An American Diplomat in China

by Paul S. Reinsch

The name of Yuan Shih-kai, however, was retained as a symbol of authority, for all the military leaders owed him allegiance. Mr. Liang Shih-yi, as president of the Bank of Communications, still controlled the finances, and his associate, Mr. Chow Tsu-chi, was placed in charge of the Bank of China.

The Government was driven to such extremes by its financial needs that in May the cabinet declared a moratorium suspending specie payments on notes of the government banks. The term "moratorium," which had just then come into prominence in Europe, was greeted by the Chinese financiers as the password to save them—a respectable name for what was otherwise not so honourable. Through this step, whatever confidence still remained in Yuan Shih-kai was dissipated. Because of the complex nature of Chinese affairs peculiar consequences followed. Thus, the postal administration offices and those of certain railways independently announced that they would not accept notes but would demand payment in silver.

All reports of local troubles coming from reliable sources in various parts of China spoke of the participation of Japanese in revolutionary activities. Specific reports from Shantung indicated that the revolutionaries there were favoured by the Japanese. At Tsingtau bandits had come over from Manchuria and were openly drilling early in May under the noses of the Japanese military. About a thousand of these rebels left Tsingtau on May 4th over the Shantung railway, carrying machine guns to the centre of the province, where they took part in the disturbances. Meanwhile, the same railway, under Japanese control, had refused to carry Chinese government troops on the ground that neutrality must be maintained. When questioned about the rebels transported, the railway officials stated that the rebels must have been in civilian clothes and must have carried their armament as baggage.

It is not clear whether the Japanese were systematically working for the establishment of an independent government in the south, or whether they were merely covertly encouraging opposition to the Central Government, to foment division and unrest. But the plans of Japan for gaining a dominant position in China were certainly favoured by the final breakdown of the authority of Yuan Shih-kai.

Japanese correspondents at this time started the report that Chinese merchants in the Yangtse Valley were so provoked with Americans for making a loan to the Chinese Government—the Lee Higginson loan—that they were planning a boycott against American goods. The Japanese paper, Shun Tim Shih Pao, incidentally drew on its imagination, and published a yarn to the effect that in addition to the $5,000,000 loan already agreed to, the American firm had promised to hand over to the Peking authorities $15,000,000 before the end of July. As a matter of fact, beyond the original payment of $1,000,000, nothing was ever paid over. The Chinese did not take up the suggestion of a boycott; although, had the making of the loan proceeded, such a result might have followed. In Peking, on the other hand, the Japanese tried to impress upon Chinese officials that the non-completion of the Lee Higginson loan offered new proof that Americans could not be relied upon when it came to a showdown.

Throughout this difficult period the European Allied Powers felt that they lacked a free hand, and that any joint action undertaken might easily assume such form as to create a Japanese hegemony. The Japanese at all times urged that as they were on the spot it would be only natural to entrust them with the representation of the interests of the Allies. Many representative Europeans in China plainly intimated to us the hope that the American Government might show a strong interest in Chinese affairs, and might not fail to insist on the maintenance of existing treaty rights and of Chinese sovereignty.

I knew from the Chinese who saw him daily that Yuan Shih-kai suffered under the strain of his troubles and disappointment. As early as March Mr. Liang Tun-yen besought me to visit the President and give him encouragement, as worry and despair were breaking him down. Yuan had lived a sedentary life of intense work and great responsibility. He had developed Bright's disease, but his strong constitution had fought it off. Now when great trouble beset him his strength failed. Mr. Chow Tzu-chi remarked to me: "The President's power of quick decision has left him; he is helpless in the troublesome alternatives that confront him. Formerly it was 'yes' or 'no' in an instant, to my proposals. Now he ruminates, and wavers, and changes a decision many times." Yuan contemplated resignation, and seemed taken with the idea of visiting America. I was sounded as to giving him safe conduct and asylum. The Opposition, it seemed, would make no objection to his leaving the country. He was confined to his room during the latter half of May, but continued to give his personal attention to telegrams and important correspondence. In the first days of June his health seemed to improve. I went with my family to Peitaiho to instal them in their summer residence, and to rest for a few days. I had left a special code with Mr. MacMurray, in which the word Pan stood for Yuan Shih-kai. I was shocked on the afternoon of June 6th to receive the brief telegram: "Pan is dead."

By the night train I returned to the capital. Yuan's sons, the ex-Premier Hsu Shih-chang, and several officials close to the President, were with him when he died. During the night he had made solemn declaration to the ex-Premier that it had not been his wish to become Emperor; he had been deceived into believing that the step was demanded by the public, and was necessary to the country. After saying this he seemed exhausted, and continued to sink until the end came. He had weakened himself and further aggravated his illness by indiscriminately taking medicine prescribed by a foreign physician together with all sorts of Chinese remedies which his women urged upon him.

The ministers of the Allied Powers at once called on General Tuan to inquire whether the Government was prepared to prevent disorders. Some time previously the Japanese minister had asked me whether I would consider it suitable for the diplomatic corps, in the event of danger of disturbances, to make such an inquiry. I felt it unnecessary and undesirable, as it might cause apprehension among the public.

The German and Austrian commandants were included in the conference to agree on measures of protection—probably the only instance during the war where the belligerents of both sides met to consider common action. Subsequently the Belgian minister requested the American Legation to take over the patrol of the city wall immediately back of the Belgian Legation, which had thus far had German sentinels. It illustrates the complexity of all things in China that, as late as 1916, German troops were concerned in the formal protection of the Belgian Legation.