep feeling of revenge, but this view seems to evince too slight an understanding of the characteristics of the nation. Also, the prevailing sense of pity manifested by friendly foreigners toward Japan for her alleged misfortune appears entirely misplaced, for, on the contrary, she has derived an inestimable benefit from the experience. Let us explain. The most obvious lesson drawn by the best minds of Japan, and unconsciously but deeply shared by the entire nation, was neither that the Powers were acting upon a principle altogether different from their professed motive, for that was too plain to every one; nor that she must some day humiliate the very Powers which had brought coercion upon her, because it was well known that their self-interest had demanded it, as hers would, were she in their place. Japan suddenly awoke to an absorbing desire which left little room for the question of national revenge. It became to her as clear as daylight that the new position she had acquired in the Orient by her victory over China could be maintained, and even her independence must be guarded, only by an armament powerful enough to give her a voice among the first Powers of the world. If she would not retire into herself, and finally cease to exist, she must compete with the greatest nations, not only in the arts of peace,[[136]] but also in those of war. Moreover, a far vaster conflict than she had ever known in her history, excepting the Mongol invasion of the thirteenth century, was seen to be awaiting her. It is perhaps characteristic of modern Japan that she scarcely has time to breathe. The only course to save her seemed to be, now as at any other recent crisis of her life, to go forward and become equal to the new, expanding situation. As soon as her supremacy in the East was assured, Japan thus found herself confronted with a task hitherto almost unpremeditated, and henceforth began an enormous extension of her military forces,[[137]] as well as a redoubled activity in all other lines of national progress.[[138]]

What is less obvious, but still more important, is—it is questionable if there is in the entire range of Japan’s national life another point less understood abroad but more essential for an insight into the present and future of the Extreme Orient than this—the increased enthusiasm of Japan in her ardent effort to strengthen her position in the world by basing her international conduct upon the fairest and best-tried principles of human progress. The effort is not free from occasional errors, but the large issue grows ever clearer in Japan’s mind. A study of her past would seem to convince one with overwhelming evidence that her historic training has produced in Japan moral and material characteristics eminently fit for the pursuit of such a policy. However that may be, the subsequent evolution of her interests at home and abroad seems, by a fortunate combination of circumstances, to have irrevocably committed her to this course; for not only does a common policy along these lines draw her and the Anglo-Saxon nations closer together, but it is therein also that the vital promise of her future seems to lie.[[139]] And it may be added, the consciousness of this powerful unity of moral and material life seems to have infused a thrilling new force into that historic love of country of the Japanese nation.[[139]] It is to the intervention of 1895 and the situation that ensued that Japan owes the hastening of all these results.

CHAPTER II
THE “CASSINI CONVENTION” AND THE RAILWAY AGREEMENT

Regarded, however, from a broader point of view, no one could predict a happy consequence of so ominous a beginning, as has been described, of the new Eastern situation. By her successful intervention, Russia had conferred upon China a signal favor, for which a reward was expected; but the reward, again, assumed such a form that it at the same time served as a new favor looking toward a fresh reward, so that the final resultant of the repeated process proved altogether out of proportion to the initial deed of patronage. The first step of this process was a 4 per cent. loan[[144]] to China of 400,000,000 francs at 94⅛, and payable in thirty-six years, beginning with 1896. Not only were these liberal terms attended by no security, but also the interest was guaranteed by a special edict of the Czar.[[145]] The loan was issued principally from Paris in July, 1895,[[146]] and the income was intended to cover one half[[147]] of China’s indemnity to Japan.[[148]] In order to facilitate the transactions in connection with this loan, as well as to promote the commercial relations between Russia and Eastern Asia, the Russo-Chinese Bank was organized late in 1895. In August, 1896,[[149]] the Chinese Government was induced to contribute 5,000,000 taels toward the capital of the Bank, which seem to have been paid out of the new loan.[[150]] Later in the same year, Prince Ukhtomsky, president of the Bank, who had come to Peking with an immense number of costly presents to be distributed among the members of the Court, succeeded in securing the consent of the Chinese Government to the Statutes of the Bank, which were subsequently published on December 8.[[151]] The privileges of the institution as enumerated in these Statutes included the receiving of tax returns, management of local finances, coining, payment of the interests of the public bonds, and construction of railways and telegraph lines in China, in so far as concessions should be made by her Government to the Bank. The latter now has more than thirty branches and agencies in East Asia, and this professedly private corporation has since proved to be a great instrument through which the Russian Government has obtained from China enormous concessions in Manchuria.

Before we examine the nature of these concessions, it is important to observe what took place between Russia and China through the official channels. On March 27, 1896, the Eastern world was startled to see the publication in the North China Daily News of a treaty of defensive alliance concluded earlier in the same year between Russia and China. The Japanese Government had already, on March 16, been assured by the Foreign Office at St. Petersburg that the treaty did not exist.[[152]] It is not clear whether the denial referred to the particular treaty in question or to any treaty of alliance whatsoever. However that may be, the reported agreement[[153]] was of the most serious character, as will be gathered from the following abstract. In recognition of the service rendered by Russia regarding the matter of the Liao-tung Peninsula and of the loan, the Chinese Emperor desired to conclude with Russia a treaty of alliance; and, consequently, it was agreed, in secrecy, that, if Russia should come in conflict with other Asiatic Powers, she should be allowed to make free use of any port or harbor on the Chinese coast, and, in case of urgent need, levy troops from among the Chinese people. If a protest should be made by other Powers, China should answer that she was powerless to resist Russian demands. If she should desire even to render active assistance to Russia against the common enemy, she might do so, but this point required further discussion. In view of the great disadvantages of the ice-bound naval harbors of Russia, China agreed to allow her in time of peace a free use of Port Arthur, or, if the other Powers should object, of Kiao-chau. If the latter should be found inadequate, Russia might choose any harbor on the coast of Kiang-su and Che-kiang. If, on the other hand, China should be at war with another Power, Russia should endeavor to effect a compromise between the belligerents, and, if the effort should fail, it should be the duty of Russia openly to assist China and thereby strengthen the alliance between the two Powers. In regard to Manchuria, Russian military officers should be free to travel along the eastern frontiers of the Sheng-king and Kirin Provinces and to navigate the Yalu and other rivers, the object being either to further trade or to patrol the frontiers. When the Siberian Railway was completed, a branch line might be constructed under the joint control of China and Russia, passing through the Provinces of Heilung and Kirin, and reaching Talien or some other place selected by Russia. In order to protect this line, Russia might possess near Talien-wan an island and the opposite shore, fortify them, and station there her squadron and military forces. If a war should arise between Russia and Japan concerning Korea, China should allow Russia to send her troops toward the Yalu, so as to enable them to attack the western boundary of Korea.