An American Diplomat in China

by Paul S. Reinsch

In Hunan the northern and southern troops were still fighting and inflicting suffering on the people there; General Chang Chin-yao, in particular, an opium-smoking gambler and corrupter, the military governor of Hunan; his troops destroyed certain property belonging to missionaries. American and British residents of Changsha, the capital, petitioned the British and American ministers for protection to foreign life and property. I had learned that the governor put no bridle on his troops. With my British and Japanese colleagues I insisted that commanding officers be held personally and individually responsible for injuries to foreigners. We pointed out that Chang, especially, was under observation. The Minister for Foreign Affairs delivered a warning, and Admiral Knight, whom I had fully advised, ordered a gunboat to Changsha.

Meanwhile, the War Participation Bureau, created to aid the Associated Powers in the Great War, was watched by Japan. Because of it they made their special military convention of which General Tuan had spoken to me, using the revolution in Russia and the rise of Bolshevism as their pretext. The Japanese militarist element in the Government was active and urgent, and General Aoki at Peking and General Tanaka at Tokyo were leaving no stone unturned to aid them. They sought at first a general military alliance. The Chinese would not consider anything so sweeping. Then the unrest in Siberia was made the basis of more limited coöperation. In March a preliminary entente was formed; China and Japan would consider in common the measures to be taken to cope with the Russian situation and to take part in the present war, and the means and conditions of coöperation would be arranged by the military and naval authorities of both countries.

War participation in general was thus put into the purview of mutual agreement between Japan and China. While no general military alliance was concluded, nevertheless the Japanese could now control what was to be done by China in the war. It meant that China would do nothing.

The terms of the military and naval conventions on methods of coöperating, concluded the 16th of May, flexibly permitted Japan in certain circumstances to control Chinese railways and resources. The whole thing was managed secretly. The public became suspicious of the results, since the chief arrangements were made not by the cabinet or the Foreign Office, but by the military and naval representatives. Would China longer freely coöperate with the other Allies? Would she not be under Japan's strict leadership? Was not this the entering wedge for a complete control of Chinese military affairs by Japan? Would not Chinese militarism be strengthened and made obedient to Japanese policy?

Japan's acts in Shantung gave these questions pertinence. There she was expropriating by eminent domain; in Tsingtau the Japanese authorities thus acquired about twelve square miles of land, including the shore of Kiaochow Bay for several miles, which gave control of every land approach and every possible steamship and railway terminal in this port. Plainly, Japan was carrying out a policy of permanent occupation.

While the Chino-Japanese entente was being negotiated, Japanese-controlled papers in China were preaching enmity to the white race. In May a Japanese parliamentary party visited China, making speeches calculated to stir racial feeling. The burden of the appeals was that, after the war, European nations would try to fasten their control more firmly on China, hence the yellow race should now unite in timely opposition.

Mr. Nishihara, close associate of the Japanese Premier, General Terauchi, was unofficially doing the financial business of Japan in China. The Japanese Legation could deny that negotiations were going on, while Japanese interests were actively influencing the financial measures of the Peking Government. A large loan was proposed, to be secured on the tobacco and wine revenues. They were the security for the existing American loan, with option for further advances. I asked Tsao Ju-lin, Minister of Finance, about this and his answer was: "The United States is not giving to China the assistance she gives to her other associates in the war. The American bankers have not completed their contract. It is necessary for China to look elsewhere."

Mr. Tsao said he would at any time consider American proposals and give them as favourable treatment as to any other nation. I asked assurances that before anything further was done on the basis of the tobacco and wine revenues, the American bank have a chance to consider a proposal from the Chinese Government under its option. The minister had denied that the revenues were now in any way involved; but at this request he sidestepped. I made the most of his denial, placing it on record in a note to the Foreign Office. The French minister took action similar to mine. Tsao was not only Minister of Finance; he was concurrently Minister of Communications. Both departments, therefore, were under the thumb of Japan.

I have rather rapidly sketched the state of affairs within China up to July of 1918. I wished a personal discussion of the situation with the officials at Washington—my first since America's entrance into the war. I left Peking for the United States after another long interview with General Tuan, who had become Premier. On June 27th the Premier stated to me his policy and motives with frankness. "If we stop military action," he said, "that would be interpreted as weakness. The south would only make more extravagant demands, and further encroach on northern territory. Force that is adequate—that answers the question. For this we need money. If home revenues are not enough, then we must have foreign loans. That will restore national unity, which, in turn, will make repayment easy. The army will be reformed. The people will get protection, and the country will prosper."

This policy was wise, inevitable, he thought. But it suited a class of inept generals who systematically made war at home, with only moderate risk of actual fighting. Their methods involved money more than bayonets.