It was apparent that these men entertained high hopes of American activity in China, and that they were ready to do their part in making the conditions favourable. Their minds were alive with plans of development. Both because of American experience with similar problems and of the American spirit of fairness, they believed that great benefit would result if Americans were to become prominently active in the vast industrial transformation which they anticipated in the immediate future.

As this conversation passed from topic to topic, touching on proposals of moment, I could not but feel that a new spirit had surely arisen in China. It would have been inconceivable under the old régime for high officials, trained in the traditional formalism and reticent with inherited distrust of the foreigner, to approach a foreign representative thus frankly, laying before him concrete proposals for joint action. In the past, as we know, it was the foreigners who had desired changes and new enterprises and who had in and out of season pressed them upon the reluctant and inert Chinese officials. But here were men who realized that it is the function of the Government to plan and to initiate; and they were ready to go to any length in making advances to a country in whose motives they had full confidence.

It was impossible not to be fascinated by the prospects that were here unfolded. A country of vast resources in natural wealth, labour, power, and even in capital, was turning toward a new form of organization in which all these forces were to be made to work in larger units, over greater areas and with more intensive methods than ever before. The merely local point of view was giving way to the national outlook. National resources and industries were looked at not from the point of view alone of any local group interested but of the unity of national life and effort. To know that in this great task of reorganization, Americans would be most welcome as associates and directors; that they were spontaneously and sincerely desired in order that all these materials and resources might the more readily be built into a great and effective unity of national life—that, indeed, could not fail to be a cause for pride and gratification to an American. The only disturbing thought was the question whether Americans were ready to appreciate the importance of the opportunity here offered. Yet there could be no doubt that every energy must be applied in order to make them realize the unprecedented nature of the opportunities and the importance to America herself of the manner in which these materials were to be organized so as to promote general human welfare rather than selfish exploitation and political ambition.

The Russian efforts to strengthen their position in Mongolia, to which these two visitors had alluded, had at this time brought fruit in the form of an agreement with China to have the "autonomy" of Mongolia recognized. A result and byplay of these negotiations came to the notice of the foreign representatives in Peking at a meeting of the diplomatic corps on December 11th. The meeting was at the British Legation, to which Sir John Jordan had by this time returned.

The head of the large establishment of the Russian Legation was a young man, Mr. Krupenski. Trained under some of the ablest diplomats of Russia and having spent many years in Peking as secretary, he had manifestly not been selected by chance. With his English secretary he occupied his vast house alone, being unmarried. He entertained brilliantly, ably seconded therein by the Russo-Asiatic Bank across the way. Besides his thorough understanding of the Chinese, Mr. Krupenski had a valuable quality in his ability to shed all the odium that might attach to the policy of his government, as a duck sheds water. He appeared at times greatly to enjoy mystifying his colleagues, to judge by his amused and unconcerned expression when he knew they were guessing as to what his last move might mean. Mr. Krupenski is tall, florid, unmistakably Russian. During my first visit with him he plunged in medias res concerning China. Though he probably wondered what move I might contemplate after the Manchurian proposals of Mr. Knox and America's withdrawal from the Six-Power Group, he gave no hint of his feelings, which undoubtedly did not contemplate me as likely to become an intimate associate in policies. When I left him I knew that here was a man, surrounded by competent experts in finance, language, and law, who could play with the intricacies of Chinese affairs and take advantage of opportunities and situations of which others would not even have an inkling.

At the meeting of December 11th the Russian minister stated that he desired to make an announcement, and proceeded to tell his colleagues quite blandly that his government had decided to withdraw the legation guards and other Russian troops from north China, and that they suggested to the other governments to take similar action.

This announcement caused surprise all around the table. Questions came from all directions: "Is this action to be immediate?" "What is the purpose of your government?" "What substitute for this protection do you suggest?" These and many more. The Russian minister seemed amused by the excitement he had caused. He allowed none of the questioners to worry him in the least, or to draw him out. With a quizzical and non-committal smile he let the anxious surmises of his colleagues run off his back. He shrugged his shoulders and said: "These are the instructions of my government. Their purpose—I do not know." When the meeting adjourned, small groups walked off in different directions, all still intently discussing the meaning of this move. So, the legation guards were really very important! The first question put to me in Shanghai had related to them, and here I found the diplomatic corps thrown into excitement by the announcement that Russia was withdrawing her guard.

When I arrived at the Legation, where Mrs. Reinsch was receiving and where visitors in large numbers were taking tea and dancing to the music of the marine band, the news had evidently already preceded me, for several people asked me what had happened; and Putnam Weale and W.C. Donald, the British press representatives, were full of surmises. The interpretation generally accepted was that the Russians, and possibly the Japanese, were trying to put the other powers in a hole; if they did not withdraw their legation guards they might displease the Chinese Government, after what Russia had done; if they did withdraw them, they would give an advantage to Russia and Japan, powers who, on account of their proximity to China, could send large bodies of troops upon short notice.

From the attitude of the diplomats it had been apparent that the proposal of the Russians would not prove acceptable. For weeks the press was filled with attempts to gauge the true bearing of the Russian proposal. Looked at from this distance after the Great War, it is hard to imagine how so relatively unimportant a matter could cause excitement. Of course, the removal of the legation guard was not considered so important in itself, but it was of moment as an indication of what Russia might plan with respect to the further advance of her influence in China.

Probably Russia's action did not really contemplate any far-reaching consequences. The Russians were urging the Chinese Government to make an arrangement for Mongolian "autonomy," which could not but be intensely distasteful to the Chinese. The Russians had to offer something in return; with thorough knowledge of the old type of the Chinese official mind, they selected something which would not cost them anything, but which would be most gratifying to the Chinese Government. The Government looked upon the presence of foreign troops in Peking and in Chihli Province as incompatible with its dignity. Therefore, the Russian Government knew that through withdrawing its troops and calling upon the other governments to do likewise, an opportunity would be given the Chinese Government to claim an important victory, and the bitterness of renunciation with respect to Mongolia would thus be somewhat tempered. Yuan Shih-kai and the Government as such would probably take that view; but the Chinese as individuals were not likely thus to consider the presence of foreign troops an unmixed evil. These guards tended to stabilize the situation, also to prevent unconscionable acts or high-handed inroads by any individual powers. So far as the people of China were concerned, Russia might not gather much credit through this move.